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The World Bank Somalia Education for Human Capital Development Project (P172434) Public Disclosure Authorized Public Disclosure Authorized Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 10-Mar-2021 | Report No: PIDA28885 Public Disclosure Authorized Public Disclosure Authorized Jan 25, 2021 Page 1 of 15 The World Bank Somalia Education for Human Capital Development Project (P172434) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Somalia P172434 Somalia Education for Human Capital Development Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA EAST 01-Mar-2021 17-May-2021 Education Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance Ministry of Education, Culture and Higher Education, FMS Ministries of Education Proposed Development Objective(s) Increase access to primary education in underserved areas, with a focus on girls, and improve quality of instruction Components System building Expansion of access to quality schooling for the disadvantaged Enhanced instruction quality Project management PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 43.00 Total Financing 43.00 of which IBRD/IDA 40.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing Jan 25, 2021 Page 2 of 15 The World Bank Somalia Education for Human Capital Development Project (P172434) International Development Association (IDA) 40.00 IDA Grant 40.00 Non-World Bank Group Financing Counterpart Funding 3.00 Borrower/Recipient 3.00 Environmental and Social Risk Classification High Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context Somalia has been making steady progress toward stabilization and institutional progress after over two decades of protracted conflict. The adoption of the Provisional Constitution in 2011, and the establishment of the Federal Government after peaceful presidential elections in 2012 and in 2017, has helped set the country on a path to recovery. The Provisional Constitution established the basis for a federal political system. The federal system includes five Federal Member States (FMS) – Galmudug, Hirshabelle, Jubbaland, Puntland and South West - and the administrative region, Banadir Administration. Although not internationally recognized, Somaliland has declared independence from Federal Government of Somalia and does not participate in the federal system. Recently, institutional reforms and the establishment of transparent administrative structures have helped develop core public sector functionalities. Following steady progress, Somalia has reengaged with the international community through commencing the debt relief process and reaching the Heavily Indebted Poor Countries Initiative Decision Point in March 2020. Nearly 70 percent of the population of Somalia lives below the poverty line (US$1.90 a day in purchasing power parity terms). Another 10 percent lives close to the poverty line, vulnerable to shocks. Almost 9 out of 10 Somali households are deprived of at least one fundamental dimension: money, electricity, education, or water and sanitation. Access to services is particularly limited for those living in rural areas, including nomads and internally displaced settlements, where poverty is deepest and markets, health facilities and schools are scarce. Years of conflict, instability, and violence have led to extremely low investments in human capital formation and left several generations of Somalis unable to achieve their potential. Lack of access to schooling and consequent low education level of the population pose significant constraints to Somalia’s human capital development. Investing in Somalia’s human capital will be essential for the country to move out of a cycle of violence, instability and vulnerability. An estimated 55 percent of population is under the age of 15 and with a fertility rate of 6.9 children, this age cohort continues to expand rapidly.1 With adequate investments in building the skills and productivity of its young population, Somalia could accelerate its efforts towards building prosperity and reducing instability in the country. Education could 1 Somalia Health and Demographic Survey 2019 Jan 25, 2021 Page 3 of 15 The World Bank Somalia Education for Human Capital Development Project (P172434) also play a critical role in reducing fertility, specifically with a focus on girls’ education. The Somalia Health and Demographic Survey (SHDS) 2020 finds that, in Somalia, for women with no education, the total fertility rate is twice as high, at 7.2, compared to women with higher education, at 3.7. Sectoral and Institutional Context Limited progress in improving education outcomes is one of the main constraints to human capital development in Somalia. The education system is still evolving and continues to be highly fragmented leading to weak sector outcomes. Access to education has remained low over the last two decades with large variations with the most disadvantaged, specifically girls, those in rural areas and poor households, excluded from schooling opportunities. Lastly, what limited education is provided is of low quality due to poor quality of teaching. Education system organization The current Somali education system emerged in 2012 with the establishment of the Federal Government of Somalia (FGS). The Provisional Constitution of the Federal Republic of Somalia established free primary and secondary education as the basic right of all Somali citizens. Though not fully codified in law, the Ministry of Education, Culture and Higher Education (MoECHE) at the federal government level is responsible for the overall guidance and administration of education in Somalia. The MoECHE has been collaborating with national and international stakeholders to develop Education Sector Strategic Plans (ESSP), the current of which runs from 2018-2020 with a new one currently under development. A multiyear effort is also underway to develop a new national competency-based curriculum, which integrates issues of conflict-sensitivity and peace building. The governance structure of the education system in Somalia is evolving. The Federal Government of Somalia and Banadir, Galmudug, HirShabelle, Jubaland and Southwest have recently agreed in a Memorandum of Understanding (MoU) to work cooperatively in matters related to the education sector and agreed upon the roles and responsibilities of each level of government. 2 Under the agreement, the MoECHE is mandated to develop regulatory frameworks, e.g., Education Acts and policies and coordination while the Federal Member States are responsible for implementing education programs and policies. The FMS have established their own state-level Ministries of Education, laws and policies. They participate in intergovernmental forums organized to discuss key education sector issues but participation varies and there is room to strengthen this coordination. In the last two decades, nonstate actors have become a prominent provider of schooling in many parts of Somalia. In the absence of a strong public system during the period of instability, these nonstate actors, which include local communities, private providers, numerous international donors including Somali diaspora, nongovernmental organizations (NGOs) and umbrella associations assumed key roles in reconstructing schools, education service delivery, and regulation. This has led to a highly fragmented system which uses a variety of curriculum, education cycles3, language of instruction and learning standards across the country. About 55 percent of students are estimated to be enrolled in nonstate schools across Somalia. MoECHE needs to significantly strengthen stewardship of the sector to put it on a sustainable path to development and ensure efficiency and efficacy of expenditure. First and foremost, this will need to include agreement on a national framework for setting education policy that provides for a federal role in establishing system-wide standards and norms. 2 Banaadir is not yet recognized as a state and is under the jurisdiction of the Federal Government of Somalia until its status changes. 3 Private institutions follow a 9+3 cycle with 9 years of primary and 3 years of secondary and public schools an 8+4 cycle. Jan 25, 2021 Page 4 of 15 The World Bank Somalia Education for Human Capital Development Project (P172434) A key role of MoECHE would be to ensure alignment and coherence across various legal and policy instruments. Local government laws, decentralization policies, and education sector guidelines such as the Education Sector Strategic Plan (ESSP) need to reflect a common understanding of the division of functions and responsibilities across administrative levels to strengthen the enabling environment for decentralized education services. Given the large role of the nonstate sector, there is need to strengthen oversight of nonstate schools and networks. Data management systems need to be bolstered including adoption of uniform data protocols and establishment of clear flow of data between schools, state authorities, and federal authorities for planning, open information exchange, and follow-up, as well as reporting on donor commitments. Access to education Somalia has one of the lowest education enrolment rates in the world. The primary gross enrollment rate (GER) is estimated to be 20 percent with approximately 3 million