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Document of

The World Bank FOR OFFICIAL USE ONLY

Report No:52843

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PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF US$ 40 MILLION

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TO THE REPUBLIC OF LIBERIA FOR A FAST TRACK INITIATIVE GRANT FOR BASIC EDUCATION PROJECT September 1, 2010

Public Disclosure Authorized

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

CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2010) Currency Unit = Dollar SDR1 = US$1.4789 US$1 = SDR 0.678618

FISCAL YEAR July 1 June 30 ABBREVIATIONS AND ACRONYMS

AfDB ALP CAS CDD CEO CF CQS CSB CSR CWIQ DA DEF DEO DHS DPO DSA ECD ECSEL EFA/FTI EGRA EMIS EMT EPA EPDF ESDC ESDC-EB ESMF ESP EPF EU FBS FM GAC

African Development Bank Accelerated Learning Program Country Assistance Strategy Community Driven Development County Education Officer Catalytic Fund Consultants Qualifications County School Board Country Status Report Core Welfare Indicators Questionnaire Designated Account Division of Education Facilities District Education Officer Demographic and Health Survey Development Policy Operation Debt sustainability analysis Early childhood development European Commission Support to Education in Liberia Education for All/Fast Track Initiative Early Grade Reading Assessment Education Management Information System Executive Management Team Environmental Protection Agency Education Program Development Fund Education Sector Development Committee Education Sector Development Committee-Executive Board Environmental and Social Management Framework Education Sector Plan Education Pooled Fund European Union Fixed Budget Selection Financial Management General Auditing Commission

GDP GEMAP GER GIMPA GIR GOL HD HDI HIPC HIV/AIDS HR HQ IAU ICB IDA IFMIS IFRs ILO IPAM ISA ISDS LD LPERP LISGIS M&E MDGs MOE MOF MOHSW MOU NCB NCHE NER NGO NIR OSI PAD PCN PEMFAR PFM PFMU PIC PID PPCC PREM PRSP PTA PTR QCBS RPF

Gross Domestic Product Governance and Economic Management Program Gross Enrollment Rate Ghana Institute of Management and Public Administration Gross Intake Rate Government of Liberia Human Development Human Development Index Heavily Indebted Poor Countries Human Immunodeficiency Virus/Acquired Immuno Deficiency Syndrome Human Resources Headquarters Internal Audit Unit International Competitive Bidding International Development Association Integrated Financial Management Information System Interim Financial Reports International Labour Organization Institute of Public Administration and Management International Standard of Auditing Integrated Safeguards Data Sheet Liberian Dollars Liberia Primary Education Recovery Program Liberia Institute of Statistics and Geo-Information Services Monitoring and Evaluation Millennium Development Goals Ministry of Education Ministry of Finance Ministry of Health and Social Welfare Memorandum of Understanding National Competitive Bidding National Commission for Higher Education Net Enrollment Rate Non Governmental Organization Net Intake Rate Open Society Institute Project Appraisal Document Project Concept Note Public Expenditure Management and Financial Accountability Review Public Financial Management Project Financial Management Unit Public Information Center Project Information Document Public Procurement and Concessions Commission Poverty Reduction and Economic Management Poverty Reduction Strategy Paper Parent Teacher Association Pupil Teacher Ratio Quality and Cost Based Selection Resettlement Policy Framework

RTI RTTI SBDs SES SIDA SIL SMC SOE SSS SST TA TOR TTL TVET UN UNESCO UNICEF UNMIL USAID WAEC WB WFP

Research Triangle Institute Rural Teacher Training Institute Standard Bidding Documents Senior Executive Service Swedish International Development Cooperation Agency Sector Investment Loan School management committee Statement of Expenditures Single Source Selection Sector Support Team Technical Assistance Terms of Reference Task Team Leader Technical and Vocational Education and Training United Nations United Nations Educational, Scientific and Cultural Organization United Nations Childrens Fund United Nations Mission in Liberia United States Agency for International Development West Africa Examination Council World Bank World Food Program

Vice President: Country Director: Country Manager Sector Manager: Task Team Leader:

Obiageli Ezekwesili Ishac Diwan Ohene Nyanin Christopher Thomas Nathalie Lahire

LIBERIA Fast Track Initiative Grant for Basic Education CONTENTS

Page I. A. B. C. STRATEGIC CONTEXT AND RATIONALE .......................................................... 1 Country background and sector issues ........................................................................ 1 Rationale for Catalytic Fund involvement................................................................. 11 Higher level objectives to which the project contributes ........................................... 13

II. CATALYTIC FUND DESCRIPTION ...................................................................... 13 A. B. C. D. E. F. III. A. B. C. D. E. F. IV. A. B. C. D. E. F. G. Grant instrument ...................................................................................................... 13 Program objective and phases................................................................................... 14 Project development objective and key indicators..................................................... 14 Catalytic Fund components ...................................................................................... 15 Lessons learned and reflected in the project design................................................... 21 Alternatives considered and reasons for rejection ..................................................... 22 IMPLEMENTATION............................................................................................ 23 Partnership arrangements ......................................................................................... 23 Institutional and implementation arrangements......................................................... 23 Monitoring and evaluation of outcomes/results......................................................... 25 Sustainability ........................................................................................................... 25 Critical risks and mitigation measures proposed ....................................................... 26 Grant conditions and covenants ................................................................................ 30 APPRAISAL SUMMARY ..................................................................................... 31 Economic and financial analyses .............................................................................. 31 Technical ................................................................................................................. 32 Fiduciary.................................................................................................................. 32 Social ....................................................................................................................... 34 Environment............................................................................................................. 35 Safeguard policies .................................................................................................... 35 Policy Exceptions and Readiness.............................................................................. 35

Annex 1: Country and Sector or Program Background .................................................. 36

Annex 2: Major Related Projects Financed by the Bank and/or Agencies...................... 52 Annex 3: Results Framework and Monitoring ................................................................. 54 Annex 4: Detailed Project Description.............................................................................. 65 Annex 5: Project costs and proposed financing................................................................ 73 Annex 6: Institutional Arrangements ............................................................................... 74 Annex 7: Financial management and disbursement arrangements................................. 81 Annex 8: Procurement Arrangements .............................................................................. 96 Annex 9: Economic and Financial Analysis.................................................................... 107 Annex 10: Safeguard policy issues .................................................................................. 121 Annex 11: Project Preparation and Supervision ............................................................ 124 Annex 12: Sector Policy Letter........................................................................................ 127 Annex 13: Documents in the Project File........................................................................ 139 Annex 14: Statement of Loans and Credits .................................................................... 140 IBRD Map No. 33435R2

LIBERIA FAST TRACK INITIATIVE GRANT FOR BASIC EDUCATION PROJECT APPRAISAL DOCUMENT AFRICA AFTED Date: September 1, 2010 Country Director: Ishac Diwan Sector Manager/Acting Director: Christopher J. Thomas/Tawhid Nawaz Team Leader: Nathalie Lahire Sectors: Primary education (40%);Secondary education (40%);Public administrationEducation (10%);Pre-primary education (10%) Themes: Education for all (80%);Gender (10%);Decentralization (10%) Project ID: P117662 Environmental category: Partial Assessment Lending Instrument: Specific Investment Loan Joint IFC: Joint Level: Project Financing Data [ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other: For Grants: Total Operation Cost (US$m.): 40.00 Financing Plan (US$m) Source Local Borrower 0.00 Education for All - Fast Track Initiative 15.00 Total: 15.00

Foreign 0.00 25.00 25.00

Total 0.00 40.00 40.00

Amount of financing to be provided by Source Trust Fund Program SPF Borrower/Recipient External Funds, not Bank Managed Financing Gap Total Project Cost Borrower: Republic of Liberia Liberia Responsible Agency: Ministry of Education Liberia i Amount (US$m) 40.00 0.00 0.00 0.00 0.00 40.00

Estimated disbursements (Bank FY/US$m) FY 11 12 13 Annual 8.00 18.00 14.00 Cumulative 8.00 26.00 40.00 Project implementation period: Start: September 3, 2010 End: June 30, 2013 Expected effectiveness date: December 3, 2010 Expected closing date: June 30, 2013 Does the project depart from the CAS in content or other significant respects? [ ]Yes [X] No Ref. PAD I.B. Does the project require any exceptions from Bank policies? [ ]Yes [X] No Ref. PAD IV.G. Have these been approved by Bank management? [ ]Yes [ ] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated substantial or high? [X]Yes [ ] No Ref. PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [X]Yes [ ] No Ref. PAD IV.G. Project development objective Ref. PAD II.C., Technical Annex 3 The CFs development objective is increase access to basic education, with a particular focus on poor areas, to improve conditions of teaching and learning, and to improve school management and accountability. Project description [one-sentence summary of each component] Ref. PAD II.D., Technical Annex 4 Component 1: Increasing access and equity in rural areas (US$15.5 million). This component will support the construction of classrooms, taking into consideration the special circumstances of remote and hard-to-reach areas, by using two different approaches. The first approach will be a delegated management approach whereby a competent firm will be hired for the management and supervision of the construction program (24 primary schools and 20 junior high schools), while the second approach will be a community driven development (CDD) approach for the construction of about 16 primary schools in hard-to-reach areas where it is difficult to find contractors.

Component 2: Improving the quality of teaching and learning (US$14 million). This component would include: (a) provision of learning materials to both students and teachers; (b) provision of grants to schools after a rigorous strengthening of the existing system, (c) support for ECD models with a focus on community-based ECD provision in rural areas and systems development; and (d) school health, including de-worming of children in eight counties. Component 3: Strengthening management capacities and developing a framework for institutional capacity building with a focus on monitoring and evaluation (US$10.5 million). Under this component, the CF support will strengthen the MOE structures at central and school ii

levels. Activities under this component will include (a) the establishment of a Project Support Team (PST) to assist with the day-to-day management of the CF project; the PST will include a project coordinator and financial management and procurement specialists; (b) capacity building for the Departments of Planning, Administration, and Instruction; (c) training of DEOs and school directors for monitoring and tracking school level data in close collaboration with EUfunded project, as well as training of DEOs and teachers on the use of learning assessment instruments; (d) TA for the design of a national assessment instrument; and (e) TA to strengthen personnel and payroll management. Which safeguard policies are triggered, if any? Ref. PAD IV.F., Technical Annex 10 The CF has triggered OP 4.01 Environmental Assessment and OP 4.12 Involuntary Resettlement due to potential negative environmental and social impacts related to the construction of schools. Significant, non-standard conditions, if any, for: Ref. PAD III.F. Board presentation: NONE Grant effectiveness: (a) The execution and delivery of the Grant Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action; (b) The MOU has been entered into between the MOF and the MOE laying out their working relationship and the respective responsibilities in accordance with Section I.B.2 of Schedule 2 to the Grant Agreement; (c) The PIM has been adopted by the Recipient satisfactory to the World Bank; and (d) A Project coordinator and two procurement specialists have been recruited to the PST pursuant to terms of reference and qualifications acceptable to the World Bank and in accordance with Section III of Schedule 2 to the Grant Agreement. Covenants applicable to project implementation: (a) No later than six months after the Effective Date, the Recipient shall recruit and employ an external auditor for the Project, with terms of reference and qualification satisfactory to the World Bank, in accordance with the provisions of Section III of Schedule 2 of the Grant Agreement to perform the audits required under Section II.B of Schedule 2 to the Grant Agreement. (b) No later than two months after the Effective Date, the Recipient shall recruit and employ two financial management specialists for the PST with qualifications satisfactory to the World Bank. (c) No later than twelve months after the Effective Date, the Recipient shall develop templates in form satisfactory to the World Bank for the capture of expenditure information from the Selected Primary and Junior Secondary Schools. iii

Other conditions: No withdrawal shall be made under Category (2) for School Subgrants for Part 2.b.2 of the Project, until the following conditions are met, in a manner satisfactory to the World Bank: (i) development by the MOE with technical assistance financed under the Project of the School Subgrant Guidelines; (ii) verification that at least 400 of the Selected Primary and Junior Secondary Schools have met the eligibility criteria to receive Subgrants. Retroactive financing: Withdrawals up to an aggregate amount not to exceed US$400,000 may be made for payments made on or after July 21, 2010 to cover eligible expenditures relating to the recruitment of contractual staff.

iv

I.

STRATEGIC CONTEXT AND RATIONALE

A. Country background and sector issues 1. Liberia is a poor post-conflict country of 38,350 square miles located in West Africa. It is the oldest independent state in sub-Saharan Africa. According to the 2008 population census, Liberia has a population of approximately 3,476,608 million people, 53 percent of whom are below 20 years of age. The United Nations (UN) Population Division reports that Liberia has one of the fastest growing populations in the world. For the period 1995 to 2025, the UN estimates project an annual population growth rate of 3.8 percent. Seventy-five percent of the population is living on less than US$1 a day and almost 90 percent of the population is considered to be food insecure (Poverty Reduction Strategy, 2008). The average life expectancy is 45.3 years. The human development situation in Liberia is improving, although, in terms of Human Development Index (HDI), it is still ranked below the average of other sub-Saharan African countries. 2. Liberia has a significant advantage in natural resource-based products. The country enjoys an abundance of rainfall, a long coastline and ample land for its small population. The countrys forests are the most extensive remaining in West Africa. Timber was the most important valuable export after iron ore before the conflict and is expected to return to prominence in 2011, now that a satisfactory regulatory framework has been put in place. Agricultural activities account for the largest share of Liberias gross domestic product (GDP) about 42 percent. Food crops include rice and cassava. Fishing stocks are largely intact and increasingly protected. Liberia is the second largest exporter of rubber in sub-Saharan Africa and has the largest rubber plantation in the world. Mineral resources include iron ore with exports expected to return to their pre-conflict prominence in 2011 as well as gold, diamonds and other as yet unexploited minerals. Outside of agriculture, the service sector contributes most to the economy. Manufacturing is relatively small, accounting for about 12 percent of GDP. 3. Liberia has made substantial political, economic and social progress since the end of the 14-year-long civil war in 2003. As a result of the conflict, the provision of basic services came to a halt due to the large-scale destruction of infrastructure, halt in provision of basic supplies, and flight of the human capital serving these sectors. Two rounds of free and fair elections in 2005 led to the installation of a new government in January 2006. Since the security situation has steadily improved, large international mining companies are returning, infrastructure is being rebuilt, public services are being restored, many skilled and educated members from the Diaspora are returning, and enrollment in all levels of education is increasing rapidly. 4. The economy has posted a strong recovery and the authorities have made significant progress with macroeconomic stabilization and fiscal management reforms. The post-war recovery continued in 2008 and, despite a difficult international environment, economic performance remained broadly satisfactory and macroeconomic stability was maintained. The GDP growth rate has been at an average of seven percent over the last five years. This economic growth has been spurred by agriculture (mainly rubber), retail trade, communications, transport and the construction sub-sectors.

