Snapshot of the Basic Education Sector Development Program (BESDP) in Lao PDR

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1 June 2012 Project Number Snapshot of the Basic Education Sector Development Program (BESDP) in Lao PDR In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

2 Snapshot of the Basic Education Sector Development Program (BESDP) in Lao PDR Overview. As part of sustained cooperation between the government of the Lao People's Democratic Republic (Lao PDR) and Asian Development Bank (ADB), BESDP aims to improve the access, quality, and efficiency of basic education, with a focus on lower secondary education (LSE). Its designed was closely aligned with the Sixth National Education Sector Development Plan ( ) which highlighted education and human resource development as central to poverty reduction and socioeconomic development. It also dovetails with subsequent national plans and strategies, including Lao PDR s Education Sector Development Framework, with three pillars focused on equity and access, quality and relevance, and education sector management and governance. BESDP's support for secondary education (SE) and LSE in particular, provides critical support to the government in advancing the Millennium Development Goals (MDGs; particularly related to gender parity in SE, under the third MDG). It also complements (and involves coordination with) efforts by other development partners (DPs), which are principally focused on primary education. BESDP's loan and grant components. BESDP combines (i) a program loan of roughly $8.9 million equivalent, which supports essential policy reforms; and (ii) a project grant of $12.66 million that provides complementary investments to enhance equity and access, quality and relevance, and sector efficiency and management capacities. The Lao PDR Ministry of Education and Sports (MOES) acts as the executing agency for BESDP (see also footnote 3). The detailed project design document is online 1, and a brief outline is given below. Overall outcome targeted. The loan and grant components jointly contribute to the overall outcome of expanded and equitable access to higher quality and more efficient LSE. Reforms supported under the program loan are nationwide in scope, while the project grant principally focuses on 6 largely poor and rural provinces 2, with scholarships and school-level grants (see below) covering targeted schools in 13 provinces. Policy support via the program loan. The loan-based program component aims to promote expanded access, equity, and quality of education. It also seeks to strengthen the capacity of MOES and the provincial and district bodies responsible for education administration to provide more effective decentralized planning, management, financial reporting, and budgeting for education. More specifically, it supports a series of policy actions that contribute to (i) ensuring greater resources for education, including rationalizing budgetary allocations for education; (ii) designing and implementing an outcome-oriented budgeting and financial management system that will also lead to preparation of a medium-term expenditure framework (MTEF) for education; (iii) providing a more relevant and integrated curriculum for schools; (iv) strengthening teacher management through preparation of a recruitment and deployment plan, and development of a teacher management information system; and (v) strengthening capacity for decentralized planning. The policy reform agenda supported by the BESDP targets the poor through (i) greater resource mobilization and allocations for education; (ii) increased access to education, especially for underserved areas and disadvantaged groups; (iii) better standards, quality, and internal efficiency, and consequent sustainability in the education sector; and (iv) effective capacity building for decentralized education management. To enhance the impact and sustainability of reforms, as well as overall system efficiency, the BESDP also provides a policy and strategic framework for addressing capacity building concerns in a number of areas, including decentralized education management, basic education policy analysis and strategic planning, and teacher recruitment and deployment. Supportive investments via the project grant. Complementing the program loan's support for reforms, the project grant aims to enhance equitable access to and the quality of LSE, with a particular focus on (i) expansion of LSE opportunities to improve access and equity; (ii) integration of the basic education curriculum to account for lower secondary school expansion from three to four grades, and improved quality and relevance of LSE; and (iii) central, provincial, and district capacity building in critical areas including education management information systems (EMIS), budgeting and financial management, and planning. The project component supports the BESDP's pro-poor agenda through initiatives including (i) the expansion and improvement of LSE facilities in underserved, poor, and remote areas; (ii) the provision of scholarships to disadvantaged children, particularly girls from poor and ethnic minority households; and (iii) the introduction of 1 The original design is at while minor adjustments have been made during implementation. Please also see information and updates via BESDP's website at 2 Attapeu, Bokeo, Champasack, Khammouane, Luang Namtha, and Savannakhet Provinces.

