Document o f The World Bank

FOR OFFICIAL USE ONLY

Report No: 361 89-MLI

PROJECT APPRAISAL DOCUMENT

O N A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 24 MILLION (US$35 MILLION EQUIVALENT)

TO THE

REPUBLIC OF MALI

FOR A

SECOND EDUCATION SECTOR INVESTMENT PROGRAM

June 23,2006

Human Development I1 Africa Region

This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization.

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ACDI ADARS A E AFD AGETIPE AIDS ANICT

CAD-DE

CAF CAP CAS CDI CDPE CED CFAA CGS CNE CNR-ENF

CPS CSR CT DAE DAF DEF DNACPN

DNB DNCF DNEB DNTCP

DRE ECD EFEP ENF EN1 ENSup EPPFM ERAP ESIP

CURRENCY EQUIVALENTS (Exchange Rate Effective as o f March 6,, 2006)

Currency Unit - 1 USD = 525 CFAF

FISCAL YEAR January 1 - December 3 1

ABBREVIATIONS AND ACRONYMS

Canadian Agency for International Development Direct Support to Improve School Productivity Teaching Academies French Development Agency Public Works Executing Agency Acquired Immunodeficiency Syndrome National Investment Agency o f Territorial Authorities

Support Unit for the Decentralization-Deconcentation o f Education Functional Literacy Center Pedagogical Activity Center Country Assistance Strategy Documentation and Information Center Early Childhood Development Center Education for Development Center Country Financial Accountability Assessment School Management Committee National Education Center National Resource Center for Nonformal Education

Planning and Statistical Unit Country Status Report Territorial Authority Directorate o f Education Academy Administrative and Financial Directorate Basic Studies Diploma National Directorate for Sewarage and Pollution Control General Directorate for Budget General Directorate o f Financial Comptrollers National Directorate o f Basic Education National Treasury and Accounting Directorate

Regional Directorates for Education Early Childhoood Development Preschool Teacher Training School Nonformal Education National School o f Engineering Teacher Training College Economic Policy and Public Finance Management Consolidated environmental and resettlement action plan Education Sector Investment Program

Agence Canadienne de Diveloppement International Appui Direct a 1 'Amelioration des Rendements Scolaires Acadimies d 'Enseignement Agence Franqaise de Diveloppement Agence d 'Execution de Travaw d 'Intirkt Public Syndrome Immunodijicitaire Acquis Agence Nationale d 'Investissement des Collectivitis Territoriales Cellule d i ippui a la Dicentralisation-Dkconcentration de ['Education Centre d Xlphabitisation Fonctionnelle Centre d Xnimation Pidagogique Stratigie d Xide-Pays Centre de Documentation et d 'Information Centre de Diveloppement de la Petite Enfance Centre d'Etudes pour le Diveloppement Evaluation de la ResponsabilitC Financikre dans les Pays Comiti de Gestion Scolaire Centre National d 'Education Centre National des Ressources pour 1 'Education Non-Formelle Cellule de la Planification et des Statistiques Revue du Systime EducatqNational Collectiviti Territoriale Direction d 'Acadimie d'Education Direction Administrative et Financisre Dipl6me d 'Etudes Fondamentales Direction Nationale de 1 Xssainissement et Contr6le des Pollutions et Nuisance Direction Ginkrale du Budget Direction Ginerale du Contrde Financier Direction Nationale de I'Enseignement de Base Direction Nationale du Trisor et de la Comptabiliti Publique Directions Rigionales de ['Education Diveloppement de l a Petite Enfance Ecole de Formation des Educateurs Priscolaires Education Non-Formelle Ecole Nationale d 'Inginieurs Ecole Normale Supirieure Politique Economique et Gestion des Finances Publiques Plan Cadre de gestion environnementale et sociale Programme d 'Investissement Sectoriel de 1 'Education

ESG ETP FAFPA

CFAF FMR GDP GER HIV ICB ICTs IDA IEF IFM IFMIS IFP IPN ISAs I U T LIL

LMD M D G MEFP MoE M o U MTEF NCB NGO PASEC

PCU PER PETS PFM P IM PMR PRODEC SARPE

TPF UNDP UNESCO

UNICEF USAID VET

General Secondary Education Technical and Vocational Education Vocational Training and Apprenticeship Support Fund

Franc o f the African Financial Community Financial Monitoring Report Gross Development Product Gross Enrollment Rate Human Immunodeficiency Virus International Competitive Bidding Information and Communication Technologies International Development Agency Basic Education Inspectorate Teacher Training Institutes Integrated Financial Management Information System Vocational Training Institute National Pedagogic Institute International Standards on Auditing Technology University Institute Learning and Innovation Loan

Bachelor-Master-Doctor Millennium Development Goal Ministry o f Employment and Vocational Training Ministry o f National Education Memorandum of Understanding Medium-Term Expenditure Framework National Competitive Bidding Nongovernmental Organization Learning Achievement Assessment Program o f the Minis-

Enseignement Secondaire Gindral Enseignement Technique et Professionnel Fonds d 'Appui Ci la Formation Professionnelle et Ci 1 'Apprentissage Franc de la Communautd Financisre Africaine Rapport de Gestion Financisre Produit de Ddveloppement Brut Taux Brut d 'Inscriptions Virus Immunodijcitaire Humain Appel d 'w res International Technologie de l'lnformation et de la Communication Agence Internationale de Ddveloppement Inspection de 1'Enseignement Fondamentale Instituts de Formation des Maitres Systsine Intdgri de Gestion Financisre de I 'Information Institut de Formation Professionnelle Institut Pidagogique National Standards internationaux d 'Audits Institut Universitaire de Technologie P r i t au Ddveloppement des Connaissances et Ci I 'Innovation Licence-Maitrise-Doctorat Objectif de Ddveloppement du Mil l inaire Ministsre de 1 'Emploi et de la Formation Professionnelle MinistPre de 1 'Education Nationale Protocole d 'Accord Cadre des Dipenses Ci Moyen-Terme Appel d 'Offres National Organisation non-gouvemementale dans les Ecoles Fondamentales Programme d'ilnalyse des Systsrnes Educatqs des Pays de la CONFEMEN

terial Conference on Education in French--Speaking Countries Project Coordination Unit Public Expenditure Review Public Expenditure Tracking Survey Public Financial Management Project Implementation Manual Project Management Report Ten-Year Program for the Development o f Education Alternative Teaching Staff Recruitment Strategy

Unitd de Coordination du Projet Revue des Ddpenses Publiques Enquite de Tragabilitk des Ddpenses Publiques Gestion Financisre Publique Manuel d'Exicution du Projet Rapport de Gestion des Projets Programme Ddcennalpour le Diveloppement. de I'Education Stratdgie Alternative de Recrutement du Personnel Enseignant Partenaires Techniques et Financiers Programme des Nations Unies pour le Ddveloppement Organisation des Nations-Unies pour ['Education, les

Fonds des Nations Uniespour I'Enfance Agence Amdrcaine pour le De'veloppement International Formation Technique et Professionnelle

Technical and Financial Partners United Nations Development Program United Nations Education, Scientific and Cultural Organization Sciences et la Culture United Nations Children's Fund U.S. Agency for International Development Vocational Education and Training

Vice President: Gobind T. Nankani Acting Country Director: Pedro Alba Acting Sector Manager: William Experton

Task Team Leader: William Experton

A . 1 . 2 . 3 . B . 1 . 2 . 3 . 4 . 5 . C . 1 . 2 . 3 . 2 . 5 . 6 . D . 1 . 2 . 3 .

MALI SECOND EDUCATION SECTOR INVESTMENT PROGRAM

TABLE OF CONTENTS

Page STRATEGIC CONTEXT AND RATIONALE ................................................................. 3

Country and sector issues .................................................................................................... 3 Rationale for Bank involvement ......................................................................................... 7

Higher level objectives to which the project contributes .................................................... 8

PROJECT DESCRIPTION ................................................................................................. 9 Lending instrument ............................................................................................................. 9

Program objective ............................................................................................................... 9 Project development objective and key indicators ............................................................ 10

Alternatives considered and reasons for rejection ............................................................ 12

IMPLEMENTATION ........................................................................................................ 13 Partnership arrangements .................................................................................................. 13

Institutional and implementation arrangements ................................................................ 13

Monitoring and evaluation o f outcomes/results ................................................................ 15

Sustamablhty ..................................................................................................................... 16

Critical r isks and possible controversial aspects. .............................................................. 17

Loadcredit conditions and covenants ............................................................................... 18

APPRAISAL SUMMARY ................................................................................................. 18 Economic and financial analyses ...................................................................................... 18

Technical ........................................................................................................................... 19

Lessons learned and reflected in the project design .......................................................... 11

. . .

........................................................................................................................... Fiduciary 19

4 . Social ................................................................................................................................. 20

5 . 6 . Safeguard policies 21

7 . Pol icy exceptions and readiness 21

Environment ...................................................................................................................... 20

............................................................................................................. ........................................................................................

Annex 1: Country and Sector or Program Background ......................................................... 23 Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies ................ 41

Annex 3: Results Framework and Monitoring ........................................................................ 42

Annex 4: Detailed Project Description ...................................................................................... 48

Annex 5: Project Costs ............................................................................................................... 53

Annex 7: Financial Management and Disbursement Arrangements ..................................... 57 Annex 6: Implementation Arrangements ................................................................................. 54

Annex 8: Procurement Arrangements ..................................................................................... 65 Annex 9: Economic and Financial Analysis ............................................................................. 76 Annex 10: Safeguard Policy Issues ............................................................................................ 95 Annex 11: Project Preparation and Supervision ..................................................................... 97

Annex 13: Statement of Loans and Credits .............................................................................. 99 Annex 14: Country at a Glance ............................................................................................... 100

MAP N o . IBRD 33443

Annex 12: Documents in the Project File ................................................................................. 98

REPUBLIC OF MALI

Does the project depart f rom the CAS in content or other significant respects? Re$ PAD A.3 Does the project require any exceptions from Bank policies? Re$ PAD D. 7 Have these been approved by Bank management? I s approval for any policy exception sought from the Board?

EDUCATION SECTOR EXPENDITURE PROGRAM I1

o Yes X N o

Yes X N o Yes o N o Yes o N o

PROJECT APPRAISAL DOCUMENT

AFRICA

AFTH2

Director: Pedro Alba

ng instrument: Specific Investment Loan

[ 3 Loan [XI Credit [ ] Grant [ ] Guarantee [ 3 Other: For Loans/Credits/Others: Total Bank financing (US$m.): 35.0 Proposed terms: Standard, with 40 years maturity

IBRD/IDA Others

Borrower: Ministry o f Economy and Finance Bamako, Republic of M a l i

Responsible agency: Ministry o f National Education,

Estimated disbursements (Bank FY/US$m)

1

Project development objective Re$ PAD B.2, Technical Annex 3 The project objective is to increase the proportion o f Mal ian children completing a quality f i rs t cycle o f basic education and improve the overall efficiency o f resources used in the education sector. The proposed three-year project will: (i) improve the quality o f basic education; (ii) increase access to education; and (iii) strengthen institutional management capacities in education sector and program coordination management. Project description [one-sentence summary of each component] Re$ PAD B.3.a, Technical Annex 4

The three-year project has the three fol lowing components: 1. Improving the quality o f basic education through: (a) the establishment o f reading areas in about 25 percent o f classrooms in the first cycle o f basic education and equipping o f libraries in 5 Teacher Training Institutes; (b) implementation o f the Direct Support to Improve School Productivity scheme to purchase school supplies for schools having an operational School Management Committee; and (c) support to certification o f about 3,000 community school teachers through the provision o f a 60-day in- service training and provision o f 60-day accelerated training for about 1,800 new teachers; 2. Increasing access to education through: (a) the construction o f schools in the f i rs t and second cycles o f basic education (970 classrooms); (b) the construction and equipment o f a general secondary school (for about 600 students); and (c) support to apprenticeship programs in key areas o f youth employment; and 3. Strengthening o f institutional management capacities in education sector and program coordination, especially in the fol lowing areas: (a) management o f human resources; (b) budgetary and financial management, regulatory framework; (c) establishment o f an Integrated Education Management Information System; and (d) program coordination and management, including the carrying out o f Learning Assessments. Which safeguard policies are triggered, if any? Re$ PAD D. 6, Technical Annex 10 Environmental Assessment (OP/BP/GP 4.01) Involuntary Resettlement (OP/BP 4.12) [Imported from the PAD main text] Significant, non-standard conditions, if any, for: Re$ PAD C.6 Board presentation: None

Loadcredit effectiveness: Condition o f Effectiveness: 0

0

0

The Recipient has signed an agreement with ANICT; the Recipient has updated the Project Implementation Manual (PIM); the Recipient has recruited a financial external auditor for the project under terms and conditions acceptable to the Association.

2

A. STRATEGIC CONTEXT AND RATIONALE

1. Country and sector issues

Mal i i s one of the poorest countries in the world-ranking 174th out o f 177 in the United Nations Development Program’s 2004 human development index. Approximately 63 percent o f the Malian population lives below the poverty line, and 20 percent l ives in extreme poverty. The estimated literacy rate for adults in Mal i has reached only 26 percent. During the past decade, Ma l i has experienced many positive changes. Growth in gross domestic product (GDP) averaged 5.2 percent for the 1995-2000 period and 6.8 percent for the 2000-2004 period. Yet because o f population growth (the population increased to 8.5 mill ion inhabitants in 1990 to about 11.8 million inhabitants in 2004), the average annual growth in GDP per capita f iom 2000 to 2004 was only 4 percent.

Government’s education strategy. In 2000, the government o f M a l i set forth i t s vision and strategy for the country’s education sector in the Ten-Year Program for the Development o f Education (PRODEC) which lays the groundwork for promoting the universal completion o f primary education. An Education Sector Investment Program (ESP) in three-phase was conceived to help Mal i achieve this program.

In the last 10 years, the expansion o f education in Mali, measured in terms o f access to education, has been among the highest in sub-Saharan Africa. On average, Ma l i has experienced 8.5 percent annual growth in primary education enrollment, 14.4 percent annual growth in lower secondary education, 8 percent growth in upper secondary education and 21 percent growth in higher education. As a result, and despite a strong growth o f the population (2.6 percent average annual growth rate during the last decade), Ma l i has successfully increased access to primary education from an enrollment rate o f 47.8 percent in 1996-97 to 72.2 percent in 2004-05. Yet Mali’s primary education completion rate i s s t i l l as low as 41.6 percent, which means that 6 out of 10 Malian children do not complete their primary education. To reach the Millennium Development Goals o f Education for All, Ma l i needs to quicken the pace o f primary education development and mobilize additional resources for this level.

Persistence of disparities in primary education. Despite the expansion o f access to primary education in Mali, disparities persist. First, parents, mostly from lowest income families, have s t i l l to pay for the schooling o f their children in community-owned and managed schools since their teachers receive in the form o f government subsidies only one-fourth o f the salary o f contractual teachers in public schools. Indeed, the public sector could hardly catch up with the demand for education, and community schools, which progressed more rapidly in terms o f primary school enrollment (at an average annual rate o f 12 percent compared to 8 percent for public schools) now represent 17 percent o f total enrollment in primary (up from 2.5 percent o f total enrollment in 1996).

Second, the gender gap has worsened, with the differential in the completion o f primary education between boys and girls increasing from 13.8 points to 18.6 points. This has occurred despite the fact that some substantial gains were made in the gross enrollment rate o f girls (from

3

46 percent of to 61.9 percent during ESP I), and the completion rate for girls (16.8 percent in 1997 to 3 1.5 percent in 2005) in primary.

Third, regional and u r b d r u r a l disparities remain important, despite the initiatives taken to decentralize the management o f the education sector. The primary education gross enrollment rates in the Timbuktu (46.2 percent), Kayes (49.5 percent), or Mop t i (50.3 percent) regions, for example, are w e l l below rates for the Gao (94.1 percent), Bamako (105 percent) and Koulikoro (1 07 percent) regions.

Low quality of education. The high level o f grade repetition at a l l levels o f education in M a l i has not been reduced. As a result o f grade repetition, considerable public resources are wasted (about 30 percent are lost at primary level), children’s motivation to go to school i s reduced, and parents may remove their children from school.

The quality of education in M a l i remains a major concern, and the country’s academic achievement scores in reading and math are among the lowest o f francophone Afr ican countries (along with those o f Niger and Chad). The 2005 Learning Achievement Assessment (PASEC) shows that just 51.5 percent o f the students in grade 2 in M a l i achieved the average score in languageheading, and 48.5 percent o f students the average score in mathematics. Among students in grade level 5, only 43.1 percent received an average score in languageheading and 42.5 percent received an average score in mathematics. The l o w quality o f education has profound consequences on the country’s literacy rate. Only 50.9 percent o f the adults (22-44 years) with six years o f education can read fluently. By comparison, the average literacy rate in francophone Afr ican countries i s 71.6 percent. Among the main causes o f the l ow quality o f education are: (i) the lack o f qualified teachers leading to a high student-teacher rat io-84 to 1 in urban areas and 53 to 1 in rural areas; (ii) the insufficient provision o f textbooks (the books- students i s 1.4 to 1 even though a ratio o f 2 to 1 had been programmed); (iii) the insufficient training o f teachers for implementing the new curriculum; and (iv) an ineffective learning assessment and performance monitoring system.

Underfunding of primary education. The share o f Mali ’s GDP dedicated to education rose from 3.02 percent in 2000 to 3.24 percent in 2004. This share i s comparable to the average for low-income Afr ican countries but below the 3.8 percent o f GDP average o f the best performing Afr ican countries.

During the last decade, the education budget in M a l i has quadrupled, and the level o f expenditure by children ages 6 to 14 has doubled. However the share o f education in the overall government budget remains at 23 percent-below the originally planned target o f 27 percent set in ESP I.

M a l i dedicates 35 percent o f i t s education budget to primary education, 43.7 percent to secondary and 16.3 percent to higher education. The 35 percent dedicated to primary education is much less than the 49.3 percent that the francophone Afr ican countries dedicate on average to primary education and also less than the 50 percent that the Education For All Fast Track Initiative i s recommending. To correct this unbalance and to reach the Mil lennium Development

4

Goals in a sustainable way, Mali’s MoE will have to increase the budget allocation for primary education and make efficiency gains in secondary and higher education.

Inefficiency in secondary and higher education. The demand for secondary education in the country i s growing rapidly, and the growth enrollment rate in secondary education increased from 26.3 percent in 2001-02 to 38.4 percent in 2004-05. M u c h o f this growth was absorbed by the private sector, which represents one-third o f total enrollment in general secondary education and two-thirds in vocational and technical secondary education. In public general secondary and in technical and vocational training, unit costs are extremely high. Public general secondary unit costs are 10 times higher than unit costs in primary education, and unit costs for vocational and technical secondary education are 20 times higher. The reasons are the following: (i) the curriculum offers too many disciplines, thereby leading to teacher-student ratios ranging f rom 13 to 43 students per teacher (24.6 students per teacher o n average in upper- secondary schools compared to 46 students per teacher in lower-secondary schools); (ii) grade repetition rates remain high-23.9 percent in lower-secondary school and 29 percent in upper- secondary school; and (iii) operating costs constitute a high proportion (37 percent) o f total costs because o f the high proportion o f non- teaching staff (42 percent o f total staff in M a l i vs. an average o f 20 percent in similar countries).

University enrollment in M a l i i s spiraling out o f control-increasing from 19,4 1 1 students in 2000 to 36,105 students in 2004-2005-already far more than the 31,000 students expected for 2008. This situation i s caused by a combination o f the following: (i) unlimited access for students to university; (ii) an increase in the time necessary for students to graduate from the university due to high repetition rates; (iii) lack o f management and control; and (iv) a non- targeted scholarship system that provides incentives for students to stay in the university system. The private higher education sector expanded, during the last f ive years to serve now approximately 3,000 students (8 percent o f total higher education enrollment); however, the regulatory framework and fiscal incentives are not in place to ensure quality in about 50 small and vulnerable, private higher education institutions. Even though the unit cost o f public spending on university students is 16 times the unit cost for primary education students, the quality and external efficiency of Mali’s university system are very low. There is a mismatch between the growth in some disciplines and labor market needs, and the university system is unable to produce the number o f qualified professors needed.

Weak institutional capacity. Despite the MoE’s efforts in the ESIP I to decentralize the management o f education (15 Academies were created in the nine regions and the District of Bamako, and 70 Pedagogical Act iv i ty Centers (CAPS) were established), Ma l i lacks sufficient institutional capacity to handle the issues resulting f rom the explosive demand for education and to ensure an efficient delivery o f education services. During E S P I, (i) only 3,000 new classrooms were built, although 6,000 new classrooms had init ial ly been programmed; and (ii) only 620 teachers were trained annually, although 2,500 would have been necessary. The regulatory and institutional framework and planning and monitoring instruments needs to be adapted to ensure the management a more decentralized and diversified education system. The M o E should also improve i t s planning instruments to efficiently allocate resources among regions and to support the transfer o f the schools to the municipalities in 2007.

5

Achievements of ESIP I. During E S P I (2001-05) most objectives related to increasing access to education and decentralizing the management o f Mali’s education sector have been achieved. In addition, the country’s education budget remained within agreed-upon Medium- Term Expenditure Framework (MTEF), and every year, more than 95 percent o f the education budget has been implemented. However this expansion o f education access has been done at the expense o f education quality and equity. Grade repetition rates have worsened, and learning achievement goals remain wel l below the target. Some components o f ESIP 1 are lagging behind with respect to the use o f an effective planning tool for school mapping and allocation of resources and quality assessment with the development o f reading test reflecting the use of national languages.

1999-2000 Performance indicators of ESIP I Target Actuals

2005) (2004- 2004-2005

Textbook ratio per primary student Grade repetition in primary school Grade repetition in middle school Grade repetition in secondary school Dropout rate in primary school

2 1.4 22 13 18.6 20 10 24 25 13 29 8 5 5

Government’s education strategy and ESIP 11. The government o f M a l i i s engaged in a broad process to improve the education pol icy and to adapt the E S P implementation mechanisms to a more decentralized context. The choices are reflected in the 2006-2009 E S P I1 largely result from: (i) the dialogue the M o E has maintained with al l partners, including the Bank during the implementation of E S P I (working groups were established to discuss specific topics such as access to basic education, institutional development, higher education, technical education, and vocational training); (ii) the Country Status Report (CSR), which provides a comprehensive analysis of the education sector; and (iii) a series o f studies, including an institutional audit, a learning assessment in grades 2 and 5, an audit o f construction, a Public Expenditure Tracking Survey (PETS) in education, and a sub-sector analysis o f vocational

6

training and technical education, apprenticeship programs, and higher education (a complete l i s t of the studies i s in the l i s t o f documents in the project f i le in Annex 12).

The Country Status Report provided the opportunity to improve the planning process through a simulation model, which helps to make the most appropriate strategic choices to reach the Millennium Development Goals in a more sustainable way. The main strategic choices are summarized in a letter o f education policy included in the project fi les . On the basis o f the selected scenario, the MoE updated the Medium-Term Expenditure Framework (MTEF). The MTEF, which was validated by Mali’s Ministry o f Finance on May 18, 2006, provides the budgetary framework for the ESP I1 and i s included in the economic and financial analysis in Annex 9.

The government o f Ma l i i s committed to pursuing the implementation o f i t s Ten-Year Program for the Development o f Education (PRODEC). To support i t in a sustainable way, ESP I1 seeks to intensify i ts efforts in the following directions: (i) implementing a more decentralized approach to class-room construction and teacher recruitment; (ii) promoting more equity and stimulating demand by the financing the training and the salaries o f teachers in community based school initiatives; (iii) increasing the recruitment o f qualified teachers by improving the quality and efficiency o f pre-service training in Teacher Training Institutes (IFMs) and in the training o f about 2,500 teachers every year through the IFMs and the accelerated training program (Alternative Teaching Staff Recruitment Strategy); (iv) improving the quality o f education through the provision o f free textbooks and direct support to the schools for the purchase o f teaching materials, in-service teacher training, and a comprehensive reading strategy as part of the new curriculum; (v) regulating enrollment growth at entry to secondary education level to orient more students toward vocational training and apprenticeship programs; (vi) improving resource allocation, promoting efficiency gains, and stimulating private sector development at secondary and higher education levels; and (vii) transferring responsibilities for primary schools to municipalities in 2007 and responsibilities for secondary schools to the regions, while improving the planning and management to ensure a better allocation o f resources and reduce disparities.

