Projet Éducation pour tous phase II, République d'Haïti: document pour la 259e réunion du Conseil d'administration

PUBLIC DISCLOSURE AUTHORISED CARIBBEAN DEVELOPMENT BANK TWO HUNDRED AND FIFTY-NINTH MEETING OF THE BOARD OF DIRECTORS TO BE HELD IN BARBADOS DECEMBER 12, 2013 PAPER BD 94/13 EDUCATION FOR ALL PROJECT – PHASE II – REPUBLIC OF HAITI (President’s Recommendation No. 879) 1. The attached Report covers the appraisal of a project to assist the Government of the Republic of Haiti (GOH) to improve access to primary education and Early Childhood Development for poor children, and to enhance equity and governance of the education sector. The project will provide for tuition waivers, student nutrition and health, pre-service and in-service teacher training, school textbooks, multi-grade learning programmes, and activities to improve student literacy skills. The project will also support community-based activities for school building and teacher training. It will improve governance and enhance financial management and procurement skills within the Ministry of National Education and Vocational Training, Ministère de l’Education Nationale et de la Formation Professionnelle (MENFP). The project is an integral component of the National Education for All Strategy and will support the Operational Plan for Education articulated after the earthquake of 2010. This project is the second phase of the Education For All programme and will be funded jointly with the World Bank (WB). 2. On the basis of the Report, I recommend: (a) a grant to GOH of an amount not exceeding the equivalent of eleven million (mn) United States dollars (USD11 mn) from the Special Funds Resources of CDB to assist GOH in financing the project, on the terms and conditions set out and referred to in Chapter 6 of the attached Report; and (b) where funds of the Special Development Fund (Unified) (SDF [U]) resources are being utilised together with WB to finance any component of the project, a waiver of CDB’s procurement procedures be granted to permit services to be financed from CDB’s SDF (U) to be procured in accordance with WB procurement procedures and also to be procured from WB-eligible countries not eligible for procurement from CDB’s SDF (U). 3. Funds are available within CDB’s existing resources and/or borrowing programme for the relevant disbursement period.  PUBLIC DISCLOSURE AUTHORISED CARIBBEAN DEVELOPMENT BANK APPRAISAL REPORT ON EDUCATION FOR ALL PROJECT PHASE II– REPUBLIC OF HAITI This Document is being made publicly available in accordance with the Bank’s Information Disclosure Policy. The Bank does not accept responsibility for the accuracy or completeness of the Document. Considered at the Two Hundred and Fifty-Ninth Meeting of the Board of Directors on December 12, 2013. (BD 94/13) AR13/10 HAT Officer-in-Charge - Deidre Clarendon Projects Department Portfolio Manager (Ag.) - Stephen Sandiford Social Sector Division DECEMBER 2013  This Report was prepared by an Appraisal Team comprising: Idamay Denny, Operations Officer (Education) Coordinator; McDonald Thomas, Operations Officer (Social Analyst); Cavon White, Operations Officer (Analyst); Xiomara Archibald, Country Economist; Gail Royer, Legal Counsel; Cheryl Dixon, Operations Officer (Environment); M. Stephen Lawrence, Operations Officer (Engineer); and Esther Mascoll, Coordinating Secretary. The WB Appraisal Report dated October 2011 was utilised in the preparation of this Report for consistency, since the Caribbean Development Bank (CDB) is using the same operational manual. Any designation or demarcation of, or reference to, a particular territory or geographic area in this Document is not intended to imply any opinion or judgment on the part of the Bank as to the legal or other status of any territory or area or as to the delimitation of frontiers or boundaries.  CURRENCY EQUIVALENT Dollars ($) throughout refer to United States Dollars (USD) unless otherwise stated. Gourdes 1.00 = USD0.025 USD1.00 = 40 Gourdes ABBREVIATIONS AU - Administrative Unit BMC - Borrowing Member Country BUGEP - Pre-school Education Management Bureau CBO - Community-Based Organisation CDB - Caribbean Development Bank CDD - Community Driven Development CIDA - Canadian International Development Agency CSP - Country Strategy Paper DAA - Department of Administrative Affairs DAEPP - Direction d’Appui a l’Enseignement Prive et au Parenariat/Department for Support for Private Education and Partnership DDE - Direction Departmentale d’Education/Regional Education Department DEF - Direction de l’Enseignement/Directorate of Fundamental Teaching DFP - Direction de la Formation et du Perfectionnement Fondamental) DGS DFATD - Department of Foreign Affairs and Trade Development DGS - Direction du Génie Scolaire/Directorate of School Infrastructure ECD - Early Childhood Development EFA - Education For All EFCU - External Financing Coordination Unit EGRA - Early Grade Reading Assessment ESRF - Environment and Social Reform Framework ESMF Environmental and Social Monitoring Framework FAES - Fonds d’Assistance Economique et Sociale FIA - Accelerated Teacher Training Project FNE - National Education Fund FY Natio - Fiscal Year nal GDP Education - Gross Domestic Product GII Fund - Gender Inequality Index GOH - Government of the Republic of Haiti GMT - Grassroots Management Training HDI - Human Development Index ICR - Implementation Completion Report IDA - International Development Association IDB - Inter-American Development Bank IFMs Instituts de Formation des Maîtres/Teacher Training Institutes IBRD - International Bank for Reconstruction and Development M&E - Monitoring and Evaluation MEC - Municipal Education Commissions MENFP - Ministre de l’Education Nationale et de la Formation Professionnelle (Ministry of National Education and Vocational Training) mn - million  (ii) MPI - Multi-dimensional Poverty Index NEPO - National Education Partnership Office NGO - Non-Governmental Organisation OPE - Operational Plan for Education PC - Project Coordinator POM - Project Operational Manual PMT - Project Management Team PNCS - Programme National des Cantines Scolaires/National School Feeding Programme PRODEP - Rural Community Driven Development Project PSC - Project Steering Committee PTU - Project Technical Unit SA Special Accounts SDF - Special Development Fund SFR - Special Funds Resources SMC - School Management Committee TOR - Terms of Reference UNICEF - United Nations Children’s Fund UPE - Universal Primary Education USD - United States Dollars WB - World Bank MEASURES AND EQUIVALENTS 1 kilometre (km) = 0.621 mile (mi) 1 square kilometre (km2) = 0.386 square mile (mi2) 1 metre (m) = 3.281 feet (ft) 1 square metre (m2) = 10.756 square feet (ft2) 1 tonne (tn) = 1.1 tons 1 litre = 0.22 imperial gallon 1 hectare (ha) = 2.47 acres  TABLE OF CONTENTS COUNTRY DATA: REPUBLIC OF HAITI GRANT AND PROJECT SUMMARY 1. STRATEGIC CONTEXT AND RATIONALE 2. PROJECT DESCRIPTION 3. FINANCING STRUCTURE AND COSTS 4. PROJECT VIABILITY 5. GRANTEE, PROJECT MANAGEMENT AND IMPLEMENTATION ARRANGEMENTS 6. TERMS AND CONDITIONS APPENDICES 1.1 MACROECONOMIC CONTEXT 1.2 SOCIAL CONTEXT 1.3 STATUS OF THE EDUCATION SECTOR 1.4 SUMMARY OF RESULTS OF EDUCATION FOR ALL PHASE ONE 2.1 DETAILED DESCRIPTION OF THE PROJECT 3.1 PROJECT COST, FINANCING AND PHASING PLAN 4.1 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK 5.1 SUMMARY OF CDB GRANTS AND DIRECT ASSISTANCE TO HAITI 5.2 PROJECT MANAGEMENT ORGANISATIONAL STRUCTURE 5.3 INDICATIVE IMPLEMENTATION SCHEDULE (CDB FUNDED ACTIVITIES) 5.4 IMPLEMENTATION ARRANGEMENTS 5.5 ESTIMATED QUARTERLY DISBURSEMENT SCHEDULE 5.6 PROCUREMENT PLAN 6.1 PAYMENT ARRANGEMENTS 6.2 INTERNATIONAL DEVELOPMENT ASSOCIATION FINANCING AGREEMENT FIGURES 1. MAP OF HAITI  COUNTRY DATA: HAITI 2008 2009 2010 2011 2012 PER CAPITA GDP (current market prices; gourdes) 25,999.5 27,297.0 26,680.3 29,671.2 32,341.2 GROSS DOMESTIC PRODUCT (GDP) GDP at Current Market Prices (gourdes mn) 250,590.0 266,559.0 264,039.0 297,687.0 329,032.0 Demand Components: Consumption Expenditure 255,646.0 269,640.0 328,993.0 337,701.0 347,846.0 Gross Domestic Investment 72,281.0 73,161.0 67,154.0 86,415.0 95,619.0 Exports of goods and non-factor services 31,878.0 37,806.0 32,346.0 40,693.0 43,516.0 Imports of goods and non-factors ervices 109,215.0 114,048.0 164,454.0 167,122.0 157,949.0 Gross domestic savings ratio (%) (2.0) (1.2) (24.6) (13.4) (5.7) Sectoral distribution of constant GDP (%) Agriculture, forestry, livestock and fishing 22.9 23.5 24.8 23.8 22.6 Mining & Quarrying 0.1 0.1 0.1 0.1 0.1 Manufacturing 7.6 7.6 6.9 7.7 8.0 Utilities 0.4 0.5 0.5 0.6 0.7 Construction 8.0 8.0 8.8 9.1 9.3 Wholesale & Retail Trade, Hotels & Restaurants 28.4 27.9 27.2 26.9 27.1 Transport & Communication 7.1 7.1 7.3 7.4 7.5 Other services 17.9 17.7 16.9 16.8 16.8 Taxes less subsidies 7.6 7.6 7.6 7.6 7.8 GDP at constant 1986-87 Prices (gourdes mn) 13,622.0 14,014.0 13,255.0 13,996.0 14,391.0 Annual rate of growth in GDP (%) 0.8 2.9 (5.4) 5.6 2.8 MONEY AND PRICES (gourdes mn) Consumer prices (av. annual % change) 19.9 4.1 7.0 6.8 5.9 Money supply (M1; annual % change) 17.2 15.2 29.3 9.4 13.2 Total domestic credit(net) 49,980.4 58,875.1 36,321.0 37,654.2 47,578.3 Private sector (net) 37,496.4 43,001.6 40,585.1 50,525.6 65,572.7 Public sector (net) 12,483.9 15,873.5 (4,264.1) (12,871.5) (17,994.5) Other items net (incl. special accounts) 3,657.5 3,597.7 (2,150.2) (3,148.4) (13,914.9) Estimated Tourism Expenditure (USD mn) … … … … … CENTRAL GOVERNMENT FINANCES (gourdes mn) Current Revenues 26,961.8 31,303.6 31,445.3 38,932.6 42,313.2 Current Expenditures 27,019.1 29,605.5 28,259.0 35,825.9 39,804.5 Current AccountSurplus/ (Deficit) (57.3) 1,698.1 3,186.4 3,106.5 2,508.6 Capital Revenues and Grants … … … … 1,137.6 Capital Expenditure and Net Lending 3,327.0 5,949.1 9,708.0 6,883.0 12,288.0 Adjustments (5,189.0) (1,944.8) (1,641.5) (5,101.5) (9,277.4) Overall Surplus/ (Deficit) 1,804.7 (2,306.2) (4,880.2) 1,324.9 (502.2) BALANCE OF PAYMENTS (USD mn) Merchandise Exports (f.o.b) 490.2 551.0 563.4 768.1 785.0 Merchandise Imports (c.i.f) 2,107.8 2,032.1 2,810.1 3,014.0 2,679.3 Trade balance (1,617.6) (1,481.1) (2,246.7) (2,245.9) (1,894.4) Net Balance on services account (403.3) (393.2) (1,038.3) (891.0) (900.9) Income (net) 5.6 12.8 22.3 41.0 68.5 Transfers (net) 1,726.2 1,635.2 3,096.8 2,757.1 2,367.9 Current Account Balance (289.1) (226.3) (165.8) (338.8) (358.9) Capital and Financial Account 308.2 422.9 688.5 589.3 630.7 Net errors and omisions 71.2 (46.1) 220.1 (64.3) (94.5) Overall Balance 90.4 150.5 742.8 186.2 177.4 Change in Reserves () = Increase (90.4) (150.5) (742.8) (186.2) (177.4) TOTAL PUBLIC DEBT (USD mn) Total public debt … … … … … Domestic debt outstanding … … … … … Long term … … … … … Short term … … … … … External debt outstanding 1,884.7 1,247.2 863.1 657.3 1,049.1 Debt Service 49.2 35.9 13.0 2.7 0.9 Amortisation 30.0 24.0 5.8 1.9 0.6 Interest Payments 19.3 11.9 7.2 0.7 0.4 External debt service as % of exports of goods 10.0 6.5 2.3 0.3 0.1 AVERAGE EXCHANGE RATE Haitian Gourde(s) per US dollar 38.41 40.76 40.17 40.32 41.64 Data for 2012 are provisional.  (ii) COUNTRY DATA: HAITI 2008 2009 2010 2011 2012 POPULATION Mid-Year Population ('000) 9,638.3 9,765.2 9,896.4 10,032.9 10,173.8 Population Growth Rate (%) 1.3 1.3 1.3 1.4 1.4 Crude Birth Rate 27.5 27.1 26.8 26.4 … Crude Death Rate 9.3 9.1 9.0 8.8 … Infant Mortality Rate 83.8 81.7 175.1 77.6 75.6 EDUCATION Net School Enrollment Ratio (%) Primary … … 76.0 … … Secondary … … 46.0 … … Pupil-Teacher Ratio … … Primary … … 45.8 … … Secondary … … 49.0 … LABOUR FORCE Unemployment Rate (%) 37.1 … … … … Male … … … … … Female … … … … … Participation Rate (%) … … … … … Male 59.1 59.4 59.8 60.1 … Female 70.0 70.2 70.5 70.6 … 1970 1980 1990 2000 2010 INDICATORS OF HUMAN DEVELOPMENT HEALTH AND EDUCATION Life Expectancy at Birth (years) 48.5 … … 51.5 … Male … … … … … Female … … … … … Dependency Ratio … … … … … Male … … … … … Female … … … … … Adult Literacy Rate (%) … … … 54.1* … Male … … … 60.1* … Female … … … 48.6* … Human Development Index 0.442 0.472 … … … HOUSING AND ENVIRONMENT Households with piped water (%) … … … … … Households with access to flush toilets (%) … … … … … Households with electricity (%) … … … … … Environmental strategy or action plan (year prepared): Source(s): Haitian Institute of Statistics;Bank of the Republic of Haiti Data as at November 22, 2013  GRANT AND PROJECT SUMMARY Financial Terms and Conditions: Grantee: The Government of the Amortisation Period: NIL Republic of Haiti (GOH) Grace Period: NIL Executing Agency: Ministry of Education Disbursement Period: 27 months and Vocational Training September 30, (MENFP) 2014 – December 31, Implementation Agency: - 2016 Source: Amount: USD (mn) Caribbean Development Interest Rate: NIL Bank (CDB) Special Funds Resources (SFR) 11.00 Commitment Fee: NIL World Bank (WB) 70.00 Counterpart: 1.3 Total: 82.3 Project at a Glance: Project Outcome/Description: The outcome of the Project is improved access to Early Childhood Development (ECD) and primary education for poor children ages 3–12 in under-served populations; and enhanced equity, quality and governance of the education sector. The project will support the implementation of elements of the Government’s Operational Plan for Education (OPE) in collaboration with WB. The Project constitutes the second phase of the Education for All Project and consists of the following four components: (a) Component 1: Improving Access to Quality Primary Education: (i) Improving the quality of the Tuition Waiver Programme; (ii) Improving basic educational services in selected Rural Communities; and (iii) Strengthening the Recipients’ School Health and Nutrition Programme. (b) Component 2: Support to Teaching and Learning: (i) Expanding the number of certified teachers, including preschool teachers; and (ii) Improving ECD and primary school performance. (c) Component 3: Institutional Strengthening and Governance: (i) Building the institutional capacity of MENFP to improve service delivery and overall educational governance; and (ii) Strengthening of public-private partnerships. (d) Component 4: Project Management, Monitoring and Evaluation: (i) Strengthening MENFP’s monitoring and evaluation capacity.  CDB’s Results Framework: Indicator1 2015 2016 Primary and Secondary classrooms built or upgraded according to minimum standards. 16 16 Teachers trained or certified in primary or secondary education. 636 636 Students benefitting from improved physical classroom 41,300 38,000 conditions, enhanced teacher competence. Exception to CDB policies: Where funds of the Special Development Fund (Unified) (SDF [U]) resources are being utilised together with the WB to finance any component of the project, a waiver of CDB’s procurement procedures be granted to permit services to be financed from CDB’s SDF (U) to be procured in accordance with World Bank’s procurement procedures and also to be procured from WB-eligible countries not eligible for procurement from CDB’s SDF(U). 1 Level 2: CDB/SDF Contribution to country and regional outcomes: key outputs.  1. STRATEGIC CONTEXT AND RATIONALE GRANT REQUEST 1.01 GOH, by letter dated November 25, 2013, has requested financial assistance in expanding access and improving the quality of basic education in Haiti. The project, Phase II of the Education For All (EFA) programme, financed by CDB in collaboration with WB since 2007-08, will build on the outcomes of Phase I which focused on increasing access and quality in the system. CDB provided grant resources of $10 mn in December 2007 in support of the implementation of the first phase of EFA programme. An additional grant of $10 mn was provided in December 2010 to respond to the needs of the education sector in the aftermath of the earthquake of 2010. SECTOR ANALYSIS Macroeconomic Context 1.02 The Haitian economy continues to recover from the January 2010 earthquake, albeit at a slower pace than anticipated. The main factors in this under-performance have been lower than expected implementation rates on public investment projects and the impact of natural disasters on agricultural output, all within the context of an ongoing cholera outbreak. Nevertheless, credit to the private sector continues to grow at a brisk pace, while the banking sector remains sound and profitable. Prudent macroeconomic policies have helped to maintain single-digit inflation rates, despite food price pressures and slight depreciation of the exchange rate. They have also helped to limit expansion of the fiscal deficit, despite lower than budgeted revenue collections and grant inflows. Current estimates are for growth of 3.4% in fiscal year1/ (FY) 2013, with projections for acceleration to 4.5% in FY 2014. This projection assumes the realisation of previously anticipated rebounds in agriculture and construction and the continuation of recent declines in food prices. It is, however, subject to enduring socio-political and natural as well as anthropogenic disaster risks, and the risk of a potential slowdown in global growth and/or resurgences in international commodity prices. A more detailed description of the macroeconomic context is attached at Appendix 1.1. Social Context 1.03 Haiti’s population increased from about 9.8 mn in 2010 to 10.2 mn (2012 est.), thereby representing an average growth rate of 1.4% per year over the period 2. The population is distributed among 10 geographic regions3 and is essentially youthful with about 35% being less than 15 years old. 4 Due to high rural to urban migration, the urban population has been growing at the phenomenal rate of 3.7 % per year, which is about three times the national average and substantially greater than the rural population which has been declining at a rate of about 1.7% in the last three years. As a result, the urban areas have in recent years overtaken the rural areas as having the majority (55%) of the population 5, and this trend will continue unless the push factors associated with rural to urban drift, viz high unemployment and associated poverty levels and limited access to basic social services, are adequately addressed. 1/ The fiscal year runs from October of one year to September of the following year. 2 World Bank, World Development Indicators 3 The geographic regions are: Artibonite, Center, Grand ’Anse, Metropolitan/West, Nipples, North, Northeast, Northwest, South and Southwest. 4 http://data.un.org/CountryProfile.aspx?crName=Haiti 5 World Bank, World Development Indicators  -2- 1.04 The rural areas are characterised by a large number of small villages spread over a very wide area in which many of the residents are engaged in subsistence farming for their livelihood. Therefore, the issue of poverty, which is linked with factors of limited access to food and basic social infrastructure, such as schools, is of particular concern for the rural areas. The country’s Multi-dimensional Poverty Index (MPI)6 indicated that in 2006 a very large proportion of Haiti’s population (54%) was multi-dimensionally poor7, 33% were in severe poverty and 18.8%, vulnerable to poverty8. It also highlighted that poverty levels were much higher in the rural areas than in the urban areas. Rural poverty levels ranged from 84% of the population in the Central region to 59% in the South, as compared to 37% of the population in the urban Metropolitan/Western regions. The rural areas also had much higher proportions of the population in severe poverty and those vulnerable to poverty. 1.05 With the massive damage suffered by the country from the 2010 earthquake, living conditions deteriorated further to the extent that at one point about 1.5 mn people were living in tents and other forms of temporary shelter. These residents were exposed to high risks of disease infestation and severe illness and women were both vulnerable to, and victims of sexual violence. In response, many were forced to move back to the villages and small towns in the rural areas during the initial post- earthquake period. With the housing situation having improved since then, they are quickly moving back to Port au Prince and to the surrounding urban areas where many are engaged in a variety of income generating activities in the informal sector. 1.06 Notwithstanding these efforts, the overall quality of life indicator “years of schooling” indicates that very large segments of the population are experiencing very poor living conditions. Median years of schooling, is low for both males (3.2 years) and females (2.8 years). Therefore, based on the inverse relationship between education and poverty, this suggests that many men and women are educated at sub- optimal levels, and as such, might not be adequately equipped to achieve significant improvement in their living standards. The effects of this situation is even more pronounced in the rural areas where the median years of schooling for both men and women is about one–third of what obtains in the urban areas9. Additionally, the low level of women’s education was found to be correlated with maternal mortality, as well as child mortality and morbidity. Stereotypical gender roles, the cost of a private school education and an unequal division of labour have also represented significant barriers for low-income girls and women to receive a quality education. Efforts to address these issues and to improve access to education for men and women in isolated and under-served rural communities therefore, are important to reducing chronic poverty and vital for enhancing overall living conditions in these communities and the country as a whole. 6 Oxford Poverty and Human Development Initiative, Country Briefing: Haiti, Multidimensional Poverty Index (MPI) At a Glance, Dec. 2011 7 A person is identified as poor if he or she is deprived in a least one third of the 10 MPI indicators. Those identified as being “vulnerable to poverty” are deprived between 20% and 33%, and the “severely poor” are deprived in over 50%. 8 The MPI uses 10 indicators to measure poverty in three dimensions: education, health and living conditions. Education – Year of Schooling and School Attendance; Health – Child Mortality and Nutrition; and Living Conditions – Electricity, Sanitation, Drinking Water and types of Flooring, Cooking Fuel and Assets. 9 Republic of HAITI, Investigation Mortality, Morbidity and use of Services EMMUS-V, Ministry of Public Health and Population, HAITI 2012  -3- Education Context 1.07 The education sector in Haiti prior to the earthquake was under-resourced and of low quality. There was limited access at all levels and education services were provided mainly by the private sector, with public institutions providing accommodation for fewer than 20% of the children enrolled at the primary level. In addition, more than 90% of education establishments were private or non-public. Almost 75% of the non-public schools lacked accreditation or licensing, with the result that their outputs were of questionable quality. The system was also characterised by low enrolment rates with approximately 40% of primary school-age children nationally, not enrolled in school. The low and inequitable access resulted from the high cost of school fees and the absence of appropriate infrastructure, especially in the rural areas. Although fees averaged just about USD90 annually per child, many poor parents were unable to pay these fees and other school expenses which have been estimated to cost more than 40% of their incomes. Dropout rates were high (as high as 25%) and few children transitioned to the secondary level. Poor quality was also reflected in the low performance on national examinations and high repetition rates. Few students at the Grade 3 level (8–9 years old) could read more than the benchmark 23 words per minute in either French or Creole. There were also issues with poorly trained and unqualified teachers; insufficient teaching and learning materials; outdated curricula; weak school management systems; and insufficient supervision of the large non-public education sector. Malnutrition and poor health also contributed to low participation and underperformance, as many children were simply too hungry and/or lacked the energy needed to focus on learning. 1.08 Further, only about 40% of primary school enrolment was female. Poor families would sometimes sacrifice to send boys to school to the disadvantage of girls, who were also more likely to be withdrawn from school to assist with chores or sent to work. There was also unequal access across the departments ranging from 41%–72% at the primary level and 8%-33% at the secondary level. The South-west, North- west and the Central departments were especially disadvantaged. However, recognising that education is a vehicle for social mobility, many poor parents still strived to find the resources to enroll their children in school, despite the often inferior quality. 1.09 Since the earthquake, Haiti’s education sector has faced tremendous challenges, including significantly diminished capacities for managing the sector. The loss of schools, teachers and staff from MENFP has compounded the problems of a sector which already faced a shortage of school infrastructure, trained teachers, and effective governance mechanisms. Rebuilding the education system has been identified as a policy priority for GOH with the achievement of Universal Primary Education (UPE) at the heart of those policy priorities. The priorities have been set out in a national OPE 2010-15, approved by the Haitian Parliament, and formally endorsed by the education donor community in Haiti, including CDB. The OPE is aligned with Haiti’s EFA Strategy and the areas being supported by the donor community. Appendix 1.3 includes a summary of the priorities of the OPE and the agencies supporting each policy objective. 1.10 A National Education Fund (FNE) to support the attainment of UPE through expansion of public- private partnerships, and re-asserting the state’s role in governing the sector, has also been created. The Fund, established in May 2011, seeks to mobilise resources to educate the most disadvantaged students. It is financed primarily through levies placed on telephone calls and money transfers terminating in Haiti. The Bank of the Republic of Haiti has been tasked with managing FNE which, at March 2013, was reported to have reached almost USD50 mn. To date however, no interventions undertaken have been supported by FNE since the legislative process establishing its regulatory framework still has to be completed.  -4- ECD and Multi-Grade Education 1.11 ECD is critical in building a strong foundation for later educational development. ECD in Haiti is overseen by the Pre-school Education Management Bureau (BUGEP), which is under-resourced and therefore not able to adequately regulate the sub-sector. As in the primary sub-sector, ECD is also predominantly a non-public provision with similar issues, including low teacher quality and large pupil teacher ratios. Both of these issues render the provision as a child care service, rather than preparation for formal schooling. In addition, since ECD is not a free provision, it is often not accessible to children from poor and vulnerable families. This situation is even more acute in rural areas, where there are few opportunities for any level of schooling. Since the low levels of achievement in primary education may be influenced by the limited opportunities for ECD, it is critical that the provision of school infrastructure and education services, particularly in the rural areas, be expanded to include the significant number of three to five year olds in rural communities. 