5. Based on the International Labour Organization (ILO) standard which includes selfemployed workers, Liberias unemployment rate is estimated at 5.7 percent of the labor force contrary to the unsubstantiated 75 and 80 percent that have been quoted, which are most likely based on a strict interpretation of formal employment that does not include the self-employed. Labor participation rates are lower for youth and women than for men and are generally higher in the rural areas where more people are involved in subsistence farming. 6. However, the progress gained so far is still precarious. Liberia was significantly affected by the increase in world food and fuel prices in the first half of 2008, a reflection of the fact that the country imports the majority of its food, especially rice. Year-on-year inflation peaked at almost 27 percent in August 2008, and is estimated at 17.5 percent for the year. To mitigate against this price increase, the World Bank has provided support to Liberia through the Emergency Food Crisis Response Program. The governments macroeconomic framework projects GDP growth to average 7.5 percent per annum for the 2009-2011 period, down from the average of 14.3 percent per annum projected prior to the global economic slowdown. 7. From the response to the labor questions in the Demographic and Health Survey (DHS) conducted in 2007, it appears that 33 percent of the population had no education, 31.8 percent had primary education, 31.2 percent secondary education and 4.1 percent had higher education. As the table below shows, people with no education or incomplete primary education are overproportionately employed in the agriculture sector. For those who have completed primary school, agriculture is less likely to be a source of income, while the importance of the formal non-agriculture sector grows, albeit very slightly due to the small formal sector presently existent. For those with higher educational attainment, the likelihood of obtaining work in the professional, technical, or managerial sector increases.
Table 1: Percentage Distribution of Main Occupation by Educational Attainment
No Incomplete Complete Incomplete Complete primary education primary secondary secondary Unemployed Prof., Tech., Managerial Clerical Sales Agric-self employed Agric-employee Household & domestic Services Skilled manual Unskilled manual Other Total 5.5 3.6 0.0 29.3 47.3 41.7 22.4 18.4 26.2 12.7 2.0 33.0 34.0 1.3 1.5 22.5 30.2 33.5 37.8 14.7 17.9 31.9 10.8 26.0 8.1 1.0 2.0 7.4 5.1 5.6 0.5 4.6 6.3 10.2 0.5 5.8 39.7 13.7 13.0 25.0 14.8 16.8 26.4 25.8 34.2 36.4 27.6 21.6 8.5 43.4 54.6 12.1 2.4 2.3 8.5 29.8 12.3 6.3 39.8 9.6 Higher 4.2 37.0 28.9 3.8 0.3 0.2 4.4 6.8 3.1 2.5 19.4 4.1 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: Authors calculations using the Liberia DHS, 2007

8. The agricultural sector is the largest employer, engaging almost 50 percent of the working population, followed by the services sector, including retail and wholesale trade. Industry provides few jobs. The low level of educational attainment in the country reduces productivity and limits earnings potential. The economy will need to grow at a fast rate to absorb the backlog of unemployed and new entrants. Ensuring attainment of a quality basic education, backstopped by functional literacy and numeracy for adults and those out of school, are high priorities in order to ensure a platform for trainability in an evolving economy. 9. The education sector was negatively affected by the turmoil of the last decades but is slowly recovering. Since 2007, the following progress has been made through the implementation of the Liberia Primary Education Recovery Program (LPERP) which was meant to move the primary sector from emergency status to recovery status. Overall, 198 schools were built and 58 renovated and 75,820 students enrolled in the Accelerated Learning Program (ALP) (a program for children above the official primary school age that compresses the primary education program into three years rather than the standard six-year program). The ALP is operational in all 15 counties. Also, 82,638 students were provided with furniture and 1.2 million textbooks were procured and are being distributed to the schools in the 2009/2010 school year. This distribution will bring the student textbook ratio to 2:1. Lastly, 324 in-service teachers received their C certificates for teaching at the primary school level and 400 trainees in the pre-service program successfully passed their final examination. 10. With World Bank and Research Triangle (RTI)/USAID support, the government has assessed reading levels in grades 2-3 in 180 schools. A school census report that includes detailed information about all of the schools in Liberia for school year 2007/08 has been completed; the school census represents the main data reference for the education sector. An Education Management Information System (EMIS) exists and incorporates the data from the three rounds of school censuses (2005-2008). The data from 2009 is currently being entered and cleaned. With UNICEF support, the Ministry of Education (MOE) is engaging in a school mapping exercise which is central to the planning of educational provision at the local level. This dimension of educational planning can contribute to reducing inequities in the provision of education services between different regions and localities within Liberia. Over the past two years, the MOE has been preparing a ten-year Education 11. Sector Plan (ESP) based on an exhaustive Country Status Report (CSR) and consultation process that included all education stakeholders. The extensive consultative process has allowed for the building of a consensus around the main sector issues and strategies between the government and donor partners. The ESP expands and builds upon the Poverty Reduction Strategy Paper (PRSP) and LPERP. The sector plan outlines the short-, medium-, and long-term government strategies for addressing the challenges facing the education sector and is accompanied by a three-year implementation plan. 12. During the last two years, the Education Program Development Fund (EPDF), administered by the World Bank, has been supporting the education sector in Liberia by providing technical assistance for capacity building in the MOE. The table below outlines the support provided.

Table 2: Support Provided under Education Program Development Fund Teacher assessment report completed based on school census data from 06/07 and updated based on 07/08 data.

Early Grade Reading Assessment (EGRA): EGRA training received; Development of assessment tools; EGRA pilot tested in 45 schools; and Workshop held in Liberia to design teacher training intervention as part of the ongoing impact evaluation of teacher training and EGRA. Education Public Expenditure Review completed. Technical Assistance for infrastructure expansion strategy: List of 40 schools identified for construction under the pooled fund; Primary school design reviewed and revised; Support to the Ministry of Education Division of Educational Facilities; Questionnaire instrument to survey schools selected for next years program; and Short-term strategy completed. Assistance with Procurement: Procurement assistant recruited to assist with day-to-day LPERP implementation including development of a procurement plan for the pooled fund and follow-up on its implementation. Assistance with Financial Management: Two national assistant project accountants recruited to assist with day-to-day business of LPERP program including pooled fund. Donor coordinator recruited to assist with education development partners meetings and coordinate donor support (position closed under EPDF in 2008 and position is now being supported by UNICEF for 2009/10). Focal persons for two departments for FY09 and FY10 to assist with day-to-day management of program implementation; (Planning): L-PERP coordinator; (Instruction): Resource person for the Deputy Minister for Instruction on all LPERP related issues; World Bank Institute (WBI) e-learning course on economics of education for four MOE staff. Participation in WBI course on post-basic education; action plan for post-basic education developed. Support for extensive regional consultations of the Education Sector Plan. Assistance with Early Childhood Development (ECD): One regional early childhood specialist provided support to the MOE on the early childhood and pre-primary chapter of the ESP and guidance in the development of a national ECD policy.

13. As noted above, a CSR and an ESP have both been prepared with the former providing the necessary detailed diagnostic of the education sector and the latter laying out fully costed policy directions. A Public Expenditure Management and Financial Accountability Review (PEMFAR) was completed in 2008 and includes a chapter dedicated to the review of public expenditures on education. A series of concrete recommendations, listed in the table below, were laid out for the education sector, including a gradual increase in the share of education expenditures.
Table 3: PEMFAR Recommended Actions for the Education Sector

Education
Education expenditure constituted 13.6 percent of total expenditure in 2007/08. Proportion of expenditure on primary and secondary education is low. Donor financing constitutes 49 percent of total education expenditure, and is primarily executed in parallel to the government. Large inequalities in teacher distributionfor example, the pupilteacher ratio is 30 in Montserrado, and 105 in Lofa county. School management often lacks the small cash resources required to ensure smooth operations. Enrollment in private or faith-based schools is high. Educational access could be expanded through improved public-private partnerships and cost recovery systems. Many vocational training programs do not target the demands from the labor market.

Actions
Gradually increase education expenditure as a proportion of total expenditure, toward Education for All Fast Track Initiative Benchmark. Increase proportion of education budget dedicated to primary and secondary education.

Key entity responsible

Government of Liberia

Ministry of Education (MOE)

Develop a monitoring system to track donor expenditure within the education sector and monitor activities.

MOE

Design and provide an incentive package for teachers in remote rural areas.

MOE

Pilot a system of direct transfers to schools to support operations and maintenance costs.

MOE

Develop a policy to govern public-private partnerships within the education sector.

MOE

Strengthen the quality and relevance of vocational training programs through better alignment with labor-market demands.

MOE

14. The proposed Catalytic Fund (CF) grant addresses several of these recommended actions as will be detailed below. In addition, knowledge and lessons are being drawn from the implementation of ongoing World Bank projects. For example, the current Community Empowerment Project (US$5 million) supports the rebuilding of community cohesion and social capital in addition to much-needed community infrastructure (including building/rehabilitation of classrooms). From this project, we have learned lessons about enlisting community support for school construction. Also, The Food Price Crisis Response Trust Fund (US$4 million) includes the funding of school meals for 62,000 pre-school and primary school children from vulnerable households in three targeted districts. This project contributed to an improved design and management of school feeding projects. Main sector issues 15. With the majority of its population under twenty years of age and large-scale youth unemployment, the government has been giving increased attention to education and training, especially now that the focus has shifted from an emergency state to one of reconstruction. During the emergency phase, the emphasis was on providing shorter-term education programs in order to sustain the system until the conflict ended and reconstruction efforts could begin. Now that these reconstruction efforts have begun, the government has to try and shift to a longer-term approach characterized by the need to formulate long-term, strategic sector plans that have at their core the reconstitution of entire systems to provide basic services while at the same time trying to roll out the services that these systems were meant to provide. Thus the core issue of the education sector in Liberia is to undertake institutional reform of the sector while at the same time providing a reasonable quality of education to its citizens. As noted above, the ESP outlines the main policies and strategies for addressing this core issue. 16. The following table shows basic indicators for the pre-primary and primary levels for the year 2007-2008:
Table 4: Selected Baseline Statistics Level and Parameters Pre-Primary Gross Enrollment Ratio (GER) % of pupils Government of Liberia (GOL) and Community Schools Number of pupils enrolled in GOL and Community Schools Number of pupils enrolled in other institutions Subsidy for others as % of GOL unit cost Total recurrent spending on preschool (in millions of LDs) Primary Grade 1 Gross Intake Rate (GIR) Grade 1 Gross Intake Rate (GIR) Boys Grade 1 Gross Intake Rate (GIR) Girls Grade 6 (Proxy Completion rate) Grade 6 (Proxy Completion rate) Boys Grade 6 (Proxy Completion rate) Girls Share of repeaters Base Year - 2007/08 141% 76% 374,946 116,618 2% 311 113% 117% 109% 62% 67% 57% 7%

Total enrolment Total enrollment Boys Total enrollment Girls Girls Enrolled/Boys Enrolled as a percentage Gross Enrollment Ratio (GER) Net Enrollment Rate (NER) % of pupils in private and mission schools Enrollment in private and mission institutions Pupil teacher ratio (public and community + ALP) Total number of primary teachers Average Teacher remuneration as multiple of GDP per capita Spending on inputs other than teachers as % of total recurrent spending Total recurrent spending (millions of LDs) Junior Secondary Gross Enrollment Ratio (GER) % of pupils Government of Liberia (GOL) and Community Schools Number of pupils enrolled in GOL and Community Schools Number of pupils enrolled in other institutions Grade 9 Proxy Completion Rate Total recurrent spending on preschool (in millions of LDs)

539,887 286,584 253,303 88% 94% 35% 30% 161,132 48.7 9,338 2.2 54% 414 42% 47% 48,335 54,307 35% 122

17. On the whole, Liberia faces similar problems to those sub-Saharan African countries that have utilized a big bang approach to abolishing primary school fees. The government has demonstrated its commitment to increasing access and providing basic education for all its citizens by abolishing school fees in public primary schools. Additionally, many damaged and destroyed educational institutions have been rebuilt and are operating again. Together with the government-led school feeding program, these actions have significantly improved enrollment, attendance and retention, especially for girls and children of the poor and disadvantaged (PRSP, 2008, pp.7, 102-103). However, the increased enrollment has not been accompanied by any substantial increase in resource flows, thus creating increased pressure on an education system already facing enormous challenges. These challenges are detailed below. There is a shortage of qualified and trained teachers 18. Recent EMIS data indicate that only one-third of primary school teachers and about 60% of junior secondary school teachers in public schools have been trained. A further 9 percent of primary school teachers have received some training as part of the ALP. This leaves over 55 percent of primary school teachers and two-fifths of junior secondary teachers in public schools without formal teacher training. The figures are slightly better in mission and private schools. The majority of primary school teachers have completed their high school education, but a significant 7.6 percent have not even reached the end of high school. There are large numbers of volunteer teachers who were mainly taken on by local communities during the conflict period in order to keep the education system functional when many teachers fled. These volunteers are normally supported by the community, either in cash or with in-kind payments. In some counties, the County Education Officers (CEOs) or District Education Officers (DEOs) are involved in the selection of these volunteer teachers. Human Resources (HR) data on volunteer

teachers in 2007 recorded 2,028 volunteer teachers, of whom, over 70 percent are unqualified. However, 24 percent of the volunteer teachers have either a C or B certificate necessary for teaching at primary and secondary school levels respectively. 19. From 2006-2010, teacher training has been mainly supported by the Liberia Teacher Training Program funded by USAID. The program strengthens the governments ability to deliver education services by, amongst other activities, supporting the MOE to develop a strategy to improve the teacher education system and training primary school teachers through preservice and in-service training in six of the fifteen counties. A second phase of the program, which will extend and expand the existing teacher training activities, has already been designed and is planned to begin in 2010. While USAID will continue to provide pre-service and inservice teacher training in six counties, the European Union will also begin in-service teacher training in the six counties where USAID is not working. Therefore, starting in 2010, in-service teacher training will take place in all counties. Poor payroll management, teacher management and deployment 20. Teacher and personnel management, including cleaning of the payroll, are big challenges for the education system. As per the latest payroll information from January 2008, Liberias civil service employed about 35,000 persons or approximately 1 percent of the population. Of this number, about 13,000 civil servants are employed in the MOE as compared to 2,596 in the Ministry of Health & Social Welfare (MOHSW). The education and health sectors face many similar problems, in fact, these problems can be found throughout the civil service. Two major challenges are to eliminate the large number of ghost workers and to strengthen the technical capacity of the civil service, challenges that are being addressed via numerous civil service reforms. Achievements to date with regard to civil service reform relate to clearing some salary arrears to public servants and implementing three modest increases in basic pay (though salaries remain very low and highly compressed). A number of ghost workers have been eliminated from the civil service payroll, which is now down from 42,000 to 35,000. 21. Another major constraint is the weak capacity at all levels of the civil service, but particularly at the middle management level. The Senior Executive Service (SES) is a program initiated to attract a high caliber of qualified Liberians from in the Diaspora back to the country to serve in the public sector. The individuals selected for the SES were given special benefits and better remuneration to give them the necessary incentives to assist government in implementing difficult reform measures. The results so far have been mixed and varied in the different ministries. 22. The education sector, like other government sectors, also faces the significant problem of managing deployment to its facilities throughout the country. Teacher allocation among schools, as expressed by the relationship between teacher numbers and student enrollment, shows that there is no direct correlation between the numbers. The government continues to face challenges in getting teachers to move out to and remain in rural areas where fewer amenities exist. Similar problems exist with regard to health sector personnel and this problem cannot therefore be looked at in isolation, especially considering the fact that civil service reforms, once implemented, will cut across the board.

Low education quality including serious problems in early grade reading levels 23. For every 100 children starting primary school in grade 1, only 60 make it to grade 6 and repetition rates at all grades are above five percent. The student flow efficiency value1 for Liberia was just 35 percent in 2007. Even though these numbers are improvements on earlier years, they suggest that the system is inefficient and wasteful of scarce resources. Further, even if access could be provided for all primary school age children, if many of them fail to complete Grade 6, universal primary completion would not be achieved by 2015. Early grade reading results from the Early Grade Reading Assessment (EGRA) show that the average score is rather low: 16.7/50 for all the students, 13.7/50 at Grade 2 and 20.0/50 at grade 3. 24. In Liberia, a standardized measure for learning achievement, other than the grade 6 examination of the West African Examination Council (WAEC), does not exist. The WAEC exam is used as a way of filtering out those students who cannot continue to secondary education because of the lack of available places and it cannot be described as a reliable and valid measure of student achievement. The EGRA has been piloted in the early grades but there is a need to develop a localized criterion-referenced assessment which would assess both math and reading proficiency. Liberias current primary education system is characterized by a large above the primary school age student population. 25. After the long civil war, gross enrollment rates (GER) increased at all levels up to senior high. The GER values are particularly high for the pre-primary and primary levels. The two main reasons for the high values are the increasing demand for education and the fact that many who may have started school at the official age have had to resume again after a long absence or start school at an advanced age because of the conflict. 26. The problem of older students is compounded by the fact that new entrants into the first grade are tested and if they do not pass must remain out of school until they can pass the assessment test. The government strategy is to abolish these entrance examinations both in policy and in practice. The increase of new entrants into primary school that will result from this abolishment will put an additional burden on the primary school system for the short-to-mediumterm. However, the transition of older children into the primary school classes will also provide an opportunity to improve the quality of pedagogy for pre-school aged children in the preprimary classes as class sizes will be reduced and there will no longer be great disparities in age between classmates. 27. The ALP was specifically designed for older students. It is currently offered in all counties and supported by a number of different partners. However, it is intended as a temporary
1