The ESP I1 i s a sector-wide approach to the development o f education in Mali. The project that i s to be financed by the national budget and donor community, including the World Bank, has the following components that are described in detail in Annex 1 :

e

e

e

e

Component I: Development o f Quality Basic Education Component 11: General Secondary Education (ESG), Technical and Vocational Education (ETP), and Vocational Training by Apprenticeship Component 111: Development and Implementation o f a Sustainable Policy for the Development o f Higher Education and Scientific and Technological Research Component IV: Transparent and Participatory Management, Decentralization and Planning of Education.

2. Rationale for Bank involvement

The World Bank i s engaged with the government o f Ma l i in a three phase program ESP to support the Ten-Year Program for the Development o f Education (PRODEC) initiated in 2000

7

in order to help the country to achieve the Millennium Development Goals o f Education for All, in. The closing date for ESIP I was first extended to June 2006. A second extension to December 2006 has been requested to allow for the completion o f constructions and full credit disbursement.

The timely preparation o f ESIP 11, in l ine with the budget cycle, would ensure continuity of education sector financing. This operation i s consistent with the low case scenario o f the fiscal year 2004-06 Country Assistance Strategy for Mali, which proposes working with donors to strengthen the programmatic approach in the health and education Sector-Wide Approach (SWAP) with two separate operations in health and education in fiscal year 2006 with the goal o f moving to full budgetary support via a Poverty Reduction Support Credit (PRSC).

The implementation o f ESIP I1 i s crucial to ensure that the priorities and reforms o f the first phase are sustained: (i) financing o f the MTEF to ensure that a priority to basic education be maintained in the budget; (ii) the progress to a more decentralized management o f the education sector with the transfer of primary schools to municipalities and o f secondary schools to the regions in 2007; (iii) the enhancement o f the training o f contractual teachers locally who represent currently 61 percent o f total teaching staff in 2005 and wil l increase to 88 percent in 201 5; and (iv) the implementation of the new curriculum (based on pkdugogie convergente) in primary education to include local languages as a medium o f instruction in lower grades.

The International Development Agency’s (IDA) U S 3 5 mill ion contribution i s critical for the mobilization of about US$190 mill ion o f external resources for the education sector. In addition, the Bank plays an important role in helping the government o f Ma l i to define the best strategic options toward sustainable education development and completion o f the Mi l lennium Development Goals in the education sector through: (i) the Country Status Report completed in January 25, 2006; (ii) the planning o f the education sector with the preparation o f a sustainable scenario and updating o f the MTEF; and (iii) a Public Expenditure Tracking Survey (PETS) in the education sector. In addition, the Country Economic Memorandum, to be done in parallel with the preparation of this lending operation, would provide for a better understanding o f the relationship between education and economic growth. Ultimately, the World Bank’s Financial Monitoring Reports (FMRs) will be used by the government o f Ma l i to monitor and report for the entire ESIP 11.

3. H i g h e r level objectives to which the project contributes

The ESP I1 contributes to the long term development objectives o f strengthening the country’s human resource base to support economic growth and reduce poverty. As such, it i s fully in l ine with the 2002 Poverty Reduction Strategy Paper’s strategic pillars: (i) accelerated and re-distributive growth; (ii) promote institutional development while improving governance and participation; (iii) develop human resources and improve access to quality basic services; and (iv) develop basic infrastructure and productive sectors.

The ESIP I1 i s also fully consistent with the fiscal year 2004-06 Country Assistance Strategy objectives for Mali, in particular, with the following: (i) the development o f vocational training and apprenticeship programs and the promotion o f the private sector; (ii) the

8

improvement o f access to quality basic education services to the poorest quintile o f the population and decentralized community management o f the schools; and (iii) the strengthening of budget programming and performance based financing.

B. PROJECT DESCRIPTION

1. Lending instrument

The lending instrument for ESIP I1 is a Specific Investment Loan SIL. This choice has been considered the most appropriate with respect to the Bank’s procurement and auditing procedure and to ensure a better tracking o f our financing.

ESIP I1 moves out o f the init ial APL approach for the fol lowing reasons: (i) the framework i s somehow too rigid given the changes in the environment and the program proposed by the Government; (ii) some monitoring indicators and baseline values needed to be changed and improved with the results o f the Education CSR; (iii) some o f the triggers, in particular those with respect to the decentralized management o f the education sector, were too vaguely defined; and (iv) as recommended in the CAS, a PRSC might replaced the phase I11 init ial ly envisioned in the APL.

The International Development Agency’s (IDA) US$35 mi l l ion credit, in coordination with 14 other donors, will support the E S P I1 through a Sector-Wide Approach (SWAp). The Netherlands (also representing Sweden and Norway), Canada (Canadian International Development Agency, ACDI), and France (French Development Agency, AFD) will finance ESP I1 through about US$190 mi l l ion budget support. In the SWAp, donors support the same government pol icy orientations (PRODEC) and education program, use the same monitoring indicators, and joint ly supervise the ESP 11. When it comes to the content o f the program, some donors can support a specific component with their own instrument and according to their comparative advantage. These include the U. S. Agency for International Development (USAID), the United Nations Children’s Fund (UNICEF), Switzerland, Belgium, the U.N. Development Program (UNDP), Japan, Germany, the Inter-American Development Bank (IDB), the Asian Development Bank (ADB), the Food and Agriculture Organization (FAO) o f the United Nations. Some donors (France, Canada) participating in the budget support in parallel a technical assistance program.

2. Program objective

The objective o f the ESIP Ten-Year Program i s to provide increased and equitable access to higher quality education

For ESP 11, IDA financing will focus the efforts on the areas o f the program deemed

0 reach the Mi l lennium Development Goals and in particular the improvement o f access and completion o f primary education;

critical to do the following:

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a address the shortcomings in the implementation o f E S P I particularly for the constructions, teacher training , distribution and use o f textbooks, reduction o f repetition rate and improvement o f learning achievement; reduce the cost o f schooling and increase demand for the poorest families; reduce regional disparities in access to education services in a more decentralized context through better planning and allocation o f public expenditure; and improve the efficiency in the use o f public resources by reducing unit costs, strengthening management capacities, and better performance monitoring.

a a

a

3. Project development objective and key indicators

The project objective is to increase the proportion o f Mal ian children completing a quality first cycle o f basic education and improve the overall efficiency o f resources used in the education sector.

The three-year project has three components each o f which i s discussed in detail in Annex 4:

1. Improving the quality of basic education through: (i) increasing reading practice through the setup o f a reading area, including the necessary textbook stocking devices and books in 25 percent o f the classrooms o f schools in the first cycle o f basic education (4,600 classes to be equipped) and equipment o f libraries and school textbooks in five Teacher Training Institutes (IFMs) (2,000 textbooks per IFM); (ii) a direct support through grants to al l schools in the first cycle o f basic education having an operational School Management Committee for purchasing school supplies to purchase school supplies; (iii) a 60-day (working days) in-service training for the certification o f 3,000 community school teachers and a 60-day (working days) accelerated training program and 60-day in-service follow-up (Alternative Teaching Staff Recruitment Strategy) for 1,800 new teachers.

2. Increasing access to education through: (i) the construction o f schools at the f i rs t and second cycles o f basic education (970 classrooms) including their equipment with k i t u r e , water supply and latrines; (ii) the construction and equipment o f a general secondary school (for 600 students); and (iii) the support o f apprenticeship programs in key areas for employment o f out o f school youth.

3. Strengthening institutional management capacities of the education sector, especially in the fol lowing areas: (i) management o f human resources, including the evaluation o f managers, their training and adaptation to j o b profiles; (ii) the improvement o f resource allocation and efficiency through the strengthening of budgetary and financial management, a regulatory framework for the autonomous management o f technical and vocational secondary public schools and financing private education, the elaboration o f an instrument including school mapping to allocate resources more efficiently and reduce inequalities; annual audits including the assessment o f school construction and the management o f textbooks; iii) set-up o f an Integrated Education Management Information System; and (iv) program coordination and management including learning assessment in the year 2007 and at the end o f the project.

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The k e y performance indicators for the project are listed in the table below. To better measure progress toward reducing the inequalities, a l l outcome indicators will be reported by gender and regions.

1. Completion rate in primary education (grade 6) 2. Percentage o f students reaching average score in language reading and mathematics in grade 2 and 5 (PASEC baseline)

3. Share o f primary education spending in the education budget

4. Number o f additional community school teachers who have been trained

5. Percentage o f primary school teachers who have received cumulated initial training o f at least 6

ESIP I1 outcomes indicators Baseline school year

43.2% Grade 2: 5 1 % in language reading 48% in math Grade 5: 43% in language reading 42% in math 35%

2004-2005

200

35%

available at class room level in basic education 8. Grade repetition rates:

Primary education Lower secondary education Secondary education

9. Percentage o f non teaching staff on total education sector staff

18.6% 23.9% 29%

24%

Target school year

56.4% 60%

2008-2009

40%

3200

71%

1 1000 90%

13.7% 18.8% 22.1%

4. Lessons learned and reflected in the project design

The lessons learned from the implementation o f the ESIP I in M a l i which have been

The design o f the project should be kept simple, with a focus on the k e y areas o f basic education (teacher training, provision o f textbooks, classrooms infrastructure, and direct support to schools) and o n monitoring the action pladpol icy measures at a l l levels o f the education system that are needed to improve the overall efficiency o f the education sector and to ensure that M a l i remains on track for reaching universal primary education.

reflected in the design o f the project are the following:

e

11

a 20Although E S P I represents an important first step toward a comprehensive programmatic approach to Mali’s education sub-sector, the government and donors realized that the design and financing modalities would have to go much further to harmonize donors’ rules and procedures with government systems so as to increase government ownership and reduce transaction costs.

Demand-side financing is needed to improve educational equity in Mal i . To lower the cost for low-income families and increase girls’ participation in education, financing o f teachers in community schools (salaries, training and teaching material) by public resources and direct support should be provided to al l the schools for purchasing school supplies teachinglearning materials will continue. Those measures complement actions financed by other donors (UNICEF or World Food Programme) to provide school meals and improve students health.

A strong program o f institutional strengthening and technical assistance i s necessary in M a l i to improve (i) education planning and budget programming at national and regional levels to support the 2007 decentralization process and ensure an efficient allocation o f resources; and (ii) management capacities in municipalities in particular for school construction.

The construction and rehabilitation o f schools should be done through direct funding to the municipalities.

a

a

a

According to the Wor ld Bank’s Operations Evaluation Department’s (OED) March 2006 evaluation of the Bank’s support to primary education, the Bank’s efforts should focus more on the objectives o f (i) improving learning outcomes among the disadvantaged; (ii) strengthening management capacity o f the education sector in support o f learning outcomes; and (iii) reorienting with its development partners the Fast Track Initiative toward both universal completion and improved learning outcomes.

5. Alternatives considered and reasons for rejection

The following alternatives for were considered and rejected:

a Integrating education and health into a Poverty Reduction Support Credit (PRSC) for Mali. This was not possible, because a PRSC i s only envisioned in fiscal year 2008 if an agreement can be reached for the restructuring o f the country’s cotton sector. Thus, this project i s conceived as a transition toward a full PRSC.

a Using Development Policy Lending for a budget support to the education sector and including this project into the now approved Economic Policy and Public Finance Management Credit. W e choose the Specific Investment Loan as lending instrument in order to be able: (i) to track Bank‘s financing to make sure that these additional resources will be allocated mainly to basic education; (ii) to carry out external audits to mitigate the financial risk and to ensure that the expenditures are used efficiently for the right purpose; and (iii) to support a three year program in coordination with our partners when

12

the Economic Policy and Public Finance Management Credit i s only a one year operation.

@ Including in-service teacher training and school-based management in the IDA- financed project components for institutional strengthening in the municipalities. This was not necessary, as France (AFD), Canada, and U.S. Agency for International Development are heavily focusing their financing and technical assistance at this level.

C. IMPLEMENTATION

1. Partnership arrangements

The ESIP I1 wil l use the same partnership arrangements that have been implemented successhlly in Ma l i from 2001-2005 in the ESIP I. Fourteen bilateral and multilateral donors have worked in partnership with the government o f Ma l i to support the Ten-Year Program for the Development o f Education (PRODEC), initiated in 2001.

Mali’s Ministry of National Education’s (MoE) Planning and Statistical Unit (CPS) and the donors will continue holding monthly meetings to monitor progress on implementation o f the ESIP 11. The group i s chaired by the Minister in charge o f Education, and co-chaired by a donor for a renewable six-month rotation period. Ministerial departments and donors work together in five technical commissions, and the responsibilities o f the follow-up o f specific analytical works are distributed among donors.

The donors participating in ESP I1 provide harmonized support to the same policy orientations, MTEF and education program. They wil l organize joint supervision missions twice a year using the same documentation and common performance indicators. Quarterly Financial Monitoring Reports wil l be made available by the Government to all donors during the implementation of the ESIP 11. Ultimately, donors will coordinate their technical assistance programs to ensure complementarity.

2. Institutional and implementation arrangements

Mali’s M o E will have the responsibility o f the implementation o f the ESP I1 and will coordinate i t s efforts with those o f the Ministry o f Employment and Training (MEFP), which wil l have the responsibility for the apprenticeship program. The primary responsibility for providing overall guidance regarding the scope and direction o f the ESP I1 wil l rest with the Cabinet Council o f the MoE, which i s chaired by the Minister in charge o f Education.

The ESIP Steering Committee i s a consultative group chaired by the Secretary General o f the MoE and i s composed o f the central technical departments. The committee’s Secretariat function i s ensured by the CPS.

The MoE’s Planning and Statistical Unit (CPS) i s responsible for the following: (i) providing support to the MoE’s technical departments, the Teaching Academies, the Pedagogical Activity Centers, in the formulation and implementation o f their annual work program, preparing

13

and submitting progress reports, updating o f the Program’s performance and impact indicators, ensuring that audit reports are done and recommendations are implemented; ii) coordinating actions o f donors and private and public partners; and iii) ensuring the Secretariat o f the Cabinet Counci l and o f the PISE Steering Committee.

The fol lowing entities have responsibilities for implementing specific components o f the

The MoE’s and the MEFP’s central technical departments are responsible for the monitoring implementation o f their respective components.

A E s and CAPS are responsible for executing activities at the regional level, in particular teacher training with the Teacher Training Institutes (IFMs).

School Management Committees (CGS) are responsible for the execution o f resources transferred by the Direct Support to Improve School Productivity

a The National Investment Agency o f Territorial Authorities (ANICT) i s responsible for managing the funds and handling the fiduciary h c t i o n s o f the component dedicated to school construction, and municipalities are responsible for the school construction at the primary education level. A N I C T has already an acceptable financial management capacity as assessed during the IDA-financed Rural Community Development Project (PACR).

The Fund to Support Vocational Training and Apprenticeship (FAFPA) i s responsible as executing agency for apprenticeship programs.

IDA-financed portion o f the E S P I1 project as follows:

e

0

a

( A D A R S ) .

0

The E S P I1 wil l use the institutional and implementation arrangements o f ESP I as detailed in the Project Implementation Manual. This manual will be finalized before credit effectiveness to include the new features o f ESIP I1 and in particular the use o f A N I C T for the construction and rehabilitation and FAFPA as executing agency for apprenticeship programs. A detailed description o f institutional and implementation arrangements for ESIP I1 is presented in Annex 6.

Previous financial management arrangements set up during E S P I will prevail: the Administrative and Financial Directorate (DAF) will handle the financial management.

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3. Monitoring and evaluation of outcomes/results

The CPS i s responsible for collecting data on the indicators for ESIP 11. A common monitoring and evaluation framework has been established for the ESP I1 under the Sector- Wide Approach (SWAP) (see Annex 3), and key performance indicators have been selected for the IDA-funded project.

The monitoring and evaluation o f progress toward reaching the objectives wil l be done through the annual school census and the statistical yearbook, quarterly Financial Monitoring Reports (FMRs), the learning assessments, the annual technical and financial implementation report o f ESP 11, and technical audits and surveys.

The annual school census in basic education provides a wealth o f information that can be used to monitor inputs and evaluate outputs and outcomes at national and regional levels. Baseline information and key outcome indicators, including school enrollment, admission and retention rates, are already collected by the M o E through the Planning and Statistical Unit (CPS) and reported in disaggregated format by gender and region to track disparities. During ESIP 11, the content o f the statistical yearbook will be extended to preschool education, informal and special education, and secondary and higher education levels. A permanent technical assistance i s provided by the French cooperation to elaborate the statistical yearbook. During ESIP 11, the different databases will be consolidated in an Education Management Information System and equipment and communication will be upgraded for a better transmission and filing o f data.

The methodology to elaborate and monitor indicators has been improved with the technical assistance provided for the preparation o f the Country Status Report and the projection model to update the MTEF. These indicators are collected according to the international standards developed by the P6Ze de Dakar to allow for cross-country comparisons. The National Education Center (CNE) will conduct a national Learning Assessment at grades 3 and 5 every two years (in year 2007 and at the completion o f the ESP 11) using a representative sample o f schools and students as well as improved learning assessment tools (methods and design). Technical assistance will be provided for the additional development and implementation o f learning assessment methods. Measurable short- and long-term indicators o f learning achievement, particularly in reading and math in both French and local languages, wil l be developed.

15

Two joint missions will be organized every year to review progress made in

0 In May/June, the following wil l be reviewed: (i) the assessment o f the implementation o f the action plan and o f the recommendations made in the November mission; (ii) the education budget execution and the Financial Monitoring Report o f ESP 11; (iii) the monitoring and outcome indicators o f E S P I1 and the Statistical Yearbook; (iv) the Public Expenditure Review o f the education sector; and (v) the outline o f the budget projected for the next fiscal year.

In November, the following will be reviewed: (i) the annual technical and financial implementation report o f the E S P 11; (ii) the monitoring and outcome indicators; (iii) the financial and physical audits; and (iv) the updated MTEF, the education budget and the action plan o f E S P I1 for the next fiscal year.

implementing the program:

0

2. Sustain ability

Three elements o f the project support sustainability:

High government priority. The government o f M a l i i s highly committed to implement the Ten-Year Program for the Development o f Education (PRODEC). During the first five years o f implementation o f E S P I, education remained the first priori ty under the government’s Medium-Tern Expenditure Framework (MTEF) and was thus safeguarded from expenditure cuts.

0 Strong financing commitment. The government o f M a l i currently allocates approximately 23 percent o f the national budget to education, about 35 percent o f which goes to primary education. In the MTEF, the government intends to raise the share o f the budget allocated to education to 27 percent and to increase the share o f that going to primary education to 40 percent.

Strong participation of communities. There i s a strong demand for education among the population o f Mali, as indicated by the growth o f enrollment and the willingness o f low-income families to contribute to the creation o f community- owned and managed schools when public schools are not available.

0

16

5. Critical risks and possible controversial aspects

Risks

[f the macroeconomic situation leteriorates, resources from donors might be used to finance Bther priorities or might not even be added to the domestic resources allocated for the education sector. [nstitutional and behavioral zonstraints might prevent the Ministry o f National Education (MoE) from implementing the reforms to address inefficiency at post basic education level.

Weak financial management and risk that funds will not be used for the intended purpose

Weak capacity at central and local levels o f the M o E to undertake the functions o f planning, financing and monitoring performance and control resources allocation and outcomes in a more decentralized context.

With the presidential election coming in 2007, the newly elected government might change priorities.

Risk Ratings: H (High Risk), S (S

Risk mitigation measures

The joint supervision organized every year in May will appraise whether the education budget i s prepared within the agreed upon Medium-Term Expenditure Framework (MTEF) .

Key policy reforms are spelled out in the Letter o f Education Development Policy to be agreed upon at negotiation stage, and policy measures will be closely monitored.

The Administrativeand Financial Directorate (DAF) i s qualified and experienced. And the conclusions o f the external audits will be used if necessary to reinforce existing national internal control. The government o f Ma l i i s committed to implementing the Public Financial Management (PFM) Reform Action Plan incorporated in the current Development Policy Credit (DPC) adopted in 2005.

Risk *sting M

5

M

The E S P I1 includes in Component I11 a program to strengthen institutional capacities in the M o E at central and regional level (AE) to improve the following: (i) management o f human resources; (ii) financial management; and (iii) allocation o f resources to the decentralized level based on the school mapping system. This program i s coordinated with the technical assistance provided mainly by France (AFD), Canada (ACDI), and the U.S. Agency for International Development, to strengthen institutional and management capacities at local level in Pedagogical Activity Centers (CAPS), municipalities and schools and to train

With seven donors representing 18% o f the total education budget and using the same disbursement indicators, the chances are increased that the new government will remain on track with the fiscal

xtantial Risk), M (Moderate Risk), N (Negligible or L o w Risk

Overall Risk rating i s moderate and wil l be mitigated by a technical support for institutional strengthening through the collaborative donor framework.

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6. Loadcredit conditions and covenants

Condition o f Effectiveness: a

a a

The Recipient has signed an agreement with ANICT; the Recipient has updated the Project Implementation Manual (PIM); and the Recipient has recruited a financial external auditor for the project under terms and conditions acceptable to the Association

D. APPRAISAL SUMMARY

1. Economic and financial analyses

The investment in schooling, in terms o f mobil izing resources (public and private, financial and on time) to produce qualified individuals for productive life, has a high rate o f return in Mal i . The rate o f return i s about 10 percent for the first years o f schooling and substantially increases with the number o f years o f education (1 5 percent for a complete primary education and about 25 percent at the secondary level).

The cost o f the three-year Medium-Term Expenditure Framework (MTEF) for implementing the E S P I1 i s CFAF 562.5 bi l l ion (about US$1 billion). This cost is consistent with the current macroeconomic framework o f stability and positive growth and the Poverty Reduction Strategy Paper’s goals for the priority sectors and the sustainable scenario that has been selected for the achievement o f the Mil lennium Development Goals in 2015.

At appraisal there was s t i l l a financing gap o f about CFAF 21.6 b i l l ion (about US$41 million) that the M o E expect to make up with additional external resources. The government o f M a l i is seeking resources from the Education for All Fast Track. If the additional resources do not materialize before effectiveness, Mali’s M o E would proceed with some cuts l ikely at upper levels o f E S P I1 that should not affect the project development objective.

The MoE made the fol lowing pol icy choices to ensure the sustainability o f E S P 11: (i) regulating enrollment growth at upper levels o f the education system by reducing the transition rate from the second cycle primary education to secondary education f rom 40 percent in 2005 to 35.7 percent in 2008 and, 28 percent in 2015 and an admission rate to baccalaureate o f 34 percent in 2008 and 50 percent in 2015; (ii) maintaining the pol icy o f recruiting contractual teachers and (iii) reducing slowly the students-teacher ratio f rom 63.5 students per teacher in 2004 to 58.6 students per teacher in 2008 and to 50 students per teacher in 2015; (iv) increasing significantly the salary o f community schools teachers; (v) reducing progressively the current cycle o f four years o f pre-service training to two years in 2010; (vi) limiting the cost o f education by controlling expenditures other than teachers’ salaries (which will decrease from 44.1 percent o f total expenditures in 2004, to 42.6 percent o f total expenditures in 2008, to 40 percent o f total expenditures in 201 5), whi le preserving a level o f pedagogical expenditures and a necessary support to ensure the quality o f teaching; (vii) reducing grade repetition rates at a l l levels o f education; (viii) in secondary education, reducing the students-teacher ratio, reducing non-teaching staff, and promoting private sector (education) to reduce unit costs; and (ix) in

18

tertiary education, reducing the share o f social activities in the budget and promoting private higher education and short-tern professional programs.

2. Technical

The technical design o f the components program o f the project to address the issues o f access, demand, quality and equity was prepared on the basis o f the technical and economic studies and in the light o f the lessons learned as well as demonstrated sound educational practice. The documents in the project fi les are listed in Annex 12.

In particular, Mali’s education sector policy emphasizes the following:

0 The progressive decentralization o f managing and financing o f the school system to accompany the transfer to municipalities in 2007 o f the primary schools. In particular for the school construction programs by ANICT, the local recruitment and training o f school teachers, the assistance provided by the Teaching Academies ( A E s ) and Pedagogical Activity Centers (CAPs) to the municipalities for school mapping and management.

The school as the focus for actions to improve the learning process. In particular by stimulating parents involvement in School Management Committees, providing direct support for school supplies and textbooks, developing in service training for the teachers (Communautk d ’Apprentissage) and increasing the inspection and technical assistance to the schools by the CAPS.

The better targeting and improvement o f the efficiency o f public resources through an institutional strengthening program which includes the management o f human resources, the school mapping, the improvement o f resources allocation to private education, the setup o f an Integrated Education Management Information System; the strengthening o f budgetary and financial management.

The improvement o f learning outcomes with the implementation o f the new curriculum in primary education, the learning assessments to be organized every two years, the promotion o f reading though the provision o f textbooks and reading areas, the promotion o f instruction in local languages in the two f i r s t years o f primary school, the emphasis on teacher training.

