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Document of The World Bank Public Disclosure Authorized Report No: ICR00001134 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-37690) ON A Public Disclosure Authorized CREDIT IN THE AMOUNT OF SDR 13.2 MILLION (US$ 18 MILLION EQUIVALENT) TO THE REPUBLIC OF AZERBAIJAN FOR AN EDUCATION SECTOR DEVELOPMENT PROJECT Public Disclosure Authorized May 17, 2010 Public Disclosure Authorized Human Development Sector Unit South Caucasus Country Unit Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective May, 2010) Currency Unit = New Azerbaijan Manat (AZN) AZN 1.00 = US$ 1.24 US$ 1.00 = 0. 80AZN FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS APC Adaptable Program Credit NGO Non-Governmental Organization APL Adaptable Program Lending OECD Organization for Economic Cooperation and Development CAR Center for Applied Research OSI Open Society Institute CAS Country Assistance Strategy PAD Project Appraisal Document CIS Commonwealth of Independent States PAPU Policy Analysis and Planning Unit DCA Development Credit Agreement PCU Project Coordination Unit ECD Early Childhood Development PDO Project Development Objective EMIS Education Management Information System PHRD Policy and Human Resources Development Fund EMISU Education Management Information System Unit PIRLS Program on International Reading Literacy Study EMP Environmental Management Plan PISA Program for International Student Assessment ERP Education Reform Project PRSP Poverty Reduction Strategy Paper ESDP Education Sector Development Program PSA Production Sharing Agreement FSU Former Soviet Union POM Project Operational Manual GDP Gross Domestic Product QAG Quality Assessment Group GOA Government of Azerbaijan QER Quality Enhancement Review ICTs Information and Communication Technologies SAPPU Strategic Analysis, Planning and Personnel Unit IDA International Development Association SDR Special Drawing Rights IDP Internally Displaced People SGP School Grant Program IEP Institute for Education Problems SIL Specific Investment Loan ISR Implementation Status and Results Report SPPRED State Program on Poverty Reduction and Economic Development KPI Key Performance Indicators TTIs Teacher Training Institutes LIL Learning and Innovation Loan TIMSS Trends in International Mathematics and Science Study MOE Ministry of Education UNICEF United Nations International Children’s Fund MOF Ministry of Finance VET Vocational Education and Training NCSA National Center for Student Assessment Vice President: Philippe Le Houerou Country Director: Asad Alam Sector Manager: Mamta Murthi Project Team Leader: Juan Manuel Moreno Olmedilla ICR Team Leader: Nino Kutateladze REPUBLIC OF AZERBAIJAN Education Sector Development Project CONTENTS Data Sheet……………………………………………………………………………...i 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 7 3. Assessment of Outcomes .......................................................................................... 12 4. Assessment of Risk to Development Outcome ......................................................... 19 5. Assessment of Bank and Borrower Performance ..................................................... 20 6. Lessons Learned ....................................................................................................... 23 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 23 Annex 1. Project Costs and Financing .......................................................................... 25 Annex 2. Outputs by Component ................................................................................. 26 Annex 3. Economic and Financial Analysis ................................................................. 37 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 38 Annex 5. Beneficiary Survey Results ........................................................................... 40 Annex 6. Stakeholder Workshop Report and Results ................................................... 41 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 43 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders ...................... 65 Annex 9. List of Supporting Documents ...................................................................... 66 MAP .............................................................................................................................. 67 A. Basic Information Education Sector Country: Azerbaijan Project Name: Development Project Project ID: P070989 L/C/TF Number(s): IDA-37690 ICR Date: 05/17/2010 ICR Type: Core ICR AZERBAIJAN Lending Instrument: APL Borrower: REPUBLIC Original Total XDR 13.2M Disbursed Amount: XDR 13.0M Commitment: Revised Amount: XDR 13.0M Environmental Category: B Implementing Agencies: Project Coordination Unit Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 09/30/2002 Effectiveness: 12/18/2003 Appraisal: 02/24/2003 Restructuring(s): Approval: 05/27/2003 Mid-term Review: 03/06/2006 06/09/2006 Closing: 03/31/2008 09/30/2009 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 25 25 Primary education 40 40 Secondary education 20 20 Sub-national government administration 5 5 Tertiary education 10 10 Theme Code (as % of total Bank financing) Education for all 33 33 Education for the knowledge economy 67 67 E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Philippe H. Le Houerou Country Director: Asad Alam Asad Alam Sector Manager: Mamta Murthi Mamta Murthi Project Team Leader: Juan Manuel Moreno Olmedilla Meskerem Mulatu ICR Team Leader: Nino Kutateladze ICR Primary Author: Nino Kutateladze F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The Project constitutes the first phase of a three phase Adaptable Program Loan (APL). The overall objective of the Program is to increase learning achievements for all students to meet the needs of a market economy and improve efficiency of general education. The development objective of this Project was to strengthen the capacity to plan, manage and ii monitor the reform program more effectively and efficiently and initiate the highest priority investments in selected districts. Revised Project Development Objectives (as approved by original approving authority) Not applicable. (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years National curriculum framework for grades 1-11 developed, standards developed Indicator 1 : and approved for grades 1-4 by the MoE; new syllabi developed at least for two grades and ready for piloting. National National Curriculum curriculum framework for framework for general education grades 1-11 developed and developed, adopted. Subject Value standards curricula for quantitative or None developed and primary grades Qualitative) approved for approved. Grade 1 grades 1-4 by the curricula piloted in MoE; new syllabi the 2007-2008 developed at least academic year and for two grades and introduced nation- ready for piloting. wide in 2008-2009. Date achieved 03/15/2004 03/31/2008 03/31/2008 Comments (incl. % Achieved. achievement) At least 90 percent of children in grades 1-5 have free of charge textbooks in core Indicator 2 : subjects. Wide disparities in access to textbooks were At least 90 percent reported among schools of children in 95% of children in Value and particularly in urban grades 1-5 have grades 1-5 received quantitative or versus rural areas. free of charge free of charge Qualitative) Source: 2005 Baseline textbooks in core textbooks. Report on Preliminary subjects. Information on Abundance of Textbooks. Date achieved 06/30/2005 09/30/2007 09/30/2007 Comments Achieved. (incl. % Source: Evaluation survey carried out in 2007. Textbook Survey carried out in achievement) May 2009 by Sigma confirmed lack of disparities in access to core textbooks. Indicator 3 : New funding formula and mechanism prepared and implemented on an iii experimental basis in three pilot districts. New funding Per-student formula and financing formula mechanism was developed and Value prepared and implemented on an quantitative or None implemented on an experimental basis Qualitative) experimental basis in 59 schools in the in three