of the world for official
TRANSCRIPT
Document of The World Bank
FOR OFFICIAL USE ONLY
Report No: 43 198-LK
PROJECT PAPER
ON A
PROPOSED ADDITIONAL FINANCING CREDIT
IN THE AMOUNT OF SDR 6.1 MILLION (US$lO.O MILLION EQUIVALENT)
TO THE
DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA
FOR AN
EDUCATION SECTOR DEVELOPMENT PROJECT
May 6,2008
Human Development Unit South Asia Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. I t s contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY E Q U I V A L E N T S
(Exchange Rate Effect ive March 3 1,2008)
BOQs DTO EL4 EMP ESDFP ESDP ESSAF FM FMRs GOSL ICT ICTAD RQUE M I S M O E MPC NEC NEREC NIE NPA PEA PEQETS PSI SWAP TECs TSU
Currency Unit = Sri Lankan Rupees (LKR) LKR 1 = US$0.00927
U S $ 1 = SDR0.6073
F I S C A L YEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS
Bill o f Quantities Department o f Treasury Operations Environmental Impact Assessment Environmental Management Plan Education Sector Development Framework and Program Education Sector Development Project Environment and Social Screening Assessment Framework Financial Management Financial Monitoring Reports Government o f Sr i Lanka Information and Communications Technology Institute for Construction Training and Development Improving the Relevance and Quality o f Undergraduate Education Management Information System Ministry o f Education Major or Procurement Committee National Education Commission National Education Research and Evaluation Center National Institute o f Education National Procurement Agency Provincial Education Authorities Public Expenditure and Quality Education Tracking System Program for School Improvement Sector Wide Approach Technical Evaluation Committees Technical Support Unit
V ice President: Praful C. Pate1
Sector Di rector M icha l Rutkowski Sector Manager: Michel le Riboud
Task Team Leader: Harsha Aturupane
Country Director: Naoko Ishii
FOR OFFICIAL USE ONLY SRI LANKA
Additional Financing for the Education Sector Development Project
TABLE OF CONTENTS Page
I . Introduction ................................................................................................................................. 1
I1 . Background and Rationale for Additional Financing in the amount of US$lO.O million 1 Country Context ........................................................................................................................ 1
Sector Context ........................................................................................................................... 1
Project Description .................................................................................................................... 2
Implementation Performance .................................................................................................... 2 Justification for Additional Financing ...................................................................................... 3
A . B . C . D . E .
I11 . Proposed Changes and additions ........................................................................................... 4
I V . Consistency with CAS ............................................................................................................. 5
V . Appraisal of Scaled-up Project Activities ................................................................................. 5
A . Technical ................................................................................................................................... 5 B . Institutional and Implementation Arrangements ...................................................................... 5 C . Monitoring. Evaluation. Research and Studies ......................................................................... 6 D . Fiduciary and Safeguards Arrangements .................................................................................. 6
V I . Expected Results and Outcomes ............................................................................................ 7
VI1 . VI11 .
Benefits and Risks ................................................................................................................... 7
Financial Terms And Conditions For The Additional Financing .................................. 8
Annex 1: Allocation of the Proposed Additional Financing ........................................................... 9
Annex 2: Results Framework and Monitoring Indicators ............................................................ 10
Annex 3: Fiduciary Procedures and Processes .............................................................................. 16
Annex 4: Environmental and Social Screening and Assessment Framework ............................. 18
Annex 5: Documents in the Project Fi le ........................................................................................ 20
Annex 6: Project Preparation Team .............................................................................................. 21
Annex 7: Statement of Loans and Credits ...................................................................................... 22
This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties . I t s contents may not be otherwise disclosed without Wor ld Bank authorization .
Annex 8: Country at a Glance ......................................................................................................... 23
Annex 9: M a p ........................ ........................................................................................................... 26
SRI L A N K A
Source B ORROWERRECIPIENT
(IDA) International Development Association
ADDITIONAL FINANCING
FOR
THE EDUCATION SECTOR DEVELOPMENT PROJECT
PROJECT PAPER
SOUTH ASIA
SASHD
Local Foreign Total 0.00 0.00 0.00 8.00 2.00 10.00
Date: May 6, 2008 Country Director: Naoko Ishii Sector Director: Michal Rutkowski Manager: Michelle Riboud
Team Leader: Harsha Aturupane Sectors: Primary education (45%);Secondary education (45%);General public administration sector (5%);Adult literacyhon-formal education (5%) Themes: Education for all (P);Education for the knowledge economy ( S ) Environmental screening category: B. Partial Assessment
Project Financing Data
Project ID: P I 10278
Lending Instrument: Specific Investment Loan
[ ] Loan [XI Credit [ 3 Grant [ ] Guarantee [ ] Other:
Total:
For Loans/Credits/Others: Total Bank financing (US$m.): 10.00
8.00 2.00 10.00
Responsible Agency: Ministry of Education Isurupaya, Battaramulla, Sr i Lanka.
Provincial Councils c/o the Finance Commission, Kitulwatte Road, Colombo 08, Sr i Lanka
’Y 4nnual Zumulative
9 10 11 3.70 3.30 3.00 3.70 7.00 10.00
Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ] N o Project development objective Ref. PP 1.2. The proposed credit would support the Government of Sr i Lanka (GOSL) to expand activities that scale up the impact and development effectiveness of the Education Sector Development Project, with emphasis on the improvement of educational opportunities of children living in poor regions of the country. Project description [one-sentence summary of each component] Ref. PP ZZ. C. The scaled up activities w i l l contribute to greater impact on project outcomes across the four themes of the country’s Education Sector Development Framework and Program: (a) promoting equitable access to basic and secondary education, (b) improving education quality, (c) enhancing economic efficiency and equity o f resource allocation and distribution within the education system, and (d) strengthened education governance and service delivery. The Additional Financing w i l l increase the intensity of some activities, such as English as a second language and co-curricular activities among children of different communities; expand activities to more schools, such as increasing the number of schools with Information and Communications Technology (ICT) equipment and libraries; and introduce novel initiatives, such as the expansion of English medium education for arts and commerce students in secondary grades, and multi-cultural reviews o f the civics and history curricula. The main focus of all these activities wi l l be on poor schools located in rural, estate and conflict affected areas.
Which safeguard policies are triggered, i f any? Safeguard policy on Environmental Assessment (OP/BP 4.01) Significant, non-standard conditions, if any, for: Board presentation: None. Loadcredit effectiveness: None.
Covenants applicable to project implementation: All covenants similar to and harmonized with the original grant agreement. The following obligations are ongoing:
General imvlementation. The ESD Project wi l l be implemented at the Central level by the national Ministry of Education supported by national level institutions including NEC and NE. At the Provincial level the Project w i l l be implemented by the Ministries of Education in the Provincial Councils supported by the central government agencies including the MOE, NEC, NE and Finance Commission. The Ministry o f Finance and Planning (in respect of the overall education budget) and the Finance Commission (in respect of the provincial education budgets) wi l l exercise oversight functions with regard to public expenditures and service delivery in the education system.
The government wi l l maintain a Steering Committee, chaired by the Secretary, Ministry o f Education, with representation from the Ministries of Education in the Provincial Councils, the Ministry o f Finance and Planning, the Finance Commission and the National Education Commission. The IDA wi l l be invited to provide a representative to attend all meetings of the Steering Committee.
Basic and secondarv education budnet covenant. The Ministry of Finance and Planning and the Finance Commission, on behalf of the Government, w i l l maintain public expenditure on basic and secondary education to at least the baseline level of expenditure in 2004 in real terms. The Government w i l l maintain key demand side incentives in public schools, in particular tuition free education and the free textbook program, to promote school attendance and quality.