0

0

0

3. Fiduciary

Previous financial management arrangements set up during the f irst phase o f this program ESIP I will prevail and be reinforced where need be in ESP 11. The MoE’s Administrative and Financial Directorate (DAF) will handle the financial management o f the project. The DAF i s headed by a senior officer supported by sufficient accountants including officers and assistants regularly trained during the first phase o f this program. They should be capable o f directing and guiding the financial management operations o f the program.

In l ine with the decentralization process, school construction will be implemented by the Territorial Authorities (CTs). The related funds wil l be channeled through a public financial

19

management agency, the National Investment Agency o f Territorial Authorities (ANICT), which will handle the financial management function for the beneficiaries. ANICT has an acceptable financial management capacity as assessed during the preparation o f the IDA-financed Rural Community Development Project (PACR); hence, similar arrangements will be set up for this new operation, including the signature o f an agreement between government and ANICT. Disbursements o f IDA funds to a special account under ANICT’s full responsibility wil l be made through direct payment and according to the terms and conditions o f the project agreement to be signed.

The DAF, in liaison with ANICT, will prepare and submit Financial Monitoring Reports (FMRs) to all involved donors within 45 days o f end o f each quarter for the purpose o f monitoring the sector program implementation. These reports wil l provide the basis for disbursement o f IDA funds. Annual financial statistics will be prepared by the M o E and then be audited annually by an external auditor with terms o f references in l ine with internationally recognized auditing standards and acceptable to IDA. Annual audit reports will be submitted to IDA within six months after the end o f each fiscal year.

4. Social

The project i s likely to have a very positive social impact. By being heavily focus on access and retention in primary education, the project will mainly benefit the most disadvantaged children in rural areas, those who belong to the 30 percent who have no access to education services. By financing the training and salaries teachers o f the community schools and the provision o f school supplies and textbooks the ESP I1 will substantially lower the cost o f schooling for the families. This should have a positive impact on demand particularly to promote girls’ access to school. In addition the distribution and programming o f the school construction program by regions that has been agreed at appraisal will progressively reduce the geographic disparities with the perspective to reach universal access by 2015.

The impact o f education in alleviating poverty, improving literacy, and transmitting inter- generational access to education i s positive and important. The analysis o f the entire social sector on the basis o f data from the household survey done in Mal i in 2004 shows that the f i rs t cycle o f primary education i s the education level that generates the main social impacts-in particular, changing women’s behaviors in terms o f fertility, reproductive health and children’s health. In total, about 50 percent o f social effects i s achieved within the six years o f the first cycle o f primary education. The percentage i s higher for health variables (over 60 percent) than for population variables (about 40 percent). The second cycle o f primary education has positive impacts as well although the margin i s sensibly lower (about 25 points).

. 5. Environment

Mali’s M o E prepared an environmental assessment (ESMPF) and a Resettlement Action Plan (RFP) which were disclosed by the Government on April 7, 2006 to address the issues associated with the construction o f schools: (i) potential resettlement issues for the population located on the land on which the schools will be built; (ii) hygiene and sanitation issues linked with the construction o f latrines; (iii) waste disposal o f construction materials; (iv) loss o f natural

20

sites and bio-diversity; and (v) nonfunctional equipment or construction defects leading to safety issues for the users. The impact are likely to be minor for several reasons: (i) most o f the schools that are to be built in the program will be small (three school classrooms for no more than 150 students), simple in their design, and made o f local materials; (ii) the construction program benefits from the experience o f ESIP I; (iii) technical specifications and standards have been already elaborated by MoE and used by contractors; ANICT has already a large experience with Municipalities; and (iv) all the schools to be built will be equipped with latrines and connected to water.

This i s a category B project. The government o f Ma l i has already taken significant steps to protect i t s environment through a National Policy on Environmental Protection and a series o f legislative and regulatory texts for environmental protection and nature conservation-including a decree that describes the institutional framework for the management o f environmental issues (1998) and legislation (September 1999). Mechanism o f consultation are already in place and the key stakeholders for dealing with safeguards issues are the following: (i) the focal point for environment in the MoE; (ii) the National Investment Agency o f Territorial Authorities (ANICT); (iii) Technical Services in Municipalities; (iv) National Directorate for Sewerage and Control o f Pollution (DNACPN at national level and DRACPN at regional level); and (v) the population o f the localities where the schools will be built.

A consolidated environmental and resettlement action plan ( E m ) specific to the ESIP I1 program was elaborated by MoE to address safeguard issues identified and provide guidelines for the contractors involved in the construction o f schools will be included in the PIM. In addition, all schools to be built will respect technical specifications and quality standards that have been already prepared by MoE during the f i rs t phase o f the ESP.

6. Safeguard policies

Safeguard Policies Triggered by the Project Yes N o Environmental Assessment (OP/BP/GP 4.01) [XI [ I Natural Habitats (OP/BP 4.04) [ I [ I Pest Management (OP 4.09) [ I [ I Cultural Property (OPN 1 1.03, being revised as OP 4.11) [ I [ I Involuntary Resettlement (OP/BP 4.12) [XI [ I Indigenous Peoples (OD 4.20, being revised as OP 4.10) [ I [ I Forests (OP/BP 4.36) [ I [ I Safety o f Dams (OP/BP 4.37) [ I [ I Projects in Disputed Areas (OP/BP/GP 7.60)" [ I 1 1 Projects on International Waterways (OP/BP/GP 7.50) [ I [ I

By supporting the proposed project, the Bank does not intend to prejudice the final determination o f the parties' claims on the disputed areas.

7. Policy exceptions and readiness

There i s no policy exception. Institutional and financial arrangements are in place as well as the core staff currently managing ESIP I in the main directorates o f the M O E [Administrative

21

and Financial Directorate (DAF), National Directorate o f Basic Education (DNEB)] at national and regional level.

The operational manual wil l be updated to accommodate the following changes:

(i) (ii) Updated procurement procedures; (iii) (iv) Updated procedure for A D A R S ; (v) (vi)

Procedure with ANICT for school construction;

Technical specification for school construction,

Disbursement procedure and financial monitoring; and Integration o f the environmental and resettlement action plan.

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Annex 1: Country and Sector or Program Background

Mali: Second Education Sector Investment Program

This annex details the entire government program to be financed by the national budget and donor community, including the World Bank.

A. COMPONENT I: DEVELOPMENT OF QUALITY BASIC EDUCATION

Basic education i s the top priority o f ESP 11, the goal being to ensure that all boys and girls in Ma l i complete a full course o f primary schooling by 2 0 1 5 t h a t i s to achieve Goal 2 o f the Millennium Development Goals.

Subcomponent 1-1: The conditions for broad implementation of quality preschool education are met, thus promoting the access and retention of children in the first cycle of basic education.

Children in the age range o f three to five years will be part o f the target population for preschool education in Mali, and coverage will be increased from 4.3 percent in 2004 to 9.1 percent (84,766 children) in 2008 (Indicator l).' The preschool education program will revolve around the following strategies:

Early Childhood Development Centers (CDPEs) wil l be developed by the government, the private sector, and communities, with a student breakdown o f 36 percent, 42 percent, and 22 percent respectively (Indicator 2).

The quality o f preschool institutions (kindergartens and CDPEs) will be enhanced by pre-service training for some 120 preschool teachers and in-service training for some 300 outreach workers per year (Indicator 3).

The capacities o f preschool teachers will be improved by producing local teaching aids. Each teacher will have a curriculum and a manual, and each CDPE will be equipped with teaching aids starting in 2007 (Indicator 4).

A Preschool Teacher Training School (EFEP) will be built and outfitted (Indicator 5,).

The government will finance the construction and outfitting o f up to 250 CDPES? thus enabling public institutions to educate at least 18,000 new children based on a ratio o f 60 children per CDPE (Indicator 6).

Accountability for CDPE management will be developed at the community level, and communities will be trained in parental education, so as to facilitate their involvement in the implementation o f Early Childhood Development (DPE) programs.

Information and awareness campaign in order to boost the hiring o f facilitators by the communities and private sector.

This refers to the indicators l isted in the Logical Framework by component and by subcomponent. * Including the presidential initiative o f 100 CDPEs.

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0 Increased awareness o f communities and private sector in the area o f DDPE construction and equipment.

Preschool teachers at the community level (outreach workers) will receive grants through the municipalities.

0 Monitoring and evaluation wil l be performed by the Teaching Advisors (CPs) responsible for preschool education and by staff in charge o f preschool at the Teaching Academies (AEs).

Information and awareness campaign to help the recruitment o f facilitators by communities and the private sector.

Increased awareness o f communities and private sector for the construction and equipment o f DCPEs.

0 The early learning, protection, and health o f young children will be promoted through an intersectoral approach with a synergy o f action among the various stakeholders in early childhood development, and the staff o f basic technical services wil l be trained in the integrated approach to early childhood development.

The preschool statistical information system will be integrated into the regular information system o f the Ministry o f National Education’s (MoE) Planning and Statistical Unit (CPS).

0

0

0

Subcomponent 1-2: All students acquire skil ls in line with the curriculum.

Pre-service Training of Teachers

To meet Mali’s basic education enrollment needs, an average o f 2,500 teachers will be trained each year (Indicator 1). To obtain a qualified teaching staff, M a l i plans the following measures:

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0

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0

0

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Recruitment o f qualified trainers for three new Teacher Training Institutes (IFMs) and for existing I F M s showing a deficit (Indicator 2).

Gradual turnover o f IFM teaching staff.

Creation o f a program to train teacher training staff at the Teacher Training College (ENSup).

Recruitment for both programs will be l imited to secondary school graduates with a baccalaurkat degree. If necessary, applicants with a Basic Studies Diploma (DEF) will round out the staffing in IFMs.

Improvement in the proportion o f female student teachers enrolled in IFMs as a result o f measures designed to facilitate their enrollment and increase the likelihood o f their success, to be decided and implemented at the deconcentrated level; and

Vocational training focusing o n the new teacher training curriculum (which more fully reflects the teaching o f French).

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Alternative Teaching Staff Recruitment Strategy (SARPE)

0 The SARPE i s a temporary strategy for the duration o f E S P 11. During i t s implementation period, i t i s anticipated that the length o f training will be increased to six months; and the proportion o f women recruited wil l be gradually increased.

In-Service Training of Teachers

According to Mali’s 1999 orientation law, education i s viewed in the context o f functional bilingualism (concomitant teaching o f maternal language and o f French). Teachers are not ready to face this new situation. In order to better handle this new context o f functional bilingualism, the emphasis will be on the training o f teachers in French as a second language and foreign language. The plan i s to train some 15,885 teachers, at a rate o f 20 percent per year, with an average o f 20 days per teacher (Indicator 3), through:

0 Reinforcement o f the National Directorate o f Basic Education’s (DNEB) capacity to coordinate and monitor the implementation o f the In-Service Teacher Training [Formation Continue des Maitres (FCM)] policy, as we l l as reinforcement o f the capacity o f deconcentrated services and F M s with respect to the planning and implementation o f training activities at the regional and local levels; and

Elaboration and setup o f a mechanism to bring to the same level teachers from community schools and those coming from SARPE and to provide them with a certificate.

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In-service training by Learning Communities (CAS). CAS represent a functional strategy o f educational support in the f ield and, after an assessment, wil l be expanded to al l public schools dispensing the first cycle o f basic education (Indicator 4). The capacities o f the Teaching Academies (AEs) , Pedagogical Activi ty Centers (CAPS), and C A schools will be boosted with staff training and operating resources, thus enabling them to play an effective role in educational outreach and support.

In-service training via school radio. This approach is now being tested and will be implemented on a widespread basis if the results prove satisfactory.

Curriculum Development, Dissemination, and Evaluation

(Indicator 5): Efforts to reform the curricula for basic education in M a l i will continue as follows

Gradual implementation o f the curriculum for Level 1 (first and second years) o f basic education and o f the curriculum for the first year at Level 2;

Testing and validation o f the curriculum for Level 2 (third and fourth years) o f basic education;

Development, testing, and validation o f the curriculum for Level 3 (fifth and sixth years) o f basic education;

Development, testing; and validation o f the teacher training curriculum.

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0

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0 Training the translators o f curriculum in the translation techniques into national languages;

Translation o f curriculum in eleven national languages; and

Continued training for curriculum developers.

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Curriculum implementation wil l be carried out in synergy with in-service training o f teachers. I t will take into account, among other factors, the specific educational needs o f girls, as well as the requirements o f children with special educational needs, within the framework o f integrative education and health at school.

An appropriate system will be developed and implemented for assessing student performance in relation to the basic education curriculum, with special attention to learning the basics o f reading, writing, and mathematics (Indicator 6).

Textbooks, Library Books, and Teaching Materials

An effort will be made to ensure a steady and sustainable supply o f basic textbooks, reading materials, and other teaching materials, at no cost to students in teacher training or in basic education (public, community, and Koranic schools), nor to the teacher training college or preschool institutions nationwide.

These results wil l be achieved by the following measures:

0 Making the basic options operational so far as the policy on textbooks and teaching materials i s concemed-that is, privatization o f textbook channels and decentralization o f the purchasing, distribution, and management o f textbooks, library books, and teaching materials.

Observing a period o f transition (2006-2007) during which MoE's Administrative and Financial Directorate (DAY) will order textbooks, library books, and teaching materials and have them distributed by the private sector. (This period will also be used to prepare the conditions for effective policy implementation).

Providing incentives for private local publishers to make additional textbooks and teaching materials available in the marketplace.

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During this phase, (i) existing textbooks in French and in national languages will be acquired and distributed in so-called traditional schools, in schools that apply convergent teaching methods, in classes testing and implementing the curriculum, and in preschools; (ii) first- and second-year textbooks that meet the requirements o f the new curricula will be drafted, and the first-year textbook will be produced and distributed; (iii) basic schools o f the second cycle, secondary schools, and the teacher training college will be equipped with textbooks, library books, and hands-on materials; (iv) mechanisms for the decentralized purchasing o f textbooks for basic education will be tested in a limited number o f Educational Outreach Centers [Centres d 'animation pbdagogique (CAP)], then gradually implemented nationwide; (v) a textbook rental system wil l be set in place for secondary schools and the teacher training college; (vi) books that contain readings in national languages will be produced and purchased, and reading areas will be organized, first in classes with convergent teaching methods and then in so-

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called traditional classes; and (vii) capacity-building activities will be arranged for all public and private sector actors involved in each and every aspect o f textbook and teaching materials supply, educational and administrative management, and textbook and library book preservation.

More specifically, the supply/distribution programs will aim to do the following:

0 Provide all schools and all classes with collective teaching materials deemed indispensable.

Make available to each teacher a curriculum guide (Indicator 7) and a teacher’s manual for each student textbook (Indicator 8).

Provide each first-year, first-cycle student with a national language textbook and a mathematics textbook. Starting in the second year, each student will receive two language textbooks (national language and French) and one mathematics textbook (Indicator 9). In the second cycle, four textbooks w i l l be provided: French language, math, physical science, and natural science (Indicator 10).

Produce and distribute a guide to textbook management in all schools.

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To expand literacy in national languages and reduce the financial r isk for publishers o f books o f readings in these languages, the program will design and implement incentives to make such publications possible. These incentives could include negotiations for translating some existing books from one language to another, prepublication purchases o f a certain number o f copies o f a forthcoming title, invitations for manuscripts, etc.

Development of Technological Education in the Second Cycle of Basic Education

To develop a scientific culture and promote technological education within the school context, a project on school-appropriate technology will be implemented by creating and dispensing scientific un i ts o f study at all A E s .

Development of a Culture of Reading

read. The program w i l l consist of: The goal i s to develop a literate environment that gives students the desire and capacity to

Creating and equipping libraries and reading areas in schools and classrooms. By 2008, 50 percent o f first-cycle schools will have a reading area and 25 percent o f second-cycle schools will have a library (Indicator 11); and

Developing a module to train teachers in reading and the use and educational management o f libraries and reading areas.

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Subcomponent 1-3: The access and completion ratios of each cycle o f basic education are improved.

The gross intake ratio in the f i rs t cycle o f basic education should reach 82.2 percent in 2008, versus 66.6 percent in 2004, with a reduction in the disparity between boys and girls from 15 percent to 10 percent. In the second cycle, the ratio should reach 46.3 percent, versus 36.6 percent in 2004.

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The gross completion ratio in the first cycle should reach 56.4 percent in 2008, versus 41.6 percent in 2004. In the second cycle, the ratio should reach 33.8 percent, versus 21 percent in 2004.

The gross enrollment ratios, defined should reach 80 percent in the first cycle and 49 percent in the second cycle.

School Infrastructure and Furniture

In accordance with the decentralization process, contracting authority for the development o f school infrastructure will be transferred to the Territorial Authorities (CTs). The School Management Committees (CGSs), operating under the responsibility o f the municipalities, will handle the task o f providing school furniture, as well as teaching supplies and materials.

ESP I1 will support the following actions:

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Develop a school map including forecasts o f regional requirements.

Build and outfit an average o f 1,500 classrooms per year for the f i rst cycle and some 750 classrooms per year for the second cycle (Indicator l), taking into account the school map and site eligibility criteria, including the existence o f a water supply point, and the objective o f reducing regional disparities. To reach this objective, a strategy will be adopted for streamlining procedures and transferring funds to the CTs. The MoE will hold contracting authority.

Rehabilitate some 200 classrooms per year and equip some 200 classrooms to receive children with special educational needs (Indicator 2), and reduce the shortage o f school furniture in all public and community schools during ESP 11.

Equip all public and community schools with latrines; the new latrines will be separate for girls and boys and distant from each other.

Increase the number o f school cafeterias at the initiative o f the CTs in order to improve school access, especially for girls.

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Supply of fully structured Jirst-cycle schools and schools closer to students. To ensure educational continuity, the program will contribute to the development o f complete first-cycle schools with all six years o f study and, as much as possible, improvements in access to the second cycle (Indicator 3). If necessary, consideration will be given to alternative strategies to be incorporated into the pre-service or in-service teacher training program (double division, multigrade classes, nomadic schools, etc.).

Lowering the repeater ratio. Access should also be improved and the educational system should be made more fluid by reducing the repeater ratio, The plan i s to gradually lower the percentage o f repeaters to 13.7 percent in the first cycle and 18.8 percent in the second cycle by 2008. Teachers will be trained in formative evaluation and remediation in order to improve the performance o f struggling students.

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Subcomponent 1-4: All learners and auditors acquire skills in line with the nonformal education policy.

The new nonformal education (Em) policy developed by the National Directorate o f Basic Education’s (DNEB) calls for the establishment o f an ENF support fund, specifically to ensure expenditures, quality improvements, and assistance in covering the cost o f teachers and outreach workers. The ENF statistical information system will be integrated into the MoE’s information system.

Implementation o f nonformal education policy principally falls to the Territorial Authorities (CTs). Deconcentrated departments, operating in accordance with the standards and guidelines given by the National Resource Center for Nonformal Education (CNR-ENF), will provide advice and support to the CTs for taking measures to strengthen the level o f consultation and partnership among different actors.

The CNR-ENF will develop a strategy for improving the training content (by incorporating living skills) and the linguistic and educational ski l ls o f training personnel (teachedoutreach workers, NFE staff at A E s and CAPS, nongovernmental organization staff, association staff).

To help reach a rate o f 27 percent o f unenrolled and out-of-school children from 9 to 15 years o f age in the Education for Development Centers (CEDs) and a rate o f 60 percent o f illiterate adults3 as auditors in Functional Literacy Centers (CAFs) and Women’s Learning Centers (CAFLs) (Indicator l), the following actions are planned:

provide the CEDs with textbooks and teaching manuals so that each CED teacher has two textbooks (language and math) and about ten manuals (Indicator 2) and each learner has two textbooks (language and math) (Indicator 3);

0 provide pre-service and in-service training for CED teachers (Indicator 4); and

0 support adult literacy training with annual funding in the amount o f CFAF 4.242 billion.

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A vocational training strategy for CAF and CAF6 auditors and CED learners will be developed and implemented in cooperation with MoE and Ministry o f Employment and Vocational Training (MEFP). Pre-service training in CEDs (literacy training for four years) will be covered by the nonformal education support fund, while vocational training in CEDs w i l l be handled by vocational training entities.

Sixty percent o f illiterate adults by 2015.

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Subcomponent 1-5: Schools function better and perform at a higher level.

Advice and Support for Territorial Authorities (CTs) and School Management Committees (CGSs)

The CTs (municipalities, districts) are called upon to play a leading role in the planning and development o f basic education. To that end, they will receive technical support and advice from the Pedagogical Act iv i ty Centers CAPS)^ (Indicator 2). Municipalities wil l prepare their Municipal Educational Development Plans (PDEComs) in accordance with the sector objectives o f E S P 11, as we l l as the school map, if available. Each CGS will develop the school’s operating budget to be submitted to the municipality, taking into account the provision o f goods and services useful to the school, including repairs and maintenance, in accordance with standards and procedures yet to be worked out.

The deconcentrated departments wil l develop a strategy o f communication with the CTs for the dissemination o f school statistical data and M o E technical and policy guidelines. The CAPs and A E s will work with the CTs to develop strategies for reducing disparities in terms o f access and retention and the continuing gaps between girls and boys.

Development of School Plans (Indicator 3)

The CGSs will be trained in accordance with a strategy developed by the Support Unit for the Decentralization-Deconcentration o f Education (CAD-DE), including the use o f standardized training modules. Through this training, the CGSs will learn about the planning, execution, and monitoring and evaluation o f a school plan. A school plan includes two components: school development and the teaching work.

School development includes, among other matter, the following:

0 social mobilization for broad recruitment o f children, especially girls, in accordance with the national pol icy o n the advancement o f girls;

maintenance o f school facilities and fwniture; and

administrative and financial management o f the school, etc.

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The CGS wil l develop a school plan with technical support f rom the CAP. Expenses related to the school plan will be covered by the annual grant awarded to the CGS. Costs in excess o f this grant will be negotiated with the municipalities.

The teaching work will fa l l under the responsibility o f the school director. I t will be defined with the support o f the CAPs and the learning communities and implemented by the school director and teachers.

Other stakeholders: the Municipal Council Centers (CCCs), along with certain technical and financial partners and nongovernmental organizations (NGOs).

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Classroom Construction by Territorial Authorities (CTs) (Indicator 4)

The MoE will implement a strategy o f support for the CTs. As part o f this strategy, the Support Unit for the Decentralization-Deconstruction o f Education (CAD-DE) will make the following available to municipalities: a manual o f procedures for contracting authority (currently being developed by CAD-DE); and specifications o f transferred skil ls. The mechanisms and procedures for financial transfers to municipalities will be developed in 2006 and become operational in 2007.

A school performance steering system, based on key indicators, will be established at the national level and monitored by school directors and the mayors o f municipalities (Indicator 1). The Teaching Advisors (CPs) wil l intervene in schools where the indicators fall below the expected minimum level. Each school should be visited by a CP at least on a quarterly basis.

Actual teaching time over one full school year will be increased to eight and one-half months-that is, a total o f 901 hours5 (all school vacations excluded)-in order to cover the school curriculum properly and ensure the acquisition o f learning. An annual directive wil l set the school calendar, including vacations and holidays, and the A E s and CAPS will be held responsible for i t s proper implementation based on local realities.

Career Management and Training for Teacher Certijkation

The existence o f career plans i s an important element o f teacher motivation and stability. MoE will make available to the CTs a manual that will enable them to take full advantage o f the training background o f teachers in their career plans. Career management falls to the CTs, although tests o f educational level will be organized by the deconcentrated departments.

The status and wages o f community teachers will be enhanced: All community teachers who meet a minimum standard and who have been retrained or undergone recognized pre- service training will become contract teachers o f the municipalities with an annual wage o f five times the per capita Gross Domestic Product (GDP). Most o f the community schools will become municipal schools.

B. COMPONENT 11: GENERAL SECONDARY EDUCATION (ESG), TECHNICAL AND VOCATIONAL EDUCATION (ETP), VOCATIONAL TRAINING BY APPRENTICESHIP

The objective o f this component i s to “develop in complementary fashion public and private sector governance o f ESG, ETP, and vocational training by apprenticeship in order to do the following:

improve access to education and training for underprivileged segments o f the population;

realize gains in efficiency; and

meet the needs o f the labor market.”

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Nine hundred one hours corresponding to 26 hours and 30 minutes per week over the course o f 8 ?4 months.

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These objectives and activities are intended for the public and private sectors in order to: (i) reinforce the supply o f training and thereby better address social demand and j o b market needs; (ii) develop the quality and efficiency o f the system; (iii) improve the steering mechanism.