SFE: Primary Completion Rate Access Rate to first grade of Junior High) + (Junior High Completion Rate Access rate to first grade of Senior High)

program, offering the primary school curriculum in a three-year period to older students. In the coming years, this program will complement other non-formal education programs that will focus more on vocational training and skills development. Schooling disparity issues are impeding equitable access to education 28. Similar to much of the infrastructure throughout the country, education infrastructure was negatively impacted by the civil conflict31 percent of public and 24 percent of community schools (community schools are schools constructed by communities and which are supposed to be eventually absorbed into the government school system) were destroyed and 16 percent of public and community schools were extensively damaged. Although the LPERP has addressed some of the infrastructure needs at the primary level, the need is still significant. Therefore, many parts of the country, especially rural areas, lack a school building or have a school building that is not fit for the purpose. 29. Access to educational opportunities, survival, completion and transition to next level are all influenced by gender, wealth of parents, and geographical location of the individual. Gender disparities exist and increase with the level of education. As the 2007 DHS for Liberia notes, 56 percent of females and 39 percent of males have never attended any school. According to the 2007 Core Welfare Indicators Questionnaire (CWIQ), 60 percent of 6-11 year old boys are out of school compared to 63 percent of girls of the same age. Disparities due to wealth of parents and geographical location (urban versus rural) are even more prevalent and impact negatively on an individual childs ability to access educational opportunities. 30. The completion rates are low for every level of schooling and for both sexes. With fewer students attaining successive levels, the completion rates become smaller with movement up the schooling ladder. The very large difference between the completion rate for the primary level and that for the junior high school level is an indication of a systemic problem that requires attention. Achievement of the EFA and Millennium Development Goals (MDGs) of 100 percent primary completion by 2015 will be a big, if not impossible, challenge, even though the present primary completion rate of 62 percent is much higher than the estimate of 21 percent in 2000. Household contributions are substantial 31. Despite the fact that the government has nominally declared primary education free, households still spend significant amounts of resources on education relative to their earnings. In fact, private household expenditure on primary and secondary education is much greater than government expenditure. Even with free primary education, many parents still have to pay for uniforms, textbooks, copy books/stationary, etc. And for those parents who can afford it, their preference is to send their children to private institutions where the quality of education received is perceived to be much higher. For example, the 2007 CWIQ total private expenditure was estimated at US$27 million while the total public expenditure was US$12.2 million in 2007. 32. The increase in enrollment in public schools has not been matched either by a significant increase in the number of classrooms or an increase in classroom size. This has increased the degree of over-crowding in public primary schools while nearby private and mission schools have spaces available which are not utilized. In order to make up for the loss of tuition income to

schools, the government instituted a direct school grant program that would allow for schools to receive cash to cover some of their costs. The government has had some difficulty however in the past two years in ensuring that the allocated money (a) reaches the schools and (b) if the money does reach the school, that it does so in a timely manner. As a result of these difficulties, schools are often forced to turn to the parents for funds to keep the schools operational, including teachers salaries. In addition, the government did not establish any clear guidelines on how the school grant should be spent thus making it difficult to hold school authorities responsible for the grant. 33. At the secondary level, students in public junior high schools pay approximately US$8.50 per year excluding examination and transcript fees which total less than US$2, while students at the senior high school level pay approximately US$11 per year, excluding examination, transcript and computer class fees which total approximately US$3. Private and faith-based secondary schools typically charge much higher fees, with many in the $120-$150 per year range, which is quite a substantial amount in a country where the GDP per capita, in purchasing power parity terms, is about US$150. Lack of capacity in monitoring and supervision 34. As in most other sectors, management and control of the education sector is highly centralized. Although decentralized in theory, in practice, there is not a clear understanding of the roles and responsibilities of the CEOs and DEOs on the part of the ministry or the officers themselves. The CEOs and DEOs carry out very little supervision of and reporting on school performance due to a lack of resources, experience in providing pedagogical support, and direction from the center in what their roles and responsibilities are in both supervision and reporting. In turn, ministry officials at the center also pay scant attention to providing supervision in the field due mainly to a lack of resources. 35. Significant assistance (i.e. training, provision of computers, as well as a long-term technical assistance (TA) has been provided by other partners (UNICEF, USAID, UNESCO, and European Union (EU)) to improve the EMIS and to ensure the provision of timely and good quality data. At present, however, the data are not being used for monitoring and evaluation purposes at county or even school levels due to a lack of understanding of the uses to which these data can be put and to a lack of capacity within the ministry. B. Rationale for Catalytic Fund involvement 36. There are several reasons why the Education for All Fast Track Initiative (EFA FTI) CF should support the education sector in Liberia. These are detailed below. 37. Institutional knowledge. Even without considering the large-scale damage to school infrastructure, human resource depletion and a generation of children who have had little access to education which have all resulted from the civil conflict, Liberia also faces similar challenges to those faced by the education sectors in most other Sub-Saharan African countries. The most significant being: increased pressure on primary institutions created by both an extremely young population and the abolition of school fees. The challenges faced by the education sector are therefore monumental and, given the limited number of donors currently active in the sector,

there are serious concerns about the ability of the sector to contribute to post-conflict reconstruction. Because of its significant institutional knowledge about rebuilding education systems in post-conflict countries, the World Bank, in its role as supervising entity, would be able to provide the global experience and examples of best practice that are necessary to learn from if Liberia is to use its limited resources efficiently and effectively. Support provided over the past two years through the EPDF has borne fruit. The 38. EPDF trust fund resources have allowed the MOE to develop a strategic overview of the sector and an ability to identify the gaps where action is necessary in order to catalyze the sector including areas where donors have not been forthcoming to address these gaps. Over the past few years, the MOE has been preparing a ten-year ESP based on an exhaustive CSR and nation-wide consultation process that included all education stakeholders. The extensive consultative process has allowed for the building of a consensus around the main sector issues and strategies between the government and donor partners. The ESP expands and builds upon the PRSP and LPERP. The sector plan outlines the short-, medium-, and long-term government strategies for addressing the challenges facing the education sector and is accompanied by a three-year implementation plan. 39. Donor orphan status. Liberia attempted an application to the Catalytic Fund Committee in May 2007. It was welcomed into the EFA FTI partnership but did not qualify for the CF since it did not have a sector wide plan or a full PRSP. The government was however able to secure a limited amount of funds to cover some of the immediate funding gaps not met by the EFA FTI CF: US$12 million from UNICEF, through a grant from the government of the Netherlands, which was pooled with US$4.25 million from the Soros Foundations/OSI Network. However, due to the limited amount of funds available only for primary education, the whole education sector could not undertake at that time the larger-scale reforms that were necessary to truly catalyze the sector. 40. The key donors/partners active in the sector include: EU, UNESCO, UNICEF (current coordination agency), USAID, World Bank, WFP, and Soros Foundation/OSI. Despite the number of donors highlighted above, Liberia can be considered a donor orphan. Over the past year the overall donor spending for the sector was about US$35 million (US$12 million under USAID for teacher training, EGRA, girls scholarships, and short- and long-term training programs to improve management and technical skills of mid-level professionals; US$10 million for school feeding under WFP; and about US$12 million under the pooled fund). 41. With total program costs of US$225.6 million for basic education, government commitment of US$96 million and donor commitment of US$80 million, the remaining financing gap would be around US$50 million. The EFA FTI CF request in the amount of US$40 million would cover parts of that gap. New donors (SIDA, bilateral donors) are currently discussing new commitments to the sector with the government, which would likely cover the remaining US$10 million. 42. The EFA FTI CF would provide support to basic education that would enable the government to fill gaps where other donors are not able to respond and enable the government to begin some of the reforms laid out in the ESP to begin to revitalize the education sector. Once these reforms are catalyzed and a greater degree of accountability is introduced into the sector, it

is hoped that more donors would respond to the countrys needs during this period of reconstruction. 43. Government commitment to education sector. Over the past two years, the MOE has demonstrated that it has absorption and implementation capacity, although significant challenges remain. In June 2009, the government made a formal request to the donors to support its ten-year ESP and intent to re-apply to the EFA FTI CF. Since its first application, the government has developed an ESP which has been presented to the Liberian people for their input and endorsement during extensive regional and national consultations throughout November 2009. This shows clearly that the government is serious about building ownership of the plan starting from the grassroots levels. In October 2009, the Bank was formally selected as the supervising entity of the CF.

44. The governments key policies, priorities, target indicators and financing requirements to be met over a period of ten years are laid out in an Education Sector Policy Letter (Annex 12). The letter has been signed and endorsed by both the Ministers of Finance and Education. The Government of Liberia is committed to increasing its allocation to education (recurrent education budget excluding debt service) from 14 percent in 2010 to 16 percent in 2012 and reaching eighteen percent in 2015. The priority of the government is basic education (first to the ninth grade) but as a first step every effort will be made to get near to universal completion of primary schooling by 2015. The share of the governments budget allocated to primary education is projected to rise from 39.2 percent in 2008 to 41 percent in 2010, 43 percent in 2012 and reach 45 percent in 2015. C. Higher level objectives to which the project contributes 45. The objectives of the three-year project proposed for funding under the EFA FTI CF are in line with the Joint Assistance Strategy (IDA and AfDB), presented to the Board in 2009, and with Liberias PRSP introduced in March 2008. The Joint Assistance Strategy pursues three strategic themes: (i) rebuilding core state functions and institutions; (ii) rehabilitating infrastructure to jump-start economic growth; and (iii) facilitating pro-poor growth. The governments first full PRSP (20082011) has four core strategic areas of intervention: peace and security; economic revitalization; governance and rule of law; and infrastructure and basic services including education. In addition, it pursues a number of priority cross-cutting themes, including gender equity, peace-building, environmental issues, HIV and AIDS, children and youth, and monitoring and evaluation. II. CATALYTIC FUND DESCRIPTION

A. Grant instrument 46. With the continued high country risk as identified by both the financial and procurement assessments, the team considers the investment grant to be the best adapted instrument to the fiduciary realities.

B. Program objective and phases 47. The MOE has completed a ten-year ESP (2010-2020) which includes a short-term plan/framework covering 2010/11 to 2012/13. The proposed CF contributes to the ESPs objective of providing quality basic education. It also takes into consideration cross-sectoral issues of early childhood development (ECD), school health and HIV-AIDS. C. Project development objective and key indicators 48. The CF will support the long-term development objective of the Liberian education sector to implement the ESP and to reach quality universal primary education by 2015. 49. The CFs development objective is to increase access to basic education with a particular focus on poor areas, to improve conditions of teaching and learning, and to improve school management and accountability. 50. The following indicators, which are a sub-set of the ESP indicators, are proposed.
Table 5: Indicators for Baseline and Target years
PDO Indicators Basic education completion rate (%)2 Direct project beneficiaries (number) of which female (%) (Core Indicator) Textbook- Student Ratio at basic education level (defined as number of textbooks aligned with new curriculum to students) Teachers having at least one teaching guide (%) Schools managed by a SMC or PTA (%) School grants implemented in accordance with agreed upon procedures (%) Intermediate Outcome Indicators Number of additional classrooms built or rehabilitated at the basic education level resulting from project intervention (number) (Core Indicator)
2

Baseline 2008 49%

Target 2012/2013 56%

470,000

0:0

1:2

0 0 0 Baseline 2008

80% 60% 60% Target 2012/2013

108

The "basic education completion rate is arrived at by averaging the primary and secondary completion rates.

Cost-effective Early Childhood Development model designed and piloted (yes/no) Children benefiting from deworming interventions (number) Unified HR database (Civil Service Agency, MOE, MOF) developed and maintained (yes/no) Development of a pay and grade scale for teachers (yes/no) Availability of annual sector statistics by May of each year (yes/no) System for learning assessment at the primary level (rating scale) (Core Indicator) DEOs using the new assessment instruments (%)

No

Yes

300,000

No

Yes

No

Yes

No

Yes

No 0

Yes 75%

D. Catalytic Fund components 51. The CF program has three components, each of which is discussed in detail in Annex 4.

52. Component 1: Increasing access and equity in rural areas (US$15.5 million). The CF support would finance activities to increase the supply of education. Demand side interventions will not be supported under this grant application in light of the fact that the government and donor partners thought it prudent to wait until the results of a current social cash transfer pilot and a proposed out-of-school children study, both undertaken by UNICEF, are available to begin to design interventions.

53. This component will support the construction and/or rehabilitation of classrooms, administration facilities, latrines and water points in the selected primary and junior secondary schools, taking into consideration the special circumstances of remote and hard-to-reach areas, by using two different approaches. The first approach will be a delegated management approach whereby a competent firm will be hired for the management and supervision of the construction program (up to 24 primary schools and 20 junior high schools), while the second approach will be a community driven development (CDD) approach for the construction of up to 16 primary schools in hard-to-reach areas where it is difficult to find contractors.

54. Under the existing Education Pooled Fund (EPF), the school construction activities were managed by contract management agencies. After a review of the agencies implementation of the construction program, it has become evident that the agencies are not providing adequate supervision of the work. At present, they seem to consider that their role is only to report on

progress at the sites. This seems to be an endemic problem that affects all construction projects in Liberia. There has been very little construction of any type in the country for the last 25 years. Consequently, only a handful of Liberian architects and engineers possess the experience of constructing buildings to an acceptable standard. The few who have the desired experience are unlikely to have the capacity to take on additional construction work. It is proposed therefore that a qualified firm of civil works consultants be contracted to manage and supervise the construction of the proposed EFA FTI CF school-building program in collaboration with local Liberian firms, where possible. (see more details in Annex 6) 55. The Division of Education Facilities (DEF) in the MOE will be in charge of the norms and standards of school construction and the supervision of the construction program in conjunction with the firm to be recruited under the CF. The standardized school designs exist but need some final adjustment to meet the needs of children with disabilities. For the hard-to-reach areas, a CDD approach is proposed. The MOE is currently engaged in a school mapping and micro-planning exercise, with support from UNICEF, which will provide much-needed data for selection of school sites according to demand. During the selection process 16 remote villages with difficult access and only sufficient primary school age children for a three-classroom primary school (i.e. below 132 children aged 6 to 11) will be selected for a pilot program of community-based primary school construction. Part of the selection process will include a discussion with community members in the selected villages of the communities responsibilities with regard to the construction and maintenance of the schools and only those communities who agree to fulfill these responsibilities will be included in the CF. Before the schools are constructed, the MOE will have to ensure the availability of teachers for the school, especially in light of the fact that teacher deployment and retention to rural areas is a problem.

56. Component 2: Improving the conditions of teaching and learning (US$14 million). In light of the fact that teacher training is being sufficiently supported by other donors, the activities under this component will not focus on teacher training but will include other complementary activities that will enhance the conditions of teaching and learning. 57. This component would include: (a) provision of learning materials to both students and teachers (approximately 1,000,000 textbooks for students in grades 5 to 9 of basic education and approximately 20,000 sets of teacher guides); (b) provision of grants to schools [subgrant given to school] after a rigorous review of the existing system; (c) support for ECD models with a focus on community-based ECD provision in rural areas and systems development; and (d) school health, including de-worming of children in eight counties (Bomi, Bong, Gbarpolu, Grand Bassa, Grand Cape Mount, Lofa, Margibi, and Montserrado). 58. Provision of learning materials. The CF will support the supply of textbooks aligned with the revised curriculum for students in basic education (grades 5-9) and a set of teacher guides. The teacher guides will provide teachers with the methodology necessary for using the textbooks in the classroom. A total of 1,000,000 textbooks and 20,000 guides would be purchased.

59. Technical support to improve the implementation of school grants. This project will be used to finance activities that will help the government to improve its current initiative through technical assistance to strengthen the process including the set-up of a school committee at each school. It will support: (i) development of a School Grants Guidelines including allocation criteria, financial management rules, and roles and responsibilities of the stakeholders involved and (ii) provision of school grants to the selected primary and junior secondary school. In the second year of implementation, based on the preparatory work, the project will finance the scaling up of current school grants based on a formula comprising school size and hardship (disadvantaged vs. more well-off schools). UNICEF supported the MOE with the development of a school fee abolition policy which addresses many of these issues including some scenarios for use of the grants as well as the distribution and monitoring of the grants. The policy is currently awaiting adoption and implementation. Schools grants will also be provided to junior high schools using a different formula as junior high school students are still paying fees. This will support the eventual abolishment of fees as the junior secondary level as endorsed by the current education law. 60. Support to early childhood development. Support to early childhood development (ECD) is listed as a key strategy for reducing inefficiencies (late enrollment, grade repetition, early drop out) at the primary level in the ESP. This activity will support the development of an ECD strategy and the strengthening of the system through the design and implementation of a costeffective ECD model for rural areastwo areas listed in the ESP that are feasible short-term activities for the government to implement in cooperation with partners. The CF will support up to 10 community-based ECD centers in upgraded rural markets and low-cost structures in villages through the provision of equipment and play/learning materials, training for locallyrecruited educators, and minor renovations. Sites will be located in rural areas with strong community demand and sufficient numbers of underserved 3-5 year old children. In ten of these sites, the ECD facility will be within the vicinity of the community-built primary school, to ensure the smooth transition of students between ECD and primary school. The CF will also assist other donor partners (OSI/Soros, Plan International, UNESCO, Save the Children) involved in strengthening the ECD system by supporting the development of quality standards and guidelines, child-centered curriculum, and teacher training and certification frameworks. 61. Support to school health. The School Health Unit has been actively implementing a life skills program with support from UNFPA and UNICEF which includes HIV awareness and prevention activities. Also the unit has been de-worming students as part of the total package of activities (the package includes the WFP school meals) that focus on improving the quality of the learner. The CF will finance the development of learning materials (life-skills modules for students in basic education covering a broad range of health issues such as reproductive health, and waterborne diseases), de-worming of 300,000 primary school students in eight counties, and training of teachers (3,000) in life-skills and de-worming. It will also strengthen the capacity of the School Health Unit to be able to undertake these activities on its own initiative. 62. Component 3: Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities. (US$10.5 million). Under this component, the CF support will strengthen the MOE structures at central and school levels. Activities under this component will include (a) the establishment of a Project Support Team (PST) to assist with the day-to-day management of the CF project; the

