DJIBOUTI Language: English Original: French

AFRICAN DEVELOPMENT FUND DJIBOUTI Language: English Original: French

REPUBLIC OF DJIBOUTI

BASIC AND SECONDARY EDUCATION STRENGTHENING PROJECT (EDUCATION PROJECT III)

EVALUATION REPORT

SOCIAL DEVELOPMENT DEPARTMENT ONSD NORTH, EAST AND SOUTH REGION May 2004

TABLE OF CONTENTS Page

SOCIO-ECONOMIC INDICATORS, PROJECT BRIEF, CURRENCY AND MEASURES, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS, EXECUTIVE SUMMARY, LOGICAL FRAMEWORK OF PROJECT…….………………………………………….. .i-x

1. ORIGIN AND HISTORY OF PROJECT...... 1

2. THE EDUCATION SECTOR ...... 2

2.1 The Education System ...... 2 2.2 Institutional Framework of the Sector ...... 4 2.3 Government’s Education and Training Policy...... 5 2.4 Education/Training Financing...... 6 2.5 Interventions of the Sector Donors ...... 6 2.6 Constraints of the Education Sector...... 7

3. PROJECT AREAS...... 8

3.1 Access and Equity in Middle and Secondary Technical schools...... 9 3.2 Relevance and Quality of Teaching...... 10 3.3 Health and HIV/AIDS in the School Environment ...... 11

4. THE PROJECT……...... 12

4.1 Project Design and Formulation ...... 12 4.2 Target Areas and Beneficiaries of the Project ...... 14 4.3 Strategic Context of the Project ...... 14 4.4 Project Objectives...... 15 4.5 Project Description and Implementation...... 15 4.6 Environmental Impact...... 22 4.7 Project cost ...... 23 4.8 Sources of Finance and Expenditure Schedule...... 23

5. PROJECT IMPLEMETATION...... 25

5.1 Project Executing Agency...... 25 5.2 Institutional Arrangements...... 26 5.3 Implementation and Monitoring Plan ...... 27 5.4 Procurement of Works, Goods and Services...... 28 5.5 Disbursements ...... 31 5.6 Accounting and Audit...... 32 5.7 Evaluation and Monitoring ...... 32 5.8 Project Implementation Document ...... 33 5.9 Aid Coordination...... 33

6. RECURRENT EXPENDITURE AND PROJECT SUSTAINABILITY...... 35

6.1 Recurrent Expenditure of the Project...... 35 6.2 Sustainability of the Project ...... 35 6.3 Project Risks and Mitigation Measures ...... 36

7. PROJECT BENEFITS ...... 37

7.1 Economic Benefits of the Project...... 37 7.2 Social Impact Analysis...... 38 7.3 Impact on Gender and Equity ...... 39

8. CONCLUSIONS AND RECOMMENDATIONS ...... 39

8.1 Conclusions ...... 39 8.2 Recommendations and Loan and Grant Conditions ...... 39

ANNEXES

------This report was prepared by Mr. B. Savadogo, Education Expert, ONSD.1 (Head of Mission) and Mr. D. Bronselaer, Architect, ONSD.1 following the evaluation mission they undertook to Djibouti from 26 June to 13 July 2003 followed by an updating mission from 28 March to11 April 2004. For any additional information, please contact the authors or Mrs Alice Hamer, Director ONSD (Extension 2046) and Mr. A. Komenan, Division Manager, ONSD.1 (Extension 2150). ------. i

AFRICAN DEVELOPMENT FUND

01 B.P. 1387 ABIDJAN 01 BP 323 - 1002 TUNIS BELVEDERE TEL. : (225) 20 20 44 44; 20 20 48 48 TEL. : (216) 71 33 35 11 FAX : (225) 20 21 65 45 FAX : (216) 71 35 19 33

PROJECT BRIEF Date: May 2004

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information may be obtained from the Executing Agency of the Borrower.

1. COUNTRY AND PROJECT : The Republic of Djibouti: Basic and Secondary Education Strengthening Project (Education III Project)

2. LOCATION : Throughout the country

3. BORROWER : Republic of Djibouti

4. EXECUTING AGENCY : Education Projects Implementation Unit (BEPE) at the MENESUP Tel.: (253) 35 63 34 Fax: (253) 35 68 19

5. PROJECT DESCRIPTION:

At the sectoral level, the objective of the project is to contribute to increasing access and improving the quality of the education system. The objective of the project is to help increase the intake capacity, improve the equity and the quality of basic and secondary education as well as the delivery of health services in schools.

6. TOTAL PROJECT COST

i) Foreign Exchange : UA 3.23 million ii) Local Currency : UA 2.33 million iii) Total Cost : UA 5.56 million

7. LOANS AND GRANT PROVIDED BY THE BANK GROUP

ADF LOAN : UA 4.63 million GRANT : UA 0.37 million

8. OTHER SOURCES

GOVERNMENT : UA 0.56 million

9. DATE OF APPROVAL OF BANK GROUP LOAN : July 2004

10. PROBABLE START-UP DATE AND WORKS DURATION : January 2005; duration: 5 years

11. PROCUREMENT OF GOODS AND SERVICES:

The procurement of goods, works and services will be conducted in accordance with the ADF Rules of Procedure as follows:

Construction works (UA 2.68 million):

International competitive bidding (ICB).

Goods (UA 1.15 million):

(i) Equipment and furniture, computer equipment: Local competitive bidding (LCB).

(ii) Vehicles, equipment for physical education and science classrooms, library fund and school textbooks: international shopping.

(iii) Office and computer consumables, medical equipment: local shopping.

Services (UA 1.56 million):

(i) Consultancy services for: (a) conducting the architectural studies, technical control and soil studies; (b) specialist services for activities relating to HIV/AIDS in schools and the recruitment of specialists to strengthen the BEPE and (c) the services of an audit firm: Recruitment on the basis of a shortlist.

(ii) Specific training of the MENESUP staff involved in the project will be entrusted to specialised centres and institutes and with which agreements will be signed after approval by the ADF. They will be selected on the basis of terms of reference approved by the ADF beforehand. The sensitisation aspect will be conducted by competent national organisations and programmes – under the coordination of the Executive Secretariat of the Intersectoral Committee for Tuberculosis, Malaria and AIDS Control – and with which agreements will be signed.

iii

Operation (UA 0.17 million):

The goods and services necessary for the operation of the project will be procured through local shopping.

12. CONSULTANCY SERVICES REQUIRED

The services of consultants will be required for the studies and the supervision of construction works, technical control, pedagogical studies of the LIC, the training of teachers as well as management and supervision staff in the education system, support to the activities for improving the delivery of health services to schools and the fight against HIV/AIDS, setting up an accounting assistance system, project monitoring and auditing. iv

CURRENCIES AND MEASURES (April 2004)

CURRENCIES

UA 1 = DJF 263.040 UA 1 = US$ 1.48051 UA 1 = EURO 1.21115

MEASURES

Metric system

FISCAL YEAR

1 January - 31 December

LIST OF TABLES Pages

4.1 Project Cost by Component 24 4.2 Project Cost by Category of Expenditure 25 4.3a Project Cost by Source of Financing 25 4.3b Project Cost by Source of Financing (Grant Resources) 25 4.4 Project Cost by Component and Source of Financing 26 4.5 Project Cost by Category of Expenditure and Source of Financing 26 4.6 Expenditure Schedule by Component 26 4.7 Expenditure Schedule by Category of Expenditure 26 4.8 Expenditure Schedule by Source of Financing 26 5.1 Summary of Estimated Project Implementation Schedule 29 5.2 Provisions for the Procurement of Goods, Works and Services 30

LIST OF ANNEXES

Number of pages

1. Administrative Map of Djibouti 1 2. Summary of Ongoing Bank Group Operations in Djibouti 1 3. Summary of Other Donor Operations in the Education Sector 2 4. Summary of Socio-Environmental Arrangements of the Project 1 5. Organization Chart of the MENESUP 1 6. Estimated Project Implementation Schedule by Component 1 7. List of Goods and Services 1 8. Table of Contents of Project Implementation Documents 1 9. Summary of Project Costs 3 10. Summary of Grant Costs 1 11. Project Appraisal Report Preparation Stages 1 v

LIST OF ABREVIATIONS

AFD - French Development Agency BAC PRO - Professional “A”-Level BAC - “A”-Level BEF - Basic Education Certificate BEP - Vocational Studies Certificate BEPC - End of First Cycle Studies Certificate BEPE - Education Projects Implementation Unit BIEF - Education and Training Engineering Bureau, Belgium (Bureau d’ingénierie en education et en formation, Belgique) BTS - Higher Technicians Certificate CAP - Apprenticeship and Skills Upgrading Certificate CEM - Middle school Education CES - High school CFEB - Basic Education Certificate CFPA - Adult Training Centre CFPEN - Education Staff Training CM - Middle School CNILSPT - National Intersectoral Committee for Tuberculosis, Malaria and AIDS Control CNOSEGE - National Committee for Organisation and Monitoring of the Education Forum CRE - Regional Education Committee CRIPEN - National Education Research, Information and Production Centre CSE - High-level Education Committee DEST - Directorate of Secondary and Technical Education DEUG - Undergraduate Diploma for General University Studies (Diplôme d’études universitaires générales) DJF - Djibouti franc DP - Pedagogical Division (class in a pedagogical sense) CSP - Country Strategy Paper EGE - National Education Forum EPS - Physical Education ETFP - Technical Education and Vocational Training ESAF - Enhanced Structural Adjustment Facility of the IMF GER - Gross Enrolment Rate HDI - Human development index IEMF - Middle and Secondary Education Inspectorate LIC - Industrial and Commercial High School MEFPP - Ministry of Economic Affairs, Finance, Planning and Privatisation MENESUP - Ministry of Education PLS - AIDS Control Programme PRSP - Poverty Reduction Strategy Paper NEAP - National Environmental Action Plan UNDP - United Nations Development Programme PUD - Djibouti University Centre UA - Unit of Account UNESCO - United Nations Education, Scientific and Cultural Organisation UNICEF - United Nations Children’s Fund HIV/AIDS - Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome vi

EXECUTIVE SUMMARY

1. HISTORY OF THE PROJECT

1.1 The economic and financial crisis, which hit Djibouti, has led the Government to adopt, with IMF support, a structural adjustment programme in 1996, which led to cuts in the expenditure on the social sectors, including education. Due to this situation the share of the State budget devoted to education (15.58% excluding external resources in 2003) remains below the needs of the sector. However, the poverty reduction strategy paper, prepared since 2000, has shown the weak human development as a major obstacle to poverty reduction. Judging from this observation and in order to enable the education system to fully play its role in the development of human resources and poverty reduction, the Government has prepared, through a participatory process, a new policy in the area of education and training better suited to the needs and priorities of the country. After the National Education Forum held in December 1999, the shortcomings and the problems of the education system were highlighted and recommendations were made for the reform and rectification of the system.

1.2 A law on the reorientation of the Djibouti education system was promulgated and the Ten-Year Education Mater Plan (2001-2010) as well as an Education Action Plan (2001-2005) were prepared and reviewed during the two Roundtables of technical and financial partners. One of the Roundtables, of an intersectoral character, was held in Kuwait in May 2000. The other, the Sectoral Roundtable on Education, took place in Djibouti from 9 to 11 October 2000. The projects, which were presented at these meetings, resulted in requests being submitted to the technical and financial partners of projects, including the Bank Group, to assist in the implementation of the Action Plan, some aspects of which are already operational.

1.3 This project follows results from the above-mentioned requests and more specifically from an official request for the financing of a new project submitted to the Bank in December 2001 by the Government. The Bank responded favourably to that request by incorporating in its assistance strategy to Djibouti for the period 2002-2004 (CSP 2002-2004), an operation in the education sector. To concretise this support, it proceeded with the identification of this project in February-March 2002, its preparation in April 2003, its appraisal in July 2003 and its updating in April 2004. The project completes the past two operations financed by the Bank Group in the education sector in Djibouti.

2. PURPOSE OF THE BANK GROUP LOAN AND GRANT

The contribution by the Fund of UA 5 million, of which UA 4.63 million as an ADF loan and UA 0.37 million as a grant, will finance all categories of expenditure. However, the grant will finance only the activities in support of the delivery of health services in schools and the fight against HIV/AIDS under component 3 of the project. Government’s contribution is to the tune of UA 0.56 million and will be used to partly finance the «Works» and «Services» categories.

3. PROJECT OBJECTIVE

At the sectoral level, the objective of the project is to enhance access to and the quality of the education system. The overall objective of the project is to help increase the intake capacity, improve the equity and quality of basic and secondary education as well as delivery of health services to schools. vii

4. PROJECT IMPLEMENTATION

The project will be implemented over a period of five years and will centre around the following four components: (i) Increasing access to middle and secondary education; (ii) improving the quality of education; (iii) enhancing the delivery of health services to schools and the fight against HIV/AIDS; and (iv) project management. The project will allow the construction of a new middle school with 1,600 places and the expansion of the Industrial and Commercial High School, which will ensure the enrolment of an additional 3,000 students in middle schools and an additional 1,000 students in technical schools. The quality of education will be enhanced mainly by improving the ratio of middle-school-teacher- supervision by inspectors, which will go from 60 teachers/inspector in 2002 to about 50 teachers/inspector in 2009, through pedagogical training and upgrading of 20 middle school inspectors and 600 teachers and the procurement of teaching materials. The enrolment of girls will be supported by sensitisation actions, by putting at their disposal school textbooks and the training of 500 teachers in gender methods. The project will also finance actions to improve the delivery of health services to schools and the fight against HIV/AIDS in schools.

5. PROJECT COSTS

Total project cost, net of taxes and duties: Total cost : UA 5.56 million Foreign exchange : UA 3.23 million Local currency : UA 2.33 million

6. SOURCES OF FINANCE ADF loan : UA 4.63 million Grant : UA 0.37 million Other sources : *Government : UA 0.56 million

7. PROJECT IMPLEMETATION

The project will be implemented over a period of five years. The implementing agency will be the Education Projects Implementation Unit (BEPE) in the MENESUP. The BEPE will collaborate closely with national services and programmes concerned by the project.

8. CONCLUSIONS ET RECOMMANDATIONS

8.1 The project will contribute to the strengthening of Government actions in the implementation of its education policy in line with the main orientation of the Education Action Plan (2001-2005). It dovetails well with the main axes of the national education policy and will contribute to the realisation of the objectives set out in key orientations of the Education Action Plan, namely: (i) increasing access to middle and high schools; (ii) reducing early dropping out at the primary school level; (iii) reducing gender disparities; and (iv) improving the quality of apprenticeship.

8.2 It is therefore recommended that an ADF loan of UA 4.3 million and a grant of UA 0.37 million be awarded to the Government of the Republic of Djibouti for the purpose of implementing the project as described in this appraisal report. viii ix

DJIBOUTI: STRENGTHENING BASIC AND SECONDARY EDUCATION PROJECT (EDUCATION PROJECT III) LOGICAL FRAMEWORK OF THE PROJECT (FINANCING OF THE LOAN)

HIERARCHY OF OBJECTIVES OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION ASSUMPTIONS/RISKS

SECTORAL OBJECTIVE

1. Contribute to increasing access and 1.1 In 2009, basic education is accessible to the majority of 1.1.1 Statistics of the MENESUP improving the quality of the education children from 6 to 16 years. system. 1.2 From 2003 to 2009, the admission rate at Common Entrance goes up from 43.7% to more than 50%. PROJECT OBJECTIVES

Contribute to increase intake capacity, 1. The intake capacity of middle and secondary education are improve equity and the quality of basic and increased: secondary education as well school health. 1.1 The number of pupils in general middle education increases 1.1.1Report of BEPE and the ADF 1.1.1.1 The Education and Training Policy has from 16595 in 2003 to 25,000 in 2009. supervision missions been maintained and implemented. 1.2 The proportion of girls in middle school increases from 39.4% 1.2.1 1Report of BEPE and the ADF 1.1.1.2 The country is stable on the education in 2003 to about 45% in 2009. supervision missions front. 1.3 The pass rate from primary to middle school increases from 1.3.11Report of BEPE and the ADF 1.2.1.1 IDEM 49% in 2002 to 65% in 2009 supervision missions 1.3.1.1IDEM

2. The quality of middle school is enhanced.

2.1 The class repeat rate in Grade 6 is reduced from 33.1% in 2002 2.1.1 Reports of the MENESUP 2.1.1.1 The development partners support to less than 15% in 2009. Planning Service. implementation of the Government’s 2.2 The dropout rate of girls during the first three years of middle 2.2.1 Reports of the MENESUP education programme. school drops from 2.9% in 2002 to 1% in 2009. Planning Service 2.2.1.1 The country is stable on the education front. 3. Health in schools is improved and an effective strategy of HIV/AIDS control in schools is developed.

3.1 The health of pupils improves and the case of absenteeism due to 3.1.1 Reports of the Ministry of Health. 3.1.1.1 The Education and Training Policy has illness are reduced by about 10%. been maintained and implemented 3.2 From 2003 to 2009, the HIV/AIDS prevalence rate in schools is 3.2.1 Reports of the Ministry of Health. 3.2.1.1 The development partners support reduced by 50%. implementation of the Government’s education programme.