1.12 Primary education commences formally at six years old, but a large percentage of students, begin school later (usually at eight years old). As a result of the absence of physical space, such students are often placed in classes with multiple other children of varying ages. These facts, in addition to the high repetition rates, account for the large number of over-aged students who end up in multi-grade classrooms and who eventually drop out since teachers are unprepared to deal with multiple ages and/or multiple levels of development in the same classroom. At the inception of EFA in 2007–08, the project made provision to address the needs of such students through the delivery of multi-grade programmes in a number of schools. However, this sub-component was never delivered. According to WB’s Implementation Completion Report (ICR), there was inadequate capacity in the implementation agency. Given the link between illiteracy/lack of education and the proliferation of criminal activity, and given the fact that no country has achieved sustained growth without the achievement of UPE, it is imperative that programmes are developed to meet the needs of these children. Further details on the status of the education sector is attached at Appendix 1.3. Education for All 1.13 In 2007, Haiti adopted the EFA resolution and the Dakar Framework for Action, agreeing, inter alia, to “promote EFA policies within a sustainable and well-integrated sector framework clearly linked to poverty elimination and development strategies”. The Dakar Framework for Action noted that national sector plans were expected to address: “problems associated with the chronic under-financing of basic education by establishing budget priorities that reflect a commitment to achieving EFA goals and targets at the earliest possible date, and no later than 2015, and include clear strategies for gender equity and for meeting the special problems of those currently excluded from educational opportunities”. 1.14 When the EFA programme was developed in 2007-08, it was proposed as a programme that would be an integral component of the National Education for All Strategy which would assist GOH in its efforts to achieve its goals for basic education across the country. EFA was developed as a three phase programme, with each phase lasting approximately three to four years, providing specific assistance to various identified areas of need in each phase. These phases were as follows: (a) Phase I: EFA ($40 mn from WB, plus $20 mn from CDB), 2007-2010 Phase I would support implementation of the National EFA Strategy, specifically by ensuring educational access for 135,000 poor children, aged 6-12, currently out of school (about 27% of the estimated 500,000 children aged 6-12 were not in school). The main thrust would be financing of per student subsidies by MENFP, disbursed to SMCs of accredited schools, to subsidise tuition fees and educational materials for out-of-school  -5- children. This would be complemented by increased output of new teachers and institutional strengthening of SMCs, carried out by qualified NGOs and school inspectors. To improve quality, the project would pilot student-centered learning programmes adapted for multigrade classrooms, support student health/nutrition programmes, and strengthen capacity to derive early indicators (Grade 2) of learning outcomes, particularly basic literacy. Governance of the sector would be improved through intensive capacity-building of the Department of Administrative Affairs (DAA), NEPO, NSFP and DAEPP. Critical to Phase I (and subsequent phases) would be the execution of a medium-term public expenditure framework for education, supported by the EFA Fast Track Initiative (FTI), EGRO II and the HIPC debt-relief initiative. (b) Phase 2: EFA and Early Childhood Development (ECD) ($70 mn from WB and 11 mn from CDB), 2010-2012 This phase would: (i) expand financial support for implementation of the EFA strategy to an additional 75,000-100,000 children (depending on financing available and progress in Phase I), (ii) provide funding for school infrastructure; and (iii) increase access to integrated ECD services (nutrition, vaccination, health monitoring and education). Successful execution of the medium-term public expenditure framework for education would mean GOH resources would assume financing of the first cohorts of 135,000 children, supported under Phase I. Investments in instructional quality, literacy assessment, SMCs and sector governance would continue. (c) Phase 3: Basic Education Services and Evaluation ($15-25 mn), 2012-2015 This phase would support completion of the EFA Strategy by 2015, in collaboration with increased government funding and funding from other donors under the EFA-FTI public expenditure framework. A third cohort of 75,000-100,000 children would be targeted for per student subsidies (depending on financing available and progress in Phase II). Access to ECD services would be expanded, and support to the third cycle of basic education (Grades 7-9) would be considered. Particular attention would be paid to strengthening of school supervision and evaluation capacities, to fully assess programme outcomes and define future strategies for expanded and improved human development services for the poor. 1.15 The EFA Project–Phase I was supported by CDB, WB, the European Union and the Canadian International Development Agency now the Department of Foreign Affairs and Trade Development (DFATD). All the outputs in relation to the tuition waiver and school feeding components were achieved and in some cases exceeded. However, the ICR of WB, finalised in November 2012, assessed the project as marginally satisfactory on account of the non-implementation of the multi-grade programme, a key factor for improving quality of education in Haiti. The ICR indicates that the project was a high-risk operation in a high-risk country, but with potentially high returns. Further, expected outcomes may have been ambitious given the nature of the environment and the lack of capacity in Haiti, especially after the occurrence of the earthquake. 1.16 The daily supervision of the project was undertaken by the WB on behalf of all donors. However, given CDB’s experiences in the implementation of education projects across the region, the Bank had particular interest in the execution of specific sub-components, among them, the multi-grade teaching programme. CDB therefore fully supports the rating assigned to performance on this component by WB’s ICR. CDB has also benefitted from a number of lessons which will be applied in the Bank’s financed  -6- activities in Phase II. These include the modalities for teacher training and the need to enhance implementation support. A summary of the results of EFA Phase I is attached at Appendix 1.4. 1.17 Phase II of EFA, already commenced by WB, and proposed for support by CDB between 2014 and 2016, places emphasis on expanding financial support for an additional 75,000-100,000 children; providing funding for school infrastructure in under-served rural communities; and increasing access to integrated services (nutrition, vaccination, health monitoring and education). Teacher training, which was an integral part of Phase I, remains an area of significant focus. In Phase I, over 3,000 teachers were trained but only approximately 400 of them have been assigned to schools for various reasons, including, the reluctance and/or inability of non-public schools to pay the salaries required for trained teachers, the reluctance of currently assigned teachers to opt for training given the fear of losing their jobs, and unwillingness of some persons to accept positions in rural areas which are in need of teachers. This means that even though the project was successful in achieving its target output, the outcome has not been realised, since the system has not benefitted from the knowledge and skills of most of the teachers trained. As a result of the significant need for teachers across the country, (estimated to be about 100,000 over the next 10 years), pre-service training must be continued. However, CDB recognises the critical importance of improving instructional quality and student outcomes in the short term, and as a result, the Bank’s financed components will address in-service training as the main modality for ensuring a greater likelihood of current students benefitting from enhanced teacher quality. 1.18 In addition, in providing support to communities, the main emphasis will be on providing educational infrastructure for rural communities currently without schools. WB is focusing on the provision of classrooms for the first grade of primary schooling. However, demographic information suggests that there are also significant numbers of ECD-aged and over-aged children residing in the communities identified for support. Given the benefits to the individuals and the country when these children are educated, CDB will also provide infrastructure to support their inclusion. Country Sector Strategy 1.19 The achievement of UPE is at the centre of the strategy of GOH to rebuild the education system in Haiti. In partnership with donors, GOH has developed OPE to guide the rebuilding of the sector. The Plan calls for financing of education sector development across nine strategic themes, which are as follows: (a) restructuring and reinforcing of education sector governance; (b) improving the quality of instruction; (c) improving training and development of the education sector staff; (d) providing support to ECD and Primary Education; (e) establishment of the four-year secondary school system; (f) strengthening and extending the network of vocational training centres; (g) strengthening and modernising the higher education sector; (h) rehabilitating and strengthening special education; and (i) improving adult literacy (15-50 years old). 1.20 EFA Phase II supports implementation of the OPE goals in four areas: (a) restructuring and reinforcement of education sector governance; (b) improving the quality of instruction; (c) improving training and development of education sector staff; and (d) providing support to ECD and Primary Education.  -7- LINKAGE OF PROJECT TO CDB’S COUNTRY SECTOR STRATEGY AND POVERTY GOALS 1.21 The proposed intervention was included in the Country Strategy Paper (CSP 2013-16) approved by CDB’s Board of Directors on May 20, 2013. It is a second intervention designed to assist GOH in providing education for all, and achieving the education commitments of the Millennium Development Goals. The project responds to a key pillar of the CSP, that is, “Social Rebuilding through the provision of increased and equitable access to quality basic education and training”. It also incorporates the principles of development effectiveness through the harmonisation of interventions with WB to achieve higher levels of efficacy, and by assuring alignment with the stated objectives of GOH as espoused in the OPE. 1.22 CDB’s involvement in the education sector is informed by its Education and Training Policy and Strategy. This policy/strategy supports investments for improving access to basic education through the enhancement of the teaching/learning environment, improving efficiency and effectiveness and strengthening institutional capacity. The project is within the ambit of CDB’s Sector Strategy and is also consistent with CDB’s: (a) Strategic Objective of fostering inclusive social development; and (b) Corporate Priority of improving the quality of, and access to, education and training. CDB has developed a significant level of experience and expertise in developing education interventions which address some of the issues being experienced in Haiti. The Bank has been particularly active in ECD and primary education and has accumulated a number of best practices and knowledge products which can be used to inform the success of similar projects in the future. This knowledge, along with targeted implemented support, will add value to the CDB-financed interventions in this phase of the project. RATIONALE 1.23 The low level of education of Haiti’s population remains a major factor in its continuing state of poverty and the attendant social problems which plague the country. Therefore, at the heart of poverty reduction is t h e provision of basic education for all. However, a holistic approach to educational development needs to be adopted. Children must be adequately prepared to benefit from formal education; therefore they must be exposed from an early age to quality early stimulation and development programmes. In addition, they must also have access to adequate nutrition which allows them to achieve the developmental milestones which contribute to learning. Further, the improvement of instructional quality is a necessity, if children, having been appropriately prepared, are to achieve the full benefits of being in the system. However, modalities for achieving instructional quality must be evaluated to ensure that the outcomes expected from having better trained teachers are derived by the system. 1.24 Equally important is the need to strengthen the capacity of MENFP to manage the system, including the evaluation of instructional quality, analysis of learning outcomes; and to more fully engage communities in promoting and sustaining all of the education development goals. Close partnerships with the already active private sector in achieving EFA and other sector goals remains an imperative; however, appropriate mechanisms need to be instituted to strengthen collaboration for policy dialogue, education sector planning, and monitoring and evaluation. Significant gains have been realised from the implementation of the first EFA project, but substantial needs remain to be addressed in the next phase of the project if it is to serve as a vehicle for the reduction of poverty in Haiti.  -8- 2. PROJECT DESCRIPTION PROJECT OUTCOME 2.01 The outcome of the Project is improved access to ECD and primary education for poor children ages 3–12 in under-served populations; and enhanced equity, quality and governance of the education sector. The project will support the implementation of elements of the Government’s OPE in collaboration with WB. PROJECT DESCRIPTION 2.02 The project will increase access to quality education by lowering the costs for poor families to send their children to school, and by stimulating the supply of schooling in Haiti’s remote areas, using a community-based approach. Expanding the Government’s school health and nutrition programme will also serve to increase access and attendance. The quality of instruction will be improved through support to quality pre-service and in-service teacher training programmes and an expansion of effective literacy strategies. Capacity building will be an essential component to ensuring the long-term sustainability of the Government’s OPE, including strengthening local accountability of teachers and schools to parents and authorities, for example, through the development and use of local tools for student assessment. As with the EFA Phase I, it is expected that other donors will provide support to expand outputs in additional areas. A detailed description is included at Appendix 2.1. 2.03 The Project comprises four components: (a) Improving Access to Quality ECD and Primary Education; (b) Support to Teaching and Learning; (c) Institutional Strengthening and Governance; and (d) Project Management, Monitoring and Evaluation. (A) Improving Access to Quality ECD and Primary Education Enhance the Tuition Waiver Programme 2.04 Tuition waivers will be provided to allow for approximately 120,000 students to complete the six-year cycle of primary education. Among the proposed improvements to the programme under EFA–Phase II is a continued evolution towards a results-based model, the emphasis of greater accountability of participating schools, and the strengthening of sanctions for non-compliance. Other improvements include closer linkages with teacher training, particularly in literacy; a clearly defined graduation from the programme for participating schools; and the gradual incorporation of the tuition waivers into the education budget of GOH. The sub-component will also strengthen SMCs responsible for managing transfers. SMCs will be required to provide disaggregated data on students benefitting from the sub-component. Support to Communities 2.05 This sub-component will channel grants and provide training to communities to offer basic educational services to school-age children (pre-school, first grade and multi-grade), by constructing and rehabilitating rural schools in 200 communities. It is expected that 782 classrooms will be constructed. Communities will be selected according to three criteria (i) a demonstrated dearth of schooling,(ii) a minimum school age population (25 children); and (iii) a minimum level of community organisation/social capital. Community-based teachers’ salaries will be co-financed by the MENFP’s budget in a gradual  -9- manner such that 100 percent of salaries will be covered at Project end, thereby ensuring the sustainability of the new partnership model. Selected representatives from 200 communities, including members of the SMCs, will benefit from training in school management, quality assurance, procurement, information dissemination and construction supervision, to build community capacity in each of these areas. Training will be designed to ensure that all relevant gender sensitivity issues are addressed, including the necessity to disaggregate data during reporting. This model improves on existing community-based education activities in Haiti which generally do not involve the MENFP and will incorporate financial mechanisms used in communities where the WB and CDB supported PRODEP/PRODEPUR Projects are active. The model is designed to strengthen community ownership of the process. School Health and Nutrition 2.06 This sub-component will finance operating costs of the National School Feeding Programme (Programme National des Cantines Scolaires) (PNCS). Implemented by the PNCS, the programme is delivered by Non-governmental Organisations (NGOs) subcontracted by the MENFP through the PNCS. Service providers will deliver a morning snack and a hot meal daily to approximately 76,000 children annually in participating schools. The programme also contains a de-worming component with the distribution of the appropriate micro-nutrients to all schools twice a year. Institutional strengthening activities will also be included. (B) Support to Teaching and Learning Expand Teacher Training 2.07 This sub-component is intended to increase the number of certified teachers (including pre-school teachers) by 1,200 per year, with a priority on accepting applicants from areas identified as having minimal access to education services. The sub-component will finance goods, training and consultancies with service providers. Working in partnership with teacher training institutes (Instituts de Formation des Maîtres) (IFMs), the programme provides one year of intensive institution-based training, followed by two years of classroom-based practice. Improvements in the pedagogic content of the curriculum used by the Accelerated Teacher Training Programme (Formation Initiale Accélérée) (FIA) will be made in the first year of the Project and in the following years, as indicated by student-teacher performance. Participants will receive stipends during their years as trainees, and upon graduation are expected to be absorbed into schools participating in the tuition waiver and community-based programme, as well as schools being absorbed into the state’s programme of nationalising of community schools, thereby increasing the quality of instruction in participating schools. Teacher training curricula will incorporate all relevant gender sensitivity issues. 2.08 Having benefitted from the evidence of Phase I, CDB has recognised that while over 3,000 teachers were trained the system is yet to see the full benefits. Therefore, while WB will in the main concentrate on continuing to support the pre-service programme since there is need for approximately 100,000 teachers over the next 10 years, CDB will concentrate its resources on in-service training to ensure that immediate benefits can accrue to the system. CDB will provide specific implementation support to this sub- component. Support to Reading Instruction and Distance Education 2.09 This sub-component will support the provision of qualified community instructors in rural areas through training, to effectively teach children starting in pre-school and Grade 1 in target communities, to read. The sub-component will finance goods, training and consultancies. Activities relating to the strengthening of the MENFP’s approach in reading instruction, including policy development, programme  - 10 - development, and implementation, will be financed. In addition to pre-service and in-service education provided in partnership with the IFMs and MENFP, a Teacher’s Guide will be developed with lesson plans for each day of class. The proposed curriculum will include Lekti se Lavni (reading is the future), a reading instruction approach aimed at children in early grades already in use by MENFP. Pre-school education will also be provided in larger communities, in collaboration with the United Nations Children’s Fund. The sub-component will also support improved educational quality using distance education technologies, including supporting the development of national policies around distance education, and modernising the distance education programme for the benefit of community-based teachers, FIA teachers and others using new technologies. (C) Institutional Strengthening and Governance Modernisation and Transformation of the MENFP 2.10 This sub-component will continue the work of modernising and transforming some of the MENFP’s key units at the central and decentralised levels, with new operational modalities, begun under EFA Phase I. The sub-component will finance goods, training and consultancies. At the central level, the sub-component will support the Administrative Affairs Office (Direction des Affaires Administratives) (DAA); the Directorate of Support to Private Education and Partnership (Direction d’Appui à l’Enseignement Privé et au Partenariat) (DAEPP; the Directorate for Basic Education (Direction de l’Enseignement Fondamental) (DEF); the Professional Development Unit (Direction de la Formation et du Perfectionnement) (DFP); and the Directorate for School Infrastructure (Direction du Génie Scolaire) (DGS). Areas in which the Project will support these central units include updating of accounting systems, training in information management, delivery of communications strategies, training in procurement procedures, creation of databases and training in data collection, training in analysis, and reporting. A special focus will be placed on strengthening the DGS in the area of environmental safeguards, specifically the national application of the Environmental and Social Management Framework (ESMF), including the provision of technical assistance and transport and communication equipment. Special focus will also be placed on helping MENFP to collect disaggregated data to track the achievement of project indicators. 2.11 With respect to the Departmental Directorates of Education (Directions Départementales de l’Education) (DDEs), this sub-component will strengthen their ability to (i) provide close support to schools, teacher training centres and communities, and (ii) supervise the implementation of OPE activities at the local/regional level. The support to the DDEs will consist of a programme-based budget between the MENFP and regional units (including beneficiary assessments), and will include the stipulation that all schools be inspected at least once per year. Supporting Public-Private Partnerships and Community Involvement 2.12 This sub-component will aim to further the dialogue and collaboration between the public and non- public sectors (including communities), and foster the establishment of public-private partnerships through the setting up and funding of the National Education Partnership Office (Office National de Partenariat en Education) (NEPO). It will also support the establishment of Municipal Education Commissions (MECs), as called for in the OPE, to integrate local authorities and community representatives into the education management system. MECs will comprise representatives from local government, civil society and the decentralised offices of the MENFP, and will help to keep the general public informed about national education initiatives, identify excluded populations, and serve as a vital link between service providers, families, and the State.  - 11 - (D) Project Management, Monitoring and Evaluation 2.13 This component will support increased capacity on the part of MENFP to implement the Project. It will aim to further integrate the Project team into the national structures, and strengthen the overall capacity for the management and evaluation of Project activities as outlined under the OPE. PROJECT STATUS 2.14 WB approved financing to the project in December 2011 and it became effective in April 2012. A number of activities have commenced, including: (a) the tuition waiver programme - 894 schools identified and participating in the programme; (b) pre-service teacher training-1,297 student teachers are completing the first year and 1,244 are in the first year of institutional training; (c) Seventy communities have been identified to participate in the community-based schools component; (d) One hundred and seventy-one thousand school children enrolled in tuition waiver programme (additional schools have been added, however, targets have not been revised). 2.15 Recognising the need to focus more on quality, ECD, and multi-grade programming, CDB, in addition to the items to be jointly financed with WB, will give specific support to: (a) provision of classrooms for ECD and multi-grade students; (b) gender sensitive and responsive teacher training for ECD and multi-grade teachers; and (c) development of gender sensitive resources to support the teaching of multi-grade students. 2.16 The specific CDB funded activities are set out in Table 2.1 below: TABLE 2.1: SUMMARY OF CDB FINANCED ACTIVITIES COMPONENT Improving access to quality ECD and Primary Education Building and Civil Works  Construction of four community schools with eight classrooms and one kitchen each. Furniture and Equipment  Provision of school furniture and kitchen appliances and utensils. Tuition Waivers  Provision of tuition waivers representing 42,000 person years to 20,000 students in Artibonite Department. School Health and Nutrition  Provision of school feeding and deworming for 6,000 students annually.  - 12 - Community-based training Support to Teaching and Learning Recruitment/Payment of teachers for community schools Training  In-service training and professional development for community school teachers.  In-service training and professional development for 300 ECD teachers in the South;  In-service training and professional development in multi-grade methodologies and strategies for 300 teachers in the South. Teaching/Learning Materials  Provision of teaching/learning materials for community schools.  Design and production of materials to support multi-grade teaching. Strengthening supervision and evaluation of instruction  Instructional leadership training for principals.  Monitoring and Supervision Training for selected MENFP officers  Supervision support for new community schools.  Study tours for BUGEP officers and officers overseeing multi-grade programmes. Institutional Strengthening and Governance of MENFP  Capacity Assessment.  Change management training.  