PST will include a project coordinator and financial management and procurement specialists; (b) capacity building for the Departments of Planning, Administration, and Instruction; (c) school building management and supervision at the central level; (d) training of DEOs and school directors for monitoring and tracking school level data in close collaboration with EUfunded project, as well as training of DEOs and teachers on the use of learning assessment instruments; (e) TA for the design of a national assessment instrument; and (e) TA to strengthen personnel and payroll management. 63. Support to institutional reform with a focus on monitoring and evaluation. The CF support will strengthen the MOE structures both at central and school levels. At the central level, the CF will support (a) the establishment of a Project Support Team (PST) comprising a project coordinator, financial management and procurement specialists to assist with the day-to-day management of the CF project; (b) capacity building for the Departments of Planning, Administration, and Instruction. 64. Under this component, the following assessments will be developed or scaled-up: (a) development of a national assessment test for grades 4 and 7, focusing on math and reading comprehension; (b) development of school level assessment tools; and (c) scaling up of current early grade reading assessment and introduction of early grade math assessment. These three interventions are discussed in greater detail below. 65. At the system level, the CF will provide technical assistance for the development of a national assessment test for grades 4 and 7 that will focus on math and reading comprehension. The MOE will move to abolish the WAEC exam administered in grade 6 and make the current 9th grade WAEC exam promotional. 66. At the school level, the CF will support training and technical assistance for monitoring and evaluation. This will include the development of assessment tools at the school and classroom level as well as the training of DEOs and school directors on monitoring and tracking of school level data, including attendance of teachers and students, parental and community involvement, and instructional time. Also, in conjunction with the strengthening of the governments school grant system in component 2, the CF will support the strengthening of PTAs/SMCs in selected public basic education schools. 67. The CF will also support training of DEOs and teachers on the use of learning assessment instruments as a monitoring tool for early grade reading and math performance. 68. Strengthen personnel and payroll management. USAID has been supporting the MOE in conducting a payroll verification study that will update and systematize employee information. This exercise will also contribute to the MOEs capacity to plan and monitor human and budgetary resources through the creation of an easily-updatable database and identification system. The CF will complement the ongoing TA support provided under the civil service reform project under the World Banks Poverty Reduction and Economic Management Department to reinforce the personnel and payroll management. This includes managing of Integrated Financial Management Information System (IFMIS) by MOE, setting up of a pay and grade scale for teachers according to experience, qualifications, and performance. The CF will also support studies and surveys to evaluate the motivation and conditions of teachers, including

recommendations for how the government can assure regular and timely payment of salaries in remote and hard to reach areas as well as deployment strategies to attract teachers to these areas. 69. The following table outlines which of the various ESP objectives the CF components will address:

Table 6: ESP Objectives and their link to the CF Components

ESP Objectives for Primary, Teacher Matters, Governance and Management, and Monitoring to which the CF will contribute

Project components

Primary Education Specific Objectives Obj. 1: To make the provisions necessary for all children to start at the right age and complete primary level of a minimum stipulated quality Obj. 2: To put in place provisions and structures so that no child is denied primary education because of age, language and circumstances Obj. 3: To put into operation a strategy and framework for greater efficiency and cost effectiveness Obj. 4: To make those provisions and arrangements that result in the school environment being clean, sanitary, violence-free and conducive for all students, especially girls, to feel safe and at ease Obj. 5: To reduce the possibility of staff and students at the primary level contracting/spreading HIV/AIDS Teacher Matters Specific Objectives Obj. 1: To provide adequate training and professional development programs for teachers Obj. 2: Ensure teachers are motivated and supported to carry out their responsibilities Obj. 3: To ensure deployment of teachers to rural and underserved areas Obj. 4: To upgrade the status of the teaching profession Obj. 5: To increase the number of females in the teaching profession Obj. 6: To improve efficiency in teacher management Governance and Management Specific Objectives Obj. 1: To develop the institutional capacity for management at the central, regional, and local levels Obj. 2: To increase planning and management capacity Obj. 3: To increase transparency and accountability throughout the system Obj. 4: To strengthen decentralized system Monitoring Specific Objectives Obj. 1: To clarify the roles and responsibilities of different institutions and departments at national and local levels in monitoring and supervision Obj. 2: To strengthen the capacities of District Education Offices and County Education Offices in Monitoring and supervision, including classroom assessment of learning Obj. 3: To strengthen record keeping capacity at the school/community level Obj. 4: To decide on a set of outcome indicators for monitoring progress towards ESP objectives and outline mechanism for monitoring plan progress Obj. 5: Improve the EMIS and the analysis and use of EMIS data

1 and 2 1 and 2

1 2

3 3 3 3

1 and 3 3 2 and 3 2 and 3

3 3 3 3 3

E. Lessons learned and reflected in the project design 70. The Dutch/UNICEF Education Fund pooled with Soros Foundation resources has set the path for an important partnership in support of the LPERP. This program was implemented by the MOE and was the first program to be directly implemented by the government after the civil war. The MOE will, during implementation, take full responsibility for the financial management that has, so far, been supported by the Ministry of Finances (MOF) Project Financial Management Unit (PFMU) with regard to financial management and procurement. A PST will be established in the MOE for this purpose and to improve the coordination of external financing. The revised sector coordination and implementation arrangements, as compared to the pooled funding structure, are more aligned with ministry structures enabling full ownership of the CF by the MOE. Currently no donor has shown interest in pooling funds using these new improved implementation arrangements, but if the situation should change, other sources of funds can utilize the arrangements. 71. were: Some of the other important lessons learned from the current pooled funding mechanism The implementation capacity and as a result the absorptive capacity of the system was higher than was anticipated. Under the pooled fund, US$12 million was committed and US$6 million disbursed within a year in support of textbooks, school construction, and rehabilitation of and equipment for teacher training institutions. The ministry therefore gained some capacity in managing smaller projects with limited components. Capacity will however have to be increased substantially if the Ministry is to manage a larger project with new and unfamiliar procurement and financial management arrangements. The CF will feature a strong Project Support Team (PST) that will implement the CF and support the development of the capacity of the MOE to manage such projects is built (component 3). The need for developing a detailed implementation plan that includes government and donor activities to ensure coordination and complementarity. The LPERP did not have an implementation plan at the initial stage which caused innumerable problems and it is fundamental therefore to provide a general framework at the very beginning that includes the support of all partners and other bodies responsible for execution of activities. The CF will have an implementation plan for the first eighteen months which will be available at approval and which will guide the work of the PST and the divisions within the three departments responsible for implementation (component 3). Using delegated management for the construction of schools has borne some fruit, however, challenges remain. Under the current pooled fund, 40 schools have been built using this delegated approach; however, little attention was given to the supervision of the work. It is proposed that an firm of civil works consultants should be contracted to supervise the construction of the proposed schools under the EFA FTI CF (component 1) A new approach needs to be taken in order to build schools in hard-to-reach and rural areas as it became apparent during LPERP implementation that it is extremely difficult to get contractors to bid on projects located in remote communities. The use of a more flexible approach involving NGOs as well as involvement of the communities in these areas should increase local accountability and ownership (component 1)

The procurement of textbooks needs to be planned in detail. During the pooled fund implementation, the procurement of textbooks was delayed and the text books were kept in storage in warehouses for a lengthy period. This project will use competitive bidding procurement procedures which would include the delivery of learning materials to the districts or classrooms (component 2).

72. As Liberia still faces considerable challenges in addressing access to educational opportunities, especially in rural areas, the CF will prioritize addressing access and equity and increasing management capacity. Improvements in these areas will lay the foundation for addressing learning outcomes. Without the required fundamental educational inputs (i.e. schools, textbooks, teachers), it is impossible to focus on learning outcomes. In light of this, under component 2 of the project, several interventions are planned to provide educational inputs (textbooks and school grants) but also to look at ECD and school health to begin to plan for improved learning outcomes. F. Alternatives considered and reasons for rejection

73. The use of a Development Policy Operation (DPO) was rejected, because the main focus of the program is on urgently needed investments in a variety of areas including school construction, provision of textbooks and capacity building rather than on a policy reform program. Some key policy reforms such as improving sectoral budget allocation, developing a framework for institutional capacity building at district and school levels, and improving personnel management have been included in the upcoming programmatic DPO prepared by the World Banks Poverty Reduction and Economic Management (PREM) unit. 74. The recent public expenditure management and financial accountability review (PEMFAR) conducted an assessment of Liberias financial management and procurement systems. Weaknesses were identified with specific reference to internal audit, external audit, legal and regulatory framework, budgeting, procurement and concession as well as cash and debt management. The risks associated with procurement and financial management are rated high. 75. With the continued high country risk as identified by both the financial and procurement assessments, the team considers the investment grant based on World Bank procedures to be the best adapted instrument to the fiduciary realities. 76. The current pooled fund was considered as a possible option; however, the following concerns were highlighted: Governance: No threshold under which the MOE can work freely without each request going through the advisory board made up of contributing donors. As some contributing donors might not have a permanent in-country representative, attending such Board meetings on a more regular basis might be a problem if this were to be warranted by an increase in activities resulting from increases in funding and/or donors. Financial reporting: quarterly financial reports are not prepared on time;

Planning and monitoring: annual action plans are not submitted on a regular basis and implementation plans have not been prepared since June 2009; Financial management and procurement: the pooled fund is currently using public financial management procedures that have been identified by the World Bank assessment as high-risk. To date, an annual audit of the pooled fund has not been undertaken. It is expected that an audit will be undertaken by fall 2010; and No new donors have been attracted to join the fund: The Liberia Reconstruction Trust Fund and Heath Sector Pooled Fund have been more successful in increasing the number of donors pooling funds.

77. Throughout implementation, the CF would remain open to a pooled fund arrangement if other donors/partners are interested in joining. III. IMPLEMENTATION

A. Partnership arrangements 78. The allocation of resources used to establish the Education Pooled Fund marked the first step toward the establishment of a partnership in support of the LPERP. The allocation of US$16.25 million has been utilized primarily on access and quality inputs. The EFA FTI, through the CF, would mark yet another landmark by galvanizing support for the governments ESP and providing funds to begin to implement reforms to assist in accelerating Liberias progress towards meeting the MDGs in education. 79. The ESP, prepared in close collaboration with the in-country donor team, is the agreed framework for FTI support. A recent positive development in support for the education sector has been USAIDs approval of a new project aimed at expanding access to and improving the quality of basic education for children and youth (ages 10-35). The EUs support for the sector is on track with the establishment of strong technical teams for education statistics data collection and analysis; and teacher training. 80. The first joint annual sector review took place in June 2009. It has been agreed that reviews should be conducted twice a year. These reviews bring together all key stakeholders in the sector and include, among others, representatives from Ministries of Planning and Finance, donor and implementation partners, the MOEs Senior Management Team (SMT), representation from counties and districts, including civil society and parent-teacher associations. These reviews allow consultations among stakeholders and the building of national ownership of education sector reforms. They will also allow stakeholders to: review and advise on the development of the annual implementation plans to ensure consistency with the ESP; assess progress of the ESP implementation including performance indicators; and review the education budget and conduct field visits to assess results at school level. B. Institutional and implementation arrangements

81. The CF will be implemented by the MOE and will use existing structures and units. These structures would be reinforced by a project support team (PST) to provide day-to-day support for CF implementation. 82. Overall CF coordination. The senior management team (SMT) is the executive body of the MOE. It consists of the Minister of Education and Deputy Ministers for Administration; Instruction; and Planning, Research and Development, the Assistant Ministers and the MOE financial comptroller. The SMT will be charged with the overall policy direction together with the key implementation decisions regarding the sector and therefore the EFA FTI CF as well. The SMT delegates implementation to the relevant assistant ministers/departments as necessary. The SMT will work in close collaboration with the Project Financial Management Unit (PFMU) of the Ministry of Finance (MOF), particularly in the area of financial management and disbursement. These structures have been functioning for the past year through the implementation of the LPERP. The existing PFMU at the MOF takes up the responsibility to manage funds under the CF for the first eighteen months of the project and thereafter it would transfer this responsibility to the MOE subject to (a) the bureau of General Auditing Commissions (GAC) recommendation; and (b) a favorable World Bank financial management assessment. 83. The CF will utilize some of the institutional arrangements created under the pooled fund although with a few changes made to lessen the number of committees and groups originally created under the fund. The arrangements are as follows: 84. The Education Sector Development Committee-Executive Board (ESDC-EB) will serve as the oversight body to oversee the implementation of the ESP. The ESDC-EB will be chaired by the MOE. This body will provide oversight of the policies laid out in the ESP by providing a forum for policy dialogue and decision-making at the macro level. The ESDC-EB will include representatives from the Ministries of Finance and Planning, as well as donor representatives. The ESDC-EB will meet quarterly and will report to the SMT of the MOE. 85. The Education Sector Development Committee (ESDC) will incorporate the current local education group which comprises the MOE, the donor partners, as well as other education stakeholders such as implementation partners and civil society organizations. This will be a forum for education stakeholders to be informed about education policy decisions and to report on the progress of their relevant projects. At this level, technical working groups established by the ministry will provide updates on their work. 86. A Project Support Team (PST) within the MOE will be set up to assist with the day-today management of the CF project. The PST will comprise a project coordinator and two financial management and two procurement specialists. The PST will fall under the Department of Planning and each of the PST staff will be hired under performance-based contracts. Additional capacity building will be provided within the MOE to strengthen sector management to improve efficiency and accountability in the allocation and execution of external resources; develop transparent planning and monitoring systems to achieve national education goals; improve coordination, policy dialogue and utilization of domestic and external resources.

87. The PFMU is a unit established within the MOF and is responsible for providing financial oversight and technical support in financial management and reporting to selected externally-funded projects in Liberia. Two financial management specialists will be recruited under the CF project and will be given on-the-job training by the PFMU for a period of one year. The PFMU will also be responsible for all disbursements, production of regular financial reports and training the two financial management specialists hired under the CF project. At mid-term review, FM responsibilities would be transferred to the MOE subject to (a) the GACs favorable recommendation; and (b) a favorable World Bank financial management assessment. C. Monitoring and evaluation of outcomes/results 88. Since 2007, the MOE has been working in cooperation with the national statistics agency, LISGIS, and with support from UNICEF and UNESCO, to conduct a yearly school census survey. In general, these surveys have proved successful and have provided much-needed data for the government, donors, and other education stakeholders. With support from the EU, the MOE has started to think about making the collection, processing, and dissemination of information a regular, sustainable process that will be firmly embedded in the MOE. The EU is currently providing technical assistance to oversee this process. The outcome indicators for this project will be included in the set of indicators to be tracked by a regular school reporting system. This comprehensive set of indicators will be reviewed during the education sector reviews, thus increasing the likelihood that the data will be made available at such times as to ensure reaction to any trends in the data that signal the need for course correction in the EFA FTI CF. At the project level, the Department of Planning will be responsible for making sure that the data is available in a timely manner. Under the CF, qualitative surveys at the school level will be introduced to complement the quantitative surveys currently in place. This combination of surveys will provide information about school level outcomes, including attendance of teachers and students as well as learning outcomes. Although it is unlikely that this detailed data will be tracked in all schools, the CF will support the usage of qualitative and qualitative data to drive policymaking. An independent auditor will conduct spot checks on school grants and teacher attendance on a random and representative sample of schools on a quarterly basis for each year of CF implementation. D. Sustainability 89. The sustainability of this operation will be driven by the degree of ownership and capacity of the MOE at all levels and by the governments continued commitment to education in the national budget.
90.

Financial sustainability. Based on the scenario proposed in the ESP, a financing gap has emerged of US$50 million for basic education (US$1.5 million for recurrent costs and US$48.1 million for investment costs). The CF is projected to cover approximately 20 percent of the program costs. A small gap would remain that will most likely be filled by new donor partners coming into the sector (i.e. SIDA, and other bilateral agencies). Although macro-economic performance has improved over the past couple of years and has been assessed as satisfactory, the macroeconomic framework still remains fragile.