By acting on the supply o f training, ESP I1 helps increase the system’s absorptive capacity; by acting on the level o f quality, i t helps improve the system’s internal and external efficiency; and by acting on the steering mechanism o f the system, i t decompartmentalizes the public and private sectors and builds public sector accountability through gains in management autonomy. The steering mechanism places development o f the vocational training system (Technical and Vocational Education, Vocational Training by Apprenticeship) within the framework o f deconcentration and decentralization. The consistency o f the approach will be ensured by a joint commission o f the two ministries. The Vocational Training and Apprenticeship Support Fund (FAFPA) could be used to support investments in private centers.

Subcomponent 11-1 : General secondary education (ESG)

Subcomponent II-1-1: The supply of training is developed to absorb up to 1,800 additional students in public high schools by 2008.

T o expand the supply o f training to absorb additional students in public high schools, the following actions are planned: the construction o f three 12-classroom high schools; the rehabilitation o f five high schools; and the rehabilitation-construction o f bathrooms in 24 public high schools (Indicator 1).

Subcomponent 11-1-2: The quality of general secondary education improves with more highly qualified human resources, a more favorable teaching environment, and reforms in educational management

Human resources. The plan i s to recruit some 400 teachers by ESG, roughly 200 o f whom could be recruited by private high schools (Indicator 1). In addition, there are plans to provide in-service training for an average o f 500 teachers per year, including permanent teachers in private high schools, within the framework o f support for this sector; training for some 200 teachers o f French in French language instruction; training for teachers o f other disciplines in the language o f instruction, depending on needs; training for some 120 laboratory assistants over the course o f the project, roughly 80 o f whom could be recruited by private high schools, and about 40 for public ESG; training for some 184 computer maintenance workers, including 100 for private high schools and 84 for public high schools (Indicator 2); strengthening o f training personnel through in-service training for ESG inspectors and administrative staff (Indicator 3).

Changes to the teaching environment and content. The plans are to revise the educational options and curricula; provide the Documentation and Information Centers (CDIs) o f more than 59 high schools with books and set up a lending system (Indicator 4); make textbooks available in more than 59 high schools and set up a system for renting textbooks to students (Indicator 5); build and outfit 25 laboratories (1 5 for the private sector), 25 computer rooms (1 5 for the private sector), and 25 CDIs (15 for the private sector) at most (Indicator 6).

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Improving system management. The plans are to set up School Management Committees (CGSs) in the high schools for participatory management; develop institutional plans in the high schools (technical assistance and training to be provided) (Indicator 7); define the conditions for providing facilities and equipment to private institutions; at the end o f the period, students steered toward general secondary education will all be admitted to public high schools. Government support for private institutions should enable these institutions to offer training at an affordable cost.

Subcomponent 11-2: Technical and Vocational Education (ETP)

Subcomponent 11-2-1: The supply of technical and vocational training i s developed to absorb more than 1,800 additional students per year, including up to 20 percent girls, in industrial and agro-forestry-pastoral courses through 2008.

Eight training centers offering industrial andor agro-forestry-pastoral courses are to be built and outfitted, in Kidal, Kita, Koulikoro, Niono, Kayes, Sikasso, Bamako, YClimanC. The investments to be made in Koulikoro will depend on the existence o f the multiservice center falling under the authority o f the Regional Assembly; three public centers are to be rehabilitatedexpanded (Koutiala, Gao, Fana); three industrial workshops are to be built at the technical high school in Bamako in preparation for the introduction o f new courses (Indicator 1).

Within the framework o f support for private education, six industrial workshops wil l be built in private training centers (Indicator 2), and a strategy will be implemented to attract girls to industrial and agro-forestry-pastoral courses, including the development o f new courses (Indicator 3).

Subcomponent 112-2: The quality of technical and vocational education improves with more highly qualified human resources, a more favorable teaching environment, and reforms in educational management, including the introduction of information and communication technologies in the programs.

Human resources. ESP I1 calls for the creation and construction o f a Technical and Vocational Education (ETP) Teacher Training Institute (Indicator 1). In the meantime, the plan i s to make the initial ETP training unit o f the National School o f Engineering (ENI) functional, establish an instructor training unit at the Teacher Training College (ENSup), and train fbture instructors for the ETP Teacher Training Institute. Technical education teachers wil l receive training in French language instruction, depending on the needs (in-service training).

In anticipation o f the ETP Teacher Training Institute’s opening, pre-service training will be provided to some 35 technical education teachers per year at foreign locations (in 2006 and 2007); roughly 42 maintenance workers will be trained-that is, three workers per public center (Indicator 2).

A staff development plan will be prepared and implemented to upgrade the sk i l ls o f ETP personnel (trainers, administrators, support staff). Within this framework, some 1,500 trainers

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will participate in an in-service training program and roughly 500 administrators and support staff from the public and private sectors wil l take part in an in-service training program.

Changes to the teaching environment and content. To ensure a good match between training and employment, the curriculum wil l be developed for 10 new courses following the skills-based approach [Approche par Compktences (APC)]. Teaching documents for the 10 new courses will be reproduced in approximately 10,000 copies and made available to public institutions, as wel l as approved private institutions within the framework o f support for the private sector. Twenty existing programs wil l be adapted to APC (Indicator 3).

A training program on information and communication techniques will be established. Public and approved private institutions will be provided with computer equipment in preparation for the development o f new tertiary programs leading to a Vocational Training Certificate (BT). A system o f relevant educational documentation wil l be set up in public and approved private vocational training centers and institutes. The libraries o f up to 36 public and private centers will be transformed into Documentation and Information Centers (CDIs) (Indicator 4). Finally, a system o f ETP information, awareness-raising, and guidance will be established, as wel l as a system for monitoring the integration o f graduates (Indicator 5).

Improving system management. The accountability o f vocational training centers must be adequately developed. To that end, the centers should have sufficient management autonomy, including administrative, financial, and educational autonomy. To develop this autonomy will require, among other matters, speedy adoption o f Vocational and Educational Policy (VET) [Enseignement Technique et Professionnel (ETFP)], consultation with all ETFP partners (within the context o f decentralization) to determine the contours o f this autonomy, reconsideration o f ETFP statutes and regulations, and their implementation.

Subcomponent 11-3: Vocational Training by Apprenticeship

Subcomponent 11-3-1: Existing apprenticeship training capacities are strengthened in partnership with enterprises and private and public vocational training centers to absorb a total of $500 dual-type apprentices, 22,899 out-of-school youth, and 26,000 Education for Development Center (CEDI finalists in qualifying modular training in 2008, with up to 20 percent girls in industrial and agro-pastoral courses.

To train outgoing Basic Education 1 and 2 students, two training mechanisms are planned: first, a dual-type apprenticeship based on the model currently followed for handicrafts, and second, qualifying modular training. A dual-type apprenticeship lasts three years, and qualifying modular training wil l take one year. The plan i s for 5,500 out-of-school youth to be trained under the dual-type apprenticeship system and 22,899 to be trained through qualifying modular training.

Approximately 72 public centers for vocational training by apprenticeship (apart from the Vocational Training Institutes, IFPs) and 28 private centers for vocational training by apprenticeship will be rehabilitated andor outfitted by the end o f 2008 to strengthen existing training capacities in partnership with enterprises and private and public vocational training centers; some 300 workshops will be outfitted in small-scale enterprises based on a selection

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process organized with the Permanent Assembly o f Chambers o f Trade o f Ma l i [Assemblke Permanente des Chambres des Me'tiers du Mali (APCMM)] and the National Art isans Federation o f M a l i [Fkdkration Nationale des Articans du Mal i (FNAM)] (Indicator 1).

The various types o f vocational training by apprenticeship and short qualifying training will be strengthened, namely by contributing as much as 90 percent o f the financing for vocational training by apprenticeship in private vocational training centers in order to improve the absorption o f out-of-school youth from both cycles o f basic education (Indicator 2). An autonomous mechanism will be set in place to gather and disseminate information on the job and training markets (Indicator 3). A strategy will be implemented to attract girls to industrial and agro-forestry-pastoral courses, including the development o f new courses (Indicator 4). A strategy for covering the vocational training o f CED finalists will also be implemented (Indicator 5).

Subcomponent 11-32: The quality and internal efficiency of the learning centers are enhanced with more highly qualified trainers and improved teaching methods.

Train some 500 master artisans and some 300 local trainers (trainers from the productive private sector) in order to expand training opportunities in enterprises. Train roughly 150 private and public center trainers and some 50 private and public sector employees involved in the study and development o f training (Indicator 1). Develop and adapt training programs; develop teaching aids for hands-on programs and courses in 30 new trades; reproduce training and program aids for 30 trades (Indicator 2). Develop apprenticeship regulations; implement a mechanism for validating and certifying experiential learning (Indicator 3). Strengthen the central and deconcentrated departments responsible for implementation.

c. COMPONENT 111: DEVELOPMENT AND IMPLEMENTATION OF A SUSTAINABLE POLICY FOR THE DEVELOPMENT OF HIGHER EDUCATION AND SCIENTIFIC AND TECHNOLOGICAL RESEARCH

The objective of this component i s to set in place instruments and means to better control growth in the number o f students and the costs o f higher education in Mali, diversify and improve the quality of higher education, better address the country's development needs, and build the capacity to steer the system and manage institutions o f higher education.

Subcomponent 111-1 : The internal efficiency o f higher education i s improved to control growth in the number o f students and costs.

Controlling growth in the number o f students in higher education involves (i) upstream regulation o f student flows in secondary education and improved access and guidance based on the results o f the baccalaurkaat exam; (ii) within institutions o f higher education, a stepped-up flow o f students and shorter time to receive diplomas; (iii) the emergence o f regional university centers; (iv) the development o f alternatives in the private sector. Getting more control over the costs o f higher education entails (i) improvements in internal efficiency; (ii) the development o f short courses; (iii) an increase in the proportion o f spending on teaching versus administrative expenses and welfare payments.

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More specifically, this component o f ESIP I1 will contribute to implementation o f the following actions: (i) modification o f the system o f guidance/access following the baccalaurkat exam so as to steer 78 percent in long courses and 12 percent in short courses and engineering schools (Indicator 1); (ii) implementation o f an information system in order to improve the functioning o f education departments and introduce instruments for controlling student flows (Indicator 2); (iii) implementation o f a regulatory framework that will allow private institutions to prepare students for national diplomas and receive accreditation (Indicator 4); (iv) modification o f the criteria for awarding scholarships (Indicator 5); (v) improvements in the management o f university works and development o f a private compound for university boarders (Indicator 6); (vi) implementation o f the Bachelor-Master-Doctor (LMD) system and adoption o f a system o f credits so as to reduce the repeater ratio and improve the flow o f students; and (vii) distance learning.

Subcomponent 111-2: Higher education and research are diversified and their quality improved to better meet the needs of the labor market and the country’s development needs.

If training capacities are to match Mali’s development needs and the needs o f the job market, the following considerations are o f particular importance: (i) information on labor market demand, which can be used to define needs, as well as job and training profiles to be developed (this work will be carried out in conjunction with the Employment Training Observatory); (ii) rules and statutes for vocational education teachers in l ine with the requirements o f the training (taking into account trade experience acquired in productive sector enterprises, hours in practical work, contacts with trade circles, monitoring o f student internships, and facilitation o f collaboration and technology transfers with enterprises); (iii) greater autonomy for institutions, resulting in more flexible management o f resources (diversified resources coming from the government, enterprises, service delivery contracts, or students; management o f costly facilities requiring maintenance and the consumption o f work materials; contracting with professionals from enterprises; more diversified training through practical work, alternating classroom and work experience, or internships in enterprises); and (iv) development, with the different vocational branches, o f valid diplomas for both the private and public sectors that will confer recognition o f a level o f sk i l ls in the labor market and permit the development o f career paths for students through the interplay o f equivalent ratings and bridges.

More specifically, ESIP I1 will include the following actions: (i) development o f 10 short vocational courses, including feasibility studies and the buildings and facilities needed for these courses; training and recruitment o f roughly 35 teachers for these courses (Indicator 1); (ii) creation o f regional university centers (based in particular on the results o f the feasibility study) (Indicator 2); (iii) efforts to bring certain university facilities up to standard; rehabilitation o f libraries, including the Central University Library (BUC) (Indicator 3); (iv) capacity building for teachers, especially in courses that professionalize students and lead to a Bachelor, Master, or Doctor’s degree (Indicator 4); and (v) establishment o f the competitive f h d for research (Indicator 5).

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Subcomponent 111-3: The capacity to steer the system and manage institutions of higher education and research i s reinforced.

Improvements in the steering and management o f higher education should be accompanied by (i) implementation o f monitoring, management, and oversight instruments in l ine with the autonomy given to institutions and their capacity to generate their own resources; and (ii) a major effort to train staff whose functions will change.

ESIP I1 will include the following actions: (i) design o f the information, school management, and accounting systems o f institutions o f higher education (Indicator 1); (ii) management facilities and communication networks; (iii) training for administrative staff in these new systems (Indicator 2); and (iv) design and implementation of a method o f financing whereby some portion o f the budget o f institutions o f higher education can be appropriated on a contractual basis (Indicator 3).

D. COMPONENT IV: TRANSPARENT AND PARTICIPATORY MANAGEMENT, DECONCENTRATION, DECENTRALIZATION, AND PLANNING OF EDUCATION

Phase I of ESIP in Ma l i was marked by implementation o f the new institutional diagram o f the Ministry of National Education (MoE), the development o f guidelines for decentralization, and the gradual introduction o f operational planning tools.

During Phase I1 the decentralization process will speed up. Education sk i l ls and related resources wil l be transferred as early as January 2007. A mechanism for steering the institutional reform wil l be adopted and set in place. The deconcentration o f the M o E will be strengthened by refocusing the mission o f the central departments on sovereign h c t i o n s and leaving execution to the deconcentrated departments. This phase will also be used to establish consistency among all the operational planning tools and to ensure their compatibility with CT planning at the deconcentrated level. In addition, a communication strategy will be finalized and implemented, since this was a weak link o f the first phase.

Subcomponent IV-1: Steering and consultations on the reform.

In terms of steering and consulting on the reform, the following actions will be taken: (i) implementation of an institutional reform steering mechanism at the M o E cabinet level; (ii) leadership o f the steering function at the regional level (Indicator 1); and (iii) vitalization o f bodies consulting on the reform (Indicator 2).

Subcomponent IV-2: The central departments assume their mission of policy design, oversight, and monitoring.

As part of the actual deconcentration o f the MoE, the central departments will focus primarily on the design and monitoring o f policies/strategies. The deconcentrated departments wil l take on the operational tasks.

At the central department level, the following actions are planned: (i) implement organization charts and reassign central department staff; (ii) evaluate managers (assess the

37

appropriateness o f their profile to their job) and make changes if necessary (Indicator 1); (iii) issue guidelines on bottom-up strategic reporting so as to improve the upward flow o f information and data; (iv) reconsider the Support Unit for the Decentralization-Deconstruction ‘s (CAD-DE) mission and the CAD-DE reform while implementing the recommendations o f the workshop on managing change (team building) (Indicator 2); (v) engage in consultations with Documentation and Information Centers (CDIs) and the General Directorate o f Territorial Authorities [Direction Nationale des Collectivitks Territoriales (DNClJJ to monitor the progress of the. institutional reform; (vi) organize interministerial meetings on deconcentration o f the budget departments; and (vii) initiate organizational development assistance; and (viii) continue the re-examination o f central department statutes by CDIs.

SUBCOMPONENT IV-3 : POLICY SUPERVISION AND IMPLEMENTATION.

THE DECONCENTRATED DEPARTMENTS ASSUME THEIR MISSION OF

The following actions are planned at the deconcentrated level: (i) develop, adopt, and implement statutes on the operations o f Teaching Academies ( A E s ) and Pedagogical Activity Centers (CAPS) (Indicator 2); (ii) evaluate managers (assess the appropriateness o f their profile to their job) and make changes if necessary; (iii) issue guidelines on bottom-up strategic reporting (Indicator 2); (iv) develop work plans that indicate the costs o f activities; (v) deconcentrate (under a strategy to be developed during this phase) the Inspectorate o f Secondary Education, while reinforcing skil ls and capacities; (vi) train managers; (vii) develop the versatility o f Teaching Advisors (CPs); (viii) institute simple filing procedures and make information available (Indicator 3); and (ix) design and implement a strategy for having resident CPs at sites located far from the CAP seat.

Subcomponent IV-4: Capacities in operational planning and financial management are strengthened at both the central and deconcentrated levels.

With respect to operational planning and financial management, ESIP I1 will attempt to ensure that both the central and deconcentrated departments possess adequate skills. To that end, special emphasis will be placed on the following actions: (i) proceed with the actual transfer o f training and teacher training resources starting in 2007; (ii) institute technical and financial guidelines for the departments (in connection with contracting); (iii) prepare the budget on the basis o f interventions planned by the departments; (iv) establish consistency among the medium- term programming tools (Medium-Term Expenditure Framework, program budget, action plans); (v) revise the budget presentation in order to bring it more in l ine with decentralization, deconcentration, and management by education subsector; (vi) implement a single statistical information system (that applies to all subsectors); and (vii) develop a strategy for covering community schools with public resources.

Subcomponent IV-5: Capacities in human resources management are strengthened at both the central and deconcentrated levels.

Human resources management capacities will be strengthened at both the central and deconcentrated levels. Human resources management capacities will be strengthened at both the central and deconcentrated levels. To that end, ESIP I1 will see to the following actions: (i) compile a staff register (design and implement a system to manage personnel files) (Indicator 1);

38

(ii) make optimal use o f existing tools and develop new tools (management manual); (iii) prepare the procedures for evaluations and incentives; (iv) develop and implement statutes pertaining to recruitment by competitive examination for personnel covered by Article 60 o f the blueprint law; (v) develop a plan to streamline non-teaching personnel in secondary and higher education; and (vi) create the National Human Resources Directorate.

Subcomponent IV-6: The Territorial Authorities (CTs) assume the transferred skills.

With respect to decentralization, the following actions are planned: (i) enhance the ability o f deconcentrated entities to fill their role o f advice and support for CTs and especially for preparation o f the Educational Development Plans (PDEs) (Indicator 1); (ii) gradually transfer resources to establish ski l ls at the CT level through the implementation o f specifications on transferred sk i l ls (Indicator 2); (iii) establish frameworks o f consultation among different stakeholders in the education sector, with advice and support provided by deconcentrated departments to CTs; (iv) encourage contracting between the School Management Committee (CGS) and the corresponding CT (Indicator 3); and (v) adopt the necessary statutes to ensure the autonomy o f Vocational Training Institutes (IFPs) (Indicator 4).

Subcomponent IV-7: An effective internal and external communication strategy i s implemented.

With respect to issues o f communication, ESP I1 will see to the implementation o f an internal and external communication strategy for the education sector. The following actions are planned: (i) develop a communication plan (Indicator 1); (ii) provide training in communication to education administrators; (iii) set up a network o f communicators (Indicator 2); (iv) organize forums to share experiences with other countries o f the subregion that are implementing investment programs in the education sector; and (v) establish a department news bulletin.

E. CROSS DISCIPLINARY THEMES

Gender The ESP I1 should create a dynamic o f accelerating the school enrollment o f girls so as

to reduce the discrepancies between girls and boys in terms o f parity and equality, especially in the most underprivileged areas. The ESP I1 aims to reduce the financial burden o f school enrollment for poor families in order to improve school attendance by girls.

In addition, a strategy o f building separate latrines for boys and girls will be implemented, and girls will be given preference in the recruitment o f student teachers at the Teacher Training Institutes (IFMs). Lastly, with respect to vocational training, a strategy will be implemented to attract girls to industrial and agro-forestry-pastoral courses, including the development o f new courses.

39

HIVIAIDS In implementing each o f i t s components, ESIP I1 wil l tackle the HIV/AIDS issue,

especially in the specifications for new textbooks resulting from the new curriculum and in pre- service and in-service teacher training programs. An HIV prevention program will be introduced in the schools starting in the fifth year o f the first cycle, with training for teachers and peer educators. This topic will also be incorporated into the education sector communication plan.

40

Annex 2: M a j o r Related Projects Financed by the Bank and/or Other Agencies

Social

Financed by Other Development Agencies Banque Afiicaine de Ddveloppement

Progranrnic c l c s Mir ions Unies pour Ir L)L;vrloppenzmt (PNUL))

Improving Learning in Primary S S Schools [Learning and Innovation &n, LIL)] closed on 6/30/2003

Projet d’appui b 1 ’enseignement supkrieur dans les pays de I’UEMOA Programme de Renforcement des Capacitks de la Socidtk Civile

41

Annex 3: Results Framework and Monitoring

Mali: Second education Sector Investment Program

A. Results Framework

Poverty Reduction Strategy Paper (PSRP) & Millennium Development

Goal (MDG) Objectives The objective o f M a l i i s to reduce the incidence o f poverty to 47.5% in 2015 Project Development Objective (PDO) The objective o f the project i s to increase the proportion o f Malian children completing quality primary education by improving the overall efficiency in the use o f resources to the education sector.

Intermediate results Improving the access to and results o f each cycle o f basic education

The management o f the education system has improved with the strengthening o f capacities.

Impact Indicators

Percentage o f the population o f M a l i l iv ing below the poverty l ine

Outcome indicators Completion rate in 2008:

-1'' cycle o f primary education

Sixty percent o f students have acquired minimal competencies in reading and in mathematics in 2008 after 3 years o f schooling (distributed per gender, region, urban and rural areas).

Results indicators for each component

from41.6% to 56.4%

1. Gross Enrollment Rate in 2008: lst cycle: goes from 66..6% to 82.2% (Reduction o f the gap between girls'and boys' enrollment from 15.2% to 10%.

2. The Gross Enrollment Rate in the lSt Cycle goes from 69% to 80%. 3. The proportion o f girls goes from 43.8% to 46.2%. 4. The percentage o f repeaters goes from 18.6% to 13.7% in the f i rs t cycle, and from23.9% to 18.8% in the second cycle.

.equired technical and Financial lonitoring Reports (FMRs) and actions lans are provided in a timely manner and re satisfactory.

he proportion o f non-teachmg staff 3mpared to the whole staff working in the 3ucation sector which was 24% in lecember 2005 goes to 20% in 2008.

The financial management and procurement are conducted in a satisfactorv manner.

Use of outcome information

Use of outcome information rhese indicators would allow monitoring progress toward reaching the Millennium Development Goals and the reduction o f iniquities in Education.

Use of outcome information These indicators w i l l allow to monitor the efficiency o f the policy o f access and retention in basic education.

Non significant progress on these indicators would result in a revision o f the relationship between resources planned and available for education.

These instruments wil l allow documenting impediments in the management o f the sector and the provision o f quality inputs in a more equitable manner within the sector.

42

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C. Resume of the Monitoring and Evaluation Instruments The Planning and Statistical Unit (CPS) o f Mali’s Ministry o f National Education (MoE)

i s responsible for the data collection and the indicators. A common monitoring and evaluation framework has been established for the ESP I1 under the Sector-Wide Approach (SWAP), and specific performance indicators have been selected for the International Development Agency (IDA)-fimded project.

The monitoring and evaluation o f progress toward reaching project objectives wil l be achieved via the annual school census and the education statistical yearbook, the quarterly Financial Monitoring Reports (FMRs), the Learning Assessments, the annual technical and financial implementation report o f ESIP 11, and technical audits and surveys:

Education statistical yearbook. The MoE produces annually an education statistical yearbook for basic education. This yearbook provides a wealth o f information that can be used to monitor inputs and evaluate outputs and outcomes at national and regional levels. Baseline information and key outcome indicators, including school enrollment, admission and retention rates, are already collected reported in disaggregated format by gender and region to track disparities. During ESP 11, the content o f the statistical yearbook will be extended to secondary and higher education level. A permanent technical assistance i s provided by the French cooperation to improve the statistical yearbook.

0 Financial Monitoring Reports. Quarterly FMRs will be provided on the implementation o f each component, which will be centralized at the CPS level and submitted to all technical and financial partners for discussion. A format for the FMR will be agreed upon at negotiations.

Learning Assessments. The MoE will implement a Learning Assessment in basic education every two years to evaluate the improvement o f the quality o f teaching and learning at the classroom level. UNESCO has helped in the production o f a report in 2005 [the Learning Achievement Assessment (PASEC) baseline]. A second one wil l be conducted in 2007 and will cover primary education in all regions o f the country. A third one i s expected to be completed at the evaluation stage o f the ESP I1 as improved learning assessment tools (methods and design). Technical assistance wil l be provided through the project for the fiu-ther development and improvement o f the learning assessment tool.

Annual technical andfinancial analytical report on ESIP I1 An annual technical and financial analytical report will be produced to allow the monitoring o f the effectiveness, efficacy, and efficiency o f the system progress toward reaching the targeted goals. The report will analyze the system in terms o f access, quality, implementation, and allocation o f resources. I t will use all available documents and reports o f the sector.

