Completion Report

Project Number: 29288 Loan Number: 1621 July 2008

Lao People’s Democratic Republic: Basic Education (Girls) Project

CURRENCY EQUIVALENTS

Currency Unit – kip (KN)

At Appraisal At Project Completion 30 April 1998 31 July 2007 KN1.00 = $0.000419 $0.000104 $1.00 = KN2,383.50 KN9,550

ABBREVIATIONS

CCED – committee for community education and development DEB – district education bureau DNFE – Department of Non-Formal Education EA – executing agency EMIS – education management information system EQIP – Education Quality Improvement Project GDP – gross domestic product GEMEU – Gender and Ethnic Minorities Education Unit Lao PDR – Lao People’s Democratic Republic MOE – Ministry of Education NGO – nongovernment organization NRIES – National Research Institute for Educational Science PES – provincial education service PWG – project working group RRP – report and recommendation of the President TA – technical assistance TTC – teacher training center

NOTES (i) The fiscal year (FY) of the Government ends on 30 September. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2008 ends on 30 September 2008. (ii) In this report, “$” refers to US dollars

Vice President C. Lawrence Greenwood, Jr. Operations 2 Director General A. Thapan, Southeast Asia Department (SERD) Director G.H. Kim, Lao Resident Mission (LRM), SERD

Team leader K. Chanthy, Senior Project Implementation Officer, LRM, SERD Team member S. Souannavong, Assistant Project Analyst, LRM, SERD

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CONTENTS

Page

BASIC DATA i I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 4 C. Project Costs 7 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 7 G. Conditions and Covenants 8 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 9 J. Performance of the Borrower and the Executing Agency 9 K. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 13 D. Preliminary Assessment of Sustainability 13 E. Impact 14 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 15 C. Recommendations 16 APPENDIXES

1. Project Framework 2. Actual Enrolment Under the Project Schools 2 a. Table 1: Actual National Enrollment for Basic Education by Province Table 2: Actual National Enrollment for Secondary Education by Province 3. Government Expenditure on Primary and Secondary Education by Year (2002–2008) 4. Project Schools by District and Province 5. Appraisal and Actual Project Costs 6. Project Loan Disbursement 7. Compliance with Project Covenants 8. Details of Specialist and Consultant Utilization 9. Details of Civil Works 10. Details of Staff Development 11. Details of Project Equipment

BASIC DATA

A. Loan Identification

1. Country Lao People’s Democratic Republic 2. Loan Number 1621 3. Project Title Basic Education (Girls) Project 4. Borrower Ministry of Finance 5. Executing Agency Ministry of Education 6. Amount of Loan SDR14,898,000 7. Project Completion Report PCR:LAO 1040 Number

B. Loan Data 1. Appraisal – Date Started 16 March 1998 – Date Completed 2 April 1998

2. Loan Negotiations – Date Started 20 May 1998 – Date Completed 22 May 1998

3. Date of Board Approval 25 June 1998

4. Date of Loan Agreement 15 December 1998

5. Date of Loan Effectiveness – In Loan Agreement 31 May 1999 – Actual 31 May 1999 – Number of Extensions None

6. Closing Date – In Loan Agreement 31 July 2005 – Actual 28 January 2008 – Number of Extensions 1

7. Terms of Loan – Interest Rate 1% per annum – Maturity (number of years) 40 years – Grace Period (number of years) 10 years

8. Terms of Relending (if any) None – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second Step Borrower

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9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval

20 January 2000 9 October 2007 7.7 years

Effective Date Original Closing Date Time Interval

31 May 1999 31 July 2005 6.2 years

b. Amount ($) Last Net Category or Subloan Original Revised Amount Amount Amount Undisbursed Allocation Allocation Canceled Available Disbursed Balance Civil Works 8,203,787 9,645,325 187,708 9,458,617 9,458,617 0 Equipment and Furniture 3,135,312 2,517,883 86,432 2,431,451 2,431,451 0 Vehicles, Bicycles 408,201 475,614 9,778 466,162 466,162 0 Staff Development 418,429 1,884,775 147,038 1,737,737 1,737,737 0 Consulting Services 1,496,940 3,735,342 128,671 3,606,671 3,606,671 0 Learning Materials 518,238 1,929,353 70,277 1,859,076 1,859,076 0 Project Implementation 84,845 304,759 17,454 287,305 287,305 0 operation & maintenance Studies 562,611 292,322 7,165 285,157 285,157 0 Unallocated 4,482,553 10,255 10,255 0.000 0.000 0 Service Charge 689,084 782,606 309,351 473,255 473,255 0 Total 20,000,000 21,578,234 974,129 20,605,431 20,605,431 0

10. Local Costs (Financed) - Amount ($ million) 10.7 - Percent of Local Costs 32.0 - Percent of Total Cost 61.0

C. Project Data

1. Project Cost ($ million)

Cost Appraisal Estimate Actual

Foreign Exchange Cost 10.8 11.9 Local Currency Cost 22.2 22.7 Total 33.0 34.6

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2. Financing Plan ($ million)

Cost Appraisal Estimate Actual Implementation Costs Borrower/Community Financed 8.7 9.0 ADB Financed 20.0 20.6 AusAID 4.3 5.0 Total 33.0 34.6 IDC Costs Borrower Financed ADB Financed Other External Financing Total ADB = Asian Development Bank, IDC = interest during construction.

3. Cost Breakdown by Project Component ($) Component Appraisal Estimate Actual Civil Works 8,203,787 9,458,617 Equipment and Furniture 3,135,312 2,431,451 Vehicles, Bicycles 408,201 466,162 Staff Development 418,429 1,737,737 Consulting Services 1,496,940 3,606,671 Learning Materials 518,238 1,859,076 Project Implementation operation & maintenance 84,845 287,305 Studies 562,611 285,157 Unallocated 4,482,553 0 Service Charge 689,084 473,255 Total 20,000,000 20,605,431

4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Q2 1999 Q2 2000 Completion of Engineering Designs Q3 1999 Q4 2000 Civil Works Contract Q4 1999 Q3 2000 Date of Award Q4 1999 Q4 2000 Completion of Work Q2 2004 Q2 2007 Equipment and Supplies Q3 1999 Q4 2001 Dates First Procurement Q3 1999 Q4 2001 Last Procurement Q4 1999 Q1 2007 Completion of Equipment Installation Q4 1999 Q2 2002 Start of Operations Q1 2000 Q2 2000 Completion of Tests and Commissioning Q1 2000 Q2 2000 Beginning of Start-Up Q1 2000 Q2 2000 Other Milestones Q = quarter

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5. Project Performance Report Ratings Ratings

Development Implementation Implementation Period Objectives Progress From 1 February to 31 December 2000 Satisfactory Satisfactory From 1 January to 31 December 2001 Satisfactory Satisfactory From 1 January to 31 December 2002 Satisfactory Satisfactory From 1 January to 31 December 2003 Satisfactory Satisfactory From 1 January to 31 December 2004 Satisfactory Satisfactory From 1 January to 31 December 2005 Satisfactory Satisfactory From 1 January to 31 December 2006 Satisfactory Satisfactory From 1 January to 31 July 2007 Satisfactory Satisfactory

D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members

Inception Mission 22–25 Mar 1999 2 4 g, k Special Loan Administration 29 Nov–2 Dec 1999 2 4 g, k Loan Review 28 May–1 Jun 2000 1 5 g Loan Review 4–7 Dec 2000 1 4 g Loan Review 13–18 May 2001 1 6 g Loan Review 10–16 Nov 2001 1 7 g Midterm Review 12–23 Aug 2002 2 20 g. k Loan Review 27 Jan–6 Feb 2004 1 22 g Loan Review 4–9 Oct 2004 2 10 g, h Loan Review 21 Mar–1 Apr 2005 2 16 g, h Loan Review 20–28 Apr 2006 2 18 h, k Loan Review 14–17 Nov 2006 2 8 h, k Special Loan Administration 3 Mar 2007 1 6 h Loan Review 23–28 Apr 2007 1 6 h, PCR Mission 6–14 Mar 2008 3 8 h, k

PCR = project completion report, a- engineer, b-financial analyst, c-counsel, d-economist, e-procurement specialist, f- control officer, g- programs officer, h-project officer, i-project implementation officer, j-natural resource specialist, k- project analyst

102 o 00'E 106 o 00'E

PEOPLE'S REPUBLIC OF CHINA Gnot-Ou LAO PEOPLE'S DEMOCRATIC REPUBLIC BASIC EDUCATION (GIRLS) PROJECT Phongsali (as completed) Boun Nua PHONGSALI Samphan R Sing Boun Tai A er Mai M iv N R g Louang-Namtha A n Namo Khoa Y ko Long M e M LOUANG-NAMTHA La Xiangkho Meung Xai Nambak BOKEO Viangphoukha Ngoy Sopbao Tonpheung Nale OUDOMXAI Viangkham Xam-Nua Houayxay Beng LOUANGPHRABANG Viengxai Pha-Oudom Nga Houa-Muang Pakxeng HOUAPHAN 20 o 00'N Houn Pak-Ou Viengthong 20 o 00'N Chomphet Phonxai Paktha Pakbeng Et Xam-Tai Louangphrabang Xianghon Xiang-Ngeun Kham Khop Hongsa Ngeun Phoukout Phoukhoun Pek Nonghet Xaignabouli Nan Phaxai Khoun VIET NAM Kasi Phiang Mok-Mai VIENTIANE XIANGKHOUANG Xaisomboun Thathom Gulf of Tonkin XAIGNABOULI Vangviang Met Keo-Oudom BOLIKHAMXAY Fuang Hom Borikhan Hinheup Viangthong Thongmixai Phonhong Thaphabat Pakxan Thoulakhom Sangthong Pakkading Khamkeut Paklay Naxaythong Mai Pak-Ngum Xaithani VIENTIANE Chanthabouri Sikhottabong Hatxayfong Xaisettha Hinboun Nakay Xanakham Sisattanak VIENTIANE M Boten e KHAMMOUAN Kenthao MUNICIPAL ko ng Gnommalat R iv er Boualapha THAILAND Thakhek Mahaxai Xebangfai Xaibouathong Nongbok Atsaphon Vilabouri Xaibouri Outhoumphon Atsaphangthong Xepon N Phalanxai Champhon Kaysonphomvihan Xonbouri Phin Nong SAVANNAKHET 0 50 100 Xaiphouthong Songkhon Samouay o Kilometers Thapangthong Ta-Oy o 16 00'N Toumlan 16 00'N Lakhonpheng Phase I District Vapi Salavan Kalum Phase II District Khongxedon SALAVAN XEKONG Primary Teacher Training School Thateng Xanasomboun Lao-Ngam Lamam Dakchung Teacher Training College Bachiangchareunsouk Sanxai National Capital Pakxe Pakxong Phonthong Provincial Capital Xaisettha Pathoumphon Samakkhixai City/Town Champasak District Boundary Soukhouma Sanamxai ATTAPU CHAMPASAK Provincial Boundary Phouvong

International Boundary Mounlapamok Boundaries are not necessarily authoritative. Khong

CAMBODIA

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08-1018 EG

I. PROJECT DESCRIPTION

1. The Government of the Lao People’s Democratic Republic (Lao PDR) has followed a program of socioeconomic reform, including increased investment in human resources development, dating back to the 1990s. 1 The Asian Development Bank (ADB) undertook an education sector review in 1989, and its major findings featured in a review of Lao PDR education in 1993.2 In this period ADB also assisted the Government with the preparation of projects in support of the sector, including the first Education Quality Improvement Project (EQIP 1)3 that raised the capacity of the Ministry of Education (MOE) to prepare policies and for forward planning. In 1996, an ADB-funded regional study on Education of Women in Asia4 highlighted the lack of educational opportunities for girls in the Lao PDR. As a result of these findings the Government requested project preparatory technical assistance (TA) for the Basic Education (Girls) Project,5 with the development objective of bringing more women into the socioeconomic mainstream by progressively improving their educational levels.