3 community-level education development grants, which are managed by student-parent associations (SPAs) and prioritize improved access to and quality of education for girls and disadvantaged children. The project component also contributes to reforms by supporting capacity building from the central to school levels. Targeted Outputs and Key Interventions. A more exhaustive description is given in the project design document (see footnote 1) and in an attached summary matrix. Collectively, BESDP's program and project components target delivery of 3 core output areas (rephrased slightly for comparability): (i) expand equitable access to basic education, with the project grant focusing on LSE per se; (ii) improve quality and relevance of formal basic education; and (iii) strengthen education management, with the project grant focusing on strengthened capacities within MOES and target provinces. Output area 1 expanded equitable access to basic education. Reforms supported under the program loan include (among others) those focused on increasing budgetary allocations to education (and in particular recurrent budgets), issuance of guidelines for school-level education development funds, and targeting of scholarships (with a particular emphasis on girls from poor ethnic group families). The project, in turn, includes support for (i) a pilot test of needs-targeted scholarships to 1,638 poor students (mostly girls from ethnic group families) in 96 disadvantaged LSE schools; (ii) establishment of SPAs to support management; and (iii) provision of education development grants (managed by SPAs) to tackle constraints to access and improve learning environments. To address physical access and overcrowding, the project also has supported construction of 28 new LSE schools as well as 144 additional LSE classrooms in 20 targeted districts. Output area 2 improved quality and relevance of formal basic education. The program loan includes (among others) support for development and approval of new policy on teacher recruitment and deployment including a new policy framework, action plan, and supporting guidelines and also on mobilizing greater participation by the private sector actors (including non-profits) in grade 1-12 education, including approval of a new strategy, incentives, and action plan. BESDP has directly supported (i) development and approval of the revised curriculum for the new 4-year LSE system (grades 6-9) and for USE (grades 10-12); (ii) development of new textbooks and teacher guides for all 4 years of the revised LSE curriculum, which is being introduced on a cohort basis, out starting with the first year of LSE (M1) in school year SY2010/11; and (iii) printing and nationwide distribution of textbook and teacher guide for the first 2 years of LSE (M1 and M2) as well as training of roughly 8,000 teachers. BESDP s successor, the Secondary Education Sector Development Program (SESDP) will support the continued roll-out of new SE curriculum, to be completed in SY2016/17. Output area 3 strengthened education management. The program loan has supported (among others) strengthening of EMIS (including through new guidelines for standardized data collection, processing, and analysis), strengthened financial management, enhancement of provincial budgeting and planning, development of an education sector medium-term expenditure framework (MTEF), and new legislation and systems for managing physical assets. The project has supported these reform initiatives, including via design work and piloting in Attapeu, Luang Prabang, and Savannakhet, as well as providing related capacity building for MOES and provincial and district education offices. Key progress to-date. Despite early-stage delays, BESDP has supported MOES and other agencies 3 in attaining significant achievements. Progress on the policy reform front is reflected in the ADB Board of Directors 2011 May approval of release of the third and final tranches under the policy loan, based on substantial compliance with an ambitious list of reform targets, drawing the program loan to a close. Achievements under the project component are reported on the BESDP website (see footnote 1), and most activities have been completed (including school construction, printing and distribution of the new M1 and M2 curriculum materials, related training nationwide, etc.). Implementation of the scholarship and school grant programs will continue through SY2012/13. As noted above, SESDP will dovetail with BESDP, seamlessly continuing ADB s support to the government s reform agenda and strengthening of secondary education. 4 3 In addition to critical dialogue with the Ministries of Finance and of Planning and Investment, achievements reflect the joint leadership of (in alphabetical order) the MOES Departments of Planning and Cooperation and of Secondary Education, as well as key roles by BESDP's other implementing units the MOES Departments of Finance, Non-formal Education, Personnel, and Private Education Management, and the Education Statistics and Information Technology Center, Inclusive Education Center, Research Institute of Education Science and by partner provinces, and support from the BESDP's project management unit and team of consultants. 4 SESDP is now in early-stage implementation. See

