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RbpwtNo. 9923

PROJECT COMPLETION REPORT

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION(LOAN 2030-PH)

SEPTEABER 25, 1991

Population and Human Resources DivisionCountry Department IIAsia Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir ofricial duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit - Philippine Peso (P)

US$1.00 - P 7.5(At appraisal, February 1981)

US$1.00 - P 22.50(At final disbursement, August 1989)

FISCAL YEAR

January 1 - December 31

SCHOOL YEAR

June - March

ACRONYMS

BEE - Bureau of Elementary EducationCDC - Cash Disbursement CeilingCOA - Commission on AuditDECS - Department of Education, Culture and Sports

(formerly the Ministry of Education and Culture)DPWH - Department of Public Works and Highways

(formerly the Ministry of Public Works)EDPITAF - Educational Development Projects Implementing Task

ForceERP - Educational Reorientation ProgramFMS - Financial Management ServiceHSMS - Household and School Matching SurveyIMC - Instructional Materials CorporationLAC - Learning Action CellMIS - Management Information SystemNEDA - National Economic and Development AuthorityNELC - National Educational Learning CenterNESC - New Elementary School CurriculumOPS - Office of Planning ServicePCR - Project Completion ReportPROCEED - Program for Comprehensive Elementary Education

DevelopmentPRODED - Program for Decentralized Educational DevelopmentPTS - Project Technical StaffRELC - Regional Educational Learning CenterRPMT - Regional Project Management TeamSBC - School Building CommitteeSBP - School Building ProgramSOUTELE - Survey of Outcomes of Elementary EducationTBS - Textbook Board Secretariat

FOR OMCIuL USE ONLYTHE WOt. L' RANK

Washington. DC 20433U.S A

O'cie of Directcw-G letaIOpwat"ms Evaluatiol

September 25, 1991

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report - PhilippinesSector Program for Elementary Education (Loan 2030-PH)

Attached, for information, is a copy of a report entitled"Project Completion Report - Philippines Sector Program for ElementaryEducation (Loan 2030-PH)", prepared by the Asia Regional Office, withPart II of the report contributed by the Borrower. No audit of thisproject has been made by the Operations Evaluation Department at thistime.

Attachment

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

FOR OFF'ICIAL ULSE ONLY

PROJECT COMPLETION REPORT

PHILIPPINES

SECTOR PkOGRAM FOR ELEMENTARY EDUCATCION(Loan 2030-PH)

TABLE OF CONTENTS

Page No.

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Evaluation Summary ...... . .. . .. . .. . iii

PART I: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE

Project Identity . . . . . . . . . . . . . . . . . . . .Background .. 1................... . 1Project Objectives and Description . . . . . . . . . . .Project Design and Organization . . . . . . . . . . . . . 3Project Implementation .... . . .... . . . . . . . 4Project Rest".ts . . . . . . . . . . . . . . . . . . . . . 8Project Sustainability . . . . . . . . . . . . . . . . . 9Bank Performance ............ . 10Borrower Performance ................. . 10Project Relationships ................. . 11Consulting Services . . . . . . . . . . . . . . . . . . . 11Project Documentation and Data . . . . . . . . . . . . . 12

PART II: PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE . . . . . . 13

Project Background, Objectives and Plan . . . . . . . . . 13Project Management ............ . 13Project Implementation . . . . . . . .. . . . . . 14

Policy Improvement .... . . ...... . . . . . . 14Management Improvements .......... . 15Software Components ........... . 16Hardware Components . . . .... .......... . 18Management Problems .. . ......... . 20

Project Outcomes . . . . . . . .21

Project Costs, Financing and Disbursement .22Bank's Participation in the Project . . . . . . . . . . . 22Recommendations . . . . . . . . . . . . . . . . . . . . . 23Insights and Lessons Learned . . . . . . . . . . . . . . 24

PART III: PROJECT DATA . . . . . . . . . . . . . . . . . . . . . . . 25

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

PROJECT COMPLETION REPORT

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION(Loan 2030-PH)

PREFACE

This is the Project Completion Report (PCR) for the ElementaryEducation Sector Loan (No. 2030-PH), for which the amount of US$100 millionequivalent was approved on July 2, 1981. On December 31, 1986, US$19.5million equivalent was canceled at the request of the Government of thePhilippines. The loan was closed on December 31, 1988, two years after theoriginal Closing Date. The final disbursement was made on August 28, 1989,at which time a remaining undisbursed amount of US$471,486.03 was canceled.

The PCR (Preface, Evaluation SummaL, Parts I and III) was preparedby the Bank's Population and Human Resource- Division, Country Department II,Asia Regional Office, based on a review of Staff Appraisal Report No. 3423a-PHof May 29, 1981; President's Report No. P-3085-PH of June 4, 1981; the LoanAgreement of August 25, 1981 and its sub!equent Amendments; project files,including Bank supervision reports and internal memoranda; and the Borrower'sPCR prepared by the Department of Education, Culture and Sports, Government ofthe Philippines. Bank staff involved in project supervision were alsoconsulted, and discussions were held with Government officials in the courseof processing a follow-up project. Part II is a summary of the Borrower's(old-style) PCR which is available in OED and the Region's files.

The Asia Region wishes to express its appreciation to the Governmentofficials involved in project implementation for their assistance in producingthis report, in particular to the staff of the various committees whichdrafted and reviewed the Borrower's PCR. These committees consisted ofrepresentatives from the Educational Development Projects Implementing TaskForce, the Bureau of Elementary Education, the Office of the Planning Service,the Financial and Management Service, and the Regional Offices of theDepartment of Education, Culture and Sports, and the Instructional MaterialsCorporation.

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PROJECT COMPLETION REPORT

PHILIPPINES

SECTOR P'ROGRAM FOR ELEMENTARY EDUCATION(Loan 2030-PH)

EVALUATION SUMMARY

Oblectives

i. The project was originally designed to support four years of theGovernment's ten-year development program (1981-90) for elementary education.The main objectives of the program were to raise student participation andachievement, with particular emphasis on regions with low educationalperformance, and to improve the managerial.J. ^^ficiency of the Department _fEducation, Culture and Sports. Specifically, the Government was to: (a)introduce revised policies for sector financing and management to raisequality, reduce disparities in educational opportunity, and increase internalefficiency in the school system; (b) effect institutional changes tostrengthen sector management; and (c) prepare revised instructional programsand materials, and improve the distribution of teachers and facilities tostrengthen performance at the school level.

ii. The project investments consisted of; (a) the introduction of a newcurriculum supported by revised teaching techniques and instructionalmaterials; (b) development, printing and distribution of textbooks, teacher'smanuals and other instructional materials, including the construction andequipment of 26 instructional materials warehouses; (c) provision ofclassrooms in accordance with needs based on systematic facilities planning;(d) provision of basic school furniture and equipment for regions most inneed, as well as office equipment for the BEE, OPS and DECS Regional Offices;(d) establishment of a system to monitor teacher supply and demand by the DECSRegional Offices in cooperation with teacher training institutions; (e)trainii.g for educational managers, planners and school staff, including theconstruction and equipment of 13 regional training centers; and (f) systematicevaluation of sector performance by monitoring regional data on an annualbasis and regular achievement testing throughout the project, an in-depthevaluation of the determinants of school participation and achievement, andresea ch on selected topics related to sector performance. Overall cost wasestimated at US$448 millioi. and a Loan of US$100 million was approved.

Implementation Experience

it. The project was to be implemented in four yea;s from 1982 to 1985,wit'. the Closing Date originally scheduled for December 31, 1986. The projectencoLu.tered implementation delays and required a two-year extension of theLoan Closing Date. The slow pace of project implementation was due mainly tomanagement difficulties, budget constraints and procurement delays (paras.1.10-1.12). Project performance improved considerably following two loanrestructuring agreements in 1985 and 1986, aided by significant increases inGovernment budgetary allocations to education from 1986 to 1988 as a result ofthe priority given to the sector by the then-new Government (paras. 3.4-3.5).

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Results

iv. The project, which was prepared between 1978 and 1981, represented aninnovative approach to education lending in the Philippines. Its design as asector operation broadened its impact by encompassing the whole elementaryeducation investment program, and by promoting the improvement of sectorpolicies and planning, and the development of sector-.ide institutions. Theproject also propelled a major shift in focus from the quantitative expansionof elementary schooling to critical issues of quality, efficiency and regionalvariations in student performance.

v. The project succeeded in meeting its objective to build institutionalcapacities within the Department of Education, Culture and Sports (DECS) andits Regional Offices, and substantially met its physical implementationtargets as defined at appraisal (Table 3.4). In terms of performanceirdicators, student participation and teacher utilization measures showed someimprovement, but there was apparently little change in cohort survival,student achievement and the reduction of regional disparities (Table 3.7).It is extremely difficult to assess the impact that the project may or may nothave had on student and sector performance since no monitoring and evaluationmechanisms effectively tracked resources actually provided to schools andtheir effects on student achievement and other educational outcomes (paras.1.21-1.22).

Sustainability

vi. Project sustainability was addressed mainly by integrating projectactivities into the regular functions of the agencies involved in elementaryeducation. The focus of these efforts was decentralizing to the DECS RegionalOffices responsibilities for identifying priority school building projects,procuring other civil works, providing equipment and furniture, distributingtextbooks and training administrative and school staff. Regional budgets nowinclude provisions for components formerly funded by the project.

vii. A follow-up project, the Second Elementary Education Project (Loan3244-PH), is currently supporting the Government's 1990-92 elementaryeducation investment program and action plan to help sustain the provision ofessential school resources and other quality improvement measures, and tocontinue strengthening DECS capacities in planning and management.

Findings and Lessons Learned

viii. Project implementation improved as a result of Government effortsto streamline procurement procedures (paras. 1.11), following a series ofCountry Implementation Reviews. The Bank should continue to address on acountry-wide basis systemic issues affecting all Philippine projects,including slow budget releases (para. 1.12), utilization of Special Accounts,which did not facilitate implementation and accelerate disbursements in thisproject (paras. 1.12, 2.39), and compliance with audit covenants, whereproject staff can do little to expedite the preparation and submission ofCommission on Audit reports (para. 1.29).

ix. The project was adversely affected by frequent modifications in thestructure, functions and staffing of the project management unit between 1981

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and 1984 (paras. 1.10, 2.6). Project management and implementation problemsalso arose from the lack of clarity in the roles and relationships of thevarious agencies and departmental units involved in the project (para. 1.30).A firmly establishec project management structure staffed with qualifiedpersonnel, and a clear definition of organizational responeibilities andlinkages among implementing agencies are critical to effective projectimplementation.

x. Despite the serious delays and difficulties experienced by theproject, particularly during the first half of project implementation, theBorrower's commitment to the objectives of the project facilitated theaccomplishment of the major physical and institutional targets (para. 1.28).Bank review missions made substantial contributions to improve projectimplementation, although the Borrower noted the lack of continuity in theassignment of Bank staff to project supervision (paras. 1.26-1.27).

xi. The key project investments in quality improvement at the schoollevel were a new curriculum supported by revised instructional materials andteaching techniques, but their potential for raising student achievement wasweakened by the lack of coordination in the design and implementation of theseelements (paras. 1.7, 1.13, 2.55). Well-coordinated implementation plans forteacher training and the development and timely distribution of textbooks andother instructional materials are essential for effective curriculumimplementation.

xii. Funding constraints led to a reduction :.... the number of classroomsbelow appraisal targets, as well as in the standard classroom size from63 sq.m. to 48 sq.m. Given that budgetary limitations have not allowedclassroom shortages to be fully addressed, two issues raised during projectpreparation should be revisited: whether or not special work areas are infact essential for teaching vocational arts at the elementary level, and thepossibilities for greater participation of local governments and communitiesin school construction, rehabilitation and maintenance (para. 1.15).

xiii. The project's major shortcoming was that an effective monitoring andevaluation system was not established to assess the impact and benefits ofproject inputs. More front-end attention needed to have been given tocoordination of the various elements of the systam, clear assignment ofoperational and reporting responsibilities, idantification of informationneeds at different administrative levels in relation to available staff andskills, and more systematic utilization of specialist services (paras.1.21-1.22).

xiv. The actual utilization of expert services was much lower than therequirements estimated at appraisal, and project performance was less thansatisfactory in monitoring and evaluation where extensive technical expertisewas identified as needed but wab not fully utilized (para. 1.31). The projectmight also have benefitted from linkages with overseas institutions whichcould have provided both staff training and consulting services (para. 1.32).

xv. The structural, policy and institutional issues of teacher educationrepresent an important area where further development is clearly needed(paraes. 1.8, 1.23). Dialogue on these issues has been initiated in studies onteacher training under the ongoing Second Elementary Education Project.

PROJECT COMPLETION REPORT

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION(Loan 2030-PH)

PART i. PROJECT REVIEW FROM THE BANK'S PERSPECTIVE

Prolect Identity

Project Name: Sector Program for Elementary Education;also the Program for Decentralized EducationalDevelopment (PRODED) -

Loan Number: 2030-PHRVP Unit: Asia Regional Office, Country Department IICountry: PhilippinesSector: EducationSubsector: Elementary Education

Background

1.1 The Program for Decentralized Educational Development wasconceptualized and prepared during the late 1970s, a period during which theGovernment of the Philippines was reexamining its development strategy andobjectives. In contrast to an earlier emphasis on maximizing growth in outputand the development of large-scale industry, greater attention was being givento the generation of productive employment, improvement in economic and socialequity, and meeting basic human needs. Consistent with these objectives, newinitiativea in education called for redressing the geographical andsocioeconomic imbalances of educational opportunity, improving educationalquality, and strengthening educational administration to increase efficiencyand to make the system more responsi-e to local needs. This shift in thecountry and sector development strategies coincided with the Woeld Bank's owngrowing focus on poverty alleviation and on basic education (as well as itsemerging interest in sector lending). From both the Government's and theBank's perspectives, effective elementary education was essential to meetingother basic needs and to accelerating overall national development.

Proiect Obiectives and Description

1.2 The project was originally designed to support four years of theGovernment's ten-year development program (1981-90) for elementary education.The main objectives of the program were to raise student participation andachievement, with particular emphasis on regions with low educationalperformance, and to improve the managerial efficiency of the Department of

The "Sector Program for Elementary Education" was the project name used inthe President's Report and the Staff Appraisal Report, while the LoanAgreement referred to the "Sector Loan for Elementary Education." PRODEDwas the name used in the Philippines and among Bank staff involved with theproject. Since a follow-up project has been prepared and processed, PRODEDis also currently referred to as the first Elementary Education Project.