Technical audits and surveys. The government and the Financial and Technical Partners [Partenaires Techniques et Financiers (PTF)] will annually conduct periodic studies or technical audits on issues that will be identified, but not limited to, in the following areas: school construction, textbooks, school grants, personnel

0

0

0

0

46

management. A tracking study o f educational expenditures wil l be conducted at least every other year.

These different databases wil l be consolidated during E S P I1 into an Education Management Information System, and equipment and communication will be upgraded for a better transmission and filing o f data. The methods for elaborating and monitoring indicators have been improved with the technical assistance provided for the preparation o f the Country Status Report and the projection model to update Mali’s Medium-Term Expenditure Framework (MTEF). These indicators are collected according to the international standards developed by the P6Ze de Dakar to allow for cross-country comparisons.

47

Annex 4: Detailed Project Description

Mali: Second Education Sector Investment Program

A. Introduction The US$35 mill ion IDA-financed Education Sector Investment Program (ESP 11) project

will support the Borrower, the government o f Mali, in implementing the ESP, which seeks to provide increased and equitable access to higher quality education in Mali. The $35 mill ion IDA Credit to the government o f Mal i represents 3.4 percent o f total ESP I1 financing and 11 percent of external financing for ESP 11.

The IDA-financed ESP I1 i s heavily focused on the areas o f the program that contribute to the achievement o f the development objectives o f increasing the proportion o f Malian children completing quality primary education and improving the overall efficiency in the use o f resources in the education sector. As a result, 85 percent o f the IDA Credit i s concentrated on basic education, and 62 percent o f the IDA Credit will be transferred to municipalities for school construction and to schools at basic education level for the provision o f supplies and learning materials.

The IDA financing will focus on the areas o f the ESP I1 deemed critical to do the

reach the Millennium Development Goals, in particular, improving access to and completion o f primary education;

0 address shortcomings in the implementation o f ESP I particularly for the construction o f schools, teacher training, distribution and use o f textbooks, reduction o f repetition rate and improvement o f learning achievement;

reduce the cost o f schooling and increase demand for schooling among the poorest families;

reduce regional disparities in access to education services in a more decentralized context through better planning and allocation o f public expenditure; and

improve the efficiency in the use o f public resources by reducing unit costs, strengthening management capacities, and better performance monitoring.

following: 0

0

0

0

The project in Mal i has three components, each o f which i s discussed in detail below:

1. Improving the quality o f basic education through: (i) increasing reading practice through the setup o f a reading area, including the necessary textbook stocking devices and books in 25 percent o f the classrooms o f schools in the f irst cycle o f basic education (4,600 classes to be equipped) and equipment o f libraries and school textbooks in five Teacher Training Institutes (FMs) (2,000 textbooks per IFM); (ii) a direct support to all schools having an operational School Management Committee for purchasing school supplies; (iii) the recruitment o f qualified teachers through a 60-day training for the certification o f 3,000 community school teachers for a 60-day accelerated

48

training program (Alternative Teaching Staff Recruitment Strategy) for 1,800 new teachers.

2. Increasing access to education through: (i) the construction o f schools at the first and second cycles o f basic education (970 classrooms) including their equipment with furniture, water supply and latrines; (ii) the construction and equipment o f a general secondary school (for 600 students); and (iii) the implementation o f vocational training through apprenticeship.

3. Strengthening institutional management capacities o f the education sector, especially in the following areas: (i) management o f human resources, including the evaluation o f managers, their training and adaptation to job profiles; (ii) the improvement o f resource allocation and efficiency through the strengthening o f budgetary and financial management, a regulatory framework and hnding formula for the development o f private education, the elaboration o f an instrument including school mapping to allocate resources more efficiently and reduce inequalities; annual audits including the assessment o f school construction and the management o f textbooks; iii) setup o f an Integrated Education Management Information System; and (iv) program coordination and management including learning assessment in the year 2007 and at the end o f the project.

B. Improving the Quality of Basic Education To improve the quality o f basic education in Mali, the following actions will be financed:

o a The setup o f a reading area, including the necessary textbook stocking devices and books in 25 percent o f the classrooms o f schools in the first cycle o f basic education (4,600 classes to be equipped).

Five o f the 13 Teacher Training Institutes (IFMs) will be equipped with a library (9 IFMs were equipped with a library in ESP I). The project will finance about 2000 books, with the equipment for storages and shelves. This will participate in the efforts to improve the quality o f pre-service training and be coordinated with the technical assistance provided by other donors (French Development Agency, AFD) to renew the curriculum and train the trainers.

0 Direct support to all the primary schools with an operational School Management Committee (CGS) to purchase school supplies. This procedure (Direct Support to Improve School Productivity, A D A R S ) has been already tested for two years during the implementation o f ESP I. The annual financial allocation will be CFAF 750 per student, o f which CFAF 500 will be financed by the IDA and CFAF 250 by Mali’s national education budget. The amount for th is procedure has been calculated on the basis o f about 1,400,000 students.

About 3,000 teachers, out o f the 6,600 community school teachers who are not certified, already have the academic level to become professional teachers. They will receive an accelerated training o f 60 days in the teacher Training Inst i tutes to get the teaching sk i l ls and the level to be certified. After certification their salary will be increased out o f the national budget.

To recruit and train about 600 new teachers per year (approximately 1,800 in total) through the 60-day accelerated training program (Alternative Teaching Staff

0

0

0

49

Recruitment Strategy) in the IFMs. ESP I1 will encourage the recruitment o f female teachers in order to increase the proportion o f women in the teaching profession. This procedure was already in place during ESP I.

C. Increasing Access to Education

construction and school equipment, and (ii) vocational education and apprenticeship. To improve access to education in Mali, the following wil l be financed: (i) school

School Construction and School Equipment

0 The construction o f 840 classrooms out o f the 4,500 classrooms that are programmed in the f irst cycle o f basic education in ESP I1 and 130 out o f 2,250 that are programmed in the second cycle of basic education. IDA will finance complete schools o f at least three classrooms and o f a maximum o f six classrooms, including separate latrines for boys and girls, access to water, an office for the school director, and fimiture (desks and chairs), including a locker in each classroom to stock textbooks. Technical specifications for the schools have been established by Mali’s Ministry o f National Education (MoE) and will be communicated by the National Investment Agency o f Territorial Authorities (ANICT) and Teaching Academies (AEs) to the municipalities willing to get financing for the construction. The average cost o f three classrooms varies according to the location (see Table 1 below). The cost o f getting connected to water varies widely. For the costing, it has been estimated that 30 percent o f the schools will need a well, the rest will need to be connected to the existing network. The distribution o f schools by region i s based on the programming done with the simulation model o f the Country Status Report (CSR) with the intention o f reducing progressively disparities and reaching universal access to primary education in 2015. The program for school constructions in basic education wil l be implemented through the ANICT. The construction o f the schools will be the responsibility o f the municipalities.

0 In addition, IDA will finance the construction o f a secondary school o f 12 classrooms for about 600 students in Yorosso. This i s part o f a program o f 3 secondary schools to be built in ESP 11.

50

0 Vocational Training and Apprenticeship. The training o f about 1,800 apprentices (about 600 every year) in the two main sectors o f Construction (masonry, plumbing, electricity, painting, tiling) (1,080 apprentices) and Transformation and Marketing o f Local Products (cotton weaving and dyeing, marketing o f Karite, fruit and vegetables, butcher and animal skins tanning, bakery) (720 apprentices). This will increase the current capacity o f the Vocational Training and Apprenticeship Support Fund (FAFPA), which currently trains about 9,200 students. The training will last 12 months and will be provided alternatively in training centers and in small-scale enterprises and craftsmen. IDA will finance the curriculum design, the training o f trainers, training equipment in the enterprises and the consumables used for the training. In addition, the project will finance an evaluation o f the impact o f this initiative.

D. Strengthening Institutional Management Capacities The IDA-financed strengthening o f institutional management capacities in Mali’s

education sector will be coordinated with the technical assistance provided by other donors. The following actions will be financed:

Improvement o f the management o f human resources, including the evaluation o f managers, their training and adaptation to job profiles, the setting up o f a computerized database to manage teaching and non-teaching staff, and a payroll system;

Elaboration o f school mapping system and setting up o f an instrument to allocate resources more efficiently and reduce inequalities;

Improvement o f the management o f textbooks with the objective o f better monitoring and controlling the distribution to the schools and the use o f textbooks;

Improvement o f public resource allocation to the private sector through an analysis o f the regulatory framework and o f the allocation o f public resources to the private education sector and a proposal for improvements in the regulatory framework and

0

0

0

0

51

more effective finding formulas to promote the private sector o n the basis o n the international experience and best practices;

Strengthening o f the budgetary and financial management in the Administrative and Financial Directorate (DAF) at central level and through the Support Unit for the Decentralization-Deconcentration (CAD-DE) at decentralized level to improve the monitoring and control o f expenditure and the financing o f the financial audits;

Improvement o f the quality o f school construction by setting up a monitoring system in the M o E and in Education Academy Regional Department [Direction d 'Acadkmie d 'Education (DAE)]at a decentralized level and by organizing an annual audit o f the school construction program;

An Integrated Education Management Information System, including an integrated statistical system at al l levels o f education, the design o f the information system, computers, printing equipment and connectivity for the MoE and the Education Academy;

Program coordination and management; and

Learning Assessments in the year 2007 and at the end o f the project.

Table 2: Inst i tut ional Support and Improvement of Management

Institutional Support Human Resources Management Education Management Information System Development o f resource allocation tool Establishment o f a regulatory and legal system School construction audit Financial Audit

Program Coordination and Management (CPS+DAF) Total

Sous total

FCFA 262,500,000 2 10,000,000

52,500,000 26,250,000

105,000,000 39,375,000

695,625,000 304,375,000

1,000,000,000

US% $500,000 $400,000 $100,000 $50,000

$200,000 $75,000

$1,325,000 $579,762

$1,904,762

52

Annex 5: Project Costs

Mal i : Second Education Sector Investment Program

cost Component Activio CFAF US$

I. Improving the quality of basic education (i) Increasing reading practices:

Libraries in Teacher Training Institutions Reading areas for classrooms in basic education

(ii) Support to School Management Committees: Grants to schools to improve their productivity

(iii) Recruitment of qualified teachers: Training o f community school teachers Accelerated training program for new teachers

11. Increasing access to education: a/

(1) School construction and equipment in basic education (ii) Construction and equipment o f a general secondary school (iii) Vocational training through apprenticeship

III. Strengthening institutional management capacities of the education secto (i) Management o f human resources (ii) Improvement in financial resources allocation and efficiency (iii) Set up o f an Integrated Education Management Information Syster (iv) Program coordination and management

5,290,773,947

87,000,000 920,000,000

2,099,773,947

1,365,000,000 819,000,000

11,473,970,651 10,191,170,65 1

652,800,000 630,000,000

1,000,000,000 262,500,000 223,125,000 210,000,000 304,375,000

$10,077,665

$165,714 $1,752,381

$3,999,569

$2,600,000 $1,560,000

$21,855,182 $19,411,754

$1,243,429 $1,200,000

$1,904,762 $500,000 $425,000 $400,000 $579,762

~

BASE COST Contingencies (Price and Physical)

17,764,744,597 $33,837,609 6 10,255,403 $1,162,391

TOTAL COST 18,375,000,000 $35,000,000

a/ ANICT 2005 unit costs. 970 classrooms. Exchange rate: FCFA 525 = US$1

53

Annex 6: Implementation Arrangements

Mali: Second Education Sector Investment Program

The second phase o f Mali’s Education Sector Investment Program (ESIP 11) wil l use the institutional and implementation arrangements o f ESIP I, as detailed in the Project Implementation Manual (PIM). For ESIP 11, the PIM will be updated to take into account the following:

i. the modalities o f the Direct Support to Improve School Productivity (ADARS) to purchase school supplies;

ii. the changes introduced by the texts on decentralization for the transfer o f the management o f the schools and the allocation o f resources to the local government (regions and municipalities);

iii. the use o f National Investment Agency o f Territorial Authorities (ANICT) to channel the resources to local governments for the classroom construction program at the basic education level;

iv. the updated procedure regarding procurement;

v. the ,Fund to Support Vocational Training and Apprenticeship (FAFPA) as executing agency for Component 2 c for apprenticeship programs;

vi. the modalities o f financial and disbursement monitoring ; and

vii. the Environmental and Social Management Plan (ESMP).

The update o f the PIM wil l be a condition o f effectiveness.

A. Coordination

Oversight Responsibilities The Ministry o f National Education (MoE) i s responsible for the coordination o f the

E S P I1 and wil l coordinate with the Ministry in charge o f Vocational Training, which will oversee the apprenticeship program.

Under the presidency o f the Minister in charge o f education, the Cabinet Council o f the M o E will have primary responsibility for ensuring adherence to the general guidelines regarding the scope and orientation o f ESIP 11. It will provide general guidelines on project implementation and ensure that project activities are consistent with the Recipient’s overall pol icy objectives in the education sector.

The Steering Committee is chaired by the Secretary General o f the Ministry in charge o f Education and includes the technical services covered by the Program. It i s in charge o f reviewing technical documents o f the Program and preparing them for submission to the Cabinet Council for approval.

54

Program Management and Coordination The MoE’s Monitoring and Evaluation Unit (CPS will be responsible for: i) assisting the

technical departments o f the Recipient’s Ministry in charge o f education, Teaching Academies ( A E s ) , and Pedagogical Activi ty Centers (CAPS) to prepare and implement their annual work program; prepare and submit progress reports, to update outcome and results indicators and ensure that audit reports are prepared and recommendations implemented; ii) coordinating the actions o f the technical and financial partners in the education sector; and iii) the operations o f the Cabinet Council and the Steering Committee.

B. Planning System The allocation of resources for education sector will be based o n Mali’s 10 regional and

central education development plans and on the regionalized Medium-Term Expenditure Framework (MTEF). Each regional plan wil l be endorsed by local governments and wil l be approved by the appropriate authorizing entity; it will include details o n school construction, teacher recruitment and training, textbook supply, and teaching material. Within the allocation o f resources determined through the MTEF and the national annual budget, each region will prepare an annual budget and work program that will be consolidated in a central directorate work program and budget by the DAF and CPS. Technical assistance wil l be provided by donors.

C. Coordination of Development Partners ESIP I1 will use the same partnerships arrangement that have been implemented

successfully f rom 2001-2005 in E S P I. Fourteen bilateral and multilateral donors work in partnership with the government o f M a l i to support Mali ’s Ten-Year Program for the Development o f Education (PRODEC), initiated in 2001.

The M o E and donors will hold monthly meetings to monitor progress in the implementation of the E S P 11. The group will be chaired by the MOE with one donor ensuring the co-chair for a renewable six-month rotation period. The MOE’s technical departments and donors work together in five thematic commissions. Responsibilities for the follow-up o n specific analytical works are distributed among donors.

Joint supervision missions o f the E S P I1 will be organized twice a year and donors wil l use the same documentation, the same performance indicators, and common Financial Monitoring Reports.

D. Implementation Arrangement for Specific Component

The M o E will be responsible for the implementation o f the ESIP I1 and will coordinate its actions with the ministry o f employment and training who i s in charge o f the implementation o f the apprenticeship program. In view o f the Education for All objectives, the National Directorate of Basic Education i s playing a key role. In addition, due to the sector approach and budget mechanisms used by the MoE, the Administrative and Financial Directorate (DAF), the Planning and Statistical Unit (CPS), and the National Center o n Education (CNE) play a strategic role providing support to territorial collectivities, Teaching Academies (AEs) and Pedagogical

55

Act iv i ty Centers (CAPs) to prepare annual programs, transfer resources and ensure monitoring, Furthermore, in the context o f decentralization, A E s , CAPs, and territorial authorities are entirely responsible for the implementation o f certain components.

The fol lowing entities have responsibilities for implementing specific components o f the

i. The Teaching Academies whose directors are in charge o f coordinating the implementation and monitoring o f the Project at the regional level;

ii. School Management Committees (CGS) are responsible for the execution o f resources transferred by the Direct Support to Improve School Productivity ( A D A R S ) , as indicated in Part B.3.1. o f the Project;

iii. The National Investment Agency o f Territorial Authorities (ANICT) i s responsible for managing the funds and handling the fiduciary functions o f the component dedicated to school construction, and municipalities are responsible for the school construction at the primary education level. ANICT has already an acceptable financial management capacity as assessed during the IDA-financed Rural Community Development Project (PACR);

iv. The Fund to Support Vocational Training and Apprenticeship (FAFPA) i s responsible for the implementation o f Part B.3.2. o f the Project;

v. For each type o f teaching, the MoE’s central technical departments are responsible for the monitoring implementation o f their respective components; and

vi. A E s and CAPs are responsible for executing activities at the regional level, in particular teacher training with the Teacher Training Institutes (FMs) .

IDA-financed port ion o f the ESP I1 project as follows:

56

Annex 7: Financial Management and Disbursement Arrangements

Mali: Second Education Sector Investment Program

A. SUMMARY OF FINANCIAL MANAGEMENT ASSESSMENT

Implementing Entity The program will be managed by the Ministry o f Education (MoE). In l ine with the

harmonization process, some Pooling Donors have committed themselves to strive to reach to the highest degree of alignment with the national budgetary and accountability systems and procedures o f Mal i . St i l l IDA’S intervention wil l consist o f a self-contained operation targeting specific activities within a sector wide approach. Subsequently, pool ing funds and resulting arrangements are considered to add complexity and rigidity. Thus, previous Financial Management arrangements set up during the lSt phase o f this program will prevail and reinforced where need be; the Division des Fonds d’Origine Exte‘rieures o f Direct ion Administrative et Financiere (DAF) within the Ministry o f Education (MoE) wil l handle the financial management.

In l ine with the decentralization process, funds for the “School building” Component wil l be channeled to municipalities v ia a public financial management Agency (ANICT) who wil l handle fiduciary functions to the beneficiaries at rural level. A N I C T has already an acceptable FM capacity as assessed during the IDA-financed Rural Community Development Project (PACR). Hence, similar arrangements wil l be set up for this new operation, including an agreement between A N I C T and MoE .

Staffing The DAF is headed by a senior officer supported by sufficient accountants including

officers and assistants regularly trained during the lSt phase o f this program. They should be capable o f directing and guiding the financial management operations o f the program.

Risk analysis The overall conclusion o f the M a l i Country Financial Accountability Assessment

(CFAA) carried out in 2002 and completed in 2003 i s that “the public finance management system is fairly coherent with relatively strong budget procedures implemented within a clear institutional setting with improving and strengthened control measures ”. I t goes on to add that “This reality should not hide malfunctions for which appropriate dispositions should be taken.” In essence, the C F A A shows that significant progress has been made in the areas o f financial management. The country’s own control systems are operating more efficiently despite a few weaknesses that are being addressed through a Public Financial Management Reform Action Plan (PFWAP) supported by the donor community including the Bank through the budget support operation, the Development Pol icy Credit (DPC). This PFM/AP harmonizes in a comprehensive framework the main recommendations resulting f rom various diagnostic works carried by donors and technical partners in last the decade.

Consequently, various measures to mitigate these risks have been agreed and thus the program risk from a financial management perspective could be moderate provided the risk mitigating measures are properly addressed within the time bound. Therefore financial management arrangements are designed to ensure that funds are used for the purpose intended,

57

and timely information i s produced for program management and government oversight, and facilitate the compliance with minimum fiduciary requirements.

Control R i s k s The ma in control risks, ratings and mitigating measures are tabulated below. The

program r isk from a financial management perspective i s considered moderate provided the r isk mitigating measures below are properly addressed.

Risk

Inherent Financial Management Risks:

- Funds may not be used in an efficient and economical way and exclusively for purposes intended due to corruption and poor governance.

Financial Management Control Risks:

- F lowo f funds

- Financial Monitoring Report

- External Audits

M

M

S

H

Risk Mitigation Measure

The team o f appropriately qualified and experienced staff may reduce this risk. The existing national internal control procedures will apply and could be reinforced where need be. St i l l external audit will be required and followed up adequately.

Delays in funds f low to sub-national persist for “bureaucratic” reasons; this will be mitigated by using ANICT expertise in channeling funds to decentralized levels in the country.

Teething problems may jeopardize timeliness and accuracy o f financial reporting and disbursement process. A FM Consultant will be recruited to provide support including training to staff before effectiveness.

The supreme audit institution i s disputed by three separate bodies (Section des Comptes de la Cour Supr&ne, Bureau du Vkrijkateur Gknkral, and ContrGle Gknkral des Services Publics) with limited

58

will be contracted out from international audit firm to

Information Systems: The integrated financial management information system (IFMIS) set up during the 1'' phase within the MoE wil l be used again after necessary customization. This IFMIS covers budgeting, execution and accounting and reporting functions.

Accounting Policies and Procedures Project accounts wil l be maintained on an accrual basis, augmented with appropriate

records and procedures to track commitments and to safeguard assets. Accounting records will be maintained in Franc CFA. The Chart o f Accounts will facilitate the preparation o f relevant monthly, quarterly and annual financial statements, including information on the following: (i) total project expenditures, (ii) total financial contribution from each financier, (iii) total expenditure on each project component/activity, and (iv) analysis o f that total expenditure into civi l works, various categories o f goods, training, consultants and other procurement and disbursement categories.

Annual financial statements will be prepared in accordance with International Accounting Standards. All accounting and control procedures are documented in a manual o f procedures, a living document that could be updated when necessary. The Chart o f Accounts i s line with SYSCOA Guidelines and wil l facilitate the preparation o f relevant quarterly and annual financial statements .

Planning and budgeting The budgeting procedures for preparation, approval, implementation and monitoring are

well elaborated as prescribed by the UEMOA Guidelines and incorporated within the national PFM Law. Through a participatory approach, each line ministry submits i t s draft budget to the MoF who coordinates the whole process on behalf o f the GoM. Once the budget i s approved by the Parliament, each l ine ministry receives i ts quarterly allocation and i s then allowed to execute it according to the policies and regulations. Besides this strong framework, the M o E has also improved i t s budgeting and planning systems particularly by setting a 3-year rolling Medium Term Expenditure Framework (METF) in l ine with the PRSP. Based on this MTEF, a work program i s annually developed from which the sector budget i s drawn given the other national budget constraints. Reporting on sector budget execution i s provided monthly by the DAF o f M o E and reconciled with the Direction Nationale du Budget.

As Donors have committed themselves to the principles o f harmonization and use the country systems, they will contribute in ensuring budget predictability o f external resources by

59

providing indicative annual financial contributions earlier during the budget and planning process.

Internal controls and audits The existing internal control and audit systems are well articulated in a set o f regulations

and autonomous bodies that are part o f Public Financial Management (PFM) systems. These include the establishment o f internal controls and proper accounting procedures that are in l ine with UEMOA Guidelines. A clear segregation o f functions i s maintained through the system as inherited from the French PFM at any step o f the procedure for both M o E and ANICT: Engagement, Liquidation, Ordonnancement, and Paiement.

The main actors in charge o f ensuring the compliance with the internal controls systems are: Direction Nationale du ContrGle Financier (DNCF, in charge o f ex-ante controls, Inspection des Finances (IF) in charge o f post-ante controls both under the MoF to ensure that financial transactions comply with the regulations. In addition, ContrGle Ge'ne'ral des Services Publics (CGSP) under the Prime Minister also carries out post ante investigation in all l ine ministries including financial transactions and deals with any fraud or corruption allegation. Eventually, another Unit within the President Cabinet i s in charge o f centralizing all these internal audits reports and follow-up their main findings.

Recently a Bureau du VbriJicateur Gbne'ral has been set up to reinforce the effectiveness o f these internal auditors' bodies who are only carrying out regulatory controls with limited capacity. Specific recommendations are being implemented through the ongoing PFWAP for more efficiency and provide higher assurance in terms o f value for money. In addition, the manual o f procedures used for the previous phase would be updated and used.

External audits Although the CGSP i s recognized at INTOSAI as national Supreme Audit Institution, the

CFAA concludes that i t lacks independence in addition to i t s internal limited capacity. Furthermore, the Section des Comptes de la Cour Supr6me which should play this role i s relatively weak. Besides i t s reports are regulatory and administratively orientated and thus will not give enough assurance of the proper use o f funds. IDA will require a financial external audit for the project within six (6) months after year-end.

These external audits will be carried out by independent and international auditors appointed on acceptable terms o f reference. A single opinion on the Financial Statements in compliance with International Standards on Auditing (ISAs) will be required and the extent to which the Financial Monitoring Reports (FMR) can be relied upon as basis for disbursements.

In addition to the audit reports, the external auditors will submit a Management Letter giving observations and comments, and providing recommendations for improvements in budgeting, accounting records, information systems, controls.