2. The Basic Education (Girls) Project was approved on 25 June 1998 for SDR14,898,000 ($20 million equivalent) and became effective on 31 May 1999. The project’s immediate objective was to expand access to primary education for girls in ethnic areas6 by (i) providing primary educational facilities in 50 districts and strengthening the capacity at central and provincial levels to plan, manage, and implement school construction and associated development programs; and (ii) promoting community participation in school management so as to increase enrollment and retention of pupils. To address these objectives, a wide-ranging but comprehensive project was designed to be implemented in two 3-year phases. The scope of the project comprised three main components.

3. Component 1. The expanded access and improved retention component was designed to address the issues caused by the remote location of many rural ethic groups. Eighty six percent of the population was engaged in rural subsistence farming, but with 40% of all rural roads impassable during the rainy season, many villages remained isolated for up to 4 months every year. Many villages had no local primary schools and ethnic people living in the remoter, often mountainous areas were the most deprived. Girls in particular suffered from being denied local access to primary education, resulting in female literacy rates of only 8% among ethnic groups such as the Akha and Hmong and compared to a national literacy rate of 43%. Through services from local contractors, the Project would construct and equip with furniture and basic teaching aids a total of 375 new multigrade primary schools and 50 complete five-classroom schools, and construct 50 district education bureaus (DEBs). Working through the Gender and Ethnic Minorities Education Unit (GEMEU), the Department of Non-Formal Education (DNFE), and the Lao Women’s Union, the Project would mobilize village-based committees for community education and development (CCEDs) which would prepare action plans, assist contractors with construction, and assume subsequent responsibility for maintenance of project schools. Targeted assistance to poorer community families would also be provided through allocated project funds, managed

1 Ministry of Education. 2000. Lao PDR Education Development Plan 1996–2000. Vientiane 2 ADB. 1993. Lao People’s Democratic Republic - Education in Asia and Pacific Series. Vol.1. Manila. 3 ADB. 1991. Report and Recommendation of the President to the Board Directors to Lao People’s Democratic Republic for the First Education Quality Improvement Project. Manila. Loan No. 1103-LAO(SF) for $13.3 million, approved 26 September 1991 4 ADB. 1992. Technical Assistance to Asia for the Education of Women in Asia. Manila TA No. 5513 REG, approved 04 December 1992 for $500.000 5 ADB. 1996. Technical Assistance to the Lao people’s Democratic Republic for the Women’s Education Project. Manila TA No 2554, approved 23 April 1996 for $$380,000 6 Boys would also benefit from the provisions of the Basic Education (Girls) Project.

2 locally by community leaders and appointed CCEDs to provide clothes, shoes, pens, and notebooks to needy children.

4. Component 2. The improved relevance, quality, and efficiency component had four subcomponents. New curricula would be adapted to facilitate multigrade teaching in two-classroom schools, provide support to the teaching of Lao language, and introduce materials designed to meet the needs of local life-skills in participating communities, with the particular needs of female students in mind. Support for teachers and school principals would be provided through in-service training opportunities aimed at improving knowledge and pedagogical skills of approximately 4,000 staff. To this end, 50 additional teacher training advisers would be prepared to deliver in-service training and support to teachers in the schools where they worked. Pre-service teacher training, in particular the recruitment and preparation of 300 teachers (mainly women from ethnic communities), would be undertaken at three selected teacher training centers (TTCs) previously supported by EQIP 1. Following consultation and agreement between the Government, ADB, and AusAID at the time of appraisal, component 2 was financed by AusAID.

5. Component 3. The strengthened management systems component had two subcomponents. The first was intended to improve the MOE’s educational management information system (EMIS), and the second would provide administrative and management support at national, provincial, and district levels through training and supportive hardware. Additional inputs would also introduce best practices through programs of in-house training. The updated project framework is shown in Appendix 1.

II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation

6. At appraisal the design of the Basic Education (Girls) Project proved relevant to the objectives of the Government’s 5-year development plans for 1995–1999 and 2000–2004, which stressed the importance of developing human resources, particularly those in rural areas. It also supported MOE's Education Strategic Vision7 which identified the importance of access, quality, and relevance, emphasizing the need to invest in increased access to education in rural and ethnic areas, raise enrolment rates for girls, and construct rural primary schools. The project design also supported ADB’s Country Assistance Plan in 1989 8 which highlighted the importance of (i) developing rural infrastructure, particularly targeting interventions at the poorest areas; and (ii) developing basic education and promoting gender equity in educational opportunities. There are more than 49 official ethnic groups in the Lao PDR, many living in the remoter rural and often mountainous areas. The original project design foresaw interventions in ethnic communities across all 18 provinces nationwide, but after lengthy negotiations at project start-up, this approach was found to be logistically and administratively difficult to implement. In addition to the problems associated with difficult terrain, poor access roads, and inadequate telecommunications links, the initial implementation was designed for provincial and district levels but no allowance was made for local officials who had no experience of project implementation, no knowledge of ADB guidelines, or had little or no English language facility, while no pre-project training was available. Recognizing that operational and transportation costs would absorb a major portion of project funds, agreement was reached by the Government, ADB, and AusAID that project interventions would be limited to the 11 provinces and 52 districts showing the highest incidence of poverty, the largest ethnic populations, and the lowest female enrolments. In this way the Project was able to stay within its original budget but still deliver the same number of new schools (see also paras. 10 and 44).

7 Ministry of Education. 2000. Education Strategic Vision up to the year 2020.Vientiane. 8 ADB. 1989. Country Assistance Plan 1989- 1994 for the Lao People’s Democratic Republic. Manila.

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7. In particular, the Project supported the MOE’s target of universal admission to primary schools by 2010 and the conversion of all incomplete schools into multigrade or single-grade schools with a minimum of one school for every two villages. A total of 512 schools were completed by the Project (20.5% above appraisal targets), adding more than 47,000 pupils to the basic education system during the project period and accounting for 22% of the overall increase in primary school enrolments 9 (see Appendix 2 for actual enrollment under project schools, and Appendix 2a. Table 1: actual national enrollment for basic education by province, and Table 2: actual national enrollment for secondary education by province, including the national rise in numbers of female students at all levels of the education system). Under AusAID funding and development of curricula, the development and in-service teacher upgrading envisaged in component 2 was accomplished. The need for more comprehensive practical micro-teaching techniques in local model schools to supplement provisions for pre-service teacher preparation was not foreseen in the project design. Additional project funds were required for additional support to the three selected TTCs to provide further inputs for the preparation of ethnic teachers. Additional project funds were also required to provide project schools with core textbooks and teaching guides in addition to the project-designed texts and learning materials. The project assisted the MOE with the more effective management of its budget for basic educational services, particularly those handled by the provincial education service (PES) and DEB (see Appendix 3 for details of Government expenditure on primary education). Government policy to introduce decentralization of all management functions in 2000 coincided with the start of the project, but difficulties were encountered by this change of culture. The project design underestimated the problems of introducing decentralized management and delivery at a time when communications and logistics within many of the poorest areas of the country were undeveloped. Roads to some project sites were either nonexistent or impassable during the long rainy season. These problems were compounded by an initial lack of English language facility at all levels of the project and slow communications with ADB due to initial low levels of telecommunications technology.

8. The project design contained important features to improve school access, promote community involvement, and raise the quality of primary school curricula. The promotion of community involvement in clearing construction sites, conveying building materials, monitoring the progress of contractors, and subsequent maintenance of school facilities were innovative concepts. So too were the development and introduction of relevant local life-skills into the school curriculum, and the targeted support for disadvantaged community families through the disbursement of funds provided under the project. These activities also supported the Government’s decentralization and community development policies. Problems were encountered with disbursement of funds for these purposes, due to an absence of local banking services and accounting procedures. These problems took time to overcome.

9. Gathering demographic data required for identifying school sites and determining classroom numbers was the responsibility of provincial and district offices and village CCEDs. Data was acquired, in often difficult conditions, but with little or no training on data analysis the significance of rising birth rates and numbers of pre-school children in a given community was not recognized, resulting in subsequent overcrowding in some schools. Objectively verifiable indicators for assessing project progress, quantifying changes in enrolment, or gauging success of certain components—such as policy support, management, and capacity building—were not identified in the project’s design and monitoring framework. Benefit monitoring and evaluation were also not included. This makes it difficult to assess project efficiency and effectiveness. Evidence shows

9 MOE maintained a running total of project school enrollments, but in the absence of an operational education management information system (EMIS), details of individual school enrollments were assumed into overall provincial totals.

4 that assumptions on the continued extent of community and MOE support were valid, and while the identified risk posed by construction in remote mountainous areas did cause delays, it did not reduce the overall number of schools built by the project, although it did extend the time required for completion. Other risks concerning the sustainability of the project and the continued competence and retention of ethnic teachers were resolved by the comprehensive design of the project which covered both supply and demand sides of primary education in general, and the servicing of remote ethnic people in particular.

B. Project Outputs

1. Expanded Access and Improved Retention

10. Physical Access. The Project was scheduled to support construction of an estimated 375 new multigrade primary schools, and although this was exceeded by 21% and 455 schools were constructed, the project restricted its operations to 11 instead of 18 provinces (para. 6). The project’s target of 50 complete five-classroom schools was also exceeded by 14%, with 57 schools constructed. Only 43 DEB offices were constructed from a target of 50, the remaining seven being completed under alternative donor finance. DEB offices were provided with furniture and equipment, including one computer per office. The design of buildings and supply of furniture matched local needs, although more than one computer and printer is now required in those offices where electricity supplies are not subject to interruptions.

11. A simple standardized school design, based on a concrete footing with treated wooden walls and a composite-material ridged roof was prepared by the project and could be extended to accommodate either two or three classrooms in multigrade schools with a central teachers’ room and store, or complete five-classroom schools. Sites were to be donated or otherwise provided by each selected village community. There were delays in commencing construction of schools due to the late recruitment of the international school architect and further lengthy delays were caused by poor or even nonexistent roads to many project sites, compounded by lengthy rainy seasons. Initial communications between the project coordination unit and ADB also proved difficult due in part to slow telecommunications links and language problems. Communities cleared and fenced sites and assisted local contractors to convey materials onto sites, sometimes overland for distances of over 20 km by foot. The appointment of local contractors generally worked well, except in the remotest areas where PES oversight capacity was at its lowest. The standard basic design for all schools proved successful with good natural ventilation and light. The use of only partially treated timber in some schools may prove problematic if additional anti-termite coatings are not applied periodically. Local construction and delivery of standard design hardwood furniture proved not to be a problem and quality improved as the MOE, PES, and DEB gained experience in quality control. Difficulties were encountered with the provision of water supplies and the school architect found 53% of water supplies not functioning in a 2004 survey of nine provinces. In response, the Project hired local specialist teams which visited problem sites and either improved existing systems or devised alternative solutions, including covered rainwater storage tanks for hilltop locations and boreholes for lowland schools. For some communities, school water supplies are the only local water source, making it difficult to restrict supplies, even if this results in insufficient water for school toilets during the dry season. A list of Project schools by district and province is shown in Appendix 4.