Education, Culture and Sports (DECS). Specifically, the Government was to:(a) introduce revised policies for sector financing and management to raisequality, reduce disparities in educational opportunity, and increase internalefficiency in the school system; (b) effect institutional changes tostrengthen sector mi.nogement; and (C) prepare revised instructional programsand materials, and improve the distribution of teachers and facilities tostrengthen performance at the school level. The Bank-assisted projectcomprised three major components corresponding to each of these objectives--policy reforms, management changes, and investments for performanceimprovement.

1.3 The policy reforms involved: (a) regional allocation of developmentfunds on the basis of a population-waighted indicator of deficiencies inparticipation, cohort survival and student achievement, to give priority toregions with below average performance; (b) apportionment of recurrentexpenditures to incrt-ase the share of non-salary items, includinginstructional materials, classroom supervision, in-service training andmaintenanc_. oGf school facilities; (c) improved utilization of subject matterteachers; and (d) stricter enforcement of student admission at age 7, andintroduction of continuous diagnostic testing, followed up by remedial andenrichment programs as appropriate.

1.4 In implementing the management changes, the organization, functionsand staffing of the main agencies involved in elementary education were to bemodified as follows: (a) the Bureau of Elementary Education (BEE) was toformu..ate sector policies and standards, and would be assigned line authorityfor technical supervision in the regions to guide effective development andmanagement of the subsector; (b) the Divisions for Elementary Education of theDECS Regional Offices would be given direct responsibility for managing,implementing and monitoring policies and programs in accordance with BEEcriteria and standards, and for providing related assistance to the provincialand district authorities; (c) increased responsibilities for the Office of thePlanning Service (OPS) would include preparing national plans and budgetrequests for education, assisting the regions in planning, maintaining acomprehensive information system based on regional statistics, and conductingsystematic monitoring of sector performance; (d) permanent planning unitswould be established in every DECS Regional Office; and (e) the TextbookAgency would be converted into a permanent government corporation, theInstructional Materials Corporatior (IMC), charged with implementing programsfor the development, production or procurement and distribution ofinstructional materials for public elementary and secondary schools, and theTextbook Board would be replaced by an Instructional Materials Council toapprove materials for use in schools and encourage private sector involvementin educational publishing.

1.5 The investment program for performance improvement consisted of: (a)introduction of a new curriculum supported by revised teaching techniques andinstructional materials; (b) development, printing and distribution oftextbooks, teacher's manuals and other instructional materials, including theconstruction and equipment of 26 instructional materials warehouses; (c)provision of classrooms in accordance with needs based on systematicfacilities planning; (d) provision of basic school furniture and equipment forregions most in neeO, as well as office equipment for the BEE, OPS and DECSRegional Offices; (e) establishment of a system to monitor teacher supply and

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demand by the DECS Regional Offices in cooperation with teacher traininginstitutions; (f) training for educational managers, planners and schoolstaff, including the construction and equipment of 13 regional trainingcenters; and (g) systematic evaluation of sector performance by monitoringregional data on an annual basis and regular achievement testing throughoutthe project, an in-depth evaluation of the determinants of schoolparticipation and achievement, and research on selected topics related tosector perforaance.

Project Design and Organization

1.6 PRODED, which was prepared between 1978 and 1981, represented aninnovative .pproach to education projects in the Philippines. Its design as asector lending operation broadened its impact by encompassing the wholeelementary education investment program, and by promoting the improvement ofsector policies and planning, and the development of sector-wide institutions.The project also propelled a major shift in focus from the quantitativeexpansion of elementary schooling to critical issues of quality, efficiencyand regional variations in student performance.

1.7 The introduction of a new curriculum supported by revisedinstructional materials and teaching techniques was central to meeting theobjective of raising qurlity in elementary education. A major weakness inproject design was th. lack of coordination in planning for curriculumimplementation, the development and distribution of textbooks and otherinstructional materials, and related teacher training. The need forcoordination was clearly recognized and, in fact, was one of the reasons forincorporating what was to be a separate textbook project into the elementaryeducation program (paras. 3.2-3.3). As described in the Staff AppraisalReport, however, grade-wise implementation of the new curriculum was to beginin 1983, but the supporting textbooks for the Grade 1 in Mathematics andPilipino were scheduled for delivery in 1984 and 1985, respectively. In nosingle grade was a complete set of revised textbooks to be available in theyear that the new curriculum was to be introduced. The stated aim of in-service training for school teachers and principals was to support theintroduction of the new curriculum, however, only half of the teachers andprincipals were scheduled to be trained for the duration of the project.

1.8 Pre-service teacher education was not included in the elementaryeducation program on the assumption that it would be covered under a proposedproject in secondary education. The Secondary Education Development Project,currently under implementation with financing assistance from the AsianDevelopment Bank, is undertaking research on the content of teacher educationprograms, teaching methods in major subjects, a teacher competency p-ofile andincentives to attract mathematics and science teachers. The structural,policy and institutional issues of teacher education have not, however, beensystematically addressed, and represent an important area where furtherdevelopment is clearly needed.

Prolect implementation

1.9 PRODED was to be implemented in four years from 1982 to 1985, withthe loan closing date originally scheduled for December 31, 1986. The projectencountered major implementation delays and required a two-year extension of

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loan closing. Project performance improved considerably following two loanrestructuring agreements in 1985 and 1986 (paras. 3.4-3.5), aided bysignificant increases in budgetary allocations to education from 1986 to 1988as a result of the priority given to the sector by the then-new Government.

110 The slow pace of project impl2mentation was due mainly to managementdifficulti.es, budget constraints and procurement delays. The managementproblems derived first from the complexity of the project, which involvednumerous subprojects and implenenting agencies at the national and locallevels. Moreover, previous Bank-financed projects had been managed by thesemi-autonomous Educational Development Projects Implementing Task Force(EDPITAF), and the lack of project experience within the DECS was revealed inthe weak direction and coordination of early project activities. Thissituation was exacerbated by the frequent modifications in the structure andfunctions of the project management unit up until 1984 (related in part tosenior personnel changes) and by the Department's insistence that a full-timeproject manager was unnecessary. It was not until 1985 that a projectmanagement structure was firmly established, with all implementing agenciesrepresented in a coordinating authority directly under the Secretary ofEducation, and with the addition of experienced staff to the management unit.

1.11 Implementation delays caused by procurement and fundiag problemswere, in large part, the result of complicated and time-consuming Governmentproce_. -es. Until 1986, procurement contracts over P 2 million requiredapproval by a Cabinet Standing Committee on Contracts and the Office of thePresident. Implementation improved dramatically from 1986 when the StandingCommittee was abolished and the ceiling for zontracts requiring approval ofthe Department Secretary was raised from P 2 million to P 10 million (andlater to P 20 million). The approval time for IMC paper and printingcontracts, for example, was raduced to an average of four weeks from the priorsix to fourteen months. Continuing Government efforts to facilitatepro urement, including the early approval and release of funds forinfrastructure projects and allowing start-up of bidding procedures prior tothe release of funding allocations, significantly improved performance in theSchool Building Program, the largest project component. An attempt during the1985 restructuring to increase disbursements by allowing loan financing forcivil works had been unsuccessful, however, due to the difficulty of gatheringstatements of expenses for completed civil works from the field offices of theDepartment of Public Works and Highways (DPWH). The problem of obtainingreimbursement documents stemmed primarily from a lack of clarity _nprocedures, and is being addressed in the follow-up project to PRODED, theSecond Elementary Education Project currently under implementation.

1.12 Complex fund release and payment procedures, compounded by nationalfinancial constraints in the early to mid-1980s, regularly led to delayed andreduced budgetary releases to the project. Releases in the form of CashDisbursement Ceilings (CDCs) were valid only for the fiscal year in which theywere issued and had to be revalidated when they lapsed. The protractedprocurement processes often resulted in CDCs expiring before they could becommitted. Since the non-availability of funds had been identified as a maincause of delay in previous projects, a Special Account was established forPRODED (paras. 3.6-3.7). While the objective was to facilitate projectimplementation and accelerate disbursements, the Special Account added yetanother bureaucratic layer to the already cumbersome process of obtaining

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financial releases. CDCs were still required for expenditures to be financedfrom the Special Account, and Treasury Warrants issued against CDCs were drawnfrom a regular Treasury Demand Deposit. DECS then used these Warrants to filea reimbursement application with the Treasury, at which time the amount of theWarrant was transferred from the Treasury Demand Deposit to the SpecialAccount. Direct payment by the Bank to suppliers and contractors was possibleeven without formal budgetary releases, and wae thus the preferred mode ofpayment. However, when the Special Account allotment was increased from US$3million to US$8 million during the 1985 loan restructuring, only contractsover US$1.25 million became eligible for direct payment.

1.13 Instructional Programs. The new curriculum, instructional materialsand teacher training programs were the key project investments in qualityimprovement at the school level, but the potential for raising studentachievement was weakened at the outset by the lack of coordination of thesecomponents (para. 1.7). Grade-to-grade implementation of the new curriculumwas officially conducted from 1983 to 1988, but supporting textbooks andteacher guides either had not yet been developed or printed as required, orwere late in reaching schools. Teachers in the first two grades were expectedto ensure attainment of the new curriculum "minimum learning competencies" butwere provided no guidance in utilizing the old textbooks. As a stopgapmeasure in 1985 and 1986, schools were provided an index that matched thelearning competency requirements of the new cu.riculum with existing Grade 3and 4 books. Support could also have been provided through the in-servicetraining program, particularly since the DECS had decided that all teachersand school principals would be trained (instead of the appraisal target of50%). However, the first teacher training packages developed were heavilyvalue-laden and almost devoid of instructional strategies related to the newcurriculum. Subject content and teaching methodology were eventually givenmore emphasis in the in-service teacher training programs.

1.14 The new elementary school curriculum described in the Staff AppraisalReport consisted of three subjects in the first two grades (English, Pilipinoand mathematics), a'id four subjects from Grades 3 through 6.2/ Thereduction in the number of subjects from the previous eight in each gradeaimed to permit increases in the share of class hours allocated to mathematicsand English. The program of study as implemented includes four subjects inGrades l and 2, six in Grade 3, and seven in Grades 4 to 6, with an additional20 to 30 minutes each day of character education for all grades. Compared tothe appraised curriculum, the total number of weekly instructional hours wasdecreased significantly--in Grades l and 2 by 23% (from 25 to 19.2 hours), andin Grades 5 and 6 by 14% (from 35 to 30 hours). Early Bank review missionswere particularly concerned about the reduction of the time allocated tomathematics. Only 3.3 hours per week are devoted to math instructionthroughout the elementary cycle, which is equivalent to 11 of total hoursin each of the last two grades.

1.15 School Facilities. The School Building Program was the '.zgestcomponent of the investment program, representing 66% of total ,roject costs.

2/ The fourth subject was not described in the Appraisal Report, but thePresident's Report referred to "Environmental Education" with units in thesciences, social science, art and practical arts.

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The appraisal target of 11,000 classrooms annually from 1981-90 was to meettotal classroom requirements to accommodate enrollment increases and reduceexisting backlogs. About 48,500 classrooms were actually built from 1982-88,for a yearly average of 7,000 classrooms. Funding constraints were the mainreason for the reduction in the number of classrooms built, as well as in thestandard classroom size (in 1984) from 63 sq.m. to 48 sq.m. About 2,600multipurpose workshops were also built under the project, and since 1986, theconstruction of about 1,000 toilets annually has been included in the SchoolBuilding Program in response to health and sanitation concerns. According tothe Staff Appraisal Report, requests for workshops for the teaching of homeeconomics and/or agricultural-industrial arts were to be considered only wherebasic classroom requirements were met, and only for "complete" schoolsoffering the full, six-year elementary cycle (about 60% of the total number ofschools). Given that budget constraints have still not allowed classroomshortages to be fully addressed, two issues raised during project preparationshould be revisited: (a) whether or not special work areas are in factessential for teaching vocational arts at the elementary level, taking intoconsideration that the unit cost of a workshop is currently about 22% morethan that of a standard classroom, and that these special facilities are beingprovided to the more advantaged complete schools; and (b) the need to explorepossibilities for greater participation of local governments and communitiesin school construction, rehabilitation and maintenance.

1.16 Four agencies have traditionally been concerned with the SchoolBuilding Program--the DECS, the DPWH, the Department of Local Governments andthe Department of Budget and Management. A 1980 Memorandum of Agreement amongthese agencies detailed the roles of each agency, and provided for thecreation of divisional School Building Committees (SBCs). The mainresponsibilities of the DECS were to define criteria for prioritizing needsand identification of project sites, to establish building designs andstandards, and to accept completed works from DPWH in accordance with thesestandards. Finai authority for project selection, however, lay with the SBCs.The Borrower's review notes that the DECS role in ensuring conformity withselection criteria was undermined by the fact that the SBCs are chaired by theprovincial governor or city mayor; the review thus recommends that thesecommittees be chaired by a DECS representative as a way to reduce futurepolitical interference (paras. 2.28, 2.60, 2.64). While the recommendationhas merit, the DECS was responsible for subproject appraisal and thereforeshould have had recourse during project implementation to disallow financingfor subprojects which did not meet identified criteria.

1.17 Dissatisfaction with the quality of construction, and instances ofnon-compliance with site and building specifications were also reported by theDECS (2.28, 2.63). Final payments to contractors were certified by the DPWH,and unless the DECS formally accepted the works as having been satisfactorilycompleted, the classrooms could not be utilized. In 1986, the budget whichhad been allotted to DPWH as part of the national infrastructure program wastransferred to DECS; however, this had no practical effect as the budget wasstill suballoted to the DPWH Regional Offices. In March 1991, responsibilityfor the administration and management of the School Building Program wastransferred from DPWH to DECS, upon DECS representations to the Office of thePresident. The impact of this decision should be closely monitored andevaluated under the Second Elementary Education Project, particularly since itwas not clearly established beforehand that DECS has the necessary technical

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expertise to take over from DPWH the administration of the School BuildingProgram.