60

Financial Monitoring Reports and Disbursements:

The Finances Division @AF) o f the MoE, in liaison with ANICT, wil l prepare on a quarterly basis and submit the Financial Monitoring Report (FMR) to Donors within 45 days of end o f each quarter for the purpose o f monitoring the sector program implementation. These reports will provide the basis for disbursement. FMR would comprise the following reports:

a. for each quarter and year end-to date, a report on the transfers to and withdrawals from the designated account, with a copy o f the bank statement for the account;

b. financial report for allocations and expenditures from budget head, comparing actual to budgeted figures by budget line, for the quarter cumulatively for the FY to-date;

c. cash forecast statement for the following semester; d. procurement management report for procurement above the threshold and update on the

procurement plan; and e. physical progress report.

These financial statements and the procurement report should be substantiated by narrative comments on implementation progress. Formats for FMRs have been discussed and will be agreed at negotiations.

On an annual basis the finance division o f the MoE will prepare and have audited by external auditors the Financial Statements and then submit them to donors by end June o f the following FY, The annual consolidated financial statements should compare actual and budgeted figures by cost center and l ine item and include: (i) a statement o f sources and uses o f funds (by Credit Categoryhy Activity showing each Donor’s contributions separately); (ii) a statement o f cash position for Program Funds from all sources; (iii) uses o f funds by program activity; (iv) a summary on Pooled funds account and non-Pooled accounts; and (v) notes to the Financial Statements.

Funds Flow Arrangements:

To facilitate project implementation and reduce the volume o f withdrawal applications, two Designated Accounts in FCFA will be opened by M o E and ANICT in commercial bank on terms and conditions acceptable to IDA. The authorized allocations would correspond to the cash forecast for two quarters, as provided in the quarterly Interim Financial Report for Designated Accounts A, and B respectively,. To the extent possible, all o f IDA’S share o f expenditures. should be paid through the designated accounts.

Disbursement IDA funds to the Program will be done the basis o f acceptable Financial Monitoring Reports (FMRs) as described below.

An advance will be made into each special account at the inception o f the Project based on the initial six months’ cash flow forecast. The advance will be meant to cover IDA-financed expenditures for 6 months as indicated in the forecast. After every subsequent quarter, the program will submit FMRs which indicate: (i) the amount o f funds utilized during the precedent period; (ii) a cash balance position o f the PF Account; and (iii) a cash flow forecast for the

61

following 6 month period. The cash request at the reporting date wil l be the amount required for the forecast period as shown in the approved FMRs less the balance in the Account at the end o f the quarter. Subsequent disbursements o f IDA funds will be made in respect o f this request.

Amount (in US$ million)

The option o f disbursing the funds through direct pavments from IDA on contracts above a pre-determined threshold wil l also be available. Withdrawal applications for such payments will be accompanied by relevant supporting documents such as copies of, contractors’ invoices and appropriate certifications.

% Financed

Disbursements o f IDA funds to designated account B managed by ANICT will be made also on the basis o f cash forecasts for two quarters and according to the terms and conditions o f a signed Management Services Contract.

$10.0

$3.4 $18.5

Table of Allocation of IDA Proceeds

100%

100% 100% 100%

bisbursement Categories

, IMPROVING QUALITY OF EDUCATION (Special Account A)

I. IMPROVING ACCESS TO EDUCATION (a) MOE - Special Account A

(b) ANICT - Special Account B

II. INSTITUTIONAL STRENGTHENING AND PROGRAM COORDINATION (Special Account A)

V. UNALLOCATED (Special Account A)

TOTAL

$1.9

$1.2

$35.0

100%

100%

Funds flow Diagram

~t ANICT I 62

Circuit des Fonds ANICT

BAILLEURS DE FONDS ETAT MALIEN (BSI)

\ )I I'ANICT

Compte Bancalre FlCT REGIONAL

Ordre de Receitede Rbgularisation Maire 6 D

(Ordonnateur)

t

Trhorier Payeur RBgional

(Payeur du FlCT RBgional)

Encalaw T1Q-r (Compte i la BDM)

I

Compte de Gestion

Receveur Municipal (Payeur)

alimenter la Rdgi

Circuit des Fonds 1

63

Counterpart funds and taxes: Based on the M a l i Country Financing Parameters disclosed in 2005, IDA financing wil l

be set at 100 % in this social Program for any expenditure including taxes.

Procurement Arrangements Procurement will be carried out by the MOE, DAF Staff, except for: (a) school

construction and equipment which will be delegated to the municipalities, and (b) school supplies which will be delegated to school committees. The details o f procurement procedures are explained in Annex 8 and will be detailed in the PIM.

Financial Covenants The public financial management system (PFM) i s expected to be improved on the basis

o f the Reform Act ion Plan being implemented by the borrower. Financial Statements are prepared and audited in a format acceptable to donors, and are adequate to reflect resources and expenditures in respect o f the program in accordance with sound accounting practices.

Supervision Plan Supervision activities wil l include: (i) review o f quarterly FMRs; (ii) review o f annual

audited financial statements and management letter as we l l as timely fo l low up o f issues arising; (iii) and participation in program supervision missions as appropriate. The Bank F M S in charge wil l play a key role in monitoring the timely implementation o f the financial management arrangements.

64

Annex 8: Procurement Arrangements

Mali: Second Education Sector Investment Program

A. General Procurement Arrangements

Procurement for the proposed i s to be carried out in accordance with the Wor ld Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits," dated M a y 2004, and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers," dated M a y 2004, and the provisions stipulated in the legal agreement.

The various items under different expenditure categories are described below. The different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame for each contract to be financed by the Credit are agreed upon by the Borrower and the Bank in the procurement plan. The procurement plan wil l be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

Procurement of Works (US$16.60 million) Works procured under this project would include the following: (i) class room

construction at the first and second cycles o f basic education (970 classrooms); (ii) equipment o f schools in water supply and latrines; and (iii) construction o f and equipment for a general secondary school (for 600 students). Procurement will be done using the Bank's Standard Bidding Documents (SBDs) for a l l international competitive bidding and Mal i 's national SBDs agreed with or satisfactory to the Bank. School construction and equipment in latrines consists in small works spread in the country and the works would be under the responsibility o f the beneficiary municipalities. These works will be done through small works procedures. School equipments in water supply may be, whenever possible, through grouped contracts for schools that are in the same area. The construction of the secondary school may conduce to works for large-scale contracts, which wil l l ikely attract foreign bidders.

In this regard, most o f the works are small works in remote areas, and may not attract foreign bidders: they may be procured under national competitive bidding or most l ikely under shopping for small works. The construction o f the secondary school may conduce to a large scale contract which may attract foreign bidders: this contract may be procured under international competitive bidding. The procurement wi l l be done using the Bank's SBDs for al l international competitive bidding and using national SBDs agreed upon by (or satisfactory to) the Bank.

National competitive bidding, advertised locally, may be used for contracts estimated to cost less than US$500,000 equivalent, and will be carried out with procedures acceptable to the Bank and ensuring the following: (i) the bidding documents shall provide clear instructions on how bids should be submitted, how prices should be offered, and the place and time for submission o f bids; (ii) bids are advertised in national news paper with wide circulation; (iii) The procedures shall provide for adequate competition in order to ensure reasonable prices, and methods used in the evaluation o f bids and the award o f contracts shall be objective and made known to al l bidders in the bidding documents and not be applied arbitrarily: the contract i s awarded to the lowest evaluated bidder provided this one i s qualified; (iv) bidders are given

65

adequate response time (minimum four weeks) to prepare and submit bids; (v) if foreign bidders wish to participate, they are not precluded from participating; (vi) no preference margin i s granted to domestic contractors; and (vii) the procedures shall also include public opening o f bids, publication o f results o f evaluation and o f the award o f contract and provisions for bidders to protest.

For small works, the estimated cost depends on the situation o f the site o f the school, as those are sparred in the country: the maximum cost estimate might be US$65,000. Then, those small works (estimated to cost less than US$65,000 equivalent per contract) may be procured through shopping, based on price quotation obtained from at least three contractors in response to a written invitation to qualified contractors.

In exceptional circumstances, contracts for works which meet the requirements o f paragraph 3.6 o f the Procurement Guidelines for Direct Contracting, may, with the World Bank's prior agreement, be procured in accordance with the provisions o f paragraphs 3.6 to 3.7 o f the Procurement Guidelines.

Procurement of Goods (US$9.91 million) Goods procured under this project would include (i) equipment and school fiuniture for

schools at the first and second cycles o f basic education (seats, tables, cupboards, etc.); (ii) equipment for the general secondary school to be built; (iii) textbook stocking devices and books in 25 percent o f the classrooms o f schools in the f irst cycle o f basic education (4,600 classes to be equipped); and (iv) equipment o f libraries and school textbooks in five Teacher Training Institutes (2,000 textbooks per Teacher Training Institute).

Textbooks may be purchased under international competitive bidding. The procurement will be done using the Bank's SBDs for all international competitive bidding and national SBDs agreed upon by or satisfactory to the Bank.

National competitive bidding, advertised locally, may be used for contracts estimated to cost less than US$200,000 equivalent, and will be carried out with procedures acceptable to the Bank and ensuring the following: (i) the bidding documents shall provide clear instructions on how bids should be submitted, how prices should be offered, and the place and time for submission o f bids; (ii) bids are advertised in national news paper with wide circulation; (iii) The procedures shall provide for adequate competition in order to ensure reasonable prices, and methods used in the evaluation o f bids and the award o f contracts shall be objective and made known to all bidders in the bidding documents and not be applied arbitrarily: the contract i s awarded to the lowest evaluated bidder provided this one i s qualified; (iv) bidders are given adequate response time (minimum four weeks) to prepare and submit bids; (v) if foreign bidders wish to participate, they are not precluded from participating; (vi) no preference margin i s granted to domestic contractors; and (vii) the procedures shall also include public opening o f bids, publication o f results o f evaluation and o f the award o f contract and provisions for bidders to protest.

66

Small quantities o f goods. available o f f the shelve and which cannot be grouped into packages o f a least US$50,000, will be procured through shopping, based on price quotation obtained from at least three reliable suppliers in response to a written invitation to qualified suppliers.

In exceptional circumstances, contracts for goods which meet the requirements o f paragraph 3.6 o f the Procurement Guidelines for Direct Contracting, may, with the World Bank‘s prior agreement, be procured in accordance with the provisions o f paragraphs 3.6 to 3.7 o f the Procurement Guidelines.

Procurem en t of Non- Con sulting Services

Non-consulting services if any, will be procured using bidding documents agreed with (or satisfactory to) the Bank. For those contracts, national competitive bidding wil l be carried out. For a contract estimated to cost less than US$50,000, shopping procedures may be used in the same way as for the procurement o f goods.

In exceptional circumstances, contracts for non-consulting services which meet the requirements o f paragraph 3.6 o f the Procurement Guidelines for Direct Contracting, may, with the World Bank’s prior agreement, be procured in accordance with the provisions o f paragraphs 3.6 to 3.7 o f the Procurement Guidelines.

Selection of Consultants for Consultants and Training (US$& 09 million)

Consultants’ services under this project will include: (i) management o f human resources, including the evaluation o f managers, their training and adaptation to job profiles; (ii) elaboration of school mapping system and setup o f an instrument to allocate resources more efficiently and reduce inequalities; (iii) management o f textbooks; (iv) setup o f a regulatory framework to improve resource allocations in order to develop private education; (v) setup o f an Integrated Education Management Information System; (vi) monitoring as well as annual audit to assess the quality o f school constructions; (vii) strengthening o f budgetary and financial management; (viii) learning assessment in the year 2007 and at the end o f the project; (ix) funds management; (x) contract management for the construction o f infrastructures; (xi) consultants’ services related to the construction o f infrastructures; (xii) financial audits; and (xiii) and training, including vocational training through apprenticeship.

In most o f the cases, consultants’ services shall be procured under contracts awarded on the basis o f Quality- and Cost-based Selection. However, when appropriate, other methods may be used if the requirement for such methods are met according to the related provisions o f the Consultants Guidelines. The other methods may be: Selection Under a Fixed Budget; Least-cost Selection; Selection Based on Consultants’ Qualifications; Single Source Selection; and Individual Consultants

Short l is ts o f consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely o f national consultants in accordance with the provisions of paragraph 2.7 o f the Consultant Guidelines. Specific consultants’ services involving any special arrangement for the use o f universities, government research institutions,

67

nongovernmental organizations, will follow special arrangements regarding the selection o f such entities.

For consultants’ services related to small works under communities’ responsibilities, the selection method based on consultants’ qualification or the selection method based on a fixed budget may be used. Mali’s Ministry of National Education (MoE) will assist the concerned communities in the selection process.

For training, workshops and study tours if any, at the beginning o f each year, the MoE will submit i t s proposed plans in the form of an annual action plan for the coming year, to be reviewed by IDA. The plan would indicate the persons or groups to be trained, the type o f training to be provided, indicative learning outcomes, the provider and the location o f the training, i t s estimated cost, and other relevant information that may be relevant. Whenever possible, the selection o f training institutions for workshopskraining should be based on a competitive process, using the selection method based on consultants’ qualification.

The standard Request for Proposal (WP), as developed by the Bank, will be used for the selection o f consultants.

The DAF will ensure widely publicized Requests for Expressions o f Interest (REIs) for all contracts for consultants (but not mandatory for individual consultants), except for single source when applicable.

Procurement of Operational Costs

Operational costs that would be financed by the project would be procured using the administrative procedures stated in the manual o f procedures for the project, reviewed and found acceptable to the Bank.

Reference to the National Procurement System

The Malian Procurement Code constitutes the Decree no 95-401P-RM o f November loth, 1995. This code was reviewed in 1999 with IDA assistance, and an amendment was made under the Decree no 99-292P-RM o f September 21, 1999. In general, the country’s procurement procedures do not conflict with the Bank guidelines. N o special permits or licenses need to be specified in the credit documents, since Ma l i procurement practices allow IDA procedures to take precedence over any contrary local regulation or practice.

‘

A Country Procurement Assessment Review (CPAR) was carried out in Ma l i in December 1998 flagged the main issues such as the lack o f capacity among the Borrower’s staff, absence o f standard bidding document at the national level, insufficient capacity o f local contractors for contract subject to international competitive bidding, and corruption practice. Recommendations were made to address these issues. In addition, an IDF Grant was provided to strengthen the Borrower’s capacity in procurement, modernize the procurement process and improve the regulation.

68

A CPAR update has been carried out in 2004, and the final report have been delivered to the government o f Ma l i in January 2006: the recommendations and action plan o f this exercise will be taken into consideration during project implementation.

The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are presented in the Project Implementation Manual or the equivalent document.

B. Assessment o f the Agency’s Capacity to Implement Procurement

The assessment o f the capacity o f the Implementing Agency to implement procurement actions for the project has been carried out by Cheick A. T. Traore, Sr. Procurement Specialist, on March 9, 2006. The procurement activities will be carried out by the Administrative and Financial Directorate (DAF) o f the MoE and by the Planning and Statistical Unit (CPS) o f the MoE at the central level. The DAF will deal with the procurement o f general goods and consultants’ services, while the CPS will deal with procurement o f works and equipment for schools and the related consultants’ services. Each unit includes procurement-trained staff. At the decentralized levels, procurement will be done by the local authorities including at communal level. There, the procurement capacity i s week, in particular at communal level.

The procurement process generally used by those services follows the Malian Procurement Code which i s regulated by the Decree no 95-401P-RM o f November loth, 1995, but they use also the World Bank. This Code was reviewed in 1999 with IDA assistance, and an amendment was made under the Decree no 99-292P-RM o f September 21, 1999. In addition a ministerial decree which define the procurement control process at the decentralized level was signed in 2000 (Arrktk N’OO-1383/MEF--SG du 11 mai 2000fixant les dispositions particulibres relatives CE la passation des marchks publics des collectivitks territoriales). In general, the country’s procurement procedures do not conflict with the Bank guidelines. N o special permits or licenses need to be specified in the credit documents, since Ma l i procurement practices allow IDA procedures to take precedence over any contrary local regulation or practice.

The recommendations and action plan o f the CPAR exercise (capacity building, institutional reinforcement through a regulatory body, an appeal body, strengthening o f the private sector, judiciary reinforcement, etc.) wil l be taken into consideration, and the project execution will benefit from these recommendations.

Analysis o f DAF procurement capacity and specific risks:

0 Organization. The DAF i s responsible for the preparation o f i t s procurement documents.. The DAF chairs the MoE’s procurement committee and liaises with the General Directorate for Procurement Control (DGMP). At the decentralized level, the ministerial decree defines clearly the procuring entity and the control entities. The control will be done at the decentralized level, not at the DGMP level.

P Risk: There i s no apparent r i sk in this organizational scheme.

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Support and control systems. The M a l i Procurement Code contains the general requirements for such control, but those requirements don’t ensure the independency o f the system, so that procurement audit or other related measures are not effective.

9 Risk: The risk may be less confidence o f the private sector in the procurement s ys tem .

9 Recommendation: The action plan related to the CPAR update would solve this issue, but not being currently in place (likely not expected before 1 year), the focus must be put on the capacity o f the DAF and o n the procuring entities at the decentralized level, to handle efficiently the procurement function and ensuring full transparency and reliance.

Staffing. The DAF procurement and public contracting unit consists o f five people. This number would be sufficient to handle the procurement activities. In addition, municipalities responsible for school construction will have the opportunity to hire contract management agencies when necessary for the procurement o f works and equipment related to the construction and equipment o f schools.

9 Risk: The r isk is l o w in this context. However, at the decentralized level, the procuring entities may need an assistance to handle the one or two contracts they will have.

9 Recommendation: The actual number o f staff should be maintained during project execution; adequate measures must be prompted for assistance at the decentralized level.

Professional experience. The staff has proficiency in procurement according national procedures, but needs capacity building in Wor ld Bank procedures. At the decentralized level, the capacity i s week.

9 Risk: This risk i s high in this context.

9 Recommendation: Procurement training must be granted to the procurement staff.

Record-keeping andfiling system. The filing system i s poor and the staff has l imited facilities for filing. In terms o f logistical facilities, the existing means are neither sufficient, nor efficient: no sufficient office space, insufficient office equipment, insufficient information technology equipment and software, l imited access to electronic mails, etc; the issue may affect the efficiency o f the system.

9 Risk: Fiduciary compliance may not always be supported by appropriate documentation.

9 Recommendation: the DAF may acquire office equipment and information technology tools in order to modernize i ts filing system.

Procurement planning and monitoring/control systems used. The staff needs to be familiar with procurement planning and doesn’t have sufficient monitoringkontrol systems in use. However, such system may b e installed only after a wide procurement reform at the national level; this i s to be taken into account.

0

0

0

0

70

> Risks: Poor procurement planning, which can cause delays and poor implementation performance.

> Recommendation: ensure capacity building in procurement for the Staff involved in the procurement function: training inside the country and abroad.

Capacity to meet the Bank’s procurement reporting requirements. The capacity for procurement reporting requirements exists, but it i s not relevant to meet the Bank’s requirements. Adequate training in this area will be needed.

> Risks: Poor procurement.

> Recommendation: Ensure capacity building in procurement for the staff involved in the procurement function: training inside the country and abroad specifically on the Bank’s procedures.

Overall risk assessment and recommendation o n prior-review threshold levels and Proposed frequency o f procurement post-review missions or the use o f independent post review o f procurement.

> The overall r isk in procurement i s high.

> Recommendation: In addition to the prior review supervision to be carried out from the Bank offices, carry out one supervision mission with respect to the possible issues related to the procurement capacity o f the Ministry o f Education, each semester. Concerning the contracts at the decentralized level, an annual technical audit i s scheduled during the project execution: this audit must cover the procurement process.

0

0

The review thresholds can be the fol lowing figures:

- For works: contract estimated to an amount equal or above

- For goods: contract estimated to an amount equal or above

For consultants: contract estimated to an amount equal or above

US$500,000;

US$200,000; and

US$lOO,OOO for consultant firms, and equal or above US$50,000 for individual consultants.

-

C. Procurement Plan During negotiations, the procurement plan was approved and is available at the DAF.

The Procurement Plan will be updated in agreement with the project team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

D. Frequency of Procurement Supervision In addition to the prior review supervision to be carried out f rom Bank offices, the

capacity assessment o f the DAF has recommended one supervision mission per semester, to visi t the f ield to carry out post review o f procurement actions.

71

u 0 0 N

N me

b n E $! E

t- 0 0 N

.e

,8 E d

8 8

E E E

m 2

a 2

a 2

- 8 2 IA m

N

v1

>

-

0 Z

-

P 2

:s 5 a

0 0

R r-

3

C

2 :

i

t C

, ?

a r E

i :

c

Table 1: Thresholds for Procurement Methods and Prior Review

ishopping for small (three /quotations)

____ ponir<ctvalue (threshold) Frocurement method

',,5,000

\Contracts subject to prior review ll_-__-l

/ExpenditurLitegory

, i------ {The first three contracts irremective o f their value. ._ _____-I__

In al l cases, the description o f the works i s subject to prior review; but in case of repetitive works or standard works, the review i s limited to the first

~AII contracts International competitive ibidding

r--------- I

!

i I

The first three contracts irrespective of their value. In al l cases, the description of the goods i s subject

stindard goods, the review i s limited to the first three contracts.

but in case of repetitive goods or = or > $50,000 and < $200,000

Shopping $50,000

- 3. Nonconsulting services i--- Post-review: but the description of the services will

be prior reviewed and approved on the basis of an

I 14. Consultant services

I

I

I - I

15. Training, workshops,

I ITudy tours

annually based On the Work Program, and to be stated

~AII contracts International competitive jbidding

In al l cases, T e r n o f Reference are subject to prio review.

CQ when possible: in al l cases, planning to be agreed annually based on the Annual Work Program

II Values Post-Review (see note (iii) below)

$200,000

All short lists are subject to Request o f Expression o f Interest (non-mandatory for individuals).

approved by the Bank.

I--- 1

75

Annex 9: Economic and Financial Analysis

Mali: Second Education Sector Investment Program

This annex summarizes the economic analyses that were conducted during the identification, preparation, and appraisal o f the second phase o f Mali’s Education Sector Expenditures Program (ESP 11) for the period 2006-2009 to support the policy reforms o f Mali’s Ten-Year Program for the Development o f Education (PRODEC). This economic analysis outlines: (i) the economic and social impact o f education investment in Mali; (ii) the financing o f the education sector; (iv) the efficiency and equity in the distribution o f spending in education; and (v) the sustainability o f the education development strategy to reach the Millennium Development Goals.

Links to Country Assistance Strategy (CAS) The CAS for Ma l i emphasizes and supports three main components o f Mali’s Poverty

Reduction Strategy Paper (PRSP): (i) the promotion o f economic growth; (ii) the development o f human resources; and (iii) the improvement o f the management o f public finances and governance. The CAS proposes a Sector-Wide Approach (SWAP) in the social sectors. Mali’s ESP i s in line with the CAS, which plans two major operations in human development sectors- . namely, education and health.

Links to Sector Work The Education Country Status Report was part o f the preparation o f the ESP 11. The

Country Status Report identifies several policy measures that might help Ma l i improve the outcomes o f i t s education sector with a view toward achieving the Mi l lennium Development Goal o f ensuring that all boys and girls have access to and complete a full course o f primary education. Even though investments in the other two education levels are important, a particular emphasis should be given to the f i rst cycle o f the primary education, because the completion rate here was about 43 percent in 2005.

Simply continuing i ts current educational policies would not allow Ma l i to reach the Millennium Development Goals in 2015. For that reason, the Country Status Report recommends the following: (i) reducing the cost o f schooling for poor families; (ii) managing the multiplicity o f personnel status and types o f schools; (iii) improving the allocation o f funds to schools and the efficiency o f transforming resources in effective learning at the school level; and (iv) implementing a short and dual in-service training program for teachers that would increase qualified teaching staff.

76

Economic and Social Impact of Education Investment

Social Impact. Education’s impact in alleviating poverty, improving literacy and transmitting inter-generational access to education i s positive and important-in particular, for changing women’s behaviors in terms of fertility, reproductive health, and children’s health. The estimated social impacts on adult age populations o f various levels of education in Mal i have been consolidated in a global score o f the entire social sectors on the basis o f a household survey done in 2004 (see Table 1). The analysis shows that the f i rs t cycle o f primary education i s the education level that generates the most social impacts: about 50 percent o f social effects are reached within the six years o f the first cycle o f primary education. This figure i s high for health variables (over 60 percent) and low in terms o f population variables (about 40 percent). The second cycle o f primary education has positive impacts too, although though the margin i s lower (about 25 points) and in secondary education the margin i s only estimated at 20 points.