4 APPENDIX 2: SUMMARY MATRIX OF POLICY CONDITIONS (BY TRANCHE) AND PROJECT SUPPORT Policy Conditions for Tranches 1-3 (Program Loan 2306-LAO) Policy Areas and Medium Term Objectives Tranche 1 (effectiveness) Tranche 2 (orig. target mid-2009) A. Expand Equitable Access to Basic Education 1. Increase and rationalize resource allocations for the education sector. 2. Promote access and participation in primary education, and reduce repetition and dropout rates, especially for girls, ethnic and poorest children (by rationalizing availability of school facilities and restructuring the school system) (T1.1) MOE shall approve regulations and revise manuals to strengthen the roles and responsibilities of PESs and DEBs. 3. Promote access to LSE (T1.2) MOE shall have in an efficient and equitable issued guidelines for the manner by increasing supply management and use of education development funds allocated to schools. MOE shall have identified criteria and issued guidelines for selection of scholarship recipients. Tranche 3 (orig. target mid- 2010) (T2.1) MOF shall have allocated 15.5% (T3.1) MOF shall have allocated of the total budget for to 16% of the total budget for MOE, provided that the allocated to education budget shall not have been MOE, provided that the allocated less than the share or the volume, education budget shall not have whichever is greater, of the budget been less than the share or the allocation stipulated in the preceding volume, whichever is greater, of year. the budget allocation stipulated in the preceding year. (T2.2) The share of the recurrent expenditures shall have reached at least 45% of the total education budget for (T2.3) MOF shall have disbursed 80% of the MOE recurrent budget for (T3.2) The share of recurrent expenditures shall have reached at least 50% of the total education budget for (T3.3) MOF shall have disbursed 85% of the MOE recurrent budget for Related Project Support (Grant 0069-LAO) Investment Component (as per project design in RRP para.s and the DMF in Appendix 1) No direct investment Project support, however, initiatives linked to 3rd Output (Strengthened Capacity for Education Management) will support and facilitate the monitoring of Policy Matrix conditionalities relating to the education budget. see above see above Under the investment project's 1st Output area (Expanded Access for Formal Lower Secondary Education): Develop LS school map in target provinces (see below), Conduct baseline studies on factors inhibiting LS participation, Provide scholarships to 1,638 poor students, especially girls from ethnic groups, Establish school management committees and support equitable access (and quality aims) via Education Development Grant Program assistance to 96 LS schools in target districts Under 1st Output area (Expanded Access for Formal Lower Secondary Education), supportive supply-side measures: Construct 28 new LS schools (containing est. 92 classrooms) in 20 target districts in 6 provinces (Attapeu, Bokeo, Champasak, Khammouane, Luang Namtha, & Savannakhet), Construct 144 additional classrooms in existing LS schools where average class size exceeds 60

5 APPENDIX 2: SUMMARY MATRIX OF POLICY CONDITIONS (BY TRANCHE) AND PROJECT SUPPORT Policy Conditions for Tranches 1-3 (Program Loan 2306-LAO) Policy Areas and Medium Term Objectives Tranche 1 (effectiveness) Tranche 2 (orig. target mid-2009) B. Improve the Quality and Relevance of Formal Basic Education 1. Improve the quality of teaching in school education by enhancing teacher competencies and promoting equity and efficiency in teacher management (T2.4) MOE shall have prepared and submitted to the PMO for approval a Teacher Recruitment and Deployment Policy Framework, action plan and supporting guidelines for the management, recruitment, deployment and career development of teachers. Tranche 3 (orig. target mid- 2010) (T3.4) PMO shall have approved the Teacher Recruitment and Deployment Policy Framework, action plan and supporting guidelines. Related Project Support (Grant 0069-LAO) Investment Component (as per project design in RRP para.s and the DMF in Appendix 1) The Project later added consultant support to MOE in developing the framework, action plan, and guidelines 2. Encourage private sector participation in the provision of school education (years 1-12) 1 (T2.5) MOE Dept of Private Education (T3.5) PMO shall have approved shall have developed a strategy, the strategy, incentives, and incentives and action plan for facilitating action plan for facilitating participation by the private sector (e.g., participation by the private sector public trusts, private bodies, charitable (e.g., public trusts, private bodies, institutions, etc.) in the provision of charitable institutions, etc.) in the school education. provision of school education. The Project later added consultant support to MOE in developing the strategy, action plan, and incentives. See also Note 1 at bottom. 3. Develop a revised curriculum for primary, lower secondary, and upper secondary education in response to the addition of 1 year to the general education program. 4. Develop, produce and distribute to lower secondary schools new textbooks and teacher guides designed to implement the new lower secondary curriculum. (T2.6) MOE shall have approved the revised curricula for primary (years 1-5) and lower secondary education (Years 6-9). (T2.7) GOL shall have approved the revised LSE curriculum (Years 6-9). (T2.8) MOE shall have developed a (T3.6) MOE shall have approved revised upper secondary curriculum a revised upper secondary (Years 10-12) taking account of the curriculum (years 10 12). revised curricula for years 1-9. (T2.9) MOE shall have approved the use of new LSE textbooks and teachers guides. The investment project's 2nd Output area (Improved Quality of Formal Basic Education) supports: Development of grade 1-12 curriculum framework, Development of detailed curriculum, curriculum guides, student learning outcomes, and assessment framework for the new 4-year LS system (grades 6-9), see above see above. Additionally, the Project later added direct support to MOE/RIES in development of the revised USE curriculum The investment project's 2nd Output area (Improved Quality of Formal Basic Education) supports: Development and distribution of new LS textbooks and teacher guides (distribution of old textbooks was initially also foreseen, but was dropped), In-service training program for all LSE schools in all districts of BESDP's 6 target provinces, Providing equipment/facility upgrading for teacher education institutions and various teaching and learning materials for LS schools.