RESULTS HIÉRARCHY OF OBJECTIVES OBJECTIVELY VÉRIFIABLE INDICATORS MEANS OF VÉRIFICATION ASSUMPTION/RISKS 1. The middle school is built and operational, the 1.1. A middle school with 1,600 places built in Balbala and 1.1.1. Commissioning report and BEPE 1.1.1.1 The country is stable on the education LIC is expanded; the furniture and pedagogic equipped and the LIC is expanded and equipped. and MINESUP reports front. materials for the new middle school and the LIC 2.1. About 3,000 additional pupils are registered in the middle 2.1.1 Commissioning report and reports are procured. school and 1,000 additional pupils in the ETFP. of the BEPE. Reports and statistics of 2.1.1.1. The teachers required have been MENESUP. recruited and deployed. 2. The parents and the school population are 2.1 The proportion of girls in middle schools increases from 2.1.1 MENESUP Statistics, BEPE 2.1.1.1. The teachers required have been sensitised on the education of girls; school 39.4% in 2003 to about 45% in 2009. reports recruited and deployed. textbooks for girls are procured and the school health improvement and HIV/AIDS control 2.2 The rate of drop-out of young girls in the first 3 years of activities (radio and TV programmes, reports, middle school education drops from 2.9% in 2002 to 1% in 2009 2.2.1 Idem 2.2.1.1 Idem didactic support) are financed and implemented. 2.3 Teachers are trained on gender approach. 2.3.1 Idem 2.3.1.1 Idem

2.4 The HIV/AIDS aspect of the curriculum is developed; 2 2.4.1 Reports from Ministry of health; 2.4.1.1 The government and development officers of the school health service, head teachers, of the CNILSPT and School Medical partners have the will and the capacity to representatives of the parents’ association and 2,600 teachers are Care Office allocate necessary resources to the financing trained on the use of this curriculum; sensitisation campaign are of activities for improving school health and conducted. fighting HIV/AIDS

3. The staff of the CRIPEN in charge of 3.1 The supervision rate of middle school teachers by inspectors 3.1.1 Statistics from MENESUP and 3.1.1.1. Education and training policy is developing the curriculum is trained; training is improved and increases from 60 teachers/Inspector in 2002 to IEMG; BEPE reports maintained. modules for middle school teachers are prepared; about 50 teachers/Inspector in 2009. middle school inspectors are upgraded. 3.2 From 2003 to 2009, 20 middle-school Inspectors and 500 teachers are upgraded each year; 20 teachers of the ETFP are trained. ACTIVITIES Contracts agreed with consultants, suppliers and companies and 1.1.1 Disbursement status . 1.1.1.1 The country is not under sanction and 1. Undertake architectural and technical approved by the Bank. The commissioning report prepared to the the counterpart resources are available. studies. satisfaction of the Borrower and the Bank. 2. Recruit technical assistance. 3. Develop the infrastructure. Budgetary resources (in UA million) 4. Procure furniture and equipment. 5. Ensure the coordination of interventions. TAC. ADF GRANT Govt Total 6. Ensure training and sensitisation campaigns 7. Ensure project management. A. Goods 1.13 0.02 0.00 1.15 B. Works 2.15 0.00 0.54 2.68 C. Services 1.19 0.35 0.02 1.56 D. Operation 0.17 0.00 0.00 0.17 Total 4.63 0.37 0.56 5.56

DJIBOUTI: STRENGTHENING BASIC AND SECONDARY EDUCATION PROJECT (EDUCATION PROJECT III) LOGICAL FRAMEWORK OF THE PROJECT (FINANCING OF THE LOAN) ACTIVITY OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION HYPOTHESIS

Specific Objective From 2003 to 2009, the health of pupils has improved and cases of absenteeism due to illness Reports of the Ministry of Health The Government and the Contribute to the improvement of basic are reduced by about 10%. development partners have education through the improvement of school the will and the capacity to health and the development of an effective From 2003 to 2009, the rate of HIV/AIDS prevalence in schools is reduced by about 10%.. Reports of the Ministry of Health allocate necessary resources HIV/AIDS control strategy in schools. for financing activities to improve school health and Output the fight against HIV/AIDS 1. The health of pupils is enhanced. 1.1.1 The report of the study on the school health situation is available and the strategy to improve Reports of the Ministry of Health and 1.1 A strategy for the development of school school health and hygiene is prepared by December 2005. BEPE medical care and hygiene is prepared. 1.1.2 From 2004 to 2009, heads basic education institutions; representatives of parents’ Reports of MENESUP and BEPE 1.2 The capacity of the School Medical Care associations informed and trained on their roles in the framework of the new strategy. Office is reinforced. 1.2.1 The School Medical Care Office is equipped and is operational in 2004 and 2 officials of 1.3 Hygiene measures are strengthened in this Office are trained in the area of management of school health. Project supervision reports by the Bank schools. 1.3.1 Pilot actions in school health and hygiene are initiated in all schools. Reports of consultants and BEPE

2. Actions are taken to fight against 1.3.2 A complete intervention arrangement (programme, guide, image box, training plan) is Reports of the Ministry of Health, HIV/AIDS in schools. available by December 2005 and accepted by the Ministry and its partners. BMS and BEPE

2.1 A national intervention strategy in the area of HIV/AIDS in schools is prepared

2.1.1 The study on the HIV/AIDS situation in schools is undertaken and the national intervention Reports of the Ministry of Health, BMS 2.2 The issue of HIV/AIDS is developed in the strategy in the area of in schools is prepared, tested and validated by the Ministry and its partners curriculum and knowledge about HIV/AIDS in and BEPE in 2005. schools in greater. Reports of the Ministry of Health, 2.2.1 In 2005, the HIV/AIDS aspect of the curriculum is developed; and 2,600 teachers have been CNILSPT, BMS and BEPE sensitised, informed and trained in the use the curriculum on HIV/AIDS.

Idem 2.2.2 The high schools, middle and primary schools with Primary 6 classes are involved in the realisation of activities to fight against HIV/AIDS.

Reports of the Ministry of Health, BMS, 2.3 Information and sensitisation campaigns are 2.2.3 Actions of a social nature meant for pupils orphaned by AIDS and for infected teachers are undertaken on School health and HIV/AIDS BEPE and inspectors carried out in middle schools with support of PLS. Idem 2.3.1 From 2005, teaching aids are prepared and disseminated (an image box and a brochure) in all primary, middle and secondary schools. Idem 2.3.2 From 2004 to 2008, 16 radio programmes in 4 languages and 16 sub-titled television reports or dubbed on HIV/AIDS, are prepared and broadcast 1

1. ORIGIN AND HISTORY OF THE PROJECT

1.1 Situated in the Horn of Africa, the Republic of Djibouti whose map is shown in Annex 1, has a population of about 700,000 inhabitants (2003 estimates) over a surface area of 23,200 km². The demographic growth rate is 3%. The population is relatively young (about 51% is below 20 years old) and varies with the seasons and migration flows from neighbouring countries. Nearly 85% of the population lives in the urban area (average in Africa is 37%). The population of the district of Djibouti is estimated at nearly 70% of the total population. With a per capita GDP estimated at about US$ 800, the country was ranked 153rd over 175 by the United Nations in 2003 according to the Human Development Index (HDI). It is estimated that 10% of sedentary families live below the extreme poverty threshold (US$ 566 per adult per annum) and 45% of the sedentary population live in relative poverty, the threshold of which is set at US$ 1,223.

1.2 The deterioration of the country’s economic and financial systems has led the Government to prepare since 1996, with IMF support, a structural adjustment programme which aims at the social and economic restructuring of the country, economic management capacity building, the strengthening of the social base and the national production function. In spite of a less favourable environment, Djibouti has undertaken to restore fiscal discipline, reduce the consolidated deficit of state operations, stop the accumulation of domestic arrears and restore budget equilibrium through a reduction of expenditure and an increase in revenue.

1.3 Expenditure control, within the framework of the austerity measures undertaken by Government, occurred mainly in the social sector. Due to this situation the share of the State budget devoted to education (15.58% excluding external resources in 2003) remains below the needs of the sector. Meanwhile, the contribution of the education system to the country’s development remains insufficient. However, the poverty reduction strategy document, prepared since 2000 has demonstrated the weak human development as a major obstacle to the reduction of poverty. Judging from this observation and in order to enable the education system to fully play its role in the development of human resources and poverty reduction, the Government has prepared, through a participatory process, a new policy in the area of education and training better suited to the needs and priorities of the country.

1.4 Thus, after the holding of the National Education Forum (EGE), which brought together representatives of the parties concerned, an observation of shortcomings and problems of the education system was made and recommendations were formulated with a view to reforming and rehabilitating the system. After the thematic studies carried out to complete the recommendations that came out of the National Education Forum, a law on the reorientation of the Djibouti education system was promulgated and the ten-year Education Master Plan (2001-2010) as well as an Education Action Plan (2001-2005) were prepared and reviewed during the two Roundtables of technical and financial partners. One of them, of an intersectoral nature, was held in Kuwait in May 2000 and the other, which was a sectoral Roundtable on education, took place in Djibouti in October 2000.

1.5 This project originates from the above-mentioned two Roundtables. Indeed, the Government seized the opportunity offered by those Roundtables to present projects to technical and financial partners and to solicit their support in order to implement its Action Plan for the sector. More precisely, an official request for the financing of a new education project was submitted to the Bank in December 2001 par the Djibouti government. The Bank responded favourably to this request by integrating in its assistance strategy to Djibouti for the 2002-2004 2

period (2002-2004 CSP), an operation in the education sector. In order to concretise its support, the Bank proceeded with the identification of this project in February-March 2002, its preparation in April 2003 and its appraisal in July 2003. The project was updated in April 2004 to better take into account recent developments in the education sector since the appraisal mission in July 2003 and the content of the Bank’s CSP for the 2002-2004 period. The project preparation stages are summarised in Annex 11.

1.6 The project completes the past two operations financed by the Bank Group in the education sector: the completed Education Project I; and the Education project II which is nearing completion. The output of these projects and the lessons learnt from their implementation are summed up in paragraph 4.1.3 of this report. The new project will reinforce past gains by increasing the intake capacity of middle schools and secondary technical schools, enhancing the quality of education while contributing to resolving the problems of health and the intensifying the fight against HIV/AIDS in schools. The project is consistent with the Government’s overall sector development programme and is in line with the poverty reduction strategy and the Millennium Development Goals (MDGs). The project also takes into account all the interventions of other donors in the sector. The summary of Bank Group operations in Djibouti is given in Annex 2.

2. THE EDUCATION SECTOR

2.1 The education system

2.1.1 The education system comprises the following levels: (i) 9 years of basic education which groups together nursery, primary and middle school education (general, technical and professional); (ii) 4 years of secondary school education (general and technical) and (iii) higher education. One could add non-formal education to these levels of the formal system.

Basic education

2.1.2 Nursery and Primary Education: A small number of children aged between 3 and 5 years, attend nursery schools, with this level of education still at an embryonic stage, before moving on to primary education. It is essentially offered by the private sector and comprises four schools, all located in Djibouti-city. In 2002/2003, 497 pupils were enumerated in these institutions. With numbers estimated at 46,364 pupils in 2002/2003 of which 39,940 in public schools, primary education receives children from 6 to 11 years and aims specifically at ensuring the acquisition of basic skills such as reading, writing, arithmetic and the capacity to understand and solve every-day problems. It is also conceived to inculcate into the children the notions and concepts relating mainly to the physical, geographical, social and cultural environment, family life, democracy and the culture of peace. It lasts six years and one of the objectives of the current reform is to cut down the duration to five years. The end of the cycle is sanctioned by the award of a Primary School Certificate and the passage to Form 1 for those who pass the Common Entrance Examination. The gross enrolment rate in primary schools went from 38% in 1990/1991 to 43.6% in 2001/2002 and stood at 49.7% in 2003. There are considerable gender and geographic disparities. The parity index between girls and boys based on gross enrolment rate (GER) was 0.75 in 2001/2002. Djibouti-city (including Balbala) recorded a GER of 51.8% in 2001/2002 at the primary school level while in Obock the rate was 20.6 %, in Dikhil, 23.6 % and in Tadjourah, 26.0%.

2.1.3 Middle School Education: In 2003/2004, the general middle school education has 30 middle schools, of which ten public institutions (six in the district of Djibouti and one in each of the four other districts) and 20 private institutions (8 using the French language and 12 the Arabic language). In 2003/2004, these institutions have a total of about 18,180 pupils of which 14,781 in public schools. Admission to Form 1 (first year in middle school) is theoretically reserved for pupils who have completed their primary school education and who have passed the Common Entrance Examinations. Up to the 1999 exams, the success rate at the Common Entrance Examination was kept at a low level due to the limited intake capacity of middle schools. The proportion of girls at this level of education has increased very slightly over the past six years and it stood at about 39.40% only in 2002/2003. The gross enrolment rate in middle schools was 23.9% in 2001/2002 with strong disparities (29.8% in Djibouti as against 10.4% in Obock and 12.4 % in Tadjoura for instance). In addition to general education, middle school education is the subject of a reform aimed at developing a professional course, which will be delivered by apprenticeship centres. Vocational training and domestic science, which is mainly meant for girls, had a student population of 1,310 pupils in 2003/2004 (353 boys and 957 girls).

Secondary School Education (General and Technical)

2.1.4 General Secondary Education: at present, this level of education has five high public schools in Djibouti, Balbala, Ali Sabieh, Dikhil and Tadjourah. Moreover, there were 10 private high schools in 2003/2004, two using the French language and 8 using the Arabic language. These institutions enrolled 6,033 pupils in 2003/2004, of which 4,463 pupils are in public schools. From 1990/1991 to 2001/2002, the number of pupils in general secondary education (public and private) has recorded an average annual growth of 15.5%. The proportion of girls in this student population stands at around 38.50%. The pupils in French language high school sit French Advanced Level examinations.

2.1.5 Technical Education and Vocational Training: the network which, in 2003/2004, received about 1,458 pupils comprises five public institutions belonging to the Ministry of Education: an Industrial and Commercial High School (LIC) and a Domestic Science and Vocational Training centre in Djibouti-city, two professional high schools (LEP) in the Ali Sabieh and Tadjourah districts and an apprenticeship centre at Ali Sabieh. It also comprises two institutions under the aegis of the Ministry of Employment and National Solidarity, two adult training centres (CFPA), one of which is in Djibouti and the other at Tadjourah, and eight private Domestic Science and Vocational Training centres of lesser importance. The proportion of girls is 42% in the commercial section but 0% in the industrial section.

Higher Education

2.1.6 Higher education in Djibouti is on a high growth path. This sub-sector covers, on the one hand, short courses introduced since 1990 and including a higher technicians section, which prepares for the Higher Technicians Certificate (BTS) meant to supply manpower to the Djibouti enterprises and, on the other hand, a long-term course delivered by the Djibouti University Centre (PUD), which was opened for the 2000 school year. In 2001/2002, there were 343 students, 49.6 % of whom were girls, registered in the BTS courses and 385 students, 34.5 % of which were girls, in the two-year study programme leading to the DEUG. The seven DEUG courses offered enjoy the support of French universities (Grenoble, Dijon, Besançon and Nancy). Moreover, a significant number of students were continuing their education overseas and most of them were scholarship holders (859 in 2000/2001). 4

Non-formal education

2.1.7 Literacy activities are undertaken by the MENESUP and NGOs. Literacy classes are conducted in French and Arabic and to a lesser extent, in local languages (mainly Afar and Somali). They are conducted is borrowed premises such as social centres, primary schools and association headquarters. Despite the efforts deployed, literacy is confronted with many major problems among which one could mention the lack of own resources and the dispersal of actions and literacy personnel in several ministries, NGOs and associations, which leads to the lack of cohesion in the management of operations and reduces their impact. There is also the discontinuity of literacy campaigns, which plays negatively on the output of learners. To illustrate, the campaigns were interrupted between 1994 and 1997. In addition to literacy actions, there are other non-formal education activities such as night classes in French or in Arabic, which are conducted in the town neighbourhoods without any control by the public education services.

2.2 The Institutional Framework of the Sector

2.2.1 Within the context of implementation of the Framework Legislation on the Education System, the ministerial structures were redefined by an Act on the Organisation of the Ministry of Education (MENESUP), which was promulgated in 2001. The main structures of the MENESUP (see organization chart in Annex 5) are the following: (i) the Office of the Minister, which includes, in particular, the Higher Education Committee (CSE), a regulatory organ established by the Framework Legislation on the Education System to harmonise policy choices in the area of education and training in the drive to adapt them to changes affecting the education system; (ii) the General Secretariat, which monitors and coordinates the whole of the Ministry’s activities and includes the two general directorates mentioned below and offices directly attached to it; (iii) the General Directorate for pedagogy which supervises the directorates and departments of a pedagogical nature; and (iv) the General Directorate of Central Administration, which manages the administrative directorates and departments. The Education Projects Implementation Unit (BEPE) is attached to the Department of Maintenance and Project Management, which is under the General Directorate of Central Administration. In an effort at decentralization, the MENESUP has set up four regional education offices at Ali Sabieh, Dikhl, Tadjoura and Obock.

2.2.2 The Government has set up the Higher Education Committee (CSE) whose functions are as follows: (i) ensure the gradual implementation of the reform of the education system defined in the framework legislation of August 2000 and resulting from the recommendations of the National Education Forum of December 1999; (ii) to steer the Education Master Plan and the Education Action Plans; (iii) make proposals for the annual adjustment of the education Action Plans; (iv) institute studies or set up working groups on topics dealing with the reform and enhancement of the education system; (v) conduct sensitisation campaigns among technical and financial partners in order to put together the material and human resources necessary for the realisation of the projects and programmes contained in the Action Plans; and (vi) carry out sensitisation actions aimed at major stakeholder and beneficiaries of the reform. This Committee, chaired by an Executive Secretary, has many members coming from the eleven ministries, the technical departments of the MENESUP and social partners (parents, the private sector and teachers’ unions). It meets at least two times a year. The activities of the Higher Education Committee are coordinated by its Executive Secretary who is assisted in his/her functions by the Projects Technical Steering Committee. 5

2.2.3 The setting up of these structures aims at rectifying the shortcomings and weaknesses of the institutional framework. In fact, an institutional and organisational audit of the Ministry of Education, conducted in 2000, has shown that the administrative structure of this Ministry was inadequate and antiquated, marked by the absence of a development policy and the assignment of responsibilities to human resources. Moreover, the over-centralised and one-way management style (from the top to the bottom only) contributes little to the development of initiative and the enhancement of skills. Other weaknesses are: (i) the dispersal of skills and authority and the absence of coordination; (ii) weakness of the planning, steering, analysing, monitoring and evaluation functions of the education system; (iii) the absence of effective human resource management mechanisms and tools; (iv) the numerical inadequacy of conceptualisation frameworks and the weakness of the skills of administrative staff; (v) the mismatch between the means put at the disposal of the structures and the functions assigned to them; (vi) the absence of adequate communication mechanisms at the Ministry or between the latter and the decentralized structures.