Gross impact

Table 1 : Consolidated measure of the social impact on adult age populations of different levels of education in various social dimensions

Net impact

Impact

Literacy Poverty risks Children’s education Population

Age at first birth Interval between birth Use of contraceptive Total number of births

Maternal health Antenal visits Vaccination prior to delivery Birth with the help of health prof.

Health and infant mortality Complete vaccination Taking vitamin A Mortality prior to 5 years old

GLOBAL SCORE

50 45 48

45 83 45

56

Gap between I* and 2nd cycle of primary education

Gross Net impact

28 29 31 31 25 25 29 27 29 31 22 23 15 19 21 24 31 28 24 21 28 26 16 6 30 34

24 27

Gap between a complete 2nd

cycle primary education and a complete secondary education Gross impact

14 32 44 25 26 37 10 6 12 12 17 28 1 25

20

Net impact

5 24 18 33 44 25 25 44 18 11 19 24 19 29 0 34

21

Economic Return. The investment in schooling, in terms o f mobilizing resources (public and private, financial and on time) so as to produce qualified individuals for productive life, has a high rate o f return in Mali: about 10 percent for the f i rst years o f schooling, 15 percent for a complete primary education and about 25 percent for secondary level education.

The human capital theory provides an instrument that allows estimating the increase o f individual incomes resulting f iom one year o f additional schooling. The standard model o f

77

human capital by Mincer and Becker assumes that employees are more or less paid by their marginal productivity and that this will increase with the cumulated human capital. The differences in salaries observed in concordance with the level o f education express the productivity gain from the training provided.

Table 2 below provides data from the (EPAM) survey on the average annual income o f employee per category and highest level o f education in 2004. The average global relation between employees’ annual income and the level o f education: The average annual income o f CFAF 311,043 for unskilled workers increases to CFAF 401,518 for workers who have completed the f i rs t cycle o f primary education and CFAF 808,884 for those who have reached higher education.

Table 2: Average annual income of employee per category and highest level of education for 2004 (in CFAF)

Senior public official Mid-grade public official Laborer, skilled public official Unskilled public official Senior private official Mid-grade private official Laborer, skilled private official Unskilled private official Laborer, skilled informal official Owner, informal associate Other informal Total

None

501,276 377,009

328,594

214,832

328,319 540,085

235,230

82,693

195,014

234,299

109,025 31 1,043

Education for Development Ctr. (CED) 661,411

497,447

433,565

283,462 712,618

433,201

310,375

109,110

257,312

309,147 143,853 410,407

Koranic school 522,065

392,645

342,222

223,742

341,935

562,484

244,985

86,123

203,102

244,016

113 546 323 943

Fund 1 647,086

486,673

424,174

277,322 697, I 83 423,819

303,653

106,747

251,739

302,452

140,738 401.51 8

Fund 2 888,664

668,364

582,533

380,856

582,044 957,465

417,016

146,599

345,721

415,367

551,418 I 93,280

Secondary General I ,ooa,ogi

m,i 85

660,819

I ,086,138 432,039

660,265

473,059

166,300

392, I 83

471,188

219,255 625 523

Secondary Technical & Vocational

920,443

1,223,831

802,240

I ,318,581 aoi ,567

574,298

201,890

524,499

476,113

572,026

266,177 759.390

Higher Education 1 303 595

980 433

a54 526

558 683

853,810 1,404,520

61 1,728

215,048

507,144

609,308

283,525 808.884

Ensemble 550 577

414 088

360 91 1

235 961 593,203 360,609

258,365

90,826

21 4,194

257,343

I 19,748 341.634

To determine the private rate o f return o f N years o f education, a standard practice based on Mincer’s model that estimates an equation which basic denomination i s the following:

L n O = c + rN + aE + bE’ + u

In the case o f Mali, there are many other factors that can explain differences in incomes, besides the level o f education: the institutional sector, gender, social background, location, etc. The econometric estimation i s conducted for the young population, between 25 to 35 years old, in order to identify the trends for young graduates from formal education institutions. The table below provides the results for active employed population (data from EPAM 2004).

78

Table 3: Estimation of the relationship between level of education and workers’ income (25 to 35 years old) in 2004

Var iable Years o f education Squared years o f education Vocational training Experience Squared experience Private/informal Publidin formal Merdwomen

Coefficient 0,095 0,OO 17 0,073 0,120

0,093 0,334 0,637

-0,0023

Significance *** *** *** *** *** *** *** *** *** I Constant 13,519

Dependent variable: In (income), R2 = 0.237, ***: significance o f 1 percent.

The rate o f retum o f education i s about 10 percent for the first years o f schooling and substantially increases with the number o f years o f education (1 5 percent for a complete primary education and about 25 percent at the secondary level). In reference to comparable studies, those who have enrolled in vocational institutions make more income than those who have followed the general stream; the differential in income i s however moderate (7.3 percent in average) and a key question wil l be to know whether this supplemental gains o f those who have enrolled in vocational schools i s comparable to the more or less high costs for training; the answer to this question i s in fact negative.

The retum o f one year o f professional experience i s 12 percent; however i t decreases when more experiences are acquired. The structure o f incomes also shows that with comparable school characteristics, men have a considerable higher income than women. They make in average 60 percent more than women. This differential i s especially high in Mali. In terms of gender iniquities in accessing education, one finds a combination o f inequities in the range o f income available on the labor market for the same level o f education.

There are significant differences o f income by type o f employment. For individuals with the same level o f education, similar professional experience, same gender, the level o f income i s in average high in the public sector and low in the informal sector. Incomes in the modem private sector, however, are slightly higher than those observed in the informal sector (+9.3 percent); this suggests the availability o f an excellent global competitiveness on Mal i private labor market and remunerations in the informal sector that are comparatively more rational than those in the modem private sector. The analyses show that individuals who work in the public sector (mainly in public administration) have on average incomes that are higher than individuals employed in the private sector (about 25 percent in comparison to modem private sector and +33 percent in informal sector).

Fin an cing Education Macroeconomic Situation. From 2000 to 2004, Mali’s Gross Domestic Product

(GDP) increased from CFAF 1,724.7 bil l ion to CFAF 2,671 bil l ion in 2004 (Table 4). In

79

constant monetary values 2004, it increased during the same period from CFAF 2,057.6 bil l ion to CFAF 2,671 bil l ion in 2004. Over this period, the population o f Ma l i grew from 10.4 million inhabitants in 2000 to about 11.8 mill ion inhabitants in 2004. A consequence o f this constant demographical growth i s that the GDP per inhabitant, if it did improve between 2000 and 2004, i s characterized by less progress o f the country GDP. The GDP per inhabitant increased from CFAF 159,105 in 2000 to CFAF 225,500 in 2004. This latest growth i s characterized by an average annual growth rate o f 2.3 percent from 1995 to 2000 and a l i t t le bit over 4 percent since.

The government of Mali’s internal revenue increased considerably, from CFAF 237.9 bil l ion to CFAF 384 bil l ion between 2000 and 2004 in ordinary monetary values, and from CFAF 283.7 bil l ion to CFAF 384 bil l ion in constant monetary values. While separating them from the population growth, the progress o f the amount o f the internal revenue in constant CFAF related to the entire population shows only a moderate growth.

With respect to government expenditures, a dual trend could be observed. On the one hand. there was a significant increase in terms o f ordinary monetary values as well as in terms o f real values (an average real growth rate o f 4.5 percent); on the other hand, the tendency in reducing the share o f investment expenditures and increasing concomitantly recurrent expenditures and in particular available recurrent expenditures excluding debt services, this has a tendency to stabilize in constant terms at a level (CFAF 17.4 billion) representing only 4.7 percent o f the entire recurrent expenditures o f the country in 2004.

80

Table 4: Main aggregated macroeconomic and budgetary growth, 1990-

1,927.7

2,307.5

11.094

2004 rears k o s s Domestic Product GDP) (billions CFAF) Current price (CFAF)

Constant price (CFAF 2004)

2,329.9

2,409.1

11.346 'opulation (millions) ;DP per inhabitant

(thousands CFAF) Current price (CFAF) Constant price (CFAF

2004) 207,985

367.3 Zovernment resources thousands CFAF)

Constant values in 2004 Percentage o f GDP

Internal Resources Percentage o f GDP Constant values in 2004 Per inhabitant, constant

values in 2004 External Resources

Recurrent loans Investment loans

Percentage o f GDP

212,327

423.0

Zovernment expenditures :in billions CFAF) Recurrent Expenditures

Interest on debt Recurrent expenditures

excluding debt Investment expenditures

Percentage o f recurrent expenditures in total expenditures

14.7 339.6

30609

83.6 27.5 56.1 4.3

502.1

279.8 13.8

266.0

222.3

55.7

2000

14.5 348.7

30730

85.8 16.6 69.2 3.7

574.1

308.7 16.3

292.4

265.4

53.8

1,724.7

2,057.6

10.840

159,105

189,812

327.9

391.2 19.0 237.9 13.8 283.8

26 182

90 32.2 57.8 5.2

408.8

200.2 14.4

185.8

208.6

49.0

15.3 390.2

33 649

112.4 51.7 50.7 4.5

2001 12002

14.4 384.4

32447

93.8 19.5 74.3 3.5

173,755 205,345

439.7 19.1 283.7

437.4 18.2 33 7.2

!003

1,514.2

!,55 1.9

.1.595

!16,830

!20,082

196.8

504.3 19.8

lo04

1,671.2

l,67 1.2

11 3 4 7

225,477

225,477

478.2

478.2 17.9

594.5

316.3 15.5

300.8

278.2

675.0

366.7 17.4

349.3

308.3

53.2 154.3

Public Expenditures for the Education Sector. Recurrent education expenditures represented 24 percent o f the government total recurrent expenditures excluding debt (Table 5). Now it i s 23.4 percent o f these expenditures i s allocated to the sector. The measurement o f education expenditures in ratio o f the country GDP (3.06 percent) remains also moderate in the intent o f reaching the mi l lennium development goals. An average 3.8 percent i s observed in a group o f most performing countries vis-&vis universal primary education.

81

Table 5: Education public expenditures, implementation, 1999-2004

42,046 12,751 1,462 11,289

54,797

43,508

24.0

15.3

2.66

Recurrent expenditures (billions CFAF) Investment expenditure (billions CFAF)

National financing External financing

Total expenditures (billions CFAF) Total expenditures on national financing (billions CFAFI

49,240 57,907 66,726 71 ,I 89 81,870 13,285 9,623 13,533 45,494 46,874 2,768 2,274 3,091 5,621 4,685 10,517 7,349 10,442 39,873 42,189

11 6,68 128,74 62,525 67,530 80,259

52,008 60,181 69,817 76,810 86,555

26.5 21.8 22.8 23.7 23.4

20.7 20.4 19.8 18.5 21.3

2.85 3.00 2.86 2.83 3.06

4

Recurrent education expenditures in percent of

Recurrent education expenditures in percent of

Recurrent education expenditure in percent of GDP Total national education expenditures in percent of GDP

recurrent expenditures excluding debt

government domestic revenue

Intrasectoral Allocation. M a l i marginally distinguishes i tself from other countries in the

M a l i is a country that has the lowest priori ty in the first cycle o f basic education. The share o f recurrent expenditures for the primary education level (35.0 percent in total) i s l o w in comparison with what i s observed in other countries, where an average figure o f 49.3 percent i s recorded. Even if one adds the expenditures for teachers’ education (4 percent), on reaches a figure o f 39 percent.

The secondary education (second cycle o f primary education, secondary general and technical education) with share estimated at 43.5 percent, has the highest share o f recurrent expenditures to these levels o f education than other countries considered in the comparison (the average value for the 10 countries i s 3 1.3 percent).

In accordance to the PISE I predictios, there was a relative reduction in the share o f higher education as a percentage o f total education expenditure--from 17.7 percent in 1999 to 16.3 percent in 2004.

region with a structure o f recurrent expenditures per level o f education that i s quite particular:

0

0

0

82

Table 6: Recurrent expenditures structures per level

31.7

17.3

4.8

0.5

16.1

13.1

15.8

Recurrent expenditures

35.0

17.8

3.8

0.7

16.4

9.3

16.3

lst cycle o f primary education 2nd cycle o f primary education

Teacher education (Formal Education)

Nonformal education Secondary general Technical and vocational Higher education Total 1 100.0 1 100.0 I 100.0 1 100.0 1 100.0

Id type of education in 1995-2004 Percentage pf Recurrent expenditures structures

100.0

1999

M e a n for the 10 countries

36.1

13.9

2.7

0.7

17.9

10.0

17.7

I 49.3 I 31.3 I 19.6

2000

'ercentage ,n iecondary :ducation

43.5 28 19 46 37 31 39 27 19 31 36

3.8

0.7

16.9

9.2

15.7

Percentage on higher education

16.3 22 19 14 16 25 17 13 28 23 19

3er level ( 2001

32.4

19.0

5.0

0.8 14.0

10.0 18.0

:ducation 2002

32.8

18.9

5.0

0.8

13.9

9.9

17.9

2003 I 2004

Table 7: Comparison of elements of the structure of recurrent expenditures per level o f education in French-speaking countries in sub-Saharan Africa

Country

~

M a l i Benin Burkina Faso Cameroon CGte d'Ivoire Guinea Mauritania Niger Senegal Chad Togo

Percentage In primary :ducation

35.0 51 62 40 47 44 44 60 54 46 45

Household Education Expenditures for Children. The 2001 M a l i poverty assessment (EMEP) provides useful inionnation on household spending. The household expenses for enrolling their children range f rom CFAF 3,541 per year in the f i rs t cycle o f primary education to CFAF 11,019 per year in higher education. In preschool the family contribution is slightly higher (CFAF 11,888 per year). The share o f education expenditures provided by the families i s very high at l o w level o f education and very l o w at higher levels f rom 46 percent in preschool to 17 percent in primary, 4 percent in secondary and less than 3 percent in higher education (Table 8).

83

Table 8: Estimation of household expenses for the enrollment of children in education

Level of education

Expenses per child, source EMEP (CFAF 2001) Expenses per child (CFAF 2004) Total enrollment in 2004

i d cycle of 2nd cycle primary of primary Secondary Higher Total Preschool education education education education

I I ,888 3,541 4,160 7,172 11,019 14,230 4,239 4,980 8,585 13,190 35,000 1,396,791 279,824 I 17,747 29,591 I ,a58,95

~

Total expenditures in 2004 in millions CFAF Expenditures per family Budgetary expenditures

4 98 585

5,921 1,394 1,011 390 9,211 28,937 14,673 24,378 I 2,871 81 ,44:

Total expenditures Percentage of total expenditure provided by

familips

Substantial differences in the level o f household expenses in education correlate not only with the cycle o f education o f the child, but also with the geographical and social characteristics o f the family. h general, there i s a correlation between the distribution o f income and the geographical location (wealthy populations live mostly in urban areas) and the wealthier are the families, the greater i s their contribution to the first cycle o f primary education. A household’s annual spending on education i s CFAF 2,810 if the household i s located in the two income quintiles o f the poorest; however, a household’s annual spending on education i s CFAF 8,326 if the household i s among the 20 percent o f the wealthiest.

I ,083 34,858 16,066 25,389 13,262 90,658

46.0% 17.0% 8.7% 4.0% 2.9% 10.29

Table 9: Estimation households’ expenses per student in concordance to the level of education, the geographical location and the level of income (EMEP 2001)

CFAF 2001

Average expenses Geographical location

Preschool 11,888

Rural Urban

40% o f the poorest 40% o f less poor 20% + wealthy

Level o f income

2,936 4,333

2,810 3,895 8,326

1,637 24,744

3,478 13,822 32,104

2,683 6,670 482 4,596 7,209 1 1,724

908 2,223 5,243 4,440 4,554 4,878 9,078 9,990 15,694

lSt cycle znd cycle

84

Efficiency and Equity in the Distribution of Spending in Education Economic Distribution of Spending. More than 56 percent o f recurrent expenditures in

the education sector are allocated to teaching and learning activities, with an estimate o f 32 percent in the f i r s t cycle o f primary education, 48 percent in the second cycle o f primary education, 74 percent in secondary general education, and over 80 percent in technical, higher, and teacher education. Regarding the allocation o f recurrent expenditures per category, 58.7 percent o f recurrent budget i s devoted to salaries, 29.1 percent in operating costs and 12.3 percent in scholarship and transfers.

1st cycle primary ?ducation 2nd cycle primary :ducation Secondary general rechnical and iocational iigher education Teacher education Total

Table 10: Distribution of personnel and recurrent expenditures by level and type of education, 2004

11.0 16.6 81.8 17.8

31.5 37.1 83.6 15.2 36.5 41.8 44.8 37.0 20.0 25.8 23.9 71.3 36.8 44.1 24.1 41.8 22.1 25.5 15.6 7.2 18.8 24.4 58.7 29.1

Level of Education

irrent expenditures

0.4 1 31.7

1.2 18.2

47.4 74.0 82.2

34.2 4*7 1 86.5

Overall, if one analyzes the entire 38,075 staff in Mali’s education sector, one finds that 24.4 percent o f them (9,300) hold nonteaching positions. The ratios o f nonteachers and teachers strongly vary according to the level o f education: an analysis o f these ratios from preschool to higher education shows continual growth o f the percentage o f nonteachers-by 5 percent in preschools to 44 percent in higher education, 16.6 percent in the f irst cycle o f primary education, 37.1 percent in the second cycle o f primary education, and 41.8 percent in secondary general education.

Unit Costs. Public spending per student varies from CFAF 25,000 in the first cycle o f primary education to CFAF 392,000 in the university, CFAF 59,700 in the second cycle o f primary education and CFAF 264,000 in secondary general. The unit cost for teacher education i s estimated at CFAF 340,000, slightly below the one for higher education. The costs for technical and vocational education are higher than those o f the secondary general with a figure o f CFAF 457,000 at the secondary level and CFAF 753,000 at the higher level (schools and institutes).

85

Table 11: Education unit costs per level and type of education, 2004

ichools k nstitutes

2,646

Primary Secondary 3eneral

rechnical& rlocational

reacher Iducation 2nd cycle Preschool 1st cyclc lniversity

Recurrent expenditures (millions CFAF)

Public Private (supported by

the government) Total numbers of pupils and students

Public Private (supported by

585 28,406

532

14,253

420

238,881

8,741

11,488

2,091

4,469

3,210

10,225 3,120

1,138,5 10 20,726

24,950 1

0,111

25,647

9,781

29,719

26,075 3,516 9 151 18,853 43,516

18,351 the government) Unit costs

Public CFAF Index GDP index per

inhabitant Private (supported by

the government) CFAF

32,531 1 3 0,140

59,664 284 0,265

48,094

264,002 10,6

1,171

1 13,939

456,922 18,3

2,026

108,007

392,146 157

1,739

752,632 30,2

3,338

340 929 13,7

131 2

The comparison between unit costs at different levels o f education shows the following: Secondary education has high unit costs. The costs o f secondary education are 8 times more than the cost o f the first cycle o f primary education and 4 times more than the cost of the second cycle o f primary education). The costs o f education at the university level are 16 times more than the costs o f the first cycle o f primary education.

Because technical and vocational education is extremely expensive, any investment requires a careful assessment o f the relevance o f these programs for the labor market and economic growth and considering more cost-effective type o f training through apprenticeship. The costs o f students supported by the government in both cycles o f primary education in private schools are close to those recorded in public schools; at the secondary general and technical levels, however, the level o f grants to the private sector by the government is lower than the cost per student observed in public schools (in secondary general, the financing i s only about ha l f o f the unit cost in public while those o f technical and vocational i s one-fourth o f the average cost observed in public schools).

International Comparison of the Unit Costs per Level of Education. The unit cost in the f i rst cycle and second cycle o f primary education in M a l i are very close to the average observed in other countries, but there are significant differences at the other levels: (i) the spending per student in the higher education i s relatively lower (16 percent) compared to the average in French-speaking countries; and (ii) at the opposite the spending per student i s much higher (95

86

percent) in secondary general (2nd cycle secondary in international terms)and in technical and vocational education (76 percent).

Table 12: Evolution in time of unit costs and international comparisons (years 2001 to 2004 for participating countries)

Spendinglstudent (percent of GDP per inhabitant) Mali (1998) Mali (2004) Benin Burkina Faso Cameroon Congo CBte-d’lvoire Guinea Madagascar Mauritania Niger Senegal Chad Togo Mean for the 12 countries Relation Malilmeans for the 12 countries * Higher education figure for M a l i consolidate data

Primary ( I * cycle) 12.7 11.1 10.8 19.2 7.1 4.0 13.0 8.7 11.0 12.0 20.0 10.7 7.0 11.0 11.2

0.99

Secondary 1 (2nd cycle primary) 26.3 26.5 15.8 39.0 31.6 12.7 35.0 13.4 26.7 39.6 49.0 14.7 26.8 22.0 27.2

0.97

Secondary 2 (Secondary) 96.4 117.1 56.2 84.0 37.1 36.8 72.0 15.7 64.4 33.8 157.0 70.3 35.8 34.1 60.0

1.95

Technical and Vocational 224.3 202.6 78.0 Nd

61 .O Nd 111.0 121.0 83.0 188.0 Nd

95.0 192.1 104.0 114.8

1.76

from the university and those from other schools.

Higher *

196.5 192.9 149.0 nd 83.0 nd 126.0 220.0 190.0 120.0 515.0 257.0 412.1 215.0 228.7

0.84

Equity in the Allocation of Public Resources to Education. By looking at the enrollment rates at the different levels o f education and those o f public unit costs related to each o f these levels i t i s possible to calculate the structural allocation o f public resources to education. The table below shows the concentration o f resources in education, since on the one hand, 32 percent of children who have no access to schools do not benefit from any public resources to education while on the other hand 4 percent o f an age group (those who have access to higher education) mobilize more than 28 percent o f total amount o f public resources to the education sector. In the case o f Mali, i t i s estimated that 10 percent o f the well-educated absorb 47 percent o f public resources allocated to education.

87

Table 13: Structural allocation of public resources to education throughout a cohort of 100 children (transversal data for 2004)

Cumulative resources per cohort (CFAF) (a) x (b)

Percent cohort

Percent ratio of cumulative resources

Cumulative public resources Resources absorbed by a student who reach a particular level (CFAF) /b) 0

End of enrollmenl (a)

Unit cost (CFAF)

Number of years

Level of enrollment Levels Education cycles

0 32.4 32.4 67.6 64.5

0 25,127 25,127

No schooling 3 :I 2.2

1 25,127 50,254

1st grade 2nd grade 1 109,410

270,780 638,368 3.4 1,164,760 6.2

1 3.6 75,381 1st cycle of primary education

25,127 25,127 25,127

62.3 58.8 52.4

3rd grade 4" grade 5m grade

1 6.4 9.3

100,508 1 125,635 1 150,762 1,512,261 I 8:;

670,836 1,272,522 4,709,455 25.1

10.0 3.4 5.2

6" grade 7" grade 8" grade

25,127 46,807 46,807

43.1 33.1 29.7 2nd cycle of primary

education

1 197,569 244,376 1

46,807 1 24.5 16.2 291,183 9th grade 10" grade 11" grade

1 1.7 835,575 995,810

8.3 6.7

503,382 715,581

212,199 21 2,199 Secondary education 1 1.4

1.2 212,199 1 5.3 927,780 12th grade Higher education 386,232 4 4.1 4.1 1,314,012 5,356,941 128.6 Higher education

16 100.0 Total

Table 14 below outlines Mali's situation as compared with the average in French speaking as well as English speaking African countries with a GDP level per inhabitant inferior to US$l,OOO from which we were able to calculate the same indicators for 2002-2003. I t shows that Ma l i has a slightly higher level o f concentration o f resources than the average in French- speaking African countries and allocates resources far less equitably than English-speaking African countries do on average.

88

M a l i French-speaking Afr ica English-speaking Afr ica

Social Selectivity in the Allocation of Public Resources to Education. On the basis o f data from the Survey on Poverty Assessment [Enquzte Malienne d’Evaluation de la Pauvrete’ (EMEP)] survey o f 2003, one can examine the allocation o f resources to different population categories classified by gender, u r b d r u r a l areas and the income quintile o f different levels of education.

Percentage o f resources

the highest educated for 10% o f Gini Coefficient

47 0,63

46 0,56 28 0,36

Table 15 below shows the following: (i) 76 percent o f children who are not enrolled in schools are f rom rural areas, and most o f them are poor; and (ii) girls have less access to education, with three girls for every four boys enrolled in first cycle o f primary education, and only three girls for five boys enrolled in higher levels o f education; (iii) 38 percent o f students in secondary education and 50 percent o f students in higher education are f rom the wealthiest quintile o f the student population, and only 5 percent o f total enrollments in higher education are from the lowest quintile; and (iv) 93 percent o f students enrolled in the second cycle of secondary education have parents who reside in urban areas.