91. Government commitment. The education sector strategy outlined in the ESP and supported by this grant is government owned, with the vision, goals, and implementation arrangements articulated by the senior management leading the sector. The ESP has benefited from extensive national and regional consultations with key stakeholders. 92. Institutional sustainability. Over the past two years, the MOE has gained experience in managing and implementing an education program through the establishment of the LPERP. In addition, over the past few years, other donors have been supporting institutional reform. The EU is providing long-term assistance (two-year) in the following areas: monitoring and evaluation with support for the EMIS and supervisory mechanisms, public financial management (PFM) reforms, teacher training, and some infrastructure support. Currently, USAID is also providing short- and long-term training for MOE staff. If additional long-term training is necessary, the MOE will ensure that those taking part will sign guarantees (bonds) to confirm their commitment to return. Support to the counties and districts is expected to contribute to institutional sustainability. E. Critical risks and mitigation measures proposed
Risk factors Description of risk Rating of Risk Mitigation measures Rating of residual risk* L

Country and/or Sub-National Level Risks Macroeconomic Liberia is transitioning from Framework post-conflict to economic reconstruction and development. The macroeconomic outlook is promising with growth improving steadily since 2004. The government has made progress in stabilizing the economy and improving fiscal management with a fiscal surplus of 3.8 percent of GDP in 2007 and 1.2 percent of GDP in 2008. The external public debt has decreased from US$4.8 billion in June 2007 to approximately US$1.7 billion at end-September 2009 largely as a result of a 1.2 billion commercial debt buy-back. However, as the latest Debt Sustainability Analysis (April 2009) shows Liberia is still under debt distress and vulnerability to external shocks. The exchange rate is broadly stable and although the

The medium-term economic outlook is favorable, with growth rates expected to improve to about 6 percent by 2010 supported by the recovery of commodity prices and consequently new investments in key sectors including mining, forestry, agriculture and services. The maintenance of a balanced cash budget and the recent increase in reserves are expected to contribute to the maintenance of broad macroeconomic stability. The country is expected to benefit from further debt relief under the HIPC initiative when it reaches completion point in mid-2010. The government also expects to benefit from additional debt relief from Paris Club creditors. The government has prepared a Poverty Reduction Strategy focused on rapid pro-poor growth. In addition, the government is taking specific measures to address the various dimensions of poverty including improving health and education and

current account deficit is relative high (above 40 percent of GDP) it is fully financed, mostly by donor transfers and foreign direct investment. External shocks, particularly from rising food and oil prices as well as the significant decline in primary commodity prices, could pose significant challenges for Liberia going forward. Poverty is pervasive in Liberia. From the 2007 Demographic and Health Survey, 64 percent of the population lives below the poverty line with most of the poor living in the rural areas. The high unemployment situation remains a source of concern for the authorities. The security situation in Liberia remains fragile because of the number of (mostly) unemployed excombatants who have yet to be reintegrated into society, the lack of strong domestic institutions which can mediate conflicts and enable them to be resolved without resorting to violence, and the fragile political situation in Liberias neighbors, Cte d'Ivoire and Guinea. Political risks loom large as the population looks for a substantial peace dividend. Failure to deliver jobs and to tackle corruption could result in a lack of support for the governments reform agenda. Potential for disruptions due to upcoming elections in 2011. Not only a major risk, but with limited scope for identifying mitigating steps.

addressing gender inequities. The government is also implementing a cash-for-work program as well as a school feeding program and a food program for pregnant and lactating women.

Country Risk (political, security)

While within the context of this project the security risks cannot be mitigated directly, the activities supported by the IDA-funded Economic Governance and Institutional Reform project will contribute to addressing some of the contributory factors to the countrys civil strife and economic collapse. In addition, the government is working with the United Nations Mission in Liberia (UNMIL) to maintain an effective security presence in Liberia including at the borders. UNMIL is scheduled to remain in Liberia at least until 2010. The government is also using communication outreach to better inform the public of ongoing reforms and the likely impact on the delivery of public services.

The ESP has focused on involving, to the extent possible, local actors at county, district and school levels, in hopes that the involvement of these stakeholders, all of whom are important to their elected officials,

Systematic Corruption

The inadequacy of internal controls in government systems, the history of widespread corruption during the interim government and lack of trained civil servants also make this project a high risk. Sector-specific Risks Public Low salaries/benefits render Administration MOE jobs unattractive to qualified personnel.

will help stabilize policy gains in the face of political pressure. The Project Support Team to be established under the CF will be able to mitigate some of this risk by providing a core group with contractual status and no political orientation that will not be changed regardless of the outcomes of the election. The PFMU within the MOF addresses this risk to a degree. Additionally, this risk is further mitigated by the capacity building of staff within the PFMU and MOE (procurement and financial management) complemented by technical assistance and intense Bank supervision. Civil service reform is currently ongoing to design a compensation regime that attracts, retains and motivates civil servants as well as a pension scheme that ensures decent post-service benefits. Transparency via advertisement in the local newspapers of the list of schools receiving grants and amount to be received. In the first year of CF implementation, the MOEs capacity to administer the school grants via CSBs at the local level will be strengthened. The operation builds on the activities implemented under the LPERP. For activities that were not successfully implemented under LPERP, changes have been made in project design for the CF components. The weak human resource capacity in the public service represents one of the main risks of this operation. This risk will be mitigated through strengthening management and institutional capacity at central, county and district levels. International consultants will be recruited to manage the construction program. These capacity building activities will be complementary to the EC support started in 2009, which is providing three long-term technical assistants for two years in the areas of PFM, EMIS, and teacher training. In the area of PFM, the EU project will facilitate a

Basic Education

Delivery of school grants without leakage.

Operation-specific Risks Technical Design Complexity of design and ambitious activities.

Implementation capacity

Implementation capacity risk arises from the lack of sufficient professional staff and weak institutional capacity and coordination in the wake of the long history of socio-political instability and very limited foreign assistance.

baseline assessment of PFM of the education sector, including finance, procurement, warehousing and distribution; and central and decentralized practices, including related personnel needs analysis. For the EMIS in particular, the EU project will undertake a detailed analysis of the EMIS to determine (i) weaknesses in EMIS database structures, (ii) weaknesses in policies and procedures that affect, or could affect, the sustainability of the system, and (iii) functional weaknesses. In teacher training, the EU project will provide in-service training to unqualified primary teachers in six counties. Procurement Limited procurement capacity and experience with World Bank procedures H While an international procurement management firm was previously hired under a World Bank project (Economic Governance and Institutional Reform Project) to build procurement capacity within the PFMU, this arrangement has now ended. Two experienced procurement specialists will be appointed under the CF and will be located within the MOE. The PFMU in the MOF will be in charge of financial management aspects of this operation while the fiduciary units in the MOE will be strengthened during the course of the project. The EU project will also assist in developing capacity to implement PFM policies. At mid-term review, FM responsibilities would be transferred to the MOE subject to: (a) the bureau of General Auditing Commissions (GAC) favorable recommendation; and (b) a favorable World Bank financial management assessment. Funds transfer to the schools will not commence until the current system of school grants has been strengthened. This would include (i) the development of school grant guidelines; and (ii) verification that at least 400 Selected Primary and Junior S

Financial management

Limited financial management capacity and experience with World Bank procedures. Weak financial management and risk that funds will not be used for the intended purpose.

Secondary Schools have met the eligibility criteria to receive grants. Social and Environmental safeguards Potential negative environmental and social impacts related to the construction of schools M Per the requirements of the safeguard policies, the project prepared an Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF). L

Overall risk (including reputational risks) S Rating scale: H=high; S=substantial; M=modest; L=Low or negligible *Risk rating with mitigation

F. Grant conditions and covenants Conditions for project effectiveness: (e) The execution and delivery of the Grant Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action. (f) An MOU has been entered into between the MOF and the MOE laying out their working relationship and the respective responsibilities in accordance with Section I.B.2 of Schedule 2 to the Grant Agreement. A draft MOU has been reviewed during negotiations. (g) The PIM has been adopted by the Recipient satisfactory to the World Bank. The PIM has been reviewed and will be finalized by September 18. (h) A Project coordinator and two procurement specialists have been recruited to the PST pursuant to terms of reference and qualifications acceptable to the World Bank and in accordance with Section III of Schedule 2 to the Grant Agreement. The Expressions of Interest have been published in the local newspapers and DG market. Dated covenants: (d) No later than six months after the Effective Date, the Recipient shall recruit and employ an external auditor for the Project, with terms of reference and qualifications satisfactory to the World Bank, in accordance with the provisions of Section III of Schedule 2 of the Grant Agreement to perform the audits required under Section II.B of Schedule 2 to the Grant Agreement. (e) No later than two months after the Effective Date, the Recipient shall recruit and employ two financial management specialists for the PST with qualifications satisfactory to the World Bank. (f) No later than twelve months after the Effective Date, the Recipient shall develop templates, in form satisfactory to the World Bank, for the capture of expenditure information from the Selected Primary and Junior Secondary Schools.

Other conditions: 93. No withdrawal shall be made under Category (2) for School Subgrants for Part 2.b.2 of the Project until the following conditions are met, in a manner satisfactory to the World Bank: (i) development by the MOE, with technical assistance financed under the CF Project, of the School Subgrant Guidelines; and (ii) verification that at least 400 of the Selected Primary and Junior Secondary Schools have met the eligibility criteria to receive Subgrants. Retroactive financing: 94. Withdrawals up to an aggregate amount not to exceed US$400,000 may be made for payments made on or after July 21, 2010 to cover eligible expenditures relating to the recruitment of contractual staff. IV. APPRAISAL SUMMARY

A. Economic and financial analyses 95. Since 2004 average real spending for education has increased by 26 percent per year (PEMFAR, 2008). These increases however have largely mirrored overall total increases in government expenditure and hence the change in the percentage going to education has been minor. 96. With these increases, it is worth noting that Liberia is seemingly giving due attention to primary education and, in doing so, is meeting the EFA indicative target of approximately 50 percent of expenditures on primary education. However, expenditure on secondary education is of concern as the percentage of expenditure observed is due to the adjustment upwards from 6 to 7 years of schooling and the contribution of expenditure for technical and vocational education and training (TVET) which is larger than for general secondary education alone. Liberia compares very favorably with its neighbors and other post-conflict sub-Saharan countries in terms of expenditure on primary education as the table below shows.
Table 8: Comparative Distribution of Public Spending on Education by Level for Selected West African and Post-Conflict Countries % on Prim (adjusted to 6 years) 60.3 50.7 50.6 49.8 49.6 48.2 47.1 46.6 44.4 44.4 44.4 44.4 40 40 % on Sec (adjusted to 7 years) 17.5 27.2 31.4 25.8 29.1 29.8 23.9 32.7 34.3 30.8 28.1 27.9 45 39.7 % on Higher Ed 22.2 22.1 18 24.4 21.3 22 29 20.7 21.2 24.8 27.5 27.7 15 20.3 GDP per capita 2006 429.9 545.1 176.3 307.1 624.9 252.5 263.5 927.9 1,699.7 361.3 110.5 760.9 1,008.2 344.1

Country Burkina Faso Benin Liberia Gambia, The Chad Sierra Leone Rwanda Cote dIvoire Sub-Saharan Africa Average Guinea Burundi Senegal Cameroon Togo

Ghana Mali Guinea-Bissau Nigeria

39.3 35.3 33.3 29.1

39.1 48.4 43 51.2

21.6 16.3 23.7 19.7

560.9 490.1 185.0 797.0

Source: Authors Estimates Based on World Bank Data, 2008

97. A simulation model was used to determine the resources needed to obtain the objectives in education. The CF is projected to cover approximately 20 percent of the overall education program costs (2010-12). Based on the scenario proposed in the ESP, a financing gap for 20102012 has emerged in the amount of US$1.5 million for recurrent costs and US$48.1 million for investment costs. (A complete economic analysis is provided in Annex 9). B. Technical 98. The CF will strengthen the education system and lay the foundation for more investments in the sector. The priorities of the CF support have been selected to support the Government of Liberia in implementing the first three years of the ESP in coordination with government and donor financing. Direct support to schools and training of DEOs and school directors to fulfill their roles will allow for greater ownership, better accountability and improved cooperation between government and civil society in order to promote equity and ensure quality service delivery. Both teachers and students will be provided with learning materials. The school construction approach was based on lessons learned from the LPERP currently under implementation and experience from the World Banks CDD project also under implementation. C. Fiduciary 99. Financial management arrangements. The financial management assessment of the MOE established that the financial management system in operation did not meet the minimum standards required by the Bank. The assessment recommended a number of actions, short- and long-term, to address the shortcomings of the FM system and proposed an interim solution whereby an established governmental agency would take FM responsibility for the CF. 100. Due to weak financial management capacity at the MOE and the need to ensure effective and efficient management of resources, it has been agreed that the existing PFMU at the MOF will have the responsibility of managing the funds under the CF for the first eighteen months of the project and thereafter it would transfer this responsibility to the MOE subject to (a) the bureau of GACs recommendation and (b) a favorable World Bank financial management assessment. 101. The FM risk rating for the CF would be no more than substantial (S) if the short- term recommendations are implemented. In that regard, the PFMU/MOF will be responsible for the day-to-day financial management of CF funds. The PFMU will establish an effective accounting system that provides for adequate segregation of functions, is capable of recording all accounting transactions, and reporting correctly all assets and liabilities of the project. The PFMU will adopt the cash basis in the treatment and recording of all transactions. In addition, the PFMU will maintain a statement of liabilities outstanding at all times to correctly reflect the projects indebtedness to suppliers and third parties. The financial management system will follow the financial accounting procedures established for ongoing projects under the financial management of the PFMU. The working relationship and the respective responsibilities between the PFMU

and the MOE will be outlined in a Memorandum of Understanding (MoU). The signing of the MoU is a condition for effectiveness. 102. In order to limit risk exposure, transfer of funds to schools will not commence until the current system has been evaluated and strengthened. The funds for the school grants will be released subject to (i) development of school grant guidelines; and (ii) verification that at least 400 of the selected primary and junior secondary schools have met the eligibility criteria to receive grants. Individual schools will be transferred the funds upon successful completion of a sub-project agreement including (a) opening of bank account, (b) the establishment of a school management committee (SMC) and (c) the identification and training of staff to take up responsibility for the management of funds transferred. 103. Procurement arrangements. Procurement for the proposed project will be carried out in accordance with the World Banks Guidelines: Procurement under IBRD Loans and IDA Credits, dated May 2004, revised in October 2006 and May 2010, and Guidelines: Selection and Employment of Consultants by World Bank Borrowers, dated May 2004, revised in October 2006 and May 2010, Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 and the provisions stipulated in the Grant Agreement. The specific key risks for MOE procurement are related to the fact that the MOE staff have not had the opportunity to engage in procurement of goods, works and services under comprehensive donor guidelines such as the Associations. Further risks are the weak qualifications and training base for the subordinate staff. The overall procurement risk is high. There is a need to recruit two procurement specialists to provide the required guidance, coaching and mentoring to the staff of the procurement division of the MOE for at least 12-18 months. These key risks and mitigation measures, as well as the responsible parties and implementation timeframes for addressing these risks are captured in the table below.

Table 9: Key fiduciary risks and mitigation actions

No 1 Key risk Lack of opportunity to have a more experienced Procurement Specialist to look over the Units shoulder providing guidance, coaching and mentoring to instill the confidence needed in conducting procurement. Mitigation Actions Recruit two procurement specialists for at least 12 to 18 months to provide the required guidance, coaching and mentoring to the MOE staff to instill the confidence needed in conducting procurement. By Whom MOE upon
discussions

By When By effectiveness date.

and agreement by the TTL

104.

The proposed action plan to address the deficiencies in the assessment is as follows: i.There is an urgent need for MOE to recruit two procurement specialists from Liberia (if available) or the sub-region to provide procurement support to MOE for at least twelve to eighteen months. ii.Prior to the commencement of project implementation, a Project Operational/Implementation Manual should be prepared that would, among others, confirm the organizational arrangement for the management of procurement; provide detailed terms of references for the staff, and outline the functional relationships and interaction between the project staff responsible for procurement and the relevant units for administration and finance within the MOE. In addition, the manual would offer clear instructions and guidance for the management of procurement records. iii.At project start-up, an orientation of the staff on the principles of good procurement planning and practice, including discussions on procurement arrangements under the project, may also be provided by the procurement specialist. This would also be followed with the specialists participation in sessions for annual work plans and budgets, procurement planning, etc. and overall procurement support to MOE.

105. With these measures in place, and with the Bank office providing reviews and noobjections, as required, the project can be successfully implemented. D. Social 106. Several major constraints have been identified to the effective access and completion of basic education by all children. Issues of particular concern are: (i) significant burden carried by households in financing education, especially amongst the poorest households; and (ii) inequity in the supply of education, with the rural areas being disadvantaged. The government has integrated the removal of these constraints in its ESP. By increasing the number of school places and by bringing the schools closer to the communities the CF will help to reduce the gap in terms of access between rural and urban areas and between children with or without physical

disabilities. The school designs for the CF-financed schools will ensure greater accessibility for children with physical disabilities. E. Environment 107. The infrastructure activities planned under the CF are addressed in both the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF). A screening mechanism is in place which will ensure that all new construction, rehabilitation, and extensions of classrooms will be screened for their environmental and social impacts and, where called for, limited environmental analyses will be carried out to mitigate the impact. The delegated management agency (firm recruited under the CF) will include a chapter on environmental and social safeguard issues in its progress reports. F. Safeguard policies 108. The CF has triggered OP 4.01 Environmental Assessment and OP 4.12 Involuntary Resettlement due to potential negative environmental and social impacts related to the construction of schools. These impacts are likely to be very minor with regard to resettlement as the project will focus on rural areas where there is ample land. In addition, the majority of schools will be built in locations where schools have been built in the past and need to be rebuilt. The safeguard screening category is S2, and the environmental screening category is B. To address potential negative impacts consistent with the requirements of these safeguard policies, the project has prepared an ESMF and a RPF which have been disclosed in-country and at the World Bank Public Information Center. In addition to describing the environmental and social screening process, the ESMF makes recommendations regarding the need for capacity building to ensure its effective implementation as well as consultations with potentially affected persons as part of the screening process that will take place at the time construction plans are prepared. The costs of the ESMF and RPF recommendations will be covered under the CF. Safeguard Policies Triggered by the Project Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Involuntary Resettlement (OP/BP 4.12) Indigenous Peoples (OP/BP 4.10) Forests (OP/BP 4.36) Safety of Dams (OP/BP 4.37) Projects in Disputed Areas (OP/BP 7.60)* Projects on International Waterways (OP/BP 7.50) G. Policy Exceptions and Readiness The draft procurement plan for the first 18 months of activities was agreed upon during negotiations. Yes [X] [] [] [] [X] [] [] [] [] [] No [] [X] [X] [X] [] [X] [X] [X] [X] [X]

By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties claims on the disputed areas

The ESMF and RPF were disclosed in country and at the World Banks Public Information Center prior to CF appraisal.