2.2.4 The weaknesses identified in the institutional capacities to conduct the reforms envisaged and the projects retained, with maximum chances of success, will be corrected by measures already taken and by: (i) a greater decentralisation of decision making; (ii) improvement of the organisation, planning, management and evaluation capacities of the education system; and (iii) the strengthening of MENESUP’s personnel management and supervision functions, particularly through the training of pedagogic supervision staff such as heads of schools, pedagogic counsellors and inspectors.

2.3 Government’s Education and Training Policy

2.3.1 The right to education was reaffirmed by the Framework Legislation on the Education System, which states that education is the right of every Djibouti male or female without distinction of age, sex, social origin, ethnic background or religion. The State guarantees the education of children between the ages of 6 and 16 years. The education system reform should, in addition, also guarantee to all children equal access to quality education, develop teaching and professional training in relation to the socio-economic environment of the country and to combat illiteracy by removing socio-economic and cultural impediments, especially for the women.

2.3.2 The Ten-Year Education Master Plan (2001-2010) and the Education Action Plan (2001-2005) seek to translate into actions Government policy for the sector. The two documents are based on four strategic axes, whose objectives are to improve access and equity, quality, the institutional and management capacity to effectively carry out the reforms, as well as diversification and rationalisation of resource allocation. The strategy to improve access and equity envisages setting up a nine-year compulsory and free basic education, with the elimination of the Common Entrance Examination in the long run, the strengthening of the ETFP by creating a professional course of four years in middle school education and the development of the ETFP in each district. In addition, the controlled development of general secondary education through the creation of many high schools in Djibouti and in the districts, as well as maintaining the quality of the baccalaureate, also constitute challenges for quality education. The establishment of a University of international standing, the use of new information and communication technology, and the creation of scientific, technical and cultural research centres, contribute to the completion of the new system. The socio-economic and gender disparities will be reduced by taking into account the education needs and the intake capacity of the various school zones and by encouraging the enrolment of children, especially girls, from disadvantaged areas. 6

2.4 Education/Training Financing

2.4.1 Education is financed mainly by the State, with contributions from parents and donors. Parents contribute to the financing of education through their associations and individually. Their contribution bears mainly on the purchase of school materials. It also concerns school fees in private schools. The State pays the salaries of teachers. From 2000 to 2004, the contribution of the State to the financing of education has recorded positive growth, as shown in the tables below:

Trend of the State’s Education Budget, Net of External Resources (in million DJF)

YEAR 2000 2001 2002 2003 2004 EPENDITURE Education operating costs 5,106,028 5,158,782 5,309,428 5,908,805 6,963,820 Investment in education 115,000 140,000 160,000 509,200 664,951 Total Education 5,221,028 5,298,782 5,469,428 6,418,005 7,628,771 % National Budget 14.56% 14.10% 13.83% 15.58% 17.65% Source : MEFPP, Directorate of the Budget, April 2004

Trend of the State’s Education Budget, including External Resources (in million DJF)

YEAR 2000 2001 2002 2003 2004 EPENDITURE Education operating costs 7,366,028 7,503,782 7,674,428 8,623,005 9,892,771 Investment in education 1,360,000 1,303,000 1,187,000 1,144,000 2,232,000 Total, Education 8,726,028 8,806,782 8,861,428 9,767,005 12,124,771 % National Budget 24.33% 23.44% 22.40% 23.71% 28.05% Source : MEFPP, Directorate of the Budget, April 2004

2.4.2 The share of salaries in the Education budget still remains high (over 88% for basic and secondary education). In order to attain the MDGs, the Government has committed itself to increase the share of the national budget allocated to the social sectors, including education, while enhancing the effectiveness and efficiency of the use of resources. The 2001-2005 Action Plan envisages 65 projects with a total capital budget of DJF 22 billion and operating costs of DJF 6 billion.

2.5 Interventions of the Sector Donors

2.5.1 The current interventions of Djibouti’s financial and technical partners in the area of education centre on the 2001-2005 Action Plan and refer to project modules presented, with a view to its implementation, to the sectoral Roundtable held in Djibouti in October 2000. At the bilateral level, the country’s main partner is France, which supports several operations and provides considerable technical assistance. On its part, the French Development Agency finances through a Euro 2.7 million grant, the construction and equipment of classrooms in the districts of Obock and Tadjourah. The same goes for the Government of Japan, which has allocated a grant of US$ 17 million to finance, among other activities, the construction of 2 middle schools and 8 primary schools. The Saudi Development Fund has approved a loan of USD 7 millions for the construction and equipment of classrooms. The USAID also provides US$ 10 million to support the development of basic education. 7

2.5.2 At the level of multilateral support, in the framework of the first tranche of an evolving programme loan (EPL) over ten years, the International Development Association (IDA) of the World Bank Group has granted a loan of US$ 10 million to finance a Schools Improving and Access Programme, whose implementation started in May 2001. In June 2001, the Arab Fund for Socio-economic Development signed a loan agreement for an amount US$ 13 million to finance the construction and equipment of classrooms and support Arabic education. In January 2002, the Islamic Development Bank evaluated a project which finances, through a US$ 4.75 million loan, the construction and equipment of classrooms. A summary of partner interventions is given in Annex 3.

2.5.3 The thrust of donor financial support is earmarked for primary education, the second cycle of basic education having received less assistance. Some donors direct their interventions to certain specific groups. By way of example, this is the case for UNICEF and the World Food Programme (WFP), which give priority to infants and nutrition problems. The WFP finances a major programme for food distribution to girls from poor families, especially in rural areas, which contributes to their enrolment and retention in school. Increasingly, all the interventions take into account the fight against HIV/AIDS. This project was designed in a manner as to complete the totality of the on-going operations in the sector.

2.6 Constraints of the Education Sector

Summary of Major Constraints

2.6.1 Among the major constraints of the education sector, it is imperative to confront three major ones of the Djibouti education system, which considerably impede the development of this system and make improbable the attainment of the millennium development goals for the education sector. This are: (i) difficulties of access to education, particularly to middle and secondary education, due to several factors such as the high growth rate of the population of school-going age, linked to the overall growth and the young population, budgetary constraints and the ineffective utilisation of resources allocated to the education sector; (ii) the poor quality of education linked to the inadequacy of supervision capabilities and qualification of teachers; and (iii) the precarious health situation in schools which has repercussions on the rate of absenteeism and the learning conditions. Given their importance, these constraints are analysed thoroughly in chapter 3 of this report. In addition to these major constraints, one should also mention the situation of teachers and the specific constraints relating to the situation of girls. The actions envisaged within the framework of the envisaged project, seek to partly eliminate theses constraints.

Constraints Relating to Reform and the Situation of Teachers

2.6.2 Concerning basic education, the constraints are made more evident by the current reform process and the situation of teachers. The CRIPEN is charged with the testing of a new curriculum for basic education, with the support of the BIEF, within the framework of the intervention of the World Bank. This reform also enjoys support from French Cooperation, through technical assistance in the area of preparation of textbooks, and from UNICEF for part of the textbooks printing activities. This is to: (i) prepare, test and validate the new programmes and teaching aids of the basic education (primary and middle school); (ii) ensure the training of inspectors, directors and teachers in the implementation of the new programmes and teaching aids; (iii) develop the school book policy; and (iv) evaluate 8

periodically the quality of learning. Nevertheless, the development of the curriculum is marked by: (i) the need to improve the trial master plan, that is to say taking into account all the components of a curriculum planned over time; (ii) a more sustained intervention in the various implementation phases (testing, generalisation) to consolidate the gains of BIEF support; and (iii) building the capacity of the CRIPEN to conduct the curriculum testing project, and subsequently the implanting of the curriculum, the evaluation of the gains of pupils, the design and evaluation of teaching aids.

2.6.3 In 2003/2004, middle and secondary education had 811 teachers (242 secondary school teachers, 353 assistant secondary school teachers, 11 primary school teachers and 14 contract primary school teachers), 180 contract teachers (under the collective bargaining regime) and 11 technical assistants. Out of this total women number 177 (21.82%). The minimum academic level required to teach in the general middle school is a Baccalaureate plus two additional years of study. Nevertheless, it is estimated that about 15% of the staff do not have the required level. An on-going training programme meant for beginner teachers was put in place. This plan, based essentially on the number of lecture hours in the week, monitoring and counselling visits, has been put in place by pedagogic advisers. The first generation of middle school inspectors exists and an annual training programme for teachers has been prepared. The development of the system requires lending adequate support to continuous training of middle and secondary school teachers.

Specific Constraints Relating to the Situation of Girls

2.6.4 In addition to difficulties of a general nature, young girls have specific constraints impeding their education. These constraints were identified and include mainly the illiteracy of mothers, frequent absenteeism, the lack of catching-up classes and educational-assistance at home, distance from school, domestic chores, the weak link between the school and parents, apprehension of parents with regards to the education of girls, the lack of sensitisation and means for teachers, high cost of education for the poor families and the lack of opening up of the school to the community. From the analysis done, it comes out that the major problem to resolve is the apprehension of parents towards the school the decline in the perceived value of schools. It is imperative to reinforce the information and sensitisation campaigns on the benefits of girl’s education and to train teachers on gender approach in order to take into account the specific needs of the girl-child in school. These actions will contribute to improve the quality of education and revalue the school in the eyes of the parents.

3. PROJECT AREAS

3.1 Access and Equity in Middle and Secondary Technical Schools

Middle School Education

3.1.1 Since 2001/2002, the middle schools have been designated as general middle education institutions, in accordance with the new provisions of the reform. General middle school education comprises 22 middle schools, of which ten public schools (six in the Djibouti district and one for each of the four other districts) and 12 private schools (six using the French language and seven using the Arabic language). The annual average growth rate of the student population, for both public and private schools, was 6.8% over the 1990/1991 to 2001/2002 period. This growth would be accelerated with the removal of the bottleneck at 9

the end of the Primary 6. For 2002/2003, 42.4% of candidates who took the Common Entrance Examination passed, that is 3,502 candidates, including 1,318 girls. For the past two Common Entrance Examinations, the rate of passing has begun to improve. This has made it possible to concretely implement the reform, which considers general middle school education as an integral part of basic education, and thus to considerably reduce the number of repeaters at Primary 6 and high cost of these repetitions. The current intake capacity of middle schools is estimated at about 16,600 places, which is clearly inadequate with regards to the number of pupils in primary schools, estimated at 46,364 in 2002/2003, capable of progressing to this level of education.

3.1.2 Middle school education offers two courses: a general course offered by middle schools and a vocational course offered by apprenticeship centres. The objective is to enable the state ensure a better orientation of cohorts from primary schools, in order, on the one hand, to safeguard the compulsory character of basic education, and on the other, to limit dropping-out and prepare the graduates either for general secondary education, technical or vocational training or for active life. In addition to deepening the objectives of primary education and the development of the skills gained by the pupils, it aims at providing general and/or vocational training. Emphasis is put on the development of scientific courses, initiation to technology and practical activities, early introduction of English teaching as well as the enhancement of the factors underlying quality, namely: teacher training, renovation of programmes and provision of adequate adapted textbooks and school teaching materials. Finally, the learning of technical and vocational skills, the establishment of close relations with the employment world and the conception of a project for entry into active life or continuation of studies will be given priority in the vocational courses.

3.1.3 The proportion of girls in middle schools has not increased during the past six years and it stood at merely 39.40% in 2002/2003. The parity index between boys and girls is 0.6 for the entire country and it varies between 0.3 for Dikhil and 0.7 for Djibouti. The gross enrolment rate in middle schools was estimated at 15.4% in 1998/99. In 2001/2002, the GER of the 12-15 years old population was estimated at close to 24% with 29.8% for the Djibouti district, while the other districts were between 11.9% (Obock) and 17.8% (Ali Sabieh). These disparities could be explained by the mode of life of the nomads, the image the people in disadvantaged areas have of schools, the exponential increase in the population of Djibouti city and the effects of education development planning policies in the country.

Secondary Technical Education

3.1.4 Technical education and vocational training (ETFP), which comprise a middle cycle and a secondary cycle, is the second priority of the 2001-2010 Action Plan and the 2001-2005 Education Master Plan of the government. The numbers at secondary technical and vocational training cycle stand at 1,458 pupils in 2003/2004, of which 1,338 pupils (91.77%) attend the Industrial and Commercial High School (LIC). The intake capacity is inadequate and in 2003/2004 is limited to 36 ordinary classes, 24 specialised classes, 11 life and soil science laboratories, 2 physical science laboratories, 2 teaching-staff rooms and 2 rooms for BCD. Having obtained financing for the expansion of secondary technical education from the Arab Fund for Socio-economic Development (FADES), the Saudi Development Fund (SDF) and the Islamic Development Bank (IDB), the Government now needs to address the expansion of the Industrial and Technical High School (LIC), the only secondary technical school in the Republic of Djibouti, which was constructed within framework of the Education Project I financed by the ADF and which is the topmost priority of the Government’s request sent to the Bank in December 2001. 10

3.1.5 The importance and central place occupied by the LIC in the national technical education and vocational training have already been underscored in the Completion Report of the Education Project I prepared by the Bank Group. This report recognised, among other recommendations, to envisage additional support to the LIC in future operations, which will be financed in the sector in order to build its capacity. The number of pupils at the LIC has, since the 1997 school opening, gone beyond what was envisaged by the initial project and which was 876. The current number of pupils at the LIC is 1,338 pupils, or an overshooting of more than 50% of its theoretical capacity. With the expansion envisaged, this institution could, on the one hand, improve the current working conditions of the pupils, and on the other part, increase its intake capacity by more than 300 places.

3.2 Relevance and Quality of Education

3.2.1 The basic education is aimed at the following end results: (i) satisfy basic training needs; (ii) provide the individual with maximum knowledge, skills and manners, which allow him to understand his environment and to continue his education; (iii) promote the educational contents which the human being needs to develop all his faculties, work and live in dignity, improve his quality of life, make informed decisions and continue to learn; and (iv) dispense education with social, moral, civic, cultural and religious values. Nevertheless, the education programmes are not adapted to the country’s realities and they are being recast within the framework of development of new curricula for basic education with support from the World Bank and French Technical Assistance.

3.2.2 The actions envisaged by the Government to improve the quality of education include: (i) the reform of teaching programmes; (ii) the development a school textbooks policy, aimed at conceptualising it and producing it at the local level, using knowledge developed by the CRIPEN; (iii) the initial and continuous training of a sufficient number of teachers; and (iv) improvement of the latter’s work conditions. Implementation of the measures envisaged requires the support of partners.

3.2.3 The measures envisaged also concern the ETFP. After ten years of operation and in view of the future Doraleh Port project and its free trade zone, a readjustment of the training offered by the LIC to meet the needs of the employment market appears necessary. In fact, the Government, in collaboration with the private promoters from DUBAI (United Arab Emirates), has embarked on a project of over USD 400 million which plans to transform Djibouti into a regional commercial pole by installing at Doraleh (situated at 8 km from the present port) a petroleum terminal, a new container terminal capable of receiving latest type of cargo ships and an industrial and a commercial free zone. Work on the future Doraleh Port has already began with the construction of the petroleum terminal and the technical studies for the construction of the port and its free zone, at the final phase. The completion of works is expected in 2008. This project will have a significant impact on the Djibouti economy through induced effects on the employment market in several areas such as construction, industry, tourism, telecommunications, new technologies, banking services, insurance and transport. 3.2.4 Additional pedagogic studies are necessary to redefine the training courses offered by the LIC to enable it better prepare the future middle-level technicians in this new drive and to raise the level of specialisation of the LIC graduates in order to better respond to the competitiveness requirements of an economy which will be confronted with globalisation. The procurement of modern pedagogic and teaching aids as well the establishment of a 11

reference and documentation centre in the technical area will contribute to the adaptation and to a better quality of vocational and technical training. It is also necessary to reinforce the training of trainers and the initial and continuous training of the ETFP teachers.

Situation of Girls

3.2.5 The situation of girls, whether it is about the problem of access, of quality or output, requires special attention. The analysis of indicators provided by the Planning department of the MENESUP reveals the following data about the public sector in 2001/2002: (i) for the first three years of middle-school education an average repeat rate of 5.1% (5.4% for boys against 4.5% for girls); (ii) in Form 4 an average rate of repeat of 17.7% for girls against 15.8% for boys; (iii) an early dropout rate in the first three years of study which affects girls more than boys (2.9% against 1.1%); (iv) a lower pass rate for girls at the BEPC examinations than boys (51.2% against 53.8%); (v) an early dropout rate of 10% for girls against 5.5% for boys. Considering these data, the MENESUP has set itself the objective of reducing disparities between boys and girls by increasing the ability to retain young girls from 40% to 60% thanks to specific measures dealing mainly with the inception of a scholarship programme for girls from disadvantaged areas and the setting up of hostels for young girls. The measures envisaged are described in the Framework of Action for Promoting the Education of Girls (CAPEF) published by the MENESUP in February 2004. It is necessary to support the efforts of the Government by emphasising the training of teachers in gender approach and measures facilitating the access of girls to school material and textbooks, among other things.