Training in monitoring and evaluation (M&E) of instructional quality.  Training in leadership of system for MENFP central and departmental leadership teams.  Study tours to observe best practices in planning and managing education systems. Project Management, Monitoring and Evaluation Contingencies TOTAL  TABLE 2.2: EDUCATION FOR ALL PROJECT PHASE II – REPUBLIC OF HAITI DESIGN AND MONITORING FRAMEWORK (cont’d) Design Summary Performance Targets/Indicators Data Sources/Reporting Use of Information Assumptions and Risks Mechanisms Project Impact: 1. Increase in completion rates at the Labour and Education To assess the quality and Assumptions: A better educated population with the primary level from 66% to 90% by Statistics. effectiveness of basic 1. Adequate opportunities to requisite knowledge and competences to 2020. education. provide post-primary contribute more effectively to the social 2. Fifteen percentage points increase in Census data. education and training. and economic development of Haiti. students continuing to secondary 2. Political stability. education by 2020. 3. Improved economic growth. 4. No adverse natural hazard events. Project Outcome 1. Percentage of children enrolled in MENFP Assess progress towards Linking Outcome to Impact The outcome of the Project is improved participating schools for more than one achieving overall goal. 1. Retention of trained teachers access to ECD and primary education for year reading at grade level in grade Technical Audit by and other staff in the education poor children ages 3–12 in under-served three increases from 16% to 20% by independent monitoring Assess the quality of system. populations; and enhanced equity, 2017. agency. instruction and student 2. Continued support to education quality and governance of the education 2. Percentage of community teachers DAEPP and DEF. learning. sector by donor community. sector. financed by Haitian Government is at least 95% by 2017. 3. 120,000 enrolled through provision of Intermediate Outcomes tuition waivers by 2016. -13- 1. Reduction in drop-out rates in 1. Drop-out rate declines from 25% to MENFP Monitor progress 1. Training of MENFP is participating schools. 10 % by 2015. towards achievement of effective 2. Teachers implementing Lekti se 2. 300 teachers implementing Lekti se Project Reports. outcomes. 2. School feeding and de- Lavni. Lavni by 2014. worming programme is 3. Schools inspected by MENFP. 3. MENFP inspects 75% of schools by Teacher Appraisal effective 4. Communities receiving grants. 2015. Reports 3. Regular school attendance by 5. Qualified teachers from project 4. By 2016-400 communities receive SMC records. children. intervention. grants. 5. By 2016-3,600 qualified teachers. Project Outputs Linking Outputs to 1. Tuition waiver programme 1. No. of schools participating in Project Reports. Tracks implementation Outcome implemented. tuition waiver programme - 898 by MENFP progress. 1. Availability of counterpart 2. Nutrition/health programme 2016. Supervision Reports. staff to work with consultants. implemented. 2. Children covered by nutrition/health Site visit reports. Monitors compliance and 2. Availability of relevant staff to 3. Teacher training programme programme -76,000 annually. project management support the practicum for expanded - in-service/pre- 3. Training of 1,960 teachers per year. effectiveness. teacher training. service. 4. Additional classrooms – 732 by 3. Availability of NGOS to 4. Classroom built/upgraded. 2016. manage school feeding 5. Training/capacity 5. Training events for MENFP, SMCs, programme particularly in development of MENFP/SMC NGOs - 100 by 2016 in data remote communities. implemented. collection and analysis. 4. SMCs are effective.  TABLE 2.2: EDUCATION FOR ALL PROJECT PHASE II – REPUBLIC OF HAITI DESIGN AND MONITORING FRAMEWORK (cont’d) Inputs: Investment By Sources: ($mn) Linking Input to Output CDB WB GOH TOTAL Project Files WB and Tracks project progress. 1. Resources are available in a CDB Disbursement timely manner. 1. Improved Access to Quality records. 2. Staff released to undertake Primary Education and ECD 8.3 45.0 .65 54.0 MENFP Records. training. 2. Support to Teaching and 3. Appropriately qualified Learning 1.0 10.0 - 11.0 consultants are available. 3. Institutional Strengthening 4. No adverse weather-related and Governance 0.7 4.0 .50 5.2 event. 4. Project Management, Monitoring and Evaluation 0.5 6.0 - 6.5 5. Contingencies 0.5 5.0 0.1 5.6 TOTAL 11.0 70.0 1.3 82.3 -14-  TABLE 2.2: EDUCATION FOR ALL PROJECT PHASE II – REPUBLIC OF HAITI DESIGN AND MONITORING FRAMEWORK (cont’d) Data Source and Report Responsibility Development Impact Baseline Yr1 Yr2 Yr3 Yr4 Yr5 Frequency for collection Project Outcome (cumulative totals) 2012 Percentage of children enrolled in participating schools for more than one year reading at grade level in Grade 3. 16 20 25 EGRA–annual sampling. DEF Percentage of community teachers Annually Ministry of financed by GOH. 0 10 50 90 95 Finance records. DAEPP, MENFP Annually-Independent DAEPP. DCPE, No. of children enrolled in tuition waiver. 80,000 100,000 100,000 120,000 120,000 120,000 monitoring agency. ONAPE Intermediate Outcomes Annually technical audit by DPCE, School Percentage reduction in drop-out rates. 25 25 25 20 10 10 independent firm. Inspectorate No. of Teachers No. of Teachers Implementing Lekti se Annually Technical audit by Implementing Lavni. 0 0 50 100 300 300 independent firm. Lekti se Lavni Percentage of schools inspected at least Annually-technical audit by once per year by MENFP. 0 0 55 65 75 75 independent agency. SMC No. of communities -15- No. of communities receiving grants. 0 0 25 100 300 320 Annually receiving grants Annual-Independent No. of textbooks per student. 4 4 4 4 4 4 monitoring agency. DAEPP, DPCE No. of qualified No. of qualified teachers exiting teachers from programme. 0 900 2,100 2,100 3,500 3700 Annually. programme Project Outputs Annually School No. of schools participating in tuition Inspectorate Independent MENFP waiver programme. 0 720 890 894 894 898 Audit agency. DAEPP No. Children participating in Annually Supervision by health/nutrition programme. 70,000 70,000 70,000 70,000 76,000 76,000 PNCS. PNCS No. of institutions participating in pre- service and in-service training. No. of classrooms built/upgraded. 0 0 100 300 700 732 Annually Project reports. DGS, DDEs No. of training events for capacity building/data analysis. 0 20 60 100 100 Quarterly M &E Reports. DAEPP, DPCE Note: All data are to be disaggregated by sex  - 16 - LESSONS LEARNT 2.17 The project builds on lessons learned in the designing and implementing Phase I of the EFA project. Lessons were also drawn from education projects in other Borrowing Member Countries (BMCs) as well as projects supported by other development partners. The specific lessons learned and incorporated into the project design are: (a) Project design in fragile states needs to strike a balance between technical innovation and operational pragmatism: Reaching the most under-served populations in Haiti requires innovative approaches to surmount the obstacles to service provision, such as the difficult access, the dearth of locally available skilled human resources, and minimal implementation capacity. The guidelines for selection of communities for the implementation of the Community Schools component took this lesson into consideration. (b) Capacity constraints in the public sector need to be complemented with external support which should also be used to strengthen internal capacity. Achieving project objectives requires significant implementation capacity, typically exceeding the capacity of MENFP. Complementing the existing national capacity with external (usually private) implementation mechanisms can help to achieve satisfactory results at a quicker pace. However, private capacity should be utilised to help build internal capacity and therefore, private consultants will be engaged to deliver in-service training to teachers, and train the officers of MENFP whose responsibilities include M&E of teacher instructional delivery. The assignment of private consultants to DAA to assist in building the capacity of the officers assigned there took this lesson into consideration. (c) A results monitoring focus is more effective in triggering disbursement of tuition subsides: According to the original design, the financial transfers to schools for tuition waivers were triggered by the receipt of financial reports justifying the expenditures at the school level. However SMCs, although having received some basic training, have struggled to produce reports of acceptable quality. This resulted in a cumbersome back- and-forth between schools, inspectors and the financial management team of the Project, and ultimately led to significant delays in payments. A more results-based approach whereby transfers are triggered by evidence of children enrolled and textbooks provided was influenced by this lesson. (d) The number of teachers trained in pre-service programmes may not necessarily translate to immediate quality in the classroom: A significant number of the teachers trained in the pre-service programme have not yet been assigned to classes, so students are not benefitting from the skills and competencies which they developed. Even though pre- service training must still be continued to supply the substantial number of teachers required by the system over the next 10 years, employment of an in-service training modality would ensure that persons instructing children on a daily basis have received minimum standards of pedagogical and content development, and that children benefit immediately from the skills and competencies inculcated in the training. CDB’s focus on in-service training was a result of this lesson.  - 17 - 3. FINANCING STRUCTURE AND COSTS 3.01 The project is estimated to cost $82.24 mn and will be financed by WB, CDB and GOH. A summary of the Project Cost and Financing Plan is presented at Table 3.1 and a detailed Project Cost, Financing and Phasing Plan can be found at Appendix 3.1. TABLE: 3.1 SUMMARY PROJECT COST AND FINANCING PLAN – ($’mn) ITEM CDB WB GOH TOTAL 1. Improved Access to Quality Primary Education and ECD 8.3 45.0 0.7 54.0 2. Support to Teaching and Learning 1.0 10.0 - 11.0 3. Institutional Strengthening and Governance 0.7 4.0 0.5 5.2 4. Project Coordination and Evaluation 0.5 6.0 - 6.5 5. Contingencies 0.5 5.0 0.1 5.6 Total Project Costs 11.0 70.0 1.3 82.3 Percentage 13 85 2 100 This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy. 4. PROJECT VIABILITY TECHNICAL ANALYSIS 4.01 The Project design is in keeping with international best practice and is fully consistent with objectives of the Paris Declaration, embracing a programmatic approach and using country systems, wherever possible. The interventions are based on proven approaches from both within Haiti and internationally. For the community-based approach, important lessons were incorporated from similar initiatives, including the WB/CDB financed Community Driven Development (CDD) operations in rural areas in Haiti. For this phase of the project, FIA has been modified, incorporating lessons learned from three years of implementation. The decentralised implementation structure is also in keeping with GOH’s stated plan for rebuilding Haiti by devolving responsibility to various levels of management. 4.02 Haiti does not have an established building code. It is a requirement that construction works be referenced to recognised building codes (American/Canadian/French) and that specific considerations be given to earthquake and hurricane resistance, as the buildings are to be also used as emergency shelters. New engineering design standards have been developed in the aftermath of the January 2010 earthquake. These design guidelines have been endorsed by the donor community and the Ministry of Public Works, Transport and Communication (Ministère des Travaux Publics,Transports et Communications) and will also be used in the design. DGS will design and supervise construction, monitoring compliance of the contractors with the environmental requirements of the designs. DGS has the capacity to carry out its function and currently performs that role in conjunction with WB on this project.  - 18 - ECONOMIC ANALYSIS/FINANCIAL MANAGEMENT RISKS Economic Analysis 4.03 The conventional methods of Cost Benefit Analysis (CBA) and economic rate of return were not applied to the project. This was due mainly to the difficulty in measuring benefits (incremental earnings) for that level of education where the major objective is to improve the learning environment for all students. Although CBA has been used to favourably support interventions in the education sector (the rates of return on education interventions at various educational levels are generally higher than the economic opportunity of capital), theory/research has indicated that early interventions or formal basic education are likely to be more socially and economically profitable than any other form of education. 4.04 The project is designed to enhance access to quality education at the ECD and primary education levels, improve the physical infrastructure and overall teaching and learning conditions of the schools participating in the tuition waiver, school nutrition, and community-based programmes. Further benefits will accrue to the overall education system with the training of teachers, SMCs, MENFP and the operationalisation of NEPO. The combined impact of these interventions will provide a stronger foundation for over 150,000 students at the basic and ECD levels which could lead to a greater proportion of students transitioning to and succeeding in secondary education. This will provide the foundation for the improvement of education at all levels, which, over time, will contribute directly to enhancing the social and economic development of the country. SOCIAL GENDER AND ENVIRONMENTAL ANALYSIS/RISKS AND SAFEGUARDS Social and Gender 4.05 The project is classified as category B under the Bank’s Environmental and Social Review Procedures as the social impacts will be largely positive and no major adverse social impacts are anticipated. The project will expand access to ECD and primary education by poor children in rural areas, improve equity and governance in the education sector and enhance the national school feeding programme. These achievements will impact 120,000 boys and girls and contribute directly to improving the nutrition and overall health and wellbeing of approximately 76,000 students. There will also be an indirect impact on primary caregivers (usually women) by reducing the burden of care and providing access to employment and skills building opportunities. 4.06 The training of local teachers and the programmes to enhance community participation in management of the project, will help to build social and human capital by strengthening the ability of men and women in the rural communities to participate in the development of their school, villages and by extension, their own development. This will result in greater community self-reliance and provide the type of participatory development management skills necessary for accelerating the advancement of the rural communities and helping to curb the rate of out-migration and the consequential population depletion affecting many rural communities. 4.07 A social assessment conducted by WB as part of project preparation for the first phase, highlighted the issues of elite capture by school principals; potential conflict by the infusion of money into school management committees; the possibility of teachers who benefitted from the project abandoning rural areas; and an exacerbation of inequality between beneficiaries and non-beneficiaries. These risks were mitigated through a series of checks and balances at the local level and by active community participation in the management of project resources. Other measures will include the application of a highly targeted mechanism to ensure that project benefits are enjoyed by rural areas that have traditionally been under- served by public services, and those incorporated to ensure effective management of project resources by  - 19 - communities. The provision of employment opportunities for trained teachers in rural areas will also mitigate those potential adverse consequences. 4.08 As a result of high population density in rural community settlements, and since land is extensively used for agriculture, the availability of land for school construction within the selected communities might be a social risk. The Grassroots Management Training Programme in the Project will provide communities with the necessary skills to, among other things, identify available and suitable public land, or private land that can be donated voluntarily by the community for construction of the schools. This will be facilitated by application of the Project’s Environmental and Social Management Framework (ESMF) and the use of the guidance and screening sheets provided to document land ownership and the voluntary nature of land donation. Environmental Assessment 4.09 Community schools are to be constructed in four Departments. An ESMF is required for each site prior to commencement of construction. It will identify any potential adverse environmental impacts at the sites and indicate how they will be minimised, mitigated and managed. The format and requirements of the ESMF have been developed by the DGS based on a previous framework prepared by the Economic and Social Assistance Fund (FAES) and MENFP. The potential adverse impacts are likely to be small-scale and related to construction impacts and cooking fuel during operation. The project will seek to mitigate the impacts related to cooking fuel, by providing kitchen appliances that eliminate the need for wood burning fuel. The ESMF focuses on how to address construction-type impacts such as worker training and use of protective gear, as well as waste, noise and dust abatement. The ESMF also includes a budget for safeguard actions and a summary of the institutional arrangements for screening sites, developing mitigation actions, implementing these actions and supervising adherence to them. The DGS will supervise the implementation of the ESMF at each site. A summarised ESMF template is attached at Appendix 4.1. SUSTAINABILITY AND RISKS 4.10 The sustainability of the activities in EFA as well as others under the OPE, is critical to the achievement of UPE in Haiti. GOH has established FNE to develop a pool of funds for the purpose of achieving and sustaining UPE. However, substantial technical and financial support still needs to be provided by the international community if the goal is to be achieved. One of the most effective mechanisms in this regard may be the principle of community ownership. The more invested communities feel, the more likely it is that they will continue their participation in the process. Sustainability will therefore be effected through empowerment of the community, in part through initial and refresher training, and dialogue which keeps them in touch with the overarching purpose of the project in their communities. In addition, if UPE is to be achieved and sustained, tuition waivers cannot be a permanent solution. Along with the planned nationalisation of some community schools by GOH, mechanisms must be identified for graduating schools from the programme. These could include more rigorous criteria for selecting schools to participate in the programme since issues of quality still abound. 4.11 Furthermore, if sustainability is to be achieved, GOH must be able to undertake the full payment of teachers’ salaries after completion of the project. The most likely structure for promoting sustainability in this regard may be FNE. However, there must be the political will to establish and legislate the regulatory framework in order that the system may begin benefitting from the significant sums that have already been collected. NEPO is expected to play a significant role in that respect. Lastly, as part of its own recognition that it cannot depend indefinitely on the goodwill of the donor community, GOH is working in partnership with that community to ensure that it has the necessary systems and capacity to take the lead in the long term. A significant proportion of the project activities focus on these two elements. They will ensure that  - 20 - MENFP, and by extension GOH, can build on the gains to achieve the objective of UPE in the short to medium term. Maintenance 4.12 The ability to set priorities and follow good preventative maintenance practices will be essential to continued effective operation of the community schools and to keep all facilities financed from the Grant in good condition. The project has made provision for the training of the community representatives and relevant staff of MENFP in School Management and Maintenance of Facilities. SMC/MENFP will be required to keep separate records of the annual expenditure on maintenance of the CDB/WB-financed school facilities. These records should be submitted each year to CDB and WB for review and comment commencing the first year after completion of the schools. Risks and Mitigation Measures 4.13 The main risks are summarised in the Design and Monitoring Framework at Table 2.1. The overall risk profile of the project as set out in Table 4.1 below, can be assessed as moderate. TABLE 4.1: SUMMARY OF MAJOR RISKS AND MITIGATION MEASURES RISK RISK TYPE DESCRIPTION OF RISK CLASSIFICATION MITIGATION MEASURE Implementation The proposed implementation High These risks are being modality may exceed mitigated through multiple available capacities. Some approaches. Technical risks programme elements such as will be supported through grants to communities may capacity support to MENFP at require higher levels of the central and regional levels. fiduciary capacity than Fiduciary risks will be currently exists. Fraud and mitigated through corruption may also be involvement of local present. authorities, as well as through the specific training which will be conducted. Fraud and corruption will be mitigated through the use of established systems and procedures from EFA Phase I (strengthened to make more results-focused). A complaints mechanism will also be established. Performance–based contract Moderate Consultations conducted with mechanisms may be resisted DDEs and communities on the by the DDEs, and the results- use of the CDD approach based approach to the tuition throughout the project design waiver component may be phase and to be continued rejected by school directors. during implementation, will Teachers may also resist help to mitigate this risk. introduction of new teaching Also, training and monitoring methodologies. as well as incentives given on  - 21 - RISK RISK TYPE DESCRIPTION OF RISK CLASSIFICATION MITIGATION MEASURE the basis of efficacy, are expected to motivate principals and teachers. Small-scale construction Moderate The project ESMF will guide activities for educational communities in how to infrastructure by communities mitigate and manage adverse could displace commercial consequences of project activities and/or cause minor activities. A mechanism will adverse environmental also be set up to collect impacts if not adequately information about project managed. implementation, particularly community selection, before conflict arises. Operational Instability at the political level Moderate The project is moderating this may result in changing risk through on-going design priorities for the client, discussions with stakeholders shifting the demand away (outside of education) in the from the proposed approach to political arena. This is another priority under the expected to result in strategy. agreement on a medium-term financing framework and facilitate any potential transition. Macroeconomic GOH funds may be Moderate There is flexibility for donor unavailable or may not be funds to fill the financing gap released in a timely enough within GOH plan as required. manner, thereby disrupting the pace of implementation of the teacher training programme. Also, GOH may not be able to assume responsibility for payment of community teachers to be taken over in Year 3 of the project. 5. IMPLEMENTATION AND PROJECT MANAGEMENT THE GRANTEE 5.01 The Grantee is GOH. GOH has the legal capacity to accept the Grant and carry out the Project on the terms and conditions as set out at Chapter 6. The Republic of Haiti became a full member of CDB in 2007 and to date GOH has been the recipient of grants from CDB amounting to approximately USD66 mn. Funds from CDB have been allocated to four capital projects (two in education and two in community driven development), a policy based grant, natural disaster emergency relief grants, and small technical assistance interventions. In addition, CDB has provided direct assistance to GOH amounting to approximately $1.7 mn including support for project cycle management training targeting public servants.  - 22 - All capital projects have been financed in partnership with other donors, namely the WB, the Inter- American Development Bank and DFATD. A summary of CDB grants and direct assistance to GOH is presented at Appendix 5.1. PROJECT MANAGEMENT 5.02 The institutional and implementation arrangements for this phase of the programme will be based in large part on the arrangements utilised in the first phase. The National Strategic Committee for the OPE will serve as the Project Steering Committee (PSC). The existing Project Management Team (PMT) located within MENFP will be responsible for implementation of the project. The PMT will be led by a Project Coordinator (PC) and will consist of two units. The first unit, the Project Technical Unit (PTU), is located in MENFP’s External Financing Coordination Unit (EFCU), and will oversee the implementation of activities. It will comprise the PC and four Technical Coordinators (TCs), each with responsibilities for specific components of the project. The TCs will report to the PC. The second unit is the Administrative Unit (AU), which will be located within the Directorate of Administrative Affairs (DAA), and will report jointly to DAA and the PC. The AU will comprise both national and international consultants. Specifically for the tuition waiver programme, a nine member steering committee has been established to appraise and approve eligible student enrolment sub-projects. 5.03 Each project component/sub-component will fall under the supervision of specific Directorates at the central MENFP. The assignments are as follows: DIRECTORATE COMPONENT/SUB-COMPONENT Directorate for Support to Private Education and Tuition Waiver Programme Partnership (DAEPP) DAEPP Directorate of Fundamental Teaching (DEF) Support to Communities Directorate of School Infrastructure (DGS) National School Feeding Programme (PNCS) School Health and Nutrition Professional Development Unit (DFP) Support to Teaching and Learning (including In-service training and multi-grade teaching/learning)* Technical Unit of the General Directorate Institutional Strengthening and Governance PMT Project Management, Monitoring and Evaluation BUGEP ECD* *Sub-components subject to additional implementation support from CDB 5.04 The PC will be the primary counterpart to CDB and WB for the purposes of project monitoring and evaluation, and will be the interface with the administrative functions provided by DAA. TCs will provide technical support to the relevant executing departments/agencies. This will include the drafting of Terms of Reference (TORs) and referring them to the administrative body for aggregation of requests to be submitted to the WB and CDB for clearance. TCs will also verify that activities proposed by the beneficiary departments comply with the provisions of the Grant, and will evaluate their progress vis- à-vis expected results. They will identify gaps between programmed and executed technical, social, financial and administrative activities related to project implementation and Annual Operational Plans, follow-up baseline and indicators performance, and provide support to the committee overseeing the Tuition Waiver Programme and the external firms which will be engaged to undertake impact evaluation.  - 23 - 5.05 The functions of the members of PTU are outlined in the Project Operational Manual (POM) which provides details on project implementation, project components, TORs for consultants, steering committees, procurement and financial management arrangements and project reporting requirements. POM has already been formally adopted by GOH. No changes shall be made to POM without the written approval of CDB and WB. The Project Management Organisational Structure is attached at Appendix 5.2. IMPLEMENTATION 5.06 The CDB component will be implemented over a period of approximately 36 months from Board Approval. WB financing commenced in April 2012 and is expected to be completed by June 2015. CDB has provided funds for project implementation beyond the WB financed period. The project is being implemented by MENFP who has devolved responsibility across various levels of the sector in order to build implementation capacity in the system. Specific implementation actions are being undertaken at both central and departmental levels, and where necessary, implementation responsibilities have been devolved to communities and schools as well. CDB and WB will collaborate closely, but WB will undertake responsibility for day-to-day supervision of the project. However, CDB has identified a number of activities to be financed from CDB resources, which will be targeted for implementation support by CDB. These include the ECD, multi-grade and in-service training activities. An indicative Project Implementation Schedule for activities specifically being funded by CDB is presented in Appendix 5.3 and details of the full implementation arrangements are attached at Appendix 5.4. PARTICIPATION OF BENEFICIARIES AND STAKEHOLDERS 5.07 The preparation and appraisal of the project involved consultation with a wide range of stakeholders. Meetings were held with senior officials of GOH; staff of PMT; representatives of the Education Group of the donor community; FONHEP and Care Haiti. These discussions provided the opportunity for stakeholders to share their experiences and knowledge, and to express an opinion about the impact of the project to date, and how its effectiveness may be improved. The interactions were particularly enhanced through meetings with the officers interfacing with the rural communities targeted for support. They were able to share the concerns of community residents and, as warranted, these concerns have been integrated into project design. Since communities are more integral to results in this phase of the project, the principle of stakeholder participation, particularly at the community level, will be reinforced and strengthened as part of the Project’s mode of operation to increase the probability of the intended positive outcomes. DISBURSEMENTS 5.08 The CDB grant will be disbursed over a period of 27 months, with the first disbursement projected for September 30, 2014, and final disbursement by December 31, 2016. GOH will be required to maintain Special Accounts (SAs) which will be operated in accordance with the terms and conditions set out at Chapter 6. GOH will be required to open a foreign currency account at the Central Bank of Haiti for payment in USD and a local currency account at the Central Bank for payment in local currency (“gourdes”). The use of funds (foreign currency account and the local currency account) will be based on the Statement of Expenditures. CDB and WB will authorise a four-month advance to the foreign currency account based on the procurement/disbursement plans (excluding the sub-component 1: (a) Primary Education per Student Subsidies). Funds will be used to: (a) honor eligible expenditures; and (b) make advances to the local account in “gourdes”. DAA will prepare and transmit to WB and CDB withdrawal applications together with the relevant documents. DAA will keep separate book entries by donor (WB and CDB) and the expenditures will be charged to each donor under the respective Grant Agreements and disbursement tables by components. The Estimated Quarterly Disbursement Schedule for CDB’s resources is attached at  - 24 - Appendix 5.5. Reporting will be in the same format as submitted to WB, and set out in the Operations Manual for the project. PROCUREMENT 5.09 The WB Procurement Guidelines have been substantially harmonised with those of CDB and other Multilateral Development Banks with the main difference being country eligibility. Given that the daily supervision of the project will be conducted by WB, and recognising the weak implementation capacity of MENFP and the need for simplicity in project implementation arrangements, a waiver of CDB’s “Guidelines for Procurement” and “Guidelines for the Selection and Engagement of Consultants by Recipients of CDB Financing” is recommended. This will allow GOH to use WB’s guidelines for the purposes of economy, consistency and efficiency. Procurement shall be open to all CDB and WB members. International Competitive Bidding will be used for construction works for amounts equal to or more than $1.0 mn, goods equal to or more than $250,000, and consulting services equal to or more than $200,000. It shall be a condition of the Grant that GOH shall acknowledge the Grant funds provided by CDB during project implementation through advertising, websites, signage, publications and printed material, speeches, press releases and public relations activities, recognition at events and openings, and other similar media. The Procurement Plan is attached at Appendix 5.6. MONITORING AND EVALUATION 5.10 Overall M&E will be the responsibility of PMT which has overall responsibility for the implementation of the project. In addition, institutional modalities have been established for undertaking the M&E of activities. These include structures at the central, departmental and community levels. Quarterly financial management reports will also be prepared and submitted to both WB and CDB, providing information regarding both financial and implementation pr ogr ess. An external auditing firm will be engaged to audit project accounts. DAA will be required to produce audited financial statements no later than four months after the end of the financial year commencing in 2015. All data collected will be disaggregated by sex. 5.11 In accordance with CDB’s Project Performance Evaluation System, the project is accorded a composite rating of 7.1. This is a very satisfactory rating, indicating that the project is very likely to achieve its developmental objective and that the project performance is expected to be of a good standard. A summary of the project performance matrix is shown at Table 5.1. It will be an integral part of the M&E system.  - 25 - TABLE 5.1: PROJECT PERFORMANCE EVALUATION MATRIX Criteria Expected Justification Performance Scores Strategic 9.0 The project is accorded high priority by GOH because it aligns Relevance with the country’s EFA strategy established as part of Haiti’s response to the Dakar Framework on Education for All. It is also in keeping with the goal of achieving UPE as set out in the OPE. GOH recognises that education is a key condition for achieving economic growth, and that no country has been able to achieve sustained growth without first having reached universal or close to universal primary education. Primary education is also the gateway to enhancing education at other levels. The project is consistent with CDB’s strategic objectives of fostering inclusive social development by improving the quality of and opportunities for access to education and training. Poverty Relevance 9.0 Educational research indicates a strong correlation between educational achievement and poverty reduction. The very low levels of education participation in Haiti obviously contribute to the country being the poorest in the Western Hemisphere. Investment in education is therefore one of the main actions that can be taken to reduce poverty in Haiti. Since the persons experiencing the highest levels of poverty are usually those with the lowest levels of education, it is necessary to ensure that education can reach those in the poorest households to assist them in breaking the cycle of inter-generational poverty. Many persons in poor and vulnerable households are either unable to send their children to school or have to withdraw them for financial reasons. This project will assist in keeping such children in school and the outputs will contribute to poverty reduction in Haiti in the short, medium and long term. Efficacy 6.5 All of the individual project objectives will contribute to achieving the overall purpose of increasing access to ECD and primary education by poor children in Haiti. The outputs relating to multi-grade teaching and learning especially enhance the probability of a broader range of children benefitting from the project. Cost Efficiency 6.0 Project benefits are expected to outweigh project costs. The project focuses on increasing access to ECD and primary education. Available research suggests that returns on investments in education, particularly ECD and basic education, are high, and far outstrip returns from other public investments. The components represent the least cost options for achieving the desired objectives. ID Impact 6.5 The continued strengthening of MENFP and its departmental offices/divisions, is expected to significantly impact their capacity to lead the system and to implement the project. In addition, capacity building at the community level will not only  - 26 - Criteria Expected Justification Performance Scores enhance the ability of the communities to effectively oversee the day-to-day running of the schools, but it will also allow MENFP to devolve responsibility for aspects of educational development for community oversight. Sustainability 5.0 Investments in education, particularly at ECD and basic education levels, have significant impact on poverty reduction in the short, medium and long term. The ability of GOH to attract resources from the donor community is high and therefore it is likely that financial resources for the achievement of its educational goals will be available for some time. Furthermore, the establishment of the FNE will help to ensure that GOH can continue its focus toward rebuilding of the system while reducing its dependence upon donor support in the long term. Overall Performance 7.1 Highly Satisfactory 6. TERMS AND CONDITIONS 6.01 It is recommended that the Board of Directors approve a grant to the Government of Haiti (GOH) of an amount not exceeding the equivalent of eleven million United States dollars (USD11,000,000) (the Grant) from CDB’s Special Funds Resources to assist GOH in financing the second phase of its programme to increase access to early childhood and primary education, by poor children between the ages of 3 to 12 years in under-served populations, and to improve equity, quality and governance of the education sector (the Project), on CDB’s standard terms and conditions and on the following terms and conditions: (1) Disbursement: (a) The first disbursement of the Grant shall be made by September 30, 2014 and the Grant shall be fully disbursed by December 31, 2016, or such later dates as CDB may specify in writing. (b) Disbursements shall be made by CDB in the manner specified in paragraph 5.08 of this Report. (c) Except as CDB may otherwise agree, total disbursements shall not exceed thirteen percent (13%) of the cost of the Project. (2) Procurement: Where WB funds are being utilised, together with CDB’s SDF (U) for the Project, goods and services to be procured from CDB’s SDF shall be procured in accordance with WB’s procedures, or such other procedures as CDB may specify in writing, and may be procured from the countries eligible for procurement of goods and services to be financed from WB funds which are not eligible for procurement from CDB’s SDF U). Details of the procurement arrangements and the Procurement Plan are set out at Appendix 5.6 to this Report.  - 27 - (3) Conditions Precedent to First Disbursement: (a) GOH shall furnish or cause to be furnished to CDB: (i) one (1) or more legal opinions, satisfactory to CDB, of a legal practitioner, acceptable to CDB, showing that: (aa) GOH has complied with all the necessary requirements under the constitution of Haiti and the laws and regulations in force in Haiti in order to enter into the Grant Agreement; (bb) the Grant Agreement has been properly executed on behalf of GOH; (cc) the Grant Agreement has been duly authorised by and executed and delivered on behalf of GOH and constitutes a valid and binding obligation of GOH in accordance with its terms; and (ii) proof, satisfactory to CDB, that the person or persons who signed the Grant Agreement on behalf of GOH were legally empowered to do so. (4) Other Conditions: (a) GOH shall: (i) Except as CDB may otherwise agree, maintain at all times within MENFP during the implementation of the Project, a Project Management Team comprising of: (i) a technical unit, with a project coordinator, and (ii) an administrative unit with staff responsible for the Project’s financial and procurement matters. PMT shall be led by PC and shall have the structure and reporting arrangements more particularly described in paragraphs 5.02 to 5.05 of this Report (ii) provide specific policy guidelines and address identified issues and constraints in respect of Project implementation; and except as cdb ma otherwise agree ,operate and maintain throughout Project implementation, a committee (the National Strategic Committee) with a structure and functions and responsibilities acceptable to CDB/WB , as set forth in detail in POM. The National Strategic Committee shall serve as the project steering committee; (iii) ensure that the technical and administrative units of PMT operate in accordance with the policy directives established by the National Strategic Committee; and (iv) ensure that not later than September 1 of each year of Project implementation, PMT, through MENFP, furnishes to CDB/WB, for its review and approval, the Project work plan and budget for the calendar year following the date of presentation of each said plan and budget, and (ii) thereafter implement each annual Project work plan and budget in a manner acceptable to CDB/WB.  - 28 - (b) GOH shall for the purposes of appraising and approving eligible Student Enrollment sub-projects, operate and maintain throughout Project implementation, a nine member steering committee consisting of representatives of MENFP, MEF, non-public education providers, parents’ associations and teachers’ unions, all with qualifications acceptable to CDB/WB. (c) GOH shall, operate and maintain during Project implementation, NEPO, with a structure, functions and responsibilities acceptable to CDB/WB. (d) GOH, through MENFP, shall ensure that NEPO is, at all times during Project implementation, assisted by professional staff and administrative staff, all in numbers and with terms of reference, qualifications and experience, acceptable to CDB/WB. (e) GOH, through PMT within MENFP, shall carry out, and/or cause to be carried out, the Project in accordance with POM. (f) POM may only be amended in consultation with, and after written approval of, CDB and WB. (g) GOH shall maintain the facilities financed from the Grant, or cause the same to be kept in good repair and condition, and shall provide the resources necessary to adequately carry out such maintenance works as may be required from time to time. (h) Except as CDB may otherwise agree, GOH shall, through MENFP, enter into: (i) student enrolment grant agreements, satisfactory to CDB and WB with SMCs; (ii) basic education grant agreements, satisfactory to CDB and WB with beneficiary service providers; and (iii) school-feeding grant agreements, satisfactory to CDB and WB with beneficiary service providers, all in accordance with the eligibility criteria and procedures acceptable to CDB and WB, set out in POM, which grant agreements shall set out the respective obligations of the parties thereunder, with respect to the preparation and implementation of student enrolment sub-projects, the basic education sub- projects and the school feeding sub-projects. (i) GOH shall obtain rights adequate to protect its interests and those of CDB, including the right to: (i) suspend or terminate the right of any SMC or beneficiary service provider to use the proceeds of any sub-project grant, or to obtain a refund of all or any part of the amount of any sub-project grant then withdrawn, upon the SMC’s or the beneficiary service provider’s failure to perform any of its respective obligations under the student enrolment grant agreement, basic  - 29 - education grant agreement or school feeding grant agreement, as the case may be; and (ii) require each SMC and beneficiary service provider to: (aa) carry out the sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to CDB/WB; (bb) provide, promptly as needed, the resources required for the purpose; (cc) procure the goods, works and services to be financed out of the Grant in accordance with the provisions of the Grant Agreement; (dd) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to CDB and WB, the progress of the sub-project and the achievement of its objectives; (ee) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to CDB, both in a manner adequate to reflect the operations, resources and expenditures related to the subproject, and, at CDB’s or GOH’s request, have such financial statements audited by independent auditors acceptable to CDB, in accordance with consistently applied auditing standards acceptable to CDB, and promptly furnish the statements as so audited to GOH and CDB; (ff) enable GOH and CDB to inspect the sub-project, its operation and any relevant records and documents; and (gg) prepare and furnish to GOH and CDB all such information as GOH or CDB shall reasonably request relating to the foregoing. (j) GOH shall ensure that no transfer of Grant funds shall be made to any SMC or beneficiary service provider, as the case may be, prior to the date on which the pertinent SMC or beneficiary service provider has entered into the pertinent grant agreement. (k) GOH shall exercise its rights under each grant for a student enrolment, basic education or school-feeding sub-project in such manner as to protect the interests of GOH and CDB and to accomplish the purposes of the financing. (l) Except as CDB/WB shall otherwise agree, GOH shall not amend, terminate, assign, abrogate, waive or fail to enforce any student enrolment, basic education or school-feeding sub-project grant agreement or any provision thereof.  - 30 - (m) In the event that any provision of any student enrolment, basic education or school- feeding sub-project grant agreement shall conflict with any of the provisions of the Grant, the terms of the Grant shall prevail. (n) GOH shall, through MENFP, enter into an agreement (IFM Agreement) with the selected IFM, all under terms and conditions satisfactory to CDB/WB which shall include, inter alia: (a) the obligation of the GOH to promptly provide the funds, facilities, services and other resources required by the IFM to implement its activities under the Support to Teaching and Learning component of the Project and ensure compliance with all the terms and conditions of the grant; and (b) the obligation of the IFM to: (i) carry out the activities under the Support to Teaching and Learning component of the Project with due diligence and efficiency and in a manner satisfactory to the CDB/WB; (ii) use the Grant funds in accordance with the terms and conditions of the Grant, and in conformity with appropriate administrative, technical, financial, procurement, auditing, participatory and legal standards and practices; (iii) promptly provide the facilities, services, staff responsible for the implementation of the Support to Teaching and Learning component of the Project and other resources required for that purpose; (iv) furnish all information covering the implementation of the activities under the Support to Teaching and Learning component of the Project and the use of the proceeds of the Grant, as GOH and the CDB/WB shall reasonably request; (v) carry out procurement and enter into contracts, all in a manner consistent with the provisions applicable to the Grant ; (vi) ensure compliance with financial management procedures applicable to the Grant; (vii) at CDB/WB or GOH’s request have such financial statements audited by independent auditors acceptable to CDB/WB, in accordance with consistently applied auditing standards acceptable to CDB/WB, and promptly furnish the statements as so audited to GOH and CDB/WB; (viii) enable GOH and CDB/WB to visit each IFM facility and examine its operations and any relevant records and documents; and (ix) take all actions necessary to enable GOH to comply with its obligations under the grant. (o) GOH shall, and shall cause each IFM, to exercise its rights and carry out its obligations under each IFM Agreement in such manner as to protect the interests of the IFM, GOH and CDB/WB and to accomplish the purposes of the Grant.  - 31 - (p) Except as CDB/WB shall otherwise agree, GOH shall not amend, terminate, assign, abrogate, waive or fail to enforce any of the IFM Agreements or any provision thereof. In the event of any inconsistency between the provisions of any IFM Agreement and the provisions of the Grant, the provisions of the Grant shall prevail. (q) GOH shall acknowledge the grant funds provided by CDB during Project implementation, through advertising, websites, signage, publications and printed material, speeches, press releases and public relations activities, recognition at events and openings, and other similar media. (r) GOH shall, for the purposes of the Project, open and maintain two (2) Special Accounts (the SAs), jointly with WB, one for foreign currency payments and the other for local currency payments, at the Central Bank of Haiti on terms and conditions acceptable to CDB. The SAs shall be operated in accordance with the terms and conditions set out at Appendix 6.1 to this Appraisal Report. (s) Except as CDB may otherwise agree, GOH shall adhere to the provisions with respect to ESMF and Project Monitoring and Evaluation, set out in the Republic of Haiti and International Development Association Financing Agreement dated January 11, 2012, set out in Appendix 6.2. GOH shall submit the reports and other documentation referred to therein to both CDB and WB. (t) Except as CDB may otherwise agree, GOH shall meet or cause to be met: (i) the cost of items designated for financing by GOH as shown in the Budget set out at Table 3.1 in this Report; (ii) any amount by which the cost of the Project exceeds the estimated cost shown in the Budget; and (iii) the cost of any other items needed for the purpose of, or in connection with, the Project. (u) Except as CDB may otherwise agree, GOH shall provide or cause to be provided all other inputs required for the punctual and efficient carrying out of the Project not being financed by CDB and WB. (v) CDB shall be entitled to suspend, cancel or require a refund of the Grant or any part thereof if: (i) WB fails to meet its contribution to the Project as shown in the Budget, except that GOH shall not be required to refund any amount of the Grant already expended by GOH in connection with the Project and not recoverable by it; or (ii) there shall be a breach of any of the provisions of the Financing Agreement entered into by GOH with WB, referred to in sub-paragraph (r) above, which shall be deemed material by CDB. .  APPENDIX 1.1 MACROECONOMIC CONTEXT 1. The Haitian economy continues to recover from the January 2010 earthquake, albeit at a slower pace than anticipated. The main factors in this under-performance have been lower-than-expected implementation rates on public investment projects and the impact of natural disasters on agricultural output, all within the context of an ongoing cholera outbreak. Nevertheless, credit to the private sector continues to grow at a brisk pace, while the banking sector remains sound and profitable. Prudent macroeconomic policies have helped to maintain single-digit inflation rates, despite food price pressures and slight depreciation of the exchange rate, and to limit expansion of the fiscal deficit, despite lower than budgeted revenue collections and grant inflows. Current estimates are for growth of 3.4% in fiscal year11/ (FY) 2013, with projections for acceleration to 4.5% in FY 2014. This projection assumes the realisation of previously anticipated rebounds in agriculture and construction and the continuation of recent declines in food prices. It is, however, subject to chronic socio-political and disaster risk, as well as the risk of a potential slowdown in global growth and/or a resurgence in international commodity prices. Real Sector 2. Growth dynamics in Haiti over the last four years have largely reflected the initial impact and continued repercussions of the 2010 earthquake. Consequently, in contrast to the 2.9% growth registered in FY 2009, real Gross Domestic Product (GDP) was estimated to have declined by 5.4% in FY 2010, despite growth of 4.3% in construction driven by reconstruction activity. Agriculture, which accounts for the largest share of economic activity, was not severely affected, given that the earthquake impact was largely in the Port-au-Prince metropolitan area. Other areas of activity more directly impacted by the earthquake during FY 2010 included manufacturing (-14.7%), commercial hotel and restaurant activity (-7.9%) and transport and communications (-2.8%). Economic activity rebounded in FY 2011, with real GDP growing by 5.6%, as ongoing reconstruction activity led to even stronger construction growth of 9.1%. However, the economic recovery slowed in FY 2012, as construction growth was constrained by under- execution of public capital projects attributed to weak capacity and low private sector participation, while drought and the passage of Hurricane Isaac adversely affected agricultural output. Consequently, real GDP growth was estimated at 2.8% for FY 2012. In August 2013 the IMF scaled back its growth projection for FY2013 significantly to 3.4%. Continued low implementation of public investment projects, ongoing drought conditions and the impact of Hurricane Sandy had negated the assumptions of a rebound in agriculture and stronger growth in construction that had underpinned a projection of 6.5% just a few months earlier in March. 3. Inflation, as measured by the Consumer Price Index, peaked at 7.7% at end-March 2013, largely due to the adverse impact of Hurricane Sandy on domestic food supply, as well as pressures due to higher international food prices and currency depreciation. With some recovery in subsequent months in agriculture (and therefore domestic food supplies), as well as lower international prices, the inflation rate receded to 4.5% at end-September. External Sector 4. Balance of payments estimates indicate an overall deficit of $290 million in FY2013, versus a surplus of $272 million in FY2012, mostly on account of declining official transfers and lower net financial inflows. The net international reserves therefore fell by 11.6% in FY 2013 to USD 1.8 bn at end-September, but reserve cover nevertheless remained comfortable at the equivalent of six months of imports, well above the traditional benchmark of three months. As of end-September 2013 the exchange rate had depreciated by 3.4% to 43.7 gourdes to one United States dollar. 