Annual uvdatinn of the ESDFP rolling vlan. The Ministry of Education, the Finance Commission and each Provincial Education Ministry w i l l submit their respective draft Annual ESDFP rolling plans annually to IDA for comments by May 15 of each year. The Ministry of Education in consultation with the Ministry of Finance and Planning, the Finance Commission and the Provincial Education Ministr ies w i l l also submit the draft of the overall ESDFP rolling plan annually to IDA for comments by September 15 o f each year.
Monitoring and evaluation, and the mid-term review. The Ministry o f Education, the Provincial Education Ministries through the Finance Commission, the Ministry of Finance and Planning, and the National Education Commission, wi l l carry out an annual review of the ESDFP and the ESD Project providing evidence o f progress in accordance with the Annual Implementation Plan or on performance and monitoring indicators agreed with IDA. In addition, these agencies w i l l undertake monitoring, evaluation,
research and studies, on relevant education topics and themes, in accordance with their obligations under the relevant Annual Rolling Plan and at other times as agreed with IDA. A mid-term review of the ESD Project w i l l be conducted prior to December 3 1,2008 or such later date to be agreed with IDA.
Financial covenant. The Ministry of Education, and the Provincial Education Ministries under the oversight of the Finance Commission, w i l l ensure that: (a) satisfactory financial management arrangements including financial records are maintained; (b) six monthly financial management reports are submitted to the IDA no later than 45 days following the end o f the reporting period; and (c) audit reports are made available within 6 months after the end of the government fiscal year.
The Finance Commission w i l l appoint within thirty days from effectiveness of the Project and retain throughout project implementation a financial management specialist as part of the overall strengthening o f the Finance Commission to monitor the performance of the provinces.
Environmental and social covenant. The Ministry o f Education and the Provincial Education Ministries w i l l implement, in a manner satisfactory to IDA, the environmental and social assessment framework prepared for the Project.
I. INTRODUCTION
1. This Project Paper seeks the approval o f the Executive Directors to provide a proposed credit to the Democratic Socialist Republic o f Sri Lanka in the amount o f SDR 6.1 mil l ion (US$lO.O mill ion equivalent) for providing additional financing to the Education Sector Development Project (ESDP) (Grant number H196-CE).
2. The proposed credit would support the Government o f Sr i Lanka (GOSL) to expand activities that scale up the impact and development effectiveness o f the Education Sector Development Project. The scaled up activities w i l l contribute to greater impact on project outcomes across the four themes o f the country’s Education Sector Development Framework and Program.
11. AMOUNT OF US$lO.O MILLION
BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING IN THE
3. On December 15, 2005, Board approved an IDA Grant o f SDR 41.5 mil l ion (US$60.0 mill ion equivalent) for the Sri Lanka Education Sector Development Project. The project became effective on February 21,2006 and i s expected to be completed by June 30,201 1.
A. Country Context
4. The Sri Lankan economy has been expanding relatively strongly in the recent past, with an average annual growth rate in excess o f five percent during the last few years. The Government has published a policy statement for national development which seeks to promote equitable, broad-based economic development through investment in infrastructure and human capital, with special emphasis on lagging regions. However, the long-running conflict has hampered Sri Lanka from realizing i t s full economic potential, and the country could develop substantially faster if a long-term and sustainable resolution to the conflict could be achieved. The education system has an important role to play, in this context, through policies that improve the economic opportunities o f children and youth l iving in poor households and lagging regions, and promote a multi-cultural and multi-ethnic society.
B. Sector Context
5. During 2006 GOSL introduced an innovative and path-breaking Education Sector Development Framework and Program (ESDFP) wi th the over-arching goals of: (a) promoting equitable access to basic education (grades 1-9) and secondary education (grades 10-13); (b) improving the quality o f education; (c) enhancing the economic efficiency and equity o f resource allocation and distribution within the education system; and (d) strengthening education governance and service delivery. Implementation o f the overall ESDFP since commencement has been proceeding well. The organizational structures o f the national Ministry o f Education (MOE) and the provincial Ministries and Departments o f Education have been revised and aligned with the four objectives o f the program. A detailed performance framework has been developed for the ESDFP, and the capability o f the national and provincial education agencies to use this framework for planning, budgeting and monitoring has clearly strengthened in the past two years. There i s also strong interest and support for the ESDFP from the highest executive and legislative levels, such as the Minister o f Education in the center, and the Governors and Chief Ministers in the Provinces.
6. Within the overall framework o f the ESDFP, the M O E proposes to scale up support for activities that w i l l strengthen the education system and promote a favorable environment for a multi-cultural and multi-ethnic society. Strategic activities to achieve these objectives include: (a) promoting English language ski l ls , both to improve the economic opportunities of children in poor areas and as a link language between Sinhalese and Tamil children; (b) promoting a multi-cultural and multi-ethnic society ”
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through the school curriculum, especially the subjects o f civics and history; (c) strengthening the capability o f teachers to manage and teach in a multi-cultural and multi-ethnic environment through relevant staff development programs; (d) promoting co-curricular activities among children o f different cultural and ethnic backgrounds; (e) reducing regional disparities in higher order learning spaces and assets such as school Information and Communications Technology (ICT) centers and library resource centers; and (0 attending to basic requirements o f school children, including the provision o f water and sanitation facilities in rural, estate and conflict-affected schools.
7. GOSL has been increasing the allocation o f resources for general education. In 2005, when the ESDFP was under preparation, the projected budget for general education in 2008 was about 61 bil l ion rupees (approximately US$ 600 million). However, the actual allocation for 2008 was about 88 bil l ion rupees (approximately US$ 830 million), which i s a considerable increase over the amount originally projected. The larger budget for general education i s expected to continue into the future, within the Government’s medium-term budget framework. In this context, GOSL has requested IDA, too, to scale- up support for the ESDFP.
C. Project Description
8. The additional credit w i l l expand activities that scale up the impact and development effectiveness o f the ESDP. The development objectives are the same as the original ESDP: (a) promoting equitable access to basic education (grades 1-9) and secondary education (grades 10-13); (b) improving the quality o f education; (c) enhancing the economic efficiency and equity o f resource allocation and distribution within the education system; and (d) strengthening education governance and service delivery. The lending instrument w i l l be a Specific Investment Credit using a sector-wide programmatic approach (SWAP) and financed by an IDA credit. The additional financing w i l l supplement the budgets o f the national and provincial Ministries o f Education, and funds wi l l be released in line with the tranche releases o f the ESDP. The additional credit w i l l increase the intensity o f some activities, such as English as a second language and co-curricular activities among children o f different communities; expand activities to more schools, such as increasing the number o f schools with higher-order spaces and assets such as ICT centers and libraries, and essential facilities such as water and sanitation; and introduce novel initiatives, such as the expansion o f Bilingual (English medium) education for arts and commerce students in secondary grades, and multi-cultural reviews o f the civics and history curricula.
9. The provision o f higher-order spaces and assets such as ICT equipment and libraries, and essential facilities such as water and sanitation, w i l l be targeted at Category 2 schools (grades 1-1 1) and Category 3 schools (grades 1-5). These types o f schools are attended by children from poorer households. Children from wealthy households attend National schools, and in the interests o f equity resources under the additional financing for higher-order spaces and assets and for essential facilities w i l l cover only Category 2 and Category 3 schools. However, some o f the scaled-up activities, such as the fine tuning of civics and history curriculum material to promote inter-cultural understanding, are public goods in the education system, and w i l l benefit all schools in the country.
D. Implementation Performance
10. The ESDP has made strong progress since the release o f the f i r s t tranche o f funds in April 2006. The performance o f al l project themes i s rated as satisfactory. Disbursement i s at 39 percent, procurement and financial management performance are assessed as satisfactory, and the internal audit system o f the M O E i s being strengthened under the project. It i s expected that the development objectives w i l l be fully met.