3.3 Health and HIV/AIDS in Schools

3.3.1 One of the important areas requiring the support of development partners is health in schools, especially as regrds the HIV/AIDS problems. The present situation of health in schools at Djibouti is far from covering the various aspects normally covered and which are the following: (i) regular monitoring of pupils (check-up at intake at the beginning of the school year, a check-up during the school year, with all the anthropometric methods); (ii) daily monitoring of patients in the institutions while refering cases considered serious to appropriate facilities; (iii) IEC hygiene and sanitation activities directed at prevention of most the frequent pathologies in schools on the one hand, and on the other, the prevention of the HIV/AIDS pandemic and the Sexually Transmitted Infections (STIs). An important aspect of this drive is immunisation. School health should, in collaboration with the stakeholders in the Enhanced Immunisation Programme, contribute to ensuring an antigenic cover for all the children in pre-schools and schools. To enable health in schools to paly its role fully, several measures were taken by the Government. Some of the actions envisaged were submitted to development partners, including the ADF, for financing.

3.3.2 With regards to the situation of HIV/AIDS, according to WHO classification, it is estimated that the HIV infection is generalised in Djibouti, that is to say that the entire population is concerned. The last estimates of UNAIDS at the end of 1999 indicate a seropositivity prevalence of 11.75% in adults between 15-49 years, a rate previously estimated at 10.3% in 1997 and 0.3% in 1987. This prevalence rate is 9.3% in pregnant women and 2 to 3% in blood donors. The evolution of sero-prevalence in STI carriers have moved from 2% in 1990 to more than 22% in 1996, date of the last study. Available data on prevalence in prostitutes date to 1996 and indicate that over 50% are carriers of the virus.

3.3.3 The analysis of the situation of HIV/AIDS in schools revealed a 5% prevalence rate of the infection among the 15/24 year olds. Moreover, a study conducted in Djibouti- City by UNICEF in May 2001 has revealed that: (i) AIDS is still regarded by the majority of young people as divine punishment; (ii) children aged from 10-14 years do not consider themselves personally concerned by AIDS; (iii) 66% of youngsters do not show a desire for solidarity or closeness with AIDS patients (fear of contamination); (iv) 77% of young people from 10-14 years and 91% of young people from 15-19 years are in search of additional information on AIDS; (v) the youths wish to establish a discussion and communication network around the problems of AIDS (vi) 18% of youths are sexually active from the age of 13 years; and (vii) 88% of youths from 10-14 years and 61% from 15-19 years do not use condoms.

3.3.4 Several actions were taken by the Government with the assistance of development partners to combat the pandemic. The Government has, among other actions, prepared and implemented a Sectoral Framework for HIV/AIDS and STI Control, 2003-2007as well as a Triennial Intersectoral Action Plan, 2003-2005. The country enjoys the support in the framework of the Tuberculosis, Malaria and AIDS Control Programme, supported by an IDA grant, and implemented by an autonomous agency called the Executive Secretariat of the National Intersectoral Committee for Tuberculosis, Malaria and AIDS Control (CNILSPT). This programme envisages an intervention in the school environment consisting mainly in social mobilisation through the theatre, revival of school health clubs in the LIC and in a middle school to be determined, training of teachers and students in five institutions, the production of quick support for IEC activities, building of the capacity of CRIPEN in the area of IEC and logistic support. HIV/AIDS control activities were also supported by several other operations of partners including two by the Bank Group, namely the on-going Social Development Fund Project and the Health Project which is at the start-up phase. The MENESUP established a new office in charge of health in schools, which will contribute to infuse new dynamism into the coordination of activities in school settings. This office is not yet operational and has not yet prepared an intervention strategy.

3.3.5 It is indispensable to lend more support to the ongoing efforts to improve the health situation in schools and to control HIV/AIDS. The school health and nutrition programmes could facilitate learning and improve the school results of pupils. The implementation of a school health programme is an effective strategy because it encourages synergy between the health, education, nutrition and public health sectors. An intervention in the school environment is also a potent tool for providing a large majority of the population with knowledge on how to prevent diseases and improve the conditions of their nutrition. This is especially true with regards to HIV/AIDS.

4. THE PROJECT

4.1 Project Design and Formulation

4.1.1 The project is a logical follow-up of the previous one in that it continues efforts deployed for the development of general middle schooling and technical secondary education, by correcting gender and regional disparities and by paying special attention to girls, to the quality of education and the HIV/AIDS epidemic. The project contributes to the setting up of the national education policy based on a sectoral approach which mobilised all state authorities and civil society and is also consistent with a ten-year master plan, a five- year action plan and a coherent list of projects proposed to partners. The choice to strengthen 13

middle school education (MSE) and ETFP is justified, among other things, by the following reasons: (i) MSE is an integral part of basic education, which is considered as the topmost priority; (ii) ETFP is recognised by the Government as the second priority; (iii) interventions of the majority of donors target principally primary education, which creates distortions regarding transition from primary to middle schools; and (iv) support to MSE and ETFP allows the consolidation the gains of previous interventions of the Bank Group in the education sector.

Participatory Approach

4.1.2 To ensure that the project responds in an objective manner to the needs of the Djibouti education system, the participatory approach was adopted in its identification, design and appraisal process. This method is first of all illustrated by the integration of the project into the actions envisaged in the 2001-2010 Ten-Year Education Master Plan and the 2001-2005 Education Action Plan prepared using the participatory approach through broad based national consultations, and reviewed at two Round Tables. Secondly, the various actors and partners in the education sector, particularly the representatives of civil society, have contributed to the formulation of the project through information and working meetings organised by the various missions. Meanwhile, project activities conform to those envisaged by the PRSP, which was prepared through a participatory approach. Gender issues were also taken into consideration.

Taking into Account Lessons Learnt from Past Operations

4.1.3 The ADB Group has already financed two projects in the education and training sector. The main achievement of the Education Project I was the construction and equipping of the Industrial and Commercial High School (LIC). As for Education Project II, it enabled, among other things, the construction of primary schools in urban and rural areas, the construction of a secondary school at Balbala, the rehabilitation of the General Education High School (LEG), improvement of the training of national education trainers, the development of environmental education, literacy actions and training of women, and the strengthening of the BEPE staff. Meanwhile, the Social Development Fund Project has financed the rehabilitation of primary schools. This project reinforces the gains of previous operations, particularly by enhancing the enrolment capacity of the education system, the training of teaching and supervision teams, support to the enrolment of girls and contribution to the improvement of the learning and health conditions in schools.

4.1.4 Several lessons were drawn from past operations financed by the Bank Group in Djibouti and were taken into account in the design of this project. First of all, it should be noted that the recurrence of sanctions related to arrears affect the rhythm of disbursements, and as a result, that of project implementation. Added to this problem is the limited knowledge of the Bank Group’s disbursement rules and goods and services procurement procedures. It was these problems that mostly disrupted project implementation in the education sector. Within the framework of preparation of the Bank’s strategy of assistance to the country for the 2002-2004 period and the preparation of this project, practical measures were envisaged to resolve the problems. Theses measures include, among other things, the reinforcement of dialogue between the Government and the Bank to resolve the recurrent problem of arrears, in close collaboration with the Bretton Woods institutions, training of project managers on the Bank’s procurement and disbursement rules and the enhancement of supervision missions. For the education sector projects, the existence of an Education 14

Projects Implementing Unit (BEPE) with experienced staff and the capacity of which is constantly being strengthened, contributes to the efficiency of implementation. The BEPE has demonstrated its capacity to implement and manage the sector’s projects.

4.2 Target Areas and Beneficiaries of the Project

4.2.1 Overall, project activities involve the whole country. The area targeted by the civil engineering aspect of the project is the Balbala neighbourhood in the peri-urban area of Djibouti and the whole of the city of Djibouti for the expansion of the LIC. The Balbala area situated in the southeast of the capital has serious overpopulation problems. It witnesses the extraordinary demographic growth of the city, which continues to attract people from up- country and from the neighbouring countries. The Balbala area has to manage the enormous expenses, which the country must assume: land allotment, water and electricity supply, minimum hygiene and living conditions and education. This area has eight (8) primary schools whose common entrance results (28.5%), are well below the national average (43.7% of candidates present). The Education Project II financed by the Bank had already provided this area with a middle school but the intake capacity remains well below current and future demands.

4.2.2 The activities aimed at enhancing the retention of girls in school cover the entire country for the basic education level. The improvement of health and HIV/AIDS control in schools will be supported at national level and the activities of the concerned components will involve all the teachers, except higher education teachers.

4.2.3 The main beneficiaries of the project are the poor families in the urban areas of the capital, who make up close to 70% of the country’s population, particularly the families living in the Balbala area where the middle school will be built. More specifically, the project targets the following main groups: (i) pupils seeking entrance to middle schools, particularly girls; (ii) the teachers and pedagogic supervision personnel, comprising close to 2,600 primary school teachers, secondary school teachers, education inspectors and counsellors, will take part in training and information sessions; (iii) the teachers and pupils who would like to be informed about and/or who are infected by HIV/AIDS, who will be the first target of information and sensitisation campaigns on the pandemic and the facilitation of access to the services offered within the framework of the PLS; and (iv) the parents, whose associations will be targeted for the project’s information and sensitisation aspect. In addition, the new school medicare office will be reinforced by the project, which will have positive impacts on the health of the pupils. The interventions of the State and other donors have served to determine the project area and the beneficiaries, thereby strengthening the coordination and synergies. Complementarity with the different actions has been sought systematically when defining the project targets.

4.3 Strategic context of the project

4.3.1 The strategic context in which the project is designed is determined by several recent developments. In order to lift the development constraints and mobilise the country’s potential, the Government has since 2000 drafted its Poverty Reduction Strategy Paper (PRSP) the final version of which was adopted in 2003 following broad consultations with development partners. This follows on the heels of the interim PRSP adopted in July 2001, which aims at attaining the Millennium Development Goals (MDG) and the NEPAD objectives aimed at infrastructure development. Four strategic axis have been defined in the PRSP and are aimed at: (i) spurring 15

growth and boosting the competitiveness of the economy; (ii) the development of human resources, particularly in the education, health and gender sectors; (iii) sustainable local development, improving access to water, employment promotion and income-generating activities for the poor and vulnerable segments; and (iv) the promotion of good governance. In relation to the Millennium Development Goals, the objectives of the education sector are to ensure universal primary education by 2015 and to eliminate gender disparities in primary and secondary schools. It is estimated that the probability of attaining these objectives by the set deadlines is about 80%.

4.3.2 The salient aspects of project context are a sectoral approach, a participatory approach, and an enhanced coordination between donors. In this regard, the project was defined as a contribution to the implementation of a national education policy based on a sectoral approach which ensured the participation of the State authorities and civil society and it is consistent with the Ten-Year Mater Plan, a Five-Year Action Plan and a coherent list of projects proposed to technical and financial partners within the framework of a roundtable. The project dovetails with the Bank’s Vision in the area of poverty reduction and with its Country Strategy Paper (CSP) for the 2002-2004 period which proposes the continuity of the Bank’s education sector operations, in consultation with the other donors within the framework of the base lending programme, and by subsequently integrating therein gender and multisector considerations (economic reforms and capacity building). It is also in line with the Bank’s policy in the area of education, health and HIV/AIDS control. By contributing as a matter of priority to the enhancement of the education system under the 2002-2004 CSP, the Bank Group’s actions are in line with the Millennium Development Goals, its own Vision as defined in its 2003-2007 Strategic Plan and the sectoral priorities of the Government’s PRSP aimed at developing human resources.

4.4 Project Objectives

The sectoral objective of the project is to help enhance access to and the quality of the education system. Its overall objective is to help increase the intake capacity, improve the equity and the quality of basic and secondary education as well as health in schools.

4.5 Project description and realisations

4.5.1 The project comprises a series of actions which will contribute to partially resolving the problems and constraints confronting the Djibouti education system, particularly middle- school education, which is part of basic education. The combined activities under the project components aim at the harmonious development and improvement in the quality and relevance of the education system, in line with the key orientations of the Action Plan. The detailed project activities by component are described below.

Component 1: Increasing Access to Middle and Secondary School Education

4.5.2 The activities envisaged in this component will contribute to improve the chances of access to basic education and to secondary technical education for a greater number of children by adopting a proximity approach in the provision of education. More specifically, this means developing the State’s offer of education services through the construction and equipment of a new middle school to absorb the influx of pupils coming from primary education and, by extension, from the Industrial and Commercial High School (LIC). 16

Construction

4.5.3 The project will finance the construction of a middle school with a capacity of 1,600 places at Balbala in accordance with the plans prepared by the architectural team selected by the project. The total indicative building area will be around 4,500m² and will be divided into several buildings, including pedagogic buildings, the administrative building, the pupils’ health care block and annexes. The pedagogic buildings with an indicative area of 3,888 m², comprises 30 ordinary classrooms each 60m², eight specialised rooms each 80m², including four with work surfaces for teachers and students, and four others with only one work surface for teachers, four preparation rooms (with work surfaces and several stores included in the construction) of 40m² each, two computer rooms, a library, a multipurpose room and four storage rooms. A health care block is also envisaged. The administrative building comprises a principal’s office, two offices for deputy principals, two secretary offices, a supervisor’s office, a meeting room, a teaching-staff room, two offices for a physician and a nurse, an archives room, a printing room and a health care block. Three residences and a guardroom would be added to the pedagogic and administrative buildings.

4.5.4. The site of the middle school has already been determined. The school will be located in the Southwest of the area in a place called "Cité Hodiane" where an available and unoccupied three-hectare land was allocated to the MENESUP since 2002. This site is easily accessible for the Balbala community since it is in the Balbala development area. There is no apparent nuisance, the land is not hilly and it has an adequate microclimate. The Government will provide the ADF with proof that the land required for the construction of the middle school was allocate to the project.

4.5.5 The project will also finance the expansion of the capacity of the country’s only Industrial and Commercial High School (LIC) by an additional of 300 places. The total area of the buildings will be about 1,580 m² and will be divided into several buildings comprising a 140m² multi-purpose room, a 600m² multi-purpose workshop, 2 physical science laboratories with teachers and students quarters of 70m² each, 2 computer-aided drawing (CAD) rooms 70m² each, 2 computer rooms of 70m² each, and 6 ordinary classrooms 70m² each. There is enough unused land on the LIC site for future expansion.

4.5.6 The site development works are also financed under this component. For the middle school, the roads and car park, with a total area of 2,000m² and external walkways will be paved. The construction of a perimeter wall and a place for a transformer are envisaged. The project also envisages the management and equipping of a sports field. For the expansion of the LIC, the different site development works will be linked with those already existing at the LIC. In order to avoid possible flooding during the rainy season, these walkways will be built with blocks or using permeable concrete slabs and/or provided with an adequate drainage network.

4.5.7 The construction technology will be adapted to local parameters, bio-climatic requirements of the respective sites and to lasting construction criteria. The architectural design will take into account resource savings during the construction and operation phase. Measures will be taken to minimise the use of water, energy and space, while preserving the richness of the natural resources on the site (contours, rocks and vegetation). With regards to the other conditions of the project loan, three months after the effectiveness of the loan and grant, the Government will provide the Fund with a long-term strategy and a detailed action 17

plan for the upkeep and maintenance of the infrastructure and school equipment. It will also provide the Fund, at the school opening following the completion of construction works of the middle school at Balbala and the expansion of the Industrial and Commercial High School, with the list of teachers deployed to these institutions.

Goods

4.5.8 The project will finance the furniture of the new middle school at Balbala consisting of double-seater chairs and tables for the ordinary rooms, the computer rooms and the special rooms without student work-surfaces. The component will finance, for each room, the procurement of a table and a teacher’s chair as well as the supply and installation of a triptych board. For the special rooms with work surfaces, stools will be procured for the pupils and teachers. A steel cupboard will be placed in each computer room and two in the library, which, in addition, will receive two tables, two chairs as well as adaptable two-seater tables together with cock-type chairs for the pupils. A set of shelves and two notice boards will also be provided and placed in the library. The cupboards of preparation rooms will be the built-in type included in the construction and therefore do not fall under this category of expenditure. The project will finance for the LIC, furniture similar to that of the Balbala middle school, to equip the ordinary classrooms, specialised rooms, the CAD drawing rooms and the computer rooms.

4.5.9 The furniture of the administrative section will consist of medium-size and large office tables, office chairs and visitors’ chairs, adaptable two-seater chairs for the meeting room and teaching-staff rooms with cock-type chairs. A set of shelves will also be provided for and placed in the archives room as well as three notice boards to be distributed in the administrative area. The guardroom will have a table, a chair and a steel cupboard. The new middle school’s non-pedagogical equipment to be procured comprises basics for the physician and nurse, office materials as well a supply of office consumables. The non- pedagogic computer equipment will also be procured for the new middle school. Finally, the component will finance the procurement of a 4-wheel drive double-cabin vehicle, indispensable for the operation of the new middle school. The procurement of this vehicle is justified by the need to give the middle school minimum means of transportation to confront the mobility needs of the pupils and teaching team.

Services

4.5.10 The project will finance consultancy and supervision services regarding engineering works of the Balbala middle school and the LIC. For the middle school, the geotechnical study of the site is taken into account. A precise topographic study will be conducted by the Department of lands of the Ministry of Finance. The studies and supervision of the construction of school infrastructure will be done by an architectural firm teaming up with a consultancy firm. The plans will be developed from a programme prepared by the MENESUP and detailing the description. The engineering and architectural studies will take the form of comprehensive and integrated missions and will focus mainly on the building designs, the preparation of bidding documents and the supervision of construction works. The preliminary design will contain a study on appropriate and sustainable technology with regard to construction materials and mode of implementation as well as proposals on the bio climatic measures to be taken and the following points: (i) water savings; (ii) reduction of maintenance costs; (iii) the incorporation of the natural elements of the site; (iv) the inclusion of green areas in the architecture; and (v) the sustainable 18

management of waste, the evacuation and processing of liquid/solid waste, management of sanitary facilities, the protection of the water table, among others. The buildings will be designed in accordance with the existing regulations as regards, inter alia, fire security, civil protection and people with limited mobility. They will also be designed taking into account seismic constraints. In order to ensure the durability of the buildings, a Control Bureau approved for the purpose will be called upon to ensure that the winning company gives assurances on the ten-year liability.