11/ The fiscal year runs from October of one year to September of the following year.  APPENDIX 1.1 Page 2 of 2 Monetary/Financial Sector 5. Monetary policy in Haiti aims to maintain price stability and the exchange rate. In light of the increase in domestic food prices and the depreciation of the gourde, the central bank tightened monetary policy settings. However, this tightening was effected by raising the banks’ reserve requirement ratios rather than increasing policy rates, as the central bank sought to support credit growth to stimulate economic activity. Credit to the private sector grew by 19.7% in the twelve months to August 2013. Despite such rapid credit growth, the banking sector remained sound, with an average capital adequacy ratio of 17.15% at end June 2013, above the 12% regulatory minimum, and non-performing loans at 2.9% of total loans, comfortably below the 5% ceiling. Banks also remained profitable, with satisfactory returns on assets and equity. Fiscal Sector 6. Following on a higher-than-expected overall deficit for FY 2012, which mainly related to emergency spending associated with Hurricane Isaac and outlays for new ministries, fiscal performance deteriorated further in FY 2013. Revenues came in well below budget projections, reflecting: lower corporate and income taxes due to weaker economic activity; lower excise and custom duties due largely to a decline in imports with the passage of Hurricane Sandy; delays in the implementation of some revenue measures; and continued weak collection, particularly at customs. Grant receipts were also lower than expected. In response to the shortfall in revenue, the authorities reduced non-priority current expenditure. Consequently, the overall deficit for FY 2013 is estimated at 5.5% of GDP, as against 5.1% in FY 2012 and the budget target of 5.3%. Outlook 7. On the assumption that the previously anticipated rebounds in agriculture and construction are finally realised, real GDP growth is currently projected to accelerate somewhat to 4.5% in FY2014. Food prices are expected to decline and, with appropriate monetary and fiscal policies in place, inflation should remain low in FY 2014. Foreign reserves are projected to decline slightly in FY 2014. Domestically, downside risks mainly relate to heightened political and social tensions that, coupled with revenue underperformance, could further stymie public investment spending and delay recovery, reconstruction and reform efforts. The country’s vulnerability to natural and anthropogenic disasters also represents a perennial risk that could again impact economic performance, particularly in agriculture. A potential slowdown in global growth and/or resurgence in international commodity prices are the two main external factors that could affect the outlook for Haiti.  APPENDIX 1.2 SOCIAL CONTEXT Demography 1. Haiti’s population which is estimated at 10.0 mn (2011) is distributed among 10 geographic regions1. The population has been growing at an average rate of 1.3% per year since the 2010 earthquake2. While this represents a 50% reduction in the population growth rate when compared to the period just before the earthquake, with an increase of over 1.0 mn people each year, the country continues to have the fastest growing population in the Bank’s BMCs. The population is essentially youthful with about 35% estimated to be less than 15 years old. Due to high rural to urban migration, Characteristics of Rural Areas population growth in the urban areas at 3.7 % per year is almost three times that of the national average while the Haiti’s rural population is highly dense, extremely dispersed and hard to reach. Rural rural population has been declining at an annual rate of density is estimated at 108 persons per km2, 3 1.7% . Despite such rapid increase in the urban extremely high by international standards. population, the majority of the population; i.e. 60%,4 is However, such extreme density paradoxically living in the rural areas, in numerous small villages, with translates into a highly dispersed rural many working as subsistence farmers on family plots. population, settled in thousands of networks of very small villages, each within a walking distance of 20 minutes to one hour. The road Poverty, Gender and Education network is limited. Paths to access villages are long and interspersed by innumerable rivers, 2. Poverty in Haiti is associated with several factors; which further compound the difficulties for among these are the lack of access to food and basic social school age children to travel to school, infrastructure such as schools. It was estimated that prior especially girls. As a result, the rural to the 2010 earthquake a very large proportion of the population is hardly reached by the formal population i.e. 56.4% suffered multiple deprivations and education system. as such was deemed to be multi-dimensionally poor5. Thirty-three percent was determined to be in severe Extract from World Bank Project Appraisal poverty and 18.8%, vulnerable to poverty. Among the Report for the Education for All Project – poor, 22% suffered from deprivations based on health, Phase II. p 71 27% in education and 52% on the basis of poor living standards6. Poverty levels were much higher in the rural areas than in the urban areas with the level of poverty in the rural regions ranging from 84% of the population in the Central region to 59% in the South region. Thirty-seven percent of the population in the urban Metropolitan/Western region was estimated to be poor. The rural areas also had much higher proportions of the population in severe poverty and those vulnerable to poverty7. 1 The geographic regions are: Artibonite, Center, Grand ’Anse, Metropolitan/West, Nipples, North, Northeast, Northwest, South and Southwest. 2 http://data.un.org/CountryProfile.aspx?crName=Haiti 3 ibid 4 Demographic and Heath Survey, 2012, République d’Haïti, Ministère de la Santé Publique et de la Population (MSPP), 5 Oxford Poverty and Human Development Initiative, Country Briefing: Haiti, Multidimensional Poverty Index (MPI) At a Glance, Dec. 2011. The MPI was derived from the 2006 Demographic and Health Survey. 6 The MPI uses 10 indicators to measure poverty in three dimensions: education, health and living conditions. Education – Year of Schooling and School Attendance; Health–Child Mortality and Nutrition; and Living Conditions–Electricity, Sanitation, Drinking Water and types of Flooring, Cooking Fuel and Assets. 7 Oxford Poverty and Human Development Initiative, Country Briefing: Haiti, Multidimensional Poverty Index (MPI) At a Glance, Dec. 2011  APPENDIX 1.2 Page 2 of 3 3. High unemployment and underemployment are determining factors in Haitian poverty; hence with unemployment reaching an estimated phenomenal rate of 41% in 2010, the level of poverty would have increased substantially, as a result 8. Among the employed were large numbers of the working poor, most of who were engaged in the informal sector. The widespread destruction caused by the earthquake, resulted in overall living conditions, which were extremely difficult before, becoming several times worse for a very large proportion of the population. 4. Information on the country’s 2012 Human Development Index (HDI) shows that Haiti is categorised as a low human development country and that there has not been much progress in human and social development in the last several years. In 2005, Haiti had a HDI of 0.437. This increased to 0.450 in 2010 and then slightly to 0.456 in 2012 but it was still lower than the average of 0.466 for the Low HDI Countries. This resulted in a ranking of 161 out of 187 countries; a position it shared with Uganda. Its low level of human and social development is depicted by the HDI components i.e. Life Expectancy at Birth, Expected years of Schooling, Mean years of School and Gross National Income per Capita in Table 2 below, which reveals acute deficits in these key indicators and particularly in the areas of education and schooling 9. TABLE 1: SELECTED HUMAN DEVELOPMENT INDICATORS 2005-2012 YEAR INDICATOR 2005 2010 2012 HDI 0.437 0.150 0.456 GNI per capita (2005 PPP USD) 1,040 1,006 1,070 Life Expectancy at Birth 59.9 61.8 62.4 Expected Years of Schooling 7.4 7.6 7.6 Mean Years of Schooling 4.5 4.9 4.9 Source: Selected 2013 HDR Report 5. Although national averages tend to mask the wide inequalities that exist on the basis of gender and other socio-economic status, it is clear that with the mean years of schooling being about five, a very large proportion of the population would not be educated beyond primary level. Based on the inverse relationship that exists between levels of education and poverty, other indicators such as the median years of schooling, which is low for both males (3.2 years) and females (2.8 years), suggests that a very large proportion of the men and women are educated at sub-optimum levels and as such would not be adequately equipped to achieve significant improvement in living standards. This is more so in the rural areas where the mean years of schooling for both men and women is about one–third of what obtains in the urban areas. 6. The Gender Inequality Index (GII) which reflects gender-based inequalities in the areas of reproductive health, empowerment and economic activity10, was estimated at the value of 0.592 for 8 http://www.indexmundi.com/g/g.aspx?c=ha&v=74 9 Human Development Report 2013, Haiti, UNDP 10 GII components are measured by the following: “Reproductive Health” - maternal mortality and adolescent fertility rates; “Empowerment” – the share of parliamentary seats held by each gender and attainment of secondary and higher education by each gender, and “Economic Activity” – the labour market participation rate for each gender.  APPENDIX 1.2 Page 3 of 3 Haiti in 2012. While this is higher than the average of 0.578 applicable to the Low HDI Countries, the country only attained a rank of 127 out of 148 countries. The country’s GII is based on it having very low, four percent of parliamentary seats held by women, and less than a quarter (22.5%) of adult women with at least a secondary education. The comparative figure is about 36% for their male counterparts. The maternal mortality ratio of 350/100,000 live births is relatively high when compared with Honduras (100) and Guatemala (120) while the adolescent fertility rate of about 41/1000 live births is less than half of what obtains in those countries. These indicators, which have a strong correlation with women’s low education levels, also contribute to a high disparity between men and women in the area of economic activities. This is manifested in the stark difference that exists between men and women regarding the male and female labour market participation rates which is about 60% for women, compared to about 71% for men. 7. Efforts to address these challenges are being affected by a number of other socio-economic factors. Among these are the country’s vulnerability to natural disasters, the large number of street children many of whom have been left orphaned as a result of the death of parents infected with HIV/AIDS, and persistently high levels of crime and violence including incidence of gender-based violence. In a ‘nutshell’, all these factors reveal that a very large proportion of the Haitian population live under dire socio-economic conditions with the incidence of deprivation, according to the MPI, being much greater in the rural communities than the urban areas.  APPENDIX 1.3 STATUS OF THE EDUCATION SECTOR 1. Haiti’s education sector faced tremendous challenges post-earthquake, including significantly diminished capacities for responding to challenges. The loss of schools, teachers and staff from MENFP compounded the problems of a sector which already faced a shortage of school infrastructure, trained teachers, and effective governance mechanisms. Rebuilding the education system has been identified as a policy priority for GOH with the achievement of Universal Primary Education (UPE) at the heart of those policy priorities. The priorities have been set out in a national Operational Plan for Education (OPE) 2010- 15, approved by the Haitian Parliament, and formally endorsed by the education donor community in Haiti, including CDB. The OPE is aligned with Haiti’s Education for All Strategy and the areas being supported by the donor community. A National Education Fund (FNE) to support the attainment of UPE through expansion of public-private partnerships, and re-asserting the state’s role in governing the sector, has also been created. The Fund, established in May 2011, seeks to mobilise resources to educate the most disadvantaged students. It will be financed primarily through levies placed on telephone calls and money transfers terminating in Haiti. The Bank of the Republic of Haiti has been tasked with managing FNE which, at March 2013, was reported to have reached almost USD50 mn. To date however, no interventions undertaken have been supported by FNE since the legislative process establishing its regulatory framework still has to be completed. 2. The OPE, arising from the recommendations of the Presidential Commission on Education and Training (GTEF), is financed by major partners in the donor community, including CDB, WB, the Inter- American Development Bank (IDB), and the Canadian Department of Foreign Affairs Trade and Development (DFATD), among others, and focuses on the achievement/development of UPE, public- private partnerships, teacher training, higher education, and ECD. Despite this positive progress however, GOH faces a number of challenges in the achievement of its goal to address the diverse educational needs of the country. These include: 3. Inadequate supply in the education marketplace: There are simply not enough places for children to enroll in school. It is estimated that 400,000-500,000 children aged 6-12, the majority of whom reside in rural areas, are not attending school. In addition, the average cost of US$90 in tuition per child/per year is a prohibitive figure for poor families, especially for those living in rural areas characterised by poverty rates of 82 %, with 77% living in extreme poverty. Further, only about one in every four villages has a school, with an average school size of about 225 students. The quality of these schools is exceedingly low, and the chronic lack of support renders them unsustainable, resulting in institutions which do little for developing or improving learning. GOH will therefore have to provide some infrastructure if additional places are to be created in the short to medium term. 4. Low quality of education even when schools are accessible: The results of an Early Grade Reading Assessment carried out in 2008 and 2009 indicated that on average, children in Grade 3 were able to read fewer than the benchmark of 23 words per minute for that grade, while for those studying in Creole, 29 percent were unable to read a single word by Grade 3. Reading comprehension was even weaker, with children, presented with reading comprehension questions in French and Creole respectively, only able to answer fewer than 10 percent in French and 17 in Creole correctly. GOH is therefore challenged to enhance the quality of instruction available to students. It may begin to do so by assigning the vast majority of teachers trained as part of EFA Phase One, but not assigned. However, these will still not be enough to address the problem. 5. Inability of MENFP to fulfill its policymaking and regulatory role in the education sector: Prior to the earthquake, fewer than 20 percent of non-public schools were functioning with a permit from the MENFP, due in part to MENFP’s inability to undertake the necessary functions to accredit schools. This function has been further weakened since January 2010. Given the predominance of the non-public sector,  APPENDIX 1.3 Page 2 of 2 it is necessary for MENFP to establish and expand partnerships with religious, private, NGO supported and community-based stakeholders, in order to increase and enhance service delivery. The emphasis of the state’s role is placed on the enforcement of minimum levels of quality across a range of educational norms, and the financing of the services (wherever possible), rather than the direct delivery of education services. Support must therefore be provided to strengthen the capacity of MENFP to properly undertake these activities and effectively regulate the system. 6. Diminishing support from the donor community: GOH has been able to obtain support from international donors to provide tuition subsides and school feeding to assist many students from poor and vulnerable families, who would otherwise not be able to attend school, in accessing places. To achieve its UPE targets in the short to medium term, it is critical that this support increase or remains steady. However, of critical concern is that in the last year, some support appears to have actually diminished. 7. Poor teacher quality: Most children are still being taught by teachers who lack both the content and pedagogical capacity for delivering instruction. A modality needs to be determined for ensuring that the significant number of untrained, and in many cases, unqualified/underqualified, persons who instruct children on a daily basis, can receive both content and pedagogical enhancement that has an immediate impact on their instructional quality. 8. CDB, WB and IDB, together with other donors, will be helping to co-finance the implementation of the national strategy for rebuilding the education system which requires financing across nine strategic themes, ranging from ECD to tertiary education. EFA Phase II supports the implementation of the OPE goals in four areas: (a) restructuring and reinforcing education sector governance; (b) improving and standardising programmes and curricula; (c) improving training and development of education sector staff; and (d) providing support to ECD and basic education. Table 1 below sets out the Strategic Themes of the OPE: TABLE 1: STRATEGIC THEMES OF THE OPERATIONAL PLAN FOR EDUCATION Themes Key OPE Targets for 2015 Partners 1. Restructure and reinforce (a) Regional and local offices equipped; WB, CDB, IDB, education sector governance (b) 75 civil servants trained in project planning and France, M&E; UNESCO, AECID, (c) EMIS with school map; and UNICEF, (d) ONAPE is operational. CIDA,USAID 2. Improve and standardise (a) Standards developed for all levels of the system; CDB, UNESCO, CIDA, programmes and curricula (b) New curricula developed, approved and implemented WB, OIF in all schools; (c) Training materials developed and training provided for all teachers. 3. Improve training and (a) Competencies established for each level of WB, CDB, Switzerland, development of education employment; and France, IDB, UNESCO, sector staff (b) 100% of central and decentralised staff are trained. EU 4. Provide support to early (a) National ECD policy endorsed; UNICEF, WB, CDB, childhood education and (b) 1.6 mn families receive tuition waivers; and CIDA, IDB, USAID, basic education (c) 8,902 classrooms built/equipped. FTI, UNESCO, WFP  APPENDIX 1.4 SUMMARY OF RESULTS OF EFA - PHASE I 1. EFA Phase I was designed to assist GOH in improving access to primary education for poor children aged 6–12 years, and to enhance equity, quality and governance of the education sector. It was intended to provide student subsidies, school feeding, pre-service teacher training, school textbooks, muitigrade learning programmes, and activities to improve student literacy. It also made provision for the development of capacity within MENFP. 2. Most targets were achieved and a number of them were exceeded. However the sub-component relating to multigrade learning programmes was not implemented as a result of inadequate capacity in the implementing agency. In addition, as a result of capacity constraints following the earthquake, the target established for literacy testing could not be met. The status of project outputs is shown in Table 1 below. TABLE 1: STATUS OF PROJECT OUTPUTS OBJECTIVE TARGET OUTPUTS ACTUAL OUTPUTS IMPROVED ACCESS TO PRIMARY EDUCATION (a) Student Subsides 500 schools 1,212 schools. 135,000 students 230,000 students. 250,00 person years 630,368 person years. (b) Pre-service Teacher 3,600 teachers trained 3,066 teachers trained. The sub-component was Training affected by the late payment/non-payment of the stipend (counterpart contribution). (c) Strengthening of 80% 76% SMCs 2. Improved Quality of Primary Education (a) Multi-grade Learning Policy and strategic framework This sub-component was not executed. Programmes for multi-grade teaching Multi-grade teaching This sub-component was not executed as a result programmes piloted in 100 of lack of capacity in the implementing agency. schools. (b) Student Nutrition and 25,000 students 73, 000 students. Health 75,000 person years 260,000 person years. (c) Improved Student Competency Test in 200 Schools Completed in 84 schools. Schools originally in Literacy Skills the project and receiving support were destroyed in the earthquake. However, the over 9,000 students sampled provided a robust enough baseline. 3. Improved Governance of MENFP (a) Central MENFP Training in financial Training completed. Assistance was also given Fiduciary/ Management, procurement, and with the development of a Human Resource Department of education planning Database. Provision of computer equipment Human Resources GOH was supported in the preparation of an (DHR) Action Plan for enhancing the institutional capacity of MENFP to manage and lead the system.  APPENDIX 1.4 Page 2 of 3 OBJECTIVE TARGET OUTPUTS ACTUAL OUTPUTS IMPROVED ACCESS TO PRIMARY EDUCATION (b) NEPO The establishment of NEPO NEPO has not yet been established. In the meantime, the Department for Support for Private Education and Partnership (DAEPP) continues to carry out its functions. (c) Central Technical Technical support in the areas of Support was provided to DAEPP and the Departments planning, curriculum Planning Department in the areas of planning, development and monitoring and monitoring and evaluation and development of evaluation. teaching/learning guides. Provision of transportation Provision of 100 motorcycles for School support Inspectors and 11 four-wheel drive vehicles to Technical Directors. KEY FACTORS AFFECTING IMPLEMENTATION AND OUTCOMES Project Preparation, Design and Quality at Entry 3. The project was a high-risk operation, but with potentially high returns. Besides Haiti being a fragile state, the challenge to implementation was the limited implementation capacity. Implementation depended on a careful sequence of steps. The tuition subsidy depended on a number of important factors including the proper functioning of the public financing mechanism that applied school eligibility rules and transparent, multi-stakeholder mechanisms to choose participating schools. The project was set up to deal with these challenges through the development of the Subsidy Programme Operational Manual, which is part of the project’s overall operational manual. The subsidy programme operational manual included funding criteria, review procedures, and measures to ensure both transparency and accountability in subsidy allocations. 4. The project was designed in close partnership with WB. WB-financed and CDB-financed projects used the same project management team and project implementation procedures, including harmonised fiduciary arrangements, project reporting procedures, and audits. The project was implemented in partnership with the EFA Fast Track Initiative. This included a common set of monitoring and evaluation indicators by which to measure the Government’s inputs and outputs in achieving the national EFA strategy, and a common reporting framework for tracking all education donor activities and financing. 5. The tuition subsidy component, by far the largest component, was designed to be implemented as a two-tranche disbursement. A three-tranche system was eventually accepted as the implementation of the original process proved cumbersome as SMCs did not submit enrolment data in a timely manner to facilitate disbursements. 6. The accelerated teacher pre-service professional development programme was also challenging. It required a new curriculum, new teaching and learning materials, re-training of professors employed at teacher training institutes and a change in organisational culture, all of which had to be done in sequence. The process was endorsed by key officials in the MENFP as well as by the teachers’ unions, non-public education providers and other education donors. UNESCO also helped with technical assistance for this component.  APPENDIX 1.4 Page 3 of 3 Implementation 7. The devastating earthquake which occurred on January 10, 2010 left more than 200,000 people (5 percent of the population), dead. These included staff in the PCU, the MENFP and an unknown number of project beneficiaries. From January to June 2010, very little could be done to move the project forward. Implementation from January 2010 onward should be assessed in the context of this national calamity. 8. The original, pre-earthquake PCU in the MENFP created a bottleneck for project implementation, mainly because of lack of ownership at MENFP caused by multiple changes of the Minister of Education. The earthquake compounded these problems due to the destruction of the Ministry of Education, and led to the decision to establish a more autonomous PCU. After the earthquake, the PCU staff operated for several weeks from the yard of its rented property with limited resources. The PCU was subsequently moved to a safer location, which was key to resuming the pre-earthquake pace of project implementation. PCU staff members lost during the earthquake were also replaced, although finding qualified staff in a context in which human resources were further constrained took several months. 9. NEPO, which had been planned as a key institution to oversee PPPs, was never operationalised. The reasons were capacity constraints and a lack of political commitment. Although Parliament adopted the law authorising the establishment of NEPO (Loi Creant et Organisant l’Office National de Partenariat en Education – September 10, 2007), issues around how schools to receive tuition subsidies would be decided, proved crippling to efforts to establish the NEPO. Therefore, the per student subsidy programme continued to be implemented through the Department for Private Education and Partnerships (DAEPP), in accordance with the project’s contingency plan. 10. The tuition subsidy programme was valuable post-earthquake because it had pre-established a mechanism to mitigate the impact of the earthquake on families. However, in practice, the original tuition subsidy disbursement process did not function well and was modified during project implementation. Disbursements were made through verification of, inter alia, the number of tuition-subsidy-eligible students in class. This adjustment improved the transfer of tuition subsidy tranches, but they were still delayed until often well after the school year had ended. Project Risks and Mitigation 11. A significant number of project risks that were foreseen at appraisal were mitigated during implementation. For example, the project design was correct in providing another option if NEPO was not established even though it had been endorsed by teachers’ unions, parent associations and non-public education service providers. The mitigation plan was to apply objective criteria for school subsidy allocation, along with enhanced transparency at ministerial and school levels. Targets for tuition subsidy were met and exceeded even if there were significant disbursement delays. There was the risk that public education spending increases would be insufficient to fund the student subsidy programme that was initially financed under the project. 