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11. Achievement of Results to Date. In the past two years about 20,000 out-of-school children in the age range 6-14 years have been brought into the education system, and the survival rate has risen from the baseline value o f 78 percent up to 83 percent. The ESDFP has a range o f interventions to meet the needs o f young people whose education was interrupted because o f conflict related circumstances. I t i s particularly commendable therefore that, despite recent disruptions to local communities, the Northern and Eastern Provinces were able to bring back into the education system nearly three times as many children as were targeted under the ESDFP for 2006 and 2007.
12. The curriculum reforms to improve the cognitive s k i l l s o f children, especially in subjects o f economic and cultural importance, such as English, Sinhala and Tamil, mathematics, science, IT, civics and history, have been introduced from 2007 onwards; and curriculum revisions, textbook distribution, continuing teacher education, and the development o f the examination system, are proceeding on schedule. The national and provincial Ministries o f Education are beginning to use results o f student learning achievements to inform planning and implementation. For example, based on results o f the grade 4 national assessment, provinces are now targeting efforts to address the learning needs o f low performing schools, especially in rural and estate areas. Information on cognitive achievement in f i rs t language (Sinhala and Tamil), science and mathematics has also been collected, for each province, for grades 8 and 10. This information w i l l provide a baseline for cognitive achievement levels for secondary education and w i l l inform planning strategies for school improvement in subsequent years o f ESDFP implementation. These initiatives, and the targeting o f resources to rural and estate schools are expected to contribute to achieving the ESDFP targets for improved student learning outcomes.
13. The education sector has been the pioneer in the development o f a performance based budget in Sri Lanka. As o f January 2006 less than 20 percent o f the capital budget was allocated for higher-order spaces and assets, such as ICT centers, libraries and science laboratories. This has risen considerably under the ESDFP, and the initial 2007 target o f 32 percent has been exceeded, with 35 percent o f the capital budget allocated for higher order spaces and assets in 2007.
14. The national and provincial education systems have introduced a new organizational structure, aligned with the themes o f the ESDFP. This organizational structure i s now being established in the lower tiers o f the decentralized education system, the zonal and divisional levels. A human resource development plan for the provincial education systems, reflecting the new organizational structure, has also been prepared.
15. A Program for School Improvement (PSI), that allows local communities to play a role in school management and encourages school based teacher development, i s being pilot tested. The model has been set up in all 18 zones planned for 2006 and 2007. If the pilot i s successful, i t i s expected that the program w i l l be expanded to at least 42 zones (50 percent o f al l zones) by 2011.
E. Justification for Additional Financing
16. The Bank places strategic emphasis on enhancing human development, increasing growth, reducing poverty and promoting social harmony in Sri Lanka. The activities proposed for additional financing have the potential to make an important contribution to the long-term development of the country. The Bank i s an important donor in education, and the provision o f an additional credit by the Bank to improve the educational opportunities o f children l iving in poor rural, estate and conflict affected regions, and to promote social cohesion, would send a positive signal o f the Bank’s commitment to equitable development and social harmony to the government, c iv i l society and other development partners in Sr i Lanka
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111. PROPOSED CHANGES A N D ADDITIONS
17. There w i l l be no changes to the development objectives and implementation arrangements o f GOSL’s ESDFP, and the ESDP through which the Bank assists the Government’s program. The scaled- up activities to be supported under the additional credit are expected to complete by the present closing date o f the project, and there w i l l also be no need to extend the project’s life.
18. components o f the additional credit, under the four themes o f the ESDP wi l l be as follows.
The additional US$lO.O mill ion Credit w i l l support an expansion o f ESDP activities. The specific
Theme One: Promoting equitable access to basic education (grades 1-9) and secondary education (grades 10-13). Under this theme, support w i l l be provided for two key initiatives:
I. Developing and imulementing a master plan for Bilingual (English medium) education. During the period 2009-2011 at least 1,000 schools w i l l offer students in the secondary education cycle the option o f studying some subjects, such as mathematics, science, history and civics, in the English medium. The master plan w i l l cover teacher education and training, the development o f curriculum material and textbooks, the provision o f learning aids, and the establishment o f a separate administrative unit, for Bilingual Education.
11. Exuanding the number o f Category 2 and Category 3 schools with safe drinking water and clean sanitation. supported by a urocess o f certifying schools as health promoting schools. This process w i l l include a package o f school health inspections, provision o f resource material on school health and nutrition, and the establishment o f school health centers. At least 750 Category 2 and Category 3 schools, across all provinces, w i l l receive support to be certified as health promoting schools.
Theme Two: Improving the Quality of Basic and Secondary Education. Under this theme, two major initiatives w i l l be assisted:
111. Increasing support for the development o f English as a second language. The additional financing w i l l help to expand the training o f English teachers, and increase the availability o f English language learning material for school children. The cognitive achievement levels o f English as a second language w i l l also be monitored through National Assessments o f Learning Outcomes.
IV. Improving the curriculum material in civics and history to uromote a multi-ethnic and multi- cultural society. The additional financing w i l l assist in the review o f the civics and history curricula, by multi-ethnic and multi-cultural review committees, to help promote inter-ethnic trust and respect for cultural diversity. Revised curriculum material w i l l be produced, based on the reviews, and made available to all secondary schools.
Theme Three. Enhancing the Economic Efficiency and Equity of Resource Allocation and Distribution.
V. The additional financing, under this theme. w i l l increase the resources available for higher-order assets and suaces, such as ICT eauiument and centers, and library eauiument and material, in Category 2 and Category 3 schools. The ICT equipment w i l l provide learning aids for ICT based education, as well as enable children to acquire ICT s k i l l s that are in demand in the labor market. The library development program wi l l include book-based language enrichment, attractive reading comers / rooms for medium- sized schools, books and book cupboards for s m a l l schools, the provision o f book bags for very small schools, and promotion of reading camps and reading clubs.
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Theme Four. Strengthening Education Governance and Service Delivery. Under the theme, the additional financing w i l l support three key initiatives:
VI. Promoting multi-ethnic teacher education and training urogram. Teachers from different ethnic and cultural backgrounds w i l l follow teacher education and training programs jointly, in subjects such as English as a second language and ICT, and in Bilingual education programs. The network o f Teacher Centers available across the country w i l l provide the focus o f th is initiative.
VII. Human resource develoument o f civics and history curriculum develouers. The sk i l l s o f curriculum development specialists w i l l be strengthened, through a structured human resource development plan, in the development o f curriculum material that promotes inter-ethnic trust and respect for diversity, especially in the subjects o f civics and history.
IX. Promotion o f co-curricular activities among children o f different ethnic communities. This initiative w i l l promote a range o f activities, such as exchange programs, literary and drama festivals, and games and sports, among students from different ethnic and cultural backgrounds in different parts of the country.
IV. CONSISTENCY WITH CAS
19. The Country Assistance Strategy (CAS) under preparation places strategic emphasis on addressing causes o f the conflict and also mitigating the consequences. The proposed additional credit constitutes an important operation to address both the causes and consequences o f the conflict. The Bank i s the leading donor in education, and the provision o f an additional credit by the Bank to promote social cohesion through education w i l l provide a positive signal o f the Bank's commitment to a lasting resolution to the conflict, both to government and c iv i l society in Sr i Lanka and to the other development partners.
V. APPRAISAL OF SCALED-UP PROJECT ACTIVITIES
A. Technical
20. The additional credit seeks to scale-up activities supported through the ESDP, which was based on a strong analytical foundation, the Bank's Sri Lanka Education Sector Report 2005, as well as international experience o f Bank funded programs in a number o f countries in Asia and other parts o f the world. The ESDP has performed well in the f i r s t two years o f implementation, with satisfactory progress under al l the four major themes. The proposed scaled-up activities under the additional credit have also been identified and developed consultatively between the MOE, the Provincial Education Authorities, the Ministry o f Finance and Planning, and the FC. The additional credit w i l l be planned and coordinated at the national level by the Planning and Performance Review Division o f the MOE, while implementation w i l l be led by the relevant technical units o f the MOE, such as English and English Medium Education, Library Development, ICT, Teacher Education and Training, and School Health. These units have provided strong technical leadership to the program in the past, and have adequate technical capacity to lead the scaled-up activities. Resources for technical assistance are also available, under the additional credit, for the national and provincial education authorities, if needed.