Component 2: Improving the Quality of Education

4.5.11 Activities financed by this component will contribute to improving the situation and the learning conditions of the general middle-school pupils. To this end and in order to support the reform of the current education system, the component will finance activities including: (i) the procurement of teaching aids suitable for the new school; (ii) support to the trial of the curriculum of general middle-school education; (iii) enhancing continuous training of education inspectors and teachers; and (iv) support to the access and retention of girls in middle schools.

Goods

4.5.12 For the new middle school at Balbala, the project will finance teaching aids for physics, biology-geology, history, geography and technology. It wil also finance a library fund and an initial allocation for school textbooks as well as audiovisual materials comprising a television, a tape recorder, a projector and a screen. The computer material of the new middle school will also be funded. It will consist of 16 complete and latest-version computers (PCs) with a laser printer and three stabilisers for each of the two computer rooms as well as an allocation of computer consumables. A complete set of physical education and sports equipment will also be financed by the project. In the drive to retain girls from disadvantaged areas in all public middle schools in Djibouti, an annual allocation of school textbooks for each school is envisaged by the project over a period of five years. These textbooks will be lent freely to about 10,000 girls.

4.5.13 For the LIC, the project will finance computer equipment for four rooms, for office automation and computer aided design (CAD), 16 computers, a laser printer and 3 stabilisers per room. It will also finance the equipment, teaching aids and specific equipment in the following areas identified by the LIC: (i) Specialisation in marine, fishing and pleasure boat engines; (ii) specialisation as a heavy-duty-truck mechanic/driver; (iii) specialisations in marine welding of stainless steel and aluminium; (iv) Specialisation in cabinet making and joinery; (v) Maintenance of computer equipment; (vi) Maintenance of household appliances; (vii) trade; and (viii) sales promotion. The project will also finance equipment for a reference and technical documents resource centre for local companies and teachers.

Services

4.5.14 To support to the development of curriculum of middle schools, the project will finance a three-month overseas training of four CRIPEN programme designers, in training engineering and the design and evaluation of teaching aids as well as a two-weeks study tour overseas (in Africa) for teaching supervision staff to draw from the experience of other countries having already implemented the curriculum. Their travel expenses, training costs and allowances will be financed by the project. Similarly, The project will finance a five-day 19

workshop each year over a period of five years, for 20 inspectors, for the preparation of continuous training programmes for the general middle schools, which will contribute to the continuous pedagogic training of 600 teachers in six-ay sessions (120 teachers each year for five years). The component will pay for the cost of 30 trainers required for this training, various office supplies and training modules. To enhance the retention of girls in middle schools, the project will finance the training of 500 teachers annually in three-day sessions on gender approach over a period of five years. The cost of 25 trainers required for this training, various office supplies and the training modules will be financed by this component. All gender-approach training, information and sensitisation programmes will include female genital mutilation and its impact on schooling as a main theme. Three months after loan and grant effectiveness, the Government will provide ADF with the detailed training programme which will be undertaken within the framework of this project.

4.5.15 The project will finance the specialist services required to support the preparation of the teachers’ continuous training modules estimated at one person/month (continuous training specialist) and the training of trainers in gender approach estimated at one person/month (gender approach specialist). Regarding middle-school-curriculum- development support, the specialist services needed are estimated at 12 person/months and will require the recruitment of a specialist in training evaluation and the design of teaching materials. The project will fund these specialists, their travel expenses, per diem, logistics and remuneration. The terms of reference of these specialists are given in the Project implementation Document.

4.5.16 For the LIC, the project will finance studies on the adequacy of the teaching programme to the employment market, bearing in mind the new Doraleh Port. These studies will also evaluate the areas of training currently offered by the LIC and will propose necessary adjustments to enhance the integration of graduates in the national and regional economy. The project will also finance the overseas training of about twenty teachers with a view to offering new training courses. Ten of the 20 teachers will undergo long-term training (2 years) and the other 10 follow a short-term training course of 4 months.

Component 3: Support to Enhancement of Health in Schools and HIV/AIDS Control

4.5.17 This component will provide support meant to: (i) accompany the preparation and the implementation of a strategy to improve health and hygiene in schools on the basis of the conclusions of a study to be conducted at the beginning of the project on the sanitary situation in schools; and (ii) prepare, test and validate a coherent and integrated process to fight against HIV/AIDS in schools. The component will also help to formalise this pilot process (evaluation) and to disseminate it among partners to serve as a reference in the area of HIV/AIDS control in schools. The activities envisaged are part of Government’s overall programme and support the interventions of all the partners, particularly those envisaged by the Bank Group, including implementation of the on-going Social Development Fund and Health Project, which is at the start-up phase.

Goods

4.5.18 Regarding furniture of the School Health Care Office, the project will finance the procurement of desks, two office chairs and four visitors’ chairs, six two-seater adaptable tables for the meeting room with twelve cock-type chairs, and two metallic cupboards. A 20

notice board will also be provided. The office-automation equipment of the School Health Care Office to procured and financed by this component, will comprise a photocopier (A4) and a fax machine as well as an allocation of office consumables. The computer equipment of the school health care office will comprise three complete PCs with laser A4 printers and a stabiliser for all these pieces of equipment as well an allocation of computer consumables. The component will finance the procurement of a 4-wheel-drive double-cabin vehicle for the school health care office. This vehicle is indispensable in the sense that the services to be provided for the pupils (information and sensitisation campaigns, evacuation to health centres, among others) require quick means of transportation. With regards to conditions precedent to the first disbursement, the Government will supply evidence of effectively setting up the school health care office by the deployment of the required personnel and putting at its disposal office space considered adequate by the Fund.

Services

4.5.19 The project will finance the study on the situation of HIV/AIDS in the school environment and the preparation of the strategy of intervention in schools based on the findings of the study. For example, a document on modules focusing on reproductive health, sexually transmitted diseases and AIDS, developed and tested in Senegal at adult literacy centres, is in the Project Implementation Document as reference for the curriculum. These modules were designed on the basis of a competency approach, as it is the case in the country. This component also includes support to MENESUP for the preparation of the school health and hygiene development policy which could focus on three axes: (i) improving the health and nutrition status of pupils and teachers; (ii) improving knowledge and empowering the actors to enable them to better address sanitary and nutrition problems; and (iii) mobilisation of parents for an efficient management of the school problems (registration of children, monitoring their progress and safeguarding their health by providing them with a clean environment, among others).

4.5.20 Regarding support to the improvement of health in schools and sensitisation in areas of hygiene and cleanliness (household waste management, evacuation and treatment of liquid/solid waste, sanitation management, protection of the water table, female genital mutilation and its impact on education), the project will finance a one-month overseas training in school health management for two officers of the school health care office by financing their travel costs, training cost and allowances. For the information and training of head teachers on the school-health-improvement strategy and the planning of hygiene and health actions in a school setting, the project will finance the training of 120 head teachers for three-day sessions over a period of five years. The cost of sundry supplies and its training modules will also be financed by this component. For the information and training of representatives of parents’ associations on the school-health-improvement strategy and the planning of hygiene and health actions in a school setting, the project will help to finance 400 head teachers for three-day sessions over five years. The cost of sundry supplies and training modules will be borne by this component.

4.5.21 Restitution and validation workshops of the study on the health situation in schools and the strategy for the improvement of health and hygiene in a school setting will be organized and funded by the project. Each year, these workshops will bring together 50 inspectors for a day throughout the five-year period. This component will also fund the cost of sundry supplies and training modules. The project will finance the cost of broadcasting sensitisation and information programmes, on radio and television, on health and hygiene in a 21

school setting. These 30-minute radio programmes will be produced in four languages and they will be broadcast at least 16 times. Likewise, 20-minute television programmes will be produced in four languages and will be broadcast at least 16 times.

4.5.22 The project will finance two study trips of two weeks in other African countries for officials of the schools health care office to analyse experience on interventions on HIV/AIDS issues in school settings. The costs of their air travel, training and allowances will be borne by the project. Sensitisation and social mobilisation actions on the HIV/AIDS issue in schools will be organised. These actions will stem from the findings of the studies to be undertaken. The project will bear the cost of these activities, at the rate of two actions each year for five years. To prepare the HIV/AIDS component of the curriculum, which will focus primarily on female genital mutilation and its impact on education, the project will finance a week-long workshop for 50 inspectors. The cost of sundry supplies and training modules will also be borne by this component. The training will be conducted by the technical assistance financed under this component. To train teachers in the use of the curriculum on HIV/AIDS, the project will finance a three-day workshop for 2,600 teachers of entire education system, with the sole exception of higher education. The cost of the sundry supplies and training modules will also be borne by this component.

4.5.23 For the restitution of the conclusions of the evaluation of the strategy on HIV/AIDS in schools, the project will finance each year a day’s workshop for 50 people through five years. The component will bear the cost of the supplies and training modules. Specialists funded by this component will provide the training. This workshop will enable the implementation and sharing of the results with actors and partners in the sector.

4.5.24 The project will bear the cost of producing and broadcasting the radio and television sensitisation and information on STD and HIV/AIDS in schools. The 30-minute radio programmes will be produced in four languages and broadcasted at least 16 times. The 20-minute television programmes will be produced in four languages and will be broadcast at least 16 times. The radio and television programmes will include, among the themes discussed, female genital mutilation and its impact on education.

4.5.25 The project will finance specialist services necessary for: (i) undertaking the study on the health situation in schools and the preparation of the strategy to enhance school health and hygiene (three person/months); (ii) support to the development of health in schools (three person/months); (iii) study on the of the situation of HIV/AIDS in schools (three person /months); integration of the issue of HIV/AIDS in the curriculum and IEC activities (one person/month); and (iv) evaluation of the intervention strategy for HIV/AIDS in schools (two person/months). The project will bear the cost of travel required for these experts, the per diem, logistics and honoraria. The terms of reference of these specialists are given in the Project Implementation Document. The design and production of an “image box” on HIV/AIDS in schools will be borne by this component. The design will involve the creation of 20 different images each of which will be printed into 300 copies. The image box is envisaged as support to the information and training activities, as well as a brochure bearing information on AIDS and meant for teachers.

Component 4: Project Management

4.5.26 This component will support the Education Projects Implementation Unit (BEPE), which currently manages the portfolio of education projects at the MENESUP. The BEPE has 22

two services: the Maintenance Service and the Projects Service. The latter comprises three units: civil engineering; procurement; and administrative and financial management. The BEPE enjoys foreign technical assistance provided by two architects. Taking into account the diversity and the number of projects that this department is expected to manage, the need for additional staff id felt in the accounting, procurement and monitoring/evaluation areas.

Services

4.5.27 The project will reinforce BEPE’s capacities by financing the services of a procurement specialist, a monitoring and evaluation specialist, and an accounting assistant. The project will bear the cost of the services of an auditing firm to audit the project through an annual auditing mission during project implementation.

Operation

4.5.28 The component will bear the operating cost for the administration, the cost of office supplies, courier despatching, and cost of publishing invitations to bid during the life of the project. The project does not plan to purchase a vehicle for the BEPE, but it will contribute to defraying costs relating to vehicles such as fuel, lubricants and maintenance costs during the life of the project. The project envisages bearing the cost of missions and travels to the Bank headquarters on the basis of one mission/annum for three people during the project life.

4.6 Environmental impact

4.6.1 The project comes under Environmental Category II. Its impact on the environment will be limited given that there are only few new civil engineering activities. However, technical provisions will be taken to avoid the effects of erosion, gullying and water stagnation. In addition, the new constructions will be well integrated into the environment of the sites (respect for all natural aspects of the sites, planting of trees, vegetation, erosion protection works). Environmental measures will be taken into account in the preparation of architectural studies and BDs whose criteria will include the provisions envisaged by the bidders to subsequently reduce the operation’s environmental impact and improve sustainability of the project. The environmental monitoring will be done directly by the staff working in the middle school built by the project. The sensitisation aspect in the areas of hygiene/cleaning (household waste disposal, collection and processing of liquid/solid waste, management of the sanitation facilities, protection of the water table) will have a positive environmental impact. The sensitisation will focus primarily on the associations and parents and they will closely be involved in the monitoring and evaluation of environmental protection. 4.6.2 The use of local materials and appropriate construction technology will enable the design team to develop architecture that expresses local culture and will have a positive environment impact. The measures selected to integrate maximum elements of the immediate surroundings into the architectural design, combined with the bio climatic measures, water savings, rationalisation of waste management and reduced maintenance, will contribute to environment protection and sustainability of the infrastructure. Considering that the expansion of the LIC is taking place within the premises of the school and on the land earmarked to that effect, such expansion will have a limited impact on the environment. The used water evacuation network of the new buildings will be connected to the existing network. The summary of the project’s environmental provisions is given in Annex 4. 23

4.7 Project cost

The total cost of the project excluding taxes and duties, is evaluated at UA 5.56 millions. This cost comprises UA 3.23 millions in foreign exchange (58.10%) and UA 2.33 millions in local currency (41.90%). The estimation of costs was carried out during the preparation mission in April 2003, evaluation mission in July 2003 and updating in mission in April 2004 according to information gathered from the MENESUP, the Ministry of Housing, Town Planning, the Environment and Land Development, BEPE and the various development partners. An average provision of 5.94 % for physical contingencies, and 1.8%for price increases over a five-year period, in foreign exchange and local currency, was incorporated into the project. Tables 4.1 and 4.2 below summarise the breakdown of the total project cost by component and by category of expenditure.

Table 4.1: Project Cost by Component

Millions DJF Millions UA COMPONENTS F.E. L.C. Total F.E. L.C. Total % F.E. 1. Increasing access to middle and secondary school education 537 237 774 2.04 0.90 2.94 70% 2. Improving quality of basic education 161 106 267 0.61 0.40 1.02 67% 3. Support to improving health in schools and HIV/AIDS control 36 137 173 0.14 0.52 0.66 21% 4. Project management 26 66 92 0.10 0.25 0.35 26% Total base cost 761 547 1,308 2.89 2.08 4.97 58% Contingencies 45 32 78 0.17 0.12 0.30 58% Price escalation 45 34 79 0.17 0.13 0.30 59% Total 851 613 1,464 3.23 2.33 5.56 58%

Table 4.2: Project Cost by Expenditure Category (UA million)

EXPENDITURE CATEGORIES Millions DJF UA Millions F.E.. L.C. Total F.E. L.C. Total % F.E.. A. Goods 115 153 267 0.44 0.58 1.02 54% B. Works 481 148 628 1.83 0.56 2.39 75% C. Services 159 213 375 0.61 0.81 1.43 34% D. Operation 6 34 37 0.02 0.13 0.14 17% Total Base Cost 761 547 1,308 2.89 2.08 4.97 58% Physical Contingencies 45 32 78 0.17 0.12 0.30 58% Price Escalation 45 34 79 0.17 0.13 0.30 59% Total 851 613 1,464 3.23 2.33 5.56 58%

4.8 Sources of Financing and Expenditure Schedule

4.8.1 The project will be jointly financed by ADF and the Government. The ADF’s contribution of an amount of UA 5 million, including UA 4.63 millions as a loan and UA 0.37 million as a grant, represents 90.0% of total project cost and covers the entire foreign exchange costs and 76% of the local currency costs. The ADF loan resources will finance all the expenditure categories. The grant resources are meant to finance part of the activities of Component 3, Support for the Improvement of School Health and HIV/AIDS Control. The performance indicators of activities financed from the grant are summarised in the logical framework relative to grant resources and the detailed cost of the grant is shown in Annex 10. 24

4.8.2 The Government’s contribution amounts to UA 0.56 million and represent 10% of total project cost. Its contribution will be used to finance part the «Works» and «Services» categories. The Government’s contribution represent 10% of the total amount of the project and 5.13% of the cost of the activity financed from the grant. Tables 4.3a and 4.3b below summarise the breakdown of the total project cost by source of finance.

Table 4.3a: Total Project Cost by Source of Finance (in UA millions)

SOURCES Foreign Exchange L.C. TOTAL % ADF 3.10 1.54 4.63 83.23% GRANT 0.13 0.23 0.37 6.64% Government 0.00 0.56 0.56 10.13% TOTAL 3.23 2.33 5.56 100% Percentage 58.10% 41.90% 100%

Table 4.3b: Total Project Cost by Source of Finance (grant resources) (in UA millions)

SOURCES Foreign Exchange L.C. TOTAL % GRANT 0.13 0.23 0.37 94.87% Government 0.00 0.02 0.02 5.13% TOTAL 0.13 0.25 0.39 100% Percentage 34.65% 65.35% 100%

4.8.3 Tables 4.4 and 4.5 below respectively summarise the breakdown of the total project cost by source of financing per component and per category of expenditure.

