Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 29047 PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$3.1 MILLION AND Public Disclosure Authorized CREDIT IN THE AMOUNT OF SDR2.2 MILLION (US$3.1 MILLION EQUIVALENT) TO THE GOVERNMENT OF SAINT VINCENT AND THE GRENADINES FOR AN OECS EDUCATION DEVELOPMENT PROJECT IN SUPPORT OF THE THIRD PHASE OF THE OECS EDUCATION DEVELOPMENT PROGRAM Public Disclosure Authorized 27 May 2004 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective 25 May 2004) Currency Unit = Eastern Caribbean Dollar (EC$) EC$2.68 = US$l FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS APL Adjustable Program Lending BEP Basic Education Project CAS Country Assessment Strategy CDB Caribbean Development Bank CDU Curriculum Development Unit CEE Common Entrance Exam CIDA Canadian International Development Agency CKLN Caribbean Knowledge and Learning Network cxc Caribbean Examinations Council DFID Department for International Development EC$ Eastern Caribbean Dollars EA Environmental Assessment EMIS Education Management Information System EPM Education Programme Manager (for DFID) EPMU Education Project Management Unit EPSC Education Project Steering Committee EPU Education Planning Unit EKMN Education Knowledge Management Network ESDP Education Sector Development Plan EU European Union FMR Financial Monitoring Report GDP Gross Domestic Product GOSVG Govemment of Saint Vincent and the Grenadines IRR Internal Rate of Return LAC Latin America and the Caribbean MEYS Ministry of Education, Youth and Sports MFPD Ministry of Finance, Planning and Development OECS Organization of Eastern Caribbean States OEDP OECS Education Development Project OERU OECS Education Reform Unit PCU Project Coordination Unit PTR Pupil Teacher Ratio SKN Saint Kitts and Nevis SA Special Account SVG St. Vincent and the Grenadines UNESCO United Nations Educational, Scientific and Cultural Organization UWI University of the West Indies Vice President: David de Ferranti Country Director: Caroline Anstey Sector Director: Ana-Maria Amagada Task Team Leader: Cynthia Hobbs FOR OFFICIAL USE ONLY ST .VINCENT AND THE GRENADINES St .Vincent: OECS Education Development Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE.................................................................. 1 1. Country and sector issues .................................................................................................... 1 2 . Rationale for Bank involvement .......................................................................................... 4 3 . Higher level objectives to which the project contributes ..................................................... 5 B. PROJECT DESCRIPTION.................................................................................................. 6 1. Lending instrument .............................................................................................................. 6 2 . Program objective and Phases ............................................................................................. 6 3 . Project development objective and key indicators .............................................................. 7 4 . Project components .............................................................................................................. 7 5 . Lessons learned and reflected in the project design ............................................................ 9 6 . Alternatives considered and reasons for rejection ............................................................. 10 C. IMPLEMENTATION ......................................................................................................... 10 1. Partnership arrangements ................................................................................................... 10 2 . Institutional and implementation arrangements ................................................................. 11 3 . Monitoring and evaluation of outcomedresults ................................................................ 11 4 . Sustainability ..................................................................................................................... 11 5 . Critical risks and possible controversial aspects ............................................................... 12 6 . Loadcredit conditions and covenants ............................................................................... 13 D. APPRAISAL SUMMARY .................................................................................................. 13 1. Economic and financial analyses (see Annex 9)................................................................ 13 2 . Technical ............................................................................................................................ 14 3 . Fiduciary ............................................................................................................................ 15 4 . Social ................................................................................................................................. 16 5 . Environment ...................................................................................................................... 16 6 . Safeguard policies .............................................................................................................. 16 7 . Policy Exceptions and Readiness ...................................................................................... 16 This document has a restricted distribution and may be used by the performance of their official duties . Its contents may not be other~isedisclosed without World Bank authorization. Annex 1: Country and Sector Background ............................................................................... 17 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ..................22 Annex 3: Results Framework and Monitoring ......................................................................... 25 Annex 4: Detailed Project Description ...................................................................................... 29 Annex 5: Project Costs ................................................................................................................ 38 Annex 6: Implementation Arrangements .................................................................................. 39 Annex 7: Financial Management and Disbursement Arrangements ...................................... 42 Annex 8: Procurement ................................................................................................................ 47 Annex 9: Economic and Financial Analysis .............................................................................. 56 Annex 10: Safeguard Policy Issues............................................................................................ -67 Annex 11: Project Preparation and Supervision ...................................................................... 68 Annex 12: Documents in the Project File .................................................................................. 70 Annex 13: Statement of Loans and Credits............................................................................... 72 Annex 14: Country at a Glance .................................................................................................. 73 Annex 15: Institutional Analysis Summary .............................................................................. 75 Annex 16: Department for International Development (DFID) Support ............................... 80 MAP No. 13500R ST. VINCENT AND THE GRENADINES OECS EDUCATION DEVELOPMENT PROJECT PROJECT APPRAISAL DOCUMENT LATIN AMERICA AND CARIBBEAN (LCSHE) Date: May 27,2004 Team Leader: Cynthia Hobbs Country Director: Caroline D. Anstey Sectors: Secondary education (45%); Sector Mangermirector: Ana-Maria Arriagada Tertiary education (20%); Central government administration (20%); Sub- national government administration (15%) Themes: Education for all (P); Public expenditure, financial management and procurement (S); Education for the knowledge economy (S) Project ID: PO86664 Environmental screening category: Partial Assessment Lending Lnstrument: Adaptable Program Loan Safeguard screening category: Limited imDact [XI Loan [XI Credit [ ] Grant [ ] Guarantee [ ] Other: Total Bank financing (US$m.): 6.20 RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT 1.02 2.08 3.10 ASSOCIATION UK: BRITISH DEPARTMENT FOR 0.46 0.34 0.80 INTERNATIONAL DEVELOPMENT (DFJD) Total: 4.23 5.27 9.50 Borrower: Government of St. Vincent and the Grenadines Responsible Agency: Ministry of Finance, Planning and Development; Ministry of Education, Youth and Sports P.O. Box 608 Kingstown St. Vincent and the Grenadines 4nnual 0.90 1 1.62 I 2.14 I 1.48 I 0.06 Zumulative I 0.90 I 2.52 1 4.66 I 6.14 I 6.20 Project implementation period: Start June 30,2004 End: June 30,2008 Expected effectiveness date: November 1,2004 Expected closing date: December 30, 2008 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Ref. PAD A.3 Does the project require any exceptions from Bank policies? Ref. PAD 0.7 [ ]Yes [XINO Have these been approved by Bank management? ]Yes [