12. Community Mobilization and Targeted Assistance. There were some initial delays in this innovative subcomponent caused by the absence of district banking facilities. In addition to logistical problems of transferring and distributing cash, there were no procedures for tracking grant disbursement at this level, and it took time to develop mechanisms that were acceptable to the MOE, the Ministry of Finance, and ADB. In total, $580,100 was disbursed to 869 communities

5 in 11 provinces with between $150 and $250 allocated to each community to support needy, community-selected, family groups. Cooperation with GEMEU, DNFE, and Lao Women Union proved successful, particularly in the early process of creating community awareness prior to construction. Community involvement continued throughout the Project and evidence shows that many communities continued to provide financial support to needy families by creating their own CCED funds or alternative forms of practical support after the Project closed, showing that despite its slow uncertain start this subcomponent was successfully completed.

2. Improved Relevance, Quality, and Efficiency

13. Component 2 of the project was financed through AusAID as part of a parallel financing arrangement approved by the Government of the Lao PDR and ADB. Active coordination between component 2 and other project subcomponents meant that the project’s outputs were mostly delivered satisfactorily. Additional funds to support staff development and provide unforeseen support for project TTCs were met from ADB project funds. Approximately 3 weeks of overseas fellowships for 28 key officials took place at relevant Australian institutions under AusAID funding.

14. Supplementary Materials and Adapted Curricula. This subcomponent was successful, commencing with the National Research Institute for Educational Science (NRIES) undertaking a base-line survey of requirements for multigrade teaching, the teaching of Lao language, and relevant life-skills. The project did not specify the number of student learning materials or teacher guides required, so it was left to RIES to identify a requirement for 23 titles, including mathematics, which had been left out of the original project design. These new titles supplemented national core texts and were supposed to address gender and local concerns from an ethnic perspective. However, the list included several life-skill titles to cover subjects relevant to local community living. Observations from project schools indicate that wider coverage of issues such as health, sanitation, hygiene, raising of livestock and plants, cooking, and sewing should have been covered in more detail. All subjects are taught in every school, however subjects aimed at girls are largely dependent on the background of the individual teacher. MOE later admitted that there was a shortage of core textbooks and teacher guides, and requested ADB fund the printing and distribution of 630,000 textbooks, including those in support of the national curricula, extending coverage beyond the limit of project schools. ADB also financed reprinting of supplementary books as there were insufficient funds available under AusAID financing.

15. In-Service Support for Teachers and School Principals. This was a successful subcomponent in which two parallel programs offered in-service support for teacher-trainers, teachers, and principals in Project schools, as well as for teachers and principals in incomplete schools and multigrade schools within the Project’s 52 districts. All three pedagogical components were covered, including multigrade teaching, the teaching of Lao language, and delivery of life- skills. It was envisaged that 4,000 teachers and school principals would receive in-service training within the 11 project provinces. A total of 4,112 teachers and school principals (an increase of 2.8%) had participated in a series of 1-week programs by the end 2004, despite severe logistical problems caused by poor roads and intermittent communications. Late into the project ADB supported a 2-week program of refresher training on multigrade training, setting up one model multigrade primary school in each province which could be used as a demonstration center for the training and retraining of basic-education teachers. Post-project evidence shows that in-service teacher support is continuing.

16. Expanded Professional Supervision for Teachers. The project envisaged the preparation of a cadre of 50 master trainers and pedagogical advisers which would in turn prepare an unspecified number of itinerant in-service teacher-trainers capable of relaying pedagogical

6 inputs and technical advice on subjects specific to ethnic and gender issues within the project schools. There were delays of 2 years as integration of this subcomponent with subcomponent 2(a)—design and distribution of supporting textbooks—took place. Twenty six master trainers and pedagogical advisers from the Department of General Education and PES were prepared, and a total of 260 teacher-trainers from project districts received 4-week programs enabling them to operate within the existing integrated teacher support scheme operated by MOE though DEBs. The subcomponent was successful and is still continuing, although schools nearest DEB offices appear to get more frequent visits than those in remoter locations.

17. Training Teacher Educators and the Recruitment of Minority Teachers. The Project was designed to improve pre-service preparation of teachers at three TTCs previously rehabilitated by the ADB EQIP 1. In addition, 300 mostly female students from ethnic groups were to be recruited and given incentives such as scholarships, payment of dormitory fees, and additional tutoring if needed. On completion of their studies these students were to teach ethnic groups in project schools and were automatically promoted to become permanent teachers. An innovative approach was adopted, introducing a variety of mixed pre-service and in-service training programs to accommodate students with less than 8 years of schooling. A community-based semester was also included to encourage students to maintain contact with their ethnic roots. This very positive model proved to be quite expensive and may not be sustainable in the format utilized by the project, and changes have subsequently been introduced by MOE. A total of 486 (326 female) ethnic student teachers were financed by the project, an increase of 62% over appraisal. MOE records show no significant wastage in the supply of teachers and this component was therefore mostly successful.

3. Strengthened Management Systems and Capacity

18. Management Support Systems. The Project envisaged further development of MOE’s EMIS, based on developments previously introduced by the World Bank’s Education Development Program 110 and institutionalized by the Statistics and Planning Division within the Department of Planning and Cooperation. A pilot district-based program should have been operational in year 1 of the project, but EMIS implementation was delayed due to the promotion of two incompatible EMIS systems by separate donor-assisted projects, while MOE had yet to decide on a preferred uniform information technology approach. Although the project’s EMIS international consultant was fielded, further project expenditure on this component was halted in December 2005. Further development of the EMIS was paused because (i) MOE was waiting for the national information technology policy and direction to be approved by the prime minister's office, (ii) there was no consensus agreement on staff information formalized and installed in the EMIS, and (iii) MOE did not have qualified staff to manage the local area network system (LANs).

19. Education Management. This subcomponent successfully delivered capacity building across a range of core management skills to 1,014 school principals, and MOE, PES, and DEB staff. A review of job functions was completed and training given in five identified key areas including basic management and administration. The project supported 2 weeks of overseas training on management, EMIS, multigrade teaching, and monitoring and evaluation for MOE and provincial officials. Given the Government’s commitment to decentralization, combined with a need to oversee the project’s provincial and district activities, resources were never adequate to cover the scale of local management needed at PES, DEB, and school levels. Inputs in areas such as data analysis, strategic planning, budgeting, and basic project implementation and monitoring were

10 World Bank,1993. Staff Appraisal Report to the Lao People’s Democratic Republic for Education Development Program 1. Washington. Available: http://www.worldbank.org

7 not adequately covered at local levels. A total of 80 officials were given 2-week fellowship training in neighboring countries.

C. Project Costs

20. At appraisal the project cost was estimated at $33 million. ADB’s share was estimated at $20 million (61%), AusAID’s share at $4.3 million (13%), and the Government and community share at $8.7 million (26%). The actual project cost was $34.6 million, of which ADB financed $20.6 million (60%), AusAID financed $5.0 (14%), and the Government financed $9.0 million (26%). Of the total project costs of $20.6 million, civil works were $9.5 million, equipment and furniture was $ 2.4 million, vehicle costs were $0.5 million, the cost of learning materials including printing and distribution of textbooks and instructional materials was $1.9 million, staff development was $1.7 million, consulting services were $3.6 million, studies and project operation and maintenance was $0.5 million, and service charges were $0.5 million. Apart from the project cost, there were in-kind contributions including land acquisition and community support costs of $3.2 million. Detailed cost estimates at appraisal and the actual costs incurred are shown in Appendix 5.

D. Disbursements

21. Disbursements were a bit slower than anticipated due to lack of familiarity with ADB disbursement procedures and limited project accounting experience at both central and provincial levels. The consultants were recruited about 12 months after loan effectiveness; this delay resulted in the slower disbursements. An imprest account was opened under the project with Banque Pour Le Commerce Exterieur Lao in Vientiane. At loan closing on 28 January 2008, disbursements totaled $20.6 million, or 103% of the original loan amount of $20 million. While the imprest account system was adopted for most of the smaller items, payment of major contracts used direct payment from the loan account. The intended cumulative disbursement rate was for annual drawdowns from 2000 to 2007 of 8%, 11%, 16%, 43%, 56%, 75%, 84%, and 100% compared to the achieved disbursement rate of 4%, 8%,18%, 29%, 46%, 73%, 81%, and 100%. The summary of disbursement is shown in Appendix 6.

E. Project Schedule

22. The Project was approved on 25 June 1998 and the loan was declared effective on 31 May 1999. The project was originally intended for implementation over 5 years, but at the Government’s request it was extended for 2 years in July 2005 and closed on 28 January 2008. The extension reflects ADB’s constructive approach to the logistical problems faced including poor roads and difficult communications with many project sites, and the sheer scale and complexity of the overall project. Civil works activities and procurement slowed from the outset (paras. 10–11). Staff development and consulting services were also delayed, mainly due to changes in the implementation of component 1 as the project reduced the number of operational provinces (para. 6) and as the overall period of project delivery was extended. Component 2, funded by AusAID, also encountered delays caused by logistical and communication problems which slowed the process of moving around project sites and made the enrolment of participants for training programs difficult. Due to a conflict between alternative EMIS approaches using incompatible Lao fonts and a shortage of qualified staff to handle this activity project, inputs in subcomponent 3(a) were discontinued.

8

F. Implementation Arrangements

23. MOE adequately fulfilled its role as the Executing Agency (EA) as envisaged during appraisal, making use of its experience from previous ADB projects, particularly EQIP 1. The director of the Department of General Education chaired a project working group (PWG) that was responsible for overall supervision of project implementation. Detailed planning, monitoring, and coordination with provinces and districts were delegated to the project support unit (PSU), which comprised GEMEU staff with full support from local contractual staff. Disbursement and financial reporting were done by the Department of Finance. Engineers were also recruited as part of a local firm appointed to oversee and monitor progress with school construction. Day-to-day implementation was undertaken by relevant MOE departments and by the PES and DEBs. An existing project steering committee, chaired by the minister of the MOE, was tasked with coordinating activities with other Government departments.

24. Continuity of key officials at all levels of the EA helped to maintain overall effective project implementation, although initial problems with linguistics, logistics, communication, and unfamiliarity with ADB procedures caused delays in processing contracts and appointing consultants and contractors. Statements to ADB were often behind schedule, particularly in the early stages of the project, with frequent reminders required. International consultants from Sinclair Knight Merz, Australia were fielded for components 1 and 3 in the second quarter of 2000, approximately 12 months behind schedule, and the scheduled completion of this contract was extended from June 2005 to July 2007. The PWG proved to be an effective body and counterpart ownership of the project was evidenced throughout, and further extended through the involvement of the PES, DEBs, and the many CCEDs. Component 2, executed by AusAID, followed the same implementation process and reported favorably on its effectiveness.