Table 4.4: Project Cost by Source of Financing and Component (UA Million)

ADF GRANT Gov. Total % COMPONENTS F.E. L.C. Total F.E. L.C. Total L.C. F.E. L.C. Total Comp 1. Increasing access middle and secondary school education 2.29 0.45 2.77 0.00 0.00 0.00 0.54 2.29 1.01 3.31 59% 2. Improving quality of basic education 0.68 0.46 1.14 0.00 0.00 0.00 0.00 0.68 0.46 1.14 20% 3. Support to improving health in schools HIV/AIDS Control 0.01 0.32 0.33 0.13 0.23 0.37 0.02 0.15 0.58 0.73 13% 4. Project management 0.11 0.28 0.39 0.00 0.00 0.00 0..0 0.11 0.28 0.39 7% Total 3.10 1.54 4.63 0.13 0.23 0.37 0.56 3.23 2.33 5.56 100%

Table 4.5: Project Cost by Source of Finance and Expenditure Category (UA million)

EXPENDITURE ADF GRANT Gov. TOTAL % CATEGORY F.E. L.C. Total F.E. LC Total M.L. F.E. L.C. Total cat. A. Goods 0..9 0.63 1.13 0.00 0.02 0.02 0.00 0.49 0.66 1.15 20.7% B. Works 2.05 0.09 2.15 0.00 0.00 0..0 0.54 2.05 0.63 2.68 48.2% C. Services 0.53 0.66 1.19 0.13 0.21 0.35 0.02 0.66 0.90 1.56 28.0% D. Operation 0.03 0.14 0.17 0.00 0.00 0.00 0.00 0.03 0.14 0.17 3.1% Total 3.10 1.54 4.63 0.13 0.23 0.37 0.56 3.23 2.33 5.56 100.0%

4.8.4 The expenditure schedules by component, expenditure category and source of financing is shown in Tables 4.6, 4.7 and 4.8 below.

Table 4.6: Expenditure Schedule by Component (in UA million)

COMPOSANTES 2005 2006 2007 2008 2009 Total 1. Expansion of access to middle school and secondary education 0.03 0.13 2.00 1.14 0.00 3.31 2. Enhancement of the quality of basic education 0.32 0.06 0.06 0.63 0.06 1.14 3. Support for the improvement of school health and the fight against HIV/AIDS 0.07 0.49 0.07 0.05 0.05 0.73 4. Project management 0.06 0.08 0.07 0.08 0.10 0.39 Total 0.49 0.77 2.20 1.90 0.21 5.56 Percentage 9% 14% 40% 34% 4% 100% . Table 4.7: Expenditure Schedule by Expenditure Category (UA million)

EDXPENDITURE CATEGORY 2005 2006 2007 2008 2009 Total A. Goods 0.05 0.09 0.05 0.91 0.05 1.15 B. Works 0.00 0.00 1.87 0.82 0.00 2.68 C. Services 0.40 0.65 0.24 0.15 0.12 1.56 D. Operation 0.04 0.03 0.04 0.03 0.04 0.17 Total 0.49 0.77 2.20 1.90 0.21 5.56 Percentage 9% 14% 40% 34% 4% 100%

Table 4.8: Expenditure Schedule by Source of Financing (UA million)

SOURCES/YEAR 2005 2006 2007 2008 2009 Total ADF 0.45 0.47 1.80 1.68 0.16 4.63 GRANT 0.04 0.26 0.03 0.02 0.02 0.37 GOVERNMENT 0.00 0.04 0.38 0.19 0.03 0.56 Total 0.49 0.77 2.20 1.90 0.21 5..6 Percentage 9% 14% 40% 34% 4% 100%

5. PROJECT IMPLEMENTATION

5.1 Project Executing Agency

5.1.1 The project will be implemented by the Education Projects Implementation Unit (BEPE) supported by other competent structures of the MENESUP and the Ministry responsible for health in schools and HIV/AIDS control. BEPE was established in the General Directorate of MENESUP, whose organization chart appears in Annex 5, for the needs of past projects. It has, among other operations, managed Education Project I, which was financed by the Bank Group and it now manages Education Project II, still of the Bank Group as well as a World Bank project. In the framework of implementation of the 2001- 2005 Education Action Plan, BEPE is also charged with the management of other projects financed by the development partners and which are briefly discussed in Section 2.5 of this report. Taking into account the increase in the volume of its activities, BEPE is confronted with the needs to strengthen its human resource capacities.

5.1.2 Due to its experience in the management of education projects, particularly those of the Bank, the BEPE is retained as executing agency of the new project (Education III). However, considering the numerous responsibilities of the BEPE, the implementation of the Education III Project requires the strengthening of its capacities. It is in this bid that the project will finance the activities envisaged in Component IV. With regards to the conditions precedent to disbursement of the loan and grant resources, the Government will forward to the ADF proof that BEPE has been maintained as project executing agency.

5.1.3 The special tasks of the BEPE are the following: (i) ensure the coordination of all project activities with the other technical departments concerned; (ii) ensure liaison with the Bank; (iii) ensure the administrative and financial management of all the components of the project; (iv) coordinate the preparation of biding documents for the procurement of works, goods and services; (v) supervise implementation of the construction works of the project; (vi) prepare payment requests for suppliers, consultants, entrepreneurs and training institutions; (vii) on the basis of activity programmes of the various departments taking part in the implementation of the project, prepare the requests for working capital as well as the justifying documents and forward them to the Ministry of Economic Affairs, Finance, Planning and privatisation and to the ADF; (viii) provide, on request, advisory support to the departments taking part in the implementation of the project with regards to the application of ADF procedures; (ix) ensure the financial mangement (evaluation of budgetary records, introduction and follow-up of payment requests), keeping the accounts and assets mangement; (x) prepare and forward to the ADF quarterly and annual activity reports; (xi) ensure the preparation of the auidt reports of the project accounts and forward them to the ADF; (xii) prepare the mid-term review; (xiii) ensure the monitoring and evaluation of project achievements; and (xiv) accomplish all other duties necessary for smooth project implementation.

5.2 Institutional Arrangements

Steering the Project

5.2.1 The Technical Steering Committee of MENESUP projects will be charged with steering the project. This Committee is composed of the following members: the Director of Planning and Computerisation at MENESUP, who will serve as rapporteur; a technical adviser from MENESUP; the representative of three ministries (Economy and Finance, Women’s Affairs, Employment and Vocational Training); the Director of Human and Financial Resources at MENESUP; the Director of Basic Education at the MENESUP; the Director of Secondary and Technical Education at MENESUP; the Director General of the University Centre; the Head of Maintenance Services and Projects; the Director of the CRIPEN; the Director of the CFPEN; the Heads of project executing agencies.

5.2.2 For the purpose of this project, the Steering Committee will associate two representatives of parents’ associations and two representatives of basic school teachers’ associations in their meetings. Each of the partners represented in the Steering Committee will be closely associated with the management and evaluation of the components and specific activities under its technical competence. The Steering Committee will meet once every quarter at the invitation of its Chairman. Extraordinary meetings could, nevertheless, be summoned if need be. The Steering Committee will oversee the attainment of the project objectives and the implementation of its various components.

Task of the Other Structures

5.2.3 In the implementation of the project, BEPE will rely on the competent structures of MENESUP and other ministries whose officials in the project will rely on respective line ministries. The “Civil Engineering” Unit of the Project and Maintenance Services will be charged with the coordination of the implementation of Component 1 of the project involving the construction and equipping the new middle school and expansion of the LIC. The implementation of the activities aimed at improving the quality of middle school education will be under the responsibility of the General Directorate of Pedagogy. The pedagogical aspect and improvement of the quality of ETFP will be under the responsibility of the Directorate of Secondary and Technical Education.

5.2.4 The new School Health Care Office, supported by the BEPE and the competent departments of the ministry responsible for health, will ensure the implementation of the HIV/AIDS control strategy in the school environment (component 3 of the project) with the assistance of the CRIPEN and the PLS. The implementation of this component will be coordinated with the executive secretariat of the intersectoral committee, in accordance with the Government’s option to coordinate and harmonise the interventions through this new autonomous multisector agency , which is no longer under the Ministry of Health.

5.2.5 Considering the importance of the training aspect of the project, the permanent training structures will be involved in the organisation and management of training activities. This involves primarily: (i) for education sector, the Centre for the Training of National Education Staff (CFPEN), the Centre for Research, Information and Production of the Ministry of Education (CRIPEN) and the Middle and Secondary Education Inspectorate (IEMF); and (ii) for the health and HIV/AIDS control activities, the Health Personnel Training Centre (CFPS), the Directorate of Prevention and Public Hygiene, the Prevention Unit of the PLS, the Global Coverage Unit of three PLS. . 5.3 Implementation and Supervision Plan

5.3.1 The implementation of the project will span a period of five year in accordance with the timetable summarised below and whose details are given in Annex 6.

Table 5.1: Summary of the Estimated Project Implementation Schedule

ACTIVITIÉS DATES DEPARTMENT IN CHARGE Board approval July 2004 ADF Signature of the loan October 2004 ADF/Government Approval by National Assembly November 2004 Government Effectiveness of loan/grant January 2005 Government/ADF Launching of the recruitment of specialists January 2005 BEPE/ADF Component 1: Enhancement of Access Preparation preliminary design for constructions July to Dec 2005 BEPE Preparation of bidding documents for constructions Jan to June 2006 BEPE Invitation of bids for construction works Aug to Dec 2006 ADF/BEPE Supervision of construction sites Jan 2007 to June 2008 BEPE Construction works Jan 2007 to June 2008 BEPE Preparation of equipments/furniture/ vehicle list Oct to Dec 2007 ADF/BEPE Procurement of equipment/furniture/ vehicle Jan. 2008 to June 2008 ADF/BEPE Delivery, installation equipments/furniture/ vehicle August 2008 BEPE Component 2: Quality Improvement Preparation of list of teaching aids Oct. To Dec 2007 ADF/BEPE Procurement of teaching aids Jan. 2008 to June 2008 ADF/BEPE Delivery of teaching aids August 2008 BEPE Training /sensitisation Jan. 2005 to Dec. 2009 BEPE Specialist services Jan. 2005 to Dec. 2006 BEPE Component 3: Support to Health in Schools Preparation of equipments/furniture/ vehicle list February 2005 ADF/BEPE Procurement of equipment/furniture/ vehicle May to Sept. 2005 ADF/BEPE Delivery, installation equipments/furniture/ vehicle October 2005 BEPE Training /sensitisation Jan. 2005 to Dec. 2009 BEPE Specialist services Jan. 2005to Dec. 2006 ADF/BEPE Component 4: Project Management Launching mission January 2005 ADF Audit Jan 2006 to Jan 2010 BEPE Operation Jan 2005 to Dec 2009 ADF/Govt Supervision (two missions per annum) Jan 2005 to Dec 2009 ADF Mid-term review mission September 2007 ADF/Govt Government’s completion report September 2009 Government ADF completion report March 2010 ADF/Govt

5.3.2 After the approval of the loan and grant, the ADF will organise a project- launching mission. The ADF will undertake two supervision missions annually. A mid-term review mission is envisaged after two years of implementation. The estimated timetable of missions is shown in the project implementation document.

5.4 Procurement of works, goods and service

5.4.1 Provisions for the procurement of works, goods and services are summarized in Table 5.2 below and detailed as per the temporary list of goods and services shown in annex 7.

Table 5.2: Provisions for the Procurement of Works, Goods and Services (in UA millions)

EXPENDITURE CATÉGORY ICB LCB OTHER S.L. TOTAL A Goods 1.15 [1.15] Furniture 0.19 [0.19] 0.19 [0.19] Office equipment 0.02 [0.02] 0.02 [0.02] Computer equipment 0.11 [0.11] 0.11 [0.11] Teaching aids 0.03 [0.03] 0.03 [0.03] Teaching aids for Industrial School (LIC) 0.23 [0.23] 0.23 [0.23] Sciences classes material 0.07 [0.07] 0.07 [0.07] Library fund, school textbooks and 0.40 [0.40] 0.40 [0.40] documentation Medical equipment °° 0.002 [0.002] 0.002 [0.002] Physical education equipment * 0.04 [0.04] 0.04 [0.04] Vehicles * 0.05 [0.05] 0.05 [0.05] Office and computer consumables°° 0.01 [0.01] 0.01 [0.01]

B Works 2.68 [2.15] Construction of Balbala middle 2.68 [2.15] 2.68 [2.15] school/Extension LIC

C Services 1.56 [1.56] Studies and supervision of works 0.34 [0.34] 0.34 [0.34] Overseas training ° 0.20 [0.20] 0.20 [0.20] Local training ° 0.60 [0.60] 0.60 [0.60] Specialist services 0.35 [0.35] 0.35 [0.35] Audit 0.09 [0.09] 0.09 [0.09]

D Operation 0.17 [0.17] Operating cost BEPE °° 0.17 [0.17] 0.17 [0.17]

Total cost 2.68 [2.15] 0.58 [0.58] 1.53 [1.51] 0.78 [0.78] 5.56 [5.00] ADF loan 2.15 0.56 1.27 0.66 4.63 Grant 0.00 0.02 0.24 0.11 0.37 Government 0.54 0.00 0.02 0.00 0.56 ICB: international Competitive Bidding LCB: Local Competitive Bidding; S.L.: Shortlist; Other methods of procurement: ° Procurement on force account; °°Local shopping; *International shopping; ** Direct procurement from editors [ ] : ADF financing (loan and grant)

5.4.2 The procurement of works, goods and services financed by the ADF will comply with the latter’s Rules of Procedure for the Procurement of Goods and Works or for the Use of Consultants, as the case may be, using standard ADF bidding documents. The procurement of works, goods and services will be conducted by the BEPE in accordance with the list of goods and services given as Annex 7 and with the procurement methods described below.

Construction works (UA 2.68 million):

International competitive bidding (ICB) for the construction works of the new middle school at Balbala and the expansion of LIC.

Goods (UA 1.15 million):

(i) Local competitive bidding (LCB) for the procurement of furniture (UA 0.19 million), office equipment (UA 0.20 million), computer equipment (UA 0.11 million), pedagogical materials for the middle school at Balbala (UA 0.03 million), and pedagogical materials for the Industrial High School - LIC (UA 0.23 million), given the existence of qualified local suppliers and in sufficient numbers to ensure competition; 30

(ii) International shopping for the procurement of physical education equipment for the new Middle School at Balbala (UA 0.04 million), the library fund and school textbooks (UA 0.40 million), the three vehicles (UA 0.04 million), and the equipment for science rooms (UA 0.07 million), given that they are diversified goods which are not available locally and for which there is no commercial interest for a sole bidder to bid for the whole lot.

(iii) Local Shopping for the medical equipment (UA 2000) and for office and computer consumables (UA 6000): the amounts of the contracts are small and the consumables are procured gradually as the need arises, from local suppliers to avoid overstocking and facilitate consumption control.

Services (UA 1.56 million):

(i) Recruitment on the basis of a shortlist in accordance with the ADF procedures for the procurement of the services of consultants for: (a) undertaking architectural studies, technical control and soil studies, for an amount of UA 0.34 million; (b) the services of specialists for activities relating to HIV/AIDS in schools and specialist recruited to strengthen BEPE - a procurement specialist, a monitoring and evaluation specialist, and an Accounting Assistant – for a total amount of UA 0.35 million; and (c) the services of an audit firm for an amount UA 0.09 million.

(ii) The special training of staff of MENESUP concerned by the project will be entrusted to the specialised centres and institutes (CFPEN, CRIPEN, IEMF) and with which agreements will be signed after ADF approval. The selection will be done on the basis of terms of reference previously approved by the ADF. The sensitisation aspect will be entrusted to national organisation and programmes involved in the project and it will be coordinated by the Executive Secretariat of the Intersectoral Committee for Tuberculosis, Malaria and AIDS control. The trainings is summarised as follows: • International training for the improvement of quality in middle school education for an amount of UA 0.16 million; • International training for the improvement of school health and HIV/AIDS control for an amount of UA 0.02 million; • Local training is detailed as follows: o an agreement for an amount of UA 0.03 million will be signed directly with specialised centres and institutions (CFPEN, CRIPEN, IEMF) for organising workshops to improve quality in middle school teaching; o an agreement for an amount of UA 0.02 million will be signed directly with local centres and programmes (Centre for Training Health Workers; Directorate for Prevention and Public Hygiene; Malaria Control Programme; HIV/AIDS Control Programme - PLS; Tuberculosis Control Programme; Prevention Unit of the PLS; Overall Coverage Unit of the PLS) and will be coordinated by the Executive Secretariat of the Intersectoral Committee for Tuberculosis, Malaria and AIDS Control, Local Training and Sensitisation to Improve School Health; the costs of actions will vary between UA 6,000 (restitution and validation workshop of the strategy) and UA 130,000 (information and training workshop for parents of pupils);

o An agreement for an amount of UA 0.29 million will be signed directly with the same centres and local programmes for local training and sensitisation on HIV/AIDS control; the costs of the actions will vary between UA 6,000 (workshop for the preparation of a curriculum on HIV/AIDS) and UA 170,000 (training of 2,600 teachers in the use of the curriculum on HIV/AIDS);

Operation (UA 0.17 million):

Local shopping: for procurement corresponding essentially to operating costs of vehicles and procurement of consumables representing about ten contracts, the amount of each contract being between UA 10,000 and UA 20,000; and for the procurement of air tickets for BEPE staff for missions to the Bank headquarters; 6 return tickets for a total amount of UA 13,000. The operating costs of BEPE will include allowances for the support staff.

General Information Note (GIN) on Procurement of Goods and Services

5.4.3 The text of the general information note (GIN) on procurements discussed and approved during negotiations will be published in Development Business after approval of the loan and grant proposal by the Bank’s Board of Directors.

Review Procedures

5.4.4 Prior to publication, the following documents will be submitted to the Bank for review and approval: the special information note on the procurement of works, goods and services; shortlist and letters of invitation to bid; bidding documents; bid evaluation reports comprising contract award recommendations; draft contracts where the standard contracts included in the bidding documents were modified. For the architectural studies, the Borrower will analyse the technical bids and will only open the financial bids after receiving the non- objection of the ADF regarding the technical analysis report. For the other services, the Borrower will analyse the bids (technical and financial) before forwarding the evaluation report to the Bank.