I t i s also notable that girls are less present than boys in the entire education system. A f i rs t illustration i s shown through the ratios o f boys and girls o f selected age groups who have not been enrolled during the period when the survey was conducted (but were included in later date); within this subpopulation, we find, in fact, 53 percent o f girls while they represent 50 percent in total population o f the age group.

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Table 15: Distribution of population 5-24 years old according to income quintile, gender and geographical location at different levels of education

- %

19.0 19.8 20.1 20.5 20.6

66.4 33.6

49.7 50.3 100

-

-

- -

Group of population lncome

20% t poor Q2 Q3 Q4 20%+wealthy

Location Rural Urban

Girls Boys

Gender

Total

%

5.0 7.8 16.8 20.7 49.7

10.9 89.1

35.5 64.5 100

Non-enrolled Number I %

Total Number

5,751 6,013 6,093 6,231 6,234

20,142 10,180

15,062 15,260 30,322

mary %

14.8 18.5 20.4 23.8 22.4

49.3 50.7

42.0 58.0 100

1st cycle 1 Number

p rimary Secondai Number 1 % Number

125 9.3 23 182 13.5 43 269 20.0 138 368 27.3 150 402 29.9 220

307 22.8 40 1,039 77.2 534

507 37.7 201 839 62.3 373 1,346 100 574

794 994 1,094 1,274 1,203

2,640 2,719

2,250 3,109 5,359

4,800 4,780 4,562 4,402 4,320

17,136 5,728

12,069 10,795 22,864

21.0 20.9 20.0 19.3 18.9

75.6 24.4

52.8 47.2 100

- %

4.0 7.5 24.0 26.1 38.3

-

6.9 93.1

35.0 65.0 100

- - -

Higher Number

9 14 30 37 89

-

19 160

64 115 179

Millennium Development Goals and the Sustainability of Education Development Choice of a Scenario. To update Mali’s Medium-Term Expenditure Framework (MTEF)

and prepare the E S P II, a scenario for the development sector has been chosen by the government of Mali, and the policy measures to reach this objectives has been deJned in the education policy letter.

The government o f Ma l i has retained as a scenario an objective aiming at: (i) improving f i rs t grade intake rate o f the f i rs t cycle o f primary education from 66.6 percent in 2004 to 82.2 percent in 2008 to reach 90 percent in 2015; (ii) a transition rate from second cycle primary education to secondary education from 40 percent in 2004 to 33.6 percent in 2008 and, 22 percent in 2015; and (iii) an admission rate to baccalaureate o f 34 percent in 2008 and 50 percent in 2015. The completion rate o f the first cycle of primary education will increase from 41 percent in 2005 to 56.4 percent in 2008 and to 82.5 percent in 2015.

The major variables o f this policy are the following: (i) a reduction o f studentkeacher ratio, which was estimated at 63.5 per teacher in 2004 to 58.6 students per teacher in 2008 and to 50 students per teacher in 2015; (ii) a recruitment o f contractual teachers with excellent pedagogical profile; (iii) a significant increase in the financing o f community schools teachers, the unit cost o f public financing will increase from 1 times the GDP per inhabitant in 2004 (CFAF 25,000 over 9 months) to 1.4 times the GDP in 2008.

According to this scenario, the number o f enrolled students in t h s cycle wil l increase from 1.4 mill ion in 2004 to 1.8 mi l l ion in 2008 and 2.5 mi l l ion in 2015. Over the same period, the number o f teachers in the public sector (including existing community sector) wil l improve from 18,000 to 25,000 in 2008 to 42,000 in 2015, implying an average annual recruitment o f 2,500 teachers comparatively to an average o f 3,040 in the selected scenario. Regarding teachers’

90

pre-service training, a cycle o f two years will be implemented at the horizon in 2010 instead o f a cycle o f four years as initially planned. Therefore, graduates from grade 9 would easily access Teacher Training Institutes (IFMs) by 2006 whereas those who are already in the system would have an opportunity to successfully complete it. The targeted population to be admitted in IFMs will be high school graduates or those from higher education institutions.

In the second cycle o f primary education, the fol lowing pol icy options have been considered: (i) the reduction o f repeaters’ rate f rom 23.9 percent in 2004 to 18.8 percent in 2008 and to 10 percent in 2015; (ii) the improvement of students/classroom ratio f rom 73 in 2004 to 64.7 in 2008 and to 50 in 2015; (iii) the maintenance o f teacher instructional hours to 24 hours, and a reduction o f students’ weekly hours from 28 hours in 2004 to 27.3 in 2008 and to 26 hours in 2015 over the nine months o f the school year; (iv) the costs for this level o f education will be mastered by controlling expenditures other than teachers’ salaries; which will decrease from 44.1 percent o f total primary education expenditures in 2004 to 40.4 percent in 2008 to 34 percent o f the total expenditures in 2015, through preserving a level o f pedagogical expenditures and a necessary support to ensure the quality o f teaching.

In secondary general education, the transition rate between the second cycle o f primary education and secondary cycle with a level estimated at 40 percent in 2004, the number o f students in secondary general wil l considerably increase. The government has decided to decrease it to 33.6 percent in 2008 and to 22 percent in 2015.

In higher education, the scenarios were based on the fol lowing hypotheses: (i) orientation o f 90 percent o f grade 12 graduates; (ii) maintenance o f the budget for social activities within a planned amount (the share o f social activities’ budget in the total budget will decrease f rom 50 percent in 2004 to 41 percent in 2015; (iii) the percentage o f students receiving scholarships wil l remain constant (at 51 percent over the period); and (iv) the promotion o f private higher education. In 2008, the operating budget i s estimated at 16.9 percent o f the total education budget comparatively to 14.9 percent in 2004.

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Table 16: The Medium-Term Expenditure Framework (MTEF)

Higher education 47,700.7 22,005.0 Research 0.0 91 5.5 TOTAL 352,637.4 225,076.0

69,705.7 12% 91 5.5 0%

577,713.4 100%

National budget Donors including TA Technical Assistance Bdonors without TA Local Government Total available resources Cost of ESEP II Financing gap

Main Scenarios Considered in the Simulation Model. Three scenarios were considered:

372,668 167,073 22,855

144,218 25,956

542,842 577,713 -34,872

Scenario 0. This scenario predicts a priori very favorable situation for the education at the horizon in 2015. At the first cycle o f the primary education, the objectives are to achieve universal primary education o f this cycle with improvements in service delivery. The options are: (i) a reduction o f the average studentdteacher ratio, which was 63.5 in 2004 to progressively reach 40 by 2015; (ii) a maximum use o f contractual teachers and a supplemental use o f community school teachers; (iii) a significant increase in financing these community school teachers. The unit cost o f the recurrent expenditure will increase from 1.0 time o f the GDP per inhabitant (25,000 CFAF over 9 months in 2004) to 3.5 times o f the GDP per inhabitant (representing a l i t t le bit over 65,000 CFAF per month over 12 months in 2004); and (iv) the reduction o f the repetition rate from 19 percent to 5 percent. This measure should allow not only the reduction o f the unit cost o f the total enrollments, but also the retention o f students to the end o f the cycle.

At the second cycle o f primary education, the emphasis i s on the significant transition rate between the two cycles (it i s estimated at 95 percent), with a retention rate during the cycle o f 75 percent, a s l ight improvement in the figure o f 63 percent in 2004.

92

The scenario assumes as well that there wil l approximately be 60,000 students that will complete secondary education in 2015, representing about 19 percent o f the school age population; without modifying the average class sizes (estimated at about 40 in 2004).

Regarding technical and vocational education, the scenario differentiate between (i) structured technical education that targets the integration o f graduates in the sector o f modern economy; and (ii) vocational training that focuses on the production o f competencies to improve work productivity in the traditional sector. For the f i rs t subsector, the scenario takes only into consideration a slight increase in the number o f enrollments.

At the higher education level, this scenario 0 assumes that the number o f students could increase from 30,000 in 2004 to 57,500 in 2015 in the public education, allowing the indicator on the number o f students per 100,000 inhabitants an evolution o f 250 in 2004 to 350 in 2015 with the strongest evolution in vocational fields.

This scenario will not allow reaching the financial sustainability o f the recurrent expenditures o f the sector, knowing that i t i s o f tremendous importance o f taking into consideration supplemental needs for financing investment expenditures that are linked to development program.

Scenario 1. Scenario 0 being a reference and taking into consideration that i t i s based mainly on estimates from recurrent expenditures, which are far from reaching the mid-term financial sustainability goal, some alternatives are explored.

Two policy reforms are introduced in this scenario 1: (i) the average studentdteacher ratio will be 50 at the horizon in 2015, and not 40 as in scenario 0. This policy reform will result in a reduction in the number o f teachers needed, which will decrease from 62,000 in scenario 0 to 49,500 in scenario 1; and (ii) the second policy reform will focus on using a large number o f community schools teachers (about 15,000 instead o f 10,000 as outlined in scenario 0 and s t i l l paid at 3.5 times the GDP per inhabitant o f the country) and thereby be able to hire less contractual teachers (the number o f contractual teachers over the period will be 20,000). The reduction o f the number o f teachers and the use o f a significant number o f community schools teachers will result in reducing the share o f recurrent expenditures for this education cycle.

Scenario 2. In scenario 2, this policy reform assumes that (i) universal primary education at the first cycle o f primary education wil l be expected in 2015, thereby anticipating the millennium development objective in Mali; and (ii) universal education at the end o f the whole primary education level will be expanded over a long term, the strategy followed by 2015 will anticipate the achievement o f this indicator in later date. Along the same line, scenario 2 anticipates that 75 percent instead 95 percent in previous scenarios, o f those who will complete the first cycle o f primary education could move to the second cycle; we will note that previous arrangements expected to provide short-term vocational training aiming at their integration in informal labor market will now be operationalized in such a way that a proportion o f young people (estimated at 70 percent here) who could not pursue their study could benefit from these arrangements. In this scenario 2, the number o f students from the second cycle o f primary education will be 768,000; a great reduction comparatively to 973,000 students anticipated in

93

previous scenarios, however a significant progress comparatively to the existing situation (280,000 students), the completion rate o f the cycle moving from 21 percent in 2004 to 56 percent in 2015. With an average class size o f 50 (as in the previous scenario), the number o f teachers will be 20,600. Scenario 2 implies also supplemental gains at the secondary general level; in fact, i f less young people have access to the second cycle o f primary education, provided that the retention rate in the last grade o f the second cycle o f primary education and the first grade o f secondary general wil l imply less growth in the number o f students within this education cycle. In scenario 2, we anticipate that the total number o f students in secondary general will be 206,000.

94

Annex 10: Safeguard Policy Issues

Mal i : Second Education Sector Investment Program

OP 4.01 Environmental Assessment

This i s a category B project. OP 4.01 was triggered due to the construction o f primary schools and one secondary school to be funded under the project. To address the potential negative environmental and social impacts, an Environmental Assessment Management Framework (ESMF) was prepared by MoE on 02/20/06, as the precise locations o f the schools and the potential localized impacts could not be identified.

OP 4.12 Involuntary Resettlement

OP 4.12 was triggered due to the potential need for land acquisition which might lead to the loss o f assets, loss o f shelter, loss o f access to economic assets or loss o f livelihoods, requiring that affected persons be compensated and/or resettled. To address potential negative social impacts due to land acquisition, the Ministry o f Education has prepared a Resettlement Action Plan (RAP) on 03/29/06.

The potential issues associated with school constructions in M a l i are: (i) potential resettlement issues for the population located on the land on which the schools wil l be built; (ii) hygiene and sanitation issues linked with the construction o f latrines; (iii) waste disposal of construction materials; (iv) loss o f natural sites and bio-diversity; and (v) non-functional equipment or construction defects leading to safety issues for the users. The impact are likely to be minor: (i) most o f the schools which will be built in the program are small in size (3 class- rooms schools for no more than 150 students) simple in their design and made o f local materials; (ii) the construction program benefits from the experience o f ESP 1; (iii) technical specifications and standards have been already elaborated by M o E and used by contractors; ANICT has already a large experience with Municipalities; and (iv) all the schools to be built will be equipped with latrines and connected to water.

The Government o f Ma l i has already taken significant steps to protect i t s environment through a National Policy on Environmental Protection and a series o f legislative and regulatory texts for environmental protection and nature conservation (i.e., a 1998 decree that describes the institutional framework for the management o f environmental issues-- and legislation of September 1999). A mechanism o f consultation i s already in place and the key stakeholders for dealing with safeguards issues are the following: a) the focal point for environment in the MoE; b) ANICT; c) Technical Services in Municipalities; d) The National Directorate for Cleaning and Control o f Pollutions and Nuisances [Direction Nationale de l 'Assainissement et Contrdle des Pollutions et Nuisances (DNACPN)] at national level and DRACPN at regional level); and (e) population o f the localities where the schools will be built.

Environnemental and Resettlement Action Plan

The MoE prepared an Environmental and Social Management Framework (ESMF) on 02/20/2006 and a Resettlement Policy Framework (RPF) on 03/29/06. to address the issues

95

associated with the construction o f schools: (i) potential resettlement issues for the population located on the land on which the schools wil l be built; (ii) hygiene and sanitation issues linked with the construction o f latrines; (iii) waste disposal o f construction materials; (iv) loss o f natural sites and bio-diversity; and (v) non-functional equipment or construction defects leading to safety issues for the users. ANICT has already a large experience with Municipalities; and (vi) all the schools to be built will be equipped with latrines and connected to water.

The ESMF and FWP were disclosed by the Government on April 7,2006. The provisions of the ESMF and RPF will be reflected in the P I M o f the ESP I1 which provides guidelines for the contractors who will be involved in the construction o f schools. In addition, all schools to be built will respect technical specifications and quality standards that have been already prepared by MoE during the f irst phase o f the ESP.

96

Annex 11 : Project Preparation and Supervision

Mali: Second Education Sector Investment Program

Planned Actual PCN review 04/12/2005 04/12/2005 Initial PID to PIC 04/12/2005 05/12/2005 Initial ISDS to PIC 05/10/2005 0511 0/2005 Appraisal 03/06/2006 03/06/2006 Negotiations 05/22/2006 05/24/2006 Board/RVP approval 07/06/2006 Planned date o f effectiveness 11/09/2006 Planned date o f mid-term review 05/09/2008 Planned closing date 12/3 1/2009

Key institutions responsible for preparation o f the project: Ministry o f National Education, Ma l i

Bank staff and consultants who worked on the project included the individuals identified below.

Name Title Unit William Experton Task Team Leader AFTH2 Atou Seck Christina Wood Sameena Dost RenCe Desclaux Amadou KonarC Nestor Coffi Cheick Traore Daniele Jaekel Nathalie Lahire George Solaux Alain Mingat Pierre Kamano Aissata Diop Diallo

Education Economist Sr. Country Economist Sr. Counsel Finance Officer Env. Specialist, Consultant Sr. Financial Mgt Specialist Sr. Procurement Specialist Operations Analyst Consultant Consultant Consultant Education Specialist Team Assistant

AFTH2 AFTP4 LEGAF LOAG2 AFTS 1 AFTFM ASFTPC AFTH2 AFTH2 AFTH2 AFTH2 AFTH2 AFMML

Nicole Hamon Language Program Assistant AFTH2 Bank funds expended to date on project preparation:

1. Bank resources: 2. Trust funds: 3. Total:

Estimated Approval and Supervision costs: 1, Remaining costs to approval: 2. Estimated annual supervision cost:

97

Annex 12: Documents in the Project File

Mali: Second Education Sector Investment Program

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

Evaluation Stratkgique des Enjeux en MatiBre de Genre au Mali: Rapport de SynthBse, publication de la Banque mondiale, ju in 2005.

Rapport Analytique sur le Systgme de Passation des Marchks Publics au Mali, Mise d jour 2004, publication de la Banque mondiale, 21 ju in 2004.

Audit de I'Organisation et du Management du Secteur de I'Education: Plan de Mise en Buvre et Rapport Final avec Annexes, MinistBre de I'Education Nationale du Mali, 3 octobre 2005.

Rapport d 'Etat sur le SystBme EducatifNational: Elkments de Diagnostic du SystBme Educatif Malien-Le Besoin d 'une Politique Educative Nouvelle pour I 'Atteinte des Objectifs du Millknaire et la Rkduction de la Pauvretk, publication de la Banque mondiale, janvier 2006.

Etude sur I'Etat des Lieux de la Formation Technique et Professionnelle, Ministkre de I 'Education Nationale du Mali, dkcembre 2005.

Evaluation des Apprentissages des Elgves de 2ime et 5'""" Annke de I'Enseignement Fondamental au Mali, Rapport f inal et annexes (aotit 2005) + kit technique, publication du Cadre Partenarial du Secteur de I'Education au Mal i avec I'appui de I'UNESCO, septembre 2005.

Evaluation du Curriculum de I 'Enseignement Fondamental, UNESCO, juil let 2005.

Evaluation de la Formation des Maitres, ACDI, Coopkration Franqaise, juil let 2005.

Public Expenditure Tracking Survey, World Bank, May 2006.

Letre de Politique Educative du Mali, mai 2006.

Etude Relative d I 'Elaboration des Orientations de Politique Nationale en MatiBre d 'Enseignement Supkrieur et de Recherche Scientipque: Rapport final, MinistBre de I 'Education Nationale du Mal i avec I 'appui d'EduFrance, novembre 2005.

Bilan de la Phase I du ESIP: Structures Centrales du MEN: Document de travail, MinistBre de I'Education Nationale du Mali, aotit 2005.

Rapport de I 'Atelier National sur le Transfert de compktences et de Ressources de I'Etat aux Collectivitks Territoriales, Ministgre de I 'Administration Territoriale et des Collectivitks Locales, octobre 2004.

98

Annex 13: Statement of Loans and Credits

Mali: Second Education Sector Investment Program

Dlfference Between Orlglnal Amount Expected and Actual

In US$ Mllllons n "

Project ID Project Name Flscal Year IDA GRANT Undlsb. Orlg. Frm Rev'd

PO40652 PO01 748 PO41 723 PO40650 PO35630 PO821 87 PO76440 PO82957 PO73036 PO79351 PO52402 PO80935 PO81 704 PO83799 PO40653

ML-Health Sec Dev Prog SIL - (PRODESS) ML-Finance Sec Dev (FYOO) ML-Rural lnfrastr (FYOO) - (PNIR) ML-Edu Sec Exp Prgm APL (FYOl) ML-Agr & Producer Org (FY02) - (PASAOP) ML-Dev Learning Ct LIL (FY04) - (PCFD) ML-GEF Houshold Energy (FY04)

ML-Household Energy & Univ Access (FY04 ML-Transp Corridors lmprov (FY04) ML-GEF Gourma Biodiv Consew SIL (FY05 ML-Growth Supt SIL (FY05) ML-Agr Compet & Diversif (FY06) - (PCDA) ML-Econ. Policy & Public Fin. Mgt (FY06) ML-Rural Com Dev SIL (FY06) - (PACR)

ML-HIV/AIDS MAP (FY04)

1999 2000 2000 2001 2002 2004 2004 2004 2004 2004 2005 2005 2006 2006 2006

Overall Result

40.0 21.0 115.1 45.0 43.5 2.5

25.5 35.7 48.7

55.0 46.4 25.0 60.0

563.4

7.22 7.37 -<.e2 9.72 7.98

39.53 29.07 1.47

13.84 7.92 -3.74 2.89 -2.90 -3.53

1.93 0.99 3.5 3.22 0.32

21.70 3.37 30.91 4.90 32.92 10.80

5.5 4.92 0.42 48.07 -1.32 43.59 1.67 25.16 57.63 2.40

9.0 343.25 72.68 -7.62

Mal i Statement o f IFC's

Held and Disbursed Portfolio As o f 12/3 1/2005 (in U S $ millions)

Held Disbursed

FY Approval Company Loan Equity Q uasi Partic Loan Equity Q uasi Partic 2003 Hotel Bamako 1.59 0 0 0 1.59 0 0 0

PAL-Graphique I d 0.28 0 0 0 0.28 0 0 0 PAL-Rabelais 0.13 0 0 0 0.13 0 0 0

1998 SEF SIECO 0.28 0 0 0 0.28 0 0 0 1995 SEMOS 0 4.8 0 0 0 4.8 0 0

Total Portfolio: 2.28 4.8 0 0 2.28 4.8 0 0

Approvals Pending Commitment Loan Equity Quasi Partic

99

Annex 14: Country at a Glance

Mali: Second Education Sector Investment Program

100

f

MAP SECTION

HomboriHomboriTTondoondo

(1,155 m)(1,155 m)

SS aa hh aa rr aa DD ee ss ee rr tt

M O P T IM O P T I

SS ÉÉ G O UG O U

S I K A S S O S I K A S S O

T O M B O U C T O UT O M B O U C T O U

K I D A LK I D A L

G A OG A O

K AK AY E SY E S

KK

OOUU

LL IIKK

OORR

OO

BBaaoouulléé

BBaaffiinngg

NNiiggeerr

NNiiggeerr

BBaa nnii

LacLacDDéébobo

Lac NiangayLac Niangay

VVaalllléé

eedduu

TTiillee

mmssii

VVaalllléé

eeddee

LL’’AAzzaa

oouuaakk

KoulikoroKoulikoro

SikassoSikasso

SSéégougou

MoptiMopti

GaoGao

KayesKayes

TTombouctouombouctou(T(Timbuktu)imbuktu)

KidalKidal

BAMAKOBAMAKO

BougouniBougouni

SanSan

NionoNiono

NampalaNampala

KolokaniKolokani

NioroNiorodu Saheldu Sahel

KitaKita

NaraNara

KeniebaKenieba

KoutialaKoutiala

BandiagaraBandiagara

NiafounkeNiafounke

AraouaneAraouane

DouentzaDouentza

GourGourmamaRharousRharous

AnsongoAnsongo

MenakaMenaka

BouremBourem

TTessalitessalit

TTaoudenniaoudenni

M A U R I TM A U R I T A N I A

A L G E R I A

B U R K I N AF A S O

N I G E R

G H A N A

B E N I N

TO

GO

G U I N E A

S I E R R AL E O N EL E O N E

To o El MreEl Mreîti

To o ChenachaneChenachane

To o Poste MauricePoste Maurice

CorCortiertier

To o AbalessaAbalessa

To o AbalaAbala

To o OuahigouyaOuahigouya

To o NounaNouna

To o BoboBobo

DioulassoDioulasso

To o KorhogoKorhogo

To o KankanKankan

To o SiguiriSiguiri

To o Kédougoudougou

To o GoudirGoudiry

To o KifaKifa

To o Ayunyun

el el ’AtrousAtrousTo No Némama

To Niameyo Niamey

To o El MreEl Mreîti

C Ô T E D ’ I V O I R EI V O I R E

M O P T I

S É G O U

S I K A S S O

T O M B O U C T O U

K I D A L

G A O

K AY E S

K

OU

L IK

OR

O

Bougouni

San

Niono

Nampala

Kolokani

Niorodu Sahel

Kita

Nara

Kenieba

Koutiala

Bandiagara

Niafounke

Araouane

Douentza

GourmaRharous

Ansongo

Menaka

Bourem

Tessalit

Taoudenni

Koulikoro

Sikasso

Ségou

Mopti

Gao

Kayes

Tombouctou(Timbuktu)

Kidal

BAMAKO

M A U R I T A N I A

A L G E R I A

B U R K I N AF A S O

N I G E R

G H A N A

B E N I N

TO

GO

C Ô T E D ’ I V O I R E

G U I N E A

S I E R R AL E O N E

Baoulé

Bafing

Niger

Niger

Ba ni

LacDébo

Lac Niangay

Vallé

edu

Tile

msi

Vallé

ede

L’Aza

ouak

To El Mreîti

To Chenachane

To Poste Maurice

Cortier

To Abalessa

To Abala

To Ouahigouya

To Nouna

To Bobo

Dioulasso

To Korhogo

To Kankan

To Siguiri

To Kédougou

To Goudiry

To Kifa

To Ayun

el ’AtrousTo Néma

To Niamey

To El Mreîti

S a h a r a D e s e r t

HomboriTondo

(1,155 m)

5°W 0°

10°W 5°W 0°

10°N

15°N

20°N

10°N

15°N

20°N

25°N

MALI

IBRD 33443

NOVEMBER 2004

MALISELECTED CITIES AND TOWNS

PROVINCE CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

PROVINCE BOUNDARIES

INTERNATIONAL BOUNDARIES

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, o r any endorsemen t or a c c e p t a n c e o f s u c h boundaries.

0 100 200

0 50 100 150 300 Miles

300 Kilometers