G. Conditions and Covenants

25. Of the 39 identified loan covenants, 38 were complied with satisfactorily while only one covenant was partly complied with (para. 18). The latter relates to the installation of a functioning EMIS which was intended to provide effective data transfer from DEBs to the PES, and to provide the MOE with up-to-date information about the overall primary school system, including data about project schools. The failure to come to a timely agreement on a uniform EMIS approach meant little progress was made on this covenant, creating an unfortunate break in the flow of information. The appointment of a responsible project officer at the ADB Lao Resident Mission improved the process of compliance with many specific covenants. Through proactive administrative support from the MOE, PES, and DEBs, covenants relating to the numbers of schools to be constructed, the numbers of teachers to be recruited and/or retrained (particularly women from ethnic groups), the increased enrolment of girls, the active participation and continued support of local ethnic communities, and the provision of updated curriculum and support materials, were either met in full or exceeded. The report and recommendation of the President (RRP) failed to include a covenant specifying who should be responsible for providing core textbooks, as opposed to new project- designed texts, in all project schools and this oversight was not resolved until late in the project. Full details regarding compliance with project covenants are shown in Appendix 7.

H. Related Technical Assistance

26. Project preparatory TA 11 was completed in June 1997. It identified three key issues inhibiting the development of girls education: (i) lack of access to primary schooling, particularly for

11 ADB .1996. Technical Assistance to the Lao People’s Democratic Republic for the LAO: Women’s Education Project. Manila TA No. 2557, approved April 1996 for $380,000.

9 ethnic children in remote rural areas where families were unlikely to send girls for education outside their villages; (ii) shortcomings in current learning environments which lacked relevance to traditional village-based needs, difficulty in recruiting local people as village school teachers or retaining qualified teachers, poor quality teaching, lack of experience with multigraded classrooms resulting in an unwillingness to build or staff primary schools where there were low enrolments, and lack of good quality learning materials; and (iii) the need for greater community involvement at the village level so as to deliver support for local schools and provide assistance to those most in need. Subsequently all these issues were incorporated into the project design, the only variation being the reduced scope from 18 to 11 provinces and the involvement of AusAID in the delivery of component 2. No further TA was associated with the project.

I. Consultant Recruitment and Procurement

27. At appraisal, consulting services were estimated at 115 person-months of international consultants (46 person-months to be financed by ADB and 69 by AusAID) with a total of 141 person-months of national consultants (105 person-months financed by ADB and 36 by AusAID). For components 1 and 3, a total of seven international consultants were recruited between 1999 and 2005 from Sinclair Knight Merz, Australia for a total of 112.2 person-months in accordance with ADB's Guidelines on the Use of Consultants (1998 and 2002). The additional time was mainly due to extensions for the post of project planning, monitoring, and coordination (team leader) from 36 person-months to 70 person-months, the school architect from 3 person-months to 15.5 person- months, and the appointment of an accounting specialist to the newly created PSU. National consultants were utilized in the delivery of some management training programs. Under component 2, AusAID employed the services of a consulting firm (Illawarra Technology Corporation) which was responsible for fielding both international and national consultants in accordance with AusAID’s recruitment guidelines. An additional 327 person-months were also allocated for national contract staff to undertake materials design, writing, and validation, which appears to have worked well. Appendix 8 gives details of international and national consultancies at appraisal and actual.

28. A total of 162 civil works contracts were awarded through national competitive bidding for the construction of 455 multigrade schools, 57 complete five-classroom schools, and 43 DEB offices, and there were nine separate tenders for school and DEB office furniture in accordance with ADB’s Procurement Guidelines (2000, 2002 and 2005). Contracts were awarded in six phases. Despite lengthy delays due to logistical problems and problems arising from contractors from different provinces who were not always aware of local issues, combined with officials at MOE and PES who were unused to the scale and geographic scope of the project, only three contractors were disqualified and the contracts re-tendered. A separate contractor to design water supplies to project schools and a TTC was an additional unforeseen input at the time of project appraisal. Appendix 9 gives a detailed breakdown of civil works, Appendix 10 details staff development, and Appendix 11 details project equipment

J. Performance of Consultants, Contractors, and Suppliers

29. Consultants recruited for components 1 and 3 performed satisfactorily as reported in their Performance Evaluation Report. International consultants recruited by AusAID for component 2 were also deemed satisfactory. 12 However, unrelated to the consultants’ personal ability or performance, overall issues of linguistics, logistics, and a weakness in the provision of initial data analysis inhibited some aspects of the consultants’ delivery. The performance of civil works contractors was satisfactory in the prevailing logistical circumstances and so too was the

12 AusAID. 2007. Independent Completion Report, Laos-Australia Basic Education Project. August 2007

10 performance of local contractors for school and DEB furniture. Most of the books and visual materials supplied were of a particularly high standard and were highly relevant.

K. Performance of the Borrower and the Executing Agency

30. The performance of both the borrower and executing agency was satisfactory. The MOE was committed throughout the project, while the PWG provided strong, proactive management and guidance in all matters of practical project implementation. Setting up the PSU under the PWG proved most effective. Although delays were encountered as a result of difficult logistics, climate, and initial unfamiliarity with the size and scope of the project, these were eventually overcome. A stronger emphasis and improved preparation relating to data analysis and its significance to planning would have been beneficial.

L. Performance of the Asian Development Bank

31. The Government considered ADB’s performance satisfactory. Following initial delays and difficulties in establishing effective communications with ADB, delegation of project management to the ADB Lao Resident Mission proved effective. ADB fielded 11 review missions (122 staff-days) to monitor implementation throughout the project period. ADB extended the loan once in April 2005 following a request from the Government, based mostly on unavoidable lengthy implementation delays. The Government and the EA were appreciative of the fact that ADB recognized such problems and they maintained close relationships with ADB throughout implementation. However, ADB did not revise the project design and monitoring framework to reflect changes to project implementation and timing following the approval of an extension. The external issues affecting project implementation featured regularly in ADB mission reports and in the midterm review, and were the basis for agreeing to the project extension.

32. Project preparation missions and the project preparatory TA provided opportunities for an initial policy dialogue with the Government, which jointly identified the priority requirements of the primary education subsector and provided opportunities to explore ways of increasing the enrollment of rural girls from remotely located ethnic communities and the support needed by their local communities. Early attention, targeted at developing the capacity of MOE and provincial education staff to analyze and determine the significance of community demographic data, could have avoided the current problem of overcrowded classrooms in some schools by highlighting requirements for additional space during construction. In addition, ADB’s underestimation of local difficulties such as (i) lack of communications technology, (ii) remoteness and physical isolation of some sites due to poor infrastructure, (iii) the limited capacity of many provincial and district officials, and (iv) nonexistent district banking facilities, were all factors that contributed to delays in project implementation.

III. EVALUATION OF PERFORMANCE13

A. Relevance

33. The Project is assessed as highly relevant with respect to its development objective. Through the construction of 455 multigrade and 57 complete five-classroom schools and 43 DEB offices, together with development of curricula and teacher training, the project has added

13 For project loans, Operation Evaluation Department (OED) guidelines now use four core criteria for the rating of performance. For program loans, there are six criteria. A text section assessing the (i) contribution of program loans to institutional development, and (ii) program loan impact should be added following preliminary assessment of sustainability. See OED‘s Guidelines for Preparing Performance Evaluations Reports, available at http://www.adb.org/Documents/Guidelines/Evaluation/PPER-PSO/default.asp

11 significant capacity to the educational system and made substantial increases to overall enrolment within primary education. By targeting remote rural ethnic communities, the project has fulfilled its task of supporting the priorities of both the Government of the Lao PDR and the MOE by assisting in the development of basic education for girls, a process which will ultimately bring more women into the socioeconomic mainstream by progressively improving their educational levels. It has also helped MOE to move towards its Millennium Development Goals 14 and the targets set by its commitment to Education for All15.

B. Effectiveness in Achieving Outcome

34. The project was highly effective in achieving its outcome. Through the construction of additional primary schools in remote rural areas populated mainly by ethnic communities, and putting in place an effective support system, the project substantially increased the enrollment of girls by just over 22,000 over the project period. Records also show that an additional 25,000 boys were enrolled in project schools. The Project Survey 2006 (conducted in six project districts) showed that net enrollment for girls in project schools increased significantly from 66% in 2002 to 88% in 2006; net enrollment rates for boys rose from 67% to 87% in the same period. The survival ratio for grade 5 girls was 12% in 2003, but this had increased to 54% in 2006, while for boys the rate increased from 16% to 55% in the same period. The project developed more effective curricula to support the rural nature of the schools, and recruited, trained, and/or developed pedagogical and professional skills of teachers, school principals, and support staff. A total of 512 schools were constructed, an increase of approximately 20% over the target set at appraisal. Evidence shows that these were built with the full support of local communities which cleared sites, constructed perimeter fences, often carrying timber and other materials over long distances in difficult terrain, and who for the most part have continued to maintain the fabric of the schools because of their enthusiastic support for educational services in their villages. By setting up a targeted system of financial support to be administered by each community, the project made available a total of between $150 and $250 per community per year after school construction was completed, enabling children (particularly girls) from poorer families to attend school through the purchase of clothes, shoes, pens, and paper. Many communities are continuing to offer similar approaches after the closure of project funds, often using in-kind support rather than cash.

35. Evidence from the MOE16 shows that in the ethnic districts served by project schools, the average annual growth rate of enrollments for both girls and boys was 10.6% in the period 1999/2000–2006/0717, with the rise in girls’ enrollments reaching 6.8%. This compares with an overall average annual growth rate of only 2.2% (1.5% for girls) in Lao populated districts outside the project. Further MOE data shows the project facilitated an increased enrollment of approximately 22,000 girls, starting from a very low base-line in 1999/2000. Equally important is the data relating to survival through to grade 3 and grade 5. Between 2000 and 2007 approximately 17,000 additional girls stayed in project schools to make the transfer from grade 3 to grade 4, and an additional 5,000 girls made it through to the end of grade 5. It is significant that communities have seen the advantage of young girls acquiring literacy and numeracy skills and an understanding of Lao language and therefore wanting to keep their girls in school, despite pressing family commitments and previous obligations to assist with agricultural pursuits. Even transfer rates to lower secondary education appear to show a similar positive trend, although at a much reduced

14 United National Development Program (UNDP). 2002. United Nations Development Assistance Frame Work for Lao people’s Democratic Republic. Vientiane. 15 United Nations Educational, Scientific and Cultural organization (UNESCO). 2005. Education for all national plan of Action 2003-2015. Bangkok. 16 Ministry of Education. 2007. Project Completion Report, Basic Education (Girls) Project. Vientiane 17 Statistic from Ministry of Education. 2008. Statistics from Ministry of Education Bulletin. Vientiane.

12 scale because of the distances girls need to travel (in the absence of quality roads or transportation) to reach the relatively fewer secondary schools.