1.18 Furniture. According to the Staff Appraisal Report, furniturecontracts were to be awarded either on the basis of Local Competitive Biddingprocedures or through negotiations with trade schools able to manufacturefurniture of satisfactory quality at reasonable prices. Although Banksupervision missions advised that these two procedures be compared in terms ofproduction capacity, quality, delivery time and prices, there is no recordthat this comparison was undertaken, and the bulk of classroom furniturecontracts was negotiated with trade schools. The Borrower's review emphasizesthe educational and social benefits of contracting trade schools (paras. 2.33,2.61), but it should be noted that the cost of the furniture componentexceeded appraisal estimates by 712 in US Dollar terms, despite an overallcost underrun of 15X.

1.19 Costs. The actual total project cost is estimated at US$379 millionequivalent, compared to the appraisal estimate of US$448 million equivalent(Table 3.5, para. 3.8). The overall cost underrun of 15Z in US Dollar termswas due in large part to the devaluation of tpe local currency from Pesos 7.5per US Dollar in 1981 to Pesos 22.5 in 1989.- Cost underruns in the civilworks and staff development components (23? in each case) were also related torevisions in program targets. Even though overall instructional materialstargets were met, costs for printing and distribution was lower than theappraisal estimate by 38Z. Technical assistance costs exceeded appraisalestimates, but only by 7?. The one major cost overrun was in the furniturecomponent, as noted above (para. 1.18).

Proiect Results

1.20 Except for the reduced number of new classrooms (para. 1.15), theproject substantially met its physical implementation targets as deZined atappraisal, including the construction of warehouses and trainling centers,production and distribution of instructional materials, procurement offurniture and equipment, and training of teachers, school principals andeducation managers at all administrative levels (Table 3.4). The projent alsosucceeded in meeting its objective to build institutional capacities withinthe DECS and its Regional Offices. The Bureau of Elementary Education hasprovided regular assistance to the regions, particularly in the utilization ofcurriculum materials and conduct of in-service staff training. The DECSOffice of the Planning Service has improved its data collection inatrumentsand procedures, computerized its national Management Information System anddeveloped staff capacities in the preparation of educational plans andbudgets. Responsibility for the implementation of policies, programs andprojects has been delegated to the Regional Offices, where ElementaryEducation Divisions and permanent Planning Units were established andstrengthened as a result of the project. Once its status as a Governmentcorporation was confirmed in 1985, the Instructional Materials Corporationdeveloped into a highly efficient agency able to produce and distribute over20 million texts in one year. The in-service training structure developed

3/ In Peso terms, the actual total project cost of Pesos 6.1 billion wasgreater than the appraisal estimate of Pesos 3.4 billion by 822.

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under the project holds long-term promise for continued professional staffdevelopment. It is also worth noting that audio programs and materialsdeveloped under the earlier Bank-assisted Mass Media Pilot Project (LoanS008-PH) were utilized for PRODED's in-service teacher training.

1.21 The policy reforms and investment inputs under the project wereintended: (a) to improve (i) net participation and cohort survival rates,(ii) student achievement, and (iii) teacher utilization; and (b) to reduceregional disparities in these three categories. While participation rates,student-teacher and teacher-class ratios showed some improvement, there wasapparently little change in cohort survival, student achievement and thereduction of regional disparities (Table 3.7). It is extremely difficult toassess, however, the impact that the project may or may not have had onstudent and sector performance since no effective monitoring system trackedresources actually provided to schools. Thus, improvements in learning couldnot be evaluated nor project benefits established. As described in the StaffAppraisal Report, the project was to implement the following monitoring andevaluation activities: annual monitoring through the OPS ManagementInformation System of inter- and intra-regional comparisons on studentparticipation, performance and expenditures; school mapping for planning thelocation and distribution of educational facilities and resources; inventoriesof school facilities, furniture and equipment every four years; monitoring ofteacher supply and demand; regular administration of standardized achievementtests; an in-depth evaluation involving baseline and follow-up surveys onschool and home determinants of educational p.articipation and achievement; andresearch studies contributing to the formulation of sector policies andachievement of sector objectives.

1.22 Development of the OPS Management Info.mation System focussed onimproving the retrieval of school uata and timely generation of an annualStatistical Bulletin to provide basic enrollment information. Special studieswere conducted on school location planning and teacher supply and demand, andwhile useful instruments were generated, these were not fully integrated intothe management systems. Facilities and furniture inventories undertaken in1982 have not been updated, and while student testing was conducted inconnection with other project components, the regular administration ofnational tests was not implemented. Bank review missions noted that keyinformation was generally unavailable, e.g., actual location of SchoolBoilding Program recipients compared to identified priorities, actualdeliveries of furniture, equipment and instructional materials to schools,teacher utilization and deployment at the sub-regional levels, reliablestudent achievement data over time. Data relevant to these concerns weregathered but were not analyzed. Such analysis was particularly necessary tosupport decentralized programs, to target resources in accordance with thestated policy of giving priority to more disadvantaged schools and areas, andto evaluate the impact of such targeting. Effective monitoring and evaluationmechanisms might have been put in place if more front-end attention was givento coordination of the various components of the system, clear assignment ofoperational and reporting responsibilities, identification of informationneeds at different administrative levels in relation to available staff andskills, and more systematic utilization of specialist services.

1.23 Data generated by the 1981-82 baseline survey for the evaluation ofdeterminants of educational participation and achievement (the Household and

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School Matchir,g Surveys) have been utilized for sector analysis and otherresearch studies. PRODED studies have informed policy and planning wheredecision-makers were directly involved in the identification of researchquestions and discussion of results, as with the special studies identified atappraisal (Table 3.7, para. 2.25). PRODED also supported a large number ofsmaller studies but there was limited outside review to determine thetechnical adequacy of these research efforts, and relatively few had clearlinks to pressing policy and implementation problems in the subsector. Thosestudies which had important policy and program implications were not alwaysfully exploited. One series of studies, for example, found no significantdifference in teaching effectiveness between having one teacher teach allsubjects in the fifth and sixth grades and the current policy of utilizingspecialized subject teachers. These results have not led to significantpolicy discussion, however, despite the fact that improved utilization offifth and sixth grade teachers was a principal objective of the project, andgiven that the use of specialized teachers reduces flexibility in addressingteacher supply and demand issues, in addition to having important costimplications. Such questions might usefully be considered in the policydialogue that has been initiated in connection with the teacher trainingstudies being undertaken in the Second Elementary Education Project.

Proiect Sustainabilitv

1.24 Sustainability was an explicit concern for both the Bank and theBorrower throughout project implementation, and was addressed mainly byintegrating project activities into the regular functions of the agenciesinvolved in elementary education. The focus of these efforts wasdecentralizing to the DECS Regional Offices responsibilities for identifyingpriority school building projects, procuring other civil works, providingequipment and furniture, distributing textbooks and training administrativeand school staff. The gradual transfer of these functions was well plannedand involved, among others, increased budget support, the appointment ofregional procurement committees and quality control officers, and the trainingof trainers for staff development programs at all levels. Regional budgetproposals submitted to the DEOS central office now include provisions forcomponents formerly funded by the project. Future development will requirecontinued staffing, training and funding of the Regional Offices, and theinstallation of effective regional and sub-regional planning, monitoring andevaluation systems. With reference to the Government's textbook developmentprogram, plans to convert the INC into a regular DECS agency should becarefully studied with due consideration to issues of costs and efficiency inattaining program objectives (para. 2.58).

1.25 A follow-up to PRODED was a project identified following the Bank's1988 Education Sector Study (Report No. 7473-PH), which found a need forcontinued support at the elementary level in order to reduce social inequitiesand improve quality in the educational system as a whole. The SecondElementary Education Project (Loan 3244-PH) is currently supporting theGovernment's 1990-92 elementary education investment program and action planto help sustain the provision of essential school resources and other qualityimprovement measures, and to continue strengthening DECS capacities inplanning and management. While PRODED provided the inputs and strengthenedthe organizational structures necessary for improving the delivery ofeducational services, the benefits derived from these accomplishments cannot

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be precisely established (para. 1.21). The Second Elementary EducationProject includes components designed to develop more effective monitoring andevaluation systems, including a national assessment program to routinelygenerate data on student achievement.

Bank Performance

1.26 The Bank recognized immediately that the project required moreintensive supervision than might normally be expected under a sector loan, andconducted 18 review missions between October 1981 and September 1988 (anaverage of 4.7 month intervals, compared to a Bank average of 6 months).Detailed aide-memoires anA supervision reports of these missions revealcommendable efforts on the part of Bank staff to help improve projectimplementation. The Borrower's review focusses on the assistance given inmatters related to procurement and utilization of loan proceeds (para. 2.48).As importantly, however, supervision missions consistently addressedsubstantive issues and provided crucial advice on teacher in-service trainirg,instructional materials, and other aspects of educational quality.

1.27 The Borrower's review correctly notes the lack of continuity in theassignment of Bank staff to project supervision and the consequent need forcontinuing orientation of staff new to the project (para. 2.53). Between 1981and 1988, six different Project Officers had responsibility for PRODED, andfourteen other Bank staff and consultants participated in supervisionmissions.

Borrower Performance

1.28 Despite their limited experience prior to the project, PRODED staffrose to the challenge of a complex and difficult project, and demonstratedexemplary commitment to its educational and institutional objectives. Thecompetence and confidence of the various implementing agencies at the centraland regional levels has clearly grown over the course of projectimplementation. The Borrower's overall commitment was reinforced by therenewed priority given to the education sector and the project by theGovernment since 1986. The project also benefitted from ongoing efforts tostreamline procurement and fund release procedures and thereby facilitateproject implementation (para. 1.11).

1.29 Delays in the submission of the annual audit reports for calendaryears 1982-88 ranged from 3 months to 5 years (Table 3.8). Since finaldisbursement from the Loan was made in August 1989, an audit report for 1989was required but has not been forwarded to the Bank. Although required by theLoan Agreement, the annual audit reports did not include a separate opinion onthe use of Statements of Expenditures and a separate Special Account auditreport was received only for 1986. A Bank review of the 1983 and 1984 auditreports noted that the accounts submitted by the Commission on Audit (COA)were much more elaborate than necessary and dealt with a considerable numberof management issues in addition to the financial aspects. It was suggestedthat the Bank's audit requirements could be more simply and promptly met by averified statement of receipts and expenditures, and expenditure sources, withthe accompanying auditor's evaluation, and without a full performance audit asCOA had been doing. Beyond following up with COA, however, there was littlethe Borrower's project staff could do to expedite submission of audit reports.

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Prolect Relationships

1.30 Early project management and implementation problems seem to havederived in part from a lack of clarity in the specific roles and relationshipsamong the agencies and departmental units involved in the project. Since thelong-term status of EDPITAF was in question at the time of project preparation(its original mandate as a ten-year task force was expiring in 1982), its rolein project implementation could not be clearly defined from the outset, andlogistical and morale problems arose over the first attempts to regularizeEDPITAF staff into the DECS bureaucracy. Initial difficulties in theimplementation of the textbook component were attributed to inadequatedefinition of management responsibilities between the IMC and the BEE, and tothe dismantling and reconstitution of Curriculum Development Centers whichwere responsible for the writing of manuscripts. There was also a lack ofclarity at the sub-national levels about the responsibilities of localaithorities for various stages of textbook distribution. Despite theexistence of a Memorandum of Agreement among the agencies involved in theSchool Building Program, Bank supervision missions regularly mentioned theneed to clarify and strengthen the role of DECS. The Borrower's review alsonotes that project implementation would have been facilitated had an officialdirective specifically identified the departmental unit (i.e., the Bureau ofElementary Education) responsible for overall coordination of the project(para. 2.54).

ConsultinR Services

1.31 Individual consultants were engaged to provide about 6 and 1.75staff-months of local and foreign expert services, respectively, and a numberof institutions were contracted to assist in fulfilling specific project tasks(Table 3.4). The actual utilization of expert services was much lower thanthe requirements estimated at appraisal, which were 290 and 216 staff-monthsof local and foreign consultancies, respectively. This was due to theGovernment's desire to allocate more funds to fellowships, in which the Bankconcurred, as noted favorably by the Borrower (para. 2.50). While fellowshipsand other training were important for the longer-term objectives of developinglocal staff and institutional capacities, expert services were also needed forthe more immediate accomplishment of specific project activities. It istelling that project performance was less than satisfactory in the variousaspects of monitoring and evaluation (para. 1.21), where extensive technicalexpertise was identified as needed by both the Borrower and the Bank duringappraisal and negotiations, but was not fully utilized.

1.32 Due largely to the high cost of foreign consultants, the Governmenthas encouraged the increased use of local experts. The Borrower's reviewasserts that local consultants were as qualified to provide expert services tothe project as foreign consultants (para. 2.62). Clearly, local expertiseshould be utilized where this exists; identification and assessment of suchexpertise remains, however, an essential task of project appraisal andsupervision. One Bank review mission recommended that, where foreignexpertise was deemed necessary, such expertise could be obtained throughlinkages with well-established overseas institutions which could provide bothstaff training and consulting services. If such institutional linkages hadbeen pursued, they would more have been likely to have had long-term benefits

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for the Borrower than contracting placement agencies to adminieter the foreignfellowship programs, as was done in this project.

Prolect Documentation and Data

1.33 Project files in the Asia Information Center were well-maintained andreadily provided most of the data required for the preparation of this report.Important information and insight were also provided to this report by thefull Borrower's PCR, which was the product of a noteworthy process of bringingtogether the agencies involved in implementation to assess projectperformance. This highlights the fact that the maintenance of project dataand thorough documentation by the Borrower complement the Bank's efforts tomaintain effective project databases, and contribute to the development ofBorrower capacities in project implementation and evaluation.

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PART II. PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE Al

Proiect Background. Obiectives and Plan

2.1 The reform program in elementary education was embodied in a ten-year development program (1981-90) known as the Program for ComprehensiveElementary Education Development (PROCEED). Thiq program was the firstconcrete effort in developing a long range program to upgrade the elemen. yeducation sector. In view of the Government's inadequacy to fund PROCEED, aUS$100 million World Bank loan was solicited to help finance its first fouryears which was the Program for Decentralized Educational Development,popularly known as PRODED.

2.2 Specifically, PRODED aimed to: (a) raise pupil achievement from48% in 1979 to 55% by 1985; (b) increase the participation rate of 7-year oldsfrom 74% to 84% in 1985/86; (c) improve the cohort survival rate from 65Z to78% within 1981-1985; (d) raise the pupil-teacher ratio from 31:1 to 36:1 by1986/87; and (e) improve management capabilities to increase systemeffectiveness and efficiency.