Annex 1: Country and Sector or Program Background LIBERIA: FAST TRACK INITIATIVE GRANT FOR BASIC EDUCATION

1.

Liberia is a poor post-conflict country of 38,350 square miles located in West Africa. It is the oldest independent state in Sub-Saharan Africa. According to the 2008 population census, Liberia has a population of approximately 3,476,608 million people, 53 percent of whom are below 20 years of age. The UN Population Division reports that Liberia has one of the fastest growing populations in the world. For the period 1995 to 2025, the UN estimates project an annual population growth rate of 3.8 percent. Structure of the Education System The structure of the system is typical of the sub-region and is referred to in the Anglophone countries as the 6-3-3-4 system (6 years of primary education, 3 years of junior high school education, and 3 years of senior high school education and 4 years of tertiary education). Given the long years of conflict and the paucity of provisions in some areas of the country, the number of individuals who missed out on primary level education is very high. For this segment of the population who are already young adults, taking 6 years to complete primary level education is a disincentive. Therefore, the ALP was established by the government with the support of development partners in order to provide a less formal and shorter route (3 instead of 6 years) to the completion of primary education. According to the school census for 2007-2008, the ALP is mainly donor-funded and counts a total enrollment of 75,820 students. A rigorous evaluation of the program to shed light on ALP students performance and attendance has not been carried out to date. Although the government is ultimately responsible for providing education and training in Liberia, private institutions constitute a very large part of the delivery of education and training services. Available data indicates that, without the input of partners, the government would find it almost impossible to meet the nations demand for education. Private sector organizations, including faith-based entities (Christian and Muslim), large corporations and local communities are now major providers of education and training services. In particular, it is worth noting that above the primary level, public schools account for less than 50 percent of all enrolled students. This is most likely a result of the fact that there are a limited number of public secondary institutions as well as a reflection of the fact that parents oftentimes feel that their children can get a better education in private institutions. However, as noted above, fees for private institutions create a burden on cash-strapped families, especially those families with several school-age children. The table below shows the distribution of enrollment by provider type.

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Table 10: Distribution of Enrollment by Provider Pre-Primary to Secondary - 2007/08 (%)

Proprietor Public Private Mission Community

Preprimary Primary 62 16 8 14 57 18 12 13

Junior High 40 27 25 7

Senior High 29 30 37 4

Source: Based on data from the MOE 2007/08 School Census

5. The public sector is the largest provider of education at both pre-primary and primary levels. At junior and secondary high levels, private provision has surpassed the public sector as noted in the table above. 6. The relative increase in the percentage of students enrolled in community schools (from 5,438 in 1989 to 153,494 in 2008) is a reflection of the increase in demand for education by all sectors of the society and in all parts of Liberia. It is also a reflection of the fact that the government does not have enough resources or capacity to address this demand as community schools are funded by the local communities and staffed by volunteer teachers. Most often, these schools are made of local materials (i.e. sticks, thatch, palm fronds). Children attending such schools have little access to any type of curriculum-based teaching or school materials. According to the government, these schools should be eventually absorbed into government schools. However, the degree and frequency at which this happens is not known and needs to be assessed. 7. As the table below shows, there were low GERs before the start of the civil conflict and higher values after the end of the conflict for all levels up to the senior high. The GER values are particularly high for the pre-primary and primary levels. The two main reasons for the high values are the increasing demand for education and the fact that many who may have started school at the official age have had to resume again after a long absence while some others might have never had the chance to start school because of the conflict.
Table 11: Gross Enrollment Ratios 1981, 1984 and 2007/08
1981/82 Pre-primary Primary Primary + ALP Junior High School Senior High School Secondary 28% 20% 24% 29% 21% 25% 38% 53% 1984/85 37% 45% 2007/08 141% 94% 108% 43% 24% 33%

Source: MOE Final Report of the 1984 National Policy Conference on Education and Training and National School Census Data 2007/08

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Given that in Liberia almost all individuals start their education late as a result of missed schooling opportunities during the war or because of entrance examinations that keep children in pre-primary when their age mandates that they should be in primary, a significant percentage of

pupils in school are above the official primary school age. The net enrollment ratios (NER), as noted in the table below, highlight the significance of this problem.
Table 12: Net Enrollment Ratios 2005/06 and 2007/08
NER Pre-Primary Primary Junior High School Senior High School Secondary School 2005/06 31% 36% 5% 3% 4% 2007/08 38% 35% 5% 5% 5%

Source: MOE National School Census Data 2005/06 and 2007/08

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About 5.5 percent of those of the official age (6 years) are to be found in grade 1, while 93 percent are above the official primary school age. Overall, just 37 percent of those in primary school are of the official age while approximately 12 percent of those in junior high school are of the official age. The two charts below show the distribution of students in primary and junior high schools by age.

Figure 1: Distribution of Students in Primary Schools by Age Official Age Range 6 11 Years

Source: MOE National School Census Report 2007/08

Figure 2: Distribution of Students in Junior High Schools by Age Official Age Range 12 14 Years

Source: MOE National School Census Report 2007/08

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The decrease in NER in moving from the primary to the secondary level indicates that those of the official age decrease in number as the schooling ladder is ascended. This is not only due to the over-age students factor mentioned earlier, but also to the fact that student numbers decrease as the schooling ladder is ascended, i.e., many appear to end their schooling below the secondary level. Financial and accessibility considerations aside, the latter may be partly due to the fact that a number of students are already over 18 years by the time they complete primary education. This suggests that more attention needs to be paid to getting students into school at the right age and keeping them in school.

Disparities in Access to Schooling and Completion Rates 11. Disparities can be found in all levels of education. Due to lack of resources or availability of schools, many lack the opportunity to attend school. As the 2007 DHS for Liberia notes, 56 percent of females and 39 percent of males have never attended any school. According to the 2007 CWIQ, 60 percent of 6-11-year-old boys are out of school compared to 63 percent of girls of the same age. The table below shows the percentage of out-of-school children by age group.
Table 13: Percentage Out-Of-School Children by Age Group Age (years) 6-11 12-14 15-17 Enrolled 37 75 81 Male Out-of-school 63 25 19 Enrolled 40 78 75 Female Out-of-school 60 22 25 Enrolled 38 77 78 Total Out-of-school 62 23 22

Source: Liberia 2008 PEMFAR, World Bank based on 2007 CWIQ data

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GERs show marked differences between the two levels (primary and junior high levels) for every county as noted in the chart below. Further, at each level, large differences are to be found between many counties. Access to junior high schools is severely affected by the non-

availability of public schools and the fact that private schools lack places or the cost of the private schooling is such that parents cannot afford to send their children.
Figure 3: Primary and Junior High School GER Values of Liberian Counties

Source: Data from 2007/08 School Census

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Only two or three schools for the blind and deaf exist in the whole of Liberia and no schools for the mentally challenged. No school in Liberia has been constructed with special needs children in mind. Given the stigma attached to disability and the lack of needed facilities, special needs children are under-represented in schools. Given the number of special needs children as noted in the table below, EFA and MDG 2 cannot be achieved unless the necessary provisions are made, the stigma associated with disability is reduced and more parents/guardians are persuaded to send all their children to school. The civil conflict in Liberia created many orphans who have moved to the capital city. Added to their number are the many former child soldiers who for a variety of reasons cannot return to their homes. Some have been able to access skills training programs while a few others have been able to sponsor themselves and gain access to formal schooling. The great majority struggle to survive and pay scant attention to schooling. In order to get a better sense of the problem with these segments of the out-of-school population, it is necessary to get better data on their numbers and barriers to accessing education in order to devise a strategy.
Table 14: Percentage of Enrolled Primary Students with Reported Disabilities by County
County Bomi Bong Grand Bassa Grand Cape Mount Grand Gedeh Grand Kru Lofa Margibi Maryland Montserrado Nimba River Cess Sinoe % of Enrolled with Disability 0.35% 0.65% 0.24% 0.53% 0.40% 1.49% 1.33% 0.22% 0.47% 0.33% 0.83% 0.40% 1.28%

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River Gee Gbarpolu National

1.49% 0.28% 0.59%

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The completion rate values are low for every level and both sexes as noted in the table below. With fewer students attaining successive levels and with the dropping out that occurs at each level, the completion rate becomes smaller with movement up the schooling ladder. The very large difference between the completion rate for the primary level and that for the junior high school level is an indication of a systemic problem that requires attention. Also, the low completion rate for females at the secondary level needs to be looked at in order to achieve greater gender parity. Achievement of the EFA and MDGs of 100 percent primary completion by 2015 will be a big challenge, even though the present primary level GCR of 62 percent is much higher compared to the 2000 estimate of 21 percent.
Table 15: 2007-08 Proxy Completion Rates for the Primary, Junior High and Senior High School Levels Level Primary Junior High School Senior High School Male 67% 40% 25% Female 57% 30% 18% Both 62% 35% 21%

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Tertiary Education Until the 1970s, higher education in Liberia was largely provided by the University of Liberia, founded in 1862 as the Liberia College, and Cuttington University, founded in 1889 and known as Cuttington University College until fairly recently. Some of the institutions established after the aforementioned two have now acquired university status although the University of Liberia and Cuttington University remain the only graduate-degree-awarding establishments. In recent times, the tertiary education situation in Liberia has been complicated by the fact that, during and immediately after the end of the civil conflict, many charters to establish diploma and degree-awarding institutions were unwisely awarded. The consequence has been the offering of sub-standard education in a number of tertiary institutions. The National Commission for Higher Education (NCHE) is currently in the process of closing some of the worst offenders. Presently, the institutions recognized by the NCHE as providing tertiary education are the following:
Table 16: Graduate Degree Granting Institutions, Enrollment and Faculty - 2007/08
Institution University of Liberia Cuttington University Enrollment Male Female Total Capitol Hill, Monrovia Public Graduate 11,827 3,729 15,556 Suakoko, Bong County Private Graduate 1,129 817 1,946 12,956 4,546 17,502 TOTAL Source: National Commission for Higher Education Secretariat Location Type Level Male 178 75 253 Faculty Female Total 11 189 8 83 19 272

Table 17: Undergraduate Degree Granting Institutions, Enrollment and Faculty - 2007/08
Institution United Methodist University (UMU) AME Zion University College Stella Maris Polytechnic Liberia Baptist Theological Seminary W.V.S. Tubman Technical College African Methodist Episcopal University Location Monrovia Monrovia Monrovia Roberts Field Highway Maryland County Type Private Private Private Private Public Level Under Graduate Under Graduate Under Graduate Under Graduate Under Graduate Male 899 980 1,276 134 Enrollment Female Total 841 420 708 22 1,740 1,400 1,984 156 Male 119 73 107 50 Faculty Female Total 8 1 12 4 127 74 119 54

NON-OPERATIONAL 66 415 4 29 70 444

Monrovia Private Under Graduate 2,116 1,140 3,256 5,405 3,131 8,536 TOTAL Source: National Commission for Higher Education Secretariat

Table 18: Associate Degree Granting Institutions, Enrollment and Faculty - 2007/08
Institution Wesleyan Bible College Trinity Bible College Location Paynesville Harbel Roberts Field Highway Monrovia Monrovia Monrovia Monrovia Monrovia Monrovia Type Private Private Level Associate Associate Enrollment Female Total 4 43 5 60 Faculty Female 0 2

Male 39 55

Male 17 17

Total 17 19

Monrovia Bible College(MBC) Lincoln College Professional Studies Liberia Assembly of God Bible College West Africa School of Mission Theology Smythe Institute of Management & Technology Morris Community College & Airline Studies Jake Memorial Bible College Leigh- Sherman Community College Christian Theological Seminary

Private Private Private Private Private Private Private

Associate Associate Associate Associate Associate Associate Associate

35 131 130 34 149 15 -

10 29 573 7 350 65 -

45 160 703 41 499 80 0

15 21 118 19 23 18 5 13 17 283

2 1 16 0 7 1 1 3 0 33

17 22 134 19 30 19 6 16 17 316

Monrovia Private Associate 96 16 112 Monrovia Private Associate 0 684 1,059 1,743 TOTAL Source: National Commission for Higher Education Secretariat

Table 19: Diploma/Certificate Granting Institutions, Enrollment and Faculty - 2007/08

Institution LICOSSES Mobile Teacher Training Institute Free Pentecostal Bible Institution International College of Business & Technology Liberia Bible Institute Location Type Level Male Enrollment Female Total Male Faculty Female Total

Monrovia Voinjama

Private Private

Diploma/Certificate Diploma/Certificate Diploma/Certificate Diploma/Certificate 12 131 143

1 29 30

0 13 160 0 173

4 21 25

0 1 1

0 4 22 0 26

Monrovia Private Monrovia Private TOTAL

Source: National Commission for Higher Education Secretariat

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Ten out of the 23 entities, i.e. almost 50 percent, recognized by the NCHE as institutions of higher learning are seminaries/bible colleges. Approximately 60 percent of all students enrolled in the eight institutions awarding a bachelors degree or above are to be found at the University of Liberia. The University of Liberia still accounts for approximately 56 percent of the total student body. This means that, in 2007/2008, the University of Liberia had more students enrolled than all the other tertiary level institutions combined. The table below shows the enrollment figures for the University of Liberia.
Table 20: University of Liberia Student Numbers 1985, 1987 and 2007 Enrollment 1987 2007 4,073 15,556 Ave Annual Enrollment Growth 1985-87 1987-2007 18% 14%

University of Liberia

1985 2,998

Source: MOE 1988 Liberia Education and Human Resources Sector Assessment and National Commission for Higher Education Secretariat

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The University of Liberia accounts for approximately 18 percent of faculty in institutions recognized by the NCHE and has the highest student to faculty ratio (82:1). Teacher Training Presently, teacher training occurs either at the university level or through pre-service or in-service training programs. USAID is currently the main donor for teacher training although the EU plans on providing support for in-service teacher training in the counties where USAID is not focusing. Four university-level institutions train teachers, but total enrollment in the teacher training programs does not exceed 250 and the annual number of teachers graduated does not exceed 40. The university-level teacher training institutions are supposed to train teachers largely for the secondary level. Residential training of primary school teachers is largely carried out in two Rural Teacher Training Institutes (RTTIs); one other RTTI is still being rehabilitated. All three RTTIs were destroyed during the conflict which means that, for the past twenty years, the government has not been turning out any new teachers. Therefore, many of the teachers who were trained before the war and who have returned to the classroom are nearing retirement age without sufficient numbers of newly trained teachers to replace them. Rehabilitation of two of these institutions was completed in the third quarter of 2008 and, in November of the same year, they admitted their first set of students since the late 1980s. The total enrollment of the two RTTIs now in operation is 441. In June 2009, the first set of teachers with a C certificate graduated from the two institutions, the first time this event took place in Liberia in two decades. Another cohort received their C certificates in July 2010. As in the past, issues are being raised about the quality of the intakes into the RTTIs and concerns expressed about the duration of the training given the quality of the intake. Through support from USAID, there has been limited in-service teacher training in 6 out of the 15 counties through a one-year training program aimed at the many untrained teachers currently in the system. EU plans on training teachers in the nine counties where USAID is currently not funding in-service teacher training.

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For both in and pre-service training, there have been problems with the quality of candidates as many have not been able to meet the minimum qualifications for entrance into the training. Similar to the lack of interest noted at the university level, the RTTIs seem to be unable to attract enough qualified applicants, so much so that the two operational RTTIs are underutilized. This inability to attract qualified candidates is especially marked in terms of gender. The RTTIs, for reasons that have not been researched and fully understood, are unable to attract female candidates. Given the large number of unqualified and sub-standard teachers in the system, the low interest in teacher training at all levels, the limited capacity of the RTTIs, and the reluctance of unqualified teachers with families teaching in the rural areas to enroll in residential programs, a greater degree of synergy between the donor programs supporting teacher training needs to be established in order to address these problems. Technical and Vocational Education and Training (TVET) The control of TVET is largely under four main ministries: Education; Youth and Sports; Agriculture; and Labor. On the whole, TVET faces many of the same problems as other areas of the education sector: obsolete curriculum, dilapidated institutions/equipment, and lack of properly trained instructors. A committee has been established with membership from all four ministries in order to ensure coordination, cooperation, and maximization of use of available resources. To a large extent, the goals of the committee have not been achieved. As is the case for higher education, reliable and useful data on TVET is unavailable, even though UN estimates can be found. The available data shows that enrollment and the number of institutions offering TVET has grown since the 1980s as shown in the table below.
Table 21: Number of TVET Institutions and Enrollment 1982 and 2006 Year 1982 2006 No. 47 110 Enrollment 6,698 18,030

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Source: MOE 1984 National Policy Conference on Education and Training and the Situational Analysis of the Technical, Vocational Education and Training (TVET) System in Liberia, 2006

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The information that is available shows a largely unregulated and fragmented system of technical and vocational programs. The majority of these programs is provided by private providers, as shown in the chart below, and is based on a short-term training approach designed for the demobilization program that was undertaken after the war and not based on demand or any coherent government-led strategy.