36. To support the school construction program the project planned an overhaul of primary curricula targeting the more effective use of multigrade classrooms, the teaching of Lao, and the development of a series of life-skills—which was meant to provide relevant teaching materials in support of locally used skills and stress the needs of young girls in particular. Twenty three curricula and supportive materials were developed, although only two texts targeted multigrade teaching, and only four were related to life-skills; Lao language had nine supportive texts and mathematics six. A small sample of schools visited indicate the success of teaching Lao as a second language because most ethnic children from grade 3 upwards were able to read, write, and speak Lao fluently. However, many teachers seemed to be uncertain of the potential significance of life-skills and appeared to be professionally unprepared to take a practical role in its teaching. Little thought seems to have been given to the specific needs of young girls in grade 5 as they approached puberty, and practical aids such as vegetable gardens or basic cooking utensils were not in evidence. Overall, the project designed and/or printed and distributed a total of approximately 630,000 learning materials, and learning guides in attractive and durable formats were designed and/or circulated to 2,900 schools in 11 project provinces. Most of the texts appear to be well used and appreciated by both teachers and students.

37. Ambitious targets for both pre-service and in-service training of teachers were exceeded numerically, and in this respect the project appears effective. Four hundred and eighty six ethnic teachers (326 of them women) were given initial preparation in relevant pedagogy at three TTCs, 296 teacher trainers were trained, 4,051 teachers were taught how to use the new curricula materials and approaches, and 77 pedagogical advisers were recruited and trained to provide on- site advisory services to multigrade schools. In addition, techniques of micro-teaching using local model schools were introduced to the three project-supported TTCs and the 11 project provinces. The reality is that although the numbers are greater than the targets set at appraisal, problems with language, logistics, and unfamiliarity with new pedagogical approaches required that longer training periods should have been provided to all levels of staff if they were to meet expected standards of achievement. Although most appointed staff appear to have remained in-post, the cost and time of maintaining pre-service and in-service training at project levels is unlikely to prove sustainable and some downsizing of the Project’s generous provisions is likely to take place.

38. The Project was expected to have installed a fully functioning EMIS to provide data to monitor progress and guide the MOE in further developments of the primary education system. Delays in start-up and eventual failure to complete this subcomponent adversely affected the quantity, quality, and scope of relevant data, which together with logistical obstacles, slowed the project’s overall effectiveness and efficiency. No formal benefit monitoring and evaluation system was included in project design and this adversely affected the ability of the EA, ADB, and AusAID to accurately assess progress or comment on impact. Improvements to educational management at all levels from the MOE to the PES and DEBs and down to school principals originally required a program of development and capacity building for over 1,000 staff. Decisions by the Government in 2000 to introduce a nationwide policy of decentralization brought about an urgency and an increased requirement for training and capacity building that had not been anticipated at appraisal, even though the project was itself based on decentralized principles. One hundred and forty key staff were to have been given a range of management skills over a period of 173 person-months, amounting to about 1 month per staff member, and 1,014 staff were to be given capacity building for a total of 575 person-months, amounting to approximately 2 weeks per person. Despite a budget increase of over 20% to $1.832 million, an increased total of 2,754 key staff were given specific management skills but for a reduced average period of only 1 week per person. Capacity-

13 building programs, lasting on average only 1.5 weeks, were given to 3,335 staff. Start-up was slow and it was 2005 before training reached down to provincial levels. While numerically the subcomponent appears effective, all levels of the MOE are convinced that management training should have been more comprehensive and of longer duration, covering in greater depth subjects such as planning and data analysis, budgeting and accounting, and monitoring and evaluation.

C. Efficiency in Achieving Outcome and Outputs

39. On balance, the project is assessed efficient, although at appraisal no detailed economic analysis was undertaken, the RRP mainly dealing with overall project costs and benefits. Three major benefits were identified: (i) increasing the number of female primary students (22,000) so that some would feed through into secondary and higher education to eventually enter the workforce in support of the emerging market economy; (ii) contributing to improved health, lower fertility rates, and postponed marriages amongst girls in ethnic communities; and (iii) developing more appropriate, relevant curricula and better-trained teaching staff for service in remoter primary schools. Although the project can demonstrate the existence of relevant curricula and trained staff, it is too early to show whether the other socioeconomic benefits will come to pass. Current evidence would indicate that very few ethnic girls, and certainly not those from the remoter villages, will be likely to enter the formal workforce in the foreseeable future but will remain engaged in local community pursuits.

40. Internal Efficiency. The RRP expected to demonstrate internal efficiency by showing increased enrolment rates (in particular the number of girls progressing to grade 5) and by assisting in the reduction of high cycle costs and lowering the cost to the Government of each primary graduate. Delays in installing an effective EMIS has inhibited effective project monitoring and in the absence of a benefit monitoring and evaluation system it has proven difficult to accurately assess the internal efficiency of project schools with respect to unit costs. Evidence shows that enrolments and retention rates have risen considerably in project schools, with an overall increase in excess of 47,000 boys and girls during 2000–2006, although this increase is less than the potential currently offered by the project’s classroom and teacher capacity. Current total enrolment in all 512 project schools is 47,000 students (20,000 of whom are female).18 It is noted that the project’s comprehensive delivery system, designed to promote community support and prepare and maintain teachers’ subject and pedagogical competence, is still functioning. Some aspects, such as the grants available to needy households, have become the responsibility of the local community.

41. External Efficiency. It is not possible to quantify the efficiency of investment in project schools based on available evidence. Longitudinal tracer studies will be required in order to follow up on the future of primary school graduates and to see how many stayed in their villages, how they fared, and how many proceeded to the outside world of work.

D. Preliminary Assessment of Sustainability

42. There are significant indications that investments made under the project are relevant to both overall government socioeconomic policy and to the more precise objectives of the MOE. The project is therefore most likely to be sustainable, even if financial and infrastructure investments may not be maintained at project levels. The current Five-Year Plan (2005–2010) outlines the Government’s vision for promoting a decentralized approach to development, prioritizes the need to enhance future prospects for ethnic communities, highlights the requirement to increase female participation in all aspects of society and the economy, and gives high priority to developing

18 Ministry of Education. Project data base. Vientiane. November 2006.

14 education. At the same time, the MOE expects to further enhance enrolments, access, and quality in basic education, strengthening the participation of girls in primary education, improving curricula relevancy, and raising the professional capability of teachers and educational managers at all levels. Further evidence of sustainability comes from the significant contribution of the Government in support of primary education, which is about 29% of the overall annual budget allocated for education in 2007/08 (KN312 billion, or $34 million equivalent). 19 Evidence that CCEDs are continuing to function after project completion and that they are maintaining their commitment to support their local schools and needy local families is perhaps the strongest evidence of project sustainability.

E. Impact

43. The project has met its intended impact by successfully expanding the physical capacity of the primary education system and increasing the enrolments of girls coming from ethnic communities into basic education. The quality of available basic education in the primary schools constructed by the project in selected ethnic communities, as assessed by the available information on the academic performance of students at the completion of grades 3 and 5, seems to indicate an improvement in overall quality. There is a need, however, to focus on the provision of more relevant life-skills suitable to local community needs and to the requirements of girls in particular. There was a considerable impact made on both the pre-service and in-service training and upgrading of teachers and other education professionals by the introduction of new pedagogical approaches featuring student-centered and competency-based learning. In addition, the project has certainly contributed to the wider concept of community ownership and active participation in the local education process, which may well prove to be its greatest impact. There can be no doubt that the Project, fully supported by the MOE’s firm commitment, has done much to further the development of primary education across all provinces. The lessons with respect to community involvement, curriculum and materials development, and teacher training have proved to have replication potential beyond the project schools. Meanwhile, the initial increase in enrolments has continued and the substantial increase in children’s access to primary education will be the lasting impact of this successful Project.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment

44. According to ADB’s criteria for overall assessment of a project, the project is rated “successful”. It was well conceived and designed and its overall scope and components remained relevant throughout implementation. It was successful in enhancing the physical capacity of the basic education system with respect to access to primary schools by girls from ethnic communities, and despite formidable logistical problems it constructed more than the specified number of multigrade and complete five-classroom primary schools. Overall it improved curricula and provided more than the predicted number of pre-service and in-service trained teachers and supporting educational staff. However, for logistical and communication reasons, the overall coverage of the project had to be reduced from 18 to 11 provinces (para. 6) while the duration of the project had to be extended by 2 years and several consultancy inputs had to be extended to cover the scope and complexity of the Project’s components. Forty four percent of project financing was directed towards the construction of the 512 project schools, including the 455 schools that were to pilot the multigrade concept. Community ownership of and involvement with the project has shown every sign of being continued after completion. While these achievements are impressive, greater attention now needs to be paid to ensuring that gains made in curriculum development can

19 Ministry of Education. Government budget on education. Vientiane May 2008.

15 be taken forward by further development of relevant learning materials and simple supportive equipment suited to actual community life-skills, focusing more on the specific needs of girls, especially those in grade 5. Time allocated for management training never met the duration envisaged by the RRP, and every effort should be made to ensure that essential skills in data analysis and planning, budgeting and accounting, and monitoring and evaluation, are provided through future training.

B. Lessons

45. Major lessons drawn from the project include the following:

(i) Recruitment and trained local ethnic teachers. The project foresaw a problem of teacher shortage in remote and ethnic areas by introducing an innovative approach to recruit and train local ethnic teachers where the schools were provided. This is considered a most successful activity as there is evidence showing that more than 95% of project ethnic teachers remain teaching in their villages after the project completed in 2007, and it shows that they are happy to continue teaching. The MOE has adopted this approach nationwide with some adjustments to ensure there is sufficient funds to support it.

(ii) Project indicators focused more on quantity than quality. Although the initial project objective was clearly concerned with raising the quality of primary education, particularly for ethnic girls, this concern was never articulated in terms of qualitative indicators during the project design. All available indicators were set to measure quantitative achievements, such as the number of schools to be constructed and number of teaching staff to be trained. Contractors for both construction and staff development and curriculum development worked to these indicators and exceeded their targets. Qualitative indicators, describing the levels of knowledge and pedagogical skills required for each teacher or staff member, or a more precise statement of the content to be covered in new learning materials, or the expected levels to be achieved by curriculum development, were not included. Their presence would have enhanced the progress made in these areas.

(iii) Monitoring and evaluation did not feature in the project design and even the EMIS failed to provide supporting information. Benefit monitoring and evaluation did not appear as formal issues in the project’s preparation. Although the PWG and project coordination unit did maintain sound overall management control of the Project, the absence of clear time lines and milestones made detailed project monitoring and evaluation impossible. Although quantitative targets were met and exceeded, the intended results of the project would have been better managed if an effective benefit monitoring and evaluation system had been installed from the outset.

(iii) A more realistic time scale and more limited scope and geographical coverage should have been reflected at the time of project design. The Project exceeded its original targets by building more schools and training more staff than anticipated, but this was only achieved through an extension of project duration and by supportive and proactive officials at all levels of the MOE, PES, and DEBs, as well as the CCEDs. Issues such as difficult logistics, adverse climate, poor communications, and an inadequate understanding of ADB procedures should have

16

been better addressed in the initial project design. A sharper focused project on fewer provinces would have permitted a more thorough trialing of the project’s innovative approaches before they were replicated on a wider scale.