2.3 Specific sector policy issues identified to redress disparities ineducational opportunity as well as to improve quality and efficiency includedthe introduction of: (a) a revised investment policy; (b) a revised policyfor recurrent financing; (c) revised policies for student intake andprogression; and (d) a revised policy for teacher deployment.

2.4 The investment program consisted of the following subprojects:(a) the New Elementary School Curriculum (NESC) which emphasizes basic skills,intellectual development and values; (b) staff development to provide trainingopportunities and to improve the delivery of btaic education; (c) technicalassistance to improve the program by awarding fellowships and availment ofexperts/consultancy services for strengthening the technical capability of thetop-level management in implementing development programs; (d) special studiesand research to provide empirical data required for sector policy-making andevaluation of PRODED effects; (e) instructional materials development, insupport of the NESC and to sustain the efforts introduced by the TextbookProject under Loan 1224-PH; and (f) facilities development such as civil workswhich includes the School Building Program and other works, equ..pment andreference materials and furniture, to provide adequate facilities for thepublic elementary school system.

4/ Part II was extracted by Bank staff from the PCR prepared by DECS toreflect the Borrower's assessment of project performance; the Borrower'sPCR is available in OED and the Region's Files. Comments received fromDECS on the PCR (Parts I to III) were incorporated in the present Report.In a letter forwarded to the Bank by DECS, the National EconomicDevelopment Authority (NEDA) recommended areas for further analysis; thisletter is reproduced in full at the end of Part II. The issues raised byNEDA would best be addressed in an in-depth impact evaluation of theproject.

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Proiect Manakement

2.5 The magnitude of PRODED necessitated a policy-making structurewhich would provide direction in the administration and implementation of theinvestment program. From 1979 up to 1988, a structure consisting of anadvisory group to the Secretary, a policy-making body known as a managementgroup, a technical body known as the Project Technical Staff (PTS), and a.egional planning body known as the Regional Project Managemont Team (RPMT)was set up. RPMTs were created in each of the 13 DECS regions. At theoperations level, the PTS took charge of all planning, implementation,monitoring, evaluation, resource identification/acquisition, loan availmentand liaising with the World Bank. The main function of the RPMT was thegeneration and preparation of regional subproject requests and theimplementation of approved subprojects. The implementation of the textbookcomponent was the main function of the IMC.

2.6 Until 1982, the PTS operated as a self-contained projectimplementing unit but underwent organizational modifications as a result oftop-level reorganizations and subsequent changes in management policies.There were also changes within the PTS and EDPITAF structures during theproject cycle. These changes which attempted to achieve efficient projectoperation, however, caused substantial delays in project implementation.

Project Impleme!ntation

2.7 On the whole, all the project components were satisfactorilyimplemented with loan drawdowns reaching more than 90% as the Loan Account wasclosed on August 31, 1989.

Policy Improvement

2.8 In an attempt to narrow the gap in the allocation of expendituresamong regions and provide emphasis on educational performance, a formula forresource allocation was introduced under PRODED. Three revisions were made onthe original formula during the PRODED years. An analysis shows thatwhichever version was used, inequities still remained. That is, some regionswhich are classified as deficient in terms of the prescribed education indexreceived less allocation than certain regions with better performance index.The trends indicate that the search for an appropriate investment formula thatwill address educational deficiencies should not end with PRODED, particularlywith the growing awareness that the country's future growth will come mainlyfrom improved efficiency in the use of its scarce resources.

2.9 The project was to help formulate policies that would increasenon-salary items from 2% to 7% of budgetary allocations during the period1982-90. Since 1986, the non-salary items have substantially increased,surpassing project expectations, in allocations for maintenance, operations,learning resources, as well as capital expenditures for building construction,facilities and equipment. Continuing assessment was done to determine whetherthe DECS attempted to attain the following project targets: 22-3% of thetotal appropriation for recurrent expenditures is to be allocated forinstructional materials and supplies; 2S-32 for project development andsupervision and in-service training and 12 for maintenance of facilities.PRODED funded a study on school cost and financing which reports that from

1984 to 1988, the Government appropriated substantial amounts for these itemsand satisfactorily met the targets set by the project.

2.10 Improvements in teacher utilization were expected to be made byassigning teachers to classes of more than one grade level in the intermediategrades, but keeping them close to their area of specialization. Requirementsfor teachers would be reduced if the teacher-class ratio in Grades 5 and 6were reduced to 1:1 or 4:3. Such a policy was expected to free resources fornon-salasy expenditures. In 1988-89, there were 179,838 primary classeshandled by the same number of teachers using the 1:1 plan. Although therewere only 71,546 intermediate classes, a total of 107,810 teachers were neededto handle these classes, which means a ratio of 1.5 teachers to a class. Toexplore further strategies to maximize the utilization and deployment ofteachers, PRODED funded the special study on Teacher Supply and Demand, oneobjective of which was to develop a formula for allocating new teacher items.The study also initiated dialogues with teacher training institutions on howto produce prospective teachers who are competent in teaching all subjectareas in the elementary curriculum.

2.11 The DECS exerted efforts to ensure enrollment of all 7-year oldchildren in school. To improve participation by accommodating every child whomeets the admission requirements, the following measures were taken by theschools: (a) enroll as many as 40 to 45 pupils per class or employ a 4:3 or1:1 tiacher-class ratio in the intermediate grades; (b) resort to multigradeclasses under one teacher whenever' necessary; (c) resort to the two-shift planin case of shortage of claasrooms; (d) observe early registration to obtainadvance estimates of the number of classrooms, teachers and instructionalmaterials needed.

2.12 The elementary education sector undertook certair. interventionswhich reflected the sector's efforts to improve the cohort survival,progression and dropout rates which include the following: (a) theorganization of multigrade classes to accommodate pupils of school age inremote areas; (b) the development of multi-level materials to cater to variedability groups of pupils; (c) introduction of the Accelerated Learning Programfor Elementary Schools to meet the needs of the fast learners through verticalacceleration; (d) non-traditional approaches of delivering basic education.

Management Improvements

2.13 The BEE, as the lead implementing unit of the project, spearheadedseveral activities in order to improve its management capabilities and itslinkages with the regions for better monitoring of sectoral activities at thefield level. The BEE took an active role in introducing guidelines andstandards for the development and utilization of curriculum materials, staffin-service training and physical facilities. To equip BEE staff with thenecessary management and supervisory skills, the project awarded fellowshipsto key personnel. The BEE also assisted the PTS in creating the RPMTs. TheElementary Education Division of each region likewise took a lead role in theRPMT activities, thus upgrading staff capability at the regional/sub-regionallevels. Each region is now staffed by a regional research group, curriculumgroup, a regional training team and a supervision and evaluation team.Improvements are manifested by the coordination among the units involved inthe management of elementary education. The BEE and the Regional Offices have

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been equipped with the management capa'bility to respond to the nationaleducational strategy and to the regional needs as well.

2.14 The second management concern of the project was the expansion ofthe functions and organization of the OPS in particular and the planning workof the Department in general. As in BEE, substantial project funds wereallocated to staff development, fellowships and expert services. A greatmajority of the OPS staff were trained in educational research and evaluation,statistical methods, cost-benefit analysis and educational planning. Thesestaff now man key positions of the OPS. Regional Planning Units wereestablished at the regional levels through the initiative of OPS. The projecttook a lead role in the installation of a computer-based MIS envisaged toreduce data processing time and enable the OPS to respond with greater speedto the information needs of top level officials in planning and decision-making. The project purchased 240 microcomputers for the planning work of thecentral and regional offices, contracted the services of the appropriateconsulting groups to develop software packages and conduct computer trainingamong central and regional staff. The project also assisted the DECSFinancial Management Service (FMS). The project provided for thecomputerization of financial data and subsequently, computer training for FMSpersonnel. Further, the project procured a computer system to upgrade theDECS mainframe computer being used for payrolls and other financial planning.

2.15 As a condition to the effectivity of Loan 1224-PH, EDPITAForganized the Textbook Board Secretariat (TBS) to serve as the centraldirecting and coordinating unit for strengthening textbook development,production, distribution and utilization. By 1981, TBS had become a fullyorganized central agency staffed with qualified managers and specialists. TheGovernment committed itself to convert TBS into a corporation to implement thetextbook component of PRODED. Executive Order No. 806 was issued on May 27,1982 establishing the IMC. On May 31, 1985, Letter of Instruction No. 1463ordered the opevationalization of IMC and confirmed the transfer to thecorporation of the TBS staff and all assets and liabilities, as well as allapplicable appropriat.ons in the General Appropriations Act of 1985 pertainingto the DECS textbook development provision program.

Software Components

2.16 The new curriculum (NESC) was the centerpiece around which theother project components were woven. The NESC renewed emphasis on return tothe basics as well as values of humanism and Filipinism. There was areduction in the number of learning areas or subjects from eight subjects tofour in Grades 1 and 2, from eight to six in Grade 3 and from eight to sevenin Grades 4 to 6. The NESC was gradually introduced nationwide on a grade bygrade level each year starting with Grade 1 in 1983/84 up to Grade 6 in1988/89.

2.17 The Instructional Materials Development component of PRODED wasdesigned to support the NESC. This involved: (a) the development oftextbo<cs with corresponding teacher's manuals and provision of supplementaryor reference materials; (b) the production and distribution of about 11million textbooks yearly; and (c) the production of a number of referencematerials. The start of the development of the NESC materials in January 1982and subsequent implementation by grade level each year starting with Grade 1in June 1983 did not allow enough time for developing new textbooks according

17 -

to the regular schedule which normally covered a period of three years.Consequently, a one- and two-year crash program was adopted for the provisionof materials for Grades 1 and 2. Pending production of the new textbooksunder the new curriculum, supplementary veacher's guides were written toassist teachers in using the available texts and manuals. For Grades 3, 4, 5and 6, a regular development cycle was followed.

2.18 During the period January 1, 1982 to December 31, 1988, a total of137 elementary school titles were developed. Production and delivery of thesaid materials, however, were considerably delayed due to the problem in paperprocurement and printing services which were only eased with the newAdministration's policy in reducing time for major contracts and increasing ofthe contract signing authority of the DECS secretary from P 2 million to P 10million. At the end of the project in 1988, all textbook titles required bythe NESC had been developed and 86.67 million copies of textbooks, teacher'smanuals and workbooks were printed and dispatched to the regions and schooldivisions from the IMC central warehouse. Using IMC distribution grants,regional and division officials moved the books to the end-user schools.However, textbooks that had been dispatched from the IMC central warehouse andsupposed to have reached the schools were often found still stored inprovincial warehouses. One of the most common reasons given was the delay inthe receipt of the distribution funds from the Regional Offices.

2.19 In support of the NESC, the Educational Reorientation Program(ERP) was developed. At the start, the training curriculum was focused solelyon Values/Beliefs and Interpersonal Skills on the premise that any teacher whograduated from a teacher training institution would be equipped with thetechnical skills required in classronm management. Feedback, however, showedthat the training did not render the Grade I teachers equal to the challengesof the new curriculum. So the ERP curriculum, starting from the Grade 2teachers was revised to include the technical aspects which aimed to enhanceteaching efficiency for the teachers and administrative managerial andorganizational skills for the educational managers.

2.20 The ERP used two strategies in the pursuit of its objectives: theformal training phase, and the non-formal training phase, conducted throughthe network of Learning Action Cells (LACs). The LAC became the mechanism forthe continuous staff development efforts after the formal training phase. TheLAC identified its problems, planned alternatives to solve these problems,..mplemented and evaluated same. LACE were organized from the school to thenational level. In order to achieve maximum efficiency and to ensurecommitment in the training program, a common implementation strategy was setand a corps of trainers was trained from the regional and sub-regional levels.

2.21 Training was originally intended for teachers from disadvantageddistricts. However, upon the request of unserved clientele, DECS targeted thetraining of 100X of the public school teachers and the school administrators.This more ambitious program exacerbated problems of lateness and inadequacy ofmaterials, and the processing of contracts. Nevertheless, despite suchproblems, the targets of teachers and administrators to be trained wereachieved and exceeded.

2.22 The task of planning and implementing the technical assistanceprogram was undertaken by the Technical Assistance Screening Committee andPTS. Training needs were determined after a survey and consultation with the

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heads of recipient offices. At the end of project implementation, a total of1,696 staff-months or 81S of the available 2,087 staff-month provision (532foreign; 1,555 local) for the fellowship program had been utilized. Thisrepresents 179 foreign fellows (13 degree; 166 non-degree) and 979 localfellows (30 degree and 949 non-degree). IMC, which directly managed its ownfellowship program, sent 56 fellows to foreign e'..ort-term courses utilizing atotal of 93.75 staff-months.

2.23 The areas where the services of experts/consultants were likely tobe needed were determined in the same manner cited earlier. The originaltarget of 506 staff-months for expert services was reduced to 235 (55 foreignand 180 local) in 1985. The target was further reduced to 49 staff-months (13foreign and 36 local) in 1986 as a result of the loan reduction and theBorrower request to allocate the unutilized expert services for fellowships.In the event, PRODED utilized only two foreign experts for a total of 1.75staff-months.

2.24 The research component addressed itself to the whole researchcommunity in general as it elicited participants of research consumers andproducers. The 58 researches conducced by the project covered all theresearch concerns of the elementary sector identified. The studies werecompleted between 1982-89, however, nnly 40Z have completed the final reportswhile only 38% of the reports have been. dLstributed to the field.

2.25 Six special studies were undertaken during the PRODED years,namely: (a) School Location Planning; (b) Teacher Supply and Demand; (c)Sector Monitoring; (d) Household and School Matching Survey (HSMS); (e)Philippine Elementary Education Cost and Financing; and (f) Try-out of theNESC. The first three special studies were intended to strengthen thecapability of OPS in providing statistics and information needed in planning,implementing and evaluating the elementary education sector, and to strengthenthe capability of the regional and sub-regional offices in collecting,processing and utilizing statistics and related information. The HSMS wasintended to evaluate PRODED's impact on the performance of the elementaryeducation system, particularly if PRODED positively reduced disparitiesbetween low performing and high performing regions.

2.26 The research and special studies have served as inputs to sectorpolicy directions, planning and implementation of innovative and cost-savingeducational programs and projects. The project research findings have reachedup to the regional/divisional level; however, they have not extensively seepeddown to the teacher level, primarily due to lack of structures and avenues fordisseminating the research findings. Some research studies on disseminationschemes initiated by the project are presently being completed by selectedregional staff.