Figure 4: Distribution of TVET Institutions* by Proprietor 2006

*Excludes schools which offer technical and/or vocational subjects as well as others

Source: MOE The Situational Analysis of the Technical, Vocational Education and Training (TVET) System in Liberia, 2006

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With old mines reopening, new mines and industries being established, new hotels and other infrastructure being constructed, the demand for individuals with needed technical/vocational education/training is increasing and enrollment in institutions offering TVET programs is expected to rise accordingly, that is, if the programs currently available match the demand. Comprehensive, regular and reliable information on the labor market situation would need to be provided by the government in order to formulate a TVET strategy for the future. The World Bank is currently preparing a TVET project with the objective of linking skills provision to employment.

Education Finance 28. Public Spending on Education - Aggregate Trends and Distribution across Levels It is estimated that since 2004, average real spending for education has increased by twenty six percent per year (2008 PEMFAR) as shown in the figure below. Overall, the expenditure on education in 2007/08 corresponded to approximately 2.9 percent of GDP.
Figure 5: Total Public Spending on Education 2004/05 2007/08

Source: Ministry of Finance, Annual Fiscal Reports - 2004/05, 2005/06, 2006/07 and 2007/08 as in 2007 PEMFAR

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In the 2007/08 financial year, the government spent a total of US$22,794,473 (13.6 percent) of its recurrent expenditure on education. This figure is below the FTI benchmark of 20 percent and that of many other Sub-Saharan countries as the chart below shows.
Figure 6: Public Recurrent Spending on Education of Selected Sub-Saharan Countries as a % of Total Recurrent Public Spending

Source: World Bank Data

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The table below shows the distribution of public spending on education by level. Liberia is seemingly giving due attention to primary education and, in doing so, is meeting the EFA indicative target of approximately 50 percent of expenditures on primary education. Expenditure on secondary education is still of concern as the percentage expenditure observed is due to the adjustment upwards from 6 to 7 years of schooling and the contribution of expenditure for TVET which is larger than for general secondary education alone. With the ongoing increase in graduates from primary school, without increased expenditure at the secondary level, problems will arise.
Table 22: Distribution of Public Spending on Education by Level after Adjustment to 6 Years Primary and 7 Years Secondary - 2007/08

Primary (+ Pre-Primary and Teacher Training) Secondary (+ TVET) Higher Education

50.60% 31.40% 18.00%

Source: Ministry of Education, Ministry of Finance and Budget Bureau

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Household Spending Despite the fact that the government has nominally declared primary education free, households still spend significant amounts of money on education relative to their earnings. The table below shows the figures for public and household spending on education for 2007. Even with free primary education many parents still have to pay for uniforms, textbooks, copy books/stationary, etc. In fact, private household expenditure on primary and secondary education is much greater than government expenditure. For example, for 2006/07, the 2007 CWIQ total private expenditure was US$27 million estimated while the total public expenditure was US$12.2 million in 2007.

Table 23: Public and Household Spending on Education 2007

Government Spending (US$ millions) 12 7 4 Total Spending (US$ millions) 23.6 16.4 10.4

Household Spending (US$ millions) Primary Education Secondary Education Higher Education Total 11.6 9.4 6.0

Share of Financing by Households (%) 49% 57% 58% 54%

27.0 23 50.4 Source: Estimates based on the 2007 CWIQ S

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The increase in enrollment in public schools has not been matched by an increase in spaces and classrooms. This has contributed to over-crowding in public primary schools while nearby private and mission schools might have spaces available which are not utilized. For those parents who can afford to, they prefer to send their children to private institutions. In order to make up for the loss of tuition income, the government has tried to institute a school grant program that would allow for schools to receive cash to cover their running costs. However, the government has had some difficulty in the past two years ensuring that the money reaches the schools on time; therefore, the schools often turn to the parents for resources to keep the school operational. At the secondary level, students in public junior high schools pay approximately US$8.50 per year, excluding examination and transcript fees which total less than US$2, while students at the senior high school level pay approximately US$11 per year, excluding examination, transcript and computer class fees which total approximately US$3. Private and faith-based secondary schools typically charge much higher fees, with many in the US$120-150 per year range. The table below shows private household expenditure in regard to education. Households in all quintiles and in the rural and urban areas spend the bulk of their money for education on uniforms and school fees. Apart from fees, uniforms and notebooks followed by bags and textbooks account for the largest share of household expenditure. The suggestion is that more has to be done to reduce the cost of education to parents if children from poor households are not to be severely disadvantaged, and if the target of universal primary is to be met not too long after 2015.

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Table 24: Private Household Expenditure for All Levels of Education by Quintile and Expense Type 2007
Residence Area (% distribution) Urban 30.8 0.3 3.7 0.1 1 9.3 4 1.2 0.8 6.5 Rural 12.3 0.4 2.3 0.5 0.8 4.3 3.1 0.7 0.2 8.3 Q1
(Poorest)

Expenditure Item School uniforms Raincoats School books Files and file folders Stationery for school Notebooks School bags and knapsacks Other school material Writing and drawing materials School fees pre-school

Quintile (% distribution) 30.4 0.4 4.1 0.2 0.5 8.2 3.3 0.7 0.5 6.3 Q2 28.4 0.3 2.7 0.3 1 8.7 4 1 0.6 6.4 Q3 22.3 0.3 2.1 0.4 0.8 7.1 3.1 1.2 0.4 7.2 Q4 15.7 0.4 2.5 0.3 0.7 5.2 3.4 0.7 0.4 7.7 Q5 (Richest) 13.2 0.4 3.1 0.5 1.1 4.8 3.3 0.8 0.3 8.6

Total 18.6 0.4 2.8 0.4 0.9 6 3.4 0.8 0.4 7.7

School fees primary school School fees - general secondary school School fees technical secondary school School fees higher education Professional/vocational training fees Total percentage Household expenditure on education in $US millions

20.5 15.1 1.2 4.4 1.1 100

25.6 25.5 1.1 13.4 1.5 100

23.3 16.4 1.4 3.9 0.6 100 2

24.4 16.8 1.4 3.7 0.4 100 3.4

25.3 19.6 1.6 7.7 1 100 4.7

24.5 23.3 1 12 2.1 100 7.2

22.6 25 0.9 13.9 1.5 100 9.7 2.9

23.9 21.9 1.1 10.3 1.4 100 27 3.4

Share of education in total household expenditure (in percent) 2.1 5.1 3.8 3.5 3.6 4.1 Source: Estimates based on the 2007 CWIQ Survey in WB PEMFAR 2008

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Personnel The table below shows the distribution of teaching and non-teaching staff by level
Table 25: Distribution of School Staff by Level - 2007/08
Total No. of Teachers (including volunteers, civil servants, and private) 9469 9338 2034 804

Level

Volunteers

% Volunteers

Civil servant

% Civil Servant

NonTeacher Civil Servants 973 1219 373 181

Pre-Primary Primary Secondary Higher Ed All

4398 3449 373 88

46% 37% 18% 11%

3396 4191 1250 570

36% 45% 61% 71%

Total Staff (incl. Admin) 10,442 10,557 2,407 985 24391

21645 8307 9407 2745 Source: Authors Estimates Based on Ministry of Education and Ministry of Finance Data

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The MOE undertook some payroll cleaning in 2006. Based on this cleaning, the number of ghost teachers was reduced, and some 697 un-cashed checks were recovered. However, this exercise was incomplete. A further payroll cleaning exercise is currently being conducted by the MOF.

37. The proportion of administrative staff at all levels is relatively high with the tertiary level having the highest. The proportion of non-teaching staff in pre-primary and primary are similar. The non-teaching staff comprise workers in the county and district education offices; however, it is not clear how many staff are located at the central level versus other levels. The proportion of non-teaching staff in secondary education is higher than in primary and pre-primary mainly is due to the staff in professional and technical schools. The proportion of non-teaching staff is the highest at the tertiary level and is indicative of the lack of recruitment controls at this level. 38. The table below shows the average annual teacher and non-teacher salaries for the education sector.
Table 26: Average Annual Salaries of Teachers and Non-Teachers by Level and Salary Ratios - 2007/08
Ave Annual Salary (US$) Ratios Pre-Prim Primary Sec Higher Sec:Prim Higher:Prim Non-Teachers 483 490 502 534 1.04 1.09 Teachers 568 576 590 627 1.04 1.09 Source: Authors Estimates Based on Ministry of Education and Ministry of Finance Data Staff

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Volunteer teachers aside, all teachers in public institutions are employed on permanent civil service terms. There is no provision for temporary or contract teachers, even for unqualified teachers. The salary is based entirely on academic qualifications, with no variation based on experience or performance on the job. At present, the teacher salary structure is very flat with minimal differentiation between teachers with different qualifications. An unqualified public primary school teacher with a high school certificate earns US$54.50 per month, while a qualified teacher with a C certificate earns US$55 per month. A graduate teacher earns US$57.75, only 5 percent more than a teacher with a C certificate. Non- teacher salaries are lower than average teacher salaries. The ratio of average salary levels for secondary teachers compared to primary teachers is only 1.04 to 1. Quality of education is low Overall, as noted in the table below, students from the missionary schools have the best EGRA test scores (51.3/100), followed by students from private schools (47.5/100). These results give credence to the perception of many parents that private institutions are of higher quality. Students from public and communities schools have similar scores (41/100). Given that schools run by communities with limited, if any, support from the government have similar scores to public schools, this raises serious doubts about the quality of teaching going on government-funded schools. An analysis of the average score by gender shows that, on average, boys perform slightly better (45.1/100) than girls (42.0/100).

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Table 27: EGRA Scores by Grade 25% of the students have less than Grade 2 Grade 3 Boys Girls Public Private Mission Community 30.3/100 35.4/100 33.0/100 31.7/100 31.2/100 34.8/100 44.8/100 29.9/100 50% of the students have less than 38.9/100 47.1/100 44.8/100 40.3/100 39.8/100 46.6/100 54.6/100 39.8/100 25% of the students have more than 50.2/100 58.8/100 55.7/100 54.3/100 51.6/100 57.5/100 65.6/100 54.7/100

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The percentage of success on the WAEC test, administered at the end of primary school, varies according to the type of school. Students from private schools have the highest percentage of success (88.8 percent), followed by students from mission schools (88.2 percent). The next best category consists of students from community schools (84.0 percent). Students from public schools have the lowest percentage of success (80.0 percent). Education Management Liberia operates a relatively decentralized education system consisting of the central ministry, 15 County Education Offices and 86 district levels. The MOE is responsible for planning and implementing national education policies and strategies, including developing financing plans and budgets. The MOE is headed by a minister of education who is responsible for the overall administration and management of education and training. The minister is assisted by three deputy ministers responsible for administration, instruction, and planning and development. In addition, the MOE coordinates the work of the county and district offices and has overall responsibility for basic education, facilities planning and construction, textbook procurement and distribution and certification of private schools. On the whole, the Ministry suffers from weak management capacity, especially at the middle management level which is the vital link to make sure that policy decisions taken by senior management are related and implemented by those at the lower levels. In addition, most personnel lack clear job descriptions and therefore have a limited understanding of how they fit into the overall framework and what duties they are to perform on a day-to-day basis; this is especially true for the decentralized levels. This lack of clear job descriptions also makes it difficult to effectively supervise employees. Each of the county education offices is headed by a county education officer (CEO) and staffed with a small team of support staff. However, as mentioned in the preceding paragraph, CEOs do not have a clear understanding of their functions and therefore cannot perform their

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43.

44.

supervisory role effectively. This trickles down to the district education officers (DEOs) who also have limited understanding of their job functions, visit schools irregularly, and when they do visit do so mainly to perform inspections and not to offer pedagogical support. Schools are not supervised, therefore, and implementation of programs is insufficiently monitored. Information on school performance is not systematically collected and the impact of interventions addressing access and quality are not assessed. Despite the decentralized structure, as with other government ministries, resources and management remained highly centralized prior to and during Liberias 14 years of conflict. To date, this is still the reality. 45. Unlike neighboring countries where school management committees (SMCs) play a significant role in education management, in Liberia these mechanisms are very weak. Although the education law mandates that each school have a Parent-Teacher Association (PTA), these associations usually do not exist or, if they do exist, they do so in name only. This is most likely due to the dissolution of any PTAs that did exist during the war but also might be a function of several other factors relating to the wars impact on community cohesion. With EU support, a management and functional review will be carried out in 2010. The review will assess the MOEs core functions in terms of its ability to facilitate the delivery of education services. The review will also set out organizational development, human resources, and decentralization policies. Heading the review process will be an internal reform committee. One clear challenge is the lack of effective flow of information and data from the school and local levels to the central ministry. Restricted access to information severely limits the Ministrys ability to plan responsive and relevant policies. Three national school censuses have been carried out since the end of the civil war and the report of the latest census was produced in October 2008. From pre-primary to secondary levels and including the ALP, the report sets out information on the number, size and distribution of schools, pupil enrollments (including those with disabilities), teachers and their qualifications, and textbook availability. With EU financing, support will be provided to increase the value of the EMIS by improving information availability and accessibility, widening the scope of information provided and strengthening information management. The idea is to organize the collection of routine data through the monitoring and evaluation (M&E) system, which will lessen EMIS dependence on the current school census. This approach will be piloted in 6 counties in 2010.

46.

47.

Annex 2: Major Related Projects Financed by the Bank and/or Agencies LIBERIA: Fast Track Initiative Grant for Basic Education

Donors to the sector include WFP, USAID, EU, OSI/Soros Foundation, UNICEF, UNESCO, and the World Bank.
Key Partners in Education*

Development Partner

Areas of Support

Amount

Duration

EU OSI UNESCO UNICEF USAID

capacity building, support to primary education capacity building, technical assistance, teacher development, civil society support reconstruction support to the Education System basic education, gender equality ALP, skills building and work-readiness for youth, teacher training, participant training and institutional capacity development, EGRA, textbooks, adult literacy, higher education basic education, vocational training school feeding

US$18.8 million US$0.75million US$2.1 million US$8.4 million US$60 million

20102012 2010 20102012 20102012 20102012

WB WFP

US$7million US$30 million US$127.05 million

20102012 20102011

Total *These figures include TA costs

Annex 3: Results Framework and Monitoring LIBERIA: Fast Track Initiative Grant for Basic Education

PDO Project Outcome Indicators Use of Project Outcome Information Project Development Objective: To increase access to basic education with a particular focus on poor areas, to improve conditions of teaching and learning, and to improve school management and accountability. A. Increased access to basic 1. Basic education completion rate (%)* Ensure that children entering basic education (primary and education in targeted poor junior secondary school) are completing school on time. areas 2. Direct project beneficiaries (number) of which female (%) (Core Indicator) - Students enrolled in schools constructed in targeted areas - Students benefitting from school grants B. Improved conditions of 3. Textbooks- Student Ratio at basic education level Ascertain that students have adequate access to textbooks. teaching and learning (defined as number of textbooks aligned with new curriculum to students) 4. Teachers having at least one teaching guide (%) Ensure that teachers benefit from adequate support materials to facilitate classroom teaching C. Improved school 5. Schools managed by a SMC or PTA (%) Ascertain the establishment of a SMC or PTA in schools management and accountability functions 6. School grants implemented in accordance with Verify that school grants are used adequately. agreed upon procedures (%) Intermediate Outcomes Intermediate Outcome and Output Indicators Use of Intermediate Outcome Monitoring Additional classrooms at the 7. Number of additional classrooms built or Verify that classrooms are being constructed in relation to basic education level rehabilitated at the basic education level resulting from the overall need project intervention (number) (Core Indicator) Early Childhood Development strategy strengthened Improved health of school children in targeted area Strengthened personnel management and new assessment tools developed and used 8. Cost-effective Early Childhood Development model designed and piloted (yes/no) 9. Children benefiting from de-worming interventions (number) 10. Unified HR database (Civil Service Agency, MOE, MOF) developed and maintained (yes/no) 11. Development of a pay and grade scale for teachers (yes/no) Assess the effectiveness of the models proposed and tested Monitor the implementation of deworming campaigns Ensure the effective management of education personnel Ascertain the availability of job descriptions and development of a pay and grade scale

54

12. Availability of annual sector statistics by May of each year (yes/no) 13. System for learning assessment at the primary level (rating scale) (Core Indicator) 14. DEOs using the new assessment instruments (%)

Ensure the availability of updated education statistics Ensure the availability of a reliable and valid test to assess student learning Assess strengths and weaknesses of instruments as they are applied in schools

* The basic education completion rate is arrived at by averaging the primary and junior secondary completion rates.