12. The mitigation of the risk of weak SMC capacity was addressed by the capacity-building programme for over 500 SMCs each year, using NGOs with demonstrated experience in this area, for all school years covered under Phase I. However, this capacity building proved insufficient, as despite the training sessions, SMCs continued to submit use of funds reports that were late and/or did not meet minimum quality standards. This capacity building is being continued under Phase II as it is likely a more sustained and intensive training effort is necessary.  APPENDIX 2.1 DETAILED DESCRIPTION OF THE PROJECT 1. The project will co-finance the implementation of elements of the OPE of GOH. Specifically, it will increase access to quality education by lowering the costs to poor families to send their children to school, and by stimulating the supply of schooling in remote areas of Haiti, using a community-based approach. Expanding the Government’s school health and nutrition programme will also serve to increase access and attendance. The quality of instruction will be improved through support to quality pre-service and in-service teacher training programmes and an expansion of effective literacy strategies. Capacity building will be an essential component to ensuring the long-term sustainability of the OPE, including strengthening local accountability of teachers and schools to parents and authorities, for example, through the development and use of local tools for student assessment. Government’s Operational Plan for Education (OPE) 2. The newly endorsed OPE is the implementation plan for the Government’s National Pact on Education and Training (Pacte National sur l’Education et la Formation) (PANEF), itself the culmination of a three-year consultation process resulting in a set of recommendations submitted to GOH in February 2011. Led by the Presidential Commission on Education and Training (Groupe de Travail sur l’Education et la Formation) (GTEF), the PANEF features 33 recommendations structured around five strategic themes: (i) early childhood education, (ii) public private partnerships, (iii) teacher training, (iv) higher education, and (v) free, obligatory education. Drafted by a Task Force comprising experts from the GTEF and the MENFP, and supported by international technical assistance financed by key donors in the education sector, including the IDB, CDB, DFATD, UNESCO, UNICEF and WB, the OPE translates the broad recommendations of the GTEF into operational priorities, structured according to nine themes. Component 1: Improving Access to Quality Primary Education 3. This component consists of the following: (a) improving the quality of the Tuition Waiver Programme through, inter alia: (i) the establishment and strengthening of School Management Committees; and (ii) the provision of Student Enrolment Grants for the carrying out of Student Enrolment Sub-projects by School Management Committees; (b) improving basic educational services in selected rural communities through, inter alia: (i) the construction and rehabilitation of school buildings; (ii) the financing of community- based teachers’ salaries; (iii) the acquisition of school supplies, materials, equipment and operating costs; and (iv) the provision of training in school management to selected community representatives; and (c) strengthening the recipient schools’ Health and Nutrition Programme through, inter alia, the provision of: (i) daily morning snacks and hot meals in schools to be selected in accordance with criteria acceptable to WB and CDB; (ii) deworming medication and micro-nutrients to students in participating schools twice a year. Enhance the Tuition Waiver Programme 4. This sub-component will enhance the Government’s current tuition waiver programme. In its current form, the programme lowers the cost of schooling for participating families by waiving the tuition  APPENDIX 2.1 Page 2 of 16 in select non-public schools. This phase will focus more sharply on providing quality inputs to participating schools to improve student learning gains. CDB financing will provide tuition waivers for approximately 20,000 students in the Artibonite Department to complete the primary cycle of schooling. 5. Selection of schools: In order to qualify for the programme, schools must be registered with the state as legal, non-public providers of education. Requirements for participation include providing all participating students with textbooks, having a functioning SMC, and respecting the procedures as established in the operational manual, including the positive list of eligible expenditures. A list of qualifying schools is set out by the Departmental Education Offices (Direction Départemental d’Education–DDEs), and submitted to the Tuition Waiver Steering Committee (Comité Paritaire) that validates the list. Participating schools will be selected from a pool that has met the selection criteria, with the total number of schools to be selected being a function of the available financing for the programme. 6. Selection of students: All students, between the ages of six and eight, entering Grade One for the first time, are eligible for support under the programme. Once in the programme, the participating cohort and future cohorts entering Grade One will be eligible for support if the programme requirements described above are met. 7. Management of transfers: SMCs of participating schools open Bank accounts in a local commercial bank (Banque Nationale de Credit), to which funds are transferred from DAA at the beginning of the school year. The first transfer represents an advance of 60% of the total annual subsidy. Funds are managed by the President of the SMC and the school director, both of whom must sign on the checking account of the SMC. Payments are made according to a list of 10 expenditure categories. 8. Strengthening the SMCs: As under EFA I, specific activities will be undertaken to strengthen the capacity of SMCs in the areas of school management, and financial management. Training will be provided using a simple financial management training manual. This will be undertaken by NGOs, as is currently the case under the existing programme. 9. Monitoring: All schools are subject to inspection by the MENFP’s inspectorate. SMCs must submit financial reports to inspectors, which are then transferred to the DDEs for validation. Contrary to the original programme design, financial reports will no longer be transferred to the DAA, and do not trigger payments of the second tranche. Rather, a third party verification firm is contracted to conduct a technical audit of 100% of participating schools. The audit assesses compliance with programme regulations as outlined in the operational manual, and verifies the number of participating children. The technical audit report then confirms the number of beneficiary children, and the payment of the second tranche to the school is authorised. 10. Proposed improvements: Among the proposed innovations and improvements of the programme under EFA II is a continued evolution toward a results-based model, the introduction of greater accountability of participating schools, and the strengthening of sanctions for noncompliance. In addition to making payments conditional on the findings of the technical audit, schools performing well according to certain standards might be eligible for receiving additional students. To enhance the quality of instruction at the school level, a bonus will also be paid to participating schools that employ graduates from FIA. In addition, the role of SMCs will be heightened in order to improve the transparency of the programme and foster greater accountability of teachers and school directors to parents for student learning outcomes through instruments such as a school scorecard. Local authorities will also be expected to play a greater supervisory role in the programme. Finally, based on the lessons learned under Phase I, sanctions for non- compliance will be better defined and used more widely.  APPENDIX 2.1 Page 3 of 16 11. Sustainability: As the tuition waiver programme is expanded, the likelihood that GOH may be able to absorb the overall fiscal burden, is diminished. A medium to long term transition strategy is therefore currently being finalised. This includes mobilising increased public resources for the eventual transfer of the programme to the Government, as well as a number of measures that would render the programme more affordable. This may include: (i) a lowering of the per student subsidy (from the current level of $90), (ii) introducing a cap on how much each school can receive, either per year or cumulatively, and/or (iii) clearly defining a graduation from the programme for participating schools, such as capping participation at six years, once the initial cohort has graduated. This will be part of ongoing discussions between MENFP, MEF, WB and CDB. Support to Communities 12. This component will use a community-empowerment approach to mobilise and manage resources to address major gaps in the basic education service provision such as teacher assignment and school construction. This model improves on existing community-based education activities in Haiti which generally do not involve the MENFP. The proposed model supports the community to deliver services under the supervision and with the support of MENFP and local government, using FIA project trainees, where possible, with additional support. This component will channel grants and training to communities targeted by the project to provide basic educational services to school-age children. The grants will be provided in two streams: one for teacher salary payments–which are a recurrent cost, and one for school construction and supplies, which are investments. Established financial mechanisms will be used in communities where the WB and CDB supported Rural Community Driven Development Project (PRODEP) is active. The proposed project places an emphasis on community ownership and on decision- making processes with the support and oversight of the MENFP, which will develop guidelines and safeguards acceptable to WB and CDB, and will invest in training for community members in order to help them fulfill their roles. CDB financing will provide for the construction and furnishing of schools, complete with kitchen facilities, in four rural districts. The component will also include the recruitment and payment of teachers, and a robust component of training for community leaders to assist them in developing the capacity to oversee the full operation of the school. Implementation of this sub-component will follow a multi-step project cycle: (a) Step One: All communities in the zone of intervention will be informed of the project’s objectives, the opportunity to access project grants to manage a community-based school and build a minimum package of facilities. They will also be informed of the eligibility criteria; the procedure for application, appraisal and approval; and the obligations of targeted communities to manage recurrent and investment funds; and reporting. The MENFP will be supported to prepare and disseminate a simple illustrated Community Guide in Creole describing the project steps to communities. (b) Step Two: Following information dissemination, the second step is the selection of communities, according to a demand-driven process conducted by DDE (Directions Départementales de l’éducation) on the basis of a number of eligibility and priority criteria. Rural communities are assigned to categories based on their level of access to basic education services, the size of their school-age population and the level of social capital within the community.  APPENDIX 2.1 Page 4 of 16 (i) Eligibility criteria are as follows: (aa) Demonstrated dearth of schooling: Communities with a public school or other educational institution offering continuous primary education up to 6th grade exit exams have achieved minimum access, and therefore are not eligible. Communities with no educational services or incomplete primary education services, i.e. insufficiently developed to include 6th grade exams, will be considered for project support to develop a community-based school. (bb) Minimum school age population: Rural communities with at least 25 children of primary school age will be eligible. Exclusion of communities with a smaller number of school-age children is for cost effectiveness considerations related to teacher training and salary cost. The “cluster model” of support defined in the SNAEPT will be applied until such time as the school is fully established. (cc) Minimum level of community organisation/social capital: Community- based Organisations (CBO) are a proxy for social capital. The existence of CBO(s) is considered as an indication of the potential level of community mobilisation; therefore, a minimum of one existing CBO is required. (dd) Priority criteria: It is expected that the combination of these criteria will eventually lead to a greater number of eligible communities than the number which can be supported under this sub-component. Community requests will be ranked by the DDEs in a priority listing on the basis of weightings attributed to the eligibly criteria as detailed in the Project Implementation Plan and disclosed in the Community Guide. (c) Step Three: Community Capacity Building. (i) Training communities: Training of community members in selected communities will be provided through six training modules to enable them to establish, oversee the building of, and run a school. Several training models exist in the Haitian context, including those of the DAEPP (MENFP) and PRODEP using some elements of the Grassroots Management Training (GMT) approach. A GMT programme will be provided to communities in six modules: (i) community organisation, (ii) project preparation; (iii) community procurement; (iv) financial management by communities; (v) participatory M&E; and (vi) school management and maintenance of facilities. Training delivery to communities will be supervised by the MENFP and done by GMT consultants financed by the project, who will also train members of the DAEPP, the DDE and Inspectors for development of skills. Local government, particularly Community Councils (Conseil d’administration de la section communale) along with existing CBOs will be involved in the process in order to provide continuing support to the community beyond the life of the project. If this approach proves inadequate, NGOs with relevant experience and expertise will be contracted to provide supplemental support.  APPENDIX 2.1 Page 5 of 16 (ii) Formation of SMCs: Who will have the responsibility of representing community interests in managing the school. The GMT programme will begin with community-wide training in organisational management and decision-making. This will result in the selection of SMC members. This phase will include the creation of the SMC to manage the community project and the democratic selection of its members. The head of the SMC will be responsible for signing the Financial Agreement with the MENFP. Respect for the roles and composition of the SMC over time will be assured by the Inspectors and local government personnel as well as existing CBOs. As the official liaison between the school and the community, the SMC will be responsible for following up and responding to low scores on report cards and other measures of student learning outcomes as well as publicly recognising teacher achievement to help motivate high performing instructors. (iii) Formation of sub-committees: Two ad-hoc sub-committees will be created: firstly, the Project Implementation Committee (PIC), to undertake the day-to-day management of the construction project, including the procurement process; and secondly, the Communication Transparency Committee (CTC), to disseminate project information to the community at large. All members of the SMC, PIC and CTC will receive relevant training modules in the GMT programme outlined above. All training will incorporate gender sensitivity. District-level education bureaus, local representatives and especially inspectors, will participate in the GMT process. Inspectors and the SAEPP will be supported to take a leadership role in the community training process. Figure 1 indicates the Community-based Management Structure. Figure 1: Community-based Management Structure 13. Financing Agreement for Grant support to the school: This activity will include the signing of a Financing Agreement (FA) between the SMC representing the community and the MENFP. The FA will explicitly identify the respective obligations between the MENFP and the community regarding the school-  APPENDIX 2.1 Page 6 of 16 based management of the funds granted to the community by the MENFP to support the community- managed school. It will be the contractual document allowing the grant disbursement to SMCs for teacher salary payments, purchase of essential learning materials, school construction and equipment. In order to manage these funds, SMCs will open two separate bank accounts to receive the investment and recurrent components of the Grant, respectively. 14. Implementation of the FA by communities: The FA includes, on a contractual basis, all of the funds granted by the MENFP and related recurrent and investment activities that will be carried out by the community with these funds. The disbursement schedule will seek to strike a balance between guarding against risks by regularly transferring small amounts and recognising the limits of Ministry capacity to manage large numbers of financial transactions for each community. (a) Teacher recruitment by community Communities will hire teachers on the basis of selection method, criteria and standard local contracts defined in the Project Implementation Manual and the Guide, on the basis of local contracts. Teacher-candidates must meet minimum thresholds for educational attainment, and in reading and math abilities, as established by the FIA project. Rural communities often have small numbers of relatively well-educated individuals in residence, with additional members working in nearby urban centres. Community assessments during the preparation phase indicate a strong willingness on the part of these individuals to return to their home communities if employment is available. Once local teachers are selected, (sub- component 2.1, below), grant funding will be provided to SMCs in order to pay teacher salaries and teacher education grants for FIA institution-based instruction. (b) Instructional materials To take advantage of economies of scale and ensure high levels of quality, books and other materials will be procured centrally and distributed to the communities. The minimum number of textbooks per student is three. This figure is for textbooks and does not include reading materials for each grade to support literacy acquisition and development which will be provided to each school through the Lekti se Lavni literacy framework. (c) Management of school construction by community The school construction activity will be managed by communities through their SMC and the PIC. To manage these activities, communities will procure and manage contracts for: (i) works, (ii) furniture and (iii) services for technical site supervision. Works and furniture will follow MENFP’s planning, architectural and technical norms. The minimum package of facilities will include construction or rehabilitation of two classrooms with separate latrines for boys and girls and a water-access point up to $40,000. Larger grants for construction of three or more classrooms will be made available if justified by the numbers of local school age children. In addition to two classrooms to accommodate Grade One, communities supported by CDB funding will receive six additional classrooms to also accommodate ECD and multi-grade classes. Technical site supervision will be provided by a private sector technician competitively selected by communities on the basis of a roster of competencies created and updated by the MENFP. Simplified standard documents adapted by the MENFP from similar documents developed by other CDD projects such as PRODEP, will be used by communities wherever possible.  APPENDIX 2.1 Page 7 of 16 (d) Communities will be provided with training to enable them to maintain the schools. After the project they will be expected to generate resources from community activities to assist in funding maintenance. 15. Supervision: The implementation of FAs by communities will be supervised by the DDE which will present physical and financial reports to the central office of DAEPP and the DAA in the MENFP. The civil-engineer attached to the DDE will monitor the quality of the construction managed by communities, and report to the DDE. The overall supervision of the technical quality of construction will be the responsibility of the DGS. The DGS will prepare school designs and bidding documents, evaluate contractors’ bids and authorise payments for works completed. The construction programme will be subject to annual technical audits carried out by independent technical auditors. 16. Financing and sustainability: Funds channeled to support the recurrent cost of locally hired teachers’ salaries will be co-supported by WB and CDB on a decreasing basis, from 90% percent in Year 1 to 10 percent in Year 3, while GOH will gradually take the difference from the domestic budget. 17. Table 1 summarises the training to be conducted as part of Sub-component 1.2. TABLE 1: SUMMARY OF COMMUNITY-BASED TRAINING AUDIENCE CONTENT DURATION PROVIDER Target Community Project description, Three meetings on GMT consultants with democratic processes for three separate days Community mobilisation SMC selection 2+ hours each team (DDE consultants, inspectors) School Management Financial management, One week initial GMT consultants with Committee (SMC) procurement, monitoring, training, regular Community mobilisation dispute resolution, school follow up training team (DDE consultants, management and inspectors) maintenance, DGS transparency etc. Project Procurement (detailed) Four days GMT consultants with DDE Implementation consultants, supported by Committee World Bank FM team Communication Community information One day with Community mobilisation Transparency transparency, periodic team (DDE consultants, Committee anticorruption follow-up inspectors) Sub-Component 1.3: School Health and Nutrition 18. This sub-component will expand the Government’s school health and nutrition programme. Implemented by the National School Feeding Programme (Programme National des Cantines Scolaires) (PNCS), the programme is delivered by NGOs sub-contracted by the MENFP through the PNCS. International and national evidence have demonstrated the value of such programmes. In Haiti, the programme serves both the objective of increasing access, through providing an added incentive for families to enroll and send their children to school every day, and quality, as otherwise hungry and unhealthy children have difficulty concentrating in the classroom. CDB financing will provide meals for the 900 students expected to enroll in the four community schools being constructed as well as an additional 5,000 students. De-worming will also be provided for the national PNCS programme.  APPENDIX 2.1 Page 8 of 16 19. Selection of NGOs: Using WB procurement procedures, NGOs (or firms) will be contracted according to a national bidding process. Recruitment will be done in pre-identified target areas of the country, at the local level (section communales). Working in close collaboration with the MENFP and the PNCS, unit prices will be established for the package of services to be delivered. Proposals will therefore only be judged on the quality of their submissions. 20. Package of services delivered: As per the contracts, the NGOs will deliver both morning snacks and a hot meal daily to participating schools. The programme also contains a de-worming component, with the distribution of micro-nutrients to all schools twice a year. Service providers are meant to deliver approximately 1,500 kilo-calories per day, per child, or an estimated 75% of the daily kilo-calories needed per child. This information is withheld in accordance with one Component 2: Support to Teaching and Learning ($..) or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy. 21. This component consists of the following: (a) expanding the number of certified teachers, including preschool teachers, through the carrying out of pre-service and in-service teacher training; (b) improving primary school performance through, inter alia: (i) developing a teachers’ guide, including lesson plans, for each day of class; (ii) introducing pre-school education in communities supported by the project to be selected in accordance with criteria acceptable to WB and CDB; and (iii) developing distance education policies; and (c) provision and development of materials for ECD and Multi-grade. Expand Pre-service and In-service Teacher Training 22. This sub-component will increase the annual output of trained teachers to approximately 1,200 per year while improving teacher competencies. Working in partnership with Teacher Training Institutes (Instituts de Formation des Maîtres–(IFMs)), the project will provide one year of intensive institution-based training, followed by two years of practicum training in the classroom. The programme will also be updated to include training at the ECD level. CDB financing will support in-service training for ECD and multi- grade teachers, all teachers in the four community-based schools being constructed, and the development of resources to support instruction. 23. As with the EFA Phase I, block grant payments will be made to selected IFMs, in order to finance the costs of institution-based training of student-teachers and IFM supervision of their practice teaching. In addition, IFMs will receive in-kind support financed by the project. This includes textbooks and other teaching and learning materials, minor rehabilitation works, and equipment. Additional support would be tailored to the needs of individual IFMs. Professional development for teacher educators will also be financed, as will the stipends for teacher educators and student-teachers. Funding for the implementation of the teacher preparation programme will be allocated to the IFMs based on the number of student-teachers to be trained. The certification of student teachers and the strengthening of teacher placement systems for the public and non-public sectors will also feature among the activities to be financed. Finally, the project will also support capacity building of the DFP and SAPs, who also support teacher preparation.  