B. Institutional and Implementation Arrangements
21. The scaled-up activities under the additional credit w i l l follow the same institutional and implementation arrangements as the parent ESDP. The Ministry o f Education, including i t s sub-agencies such as the National Institute o f Education (NE) and the Education Publications Department (EPD), w i l l
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manage and implement activities at the national level, as well as undertake strategy development and oversight o f the overall Credit. The provincial Ministries o f Education w i l l manage and implement activities at the provincial level. The Ministry o f Finance and Planning and the Finance Commission w i l l be involved in the management and monitoring o f the additional credit through their role in the allocation o f public funds for the education sector. In addition, under the education support provided by the Bank for organizational strengthening o f the provincial and sub-provincial level education systems, the institutional capacity to implement the education sector program has been strengthened through the establishment o f a Technical Support Unit (TSU) in the Finance Commission. This unit has s k i l l s in governance and monitoring, education planning, education management, public expenditure management, and procurement, and wil l provide technical and managerial support to strengthen the Provincial Councils, especially for planning, budgeting, management and monitoring. The performance o f the national and provincial Ministries o f Education, the Ministry o f Finance and Planning and the Finance Commission in the management and implementation o f the parent ESDP has been satisfactory, and these organizations have the managerial capacity to implement the scaled-up activities under the additional credit.
C. Monitoring, Evaluation, Research and Studies
22. The additional credit w i l l replicate the mechanisms for monitoring, evaluation, research and studies under the parent ESDP. A results framework for the key activities to be supported under the additional credit has been developed (see Annex 2), and w i l l be monitored during implementation. The Steering Committee chaired by the Secretary o f the MOE and containing the heads o f all the key policy and implementation agencies w i l l be responsible for the overall national level monitoring o f the program. The F C with the assistance o f the TSU, w i l l monitor the program at the provincial levels in relation to the allocation o f resources to the Provincial Councils. The TSU wi l l pay special attention to monitoring the implementation o f the program in the conflict affected areas. Independent evaluations, research and studies w i l l be contracted out to research institutions, such as the National Education Research and Evaluation Center (NEREC), the NE, universities and private research f i rms. Given the security situation in the conflict affected parts o f the country, the assistance o f independent third parties w i l l be sought to carry out reviews in areas that are difficult to access. The additional credit w i l l also support policy research in the priority areas for the operation.
D. Fiduciary and Safeguards Arrangements
23. The additional credit w i l l replicate the procurement, financial management, disbursement, environmental and social arrangements as the parent ESDP. In addition, the project implementation documents contain a governance and fiduciary strengthening plan for the additional credit. This w i l l be followed up during project supervision and reported in implementation status reports.
24. Procurement. The thresholds for various methods o f procurement and prior and post-review by IDA for the ESDP w i l l also be used for the scaled-up activities under the additional credit. The major and minor procurement committees established by the national and provincial education agencies for the ESDP w i l l be utilized for the additional credit. In addition, the M O E has established a procurement cell to assist in procurement planning, implementation and monitoring. The Finance Commission’s TSU has procurement ski l ls , and in collaboration with the procurement cell w i l l strengthen the procurement management capacity o f the provincial levels under the program.
25. Financial Management and Disbursements. The financial management and disbursement arrangements for the ESDP wi l l also apply to the additional credit. The Government w i l l use the same two Special Accounts as for the ESDP, one for the national level and the other for the provincial level, and the flow o f funds wi l l follow the same process as the ESDP. The Ministry o f Finance w i l l report expenditures, using the same Financial Management Reports (FMRs) developed for the ESDP. The
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Department o f Treasury Operations (DTO) w i l l consolidate the MOE financial reports, and the FC wi l l consolidate the provincial financial reports, which w i l l then be submitted by the D T O to IDA once in six months, for twice yearly disbursements. Under the additional credit, the Bank w i l l also support the strengthening o f the internal audit system o f the MOE. The additional credit w i l l be available to support al l activities in the education sector at both the central and provincial levels except: (a) personal emoluments o f government officials, (b) purchase o f school uniforms, (c) land acquisition, (d) higher education, and (e) expenditures financed by non-pooling development partners. The report based disbursement method w i l l be used.
26. Environment. Considering the scope o f the additional credit, activities with potential for significant environmental or social impacts are not anticipated. The only activities that may result in some environmental impact are construction o f school buildings, such as ICT centers, libraries and water and sanitation facilities. The environmental safeguard policies developed specifically for the ESDP wi l l apply to the additional credit, too. Site selection, design, contracting, monitoring, evaluation o f sub-projects and the preparation of the safeguard analysis in accordance with the Environmental and Social Screening Assessment Framework (ESSAF) w i l l be undertaken by the respective education agencies at the national and provincial levels. The detailed ESSAF i s given in Annex 4.
27. Although environmental expertise in the Ministry o f Education and Provincial Education Authorities i s limited, the training conducted by the ESDP for engineers employed by these authorities has improved capacity and would provide an adequate basis to fulfill the environmental safeguard requirements o f the proposed additional financing Credit.
28. Social: The project i s expected to have significant positive and no negative social impact. I t has been agreed with the Government o f Sri Lanka (GOSL) that no land acquisition w i l l be financed under the credit and that new school ICT centers, library resource centers, and water and sanitation facilities w i l l only be provided on existing school lands.
VI. EXPECTED RESULTS AND OUTCOMES
29. The additional resources provided through the credit w i l l expand the set o f results to be achieved, in both technical and policy dimensions. The key extra results and outcomes that are expected to be achieved during implementation are: (a) improved cognitive achievement scores in English language in the primary education cycle; (b) policy development for the expansion o f English medium education; (c) the establishment o f baseline indicators o f cognitive achievement in English language in the secondary education cycle; (d) review and further development o f the civics and history curriculum by multi-ethnic and multi-cultural committees; (e) preparation and implementation o f a human resource development program for civics and history curriculum developers in the preparation o f curriculum material to promote a multi-ethnic and multi-cultural society; (f) implementation o f multi-ethnic teacher education and training programs; (g) promotion o f co-curricular activities among children o f different ethnic communities; and (h) increased allocation o f resources for higher order learning spaces and assets such as ICT equipment and library material, and for essential school facilities, such as water and sanitation, in poor schools in rural, estate and conflict affected areas. The detailed results framework i s in Annex 2.
VII. BENEFITS AND RISKS
30. The proposed additional credit has the potential to generate several economic and social benefits. The improvement o f English language s k i l l s w i l l enhance economic opportunities o f educated individuals in both national and international labor markets. In addition, English constitutes the link language between Sinhalese and Tamil speaking children, and w i l l facilitate communication between the two ethnic groups. Regular reviews of the curriculum by multi-ethnic and multi-cultural reviewers w i l l help to
7
reduce material that may cause hurt to different ethnic or cultural groups, and also contribute to the development o f a curriculum that presents a multi-ethnic and multi-cultural society as desirable and a favorable characteristic o f modem times. The expansion o f multi-ethnic and multi-cultural activities in the education system wi l l improve interaction, mutual understanding and relationships among school children and teachers from different backgrounds. The increase in higher order learning spaces and assets, such as ICT centers and libraries, as well as in essential facilities such as water and sanitation, in poor schools w i l l reduce disparities and promote equity in the education system.
31. Some o f the proposed activities entail implementation risks. In particular, groups opposed to an equitable, multi-ethnic and multi-cultural society may obstruct activities to promote the interaction of children and teachers from different ethnic or cultural backgrounds. The potential risks, mitigation measures and risk assessment rating are given in the Table below.
Risks
Restriction o f activities which seek to promote social harmony among different ethnic and cultural communities by extremist groups.
Limited oversight and monitoring in the conflict- affected areas.