Hardware Components

2.27 Accomplishments under the regular School Building Program (SBP)over the period 1982-88 include: (a) 48,532 newly constructed classrooms; (b)19,751 repaired structures; (c) 2,608 multi-purpose workshops; and (d) 863toilets representing 722, 67%, 76Z and 452 respectively of the programedquantities. About 9,700 classrooms were built annually from 1982-85, andabout 4,100 classrooms per year from 1986-88, or an overall yearly average of

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7,300 (66% of the appraisal targets) new classrooms for the entire investmentperiod.

2.28 The major problems which affected SBP include: (a) realignment ofproject sites which were often outside the control of DECS. To minimize theseincidents, a more systematic reporting/feedback mechanism was set and siteselection procedures, through OPS, followed the results of its School LocationPlanning Study. However, this problem still persisted through the projectcycle; (b) the SBP was beset by non-compliance with building specifications bythe contractors who could receive final payments, even without the concurrenceof the DECS representative, so long as project accomplishments were properlycertified by a government engineer which in this case, comes from DPWH; and(c) the lack of proper coordination of management efforts at the DECS RegionalOffices.

2.29 In order to ptovide a base for the development of staff,curriculum and materials at the regional levels, one Regional EducationalLearning Center (RELC) was constructed in each of the 13 regions (two RELCs inRegion IV on account of its size and geographical location). Six RELCs (inRegions III, IV, IX, X, XI and XII) were constructed between 1982 and 1983within the contract schedule of 120 days and the cost estimate of P 1 millioneach. They were directly managed by the DPWH. Completion of the other sevenRELCs was considerably delayed in view of their implementation by phases.Phases I and II were managed and supervised by the DPWH with funds coming fromits office and the DECS. Phase III which was financed out of loan proceedswas fully managed by the regions under the technical L£ pervision of EDPITAF.

2.30 The project included the construction of the National EducationalLearning Center (NELC) to serve as the apex of all the RELCs. The NELCconstruction (January 1988-April 1989) exceeded the contract completion periodof 180 days by nine months owing to slippage during the early months (21taccomplishment against 75% target within five months of construction).

2.31 To accommodate the increase in volume of textbooks and facilitatetheir distribution at the local level, 26 provincial textbook warehouses and acentral warehouse annex were constructed. Construction of the provincialwarehouses and the central annex, which were started in early 1986 andDecember 1987, respectively, was supervised by EDPITAF.

2.32 PRODED was to provide: (a) tablet chairs, grader's tables,teachers' tables with chairs and chalkboards to schools identified asunderprovided in terms of books, teachers, equipment and furniture; and (b)furniture for the multi-purpose workshops and learning centers. Classroomfurniture procurement was done in phases. The assistance package for 1982 wasconsidered as Phase I, that for 1985-86 as Phase II and the 1986-88 package asPhase III. These last two phases formed the greater bulk of PRODED'sfurniture program. Another major package comr-ised the furniture for trainingcenters and dormitories.

2.33 The bulk of classroom furniture contracts were awarded to varioustrade schools through direct negotiations. Furniture items for the learningcenters and dormitory facilities were purchased through Local CompetitiveBidding procedures. The major problems which hampered contract execution bythe trade schools were: (a) revalidation of CDCs was very slow which resultedin delayed release of contract payments; (b) the Regional Quality Control

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Officer designated to sciuervise and monitor manufacturing and delivery workwas not accorded adequate logistical support; and (c) lack of technicalcapability of certain regions to manage and implement furniture projects intheir respective jurisdictions. Positive externalitie& were observed as aresult of contracting the trade schools such as student laborers whoparticipated in the project were able to develop their vocational skills whilegenerating income, out-of-school yout',s and unemployed adults in the communitywere given employment opportunities, and the undertaking served as anadditional source of income for vocational teachers.

2.34 The equipment and reference materials which were provided to theregional and subregional offices of DECS were the minimum basic requirementsof the recipient office/school. Procurement of this equipment suffered delaysand certain items were not procured as planned due to organizational andmanagement changes as well as implementation problems such as difficulty inpreparing specifications in accordance with Bank requirements, and existingpolicies on contract approval. To facilitate the procurement process,EDPITAF, PTS and BEE in 1985 jointly undertook a thorough review andevaluation of PRODED's procurement program. Realignments in programrequirements were effected in terms of equipment itemization and quantity,specifications, selection of prospective recipients and schedules. The bidsand awards committee introduced the conduct of pre-bidding conferences whichensured the clarity and orderliness of the tender documents,

Management Problems

2.35 Lack of baseline data and different statistics from variousoffices at the central and field levels posed problems to planning and fundsallocation. This problem eased towards the end of the -iroject when theElectronic Data Processing unit of OPS, which was the official source of allDECS statistics, became operational.

2.36 Organizational st-:uctures and the necessary staffing complementwhich were recommended by the project were either acted upon only after a longtime with low salary rates, or totally disapproved. Recruitment was thereforedelayed, causing further constraints to project operations. As a remedialmeasure, requests for secondment or detail of qualified staff from differentoffices were made to respond to the project staffing requirements.

2.37 The project management encountered difficulties in soliciting theparticipation of a big number of project implementors from the central,regional and sub-regional levels. Reaching out to them, involving them indecision-making, making them fully aware of the program and soliciting theiractual participation posed continuing problems that had to be reckoned withfrom the planning to the implementation phase.

2.38 The process of reimbursement from the loan funds was impaired bythe slow submission of Bank-required supporting documents by the RegionalOffices and by external agencies involved in the project. Further,liquidation of cash advances took a long time and the project had to closelymonitor regional staff to retrieve financial statements needed for subsequentfund releases.

2.39 The Special Account, a mechanism originally planned to facilitatewithdrawal of Loan proceeds, actually did not contribute to better fiscal

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management. The project should have been able to maximize the Special Accountutilization if it were governed by a modified control syetem, approved byappropriate fiscal agencies, instead of its being subjected to the usualbudgeting procedures.

Proiect Outcomes

2.40 In general, the various project inputs have helped in theupgrading of the elementary education sector as well as of the whole DECSmachinery in the areas of policy, management and sector performance. All theproject efforts were geared towards the overall improvement of the sectorperformance during and beyond the project cycle, in terms of quality, accessand efficiency.

2.41 A test of pupil performance was conducted for Grade 6 classes, theterminal grade of the elementary level, during the school year 1988/89. Theseclasses completed Grades 1 to 6 under the NESCO An overall mean score of47.34 across subject areas was obtained. This was 52 higher than the overallmean obtained by the Grade 6 classes in the Survey of Outcomes of ElementaryEducation (SOUTELE) test of 1976, and 10% higher than the score of the 1983HSMS Grade 6 samples. The three surveys are all national in scope and coveredthe same subject areas; however, different test instruments were used. TheSOUTELE and HSMS results indicate a decrease in the achievement levels ofelementary school graduates between 1976 and 1983, and a widening ofdisparities in achievement among pupils as indicated by the almost doubling ofthe standard deviation. The statistics also suggest that furtherdeterioration of pupil performance between 1983 and 1989 has been arrested,although wide variations in performance among students persisted. It can benoted that the data from the three surveys showing that pupils knew only lessthan half of what they ought to know, indicate that much is still to bedesired in terms of quality in elementary education.

2.42 The participation rate registered improvements from the base yearof 88.87 in 1979 to 91.9% in 1989. The overall participation rate for bothpublic and private sectors registered at 99.6%, indicating a very satisfactoryDECS performance in terms of encouraging school entry.

2.43 The cohort survival rate registered slight gains. In 1979, therate was 63.52 and it increased to 65.7% in 1988/89. The gain was lower thanthe project expectation of 78% by 1986.

2.44 On the whole, the performance of the elementary sector has shownsome improvements; however, the magnitude of effect attributable to theproject still has to be established. It should be noted, that not all PRODEDinputs were in place as of project completion time (school year 1987/88). Twoother summative studies initiated by the project called Project Impact andHSMS Round II would be able to assess in depth the effects of PRODED oneducational performance.

2.45 Partial results on impact of the project on the private sectorwere derived through a mini-survey. Initial results showed the following:(a) almost all the suppliers and contractors surveyed said that theirinvolvement provided them the opportunity to offer better quality service toclients; (b) the teachers and administrators group said that their involvementresulted in better management techniques, greater awareness of the needs of

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elementary clients, deeper commitment to quality education and sincere concernfor the teacher's needs and welfare. On the whole, the non-government officesfelt that their involvement in PRODED had very positive effects on them.

2.46 To a great extent, institutionalization and subsequentdecentralization of project inputs were achieved by the project. Thestructures and activities initiated by the different project components arenow being sustained in the regions, resulting in more enhanced responsibilityof the field staff. However, it is to be noted that some issues still affectthe process of implementation at the subregional level, such as the generallack of adequately trained staff, systems and resources to facilitate theperformance of the new functions attendant upon decentralization.

Proiect Costs, Financing and Disbursement

2.47 The total project cost estimated at appraisal was P 3.56 billionor an equivalent of US$448 million consisting of P 2.61 billion or US$348million local counterpart funds and a P 0.75 billion or US$100 million loanfrom the World Bank. In 1986, a second loan restructuring was effected by theproject through a reduction of the loan amount from US$100 million to US$80.5million. The Government counterpart was correspondingly increased pursuant tothe priority attention given by the new Administration to the educationsector. In Peso terms, the project cost estimated at appraisal increased byproject closing to F 6.116 billion. This increase appears to have been causedby two major factors: the steady increase of the exchange rate of the Peso tothe US Dollar from P 7.50 to P 21.09 in 1988, and the continued increase inthe cost of equipment, furniture and construction materials. The real Pesovalue of project using 1981 prices is only P 3.252 billion which is 47Z lowerthan the nominal value. Project funds disbursement extended to December 1988from the original schedule of December 1986, 24 months behind schedule due tomultifarious problems that beset project implementation especially during theearly stages. The total Loan proceeds withdrawn for the project amount toabout US$80.0 million.

Bank Performance

2.48 The sector approach of the project necessitated the continuingreview and modifications of the project plans and strategies at the differentstages of implementation. The Bank provided assistance in the followingareas: (a) accelerating the withdrawal of Loan proceeds; (b) planning for theunallocated amount of the Loan proceeds; (c) contract review; and(d) monitoring the progress ot project components.

2.49 The periodic Bank supervisory and review missions made possiblethe joint assessments with the project staff towards more efficient projectoperations. The Bank visits averaged twice a year during the peakimplementation years 1984-87. For its part, the project managementsynchronized its own work with the scheduled visits of the Bank so that bothcould conduct simultaneous review of project activities and field visits.

2.50 While the Loan Agreement specified a substantial amount forforeign consultants, the Bank concurred in the project management decision notto hire foreign experts and, instead, use the funds for fellowships--a movethat benefitted teachers, school administrators and educational managers.

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2.51 The project records show that while the Bank gave immediateresponses and approval of project requeots for the acquisition of simplelearning materials such as globes, maps and office equipment, it took timebefore it gave comments on more sophisticated items such as the microcomputer,hardware and software, audio-visual equipment and the mainframe computerupgrade. The average response time for the latter was three to five weeks.

2.52 The Bank's standing practice of allowing only bulk withdrawalapplications hampered efforts to accelerate Loan disbursements. There werediffering opinions from Bank mission members on procedures pertinent to loanwithdrawals for the technical assistance contracts, and on some items eligiblefor disbursements.

2.53 The Bank review mission members who visited the project at variousstages were education specialists, finance staff, research specialist,economists and project management staff. The education specialist closelymonitored the project only until early 1985, after which the other Bank stafftook turns in visiting the project until completion date. The project notesthat after 1985, there was a loose continuity of Bank review as the newmission members had to be oriented on the project operations.

Recommendations

2.54 For future development projects similar to PRODED, a directiveidentifying the office which has overall project responsibility should be madeby proper authorities to facilitate project implementation.

2.55 Future sector project plans should take into account the fullcycle of development-through-utilization of inputs in each project component,and arrive at a timetable that synchronizes all these. Activities should bewell orchestrated so that components that require antecedent activities liketeacher training and books development may be implemented as scheduled.Fellowship and staff development scheme both at the central and regionaloffices should also be planned early so that actual training can start uponavailability of funds and thus, expertise and skills gained can be utilized bythe project during implementation and later in the eventualinstitutionalization and decentralization phases.

2.56 Changes in structures, systems and management are logicalconsequences of top leadership reorganizations. However, it is desirable fornew officials to first try out the existing project structures, system andstaffing complements before implementing organizational modifications. Thiswill minimize disruption of the proje.t implementation.

2.57 It is suggested that work plans and schedules take into accountthe financial environment so that more realistic schedules and time frames canbe drawn up. In implementing innovations introduced by the project (i.e.,Special Account), an equally innovative approach in budgeting procedures couldbe adopted, without prejudicing governmernt interest.

2.58 It is strongly recommended that the DECS leadership restudy thegovernment directive to convert the IMC to a regular government agency underthe DECS. Despite many difficulties, the IMC was able to deliver therequirements of PRODED precisely because of its semi-autonomous operations.

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2.59 It is recommended that future projects attend to the ERP inputswhich may be harnessed in future activities. The project was able to developa fully committed '-orps of trainers who could staff the regional trainingprojects. The sector should attend to the continuing upgrade of competenciesof this corps to assure the availability of their expert services. Inaddition, the Learning Action Cell as part of the staff development program atall levels should be strengthened, revitalized and given financial support.

2.60 The existing guidelines state that the School Building Committees(SBCs) chaired by the local chief executives shall be responsible forformulating school building proposals. However, DECS as the actual user ofschools should have full control and authority over site selection andprioritization. Hence, it is recommended that SBCs be reconstituted so thatthe DECS representative will sit as the Chairman.

Insights and Lessons Learned

2.61 The utilization of Loan proceeds has consequences beyond projectparameters. Although not a primary concern, the project hoped to generatepositive externalities specifically those which may help the domestic bus:.nesscommunity through the purchase of locally made or manufactured learningresources, equipment, office materials and other inputs. However, it wasnoted that all throughout the project life, the sector identified requirementsthat had to be imported (about half of the procured goods were imported).

2.62 The quality of services of many local experts was equal to thoseof foreign experts. The project observed that the local education specialistsand consultants hired for the project were able to give expert guidance to theproject in as satisfactory a manner as foreign experts did. Similarly, in thearea of awarding fellowships, the project utilized the services of a number ofreputable local educational institutions which were able to satisfactorilytrain sector staff. This measure proved to be cost beneficial and the projectwas able to grant fellowships to more sector personnel.