APPENDIX 2.1 Page 9 of 16 24. Recruitment of student-teachers: Recruitment campaigns will be organised at the regional level, under the management of the DDEs and IFMs, and overseen by the DFP. Recruitment strategies will include MENFP press releases, radio advertising, print media, and the use of the website already established for FIA. DDEs will be responsible for: (i) participating in recruitment campaigns; (ii) managing the candidate registration process; (iii) managing candidate files; and (iv) supervising the entrance exam, in conjunction with IFMs. At least 1,800 candidates will be accepted each year; however, the exact number to be accepted per IFM will be based on IFM capacity. As per the current design of the programme, selection of student-teachers is based on an entrance exam and other criteria-such as age and gender balance, developed at the national level and implemented at the decentralised level by the DDEs. A geographic distribution requirement will be added, in order to ensure that students from under-served areas targeted by the community-based school component will be included. To qualify as entrants, student-teachers need to have completed, at a minimum, their secondary education (Bac II) and apply for the programme as per the instructions published by the MENFP. Pre-selected applicants are admitted into the programme after passing the basic entrance exam measuring their understanding of key topics in the basic education curriculum and an evaluation of their commitment to the teaching profession. Admitted participants receive stipends, equivalent to half of a public school teacher’s salary, during their years as trainees, and upon graduation are expected to be absorbed into public schools and schools participating in the tuition waiver programme. Those students from communities benefiting from the community-based schools component will receive their stipend directly from the SMCs so as to maintain community participation throughout the training process. 25. In-service Training: Having benefitted from the evidence of EFA Phase I with regard to the non- assignment of trained teachers, attention will also be given to the development of an in-service training programme. IMFs located in the South will be contracted to design and deliver programmes of in-service training for teachers of the CDB-sponsored community based schools, as well as selected ECD and multi- grade teachers from other schools in the south. They will be required to develop and deliver the programmes, at specified periods, using a variety of modalities, including on-site training and mentoring support, after-school workshops and vacation courses. Modules will be comparable in standards to those delivered in the pre-service programmes. WB and CDB will enter into discussions with MENFP relative to certifying the teachers completion the in-service programme once they successfully complete all designated requirements of the programme. All training modules will incorporate gender sensitivity and gender responsiveness. 26. Selection of IFMs: Twelve IFMs, both public and non-public, are currently participating in the programme, having been selected following a nationwide study of IFM capacity using criteria developed by the MENFP; it is expected that eight additional IFMs will be identified for entry into the programme under the project. Any non-accredited institutions which may be selected due to location and a lack of nearby accredited facilities will be required to become accredited as a pre-condition for receiving WB and CDB funds. Performance-based contracts will be signed annually between the MENFP and the IFMs setting the terms for the provision of training services and practice teaching support to student-teachers, strengthening of IFM training capacity, expansion of the number of spaces available in each institutions, financial and technical support and supervision to be provided by the MENFP to the institutions, and minimum performance indicators for student graduates. 27. Design and revision of training curriculum: The training curriculum is based on existing teacher preparation curricula in Haiti and on current research-based methods of instruction, particularly in reading, writing and mathematics. It consists of 10 full-time months (one academic year) of institution-based training, divided into (i) three months of intensive instruction in the core topics of the basic education curriculum (French, Haitian Creole, and mathematics), followed by an exam in which only those mastering these concepts will be admitted to professional training; and (ii) seven months of professional training in  APPENDIX 2.1 Page 10 of 16 child development, as well as subject-specific and general teaching methods. More specifically, topics covered during the seven months of professional training include: (i) content and methods for core subjects of the primary curriculum (particular emphasis on Creole literacy for Grades One and Two, the transition to French, Creole as a subject, mathematics, social sciences and experimental sciences); (ii) lesson preparation; (iii) classroom management; (iv) the effective use of teaching and learning materials; (v) evaluation of student learning; (vi) relationships with parents and communities; (vii) professional ethics; and (viii) class/school administration. The curriculum has already been developed and modules have been elaborated and piloted under FIA. However, the project will continue to revise these materials as needed based particularly on lessons learned from the practice-based skills focus of the pre and in-service training of community-based teachers. The revision will include the integration of the Lekti se Lavni literacy methodology into the curriculum. 28. Selection for practice teaching and certification: Following institution-based training, student- teachers must pass a competency-based practical exam permitting them to proceed to the two-year practice teaching phase of the training. This phase of teacher preparation is designed to assist student-teachers in the transition from being students themselves to being full-time teachers working with children. Practice teaching will be conducted in schools selected on the basis of criteria developed by the MENFP central level in collaboration with the offices of the Departmental Directorates of Pedagogic Support (Service d’Appui Pédagogique). During practice teaching, student-teachers will submit a report of their progress every three months, monitored by SAPs; they will also periodically return to IFMs for additional teaching support and skill-building. At the end of the practice teaching phase, student-teachers will be certified by the MENFP. Certification consists of two parts: (i) scores on the nationally developed, locally-administered exam given at the end of the ten-month institution-based training phase; and (ii) scores on nationally-developed and locally administered protocols to evaluate student teaching. 29. Student-teacher educators: Quality student-teacher educators would be recruited and selected by IFMs as necessary, to meet the minimum background and teaching experience as required by the MENFP in its contract with the IFMs. All teacher educators will receive professional development training based on the new curriculum and approaches of the programme, throughout the life of the project. Professional development activities will be designed and executed by international and national experts and/or institutions, with support from the DFP and other MENFP structures. For each IFM, the project will also finance the hiring of: (i) a full-time Pedagogic Director, responsible for the pedagogic supervision of student-teacher educators, and the proper application of the teacher training curriculum; and (ii) a full time Practice Teaching Director, responsible for the coordination and management of the group of practice teaching supervisors assigned to student-teachers originating from their respective IFMs. 30. Student-teacher stipends: During both the institution-based training as well as practice teaching phases, student-teachers will receive a stipend equivalent to half of an untrained teacher's (recruté) salary. 31. Improved management of teacher preparation: The project will also support the institutional strengthening of (i) the DFP, which pilots programme implementation, through the provision of office equipment and rehabilitation works; and (ii) the SAPs and their inspectors, who will receive resources from the project to undertake monitoring of practice teaching and field missions.  APPENDIX 2.1 Page 11 of 16 Support to Reading Instruction and Distance Education ($) 2. This sub-component will produce a cadre of qualified community instructors in rural areas by providing the pedagogical training needed to effectively teach children in the target communities. The core of the activities will relate to improvements in the instruction of reading to children, including reading instruction policy development, improvements to programme development, and the financing of increased and enhanced reading instruction activities. Past teacher training programmes in Haiti have tended to increase human capital without regard to the degree of personal connectivity to the community in which educational services were to be provided. This has led to a high degree of teacher attrition to urban areas following training, an outcome this component will mitigate by focusing inputs on community members. 33. Integration with FIA (financed under sub-component 2.1): Communities without access to primary education will be identified and referred through the community-based education component of FIA participating teacher training schools. Community members with requisite qualifications will apply to the nearest IFM and return to the community to teach after completing their first year of institution-based training. Multiple members of each community will go through the FIA programme in order to create a reserve of qualified individuals to assure instruction through at least Grades One through Six. All FIA teachers will be hired initially as “trainees,” and as they complete their training will be offered salaries according to the Government salary schedule. In the first year of programme, educational services will be provided either by existing community members with degrees in education or FIA students who have completed at least one year of training and are resident in the area. 34. Supplemental Training: Four weeks of supplemental training will be provided to all community-based instructors to encourage appropriate and effective instruction, namely school administration, classroom management, key instructional techniques, and instructional delivery using the Teacher’s Guide (see below). The supplemental teacher training will follow research showing evidence of success when teachers are taught to manage classroom time to maximise instruction, to use lesson plans that keep students engaged and are given access to training that focuses on specific instructional methods to be implemented by all instructional staff. In addition, two weeks of training in the Lekti se Lavni (reading is the future) literacy methodology will be provided. 35. Continued accompaniment of instructors: Significant levels of support will be needed for FIA graduates to become effective teachers in the community-school context. FIA students are normally placed in fully functional schools where they receive mentoring from other teachers for the two-year portion of their practical training. Since these student-teachers will be working in contexts where schools are still being developed, additional support will be provided. This additional support includes multiple monthly visits from technical specialists funded by the project to support classroom instruction techniques developed during training in order to ensure student learning outcomes. In addition to pre-service and in-service training, a Teacher’s Guide will be developed with lesson plans for each day of class. The Guide represents a significant investment of resources, and is considered a central element for quality instruction. Teachers will be further supported with distance learning modules both as a model of effective pedagogy enhancing student learning, as well as a resource for in-service training. This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.  APPENDIX 2.1 Page 12 of 16 36. Focus on literacy acquisition: The proposed teaching methodologies include Lekti se Lavni, a reading instruction approach aimed at children in early grades already in use by MENFP. Lekti se Lavni has been developed and tested in a variety of countries under different names (e.g. Systematic Method for Reading Success in Africa), and has proven effective. Lekti se Lavni has been used in different contexts in Haiti, with reportedly strong impacts on teacher practice and student learning. Save the Children has worked closely with the MENFP to develop Lekti se Lavni, and the DFP has established a cadre of trainers and identified quality reading materials for students, something of vital importance in the text-poor environments of rural Haiti. 37. MENFP requires that these resources be used as a part of project implementation. The methodology includes a highly structured approach to phonemic awareness, repetition of sight words, listening comprehension, guided and independent reading, as well as regular individual assessment. While some additional adaptation may be desirable, particularly in increasing the flexibility of the methodology, this approach is largely ready to use. Ministry trainers will train identified community-based education providers along with inspectors and Pedagogical Counsellors to implement and provide support for this proven methodology. The community schools supported by this project may be used as models for the introduction of Lekti se Lavni by other education providers, with potentially significant dividends in terms of student learning. Further improvement of the instructional methodology would take place after at least one full year of implementation. 38. Distance education will support improved educational quality using distance education instruction. The use of interactive radio instruction (IRI) and other technologies will help to establish a minimum educational service provision level that may function in remote locations in areas of low teacher capacity, promoting free access to quality instruction and supporting teacher training objectives. Student learning gains have been reported in Haiti for IRI, as well as for radio-instruction internationally. The project will improve upon and modernise the IRI programme using new technologies and content developed by other donors and actors in education in Haiti. 39. Introducing one year of preschool: This component will also support the downstream integration of ECD in the largest project-supported community-based schools. Current research indicates significant returns including learning gains in later years from early childhood education. Integration of pre-school instruction represents a mechanism to combat the generally very low levels of student achievement nationally. The CDB financed components provide access through the provision of classrooms in the community schools for ECD, as well as a number of institutional strengthening activities to enhance the delivery and monitoring and evaluation of ECD.  APPENDIX 2.1 Page 13 of 16 40. Table 2 presents a summary of the teacher training to be provided under the project. TABLE: 2: SUMMARY OF TEACHER TRAINING Audience Content Duration Provider/Manager Pre-service teacher Lekti se Lavni, Classroom Four weeks DEF, DDE, consultants training management, key instructional attached to the DDE. techniques, lesson delivery, parent/community communication. In-service teacher Reinforce pre-service material, One or two days every Pedagogic counselors, training adaptation of instruction to three weeks; after- Pedagogic consultants individual students and contexts. school workshops; attached to the DDE. vacation courses. Refresher training Extension of pre-service material, Two two-week periods DEF,DDE, consultants teachers as community leaders, during school holidays. attached to the DDE. completion of Lekti se Lavni cycle. Component 3: Institutional Strengthening and Governance 41. This component consists of the following: (a) Building the institutional capacity of MENFP to improve service delivery and overall educational governance through, inter alia, the strengthening of: (i) the MENFP’s directorate for administrative matters, the directorate for assistance to private teaching, the directorate for basic education, the directorate for training and professional development and the directorate for school of engineering; and (ii) its departmental education directorates at the departmental level; and (b) Strengthening of public-private partnerships through, inter alia: (i) the provision of technical assistance to ONAPE to operate its administrative and technical departments; (ii) the acquisition of equipment and the renting of office space to house ONAPE; and (iii) the enhancement of demand side accountability by designing and implementing community scorecards and community reading assessments. Modernisation and Transformation of the MENFP 42. This sub-component will continue the work of modernising and transforming some of the MENFP’s key units at the central and decentralised levels, with new operational modalities, begun under EFA I. With regards to the fiduciary management, it is expected that the emphasis will be placed on establishing new operating procedures within the DAA, and providing intense training in the procurement and financial management units. The capacity for undertaking periodic and timely internal audits is also expected to be a central aspect of this sub-component. A consultancy will be financed to help the DAA (i) produce an administrative and fiduciary procedures manual for the DAA as well as a simple fiduciary guide for local communities; (ii) train DAA fiduciary staff in WB and CDB procedures in financial management and procurement; (iii) help the DAA dialogue with the Tomate team and set up the Tompro accounting software in order to enable the DAA to make proper use of not only the accounting module but also the budget, the DRF, the capital assets, bank reconciliation modules IFRs, and financial statements acceptable to the Banks; (iv) produce a financial management assessment of the education sector and a multiyear action plan for strengthening the capacity of the DAA to (a) prepare annual budget submissions, including external funding, to MEF and; (b) prepare and monitor a sectoral Medium-Term Expenditure Framework; (c)  APPENDIX 2.1 Page 14 of 16 monitor external funding at the sectoral level; (d) implement and follow-up budget execution; (e) increase decentralisation at DDE level of administrative and financial workflow. 43. The sub-component aims to enhance OPE implementation by supporting the central and decentralised offices associated with project activities. At the central level, the subcomponent will support the Directorate of Administrative Affairs Office (Direction des Affaires Administratives) (DAA), the Directorate of Support to Private Education and Partnership (Direction d’Appui à l’Enseignement Privé et au Partenariat) (DAEPP), the Directorate for Basic Education (Direction de l’Enseignement Fondamental) (DEF), the Professional Development Unit (Direction de la Formation et du Perfectionnement) (DFP) and the Directorate for School Infrastructure (Direction du Génie Scolaire) (DGS), in their respective role for each project component. With respect to the Departmental Directorates of Education (Directions Départementales de l’Education) (DDEs), this sub-component will strengthen their ability (i) to provide close support to schools, teacher training centres and communities, and (ii) to supervise the implementation of OPE activities at the local/regional level. The support to the DDEs will be completed through a project- based budget agreement between the MENFP and the regional units. Areas in which the project will support MENFP at the central and decentralised levels include transport, communications, procurement procedures, data collection, analysis and reporting. The project will finance consultants, works, goods, services and operational costs. Supporting Public-Private Partnerships and Community Involvement 44. This sub-component aims to further the dialogue and collaboration between the public and non- public sectors, and foster the establishment of public-private partnerships through the creation of the National Education Partnership Office (Office National de Partenariat en Education) (ONAPE). The ONAPE was signed into law in 2007, though it never materialised institutionally due to political inertia. This sub-component will finance the updating of ONAPE’s operational manual, as well as the requisite technical assistance for the administrative and technical departments of the ONAPE to be established and rendered operational. It will also finance the necessary equipment and rental offices to house the ONAPE. 45. Under EFA I, progress was made toward the establishment of the ONAPE. The draft law was prepared, and a successful bipartisan lobby effort led to its approval by the Haitian Parliament. It subsequently became law in late 2007. Unfortunately, it remained low on the agenda for the Government, which faced a series of external shocks. Without the appointment of the Director-General, it proved impossible to move forward with the establishment of the institution. However, there is renewed interest to put this structure in place. 46. Financing the implementation of the capacity-building plan: Ministry priorities for support have already been assessed at the local level, and central-level needs are largely known from current project financed activities. Areas in which the project will support MENFP at the central and district level include transport, communications, procurement procedures and data collection. A post-earthquake study co- financed by WB was conducted on the needs of District education offices (DDE Evaluation Mission Report, April 2010). These findings will form the basis of the MENFP capacity building strategy at the local level. However, the scope of the project will involve a number of other Directorates at the central level, particularly the DAEPP and the DFP, which will play a key role in project implementation and curriculum development. The DAEPP is already supported by a pilot programme, and this support will continue and expand under the proposed project. 47. Strengthening DDEs: The project will finance the implementation of the capacity-building programme. Specific activities include undertaking of an institutional audit to systematically identify needs of personnel as well as materials required, training of MENFP staff in the decentralised offices, provision  APPENDIX 2.1 Page 15 of 16 of communication materials (such as computing equipment and connections to the Internet), and transportation resources. The DDE Evaluation Mission Report found that DDEs needed small amounts of petty cash to repair existing vehicles and pay for gas in order to enable inspector visits. The project will therefore provide grants to the DDEs to repair and maintain these resources in order that a defined number of school visits may be conducted by the inspectors each month. This will also require some increase in the ability of the DDE’s to record and report basic data. 48. Measuring student-level outcomes: Student learning is widely acknowledged to be very low in Haiti despite significant spending by families on education services. The project will support the MENFP in developing a simple, easy-to-use tool to measure student learning across the primary grades. The tool will draw from existing instruments, e.g. those developed by Pratham (Assessment Survey Evaluation Research) to rapidly measure both math and reading achievement as an indicator of overall student learning. Tool flexibility is essential, as questions can easily become public and student achievement is likely to vary widely. The tool will be used to sample groups of randomly chosen students on a monthly basis initially in community-based schools, and then will be gradually introduced to tuition waiver schools. Depending on the context, the tool will be used by Inspectors, Pedagogic Counsellors (Conseillers Pedagogiques), consultants attached to the programme and/or members of the SMCs charged with monitoring and supporting school quality. 49. Fostering demand-side accountability and better informed parents: It is important that parents and the wider community as well as Ministry and local elected officials have accurate information of the level of services delivered. The results obtained by the student learning assessment tool will be communicated to the parents and other interested parties via report cards. This top-down (Ministry, local government) and bottom-up (parents, community members) information and monitoring approaches on their own are unlikely to have strong impacts on teacher performance and student learning. When the information and monitoring are combined with training and grants provided either as a part of the tuition waiver component or the Community-based education component along with concrete options for collective action, greater effects on teacher performance and student learning outcomes are expected. The student learning assessment tools will be developed in year one and tested with the report cards during year two in community-based schools and then gradually implemented in donor supported tuition waiver schools in year three and future iterations of EFA. Component 4: Project Management, Monitoring and Evaluation This component consists of the following: 50. Strengthening MENFP’s monitoring and evaluation capacity through (i) the improvement of MENFP’s monitoring and evaluations systems; (ii) the carrying out of an impact evaluation of the project; and (iii) the provision of technical assistance to oversee the implementation of project activities under Parts 1, 2 and 3 of the project. 51. This component will support increased capacity on the part of MENFP to implement the project. The project will make use of the existing implementation structure under EFA 1. This component will seek to further integrate the project team into national structures, and strengthen the overall capacity for the management, monitoring and evaluation of project and other priority activities as outlined under the OPE. 52. Coordinating implementation and generating monitoring reports: Activities to be financed include project Management costs to implement and supervise activities and strengthen the MENFP monitoring and evaluations systems, including undertaking two waves of EGRA, and a robust impact evaluation for the Tuition Waiver Programme. The component will support the costs of consultancies associated with the  APPENDIX 2.1 Page 16 of 16 existing Project Management Team, including the Project Coordinator, the administrative staff, and technical consultants overseeing the implementation of specific project activities. The existing administrative staff (procurement specialist, procurement officer, financial management specialist and financial management officer) will also continue to be financed. In addition, the rent for the current location where the team is based will be supported by the project. With respect to monitoring and evaluation, the independent verification systems for the Tuition Waiver Programme will be strengthened, and the component will finance the development of basic training materials for community-based teachers to ensure the recording of essential project data such as student attendance and enrolments by age and gender. Training for inspectors and other DDE-level employees will also be supported with an emphasis on data analysis and reporting. The component will also support studies and evaluations as well as the dissemination of information on project objectives, activities, and results.  APPENDIX 3.1 DETAILED PROJECT COST, FINANCING AND PHASING PLAN This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.  