5.4.5 For the procurement of services, the selection procedures will be the following:

(a) for undertaking the architectural studies: evaluation of bids on the basis of technical quality; (b) for the services of specialists and an auditing firm: evaluation of the combined technical and financial bids; and (c) for the technical control and soil studies: evaluation of bids based on the comparability of technical bids and the consideration of the lowest bid.

5.5 Disbursements

5.5.1. The Government will open three accounts in the name of the project. The first account will be opened at a commercial bank deemed acceptable by the ADF and will serve to receive the loan resources. The second account will receive grant resources. It will also be opened at a commercial bank acceptable to the Fund. The third account will be opened at the Central Bank of Djibouti to receive national counterpart resources. The notification of the 32

ADF by the Government of proof of opening of these three accounts shall be a condition precedent to the disbursement of loan and grant resources. In addition, the Government will imperatively pay annually into the account opened for this purpose, its contribution to the financing of activities programmed for the current year.

5.5.2. Disbursements will be made throughout the duration of the project, that is over a period of five years, in accordance with the temporary list of goods and services in Annex 7. The ADF’s replenishment of the accounts meant to receive loan and grant resources will aim at financing eligible expenses over a period of four months of activity. Disbursements will be made on the basis of a programme of activities acceptable to the ADF after justification of the utilisation of at least 50 % of previous payment, as the case may be.

5.6 Accounting and auditing

5.6.1 To ensure the management of the project, BEPE will maintain an accounting system that facilitates the presentation and effective monitoring of operations by source of financing, by component and category of expenditure. There is an accountant en poste at BEPE and the project envisages the hiring of an accounting assistant. Their main job will be to keep the accounting system up-to-date.

5.6.2 Each year, a project audit mission will be carried out by an international auditing firm recognised by the ADF and the Government. The audit will cover all aspects of the execution of the project and in particular the annual auditing and verification of the accounts, the project management and procurement of goods and services in line with ADF procurement rules. At the beginning of project implementation, the Government will hire an audit firm to do the annual auditing of the project. Meanwhile, at the end of each fiscal year, the Government will regularly transmit to the ADF within six months at most, the audit reports for review.

5.7 Monitoring and Evaluation

5.7.1 In order to strengthen monitoring and evaluation actions, a monitoring and evaluation specialist, paid by the project, will be part of the project implementation team. The reinforced BEPE will be responsible for monitoring the implementation of the project components, in accordance with the implementation plan agreed with the borrower and an ADF monitoring plan. In this regard, based on the indicators of the 2001-2005 Education Action Plan, the 2001-2010 Education Master Plan and the objectives and achievements of the current project, it will prepare, at the beginning of implementation, a complete table of actions that will make it possible to effectively monitor and evaluate the project. Regarding the supervision of engineering works, BEPE will be assisted in this task by the architectural firm in collaboration with consultancy firm to be hired by the project. It will prepare quarterly progress reports, financial and completion reports. These will be prepared in accordance with of the Bank’s guidelines in the area and will be submitted to MENESUP and the Bank. In this regard, the coordinator of the BEPE and the official responsible for the award of bids will visit the Bank headquarters soon after the commencement of the project to familiarise themselves with Bank procedures.

5.7.2 ADF will undertake a project launching mission, as well as on-site supervision missions. During the launch, a seminar will be organised in which the roles of the various stakeholders will be better specified. The supervision missions will be conducted in accordance with the Bank Group’s guidelines, namely at least two supervision missions each 33

year. A mid-term review (ADF/Government) is also planned. Its purpose will be to measure progress made compared to the set objectives and to propose corrective measures if need be. The estimated timetable of missions is shown in the project implementation document. During portfolio review exercises, the status of the project will be reviewed. The reports and the conclusions, which will come out of these missions, will be presented to the project partners and managers for them to take appropriate actions.

5.8 Project Implementation Document

A project implementation document was drafted at the same time as the evaluation report. The table of contents of this Document is shown in Annex 8. Meanwhile, BEPE has a procedures manual already operational and which will also used during the implementation of this project.

5.9 Aid Coordination

5.9.1 This project was designed so as to complete by way of synergy, the interventions of all the development partners in the education and training sector. Consequently, information and coordination meetings of donors were systematically organised during identification, preparation, appraisal and updating missions. The main donors, particularly the French Technical Assistance and the AFD, the USAID, UNICEF, UNDP, WFP, among others, were met and informed on the activities financed by the project. Their respective operations were taken into account in the effective design of the project. Coordination will continue during project implementation.

5.9.2 For the whole of the education sector, the PRSP, the 2001-2010 Education Master Plan and the 2001-2005 Action Plan, are important coordination tools for the coordination of interventions. Aid coordination is facilitated by the fact that The Higher Committee on Education at the MENESUP is responsible for the coordination of all donor interventions in the education sector. Meanwhile, BEPE, the project executing agency, also implements the other projects financed by the main multilateral donors. BEPE also ensures the daily management of several additional projects. It contributes in this way to coordination between donors. It should also be emphasised that the Ministry of Economic Affairs, Finance, Planning and Privatisation has a Directorate of External Finance responsible for the mobilisation and monitoring of external resources. This directorate established in 2001 is supposed to reinforce and facilitate the coordination and monitoring of the mobilisation of external resources, serve as an interface between development partners and Djibouti’s technical ministries.

6. RECURRENT EXPENDITURE AND PROJECT SUSTAINABILITY

6.1 Recurrent Expenditure of the Project

6.1.1 Implementation of the project will lead to recurrent expenditure as a result of the expansion of the education sector, which is estimated to cost UA 0.69 million annually. These recurrent costs were calculated to take care of the maintenance of buildings constructed by the project, calculated at 2% of the annual investment, and the maintenance cost of all the equipment and furniture as well as the whole of the pedagogic materials purchased by the project, calculated at 5% of the annual procurement value. The operation of the new school was also taken into account and the expansion of the LIC, the school medical care office and the salaries generated by the positions created.

6.1.2 In 2003, the MENESUP spent an amount of UA 24 million on recurrent expenditure in the education sector. This project, together with other operations financed by other sources, will cumulatively engender an increase of the recurrent expenditure budget of the education sector by almost 3%. The increase represents 1.60% of total education budget and 0.40% of the national budget. These rates indicate that the project’s impact on recurrent expenditure could be borne by the State.

6.2 Project Sustainability

6.2.1 Several elements contribute to the sustainability of project actions. On the qualitative front, one could mention the improvement of pedagogical skills of the teachers and inspectors thanks to training and refresher courses. Added to that is the capacity building for the BEPE, which is a permanent structure for the management of support operations to the education system. Furthermore, the important aspect of information campaigns and sensitisation on the enrolment of girls and on the issues of school health, will contribute to involve more the local communities in the management of education, which will enhance the sustainability of the gains.

6.2.2 The maintenance office of the MENESUP is responsible, at the central level, for the maintenance of primary schools. This office covers the geographical area of Djibouti city and its surroundings, maintenance in the districts being the responsibility of each district headquarters. The upkeep of middle and secondary schools is assumed by the schools with their own budgets and their own teams. The restructuring of the education system, which groups primary schools and middle schools into an integrated basic education, will also change the organisation of the management of the maintenance. MENESUP has undertaken actions aimed at providing it with an upkeep and maintenance strategy, strengthening its capacity to conduct an inventory of its assets and undertake preventive maintenance operations. The measures will contribute to the sustainability of infrastructure and equipment.

Maintenance of Infrastructure and Equipment

6.2.3 Sustainability issues and maintenance of infrastructure and equipments were taken into account in the preparation of this project. The BEPE will watch over, during the elaboration of the terms of reference of consultancy firms charged with conceptualising and monitoring of the implementation of construction works, to request that local and durable materials requiring little maintenance or which are resistant to frequent maintenance operations. The middle school will be constructed using adapted technology and architecture without complex elements, which could create maintenance problems. The design concept of the buildings will include ergonomic measures, cleaning, control and maintenance. The installations and movables elements could be attained, cleaned and repaired without difficulty. In order to ensure the durability of the middle school buildings, the companies and works supervisors will be insured for a ten-year guarantee to ensure the durability of the works. The middle school will be protected by a perimeter wall that could shield it from any act of vandalism and as such contribute to the durability of the structures and protection of the equipment. Appropriate and sustainable technology regarding the construction materials and methods, bio-climatic measures, water savings, measures for reducing maintenance, the incorporation of the natural elements of the site and incorporation of green areas in the architectural design, will help to enhance the durability of the buildings.

6.2.4 Regarding the furniture, installations, the tap system, electrical material, building materials, the specifications will underscore the need to procure best quality goods, by providing all the necessary technical specifications. By envisaging superior quality materials adapted to local conditions, it will be possible to reduce maintenance costs to a minimum. In the case of computer equipment, the choice of procurement method (local competitive bidding) seeks partly to ensure that the equipment to be procured is being used in the country and that it will not give any after-sales or maintenance problems. The technical quality of the architecture, installations and materials on the one hand, and the empowerment and appropriation of the infrastructure and equipment by the community, on the other hand, will help to reduce the maintenance costs and to enhance sustainability. The MENESUP attaches great importance to the maintenance of the infrastructure and equipment. At the end of construction works at the middle school at Balbala and the expansion of the Industrial and Commercial high School, the Government will put in place a sufficient budget to cover the maintenance of the infrastructure and equipments (2% of the total cost of investments for the infrastructure and 5% of the total costs of investments for school equipment).

6.3 Risks and Mitigating Measures of the Project

6.3.1 The reform of the education and training system was launched based on strong political will and the definition of well considered and well programmed strategies. Its success depends on the stability of the country and on the skills contribution of local experts in concluding the actions undertaken. The 2001-2005 Action Plan was adopted after preparing a macroeconomic framework and a review of recurrent expenditure that many investments would generate. The risk is if the country’s economic climate deteriorates the Government may no longer be able to assume its recurrent expenditure. By contributing to the development of the country, the actions of the project constitute mitigation measures against this risk.

6.3.2 Considering the extent of these tasks linked to the implementation of the reform and the inadequacy of competent resources, it is appropriate to question the capacity of the services of the MENESUP to manage all the on going or up-coming projects. Strengthening the capacities of the Ministry and BEPE constitute, from this viewpoint, an important risk- mitigating measure. The major mitigating measures for these risks hinge on the training of MENESUP staff in the areas where the need is felt, the organisation of study tours and the enhancement of the supervision of the project.

7. PROJECT BENEFITS

7.1 Economic Benefits of the Project

7.1.1 The project will, among other things, contribute to the implementation of the 2001-2005Education Action Plan, which constitutes a major step in human resource development in Djibouti. Indeed, the country should not only make up for a delay in increasing access to the various levels of education and in the enhancement of the quality of education, but it should also develop its human resource potential as a factor for economic and social development ( in a situation of limited availability of natural resources) and integration indispensable in international trade as induced by globalisation. The long term effects of the implementation of this Action Plan should, by raising skills, enable the creation of new types of employment, linked to the domestic market, regional and international, and as such contribute to poverty reduction. 36

7.1.2 The project, by contributing to the Government policy of generalising middle- school education, which in the long run (by 2010) should become compulsory for all Djiboutis up to the age of sixteen years, contributes to the general enhancement of level of education of the country’s population, an indispensable condition for active participation in the development of the country. The expansion of the LIC will also make the graduates of vocational and technical education more productive and better able to occupy middle- management positions which the Djibouti economy will need increasingly to accompany the development and expansion of the free zone of the port. According to the first estimates of the current management of the Port of Djibouti, the future port complex at Doraleh will create at least a thousnad direct jobs immediately after the end of works and several tens of thousands of indirect jobs in the next ten years. The private promoters of the port of Doraleh hope that the commencement of activities will bring from overseas qualified personnel who will be progressively replaced by locally trained Djiboutis, on condition that the Djibouti education system is made more productive. Once it is renovated, the LIC, thanks to the quality of its staff and its equipment, will also offer continuing education services to companies which could train their staff there. This activity will provide the LIC with additional resources and will contribute to ease pressure on the State budget.

7.1.3 The project will invest considerable resources in the training of human resources, which will contribute to the skills enhancement of the teaching staff and thus induce a positive impact on the quality of education. All the people trained in the various specialities, above the improvement of their own skills, will constitute from now on potential trainers, ensuring good continuity of knowledge and vocational practices. Once the middle school is built and equipped and the LIC expansion, they will serve for many years and will contribute to the improvement of education. Meanwhile, community participation in the improvement of health in schools and in the prevention of HIV/AIDS in schools, will contribute to ownership of the project output by the population and to its sustainability.

7.1.4 Production potential is closely related to the quality of manpower available and to its productivity. The HIV infection and tuberculosis are impediments to economic development in the sense that they hit in the most productive years of life, thereby aggravating poverty of the households and the community at large. Productivity and the supply of labour drop while health expenditure increases significantly. They reduce available labour, the lifespan of infected people and make them inept to work as soon as the disease is declared. This reduction of potentially available labour is aggravated by the fact that very often, some members of the family have to take care of the patient full time and, as such, are no longer in a position to fully play their productive roles in society. This phenomenon could also be observed in the teaching population.

7.2 Social impact analysis

7.2.1 The project will contribute to the strengthening of the Government’s efforts in its education policy. It is a significant effort in the development of middle school education. It will contribute to raising the qualification level of graduates of the education system, which will facilitate their insertion in active life. It will also contribute to the promotion of women, the improvement of health in schools and the fight against poverty. The project forms an integral part of the national education policy and will contribute to the attainment of certain objectives defined by the main orientation of Education Action Plan namely: (i) increased access to middle-school education; (ii) reduction of early dropping-out of school at the end of primary schools; (iii) reduction of gender disparity; and (iv) improvement the quality of apprenticeship. 37

7.2.2 Close to 3,000 pupils in the Balbala neighbourhood could access middle school education with improved conditions of study. Compare to the 3,502 pupils enrolled in the first year of middle-school education in 2002/2003 and the present intake capacities of middle school education estimated at about 16,600 places, the new middle school, with 1,600 places, represents a significant contribution to the supply of education services. Girls will also benefit from the project with the specific measures envisaged both for their retention and success. The registration of girls in the new middle school will represent at least 50% of the student population. Teachers are also concerned because the 2,600 teachers and professors in primary and secondary schools as well as inspectors and pedagogic advisers, will contribute to training and information sessions on the improvement of health in schools and on HIV/AIDS. Teachers and pupils infected with and affected by HIV/AIDS could, through the facilitation of access to services offered in the framework of the PLS, benefit from support. The new office in charge of school medical care is also targeted by the project. Middle school teachers would find continuous training opportunities in addition to on-going efforts and the technical departments of the MENESUP would be strengthened through an adapted technical assistance, specialised training and study trips. The parents’ associations will be more involved in the management of the middle school in the framework of decentralisation recommended and implemented by the Ministry. These parent’s associations would also be more concerned by the improvement of health in schools and the prevention of HIV/AIDS. The third component of the project seeks to mitigate these damages by supporting the improvement of health and HIV/AIDS control in schools.

7.3 Impact on Gender and Equity

7.3.1 The project envisages specific measures to contribute to the resolution of gender disparity problems in the education system. Among these measures, one could retain the 1,600 places to be allocated to girls in the new middle school as well as the information and sensitisation campaign, which will be conducted to boost the registration and retention of girls in the education system. The training of 500 teachers on gender approach will make it possible to better take into account the gender issues in the curriculum. The project envisages the procurement of textbooks for 10,000 girls from disadvantaged areas.

7.3.2 By putting special emphasis on the retention and success of girls in schools, the project will contribute by the same token to delaying the age of marriage and early pregnancy. It will contribute to greater democratisation of the society with a new place for the woman in the management of public affairs. It will also contribute to the health of the mother and child as well as to the development of education. On the whole, the actions envisaged will have a positive impact on the situation girls in schools.

8. CONCLUSIONS AND RECOMMENDATIONS

8.1 Conclusions

The project is a logical follow-up of the Bank’s previous interventions in Djibouti, the effects of which it extends. On the basis of lessons drawn from the Bank’s experience in the education sector in Djibouti, the requisite technical and institutional arrangements were made in order to adapt the actions of the project to the exigencies of the socio-economic context on the one part, and to ensure that the project performs to a level consistent with the Bank’s project implementation standards. Finally, the project dovetails well with the current development plan of the education system and the sectoral policy of the Bank Group in the area of education. 38

8.2 Recommendations and Loan and Grant Conditions

8.2.1 It is recommended that an ADF loan of UA 4.63 million and a grant of UA 0.37 million be awarded to the Government of the Republic of Djibouti for implementation of the project described in this report. The loan and grant will be subject to the following specific conditions:

A. Conditions Precedent to Entry into Force of the Loan and Grant

8.2.2 Entry into force of the loan agreement and the grant memorandum of understanding shall be subject to the following provisions: (a) for the loan, satisfaction by the borrower of section 5.02 of the General Conditions Applicable to Loan Agreements Guaranteed by the Fund; and (b) for the grant, the signing of the grant memorandum of understanding by the Donnee and by the Fund.

B. Conditions Precedent to the First Disbursement:

8.2.3 As a condition precedent to the disbursement of loan and grant resources, the Borrower/Donnee should, in addition to the entry into force of the loan agreement and the grant memorandum of understanding:

(i) provide the Fund with evidence of the continuation of BEPE as the project executing agency (paragraph 5.1.2);

(ii) provide the Fund with evidence of the effective setting up of the Schools Medical Care Office by the deployment of required personnel to this office and by putting at its disposal office space deemed adequate by the Fund (paragraph 4.5.18);

(iii) provide the Fund with evidence that the land required for the construction of the middle school at Balbala, has been assigned to the project (paragraph 4.5.4);

(iv) provide the Fund with evidence of opening in the project’s name of three accounts indicated as follows: the first in a commercial bank considered acceptable by the ADF and meant to receive the loan resources; the second in a commercial bank considered acceptable by the ADF and meant to receive the grant resources; and the third at the Central Bank of Djibouti to receive local counterpart funds (paragraph 5.5.1); and

(v) undertake to associate two representatives of parents’ associations and two representatives of basic education teachers in the project steering committee (paragraph 5.2.2).