2.63 The sector has a weak voice in technical activities. Experienceshows that DECS and the project monitors cannot make technical assertionsespecially on construction activities, since they are viewed more as educatorsor teachers than as technical staff knowledgeable with construction work. Asa result, school building projects are generally completed and turned overwithout taking into account the comments of DECS end-users.

2.64 Political inputs in the selection of school recipients are part ofsocial processes in a country like the Philippines. Local politicians have apivotal role in bringing the national development efforts to the farthest andsmallest constituent. However, DECS is concerned over the choice of priorityrecipients in some areas because some politicians work for the construction ofschool buildings in areas where they have political support but which do notform part of DECS priority.

2.65 Values development and borrowing in the Philippine context aregenerally regarded as issues that conflict. "Living within one's means" isone of the rallying points in the present values development framework of thecurriculum. In the business and economic circles, however, obtaining loans isan accepted practice. It is, therefore, a challenge to the education sectoras well as other groups to evolve an appropriate place for this practice inthe overall value orientation of the Filipinos.

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REPUBLIC OF THE PHILIPPINESNATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY

NEDA sa Pasig, Amber Avenue, Pasig, Metro Manila

Cable Address: NEDAPHILP.O. Box 419, GreenhillsTels. 673-50-31 to 50

15 August 1991

Asst. Sec. Ramon BacaniOffice of the Planning ServiceDepartment of Education, Culture and

Sports (DECS)Rizal Building, University of LifeMaralco Avenue, Pasig

Dear Assistant Secretary Bacani:

This refers to the draft Project Completion Report (PCR) for the Programfor Decentralized Educational Development (PRODED).

We are presently verifying with our Project Monitoring Staff (PMS) thefigures/data used in the PCR to ensure accurate and up-to-date reporting. Weshall inform you of our observations and corrections on the figures as soon asthey are available.

Meanwhile, we note that certain points still need to be smplified/included in the report, namely:

(a) analysis of the magnitude and efficiency of project fund flowsfrom the national down to the community level (since the PCRconcentrated mainly on fund flows between the Bank and Borroweronly);

(b) effect of textbook production/distribution on textbook-pupilratio;

(c) analysis of the marginal cost per pupil arising from theimplementation of the project;

(d) findings/results of the major research studies undertaken underthe project and an analysis of their utilization; and

(e) effect of the regional autonomy thrust, i.e. establishment of theCordillera Administrative Region (CAR) and the Autonomous Regionof Muslim Mindanao (ARMM), on the implementation/performance andinstitutionalization of PRODED.

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In addition, we observed that project benefits were assessed in terms ofthe actual vis-a-vis the target levels of various sectoral indicators such asthe participation rate, cohort survival ratio, student achievement, andstudent-teacher ratio. Extreme care should be taken in this regard sincevarious factors outside the project may significantly influence the above-mentioned indicators. There may be a need to specify the relationshipsbetween each of these indicators, on one hand, and the project inputs on theother.

Best regards.

Very truly yours,

FLEUR DE LYS 0. TORRESDirector IV

Social Development Staff

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PART III. PROJECT DATA

Table 3.1: RELATED IBRD LOANS/IDA CREDIT

Loan/Credit Number Year of ApprovalProject Title Purpose Status

Loan 393-PH 1964The Development Assist a five-year development program of the University of CompletedProgram of the the Philippines College of Agriculture (UP-CA) through the and closed inUniversity of the construction, renovation and equipment of college facilities, December 1972Philippines College and support to staff training, curriculum and research activitiesof Agriculture

Credit 349-PH 1972Second Education Improve agricultural and industridl education and training by CompletedProject supporting two regional agricultural colleges, 1 3 agricultural and closed in

high schools, 10 regional manpower training centers, three December 1978technical institutes, and the training of extension personnel

Loan 1224T-PH 1976Third Education Develop and distribute 27 million textbooks, and support Completed(Textbook) Project related curriculum development and teacher training; establish and closed

an educational management information system and carry out a in June 1 983pre-investment study on the use of educational mass media

Loan 1374-PH 1977Fourth Education Strengthen specialized facilities for forestry, animal science Closed inProject and veterinary medicine at the UP-CA, develop a regional December 1983;

agricultural college in the central Philippines and provide completed in 1985training for agricultural extension workers and farmer leaders

Loan S008-PH 1978Fifth Education Support experimentation in educational radio for classroom Completed(Mass Media Pilot) use and in-service teacher training and closed inProject December 1981

Loan 1786-PH 1979Sixth Education Strengthen technical end managerial expertise and research Closed in(Fisheries Training) for fisheries development through the establishment of a December 1989;Project university-based national center, and a network of regional completed in

fishery technology institutes and fishermen treining centers December 1990

Loan 2200-PH 1982Vocational Training Strengthen the national industrial training system by Completed inProject restructuring the National Manpower and Youth Council, December 1990;

increasing training capacity in sector-training centers, scheduled forestablishing a system of contracting for training, and closing in Aprilexpanding trade testing and certification 1991

Loan 3244-PH 1990Second Elementary Increase equity, efficiency and quality through the provision Effective onEducation Project and improved distribution of classrooms, desks, textbooks and August 30, 1990;

equipment, improvement of the professional c. mpetence of currently underteachers and school administrators, introductiot on a pilot implementationbasis of measures to prevent elementary school dropout,expansion of literacy training, and further development ofinstitutional capacities for planning and management

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Related IBRD Loans/IDA Credit

3.1 The Bank lending strategy for education in the Philippines hassought to develop the technical and managerial skills needed for economicgrowth, and to improve the provision and quality of basic education as theessential foundation of human resource development. These objectives havebeen pursued through eight IBRD loans and one IDA credit, with a total lendingamount of US$432 millior equivalent. The Bank has supported five projects forthe development of middle- and higher-level agriculture, fisheries andindustrial training; and four basic education projects, including theelementary education sector project reviewed in this report and its follow-upproject. The Second Elementary Education Project, which became effective onAugust 30, 1990, would assist the Government in building on the achievementsof the first project while continuing to address the persistent quality,efficiency and equity issues in elementary education.

Project Timetable

3.2 Preparation. The project was broadly identified subsequent todiscussions with the Government based on an August 1977 education sectormemorandum. Since 1972, the Bank had been working primarily with EDPITAF, anon-civil service, semi-autonomous arm of the DECS created in that year. Withhigher staff salaries and dynamic leadership, EDPITAF had become an effectiveproject development and implementing agency. The task at hand was to createsimilar capabilities in the DECS central offices (as was the original intentbehind the creation of EDPITAF), in addition to developing the managerialcapacities of the DECS regional offices established in 1975. The initiatingproject brief of September 18, 1978 proposed a project confined to one or tworegions to address these obje:tives in a limited geographical context as abasis for developing institutional and educational approaches which couldsubsequently be replicated in other regions. The Bank was also considering atthis time a separate project to improve the quality of basic education throughthe provision of instructional materials and use of instructional media,following on the earlier Textbook Development and Mass Media Pilot Projects(Loans 1224-T and S-8, respectively). The proposed regional education andbasic education projects were to be supported by Bank loans of US$25 millionand US$20 million, respectively.

3.3 The decision to focus the project on the elementary educationsubsector derived from the Government's long-term education development plan,which highlighted the need for improved quality instruction at this level.Project briefs dated February 2 and November 8, 1979 reflected the revisedscope of the project and the adoption of the sector lending approach. On therecommendation of the preappraisal mission, an increase in the loan amount toUS$55 million was approved in March 1980. Shortly thereafter, it was agreedthat the second phase of textbook development and production would beincorporated into the elementary education project, to ensure continuity inthese efforts and closer coordination with overall subsector developmentobjectives, as well as to reduce the overall number of projects in the Bank'slending program. The final loan amount was set at US$100 million duringnegotiations in May 1981.

29 -

Table 3.2: PROJECT TIMETABLE

---- ---------- - D a t e s --------------Planned Revised Revised

Stage (Feb. 1979 ̂ ') (Aug. 1984) (Jun. 1986) Actual

Identification(Initiating Project Brief) 9/18/78

Preparation 1/79-9/79 5/79 b'

Preappraisal 12/79 11/79 2'

Appraisal 6/80 9/80 d/

Loan Negotiations 8/80 5/81

Board Presentation 11/80 6/30/81

Loan Signing 12/80 8/25/81

Loan Effectiveness 3/81 11/10/81

Completion 12/85 12/86 6/88 12/88

Loan Closing 12/86 12/86 12/88 12/31/88

e/ Planned dates for completion and loan closing are those stated in the originalLoan Agreement dated August 25, 1981.

b/ Date of a visit to Bank headquarters by an EDPITAF team undertaken in lieuof a formal Bank preparation assistance mission .o the Philippines.

2X The class, ' ronstruction component was preappraised in March 1980.

d/ Date of main appraisal mission. The classroom construction and monitoringand evaluation components were appraised in July 1980. Two post-appraisal missions reviewed progress in the instructional materials andevaluation components in February and March 1981, respectively.

3.4 Implementation. More than two and one-half years after LoanEffectiveness, only US$5.7 million had been disbursed (includirng a US$2.6million deposit into the Special Account), compared to an appraisal estimateof US$25 million. The Bank's June 1984 supervision mission initiateddiscussions on a program to complete implementation and realize projectobjectives, with agreement reached on a restructuring plan during the October1984 supervision mission. There was no change in the range of activitiessupported under the sector program although their scope was modified to ensureattainment of objectives. The restructuring agreement signed in January 1985added civil works as a category for loan financing, reallocated loan proceeds,

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PROJEC TIMETABLE

12/88 12/88

L 10 12/BO 3/8 1/88

/7/

INITIATING PB PREAPPRAISAL NEGOTIATIONS SIGNING COMPLETIONPREPARATION APPRAISAL BOARD DATE EFFECTIVENESS CLOSING

Stage

{3 Planned -K Revised - Actual

increased disbursement percentages, raised the authorized allocation of theSpecial Account, and allowed financing from the Account for foreign as well aslocal expenditures. The agreement also noted the likelihood that the ClosingDate would have to be extended by at least one year.

3.5 Dramatic improvements in project implementation were achieved in 1985and maintained during the first half of 1986, despite the change inGovernment. Still, with only six months remaining to the original ClosingDate, only 35% of the Loan had been disbursed. Bank financing of civil worksdid not accelerate disbursements as expected, due to the difficulty ofcollecting supporting documentation for reimbursements from the DPWH districtand regional offices. The Government requested from the Bank a two-yearextension and a second Loan restructuring, based on an updated plan of projectactivities and expenditures, and taking into consideration proposed increasesin the investment and recurrent budgets for education. The two-year extensionwas also to allow full implementation of the new curriculum to the end of theelementary cycle, with increased financing provided to textbook production andteacher training. The second restructuring agreement involved thecancellation of US$19.5 million of the Loan effective December 10, 1986, andreallocation of loan proceeds in line with the Government's revised program.The Closing Date was extended by one year to December 31, 1987, with theunderstanding that a second extension would be granted subject to satisfactoryprogress in meeting revised implementation targets. The formal request to

31 -

further extend the Closing Date to December 31, 1988 was submitted to the Bankin October 1987. The Loan Agreement was amended in January 1988 to reflectthe new Closing Date as well. as to revise lcan allocations and permit thefinancing of future project preparetion and sector studies. In accordancewith Bank policy at the time, the Bank was to disburse against withdrawalapplications received within six monLhe of the Closing Date, but this deadlinewas extended to August 31, 1989 upon the request of the Government.

Table 3.3: CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS

----------------- Cumulative disbursements in US$ million -----------------------Actual

IBRD fiscal Appraisal Revised Revised as % ofyear/semester estimates estimates estimates appraisal

May 1981 Actual Feb. 1985 Actual Dec. 1986 Actual estimates

1982 2nd 1.5 2.7 1' 1791983 1st 5.0 3.0 60

2nd 11.0 3.5 321984 1st 18.0 5.4 30

2nd 25.0 5.7 231985 1 st 33.0 7.3 22

2nd 45.0 20.0 13.5 301986 1st 65.0 32.0 20.9 32

2nd 90.0 54.0 30.5 341987 1st 100.0 76.0 35.3 35

2nd 100.0 48.3 49.4 491988 1st 60.3 62.4 62

2nd 71.5 65.9 661989 1st 80.5 69.4 69

2nd 80.5 76.5 771990 1st 80.5 80.0 80

a/ Included US$2.6 million deposit into the Special Account.

Disbursements

3.6 PRODED was the first project in the Philippines for which a SpecialAccount was established. While the Bank's Legal Department expressed concernabout introducing this procedure, it was the combined judgment of the then-Projects, Programs and Controller's Departments that the Special Account wouldaccelerate disbursements cnd thus facilitate timely implementation of theproject. The Account was maintained in the Central Bank of the Philippinesand controlled by the Bureau of the Treasury. It was originally intended tobe used for local expenditures only, to be replenished by the Bank on receipt

32 -

hgure 2:CUMULAThV LOAN DISBURSEMENTS

loc / ,

90 _ _ _ _ _- --

60 _ _ _ _ _

-50

~40 -

a)

~-20

*~10

1982 1q83 1984 1985 1986 1987 1988 1989 1990IBRD fiscal year

Appraisal estimate B Revised estL 1985 )K Revised est 1986 -&-Actual

of statements of expenditures and withdrawal applications with appropriatesupporting docume.its covering the relevant items. The Government was to .akekentire payments (its share of the financing and the Bank's) and submitappropriate documentation to the Bank before it could draw the relevant amountof the loan proceeds from the Special Account. The Loan Agreement requiredthe submission to the Bank of certified mon'.hly statements and annual auditreports of the Special Account.

3.7 Because existing Government policy required that an account funledfrom proceeds of a foreign loan must be maintained in local currency, aninitial deposit of Pesos 22.0 million (US$2.6 million equivalent) was made inApril 1982, and all subsequent replenishments were made in Pesos. In the 1985restructuring agreement, it was agreed that the Special Account should beavailable for both local and foreign expenditures and that the allocation forthe Account should be increased from US$3 million to US$8 million. A SpecialAccount denominated in US Dollars was thus established in June 1985, and thePeso Account was terminated. As a result of the Account having beenmaintained in the local currency and the exchange rate having in-creased fromPesos 8.5 per US Dollar in 1982 to Pesos 18.8 in 1985, the Governmentsustained a loss equivalent to about US$1.6 million.