C. Recommendations

1. Project Related

(i) Future monitoring. MOE should develop a benefit monitoring and evaluation system capable of undertaking some assessment of internal and external efficiency so as to determine the extent to which the project should be further replicated. Longitudinal tracer studies should be planned to follow up on the future lifestyle and economic potential of girls who attended project schools.

(ii) Covenants. Covenants relating to the detailed provisions for pre-service training for teachers and the recruitment of ethnic teachers may need to be revised to reflect a more sustainable level of funding support.

(iii) Additional assistance. Staff development should be strengthened to achieve its goals in terms of in-depth support for key activities such as planning, financial management, and monitoring and evaluation. Some aspects of curriculum development also require additional inputs for designing more relevant life-skills. Additional technical assistance in support of these activities is required.

2. General

(i) Inclusion of quality indicators in project framework. To enhance project monitoring and improve delivery of intended outcomes, future projects should include adequate quality indicators alongside quantitative measures of achievement, and both should be reviewed and adjusted as necessary during the midterm review.

(ii) Inclusion of benefit monitoring and evaluation in original project design. To enable the EA and ADB to assess project impact, effectiveness, and efficiency, a functioning monitoring and evaluation system should form an integral part of initial project design.

(iii) Project delegation 20 with adequate capacity development and resource allocation. To enhance effectiveness of Project Delegation to Resident Mission, a more systematic transition arrangement, adequate resource allocation, necessary training for local staff and well-functioning communication facilities should be provided.

20 This was the first project delegation to ADB Lao Resident Mission

Appendix 1 17

PROJECT FRAMEWORK

Design Performance Assumptions Summary Indicators/Targets Monitoring Mechanisms and Risks Goal Provide all primary school • Increase net enrollment • National Education Action Assumptions children with equal access ratio to 92% by 2010 Plan • Basic education continues to to quality primary • Increase completion rate • Review mission be government priority education and an to 79% by 2010 • Project progress report • Most development partners environment that • Reduce drop-out rate to continue their support of encourages them to 5% by 2010 basic education attend school regularly and successfully Risk completed the 5-year • Language barriers cycle

Purpose Equity Contribute to improvement • Increase net enrollment • Project progress report Assumptions in equitable access, ratio for girls to 92% by • Annual survey • Parents acknowledge the relevance, quality, 2010 • MOE/PES statistics importance of education efficiency, and • Increase completion rate • Annual workshop • Capacity of education officials management of primary to 77% for girls and 82% • Performance assessment and teachers improved education in 50 districts for boys by 2010 reports • Reduce drop-out rate for • Monitoring reports Risk girls and boys to 5% by • Annual operational • Poor families reluctant to 2010 review send their children to school • 486 (326 female) ethnic teachers recruited

Quality • Child-centered approach applied to all project schools • Teacher’s competence improved • Measurement of student performance • Provision of sufficient teaching and learning materials

Equity • Completion of annual operational plans and annual operational reviews • Strengthening the capacity of education officials from MOE to local level Outputs 1. Expanded access and Assumptions improved retention • 57 five-classroom and • No issue on land acquisition 455 multigrade schools • PES/ECDM/consultant • Community actively 1.1 Provision of constructed and report participated educational facilities equipped • Project progress report • Limited communication • 43 DEBs built and • Annual operational channel equipped reviews • Introduction of decentralized • 512 village authority management

18 Appendix 1

Design Performance Assumptions Summary Indicators/Targets Monitoring Mechanisms and Risks members trained in • Unavailability of district bank school construction facilities supervision, and • Unreliable statistics maintenance Assumption 1.2 Community • Community mobilization • Assessment report • Provincial and district officials mobilization and targeted integrated into the • Assistance grant not familiar with ADB assistance grant strategy, action plan monitoring report guidelines and requirements from national to district level Risk • Printed posters including • Shortage of qualified financial project school, sanitation officials and accountants at program, and school provincial and district levels maintenance provided to all project schools • Committee for community education and development established in all project schools • $150 to $250 targeted assistance grant provided to 869 villages

2. Improved relevance, • Provision of 630,000 • Gender studies report Assumption quality, and efficiency core textbooks and • MOE/PES statistics • MOE’s strategy on printing 630,549 supplementary and provision of core 2.1 Supplementary books to 2,901 schools textbooks in place materials and adapted • Provision of teaching curricula and learning kits to 2,000 Risk schools • No financial support for • Developed printing and provision of supplementary textbooks textbooks and teaching and including multigrade learning materials teaching, Lao language, and life-skills

• Studies and training on

gender and ethnicity to

all education officials

• Adapt the TTC

curriculum and materials

for training ethnic remote

teacher program

• Developed and printed • Annual operational review Assumptions 2.2 In-service support for • Project progress reports • Sufficient time and funds teachers and school training materials • 500 VCD copies on allocated to support the principals activity multigrade teaching • Teachers actively participated produced the training • 4,112 teachers (514

school principals)

received in-service

training

• Project teachers

received refresher

training on multigrade

teaching

Appendix 1 19

Design Performance Assumptions Summary Indicators/Targets Monitoring Mechanisms and Risks 2.3 Expanded • 260 teacher trainers • Project progress report professional supervision received 4 weeks • National workshop report for teachers training • 77 ( 33 ethnic female) new pedagogical advisers recruited and trained in supervising teachers • 436 provincial pedagogical advisers and more than 500 school principals trained in supervising teachers in multigrade teaching Assumption 2.4 Ethnic minority • 486 (326 female) ethnic • Project progress report • Availability of primary and teachers recruited teachers recruited and • Monitoring report secondary graduates in trained beneficiary communities

Risk • Shortage of qualified 3. Improved • Timely submission of • Annual operational review education officials at all levels management annual operational plan efficiencies and budget 3.1 MOE institutional • Establishment of basic capacity enhanced EMIS and monitoring system for the project Assumptions 3.2 PES and DEBs • Key officials in 11 PESs • Annual operational review • Unavailability of electricity in strengthened and 52 DEBs trained on • Project progress report some project districts management, and • Shortage of qualified construction supervision education officials at

• Basic EMIS set up provincial and district levels

connected from MOE to

PES and DEBs

• Training on basic

computer and data

collection for PES and

DEB officials

• Procurement of more than 200 computers Assumptions

• Installed LAN network • Project progress report • Sufficient financial support 3.3 Establish LAN network • Information technology policy and education connected to all departments in place management information system • Support training for all senior and technical Risk officials in the MOE • Shortage of information technology staff ADB = , DEB = district education bureau, ECDM = education construction design and management, EMIS = education management information system, LAN = , MOE = , PES = provincial education services, TTC = teacher training college, VCD = . 20 Appendix 2

Actual Enrollment under the Project schools

2003 2006 Province Total Female Total Female Phongsaly 3857 1660 4121 1942 Houaphan 3396 1720 4397 2159 Oudomxai 5179 2463 8241 4126 Luangnamtha 3137 1296 3916 1644 Xiengkhouang 4651 2061 5514 2999 Vientiane 2023 1338 2880 1753 Borikhamxay 2820 1221 3356 1426 Khammouane 2712 1333 3846 1702 Saravane 2280 885 3537 1226 Sekong 3034 1355 3975 1614 Attapeu 2152 918 3459 1375 Total 35241 16250 47242 21966

Source: Project data base 2006, Ministry of Education Appendix 2 a 21

Table1 : Actual National Enrolment for Basic Education by Province From 1999 - 2006 No Provinces 1999 2000 2002 2004 2006* Toal Female Total Female Total Female Total Female Total Female 1 Vientiane Capital 92,683 44,208 91,439 43,612 86,217 40,880 81,035 38,313 77,777 36,857 2 Phongsaly 21,416 8,874 20,438 8,401 22,336 9,391 25,355 10,403 27,268 11,420 3 Luangnamtha 18,804 7,870 18,491 7,717 20,905 8,958 23,650 10,604 24,366 10,965 4 Oudomxai 34,001 13,593 35,645 14,726 41,189 17,854 49,083 22,642 49,690 23,402 5 Bokeo 20,920 8,970 22,134 9,638 22,512 9,528 23,883 10,345 24,300 10,612 6 Luangprabang 64,953 28,440 60,996 26,742 68,235 30,148 70,549 31,976 71,616 33,381 7 Houaphanh 45,410 19,327 45,640 19,317 49,769 21,780 53,441 23,677 57,740 26,242 8 Xayabury 58,410 27,366 57,613 26,890 58,035 26,917 55,421 25,640 51,819 23,943 9 Xiengkhouang 44,818 19,778 45,321 19,973 47,419 21,073 45,290 20,575 47,558 22,095 10 Vientiane 62,154 29,181 67,300 31,500 64,532 30,489 63,690 29,752 69,170 32,541 11 Borikhamxai 35,188 16,193 36,258 16,777 41,048 18,969 42,664 19,864 42,371 19,799 12 Khammouane 50,751 23,314 52,549 24,432 55,764 26,267 56,015 26,443 54,720 25,984 13 Savannakhet 113,633 51,598 115,390 52,860 122,422 56,321 124,308 57,469 123,811 57,200 14 Saravane 43,056 18,673 39,543 17,257 49,975 22,149 48,310 21,487 49,795 22,276 15 Xekong 9,660 4,220 10,765 4,779 13,520 6,292 14,453 6,702 15,872 7,393 16 Champasack 90,229 42,508 87,980 41,825 87,039 41,251 87,251 41,340 85,107 40,651 17 Attapeu 13,604 6,197 13,735 6,189 17,084 7,909 17,895 8,299 18,827 8,691 18 Special Zone 11,831 5,404 6,876 3,091 7,299 3,394 8,528 4,062 Total 831,521 375,714 828,113 375,726 875,300 399,570 890,821 409,593 891,807 413,452

1999 2000 2002 2004 2006 Total 831,521 828,113 875,300 890,821 891,807 Female 375,714 375,726 399,570 409,593 413,452

Number of Student Enrollment in Primary Education

1000000

800000

600000

400000

200000

0 1999 2000 2002 2004 2006 Total 831521 828113 875300 890821 891807 Female 375714 375726 399570 409593 413452

Note: Special Zone was merged to Xiengkhouang and Vientiane provinces in early 2006 22 Appendix 2 a

Table 2: Actual national Enrollment for Secondary Education by Province From 1999 -2006