SUMMARY SHEET OF ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK Summary sheet to confirm that Construction of Schools followed standards in the ESMF (must be completed for each school) NO. THEME KEY QUESTIONS YES NO INDICATOR (ATTACH PROOF/CONFIRMATION) COMMENTS Type of Rehabilitation of existing school A technical description (with bills of quantities, etc.). 1. Intervention New construction A technical description (with bills of quantities, etc.). A copy of title must be A letter from the Mayor (for a new school) or Confirmation provided in the case of land Public property from the principal (for rehabilitation) belonging to the State. Private property The title (or a certified copy) and the owner's permission Premises In the case of a gift, the title before Donated as Gift Fill in the form attached in Annex 1 of the ESMF must be notarised. 2. construction No forced resettlement Confirm with the community Personal protective equipment was available Number of work accidents The safety of students was Is construction during the holidays (for rehabilitation) or provided before school (for new school), the number of accidents During No construction waste in/ 3. Construction around the school The site is clean (a picture) There are points for washing hands There are toilets for boys and girls Students’ health assured The toilets work and are cleaned regularly During school There is a system for waste There are garbage bins and adequate arrangements for waste 4. operation disposal disposal away from school APPENDIX4.1  APPENDIX 5.1 SUMMARY OF CARIBBEAN DEVELOPMENT BANK GRANTS TO THE GOVERNMENT OF HAITI AS AT NOVEMBER 22, 2013 (USD ‘000) Project Approved Disbursed Un-Disbursed Capital Projects: Education for All 10,000 10,000 - Education for All (Additional Grant) 10,000 10,000 - Technical and Vocational Training 5,000 4,585 415 Technical and Vocational Training (Additional Grant) 4,000 - 4,000 Urban Community-Driven Development Project 4,000 4,000 - Urban Community-Driven Development Project 5,000 2,308 2,692 (Additional Grant) Rural Community-Driven Development Project 10,000 5,420 4,580 Policy Based Grant 10,000 10,000 - Natural Disaster Management: January 2010 Earthquake – Immediate Response 200 189 11 January 2010 Earthquake Response 770 770 - Tropical Storms and Hurricanes (2008) 400 400 - Support to Meet Commitment to Caribbean Catastrophic 4,120 4.120 - Risk Insurance Facility Technical Assistance: Support to Office of the Prime Minister 149 - 149 Restoration of Public Sector Training Services 817 648 169 Supply of Office Furniture and Equipment 150 150 Total Grants 64,606 52,590 12,016 CDB Use of Funds: Project Cycle Training – Public Service 1,170 527 643 Enhancing Management Capacity in SME’s 398 398 - Preparation of Country Strategy Paper 86 86 - Introductory Mission – Haitian Private Sector Forum 26 18 8 Total Use of Funds 1,680 1,029 651  APPENDIX 5.2 PROJECT MANAGEMENT ORGANISATIONAL STRUCTURE  APPENDIX 5.4 IMPLEMENTATION ARRANGEMENTS 1. Overall coordination: The institutional and implementation arrangements for EFA Phase II will be based in large part on the arrangements currently in place. The National Strategic Committee for the OPE will serve as the steering committee for this operation. The existing PMT within MENFP will be responsible for the implementation of the project. The team is led by a PC and consists of two units: the technical unit (reporting to the MENFP’s External Financing Coordination Unit, which oversees the implementation of the activities according to the proposed components, and an Administrative Unit (reporting jointly to the Project Coordinator and the Directorate of Administrative Affairs (DAA). The Administrative Unit is comprised of consultants and officials from the DAA. An action plan will be agreed to with the MENFP for a gradual transfer of the fiduciary responsibility exclusively to the DAA. Specifically for the Tuition Waiver Programme, a nine member steering committee consisting of representatives of MENFP, MEF, non-public education providers, parents’ associations and teachers’ unions, will appraise and approve eligible Student Enrolment Sub-projects. 2. The design for the implementation arrangements is guided by two strategic decisions: decentralisation, and embedding technical assistance within MENFP, wherever possible. Instead of being embedded in the PMT, or even central units of the MENFP based in Port-au-Prince, external consultants hired to support the technical implementation will be based in the MENFP’s regional DDEs wherever possible, reporting to the MENFP’s Regional Directors. 3. The capacity constraints at the decentralised levels of the MENFP will require intense and systemic strengthening. Under EFA Phase One, the DDEs are currently being reinforced in an effort to enhance their capacity to supervise instructional quality at the school level. WB’s Emergency School Reconstruction Project (ESRP) also strives to strengthen the capacity of regional offices through the training of regionally based engineers and architects in the education sector, and through the implementation of the National Action Plan for Safer Schools (NAPSS). 4. These efforts will be further complemented by the capacity building activities proposed under this project. The findings of the recently completed institutional assessment will result in a time-bound, results- based action plan. These are likely to include the installation of the information technology systems to link the decentralised offices to the central ministry, equipping the regional offices with the requisite computer and transportation resources to remain in close contact with and visit schools and local offices, and training of regionally and locally based staff in the new systems developed under MENFP modernisation and transformation reforms that would be carried out with parallel co-financing under the OPE. 5. With respect to the Administrative Unit, Phase II will make use of the capacity built up under EFA Phase I. Whereas the teams under the Technical Unit will be decentralised wherever possible, it is proposed to maintain a strong centralised team in Port-au-Prince to address all matters linked to procurement and financial management. Under Phase II, the Project’s Administrative Unit will relocate to the DAA, as part of the DAA modernisation and transformation plan. Implementation Arrangements for Component 1: Improving Access to Quality ECD and Primary Education Support to Communities 6. At the central level: In addition to the overall coordination described above, three officers based in Port-au-Prince will play a leadership role in project implementation. The DAEPP will be responsible for executing the project through its decentralised offices at the departmental level. As such, the Director of DAEPP plays a significant role in conceptualising the project design and in determining the required  APPENDIX 5.4 Page 2 of 6 resources and capacity building activities for the DAEPP, especially as it relates to Component 1. The DAEPP has a particular focus on implementing activities relating to community mobilisation and organisation and in designing the partnership arrangements with the communities. DEF will collaborate on all issues related to pedagogy and quality of instruction in schools while DGS will play a supervisory role with respect to quality assurance of small works. 7. At the departmental level: The implementation will be coordinated at the departmental level by the departmental directors for education. Implementation will be the responsibility of the regional representatives of DAEPP, referred to as “SAEPPs”. Inspectors, also based in the departmental offices, will be responsible for assisting with the training of communities, and will continue to supervise the SMCs. They will be in close contact with the SMCs to flag potential problems at the outset, and will be the contact persons for receiving periodic reports from the SMCs. 8. At the community level: Project implementation is expected to be carried out in accordance with structures to be created/strengthened in participating communities. A SMC will be assembled, to oversee all school-related activities, and represent the community in all project-related initiatives. The primary responsibilities of the SMC under this sub-component will be to: (a) select community members to participate in the pedagogic training to become a community instructors; (b) pay the salaries of the community instructors on a monthly basis; (c) appoint community representatives to serve on a School Construction Oversight Committee; and (d) ensure that the necessary communication and information campaigns have been carried out so that the main stakeholders in and around the communities are appropriately informed in a timely manner of project-related activities. 9. School Construction Oversight Committee will be appointed in order to: (a) oversee construction-related activities; (b) contract the necessary workers to carry out the construction activities; and (c) sign off on the completion of activities, so that payment may be effected. Enhance the Tuition Waiver Programme 10. At the central level: As per the existing implementation arrangements for the tuition waiver programme, DAEPP will continue to be responsible for executing the project, through its decentralised offices at the departmental level. However, it is expected that, under Phase II, the National Education Partnership Office (ONAPE) will become operational, at which time management of the tuition waiver programme will be transferred to ONAPE. The DAEPP’s main responsibilities relating to managing the tuition waiver are as follows: (a) boadcast information relating to the programme, including qualification rules and selection procedures; (b) assemble list of qualifying schools, to be submitted to the Tuition Waiver Programme Steering Committee; (c) undertake random selection of schools; (d) gather financial information from schools, to be communicated to PMT for payment;  APPENDIX 5.4 Page 3 of 6 (e) inform communities of selected schools; publish lists of schools in newspaper, outside of MENFP decentralised offices at Departmental and local levels; (f) announce participating schools through the media; and (g) manage the complaint systems. 11. At the departmental level: The implementation will be coordinated at the departmental level by the regional representatives of DAEPP, in close collaboration with the inspectorate. Inspectors will be responsible for assisting with the overall communication between the MENFP and the communities and schools. The following will be among the responsibilities of DAEPP and the inspectors: (a) conduct awareness raising workshops, communicating the rules of the programme, as per the operational manual; (b) receive expressions of interest from schools to participate in the programme, and compile the list of qualifying schools from which participating schools will be selected; (c) inform communities of selected schools, publish lists of schools in newspaper, outside of DDEs, and other locations where they are most likely to be seen; (d) facilitate and participate in the training of the SMCs; (e) facilitate the access to schools for the independent verification agency undertaking the technical audit of the tuition waiver programme; (f) regularly visit schools, and receive the financial management reports from SMCs; (g) keep on file financial management reports of SMCs and facilitate access to reports by financial auditors in coordination with the DGA; and (h) oversee the implementation of community scorecards. 12. At the community and school level: SMCs are responsible for the management of funds transferred and for ensuring compliance with programme operational procedures. SMCs are typically composed of five people: two representatives of parents, two representatives of the community, and one teacher. These five vote for a President, who has signing authority over the account, together with the schools director. The SMC is responsible for: (a) opening the Bank account at the local branch of the National Bank of Credit (BNC); (b) signing the agreement with the MENFP, committing to implementing the programme as per the rules outlined in the operational manual; (c) receiving training in programme procedures, and basic financial management; (d) undertaking all expenditures relating to the subsidy programme, using procedures of financial management procedures acceptable to CDB and WB; (e) preparing financial reports, to be submitted to the local school inspector. Departmental School Health and Nutrition 13. At the central level: The overall strategic direction for the Government’s School Health and Nutrition programme is provided by the National School Feeding Steering Committee (NSFSC) Implementation is the responsibility of the PNCS. Responsibilities include: (a) determining the package of services to be delivered, including establishing a unit price for the agreed upon services, to be validated by the NSFSC;  APPENDIX 5.4 Page 4 of 6 (b) recruiting the NGOs to serve as service providers, together with the PMT, according to WB/CDB procedures; (c) coordinating with the World Food Programme (WFP) and UNICEF with regards to the provision of micro-nutrients for the de-worming activities; (d) supervising NGOs selected for the delivery of services; and (e) Evaluating the performance of NGOs. 14. Role of NGOs: The execution of the activities under the School Health and Nutrition programme are carried out by selected non-governmental organisations. NGOs enter into contracts with the PNCS, stipulating the package of services to be delivered, the agreed upon unit prices, and the geographic region to be served. Responsibilities include: (a) provision of daily services to schools, as per the terms of the contract; (b) carrying out all procurement and financial management, in accordance with contractual agreements and as detailed in the project’s operational manual; (c) maintaining accurate records of service delivery; (d) providing performance reports every six months; and (e) facilitating supervision visits of the PNCS. Arrangements for Component 2: Support to Teaching and Learning Expanding Teacher Training 15. At the central level: The overall coordination of implementation of teacher training is under the responsibility of the DFP, with close support provided by the PMT. Within the DFP, the Director is the focal point, and for the PMT, the coordinator of FIA is the TC responsible for overseeing the programme. He/She is supported by four technical assistants (TAs). The DFP is responsible for the following activities: (a) broadcasting information relating to the teacher training programme, including key dates, qualification rules and selection procedures; (b) broadcasting lists of candidates admitted at each phase of the programme, recording and disseminating student teacher grades on official programme exams, and handling all other official project communications; (c) validating curriculum modules; (d) ensuring timely payment of stipends to student-teachers in training; (e) supervising the compliance of teacher training institutes with contract terms and following up to ensure strong performance of participants; (f) organising training workshops and supervision missions in collaboration with the PMT; and (g) selecting, in collaboration with DDEs and the training institutions, the schools to receive student-teachers for practice teaching. 16. As described above, the sub-division of the PMT working on the teacher training project is composed of the FIA coordinator and four TAs responsible for implementation of specific, key aspects of the programme. These assistants include a TA for the organisation and supervision of practice teaching activities; a TA for curriculum and pedagogic development; a TA for the organisation and operation of the  APPENDIX 5.4 Page 5 of 6 training institutions; and a TA for the project’s management information system. Each TA is paired with a DFP civil servant, and in addition to his implementation duties, is tasked with transferring technical and management knowledge to his DFP counterpart to ensure the sustainability of the programme under the eventual leadership of the DFP. The PMT supports the DFP through undertaking the following activities: (a) provision of technical inputs and recommendations to the DFP concerning all aspects of implementation; (b) organising project activities in order to maintain the project schedule; (c) making regular field visits to training institutions and DDEs to identify bottlenecks and ensure adequate communication among all FIA stakeholders; and (d) carrying out all procurement and financial management, in accordance with contractual agreements and as detailed in the project’s operational manual. 17. At the departmental level: Implementation at the departmental level is undertaken by the DDEs and their supporting staff, school inspectors in particular, many of whom are hired as supervisors for the student-teachers in practice teaching. The main activities carried out by this unit are as follows: (a) supervising entrance exams and other programme exams; (b) selecting, in collaboration with training institutions and the DFP, the schools to receive student-teachers for practice teaching; (c) ensuring adequate support by supervisors to student-teachers in practicum; and (d) collecting and making available in a timely manner student-teacher practicum reports. 18. Role of Teacher Training Institutes: Teacher Training Institutes are responsible for providing training services and a quality learning environment to student-teachers, and effectively managing block grants according to criteria established in the project operational manual and in the contract with the MENFP. Their responsibilities are as follows: (a) signing contracts with the MENFP, committing to implementing the programme as per the rules outlined in the contract and operational manual; (b) submitting quarterly financial reports to the PMT; (c) submitting quarterly pedagogic reports to the appropriate DDE; (d) ensuring student-teacher adherence to student code of conduct while in training; (e) participating in supervision of practicum as outlined in the contract with the MENFP; (f) validating quarterly reports to be submitted by practicum supervisors; (g) selecting, in collaboration with DDEs and the DFP, the schools to receive student-teachers for practice teaching; and (h) submitting to PMT and the DFP practicum reports as required. Arrangements for Component 3: Institutional Strengthening and Governance 19. At the central level: The focal point for the overall institutional strengthening and governance reforms throughout the education sector is the Technical Unit of the General Directorate (DG). The primary responsibility of the External Financing Coordination Unit (EFCU) is to oversee the drafting and endorsement of the institutional strengthening action plan of the OPE. Implementation of activities is then done by the PMT’s coordinator for institutional strengthening, in close coordination with the DG and the  APPENDIX 5.4 Page 6 of 6 DGA. With regards to activities at the central level, such as those targeted to the DAA and ONAPE, the DG will play a central role in facilitating access and authorising the activities. The DGA is the gateway to institutional strengthening activities of the DDEs. 20. At the departmental level: As per the project description, it is expected that the departmental levels will be the main beneficiaries of the institutional strengthening activities. Arrangements for Component 4: Project Monitoring, Management and Evaluation 21. At the central level: As described above, the PMT will be the main entity responsible for executing this component. It is expected that the PMT will work in close coordination with the relevant units within the MENFP, particularly the EFCU), to which the PMT reports, and the planning offices of the MENFP. Other Actors and Stakeholders 22. Teachers Unions, representatives from private schools, SMCs, local NGOs, parent and student associations, and community-based organisations, are critical to the successful implementation of this project. Their key functions include the identification of potential beneficiaries, organisation of social assessments and/or conducting consultations at the community level to gain sub-Projects acceptance, prioritising, planning, proposing activities for financial support, and monitoring of these activities. These actors play a pivotal role in the eventual establishment of the ONAPE.  APPENDIX 5.5 ESTIMATED QUARTERLY DISBURSEMENT SCHEDULE FOR CDB FUNDING Cumulative Year Quarter Grant Total 2014 1 - - 2 - - 3 1,100 1,100 4 963 2,063 2,063 2015 1 - 2,063 2 2,503 4,565 3 2,420 6,985 4 1,210 8,195 6,133 2016 1 605 8,800 2 880 9,680 3 1,320 11,000 4 - 11,000 2,805 TOTAL 11,000  APPENDIX 5.6 PROCUREMENT PLAN This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy.  APPENDIX 6.1 PAYMENT ARRANGEMENTS PART A - PAYMENT OF GRANT 1. GOH shall open and maintain two SAs, one for payment in a currency other than gourdes and the other for payments in gourdes at the Central Bank of Haiti on terms and conditions acceptable to the CDB. The SAs shall be operated in accordance with the terms and conditions set out in Part B of this Appendix. 2. The Grant and the financing provided for in the IDA Financing Agreement shall be pooled in the SAs. CDB and WB shall provide a four-month advance for credit to the account for payment for currencies other than Gourdes based on the procurement/disbursement plans for the project excluding those in respect of the sub-components 1 (a): Primary Education per Student Subsidies. The replenishment of such financing shall be on the basis of a statement of Expenditures regarding the use of such advance in a form acceptable to CDB and WB. Such financing shall be used to: (a) meet eligible expenditures; and (b) make advances to the account for payment in “Gourdes”. 3. Each month, DAA will prepare and furnish to the Bank and IDA applications for withdrawal together with supporting documentation. DAA will keep separate book entries for CDB and WB and the expenditures will be charged to each of them with disbursement tables by components. 4. The Estimated Quarterly Disbursement Schedule for the Bank’s financing is set out at Appendix 5.5. The Bank’s financing shall be used exclusively to meet the CDB’s share of eligible expenditure in both local and foreign currencies as the expenditure is incurred. Reporting arrangements for the use of such financing are set out in Appendix 6.2. PART B - TERMS AND CONDITIONS FOR THE OPERATION OF THE SAs 1. After CDB has received evidence satisfactory to it that the SAs have been duly opened by GOH, GOH shall make a request to CDB for an amount not exceeding four months eligible expenditure to be paid from the Grant and deposited in the SAs (“the Authorised Allocation”). On the basis of such request or requests, CDB shall, on behalf of GOH, pay from the Grant and deposit in the SAs such amount or amounts as GOH shall have requested. 2. Payments out of the SAs shall be made exclusively for expenditures in respect of the reasonable cost of goods, works and services required for the components of the project allocated for financing by CDB as shown in the budget up to the respective limits specified therein (“Eligible Expenditures”). 3. GOH shall furnish to CDB, at regular intervals, requests for subsequent payments from the Grant Account to be deposited into the SAs to replenish that account. Prior to or at the time of each such request, GOH shall furnish to CDB the documents and other evidence required by CDB for the payment or payments in respect of which replenishment is requested. On the basis of each such request, CDB shall, on behalf of GOH, pay from the Grant and deposit into the SAs such amount as GOH shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the SAs for eligible expenditures. 4. For each payment made by GOH out of the SAs, GOH shall, at such time as CDB shall reasonably request, furnish to CDB such documents and other evidence showing that such payment was made to meet expenditures in connection with the project as they were actually incurred.  APPENDIX 6.1 Page 2 of 3 5. Notwithstanding the provisions of paragraph 2 hereof, CDB shall not be required to make further deposits into the SAs: (a) if, at any time, CDB shall have determined that all further payments should be made to GOH directly from the Grant in accordance with the provisions of the Grant; (b) if GOH shall have failed to furnish to CDB, within the period of time to be specified in the Grant any of the audit or other reports required to be furnished to CDB pursuant to the said Grant in respect of the monitoring and audit of the records and accounts for the SAs; or (c) if, at any time, CDB shall have notified GOH of its intention to suspend in whole or in part the right of GOH to receive payments from the Grant pursuant to the provisions of the Grant; and (d) once the total unpaid amount of the Grant allocated to the eligible expenditures, less the amount of any outstanding special commitment entered into by CDB pursuant to the Grant with respect to the project, shall equal ten percent (10%) of the amount of the Grant. 6. Within the period of six months prior to the terminal disbursement date of the Grant, payments from the Grant of the remaining unpaid amount of the Grant allocated to the eligible expenditures shall follow such procedures as CDB shall specify by notice to GOH. Such further payments shall be made only after and to the extent that CDB shall have been satisfied that all such amounts remaining on deposit in the SAs, as of the date of such notice, will be utilised in making payments for eligible expenditures. (a) If CDB shall have determined at any time that any payment out of the SAs: (i) was made for an expenditure or in an amount not eligible pursuant to paragraph 3 hereof; or (ii) was not justified by the evidence furnished to CDB, GOH shall, promptly upon notice from CDB: (aa) provide such additional evidence as CDB may request; or (bb) deposit into the SAs (or, if CDB shall so request, refund to CDB) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. Unless CDB shall otherwise agree, no further deposit by CDB into the SAs shall be made until GOH has provided such evidence or made such deposit or refund as the case may be. (b) If CDB shall have determined at any time that any amount outstanding in the SAs will not be required to cover further payments for Eligible Expenditures, GOH shall, promptly upon notice from CDB, refund to CDB such outstanding amount. (c) If either, or both of the SAs are inactive for a period of six months, CDB shall notify GOH that it will request a refund of the outstanding balance unless, within 90 days GOH submits evidence satisfactory to CDB of Eligible Expenditure financed through the SA or SAs.  APPENDIX 6.1 Page 3 of 3 (d) GOH may, upon notice to CDB, refund to CDB all or any portion of the funds on deposit in the SAs. (e) Refunds to CDB made pursuant to sub-paragraphs 6 (b), (c) or (d) hereof shall be credited to the Grant for subsequent payment or for cancellation in accordance with the relevant provisions of the Grant. 7. Once CDB has received satisfactory documentation from GOH for all amounts advanced to the SAs, GOH shall furnish a bank statement to CDB showing that the account balance has been reduced to zero and the SAs shall be closed.  APPENDIX 6.2 INTERNATIONAL DEVELOPMENT ASSOCIATION FINANCING AGREEMENT This information is withheld in accordance with one or more of the exceptions to disclosure under the Bank’s Information Disclosure Policy. FIGURE 1: MAP OF HAITI