6 APPENDIX 2: SUMMARY MATRIX OF POLICY CONDITIONS (BY TRANCHE) AND PROJECT SUPPORT Policy Conditions for Tranches 1-3 (Program Loan 2306-LAO) Related Project Support (Grant 0069-LAO) Policy Areas and Medium Term Objectives Tranche 1 (effectiveness) Tranche 2 (orig. target mid-2009) C. Strengthen Education Management 1. Strengthen the sector EMIS, build capacity at all levels and improve monitoring and planning for sector development. (T2.10) MOE shall have issued guidelines for standardizing data collection, data processing and data analysis. Tranche 3 (orig. target mid- 2010) Investment Component (as per project design in RRP para.s and the DMF in Appendix 1) The investment project's 3rd Output area (Strengthened Capacity for Education Management) includes: Strengthening EMIS and related systems, in particular by establishing TMIS and FMIS at national down to local levels, along with creation of data collections instruments, etc. Related capacity building at central to school-levels in data collection, processing, and utilization 2.Improve budget format and process 3. Improve provincial planning in line with national policies and align planning with revised format and procedures (T2.11) MOE shall have piloted the new Financial Management System, which incorporates budget preparation and submission at provincial level, in three agreed BESDP target provinces. (T2.12) MOE shall have issued a directive requiring PESs to prepare provincial plans based on school mapping carried out pursuant to the EFA Plan and aligned with the new budget format and processes. (T3.7) MOE shall have adopted the new financial management systems for implementation at the national level. The investment project's 3rd Output area (Strengthened Capacity for Education Management) includes: Designing an outcome-oriented budget format and process aligned with preparation of an education MTEF, and pilot testing this in 3 pilot provinces (Attapeu, Luang Namtha, & Savannakhet), see also linked intervetions below Linked to the above, the 3rd Output area also includes: Pilot testing a provincial planning process in the same 3 provinces Related training for PES, DEB, and school staff responsible for budgeting, accounting, reporting/monitoring expenditures, Training for PES and DEB staff responsible for planning 4. Design an education sector medium term expenditure framework that is integrated with the public sector MTEF to provide a rational basis for budget negotiation with MOF. (T2.13) MOE shall have initiated development of a medium term expenditure framework for education. (T. 3.8) MOE shall have developed an education sector MTEF. Linked to the above, the 3rd Output area also includes: Capacity building for MOE to support the MTEF process 5. Develop a central inventory of all MOE physical assets (T2.14) MOE shall have revised the current regulation on the management of MOE assets (Decision No. 66, 28 January 2004) for effective management of such assets. The investment project's 3rd Output area also includes: Designing a central system for registering and monitoring MOE physical assets/properties (land, buildings, equipment, TB, etc.), Upgrading the central warehouse. Notes: 1 The condition on private sector moblization is shown here in the order presented in the Loan Agreement and the Policy Matrix (Appendix 8 of the RRP), under Output 2 on quality and relevance. However, it is noted that the main text of the RRP refers to private sector participation in the discussion of Output 1 on enhancing access (in para. 38[v]).

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