No Provinces 1999 2000 2002 2004 2006 Total Female Total Female Total Female Total Female Total Female 1 Vientiane Capital 58,241 27,116 62,132 29,029 69,241 32,554 70,254 32,846 406,459 32,021 2 Phongsaly 4,570 2,131 4,552 2,153 5,900 2,818 6,889 3,367 - 3,459 3 Luangnamtha 5,366 2,234 6,198 2,556 8,188 3,431 9,471 4,000 9,455 3,964 4 Oudomxai 6,193 2,147 6,997 2,451 11,042 4,067 13,386 5,084 14,256 5,517 5 Bokeo 5,771 2,242 6,373 2,464 8,083 3,232 9,254 3,722 9,081 3,660 6 Luangprabang 18,879 6,989 17,158 6,670 21,490 8,473 24,822 9,774 26,118 10,387 7 Houaphanh 10,400 3,919 11,760 4,450 14,188 5,504 17,163 6,854 18,609 7,487 8 Xayabury 14,949 5,639 16,645 6,321 21,710 8,696 25,886 10,616 27,150 11,331 9 Xiengkhouang 15,274 6,213 17,135 6,927 21,634 9,199 23,241 10,244 24,313 10,721 10 Vientiane 26,312 10,446 30,168 12,142 34,125 14,198 36,241 15,716 39,861 17,025 11 Borikhamxai 9,814 3,800 11,261 4,379 15,295 6,177 18,402 7,533 19,249 7,945 12 Khammouane 13,225 5,271 15,636 6,373 21,405 8,678 24,324 10,149 23,777 10,072 13 Savannakhet 30,905 13,054 34,254 14,468 39,854 17,187 41,971 18,459 42,010 18,779 14 Saravane 6,134 2,180 7,288 2,537 8,693 3,142 13,229 5,232 13,665 5,366 15 Xekong 1,178 380 1,765 617 2,864 1,015 4,090 1,614 4,381 1,812 16 Champasack 27,946 10,353 29,963 11,476 37,414 14,872 40,225 16,566 39,483 16,692 17 Attapeu 2,699 985 3,315 1,324 4,628 1,767 5,482 2,189 5,676 2,319 18 Special Zone 2,941 825 1,770 539 2,555 888 3,189 1,148 Total 260,797 105,924 284,370 116,876 348,309 145,898 387,519 165,113 723,543 168,557

1999 2000 2002 2004 2006 Total 206,797 284,370 348,309 388,044 730,641 Female 105,924 116,876 145,898 165,113 168,557

Number of Student Enrollment in Secondary Education

800000

700000

600000

500000

400000

300000

200000

100000

0 1999 2000 2002 2004 2006 Total 206797 284370 348309 388044 730641 Female 105924 116876 145898 165113 168557 23 Appendix 3

Governement Expenditure on Primary and Secondary Education by year 2002 - 2007 billion kip Year Total Budget on Total Percentage Total Percentage Education Primary Lower Secondary 2002/03 464,185 90,493 19% 33,200 7% 2003/04 597,696 105,542 18% 18434 3% 2004/05 701,650 180,967 26% 32,292 5% 2005/06 1,008,053 169,577 17% 76,137 8% 2006/07 1,248,417 404,590 32% 171,131 14% 2007/08 1,085,452 312,049 29% 33,963 3% Source: Ministry of Education, 2008 24 Appendix 4

Project Schools by District and Province

No. Province District Name No. of schools Total 1 Phongsaly Mai 8 Bountai 8 Boun Neua 9 Khoua 8 Phongsaly 9 Gnot Ou 9 Samphanh 8 59 2 Oudomxai Namor 8 La 9 Xay 10 Beng 13 Houn 12 Pakbeng 9 Nga 8 69 3 Houaphanh Aed 10 Sob Bao 9 Viengthong 11 Viengxay 11 Sam Neua 8 Sam Tai 10 Houa Mueang 10 Xiengkor 11 80 4 Luangnamtha Namtha 12 Long 10 Sing 12 Nalae 8 Viengphoukha 9 51 5 Xiengkhouang Nonghaed 7 Kham 14 Khouan 9 Mok 8 Thathom 9 47 6 Vientiane Saysomboun 11 Phoun 8 19 7 Borikhamxay Viengthong 9 Khamkeuth 12 21 8 Khammouane Boulapha 9 Sebangfai 7 Saybouathong 11 Nakai 11 Gnommalath 11 49 Appendix 4 25

Project Schools by District and Province

No. Province District Name No. of schools Total 9 Saravane Samouay 11 Ta Oy 9 Toumlan 7 Lao ngam 10 37 10 Sekong Dakcheung 11 Kaleum 11 Tha Teng 11 Lamarm 12 45 11 Attapeu Sanamxay 9 Phouvong 12 Sanxay 14 35 Total 512 512

Source: Project Database 2007, Ministry of Education 26 Appendix 5

Appraisal and Actual Project Costs ($million) Appraisal Actual Item Foreign Local Total Foreign Local Total A. Base Cost 1. Civil Works 4.7 3.5 8.2 5.2 4.3 9.5 2. Equipment/Furniture 2.1 1 3.1 1.6 0.8 2.4 3. Vehicles and Bicycles 0.4 0 0.4 0.5 0 0.5 4. Staff Development 0.2 0.2 0.4 0.3 1.4 1.7 5. Consulting Services 1.1 0.4 1.5 2.2 1.4 3.6 6. Learning Materials 0.3 0.22 0.52 0.8 1.1 1.9 7. Implementation and maintenance 0.05 0.03 0.08 0.19 0.09 0.28 8. Studies 0.31 0.29 0.6 0.11 0.17 0.28

B. Contingencies 1. Physical Contingencies 0.6 2.0 2.6 0.0 0.0 0.00 2. Price Contingencies 0.4 1.5 1.9 0 0 0.00

C. Service Charge 0.7 0 0.7 0.47 0 0.47

Total Cost 10.86 9.14 20 11.4 9.3 20.6

Land Acquisition/Community Support 0 2.9 2.9 0 3.2 3.2 Appendix 6 27

PROJECT LOAN DISBURSEMENTS ($`000)

Year Quarter Amount Cumulative Total 2000 I 500 500 II 239 739 III 003 742 IV 0 742 2001 I 004 746 II 256 1002 III 345 1347 IV 190 1537 2002 I 101 1638 II 545 2183 III 749 2932 IV 610 3,542 2003 I 272 3,814 II 640 4,454 III 387 4,841 IV 1,433 6,274 2004 I 737 7,011 II 726 7,737 III 850 8,587 IV 1524 10,111 2205 I 1,088 11,199 II 1,000 12,199 III 2,346 14,545 IV 875 15,420 2006 I 205 15,625 II 242 15,867 III 515 16,382 IV 1044 17,426 2007 I 1,094 18,520 II 150 18,670 III 1,837 20,507 IV 098 20,605 Total 20,605 Source: Loan Financial Information System, March 2008 28 Appendix 7

COVENANTS

No. Covenants Reference Rating Remark 1 Submission of the list of 38 districts and Schedule S Complied villages for each district to be selected for 3. Para 3 inclusion in Phase II 2 Submission of the prototype design of schools Schedule S 3 models were designed 6. Para 6 and selected by the EA in consultation with concerned departments 3 Staff of MOE, PES, DEB and the Education Schedule S Complied Construction Services are trained in planning 6. Para 7 and supervision of school construction 4 Recruitment of two PUCDA staff for each of Schedule S Most provinces appointed the 11 provinces within the Project area not 6. Para 8 PUCDA staff to work for covered by the World Bank funded Education the project Development project 5 Trained teachers shall be selected and Schedule S 486 ( 326 female) ethnic appointed to schools to be constructed under 6. Para 10 teachers were trained and the Project appointed 6 Ensure that under NRIES leadership previous Schedule S Studies conducted pilot studies on the Pedagogical Areas are 6. Para 16 Supplementation reviewed, and analyzed and best practices textbooks and teaching identified. materials developed under the project 7 Ensure that teaching methods, teacher Schedule S Multi-grade teaching competencies, and standard appropriate for 6, Para 18 approach developed and teaching in multi-grade schools and teaching included in the curriculum ethnic children, particular girls, will be A one year bridging developed and incorporated into the Project course included in the supported in service teacher training curriculum for remote and programs ethnic teacher course 8 Ensure that 4 camera ready teacher guides Schedule S Complied for the NRIES materials are prepared and 6. Para 19 ready for use during the specialized in-service and pre-service training program beginning in the second year of Project implementation 9 Ensure that (i) the in-service training curricula Schedule S Supplementary books to and teacher training materials are designed to 6.Para 20 all ethnic schools in 11 encourage the appropriate use of the NRIES project provinces materials; and (ii) teacher trainers are trained teaching kids developed in the use of NRIES materials and provided to all project schools 10 Ensure that about 4,000 teachers are Schedule S 4,112 teachers received provided training on the use of the NRIES 6. Para 21 training materials and on teaching the Pedagogical Areas 11 Recruitment of 50 additional pedagogical Schedule S 52 additional Pas recruited advisors 6. Para 22 and 104 Pas received additional training on consolidating knowledge and skills development 12 Ensure that at least 2 specialized training Schedule S 2 handbooks developed program and sets of training materials for Pas 6. Para 24. and trainings completed in are developed under the Project January 2003 29 Appendi x 7

No. Covenants Reference Rating Remark 13 Ensure that (i) workshops are conducted to Schedule S Various workshops prepare master trainers who will train PAs and 6, para 25 conducted and activities school principals to work in multi-grade competed in April 2002 schools or in ethnic areas 14 Provision of salary and transportation support Schedule S Complied for selected Pas, as agreed upon with the 6, para 26 Bank and AusAID 15 Ensure that the training of teacher educators Schedule S Complied all requirements shall include the following:(i) 3 orientation 6, para 27 conferences, (ii) in-service teacher education curricula and materials, (iii) trained teacher educators at 3 teacher training colleges, (iv) curricula and materials for teacher training college courses, (iii) 300 mainly female ethnic teachers trainees recruited; (vi) 2 one week vacation courses on the pedagogical areas and on other topics agreed upon between the borrower, the bank and AusAID 16 Schedule 6, para. 28: Ensure that criteria for Schedule S Complied recruiting Teacher Trainees are established. 6,para Ensure that Teacher Trainees will be selected yearly, at least 6 months ahead of the start of that year's training program.

17 Ensure that (i) enrolled Teacher Trainees are Schedule S All complied provided with financial and other support, as 6,para 29 agreed upon between the Borrower, the Bank and AusAID, (ii) faculty from the selected Teacher Training Colleges is provided honoraria to undertake necessary vacation courses, (iii) parents of the Teacher Trainees sign a contract with the Borrower that their daughters or sons will teach at least 3 years in an ethnic minority school, and (iv) upon completion of their studies, the Teacher Trainees will be provided with teaching posts in multi-grade schools under the Project. 18 Selection of the districts for the pilot-testing of Schedule 6, S Complied the district-based computerized information para 30 and planning system 19 At the end of 2 years of mobilization and Schedule 6, S Review and evaluation of targeted assistance, the Borrower shall review para 13 these activities conducted and evaluate the community mobilization and twice targeted assistance activities and develop plans, as appropriate, for expanding these activities to other provinces. 20 Ensure that the community of each village to Schedule 6, S Villages hired to do some benefit from the construction of a school shall para.9 works during the contribute to the construction process through construction the provision of labor.

30 Appendix 7

No. Covenants Reference Rating Remark 21 Develop a comprehensive plan, acceptable to Schedule 6, S Complied the Bank, for community mobilization and para 11 targeted assistance at the national, provincial, district and village levels, during the first year of Project implementation

22 Ensure that approximately 300 villages in 12 Schedule 6, S 869 villages received the districts of 6 provinces are included in the para 12 targeted assistance grant community mobilization and targeted assistance plans during Phase I

23 By the end of third year of Project Schedule 6, S All complied Implementation, the Borrower shall have (i) para 14 developed posters and other media appropriate for non- and semi- literate populations encouraging girls' enrollment and retention in schools, (ii) implemented action plans at the village, district, provincial and national levels to enroll and retain children, particularly girls in school, and (iii) implemented plans to provide assistance that relieves households of the high direct costs of sending their children to schools

24 During Phase I, the Borrower shall pilot-test Schedule 6, S Studies conducted, no the Borrower's regulation which permits para 15 adjustment on school schools the flexibility to adjust and schedule calendar required the school calendar around agricultural activities.