Additional funds may not be released on time.
The organizational arrangements of the M O E may not be adequate to manage the procurement cell efficiently.
Overall Risk Rating
Risk Rating Prior to Mitigation
S
S
M
M
Risk Mitigation Measures
There i s strong Government commitment for the activities supported by the additional financing. The official policy statement o f the President, and the Education Policy Document o f the National Education Commission, note the importance o f education as a tool to promote social harmony. The Peace Education Unit o f the M O E actively works with NGOs and local community based organizations to promote the concept of social harmony in education.
Finance Commission has officers to carry out independent reviews o f the activities in the conflict affected areas. Independent partners w i l l also be added to IDA’S supervision team to carry out reviews in these areas. The financial management and disbursement arrangements for the ESDP wi l l be closely monitored by the Ministry o f Finance and Planning and the FC.
The M O E has appointed a full-time Senior Assistant Secretary as head o f the procurement cell.
Risk Rating: H (High); S (Substantial); M (Modest); N (Negligible).
Risk Rating After Mitigation
M
M
N
N
M
VIII.
32.
FINANCIAL TERMS AND CONDITIONS FOR THE ADDITIONAL FINANCING
The additional financing w i l l be on the standard IDA credit terms applicable for S r i Lanka.
8
Annex 1: Allocation of the Proposed Additional Financing
S R I LANKA: Additional Financing for the Education Sector Development Project
Institution/ Province
Ministry o f Education NIE Western
Allocated amount (Rupees Million) 200819 2010 2011 Total
60 60 40 160 35 35 30 100 20 20 20 60
(2008-201 1)
Central Southern North Western Northern
I Eastern I 80 I 60 I 60 I 200 I
20 20 20 60 20 20 20 60 30 30 20 80 80 60 60 200
North Central Uva
30 30 20 80 30 30 20 80
9
Sabaragamuwa Finance Commission and Ministry o f Finance and Planning Grand Total
20 20 20 60 10 10
425 385 340 1,150
Annex 2: Results Framework and Monitoring Indicators S R I LANKA: Additional Financing for the Education Sector Development Project
The set of results and performance indicators o f the ESDP w i l l be expanded under the additional credit, to take account o f the scaled-up activities. The monitoring and evaluation activities w i l l focus on inputs, processes, results and outcomes. The monitoring activities w i l l be undertaken chiefly by government agencies, such as the Ministry o f Education, the Finance Commission, Provincial Councils and the National Institute o f Education (NE). Evaluation activities w i l l normally be contracted out to independent research agencies, such as the National Education Research and Evaluation Center (NEREC) and private consulting f i r m s . Policy research w i l l be conducted mainly with the assistance o f specialized research agencies, such as the universities, NEREC and the NE.
The ESDFP monitoring committee under the Secretary, Ministry o f Education w i l l also monitor the progress o f the scaled-up activities under the additional credit. The Additional Secretaries, Director- General NE, the Commissioner-General o f the Department o f Examinations, the Commissioner-General o f the Department o f Education Publications, the Faculties and Departments o f Education o f the Universities, and the Finance Commission are represented on this monitoring committee. The Finance Commission, under the leadership o f the Chairman, FC, monitors budget execution and the implementation o f the ESDFP plans by the Provincial Councils. The Ministry o f Finance and Planning and the Ministry o f Education are represented on th i s monitoring committee in the FC. At the provincial level, there i s a Provincial operational committee, chaired by the Chief Secretary o f the Province, which monitors and facilitates the implementation o f the program. The implementation o f the scaled-up activities at provincial levels w i l l be monitored at the Finance Commission level in terms o f budget execution and implementation o f the overall provincial plans. Within each Province, the Provincial operational committee chaired by the Chief Secretary w i l l monitor and facilitate the implementation o f the scaled-up activities, too.
The main results and performance monitoring indicators for the Additional Financing are given in the Table overleaf.
10
1 3 0 N
a .3
a Q .3
3 3
h
Y z
3
w g z w : I E&) E a a
3
4 !i
z e
c
8k
3 cd a
3 8 i E e
rl 0 N
El 0 N
l z I
51 I
Annex 3: Fiduciary Procedures and Processes
S R I LANKA: Additional Financing for the Education Sector Development Project
A. Financial Management and Disbursement
1. The financial management (FM) and disbursement arrangements o f the on-going ESDP wi l l be replicated for the additional credit. The overall project FM risk i s “Substantial” due to the inherent risks o f a SWAP operation. The risk mitigation measures o f the ESDP wi l l also apply to the additional credit including: (i) tracking public expenditures via the government system, (ii) pilot testing a school based management system with enhanced transparency o f school activities to the parents and public and bottom up communication channels, (iii) enhancing asset management systems in the education sector, (iv) transforming the internal audit units to carry out more performance-based audits, and (v) enhancing the oversight o f the M o E and FC.
2. also be sought to carry out reviews in areas that are difficult to access.
IDA wi l l carry out risk-based supervision o f FM activities. The assistance o f third parties w i l l
3. Two Special Dollar Accounts are currently been operated under the ESDP - a Central Special Dollar Account and a Provincial Special Dollar Account. These same accounts w i l l be used to deposit the proceeds o f the additional credit.
4. At present, two Financial Monitoring Reports are prepared, one for the Central Special Dollar Account and one for the Provincial Special Dollar Account. Central FMRs include all expenditures incurred under the GOSL budget o f MOE, EPD, Examinations, and NE. Provincial FMRs include expenditures incurred by al l of the Provinces under the education sector. Funds are fungible and IDA- funded expenditures are not identified separately. However, some expenditures are identified as ineligible for IDA financing (e.g. salaries) and they are shown separately in the FMRs. I t w i l l also not possible to identify separately the expenditures incurred using the additional financing. The additional credit w i l l be shown as a separate source o f funds in both the Central FMRs and Provincial FMRs currently being prepared for ESDG. Expenditures w i l l be recorded against the combined sources of funds. FMRs are submitted to IDA within 45 days after the end o f every 6 months. There w i l l be no changes to the responsibilities assigned to prepare the FMRs under ESDG.
The report-based disbursement method w i l l be used. The additional credit w i l l be available to support all activities in the education sector at both the central and provincial levels except: a) personal emoluments o f government officials, b) purchase o f school uniforms, c) land acquisition, d) higher education, and e) expenditures financed by non-pooling development partners. All triggerskonditions applicable for the releases o f tranches under ESDG also apply to the additional financing. These triggerskonditions are that: (i) on an annual basis, the project meets the monitorable indicators as specified in the PAD; and (ii) on a bi-annual basis and based on the FMRs submitted, the eligible expenditures w i l l exceed the amount o f the previous Tranche released. These w i l l be confirmed by the Task Team Leader, prior to the release o f the next Tranche.
5. A TOR has been agreed with the Auditor General o f Sri Lanka for the ESDP. The same TOR applies for the additional financing because combined audit reports for both the ESDP and additional credit w i l l be prepared. Two audit reports are currently prepared for the ESDP; one for the activities under the central component and the other for the provincial component. The audit report consists o f an opinion on the accuracy and completeness o f the FMRs and a management letter extracting key observations from the individual management letters prepared for each relevant appropriation account. Whilst there are no overdue audit reports under ESDP, there were significant delays in getting the audit reports during
16
2007, the f i r s t year o f project implementation. There i s commitment from the government to submit timely audit reports going forward.
B. Procurement
6. The procurement systems for the ESDP wi l l be replicated for the additional credit. The Procurement Cell established in the MOE under ESDP has contributed significantly to improve procurement service delivery. However, i t there i s a need to further strengthen i t s operations through better internal control and management, in order to be more adept in expediting the increasing procurement processing that the unit needs to handle. Staffing o f the unit and precise delegation o f duties to such staff needs to be looked at closely; and additional credit w i l l provide assistance to the newly appointed Head o f the Cell in t h i s activity. The additional credit w i l l also support strengthening o f the procurement cell with further training, where required.