- 33 -

Table 3.4: PROJECT IMPLEMENTATION

Objective/Target Defined at Appraisal Actual Accomplishmont/PCR Estimate

School Buildinn Proaram

On average, 11,000 new From 1982 to 1988, a total of 48,632 new classrooms wereclassrooms would be constructed constructed, for an average of about 7,000 classrooms annually.annually. 2,608 multi-purpose workshops and 863 toilets were also

constructed.

Rehabilitation of classrooms would 9,751 classrooms were repaired or rehabilitated.also be supported.

Textbook Warehouses

26 textbook warehouses would be Accomplished, bringing the total number of local warehouses inconstructed to reduce the distance the textbook distribution system to 152. Construction of the 26between stocks and end-users. provincial textbook warehouses started in November 1986 and

was completed in 1986. Construction of an annex to the IMCcentral warehouse began in December 1987 and finished in 1988.These construction activities were supervised by EDPITAF.

13 regional training centers would 14 Regional Educational Learning Centers (RELCs) werebe provided to support staff constructed (two for Region IV). DPWH oversaw the constructiondevelopment activities. of six RELCs completed between 1982 and 1983, and the first

phase of construction of seven other RELCs. In 1985, completionof RELC projects became the responsibility of DECS RegionalOffices under the technical supervision of EDPITAF. Dormitorieswere added to all RELCe between 1986 and 1989 to permitgreater utilization of the training centers.

Existing facilities at the Baguio Teacher's Camp were upgraded sohouse a National Educational Learning Center (NELC). Workundertaken from January 1988 to April 1989 was supervisedinitially by a Construction Manager and later by EDPITAF.

Furniture, Equipment and Materials

Furniture would be provided to From 1982 to 1986, about 1 10,000 chairs and 20,000 tablesreduce acute shortfalls in school were produced by selected schools of arts and trades, meetingdistricts with poor performance. about 10% of furniture needs for new classrooms. About

600,000 school desks were produced in 1986-87 under theCommunity Employment and Development Program, a localemplyrment generation project.

Furniture was also provided for multi-purpose workshops and theRELCs (including dormitories). The total value of furnitureprocured under the project was US$26.6 million. The Loanfinanced US$7 million of classroom furniture and US$0.4 million offurniture for other facilities.

Administrative equipment would be The Loan financed US$1.4 million of equipment for agenciesprovided for the DECS central and attached to the DECS central offices (including BEE, OPS, FMS,regional offices, and the regional EDPITAF, NELC), and US$6.3 million for the DECS Regionaltraining centers. Offices and RELCs. Office, audio-visual and computer equipment,

and vehicles were provided.

34 -

Table 3.4: PROJECT IMPLEM§ENTATION (cont.)

ObjectivefTarget Defined at Appraisal Actual Accomplishment/PCR Estimate

Reforence materials, including dictionaries, atlases,encyclopedias, and library books, were provided toschools and learning centers. The Loan financedUS$0.2 million of reference materials to BEE andUS$14 million to the DECS Regional Offices andRELCs.

US$4.6 million of furniture and equipment wasprovided to the regions from the 1988 and 1 987Government budgets.

Phototypesetting equipment for preparing pilot IMC received US$0.7 mii,on of equipment andeditions and a library of prototype publications reference materials financed from Loan proceeds.would be provided to the IMC.

Instructional Materials

About 11 million textboolks would be printed From 1982 to 1988, about 54 million textbooksand distributed annually. were distributed, two-thirds of which were new

curriculum texts. About 29 million workbooks forGrades 1 and 2 in Pilipino and Mathematics werealso distributed.

About 6 million teacher guides and 500,000 About 2.6 million teacher guides, 758,000supplementary materials would be provided to supplementary and reference materials, and 186,000support the basic textbooks. charts were distributed.

Training WorkshoDs

Al professional staff involved in elementary A national training agency was contracted toecucation at the DECS central and regional develop training workshops for the project.offices and IMC, and about 50% of school Three basic training packages were implementedheads and teachers would be trained during the from 1982 to 1988:period from 1982 to 1985.

- an Educational Systems Management ProgramTraining workshops to develop skills in aimed at strengthening DECS managementorganizational management and program capabilities was provided to 384 Division/Assistantplanning would be provided to 555 professional Division Superintendents, 2199 Districtstaff of the BEE, FMS and DECS Regional Supervisors and 1947 Subject Area Supervisors.Offices, 225 Division Superintendents and1800 District Supervisors. - an Educational Planning and Management Program

aimed at improving school administration andWorkshops for 14,000 principals and 125,000 teacher supervision was provided to 18,410teachers would support the introduction of the principals and head teachers (100% of schoolrevised curriculum and instructional techniques. heads); and

125 IMC staff would participate in workshops - a Teacher Formation Program aimed at improvingon the development of instructional materials instructional management skills was provided toand management of publishing activities. 272,303 teachers (100% of elementary school

teachers).

35 -

Table 3.4: PROJECT IMPLEMENTATION (cont.)

Objective/Target Defined at Appraisal Actual Accomplishment/PCR Estimate

In addition, 384 staff underwent an intensivefive-week Trainer Development Program aimedat developing skills to manage teacher and otherstaff training programs; and approximately20,000 staff received training to lead LearningAction Cells at the school, district, divisionand regional levels.

Fellowships

About 250 DECS central and regional office staff 1,1 58 DECS staff participated in the fellowshipwould participate in fellowship training, with program, with a total of 1,e96 staff-monthsawards totalling to 1,850 staff-months during the provided as follows:period from 1981 to 1985. 400 staff-months of Participants Staff-monthslocal and 200 staff-months of foreign degree - Foreign degree 13 239fellowships would be awarded. 1,000 staff- - Foreign non-degree 1 s6 285months of local and 250 staff-months of foreign - Local degree 30 607fellowships would be provided for non-degree Local non-degree 949 565training.

About 109 months of non-degree, foreign 56 IMC staff received a total of 94 staff-monthsfellowship training would be provided for 30 staff of foreign, non-degree training.of IMC in management and accounting, textbookwriting and editing, design, manufacturing anddistribution.

Expert Services

180 staff-months of expert services (90 foreign, T he project utilized 6 staff-months of local and90 local) would be provided to DECS for 1.75 staff-months of foreign expert services.educational testing and evaluation, school locationplanning, date systems and processing, curriculum A number of institutions were contracted toand teaching methods, financial management and assist in fjlfilling specific project tasks,budgeting, and for introducing the monitoring including a national training agency in the designscheme for teacher supply and demand. and implementation of the staff training program;

a local university-affiliated foundation in pianningAn additional 200 staff-months of loca! expert the DECS management improvement program;services would be provided to assist directly with two private firms and a national training agency inimplementation of the development program. developing the educational management

information system; a local educational testing36 months of expert services would be provided service in evaluating the new curriculum; and twoto develop workshops for IMC staff. 90 months foreign institutes (Australian and U.S.) inof foreign expert services would be provided for administering the foreign fellowship programs.six experts in textbook development, management (No information is available about the number ofand production, printing, accounting and data staff-months of expert services involved in theseprocessing. various contracts.)

- 36 -

Table 3.5: PROJECT COSTS(in US$ million)

Estimated Costs !' Revised 1' Revised 4' Final Costs(Appraisal, May 19811 (01/85) (11/86) (December 1988)

Category Local Foreign Total Total Total Local Foreign Total

Schools and other 265.9 66.3 332.2 190.5 "' 294.2 204.3 51.1 255.4civil works

Equipment, materials 1.7 37.3 39.1 31.9 29.9 1.5 36.9 38.4and paper

Furniture 10.7 5.3 1 6.0 9.6 22.0 18.3 9.0 27.4Printing, developmentand distribution ofinstructionalmaterials 14.4 11.8 26.3 14.4 13.7 9.0 7.3 16.3

Training workshops/Staff development 21.0 2.3 23.2 10.7 19.6 16.0 1.8 17.8

Consultants' servicesand fellowships/Evaluation, studies 5.0 6.5 11.6 7.5 10.8 6.1 6.1 12.2and preparation offuture projects

Project management - - - - - 9.6 1.7 11.3

Total Project Cost 318.7 129.4 448.1 284.5 390.2 2 4.9 113.9 378.8

in Pesos million 2,390 971 3,361 4,781 e' 7,980 4,184 1,932 6,116

"' Estimated costs include physical and price contingencies.b' Based on exchange rate of June 1985.

Proiect Costs

3.8 The total project cost was estimated at appraisal at US$448 million,including US$134 million of contingencies, for expenditures over a four-yearperiod (1982-85). At the appraisal exchange rate of Pesos 7.5 to US$1, thiswas equivalent to Pesos 3.4 billion. The final project cost was Pesos 6.1billion, expended over seven years. Based on average annual exchange ratesranging from Pesos 8.5 in 1982 to Pesos 22.5 in 1988, the final project costis estimated at US$379 million equivalent. The foreign exchange component wasestimated as follows: 20Z for civil works; 96Z for equipment, materials andpaper; 33% for furniture; 45% for printing, development and distribution ofinstructional materials; 10% for training workshops; 502 for consultants'services and fellowships; and 15% for project management.

_ 37 -

Table 3.6: PROJECT FINANCING(in US$ million)

Estimated Financing Revised Loan Allocations Final Financing(Appraisal, May 1981) (02/85) (12/88) (01/88) (August 1989)

Category GOP IBRD Total IBRD IBRD IBRD GOP IBRD Total

Civil works 330 0 330Schools 21 5.4 6.0 244.7 6.0 250.7Other works 2 1.8 2.0 2.3 2.3 4.8

Equipment, materialsand paper 0 35 35 28 26.9 30.0 8.0 30.4 38.4

Furniture 0 15 15 9 5.4 e.0 21.2 8.1 27.4Instructional materialsPrinting 0 10 10 a 8.0 9.0 1.1 9.6 10.8Development anddistribution 5 5 10 4 3.6 4.0 2.7 2.9 5.8

Training workshops(staff development) 7 13 20 10 11.7 13.0 4.1 13.7 17.8

Consultants' servicesand fellowships/ 0 9 9 7 9.7 10.5 4.8 7.4 12.2

Evaluation, studiesand preparation offuture projects

Project management - - - - - 11.3 - 11 .3Special Account 0 3 3 8 8.0 - - 1.8 1.8'Unallocated 8 10 16 5 - - - - -

TOTAL 348 100 448 100 80.5 80.5 300.4 80.0 380.4 k'

*' Represents the loss in US Dollar terms as a result of the depreciation of the local currency between1982 and 1985 when US Dollar deposits into the Peso-denominat6d Special Account were convertedinto the local currency and remained in the Account.

b/ Total cost of US$378.8 as reported by the Government (Table 3.5), plus the US$1.6 million SpecialAccount exchange rate loss.

Project Financing

3.9 The original Loan of US$100 million was to finance 22% of totalproject cost. As a result of the 1985 loan restructuring, the share of Bankfinancing was estimated to increase to 38% of total project cost. US$19.5million was canceled in connection with the 1986 restructuring, and anundisbursed amount of US$471,486.03 was canceled following the finaldisbursement from the Loan on August 28, 1989. Loan proceeds totallingUS$80 million thus financed 21Z of the final total project cost.

- 38

Table 3.7: PROJECT RESULTSA. Benefits

Objective/Target Defined at Appraisal Actual/PCR Estimate

Intake Rate of 7-year olds(Proportion of the 7-year old population enrolledin the first grade)

The intake rate of 7-year olds would rise from This indicator was not monitored.74% in 1979/80 to 84% by 1985/86, and to90% by 1990/91.

Net Participation Rate(Ratio of enrolled students aged 7-1 2 to the The Borrower's PCR reports that the nettotal 7-12 population) participation rate in 1 979/80 was 89%, and

92% in 1988/89. A reduction in the proportionThe net participation rate would increase of enrolled over- and under-aged students fromfrom 84% in 1979/80 to 90% by 1990/91. 15% in 1979/80 to 11 % in 1985/86 also

suggests an improvement in net participation.

Disparities, reflected in regional participation Net participation rates by region are givenrates ranging from 54% to 95% in 1979/80, below, but the data appear to be unreliable.would be reduced. Region XII, for example, is reported to have a

net participation rate of 100%, compared to54% in 1 979/80. The participation rates arealso inconsistent with the reported cohortsurvival rates. DECS has continually hadproblems reconciling their enrollment statisticswith official population figures.

Cohort Survival Rate(Proportion of each entering cohort reaching thefinal sixth grade within the prescribed 5 years)

The cohort survival rate would increase from The survival rate of the cohort in Grade 6 in65% in 1979/80 to 78% by 1985/86, and to school year 1988/89 is 66%.86% by 1990/91.

Disparities, reflected in regional survival rates As shown in the table below, regional survivalranging from 50% to 84% in 1979/80, would rates in 1988/89 ranged from 47% in Region XIlbe reduced. to 85% in the National Capital Region.

Student Achievement

Student scores on standardized achievement Tests were administered to Grade 6 students intests would rise from an average of 48% in school year 1988/89 in connection with the1979/80 to 55% by 1985/86, and to 63% by evaluation of the new curriculum. The overall1990/91. mean score was 47%, with a standard deviation

of 16. Since the tests were aimed at evaluatingthe curriculum rather than student learning, theresults can only be taken as indicative ofcontinuing low achievement levels and widedisparities in student performance.

- 39 -

Table 3.7: PROJECT RESULTSA. Benefits (cont.)

Net Participation Rates by Reaion

1979/80 1985186 1988/89Region Actual Actual Actual

1 88 93 991 92 92 87

CAR 92III 90 91 96IV 84 92 97V 86 92 91VI 86 8e 90

VIl 84 81 84Vill 78 85 91IX 95 91 99X 85 90 91Xi 80 92 97

XII 54 94 100NCR 88 80 77

National 84 90 92

Cohort Survival Rates by Reqion

1978/79 1985/86 1985/86 1988/89Region Actual Target Actual Actual

1 82 87 78 80If 66 78 6o e6

CAR 61III 77 84 77 77IV 78 84 75 74V so 78 63 64VI 60 74 60 64

VII 61 74 58 63Vill 52 84 55 56IX 51 71 48 52X 64 77 57 58Xl 66 78 59 60

XII 50 70 46 47NCR 84 88 87 85

National 65 78 64 66

Note: The Cordillera Administrative Region (CAR) was created in 1988 fromprovinces previously included in Regions I and 11.NCR is the National Capital Region.