25 GEMEU shall (i) conduct a comprehensive Schedule 6, S All complied analysis of the representation of girls and para 17 minorities in the primary school curricula, textbooks, and support materials; (ii) generate criteria for analyzing the messages about girls and minorities expressed or implied in texts and images, and apply such criteria to an analysis of existing primary school curricula, textbooks, supplementary instructional materials and teacher support systems; (iii) develop guidelines and recommendations for achieving gender and minority balance in the revisions of curricula, instructional materials and teacher support systems; and (iv) conduct research on factors affecting the retention of girls in school.

31 Appendi x 7

No. Covenants Reference Rating Remark 26 Recruit ethnic minorities and women to serve Schedule 6, S Complied as PAs in Project districts, and to ensure that para 23 upon successful completion of training, the PAs assume regular duties in their assigned district. The number of additiona PAs trained shall be agreed upon between the Borrower, the Bank and AusAID

27 The community of each village to benefit from S Complied the construction of a school shall contribute to the construction process through the provision of labor.

28 By 15 May of each year, starting in 1999, the Schedule 6, S Submission date was Borrower shall prepare and submit to the para 36 revised to 30 September Bank for review an operational plan for the next Fiscal Year

29 At the end of each year, the Borrower shall Schedule 6, S Complied prepare an operational review to summarize para 37 progress made toward Project objectives and quantifiable and quantitative targets.

30 Ensure that (i) the EA submits and APA to the Article IV, S All complied bank not later than twelve months after the Section end of each related fiscal year . The APA 4.06 should include the auditor's opinion on the use of the Loan proceeds and compliance with the covenants of this loan agreement, the use of the procedures for imprest account and statement of expenditures. (ii) The EA provides the Bank other information concerning such account and financial statements and the audit thereof as the bank shall request from time to time.

31 Ensure that emphasis is placed on monitoring Schedule 6, S Complied system performance against indicators that para 31 assess the provision of services to ethnic minorities and girls.

32 Ensure that selected staff, acceptable to the Schedule 6, PS EMIS system developed, Bank, are provided comprehensive EMIS para 32: but not fully operation monitoring and planning training at MOE during the first year of project implementation, and that an EMIS/planning support program is developed to support their post-training activities.

32 Appendix 7

No. Covenants Reference Rating Remark 33 Ensure that expansion of the existing Schedule 6, PS Project data base information system and the development of a para 33 developed, but could not comprehensive Project monitoring system will link to the EMIS directly support completed and ongoing Education Development Project EMIS activities.

34 Ensure that baseline studies and surveys for Schedule 6, S Baseline survey key indicators will be undertaken within 4 para 38 conducted after the mid- months of the Effective Date, as agreed upon term review with the Bank, and that their results will be Annual survey conducted used to determine specific targets for the to assess the performance indicators of the project activities

35 Established, Staffed, and Operating PMU/PIU S Late complied

36 Fielding of Consultants S Late complied

37 Ensure that current job descriptions and staff Schedule 6, S Complied responsibilities will be reviewed at all para 34 management levels.

38 Schedule 6, para. 35: Ensure that the Schedule 6, S All complied management training for MOE staff will be para. 35 planned and designed to establish capacities to adequately fulfill 5 management functions: (i) planning and programming education activities and investments, (ii) intra-agency communication and coordination, (iii) resource mobilization, (iv) understanding and assessing accountability, and (v) evaluating decision options

39 Midterm Review will be jointly underatken Schedule 6, S Complied with the Borrower, AusAID and the Bank. The paras 39 to activities to be carried out, and the targets to 41: be achieved during Phase II will be reviewed during the Midterm Review. Adjustments to the design of Phase II and targets to be achieved may be agreed upon between the Borrower, AusAID and the Bank to incorporate lessons learned during Phase I.

Appendix 8 33

DETAILS OF SPECIALIST AND CONSULTANT UTILIZATION International or Person- month Individuak or Firm Expertise Domestic Plan Actual Plan Actual

Project Planning, Monitoring & Coordination Intl. 36 70 Firm OPCV/SKM School Architect Intl. 3 15.4 Firm OPCV/SKM Management Specialist Intl. 3 8 Firm OPCV/SKM EMIS Designer Intl. 2 3.1 Firm OPCV/SKM Education Information Analyst Intl. 2 2 Firm OPCV/SKM International Accountant Intl. 0 12 Firm OPCV/SKM GEMEU Advsior Intl. 0 1.7 Firm OPCV/SKM Mobilization Manager Dom. 24 34 Firm OPCV/SKM EMIS Software & Staff Training Dom. 4 4 Firm OPCV/SKM Educational Planner Dom. 12 12 Firm OPCV/SKM Program Manager Dom. 24 24 Firm OPCV/SKM Information Analyst Dom. 6 6 Firm OPCV/SKM LAN Installation & Instruction Dom. 2 3.5 Firm OPCV/SKM Office Automation & Training Dom. 3 3 Firm OPCV/SKM Survey Coordination & Analysis EMIS Dom. 12 5.5 Firm OPCV/SKM Management Training Dom. 12 31 Firm OPCV/SKM Financial management Specialist Dom. 6 6 Firm OPCV/SKM Domestic accountant Dom. 0 64 Firm OPCV/SKM Project Coordinator PSU Dom. 0 64 Firm OPCV/SKM Water Supply Design, Costing & Supervsion Dom. 0 package Firm LWR Water Design for TTC Dom 0 package Firm ADRA Civil Works Supervsion (contract) Dom. 0 package Firm LCG Total 151 369.2 34 Appendix 9

Loan 1621-LAO (SF): Basic Education (Girls) Project Civil Works - School and DEB Construction

No. of No. of No. of No. of Province DEB 5 Classrooms 3 classrooms 2 Classrooms Central Phongsaly 5 7 13 39 Luangnamtha 3 1 7 42 Oudomxay 6 6 28 35 Houaphan 6 8 17 55 Xiengkhouang 4 11 11 24 Vientiane* 3 5 10 4 Bolikhamxay 2 3 9 9 Khammouane 5 5 12 32 Saravan 3 4 9 23 Sekong 3 5 8 32 Attapeu 3 2 14 19 TTCs 3 Total 43 57 138 317 * Includes two districts that were formerly in Saysomboun Special Zone. Appendix 10 35

L1621- Basic Education (Girls) Project Staff Development

No Description No. of Person No. of days Short term trainings 1 Asset inventory 203 5 2 Master trainer on in-service training 260 10 3 Inservice training 4112 7 4 Master trainer 44 10 5 Multi-grade teaching 1531 6 6 Model school 60 10 7 Planning and budgeting 38 5 8 Financial reporting and disbursements 34 5 9 Using supplementaty books and teaching 120 5 materials 10 Community mobilization to education officials 161 7 from central to district levels 11 Community mobilization and education grant 2397 10 to benificiary communities 12 School construction monitoring to beneficiary 1032 5 communities 13 Using computer to education officials from 46 12 central to district levels 14 Data collection to education officials from 1554 5 central to district levels 15 Training of trainers on school census 342 4 16 Data collection to project primary teachers 1716 3 Sub-total 13650 109 Regional Short Term Trainings 18 Organization Asssessment and 20 10 Development 19 Project and Program managemetn 13 10 20 Monitoring and evaluation 19 10 21 Sustainable construction technics 1 9 22 Development of education institutions 2 8 23 Multi-grade pedagogy 7 10 24 Gender Policy Development 9 10 25 Educational management 6 8 26 EMIS 3 10 Sub-total 80 80 Long Term trainings 17 Local Ethnic Teachers 486 4 years Source: Project statistics 2007 , Ministry of Education 36 Appendix 11

Loan 1621-LAO (SF): Basic Education (Girls) Project Procurement of Office Equipment

UPS/Voltage Digital OverHead Provinces Computer Printer stabilizer Photocopier Scanner Camera projector Central 178 75 77 2 12 1 Phongsaly 9 6 2 2 1 3 1 Luangnamtha 8 6 1 2 1 3 1 Oudomxay 8 6 2 2 1 3 1 Houaphanh 8 6 1 2 1 3 1 Xiengkhouang 8 6 1 2 1 3 1 Vientiane* 8 6 1 2 1 3 1 Borikhamxay 8 6 2 2 1 3 1 Khammouane 8 6 2 2 1 3 1 Saravane 8 6 1 2 1 3 1 Sekong 8 6 2 2 1 3 1 Attapeu 8 6 2 2 1 3 1 Total 267 141 94 24 11 45 12

Other: 12 hub switches for LAN at Central MOE Software for school design & survey equipment for ECS & PUCDA Furniture for meeting Room 222 at MOE Video Cameras, TV, video palyer for each of the 3 project TTCs. TV for DNFE at Central MOE Two fax for PES Summary of Interdepartmental comments Loan 1621-LAO (SF): Basic Education (Girls) Project

Comments Action Taken

Ministry of Education (Director of Department of Planning and Cooperation; and Head of PIU)

The draft PCR was well prepared. We have no This approach was already spelled out under comments except that a successful approach the project lesson learned. on recruitment and trained local ethnic teacher should be indicated in the lesson learned.

Figures related number of schools, teachers All figures were revised based on the updated and education staff were trained under the information provided by MOE. project would be double checked and confirmed.

CTLA (Oliver Domagas)

We have reviewed the draft PCR and outline Revise all information under the basic data, below comments on basic data for your dates for loan approval and effective. consideration. Revised the basic data, Disbursement figures were revised in disbursement figure by category and total accordance with the LFIS. All figures are project cost to ensure that all figures are consistent throughout the report consistent with the LFIS and amounts presented throughout draft PCR.

COSO (Muhammad Ingratubun)

Detailed explanation why it was difficult to Detailed justification were provided in para 6 implement the project activities; and design and monitoring framework.

Specified year and version of ADB Guidelines Information on version and year were added on recruitment of consultant and into the following paragraphs procurements. Para.27. ADB guideline on the used to recruit consultant 1998 and 2002 Para. 28. ADB guideline on procurement 2000,2002, and 2005

SESS ( Hirosato Yasushi ) Further explanation why the project restricted Revised para. 6: The project was restricted to its activities in 11 provinces, instead of 18. 11 provinces, instead of 18 provinces considering that (i) the project’s geographical coverage was very wide and thus logistical and administrative arrangement was difficult to Para 42. The Government’s financial support implement (ii) operational and transportation to primary education seems to be a bit low. cost would absorb a major portion of the project fund; (iii) the problems associated with difficult terrain, poor access road, and inadequate telecommunication links were significant; (iii) provincial and district officials had no experience of project implementation, no knowledge of ADB guidelines and had very little or no English language facility; (iv) MOE tried to achieve the intended outcomes within their limited budget.

Above detailed explanation was indicated in the project framework

The figure was revised according to the updated information provided by the Ministry of Education.

Environment and Safeguard Division Noted (Takashi Ohmura) No comments on the draft since environmental safeguard implication is identified

OCO (Lucila Chan) Noted No comments from a co-financing perspective

OGC Noted. No comments from a legal point of view