7. The Project w i l l continue to rely on the country systems for both National Shopping and National Competitive Bidding, to the extent applicable. However, any changes to the current guidelines which the government enforces and that the Bank considers undesirable from a transparency, economy and/or efficiency perspective, may result in the revision o f the project's reliance on the country systems.
8. additional credit and agreed to address them as given below:
The Bank has briefed both the M O E and the F C o f the procurement requirements for the
(a) Projects should demonstrate that they have adequate procurement capacity at start-up (with at least one person with procurement certification). Currently, the MOE has one oficial with procurement certijkation, and another who is expected to receive CertiJication by June 2008, in the Procurement Cell. The MOE and the Finance Commission have engaged the services of an Engineer/ Procurement each, to assist particularly in the management of procurement contracts in works and goods. The Engineers / Procurement Specialists in the FC and the MOE will closely monitor all major procurement and are required to advise and liaise with the provincial staff engaging in procurement. They will also review all procurement documents prior to forwarding them to the Bank for clearance.
(b) Projects should have a well-functioning and well advertised complaint mechanism (that includes the ability to get a hearing from an independent entity). The current Government Guidelines allows for complaints to be dealt with through a committee headed by the Secretary to the Ministry in the case of the procurement done by the Central Ministry and by the Chief Secretary of the Provincial Council in the case of the procurement done in the provinces. The mechanisms will deal with complaints.
(c) All projects should have a system for capturing information on all contracts signed in the project and that information should be published on a web-site; The MOE and Provincial Councils already have websites, and some already post this information. It was agreed that all Provinces will post their procurement information on their own website.
(d) review once a year.
The procurement under the ESDP and the additional credit w i l l be subject to a stakeholders
9. Procurement Manual 2006, w i l l be adhered to under the project.
Financial authority levels for procurement decisions, provided in the Government o f Sri Lanka
10. GOSL's Procurement Manual, 2006.
Procurement committees w i l l be appointed for the respective financial levels, in accordance with
17
Annex 4: Environmental and Social Screening and Assessment Framework
S R I LANKA: Additional Financing for the Education Sector Development Project
Environment
1. Projects and programs financed with IDA resources need to comply with World Bank Operational Policies. Therefore, activities eligible for funding under the additional Financing w i l l be required to satisfy the World Bank‘s safeguard policies, in addition to conformity with environmental legislation o f the Government o f Sr i Lanka (GOSL). During the preparation o f the ESDP, an Environmental and Social Safeguards Assessment Framework (ESSAF) was prepared, which outlines the environmental and other safeguard requirements that the sub-projects funded under ESDP need to comply with. These guidelines contained in the ESSAF wi l l also be applicable to the proposed additional credit.
2. Considering the scope o f the education sector program, i t i s unlikely that there w i l l be any significant and irreversible environmental impacts as a result o f program activities. However, since the program w i l l finance the construction o f new school buildings and renovation o f existing school buildings, there may be potential for certain construction related on-site environmental issues such as debris-disposal, air pollution etc which need to be managed. These would be rather minor issues in view o f the facts that (a) no construction w i l l take place in environmentally sensitive areas and (b) all construction w i l l take place on existing school lands. In addition, extraction o f natural material such as sand, rubble has the potential to cause off-site environmental impacts if harvested unsustainably. Considering the scattered nature o f construction anticipated under the project, it i s not expected that this wi l l cause significant accumulated environmental damage. In light o f the potential environmental impacts the proposed project could give rise to, the additional credit has been assigned an Environmental Category o f “B”.
3. The safeguard screening and mitigation process for the additional credit w i l l mainly include an environmental checklist to be filled for sites where a new building or an expansion in the footprint o f an existing building i s planned. The environmental checklist also includes provisions for a site-specific Environmental Management Plan (EMP). With regard to renovations o f existing school buildings, a simplified checklist and adherence to existing building codes and best practices during construction would be adequate. I t i s required that the checklists and EMPs are completed prior to awarding the contracts for civi l construction. The ESSAF also recommends that the Tendermidding Documents for the building constructiodrenovation should include clauses on environmentlother safeguards to ensure that the contractors implement the mitigation measures contained in the EMP as well. A general set o f safeguard conditions to be included in the contract documents i s provided in the ESSAF. In addition, i t i s recommended that the contract documents contain clauses on ICTAD specifications and building codes accepted in Sri Lanka which reflect good environmental practices.
4. If any land-filling i s required for site preparation such as the filling o f low lying lands, wetlands and marshes, a full Environmental Impact Assessment (EIA) wi l l need to be carried out prior to financing the civi l works depending on the extent o f filling. I f an EIA i s justified, IDA approval o f the EIA w i l l be a condition for fund disbursements. In addition, if any site i s to be located within an environmentally sensitive area as identified in Item 41 o f the Environmental Checklist, the Implementing Agencies w i l l be required to undertake a full EIA and obtain the clearance from the Central Environmental Authority o f Sri Lanka and IDA prior to commencing any activities in these locations. Land acquisition under the new credit i s not envisaged. However, if the need arises for acquisition o f new land the implementing agencies w i l l need to comply with ESSAF and carry out the required documentation. I f the program does not fund any activity in any o f the sensitive areas identified in the checklist (as mentioned above), the Government
18
o f Sri Lanka w i l l not require environmental assessments for proposed program activities under i t s environmental legislation.
5. In terms o f social impacts, the project i s expected to have significant positive and no negative social impact. The project i s not expected to pose any risk o f damaging cultural property, since i t w i l l only comprise physical works on existing school lands. Nevertheless, clear procedures for identification, protection o f cultural property from theft, and treatment o f discovered artifacts has been provided in the ESSAF to be included in standard bidding documents.
19
Annex 5: Documents in the Project File S R I LANKA: Additional Financing for the Education Sector Development Project
Bank Staff Assessments
Additional Financing Background Documents Aide Memoire o f July 23 - August 3,2007, Concept Mission Aide Memoire o f February 25 - March 7,2008 Appraisal Mission
Other
Government
0
0
0
National Education Commission. Envisioning Education for Human Development - Proposals for a National Policy Framework on General Education in Sri Lanka, 2003. Organizational Structure of the Ministry o f Education - General Education Sector. Ministry o f Education, 2007. Collection o f Circulars: Ministry of Education 1993 - 2008. National Policy on Education for Social Cohesion and Peace Education, Ministry o f Education, 2008.
Praiect Preparation Documents
Countrv Documents 0
0
0
Government o f S r i Lanka, Budget Statements, various years. Government o f S r i Lanka, Mahinda Chintanaya Policy Statement, 2006. Ministry o f Education, Project Implementation Plan for the Additional Financing o f the Education Sector Development Project, 2008. Provincial Ministries o f Education, Project Implementation Plans for the Additional Financing of the Education Sector Development Project, 2008. World Bank. Country Assistance Strategy, 2008 (under preparation). World Bank. Attaining the Millennium Development Goals in Sri Lanka, 2005. World Bank. Procurement Capacity Assessment for the Education Sector o f Government of Sri Lanka, 2005.
Sector Background
0
Ministry o f Education, School Census, various years. Ministry o f Education. Guidelines on School Based Planning, 2004. Ministry o f Education. Programme on School Improvement, 2005. Ministry o f Education. Inclusive Education Project (2005 - 2009) - Location, identification and medical and educational intervention o f pre-school and school-age children with special educational needs, 2005. Ministry o f Education, Education Sector Development Framework and Program, 2007. National Education Research and Evaluation Center. National Assessment of Achievement o f Grade Four Pupils in Sri Lanka, 2004. World Bank. Education Sector Report: Treasures o f the Education System in Sri Lanka, 2005.