C. Other conditions:

In addition, the Borrower/Donnee shall:

(i) forward to the Fund, three months after the entry into force of the loan agreement and the grant memorandum of understanding, a long-term strategy and a detail action plan for the maintenance of the school infrastructure and equipment (paragraph 4.5.7);

(ii) forward to the Fund, at the school opening following completion of construction works of the middle school at Balbala and the expansion of Industrial and Commercial High School, the list of teachers deployed to these institutions (paragraph 4.5.7);

(iii) provide the Fund, three months after the entry into force of the loan agreement and the grant memorandum of understanding, the detail training programmes to be implemented within the framework of the project (paragraph 4.5.14); and

(iv) adopt, at the school opening following completion of construction works of the middle school at Balbala and expansion of the Industrial and Commercial High School, an upkeep and maintenance budget for the infrastructure, set at 2% of total investment costs and for the school equipment estimated at 5% of total investment costs (paragraph 6.2.4).

ANNEX 1 Page 1/1

ADMINISTRATIVE MAP OF DJIBOUTI

LEGEND

National Borders Departmental Borders Lake

This map was provided by the African Development Bank exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of a territory nor any approval or acceptance of these borders.

ANNEX 2 Page 1/1

SUMMARY OF BANK GROUP’S ONGOING OPERATIONS IN DJIBOUTI (IN MILLIONS UA)

SECTORS AND SOURCE OF DATE OF DATE OF DATE OF DATE OF LAST NET DISBURSED UNDISBUR % OPERATIONS FUNDS APPROVAL SIGNATURE EFFECTIVE- DISBURSEMENT LOAN/GRANT AMOUNT ED DISBUR NESS AMOUNT AMOUNT SED

PUBLIC UTILITIES Study of Djibouti TAF 11/03/98 08/04/98 20/12/98 31/12/02 0.530 0.0 0.530 0.0 Sanitation Plan

SOCIAL Education II ADF 15/12/92 13/05/93 03/01/97 31/12/01 7.553 6.33 1.23 83.71 NTF 14/12/92 03/01/97 31/12/01 4.000 2.41 1.59 60.25 Social ADF 8/7/98 25/8/98 10/5/99 31/12/04 6.520 1.64 4.88 22.15 Development Fund Health 1 ADF 17/07/02 3.00 0.00 3.00 0.00 TAF 17/07/02 1.00 0.00 1.00 0.00 Support to the TAF 28/11/01 11/03/02 30/9/03 0.72 0.00 0.72 0.0 Development of Women

AGRICULTURE 27.28 19.55 3,73 62.0 AND RURAL DEVELOP- MENT

Integrated ADF 31/05/91 11/03/92 15/01/93 31/12/00 11.92 11.79 0.13 98.91 Fisheries Development Integrated ADF 31/07/01 1.50 Fisheries Development Study of National TAF 22/11/00 30/5/01 31/12/02 0.438 0 0.438 0 Fisheries Programme

TRANSPORT

Djibouti Bulk ADB 03/12/03 - - - 6.7 0,00 0.00 0.00 Terminal

MULTI- SECTOR Institutional TAF 28/11/01 11/03/02 31/12/05 1.18 0.15 1.03 12.71 Capacity Building Project for Good Governance Structural ADF 6/02/01 11/03/02 5/4/02 31/12/02 2.42 1.47 0.95 60.74 Adjustment Loan

ANNEX 3 Page1/2

SUMMARY OF OTHER DONOR OPERATIONS IN THE EDUCATION SECTOR

Implementation Partner Nature of Operations Financing Period IDA, World Bank Construction and equipment with furniture of 190 new classrooms Evolving Implementation Group and rehabilitation of 36 others for basic education as well as the Programme- started in May 2001 construction of ten additional classrooms for the CFPEN; training of lending (PPE): (50% disbursement) headteachers and teachers, support to the preparation of the new US$ 10 million curricula for basic education and the procurement of school textbooks; paying the salary of 230 contract teachers for 3 years; support to CRIPEN, to CSE, to the Planning department and to BEPE. Arab Fund for Construction of 27 new classrooms in primary schools, 2 USD 13 million Agreement signed in Socio-economic accommodation and 2 administrative blocks; 3 apprenticeship centres loan June 2001; Development for technical middle-school education; 2 high schools (a general commencement education high school in Djibouti and a multi-purpose high school in expected end 2003. Ali-Sabieh); furniture and equipment meant for these educational institutions; studies and supervision of construction works; support to teaching of the Arabic language. Saudi For basic education, construction of 24 new classrooms, 2 US$ 7 million loan Agreement signed in Development accommodation and 2 administrative blocks; expansion of middle June 2002; Fund schools in the 4 districts through the construction of 31 additional commencement classrooms; construction of 2 multi-purpose high schools; furniture expected end 2003. and equipment meant for these educational institutions; studies and supervision of construction works. Islamic For basic education, construction of a school with 18 classrooms, an US$ 4.75 millions Appraised in January Development administrative block, 5 accommodation blocks, 2 cantens and 2 loan 2002; Bank dormitories; premises for 2 inspectorates; apprenticeship centres for commencement technical middle-school education; furniture and equipment meant for expected in the 2nd these educational institutions; studies and supervision of construction semester of 2003. works. French In the Obock and Tadjourah districts: for basic education, 2.7 million Euro Project prepared and Development construction of 42 classrooms, 14 accommodation blocks, 13 canteens grant appraised in January Agency («Agence and 13 sanitation blocks; rehabilitation of 11 classrooms, 1 house and 2002; started in Française de 1 sanitation block; construction of an inspectorate; furniture and March 2003; développement” equipment meant for these educational institutions; studies and duration: 2 years. AFD) supervision of construction works. Government of Construction of 48 classrooms for basic education; construction of 2 US$ 17 million On-going Japan middle schools; furniture and equipment meant for these educational grant institutions; studies and supervision of construction works. UNICEF This financing concerns the 2002 Action Plan, the major objectives of Project amount: The current which are development activities and reduction of disparities. It US$ 176,750 disbursement rate comprises 5 sub-projects: support to the MENESUP in the stands at 61.5% of development of the concept of “school – children’s friend”; school the total project supplies; quality of basic education; establishment of a pilot system of amount. psychosocial simulation for young children; support to the development of pre-schools on the basis of community participation French Technical a) - PASDED Project (Support to the Djibouti Education Master Plan Project Amount: 7 Technical assistance Assistance Project): initial and continuous training of general middle and million Euro; in place since Mission secondary school teaching staff; training of teaching staff, inspectors, Grant: 7 million 09/2002; counsellors; preparation of reference materials, curricula, programmes Euro, including 6 project adopted by and textbooks adapted to current reforms of the education system. million as salaries the technical and expenses of the committee of the TA MAE

French Technical b) - PAFCAD Project (Djibouti Officials Training Support Project): Idem Idem Assistance BTS training in tertiary and industrial areas; training of teachers for Mission the middle and secondary schools; optimisation of administrative and pedagogic management of the PUD. French Technical C0 - PAFID Project (Training and Professional Integration Support Project amount: Idem Assistance Project): identification of training needs; support to training centres; 610,000 Euro; Mission passageways between training centres and the economic sector. grant component – 610,000 Euro

ANNEX 3 Page2/2

SUMMARY OF OTHER DONOR OPERATIONS IN THE EDUCATION SECTOR

Partner Implementation Financing (continued) Nature of Operations Period OPEC Fund Building the capacity of the National Printing office for the printing of US$ 4.5 million Ongoing school textbooks by re-equipping and rehabilitating it and providing it with training and assistance services; building the capacity of CRIPEN in the area of preparation of school textbooks and providing it with rooms, additional equipment and technical assistance services. USAID International Assistance for Education Development Project (AIDE- US$ 10 million Ongoing Djibouti): development of access to basic education; improving the quality of education and training; support to girls’ education. “Agence a) - First project: training of a team of producers of teaching aids and a Project Amount: Ongoing international de team of training engineers; control of the preparation of teaching 19,050 Euro; la francophonie” materials for distance learning; formulation of an open, flexible and (International distant training arrangement, which is suitable for artisans of the Francophone informal sector and the definition of the conditions for integration in the Agency) continuous training system; preparation of a training programme for distance learning; building the capacity of trainers of artisans and apprentices in Djibouti both at the technical and pedagogic levels; establishment of teaching materials for 20 technical training modules or functional literacy; training of Djibouti artisans; making the teaching documents produced available on the Internet. Agence b) - Second project: procurement of working materials required for the Project Amount: Ongoing international de technical and vocational training institutions (LEP in Ali-Sabieh and Euro: 45,300; la francophonie LIC in Djibouti), this project seeks to contribute to the improvement of the quality of training and to facilitate the effective imparting of the knowledge of trainers Agence c) - Third project: finances the preparation of a communication strategy Project Amount: Ongoing international de for the enhancement of access and equity DJF: 4,671,000 la francophonie Agence d) - Fourth project: Pedagogic study on the rationalisation of the Project Amount: Ongoing international de vocational map. This project, entrusted to CRIPEN consisted of DJF: 5,551,200 la francophonie conducting a survey (October–November 2001) among public and private employers and civil society representatives. This study should facilitate the definition of training courses suitable for each area.

ANNEX 4 Page 1/1

SUMMARY OF SOCIO-ENVIRONMENTAL ARRANGEMENTS OF THE PROJECT a) Project Description and Major Socio-Environmental Components

To increase and enhance access to middle schooling, the project envisages, among other activities, the construction and equipment of a middle school as well as the construction of latrines and water points. b) Major Socio-Environmental Impact

The project is classified in the environment category II, given that its environmental impact is minimal. c) Protection Programme and Mitigation Measures

The departments of MENESUP and the Ministry of Housing, Town Planning, the Environment and Land Development envisage the following measures: (i) as part of the offers of architects and engineers, evaluate the environmental concepts proposed in relation to the development and operation of infrastructure; (ii) prescribe in the specifications of construction works of the infrastructure to be developed, a durable construction technology and compulsory mitigation or optimisation measures to be taken into account by companies. d) Monitoring Programme and Complementary Initiatives

The BEPE and the Directorate of the Environment (Ministry of Housing, Town Planning, the Environment and Land Development) will be charged with environmental monitoring. They would supervise the design and implementation in order to avoid the felling of trees and destruction of the natural resources of the site, the choice of local construction materials as well as the appropriate and durable technology, to avoid any long-term environmental degradation. e) Institutional Arrangements and Capacity Building

The target school population will be provided with equipment that respects the environment. Special arrangements will be envisaged to mitigate any eventual negative environmental impact. The training component will include the sensitisation of the youths, women, teachers and parents on the need to protect the environment (local hygiene, cleansing, energy saving, processing of waste, fight against environmental destruction). f) Public Consultations and Access to Information

The Parents’ Association (APE) is the channel of communication and collaboration between the school and the community. The APE is actively involved in training and sensitisation in the area of school health, hygiene and environmental protection. The APE will include partners from civil society other than the parents in order to broaden the representation base of the community and to contribute to the sustainability of social participation. g) Implementation Timetable and Reports

Environmental monitoring will be on a permanent and continuous basis, given that it is an integral part of the implementation of the project. Quarterly reports on the activities of BEPE and project supervision reports will be produced in line with the project implementation schedule.

ANNEX 5 Page 1/1

ORGANISATION CHART OF MENESUP

ANNEX 6

PROJECTED IMPLEMENTATION SCHEDULE BY COMPONENT

ANNEX 7 Page 1/1

LISTOF GOODS AND SERVICES UNDER THE PROJECT

Sources of Financing ADF LOAN GRANT Govt Total Expenditure Categories F.E. L.C. Total F.E. L.C. Total L.C. F.E. L.C. Total %

A Goods BC 0.44 0.56 0.99 0.00 0.02 0.02 0.00 0.44 0.58 1.02 Cont 0.03 0.03 0.06 0.00 0.00 0.00 0.00 0.03 0.03 0.06 Pr. Esc. 0.03 0.04 0.07 0.00 0.00 0.00 0.00 0.03 0.04 0.07 TC 0.49 0.63 1.13 98% 0.00 0.02 0.02 2% 0.00 0% 0.49 0.66 1.15 20.7% % 44% 63% 100% 0% 100% 100% 43% 57% 100%

B Works BC 1.83 0.08 1.91 0.00 0.00 0.00 0.39 1.83 0.48 2.30 Cont 0.11 0.00 0.11 0.00 0.00 0.00 0.02 0.11 0.03 0.14 Pr. Esc. 0.12 0.01 0.12 0.00 0.00 0.00 0.12 0.12 0.13 0.24 TC 2.05 0.09 2.15 80% 0.00 0.00 0..0 0% 0.54 20% 2.05 0.63 2.68 48.2% 96% 9% 100% 0% 0% 0% 77% 24% 100%

C Services BC 0.48 0.60 1.08 0.12 0.19 0.31 0.02 0.61 0.81 1.41 Cont 0.03 0.04 0.06 0.01 0.01 0.02 0.00 0.04 0.05 0.08 Pr. Esc. 0.02 0.03 0.05 0.00 0.01 0.01 0.00 0.02 0.04 0.06 TC 0.53 0.66 1.19 76% 0.13 0.21 0.35 22% 0.02 2% 0.66 0.90 1.56 28.0% 44% 66% 100% 39% 61% 100% 43% 57% 100%

D Operation BC 0.02 0.13 0.15 0.00 0.00 0.00 0.00 0.02 0.13 0.15 Cont 0.00 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.01 0.01 Pr. Esc. 0.00 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.01 0.01 TC 0.03 0.14 0.17 100% 0.00 0.00 0.00 0% 0.00 0% 0.03 0.14 0.17 3.1% 16% 14% 100% 0% 0% 0% 16% 84% 100% Esc.

Total BC 2.77 1.37 4.14 0.12 0.21 0.34 0.42 2.89 2.00 4.89 Cont 0.16 0.08 0.25 0.01 0.01 0.02 0.02 0.17 0.12 0.29 Pr. Esc. 0.17 0.09 0.25 0.00 0.01 0,01 0.12 0.17 0.22 0.39 100.0 TC 3.10 1.54 4.63 83% 0.13 0.23 0.37 7% 0.56 10% 3.23 2.33 5.56 % 67% 33% 100% 37% 63% 100% 58% 42% 100%

BC: Base Cost Cont.: Contingencies Pr. Esc.: Price Escalation. TC: Total Cost

ANNEX 8 Page 1/1

TABLE OF CONTENTS OF PROJECT IMPLEMENTATION DOCUMENT

1. Administrative Map of Djibouti

2. Organisation Chart of MENESUP

3. Education Data

4. Ongoing or Projected Partner Operations

5. Example of Modules Based on Reproductive Health

6. Project Implementation Schedule

7. Detailed Project Costs

8. Provisional List of Goods and Services

9. Recurrent Expenditure of the Project

10. Standard ADF Forms and Documents

11. Terms of Reference of BEPE

12. Terms of Reference of Specialists

13. Terms of Reference of Monitoring and Evaluation Specialist; of the Procurement Specialist and the Accounting Assistant.

ANNEX 9 Page 1/3 SUMMARY OF PROJECT COSTS

ANNEX 9 Page 2/3

SUMMARY OF PROJECT COSTS

ANNEX 9 Page 3/3

SUMMARY OF PROJECT COSTS

ANNEX 10 Page 1/1

SUMMARY OF GRANT COSTS

ANNEX 11 Page 1/1

PROJECT APPRAISAL REPORT PREPARATION STAGES

MAJOR ACTIVITES IMPLEMENTATION OBSERVATIONS DATES Receipt of request from Government for the December 2001 Programming of the project financing of the project. identification mission. Project identification mission. Feb/March 2002 Consideration of the outcome of Consultation of the population, opinion consultations in the formulation leaders, parliamentarians, civil-society of the project. organisations, development partners and administrative authorities on the project. Project preparation mission. Continuation of April 2003 Consideration of the outcome of consultations began during identification consultations in the preparation of mission. the project. Project appraisal mission. Continuation of July 2003 Detailed project appraisal consultations conducted during the preparatory mission. Preparation of the back-to-office report and July/August 2003 The required documents are appraisal report. prepared within the set deadlines.

The report was reviewed by various working August 2003 groups, finalised and distributed; but since Djibouti was under sanctions, the negotiations were postponed. Negotiations with the Djibouti authorities, December 2003 Djibouti delegation accepts loan after the lifting of sanctions. and grant conditions. CSP on Djibouti is presented to the Board, but January 2004 In the absence of the approval of was not approved. the CSP, project approval date is differed. Appraisal report updating mission. March/April 2004. Recent developments in the Consultations in Djibouti as in previous education sector since the July missions. 2003 appraisal require an updating of the report. Preparation of Back-to-Office report and April 2004. Necessary documents prepared Appraisal Report within the set deadlines.

Meeting of internal working group to review 22 April 2004 Observations of internal working Project Appraisal Report. group were taken into account to edit the report before its review by the interdepartmental working group. Review of Project Appraisal Report by 30 April 2004 Observations of interdepartmental interdepartmental working group. working group were taken into account in amending the report for its presentation to the High Level management Committee. Meeting of High Level Management 10 May 2004 Comments of the meeting were Committee. taken into account for the finalisation of the project appraisal report. Negotiations with Djibouti. End May 2004 Expected date. Probable date of Board presentation. June/July 2004 Subject to approval of Djibouti CSP.