Sources: Staff Appraisal Report (1978/79, 1979/80 and 1985/86 targets);the Borrower's PCR (1 985/8 actual, 1988/89).

- 40 -

Table 3.7: PROJECT RESULTSA. Benefits (cont.)

Objective/Target Defined at Appraisal Actual/PCR Estimate

Teacher Utilization

Improvements in teacher utilization would bereflected in:

- a decrease in the teacher-class ratio in Grades The eacher-class ratio in Grades 5 and 6 was5 and 6 from 2:1 in 1979/80 to 1.2:1 in 1.5:1 in 1988/89.1986/87; and

- a corresponding increase in the elementary The national elementary student-teacher ratiostudent-teacher ratio from 31:1 in 1979/80 to was 33:1 in 1988/89.36:1 in 1986/87.

Disparities, reflected in regional student-teacher Regional data given in the table below show aratios ranging from 25:1 to 39:1, in 1979/80 range from 29 students per teacher in Region Iwould be reduced. to 38 students in Regions Xi and XII.

Students Per Teacher by Region

1979/80 1985/86 1988/89Region Actual Actual Actual

1 25 26 2911 34 32 34

CAR 30III 33 33 35IV 31 32 33V 32 32 33VI 28 28 30

VIl 29 29 32Vill 32 33 37IX 32 33 37X 36 34 37

Xi 39 35 38XII 31 32 38

NCR 31 29 32

National 31 31 33

Sources: Staff Appraisal Report (1979/80);the Borrower's PCR (1985/86, 1988/89).

- 41 -

Table 3.7: PROJECT RESULTSB. Studies

Purpose of Studies as Defined at Aggraisal Status and Impact

The project was to support research on the main issues in 58 studies were undertakenelementary education and on experimental delivery systems. between 1982 and 1989. As ofAbout 30 studies were to be undertaken from 1982 to 1985 August 1989, 23 final reports hadby research proponents from the Government and universities, been submitted. The Borrower'swith regional cooperation as appropriate. Studies were to be PCR lists the research studiesassessed on the basis of potential contributions to the financed under the project.achievement of program objectives and the formulation ofsector policies. Three studies were identified in the StaffAppraisal Report, although their specific objectives were notdetailed: (a) the financing of education; (b) a review ofpre-service teacher training programs; and (c} the expectedimpact of the elementary education development program onthe secondary school system.

Results of Studies Identified at Anoraisal

(a) The specific objectives of the 'Philippine Elementary Education Cost and Financing' study(1988) were to estimate the recurrent expenditure of an average public elementary school, toreview alternative financing schemes, and to analyze the Government's policies and proceduresin estimating funding requirements for elementary education, in authorizing budget allocations,obligating funds for the procurement of goods and services, and obtaining resources. Theresults of the study were reportedIV utilized to initiate improvements in budget preparation andallocation, and the administration and accounting of local and school funds.

(b) Four studies related to teacher education were undertaken: "Baseline Research on ElementarySchool Teacher Education' (1982), "Trends in Teacher Supply and Demand" (1982),"Capabilities and Prospects of Teacher Training Institutions in Region 111' (1983), and "Review ofthe State-of-the-Art of Educational Research--Teacher Education (1983). These studies weredescriptive in nature, giving some basic data about teacher training institutions, courses offered,enrollments and staff. A methodology for assessing teacher requirements at the national levelwas the main feature of the 'Teacher Supply and Demand" study (1 987) undertaken by theDECS central office.

(c) PRODED helped finance a series of studies on secondary education, including early estimationsof the effect of the elementarV education program on student enrollment, completion andachievement levels. These studies served as inputs into a development plan designed tostrengthen policies, management and instructional programs in secondary education, and led tothe preparation of a secondary education project. Preparation activities related to the proposedproject were financed by PRODED, including technical assistance for detailed planning and theprovision of office equipment to selected secondary schools. The Government eventuallyrequested financing from the Asian Development Bank, which appraised the SecondaryEducation Development Project in 1988 and is currently supervising its implementation.

- 42 -

Table 3.8: COMPLIANCE WITH LOAN COVENANTS

Loan AgreementReforence Covenant Status/Remarks

.. ,............. .......... ......................... ........................... ............................ ................. ---------------....... ............... ....................... .............................

2.02 Open and thereafter maintain a Special Account on Complied with. A Special Account in(b) terms and conditions satisfactory to the Bank. Pesos woe established in April 1982;

in June 1986, the Peso Account wasclosed and replaced by a SpecialAccount denominated in US Dollars(pars. 3.7).

3.02 Award fellowships to qualified candidates in Complied with.accordance with criteria and procedures satisfactoryto the Bank, and employ consultants whosequalifications, experience and terms and conditionsof employment are satisfactory to the Bank.

3.04 Prepare and furnish to the Bank by June 30, 1989 Complied with. The Borrower's Project(d) (six months after the Closing Date) a report on the Completion Report was submitted to

execution of the project, its cost and benefits, the the Bank in August 1989.performance of the Borrower and the Bank of theirrespective obligations under the Loan Agreement,and the accomplishment of the purposes of the Loan.

3.06 Acquire as needed all such land and rights as required Complied with.for carrying out the Project.

3.06 (a) Select and implement subprojects in accordance Coniplied with.with procedures outlined in Schadule 6 to the LoanAgreement; and (b) furnish to the Bank for its reviewand comments not less than three months before implementation such subproject proposals as the Bank mayrequest.

3.07 Establish by October 31, 1981 the Instructional Complied with. Executive Order No.Materials Council end the Instructional Materials 806 creating the Instructional MaterialsCorporation with powers, responsibilities, staff and Corporation and Council was issued onresources satisfactory to the Bank. May 27, 1982. On May 31, 1986,

Letter of Instruction No. 1463confirmed the transfer to thecorporation of the Textbook BoardSecretariat staff and all assets andliabilities, as well as all applicableappropriations in the GeneralAppropriations Act of 1985 pertainingto the DECS textbook program.

3.08 Appoint and retain suitably qualified staff in adequate Complied with.numbers at the DECS for the implementation of theElementary Education Program.

3.09 Avail of the expertise and staff of the EDPITAF or any Complied with.other agency of the DECS to provide assistance incarrying out the Elementary Education Program underterms of reference satisfactory to the Bank.

- 43 -

Table 3.8: COMPLIANCE WITH LOAN COVENANTS (cont.)

Loan AgreementReference Covenant Stetus;Remarks.. .................. I........................ - - -- - - - - - - - - - ....... ........... .. ...... ........ .. .... ... .......... ............. .... ... ......... .... ........ ...... . .... .....

3.10 Consult with the Bank in the event major changes in Complied with.the Policy Statement or Elementary EducationProgram are required.

4.02 Maintain records adequate to reflect in accordance Complied with.(a) with sound accounting practices the project

operations, resources and expenditures of theagencies responsible for carrying out the project,including separate accounts reflecting expenditures onaccount of which withdrawals are requested from theLoan Account on the basis of certificates ofexpenditures.

(b) Retain until one year after the Closing Date all records Complied with.evidencing the expenditures from the Loan Accounton the basis of certificates of expenditures, andenable the Bank's accredited representatives toexamine such records.

4.03 Furnish to the Bank not later than six months after the Annual reports were submitted as(a) end of each Government fiscal year (i.e., calendar follows:

year) certified copies of audited financial statements Calendar Year Date Receivedand the report of such audits, including a separate 1982 May 1988opinion as to whether the proceeds of the Loan 1983 July 1986withdrawn from the Loan Account on the basis of 1984 July 1986certificates of expenditures have been used for the 1986 November 1986purpose for which they were provided. 1986 November 1987

1987 September 19881988 May 1990

The 1989 report due on June 30, 1990has not been received.

A separate opinion on certificates orstatements of expenditures (SOEs) hasnot been included in the annual auditreporte. The November 1986 reviewmission received assurances from theDECS Resident Auditor that the auditof accounts from 1983 to 1985 includeda detailed audit of receipts relating toSOEs.

(b) Furnish to the Bank not later than four months after A Special Account audit report wasthe end of each Government fiscal year certified submitted for calendar year 1986copies of the audit of the Special Account and the (received May 1988).auditor's report, including a description of the auditingprocedures, and a separate auditor's opinion as to Certified statements of the Specialwhether the proceeds of the Loan withdrawn from the Account were submitted with withdrawalSpecial Account were used to make payments for applications for replenishment of thegoods, works or services used for carrying out the Account.Project and eligible for financing under the LoanAgreement; and furnish to the Bank each monthcertified statements of the Special Account.

- 44 -

Table 3.9: BANK MISSIONSA. Identification through Appraisal

EstimatedMonth/ No. of no. of

Mission Year persons staff-days Specializations represented

Identification/Reconnaissance 12/78 1 2 Education Planner '

3/79 1 2 Education Planner A1

Preparation 9/79 1 5 Education Planner

Preappraisal 11/79- 5 82 Economist, General Educator,12/79 Evaluation Specialist,

Management Specialist,Education Planner

3/80 1 3 Architect c,

Appraisal 7/80 2 15 Architect, Evaluation Specialist d/

9/80- 4 71 Economist, General Educator,10/80 P ,curement/Disbursement

Specialist, Educational Publisher

Post-appraisal 2/81 2 20 Economist, Educational Publisher °'

3/81 1 10 Evaluation Specialist

I Sublot 210

Note: The number of ,taff-davs was estimated from mission terms of reference, aide-memoires,back-to-office reports and/or supervision reports.

f' To specify project objectives and components based on an initiating project brief issuedon September 18, 1978, and a revised brief dated February 2, 1979.

b/ To ascertain the status of project preparation by the Government. A four-person EDPITAF teamhad visited Washington from May 14 to 20, 1979 to discuss the Government's draft LoanApplication. The final document was received by the Bank on November 6, 1979.

2f To preappraise the classroom construction component.

d/ To appraise the classroom construction and monitoring and evaluation components.

f' To post-appraise the project, with emphasis on the textbook component.

I' To review progress in the development of the evaluation component.

- 45

Table 3.9: BANK MISSIONSB. 3upervision

Estimated Over- Implemen-Month/ No. of no. of all tation

Mission Year persons staff-days Specializations represented status problems

Supervisionl 10/81- 3 6 Architect, Gerneral Educator, 1

11/81 Administrative Assistant

ll 6/82- 4 20 General Educator, Procurement 1 C, P, l7/82 Specialist, Architect, Economist

Ili 10/82 2 6 Architect, Economist 1 C (3); M, I

IV 2/83 1 2 General Educator i'

V 9/83- 2 16 3eneral Educator, Evaluation 2 D (3);10/83 Specialist F, C, i

VI 6/84 3 17 Technical Educator, Economist, 2 D, F (3); M,Loan Officer P. C, CO, I

VIl 9/84 1 4 Loan Officer

Vill 10/84 2 8 General Educator, Technical 2 D, F (3); M,Educator P, C, CO. I

lX 2/85 2 4 General Educator, Technical 2 D (3); F, M,Educator P. CO, I

Notes:

Overall status ratings: 1--problem-free or minor problems; 2--moderate problems; 3--major problems.

Implementation oroblems are the areas of project implementation reported on the SupervisionSummary (Form 590) as moderate or major problems (the latter indicated by a "3"). Prior toApril 1985, Form 590 ratings were required for, among others, the following:

C--Compliance with Loan Conditions; P--Procurement Progress; M--ManagementPerformance; D--Disbursements; F--Project Finances; CO--Anticipated Completion; l-Institution-Building.

3' Review by the Country Coordinator of ongoing projects in the country; not a formalsupervision mission, thus only a back-to-office report was filed.

b/ Review of project implementation by the Loan Officer; not a formal supervision mission.

- 46 -

Table 3.9: BANK MISSIONSC. Supervision (cont.) through Project Completion

Estimated Over- Implemen-Month/ No. of no. of all tation

Mission Year persons staff-days Specializations represented status problems

SupervisionX 6/85 1 4 General Educator 2 AF, PM, Di

Xl 10/85 1 5 Architect 2 AF, PM, Di

XII 1/86 1 3 General Educator 2 AF, PM, Dl

XiII 6/86 1 5 Economist 2 AF (3);PM, DI

XIV 10/86 3 15 General Educator, Architect 2 PM, DITechnical Educator

XV 3/87 4 20 Technical Educator, Architect, 2 PM, DlGeneral Educator, Economist

XVI 10/87 2 10 General Educator, Economist 2 PM, DI

XVII 4/88 2 4 General Educator, Education 2 AF. PM, DiPlanner

XVIII 9/88 1 3 Procurement Specialist 2 Dl

Subtotal 154

Completion 3/89 1 2 Procurement Specialist(PCR)

5/89 1 2 Procurement Specialist

TOTAL 368

Notes:

Overall status ratings: 1-prok,lem-free or minor problems; 2-moderate problems; 3-major problems.

Implementation problems are the areas of project implementation reported on Form 590 asmoderate or major problems (the latter indicated by a 3"). Revised in April 1985 and renamed theImplementation Summary, Form 590 required ratings for the overall status of implementation andthe following: AF--Available Funds; PM--Project Management; DI-Development Impact.

Revised again in March 1989, Form 590 currently requires mandatory ratings for overall status,project development objectives, compliance with legal covenants, project management peformanceand availability of funds. The last Form 590 on record is dated August 15, 1989 and gives a w23rating to the project in each of these areas.

- 47 -

Table 3.10: BANK STAFF INPUTS BY FISCAL YEAR AND STAGE OF PROJECT CYCLE(In staff-weeks)

IBRD --------------------------- Stage of Project Cycle ---------------

fiscal Identification Appraisal toyear to appraisal negotiations Negotiations Supervision Other El Total

1977 3.9 0.1 4.01978 5.5 2.4 7.91979 3.6 2.9 6.51980 58.0 2.3 2.7 63.01981 44.9 27.9 11.3 1.3 10.5 95.91982 7.7 0.1 7.81983 7.3 2.0 9.31984 12.3 1.2 13.51985 9.7 2.4 12.11986 11.8 0.6 12.41987 16.6 1.4 18.01988 12.9 0.1 13.01989 8.8 1.0 9.81990 4.0 4.01991 12.0 12.0

Total 115.9 30.2 113 88.4 43.4 289.2

1l Including Project Implementation Review, Administration and Completion Report.