20
Annex 6: Project Preparation Team SRI LANKA: Additional Financing for the Education Sector Development Project
The Bank staff and consultants who worked on the preparation o f the additional credit were:
Name Title Unit Harsha Aturupane Senior Economist and Team Leader SASHD Audrey Aarons Lead Education Specialist Consultant Helen Craig Senior Education Specialist SASHD Hiran Herat Lead Implementation Specialist Consultant Minneh Kane Lead Counsel LEGMS Thomas Kellaghan Lead Education Specialist Consultant Laura Kiang Operations Officer SASHD Shivendra Kumar Procurement Specialist Consultant Asta Olesen Senior Social Development Specialist SASES Sumith Pilapitiya Lead Environmental Specialist SASES
Chau-Ching Shen Senior Finance Officer LOAG2 Upul Sonnadara Education Specialist Consultant
Sunethra Samarakoon Procurement Specialist s m s
Samantha Wijesundera Procurement Specialist s m s Jiwanka Wickremasinghe Financial Management Specialist S A R F M Elfreda Vincent Program Assistant SASHD Anita Fernando Team Assistant SACSL
21
Annex 7: Statement of Loans and Credits S R I LANKA: Additional Financing for the Education Sector Development Project
Original Amount in US$ Millions
Difference between expected and actual
disbursements
Project ID FY Purpose IBRD IDA SF GAFF Cancel. Undisb. Ong. Form.Revs'
PO93132 2008 Dam Safety and Water Resources Planning 0.00 65.00 0.00 0.00 0.00 65.00 0.00 0.00
P100390 PO84580
PO8641 1 PO94205 PO83932
PO81771 PO86747 PO50740 PO74872
PO74730 PO58067 PO50741 PO77761
PO76702
2007 2006
2006 2005 2005
2005 2004 2004 2004
2003 2003 2003 2002
2002
Sr i Lanka: Puttalam Housing Project
Education Sector Development Project
Sr i Lanka - Road Sector Assistance
Sri Lanka Tsunami ERL
North East Housing Reconsbuction Program E-Sri Lanka Development
NEAP I1
HEALTH SECTOR DEVELOPMENT
Community Development & Livelihood "Gemi Diriya"
National HIV/AIDS Prevention
Second Community Water
Relevance and Quality of Undergrad. Educe
Renewable Energy for Rural Economic Dev.
Renewable Energy for Rural Economic Dev.
Total:
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00 0.00 0.00 0.00
0.00
32.00
60.00 100.00 75.00
75.00
53.00 64.70
60.00 51.00
12.60
39.80 40.30 0.00
115.00
0.00
0.00 0.00 0.00
0.00
0.00 0.00
0.00 0.00
0.00 0.00 0.00 0.00
0.00
0.00 0.00
0.00 0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00 0.00 8.00
0.00
0.00
0.00 0.00 0.00 0.00
0.00 0.00
0.00 0.00
0.00
0.00 0.00 0.00
0.00
32.56 48.87
78.33 11.65 40.08
39.49 59.73 27.90
38.50
8.17 23.90 21.30
1.62
13.56
0.00 0.00 -1.86 0.00 -5.74 0.00
-26.13 0.00 -1.64 0.00
15.89 0.00
11.25 0.00 -2.80 0.00 3.16 0.00
6.48 0.00 6.97 0.00 8.43 0.00 6.82 0.00
-11.82 0.00
0.00 843.40 0.00 8.00 0.00 451.95 9.50 0.00
SRI LANKA STATEMENT OF I f ' s
He ld and Disbursed Portfolio In Mi l l ions of U S Dollars
Committed Disbursed
IF IF
FY Approval Company Loan Equity Quasi Paretic. Loan Equity Quasi Paretic.
1998 Apollo Lanka 3.88 0.00 0.00 0.00 3.88 0.00 0.00 0.00 1996 Asia Power 0.00 2.27 0.00 0.00 0.00 2.27 0.00 0.00 2003 CUBIC 0.00 9.96 0.00 0.00 0.00 9.96 0.00 0.00 2004 CUBIC 0.00 2.89 0.00 0.00 0.00 2.89 0.00 0.00
2003 Dialog 48.75 0.00 0.00 0.00 13.75 0.00 0.00 0.00
1999 Fitch Silence 0.00 0.07 0.00 0.00 0.00 0.07 0.00 0.00 1997 Packages Lanka 0.00 0.17 0.00 0.00 0.00 0.17 0.00 0.00 1999 SAG 12.65 3.62 0.00 0.00 12.65 3.62 0.00 0.00 2000 Syntel 1.18 4.20 0.00 0.00 1.18 4.20 0.00 0.00
Total portfolio: 66.46 23.18 0.00 0.00 31.46 23.18 0.00 0.00
22
Annex 8: Country at a Glance
SRI LANKA: Additional Financing for the Education Sector Development Project
P O V E R T Y a n d S O C I A L S r i L a n k a
2 0 0 6
GNlper capita (Atlas method US$) GNI (Atlas melhod US% biilions)
A v e r a g e annual growth, 2000.06
Population (w 0 4 Laborforce (%) 0 6
M o s t r e c e n t e s t i m a t e ( l a t e s t year avai lab le, 2 0 0 0 . 0 6 )
Poverty (%of population below nationalpo verly line)
Population mid-year (millionsj 8 8 1320 26 0
Urban population (%oftotalpopuiation) 15 Life expectancyat birth (yearsj 75 Infant mortality (per IOOOIive births)
Access to an improved water source (%ofpopuiation) Literacy (%of population age ?5+ Gross primary enrollment (%of school-age population)
P 29 79 93 98
Child malnutrition (%of children under5)
Male Female
KEY E C O N O M I C R A T I O S a n d L O N G - T E R M T R E N D S
1986 1996
GDP (US$ billions) 6 4 0 9 Gross capital formationlGDP 237 242 Exports O f goods and SeWicesiGDP 237 350 Gross domestic savingslGDP PO 153 Gross national savingslGDP 191 8 4
Current account balancelGDP -6 4 .4 9 Interest paymentslGDP 2 5 13 Total debtlGDP 637 597 Total debt sewicelexports 208 8 0 Present value of debllGDP Present value of debtiexports
1986.96 1996-06 2005
GDP 4 7 4 4 6 0
Exports o f goods and sewices 7 5 5 5 5 6
(average annualgrohth)
GDP percapita 3 4 3 7 5 1
Lower. S o u t h middle.
A s i a i n c o m e
1493 766 1M3
17 2 1
29 64 62
84 58 10 115 0 5
2 0 0 5
23 5 26 5 33 5 173
24 5
-2 8 0 8 711 4 9
416 98 9
2 276 2 037 4 635
0 9 14
47 71 31 0 81 89 10 ll7 I W
2006
27 0 28 7 316 7 1
24 8
-4 9 16
86 3 x)1
2006 2006-10
7 4 6 6 4 8
1 D e v e l o p m e n t d i a m o n d '
I Life expectancy
I
GNI Gross per - - capita enrollment
m a w -
, Access to improved water source
Sri Lanka Lower-middle-income group
E c o n o m i c r a t i o s '
Trade
Domestic :\ Capital savings rp' formation
"*
Indebtedness
~ -*- Sri Lanka __ Lo wer-middle-income o r o u ~
S T R U C T U R E o f t h e E C O N O M Y
23
i% o f GDPj Agricullure Industry
M anufacturing Services
Househo Id final consumption expenditure General gov t final consumption expenditure Imports of goods and services
(average annualgrowth) Agriculture Industry
M anufacturing Services
Household final consumption expenditure General gov tfinal consumption expenditure Gross capital formation Imports o f goods and Services
1986 1996
271 224 266 264 152 6 2
463 511
777 741 0 3 0 5 353 439
1986-96 1996-06
19 15 6 4 4 4 7 9 4 1 5 0 5 5
4 6 5 2 272 2 3
3 2 6 0 6 2 7 0
2005
173 27 1 ?d8
55 6
74 5 8 2
42 8
2 0 0 5
19 8 3 6 0 6 2
2 5 6 1 11 0 3 0
G r o w t h o f c i p i t a l and G D P (Oh)
565 .,c “,$.‘e 02 03 04 05 06
730 -20
43 2 . - - 9 0
WI-GCF -GDP
2 0 0 6
4 7 7 2 5 3 8 3
6 0 773 134 8 3
~ -
I G r o w t h o f exports and imports I%) 20
02 03 04
Note 2006 data are preliminary estimates
‘Thediamonds showfourkeyindicators inthecountry(in bold)comparedwithits income-groupaverage if dataare missing thediamondwill be incomplete
Sri Lanka
P R I C E S and G O V E R N M E N T F I N A N C E
D o m e s t i c pr ices (%change) Consumer prices Implicit GDP deflator
G o v e r n m e n t f inance ( % o f GDP includes currenl granfs) Current revenue Current budget balance Overall surplusldeficit
T R A D E
(US$ millions) Tolalexporls (fob)
Tea Other agricultural goods M anufaclures
Totalimports (cif) Food Fuel and energy Capital goods
Export price index(2000=130) Import price index (2000=00j Terms o f trade [2000=WO)
1986
8 0 5 9
20 7 18
-x) 1
1986
12s 330 94
223 1764
1996
159 0 8
190 -3 8 -9 4
1996
4 095 615 378
1,902 5 439
801 479
1,204
73 76 97
20062
116 9 9
174 -13 -7 3
20052
6 347 811
344 2 896 8 863
611 1655 1869
T29 t33 97
0 0 6
137 a3
181 -14 -7 3
006
6,883 882 461
3,088 0 253
757 2,070 2,246
a8 Q4 96
inf lat ion (%) I
0 ~- 01 02 03 04 os
E x p o r t a n d Import l e v e l s ( U S $ mill.)
15 OCO , I10 C O O 1
5 000
0
00 01 02 03 04 05 OB
wiExporls r l m p o r i s
24
B A L A N C E B A L A N C E O f P A Y M E N T S
(US$ million$ (US$ millions) Exports of gcExports of goods andservices Imports o f gclmports of goods and services Resource ba Resource balance
Net income Net income Net current t i Net current transfers
1986
1,521 2,264 .743
-a8 471
Current acco Current account balance -4 13
Financ'ng iteiFinancing items (net) Changes inn Changes in net reserves
298 I0
M e m o M e m o : Reserves incReserves includinggold (US$ millions) 363
28 0 Conversion rconversion rate (D€C local/US$)
E X T E R N A I E X T E R N A L D E B T a n d R E S O U R C E F L O W S
(US$ milliond (US$ mrllionsl Totaldebt o t Totaldebt outstanding and disbursed
1986
4 083 IBRD IBRD 72 IDA IDA 498
Total debt seTotal debt Sewice IBRD IBRD IDA IDA
399 t2 5
Compositior Composition of net resource flows Official grai Official grants 7 4 Official crei Official creditors 349 Private cre Private creditors 13 Foreign dir, Foreign direct investment (ne1 inflows) 30 Ponfolio e Portfolio equity(net inflows) 0
World Sank F World Bank program Commitmi Commitments Disbursem Disbursements Principal re Principal repayments Net flows Net flows Interest pa) Interest payments Ne1 transfe Net transfers
*37 88 6
82 11
72
1996
4,861 6 099 .1,238
-204 759
-683
615 68
1,967 55 3
1996
8,298 40
1.5 6
467 11
20
t12 318 67
0 0 0
156 134 6
88 15
73
20062
7,887 13,065 . 2 , m
200 1,829
-649
1,078 -429
2,737 DO 5
20052
6.730 0
2.095
480 1
57
659 6,007
11 272 -2 6
t20 1x3 41 73 n
56
0 0 6
8 508 11621 -3 10
-389 2 6 9
-1333
1267 66
2 947 133 9
0 0 6
23 275 0
2 245
1 nl
60
0 6 630
-83 0 0
29 130 43 57 n
40
C u r r e n t a c c o u n t b a l a n c e t o G D P ( O h )
8
C o m po L I t I o n-o 1 2 0 0 a d e b t ( U S O m I It. J
F R 5 O E 2,245
A - I E R D E - Bilateral B . IDA 0 . Other mllilatwal F - Private C - I M F G. Short.term
Developmen Development Economics 13lYO7
25
Ferry
PidurutalagalaPidurutalagala(2,524 m) (2,524 m)
Victoria FallsVictoria FallsReservoirReservoir
Madura OyaMadura OyaReservoirReservoir
SenanayakeSenanayakeSamudraSamudra
Kala Oya
Deduru Oya
Kalu
Kirindi Oya
Mah
awel
i Gan
ga
Yan
Oya
Kelan
Aruvi Aru
IranamaduIranamaduTankTank
Kaudulla Oya
Maha Oya
Mad
ura
Oya
Gal Oyya
Gang
Walawe G
anga
N O R T H E R NN O R T H E R N
C E N T R A LC E N T R A L
N O R T H C E N T R A LN O R T H C E N T R A L
N O R T H N O R T H W E S T E R NW E S T E R N
U V AU V A
S O U T H E R NS O U T H E R N
WESTERNWESTERN
E A S T E R NE A S T E R N
SABARAGAMUWASABARAGAMUWA
MataraMatara
KegallaKegalla
AmparaAmpara
KillinochchiKillinochchi
VavuniyaVavuniya
ManakulamManakulam
RambewaRambewa
GalkulamaGalkulama
MahoMaho
HabaraneHabarane
KataragamaKataragama
MonaragalaMonaragala
WellawayaWellawaya
GalleGalle
KandyKandy
BadullaBadulla
RatnapuraRatnapura
AnuradhapuraAnuradhapura
KurunegalaKurunegala
N O R T H E R N
C E N T R A L
N O R T H C E N T R A L
N O R T H W E S T E R N
U V A
S O U T H E R N
WESTERN
E A S T E R N
SABARAGAMUWA
Matara
Kegalla
Kalutara
Hambantota
Tangalla
Kumana
Ampara
Killinochchi
Mullaittivu
Pulmoddai
Mutur
Elephant Pass
Mannar
Vavuniya
Point Pedro
ManakulamTalaimannar
Rambewa
Galkulama
Maho
Kalpitiya
Habarane
Chilaw
Negombo
Moratuwa
Kataragama
MonaragalaPottuvil
Kalmunai
Kattankudi
Wellawaya
Trincomalee
Puttalan
Sri Jayewardenepura Kotte
Galle
Kandy
Badulla
Ratnapura
Anuradhapura
Jaffna
Batticaloa
Kurunegala
COLOMBO
INDIA
Victoria FallsReservoir
Madura OyaReservoir
SenanayakeSamudra
Kala Oya
Deduru Oya
Kalu
Kirindi Oya
Mah
awel
i Gan
ga
Yan
Oya
Kelan
Aruvi Aru
IranamaduTank
Kaudulla Oya
Maha Oya
Mad
ura
Oya
Gal Oya
Gang
Walawe G
anga
G u l f o f
M a n n a r
P a l k B a y
L a c c a d i v e
S e a
B a y o f B e n g a l
I N D I A NO C E A N
Pa
l k S
t ra i t
Dondra Head
KaraitivuIsland
DelftIsland
MannarIsland
Adam's Bridge
Pidurutalagala(2,524 m)
10°N 10°N
9°N
8°N
7°N
6°N
8°N
7°N
6°N
80°E 81°E
80°E 81°E 82°E
SRI LANKA
This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.
0 20 40
0 10 20 30 40 Miles
60 Kilometers
IBRD 33485
SEPTEMBER 2004
SRI LANKASELECTED CITIES AND TOWNS
PROVINCE CAPITALS
NATIONAL CAPITAL
RIVERS
MAIN ROADS
RAILROADS
PROVINCE BOUNDARIES
INTERNATIONAL BOUNDARIES