The following indicator will be tracked over time but will not be considered a performance indicator of the project: At least 25% improvement in connected text reading fluency, measured as correct words per minute in a passage of appropriate difficulty (grades 2 and 3)

55

56

LIBERIA: Fast Track Initiative Grant for Basic Education Project

Activities/ Outputs Intermediate Outcomes/ Indicators Outcomes/ Higher level Outcomes

A.1 Hiring Teaching Staff

A. Adequate Number of Teaching Staff

A.2 Providing Incentives for Teaching Staff to Locate in Disadvantaged Areas

B.1 Building/Rehabilitating Facilities 7.Number of additional classrooms built at the basic education level resulting from the project intervention (Core) C.1 Providing Financial Support /Incentives to Disadvantaged Students

B. Adequate Infrastructure and Facilities

1. Increased Access (enrollment) and Equity in Basic Education

C. Increased Use of Incentives among Disadvantaged Students

1.Basic education completion rate (%) 2. Direct project beneficiaries (number), of which female (%) (i) Students enrolled in schools constructed in target areas (ii) Students benefiting from schools grants

D.1 Training Teaching Staff

D. More Qualified Teaching Staff Improved Student Learning

E.1 Developing/Reviewing Curriculum

8. Improvement in connected text reading fluency 2. Improved Quality (completion) of Basic Education

E.2 Strengthening Pedagogy-Teaching Methods - Teaching guides developed (number) - Teaching guides distributed (number) E.3 Purchasing and distributing Learning Materials - Textbooks purchased and distributed (number)

E. Improved conditions for teaching and learning 3. Textbook- student ratio at basic education lelvel 4. Teachers having at least one teaching guide (%)

F.1 Establishment of Community Participation in School Management - Guidelines established that encourage community participation in school management (yes/no) - Community representatives trained to participate in school management committees (number) F.2 Strengthen School Grant Mechanisms - Procedures developed including allocation criteria, financial management rules etc. (yes/no) - Staff trained in strategic planning, budgeting, reporting, etc. (number). - School inspectors trained (number) G.1 Strengthen monitoring mechanisms - New school level assesment instruments developed (yes/no) - National assessment test for grades 4 and 7 developed (yes/no) - Staff trained in monitoring and tracking school level data (number) G.2 Strengthen personnel and payroll management 11. Unified HR database (Civil Service Agency, MOE MOR) developed (yes/no) 12.Development of a pay and grade scale for teachers (yes/no) - Staff trained in monitoring and tracking school level data (number)

F. Improved School Management and Accountability functions 5. Schools managed by a SMC or PTA (%) 6. School grants implemented in acordance with agreed upon procedures (%)

G. Improved Primary Eduaction Sector HR Management and Monitoring HR Management 11. Unified HR database (Civil Service Agency, MOE MOR) maintained (yes/no) Monitoring 13. Availability of annual sector statistics by May of each year (yes/no) 14. Learning Assessment System in place (yes/no) + (score 0-4) CORE 15. DEOs using the new assessment instruments (%)

H.1 Distribute deworming drugs and life-skills material - Learning material (life-skills student modules) developed (yes/no) - Deworming program established

H. Improved Management of Health Issues at School Level 10. Children benefiting from deworming (number)

57

Arrangement for results monitoring Institutional Issues: Over the past three years, the EMIS team under the MOEs Planning Department has been administering a school census and inputting the data into the EMIS with support from donor partners and LISGIS, the national statistics institute. Presently, the MOE is using the school survey data to guide its future planning; however, one of the issues with this method has been the timely cleaning and analysis of the data. In light of this, the Ministry has been discussing replacing this yearly survey with a regularized school reporting system in the hopes that this will allow for the collection of more timely and accurate information. The EU and UNESCO are currently collaborating with the MOE on this in order to build the capacity of the Ministry to carry out this data collection. EU will be performing a management and functional review that will take into consideration the present quality assurance, monitoring and evaluation, and EMIS capacities. The outputs of this review will include a baseline report and an implementation plan for EMIS which will include drafting guidelines for the compilation of yearly education statistics. The Project and Intermediate Outcome Indicators will be included in the set of indicators selected by the Ministry for yearly data collection. The Senior Management Team of the Ministry will need to ensure the timely reporting of this data in order to provide for effective management of the project and to ensure that development outcomes are being obtained. These indicators will also form part of the progress indicators for oversight of the ESP which will be assessed at the annual education sector reviews. Therefore, this information should be available in order for the Ministry to assess performance under the project and design course corrections where necessary. Capacity: County and district education officers will be trained to oversee the collection of this data at the local level, and will then report the data to MOE HQ. The HQ will be responsible for cleaning and timely analysis of data as well as reporting to partners.

58

Arrangements for Results Monitoring

Baseline 2008 unless noted Frequency and Reports Data Collection Instruments Responsibility for Data Collection

Project Outcome Indicators

Year 1

Year 2

Year 3

1. Basic education completion rate (%)

49% 52% 54% 56% Annual MOE report MOE Planning Dept

2. Direct project beneficiaries (number) of which female (%) (Core Indicator) - Students enrolled in schools constructed in targeted areas - Students benefiting from school grants 3. Textbooks- Student Ratio at basic education level (defined as number of textbooks aligned with new curriculum to students) 4. Teachers having at least one teaching guide (%)

150,000

470,000

Annual

Quarterly project reports

MOE Planning Dept

Instruction Department 0 0:0 1:2 1:2 Annual Audit report DEOs Schools Independent auditor Instruction Department 0 0 50% 80% Annual Audit report DEO report DEOs Schools Independent auditor

5. Schools managed by a SMC or PTA (%)

School Audit report

Instruction/Administration Departments

DEOs CSBs Schools Independent auditor

20%

40%

60%

Annual

59

6. School grants implemented in accordance with agreed upon procedures (%)

0 10% 30% 60% Annual School Audit report

Instruction/Administration Departments

DEOs CSBs Schools Independent auditor

60

61

Component 1: Increasing access and equity in rural areas

mediate Outcome and Output Indicators Baseline Year 1 Year 2 Year 3 Frequency and Reports Data Collection Instruments Responsibility for Data Collection

er of additional classrooms built litated at the basic education ulting from project intervention ) (Core Indicator)

164

108

Semi- Annual

Sector Report

Planning Dept

Component 2: Improving conditions of teaching and learning

Baseline Year 1 Year 2 Year 3 Frequency and Reports Data Collection Instruments Responsibility for Data Collection Planning and Instruction Depts Sector Report/Audit report

mediate Outcome Indicators

ffective Early Childhood ment model designed and piloted

No

No

Yes

Yes

Annual

MOE report
Report from school health department Audit report

DEOs/Adm dept/auditorW

ren benefiting from de-worming ions (number)

0 300,000 ---300,000 Bi-Annual

MOE/MoHealth

l intervention)

ponent 3: Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities.
Frequency and Reports Data Collection Instruments Responsibility for Data Collection Dept. of Administration/CSA/ MOF

diate Outcome Indicators

Baseline

Year 1

Year 2

Year 3

ied HR database (Civil Service MOE, MOF) developed and ed (yes/no)

No

Yes

Yes

Yes

Annual

Sector report

lopment of a pay and grade scale ers (yes/no)

No

Yes

Yes

Yes

Annual

HR report

Admin. Department/HR CSA, MOF

ilability of annual sector by May of each year (yes/no)

No Yes Yes Yes

Annual

62

School census report

Planning Dept

em for learning assessment at the level (rating scale) (Core

No

No

Yes

Yes

Annual

School census

WAEC/Dept of

DEOs = District Education Officers (local staff providing pedagogic support to schools).

63

64

Annex 4: Detailed Project Description LIBERIA: Fast Track Initiative Grant for Basic Education 1. The CF Development Objective is to increase access to basic education with a particular focus on poor areas, to improve conditions of teaching and learning, and to improve school management and accountability. 2. The CFs objective is in line with the ESPs objectives. The continued relevance and implementation status of activities financed under the CF will be monitored and any perceived need to modify will be agreed during the joint annual sector reviews. 3. The components have been identified to help attain the CF objective, including: Component 1: Increasing access and equity in rural areas (US$15.5 million) Component 2: Improving the conditions of teaching and learning (US$14 million) Component 3: Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities (US$10.5 million) Choice and selection of interventions 4. The focus is on increasing access to basic education by constructing schools. Currently, the approach to school construction is ad hoc and not based on extensive school mapping and needs assessment. Therefore there is a need to develop a coherent infrastructure strategy and build the capacity of the MOE to implement the strategy while at the same time constructing schools. These priority interventions were all noted at the 2009 Education Sector Review and are aligned with the governments key strategies listed in the ESP to rehabilitate and construct furnished primary schools prioritizing communities lacking in schools. 5. As Liberia still faces considerable challenges in addressing access to educational opportunities, especially in rural areas, the CF will prioritize addressing access and equity (component 1) and increasing management capacity (component 3) which will lay the foundation for addressing learning outcomes. Without the required fundamental educational inputs (i.e. schools, textbooks, teachers), it is impossible to focus on improving learning outcomes within three years. UNESCO has provided support for developing a new curriculum and textbooks have recently been purchased under the pooled fund, which are aligned with the old curriculum. In light of this, under component 2 of the CF, several interventions are planned to provide educational inputs (textbooks and school grants) but also to look at ECD and school health to help create a firmer foundation for improving learning outcomes. Currently, USAID is focusing the bulk of their support on teacher training and professional development. Therefore, Component 3 will support the strengthening of a monitoring and evaluation system. Component 1: Increasing access and equity in rural areas (US$15.5 million) Challenge 65

6. The civil war that devastated the country from 1989-2003 caused the education system to break down: schools were destroyed during the fighting or left derelict for so long that they require replacement or extensive rehabilitation, and teachers and those with education system management experience fled, often abroad. CWIQ estimates for 2007 indicate that 63 percent of children aged 6-11 were not in school at the time. In 2006, a free primary education program was launched and enrollment figures increased; however, significant challenges remain largely due to the lack of infrastructure and a dearth of trained teachers. Of the 539,887 primary school students, one-third attends schools in Montserrado, the capital city. In Liberia, location disparities are greater than gender disparities. At present, public schools account for 57 percent of the enrolled primary student population while private and mission schools account for 30 percent and community schools account for 13 percent. 7. In addition, during the 14 years of civil war, many children were prevented from going to school. As a result, the majority of children in primary school are above the official age of 6-11, even though some provision has been for accommodating these youth in a condensed/compressed program referred to as ALP. This program is largely funded by donors. More efforts need to be made therefore to get children of the official age into primary school and those outside of the official age limits to their appropriate level. This should be done by enrolling them in an accelerated learning program if they are significantly older than the primary school age limits and by abolishing the entrance examinations that are keeping children in preprimary classes when they should be in primary schools. 8. Despite the abolition of school fees at the primary school level, household spending on education is almost equal to that of government spending. Uniforms account for the highest percentage of household expenditure on education in urban areas and school fees account for the largest expenditure for rural primary school learners. The large amount spent on school fees, despite the school fee abolition policy, implies that either public schools still charge fees or that parents elect to send their children to private school and therefore are still paying fees. Strategy 9. The governments strategy is to ensure that all children (especially girls, individuals with special needs, street children, children with manageable emotional behavioural disorders and learning disabilities) start school at the right age and complete basic education of an acceptable quality. This would be done through the rehabilitation and construction of classrooms focusing on underserved communities, implementation of a school fee abolition policy, recruiting a greater number of teachers, especially female teachers, and providing improved training opportunities for current teachers, and introduction of a special circumstances scholarship. The CF will finance: 10. Construction of schools. The majority of the financing under this component will go towards constructing schools in rural areas. The construction will entail: construction by contractors of up to 24 primary schools comprising 6 classrooms, administration facilities, latrines and water points; the construction by contractors of up to 20 junior secondary schools; and the construction by communities of up to 16 primary schools with three classrooms in hardto-reach areas of the country. The construction program outlined in the ESP calls for 453 new 66

classrooms a year at the primary school level. This level of construction is feasible given the rhythm of construction of more than 500 classrooms a year achieved over the past few years, combined with a priority being given to community-based contracting for construction in rural and hard-to-reach areas. The CF will finance this activity in parallel with EU (18 schools) and the governments own investment budget (10 schools, 60 classrooms). 11. Under the existing Education Pooled Fund (EPF), the school construction activities were managed by contract management agencies. After a review of the agencies implementation of the construction program, it has become evident that the agencies are not providing adequate supervision of the work. At present, they seem to consider that their role is only to report on progress at the sites. This seems to be an endemic problem that affects all construction projects in Liberia. There has been very little construction of any type in the country for the last 25 years. Consequently, only a handful of Liberian architects and engineers possess the experience of constructing buildings to an acceptable standard. The few who have the desired experience are unlikely to have the capacity to take on additional construction work. It is proposed therefore that a qualified firm of civil works consultants be contracted to manage and supervise the construction of the proposed FTI school-building program in collaboration with local Liberian firms, where possible (see more details in Annex 6: Institutional Arrangements). 12. The Division of Education Facilities (DEF) in the MOE will be in charge of the norms and standards of school construction and the supervision of the construction program in conjunction with the firm to be recruited under the CF. The school designs exist but will be adjusted to consider the needs of children with disabilities. For the hard-to-reach areas, a CDD approach is proposed. During the selection process, 16 remote villages with difficult access and only sufficient primary school age children for a three-classroom primary school (i.e. below 132 children aged 6 to 11) will be selected for a pilot program of community-based primary school construction. Part of the selection process will be the discussion with community members in the selected villages of the communities responsibilities with regard to the construction and maintenance of the schools and only those communities who agree to fulfill these responsibilities will be included in the CF. Before the schools are constructed, the MOE will have to ensure the availability of teachers for the school, especially in light of the fact that teacher deployment and retention to rural areas is a problem. 13. The civil works firm and the director of the DEF will coordinate with the procurement officer as well as the financial comptroller in the Department of Administration in the MOE to ensure all activities are conducted according to World Bank procedures. The DEF (with the assistance of the civil works firm) will be responsible for developing standard plans for primary and lower secondary school construction. These standards will also incorporate modifications to accommodate children with disabilities. In addition, the DEF and the civil works firm will monitor and supervise all construction and write a summary report on a quarterly basis. The Department of Planning and the Minister of Education will be responsible for selecting the school sites based on the EMIS and school mapping. The Environmental Protection Agency (EPA) will be consulted to ensure that all safeguards issues are addressed (environmental impact and resettlement policy framework). Component 2: Improving the conditions of teaching and learning (US$14 million) 67

Challenge 14. The quality of education is largely determined by the quality of teachers. Among the 22,253 primary school teachers, less than 50 percent are trained and, among the so-called trained teachers, many received their training through the provision of a 3-6 weeks crash programs organized by NGOs to keep the education system functioning in the short term. The teachers from these crash training programs have contributed to keeping the system functioning, but in the absence of any follow-up and additional training, the quality of their contribution does not differ much from that of the untrained teachers in the system. In addition, volunteer teachers who are often unpaid or paid by local communities make up a large segment of the current teacher population. 15. In terms of learning materials, after many years, textbooks have recently been procured, bringing the national average pupil-textbook ratio to 2:1 from 27:1 in 2007. These textbooks are linked to the old curriculum. The absence of support through monitoring and feedback during inservice training and/or learning renders the former of limited use. In addition, many Liberian schools lack the most basic teaching/learning materials including chalk. 16. Consultations with the local population around the ESP show that many equate ECD with pre-primary schooling and not with a broader, inter-sectoral approach to providing for the needs of children from conception to primary. To address this issue, the government is currently preparing a National Inter-Sectoral Policy on ECD. Limited examples of cost-effective community-based ECD provision exist in Liberia, although this model is expanding rapidly across rural areas of Africa. Research has shown that investing in ECD improves the efficiency and effectiveness of primary education. Providing young children with quality early learning experiences helps them to transition to primary school at the right age and makes it more likely that they complete primary education. 17. The current pre-primary system does not address the needs of young children, but focuses on preparing children over age 6 for entrance exams to grade one of primary school. There is no specialized training for pre-primary teachers, almost half of whom are unpaid volunteers, no minimum quality standards, and the curriculum is academic and teacher-directed. Supply is concentrated in the urban areas, where a large unregulated private sub-sector of pre-primary institutions exists. Although the GER is 141 percent, the net enrollment is 38 percent because the majority of children are over the age of five. 18. Poor health and nutritional status of children has a serious impact on their enrollment, attendance and performance in school. Their health and nutritional status and their ability to be taught and to learn are determined not only during their school years but also during fetal development and in early childhood. For example, many school-aged children in Liberia are infected with many different types of worms. It has been shown that children infected with worms generally perform poorly in tests of cognitive function. Improving the performance of the education sector is therefore dependent on the current and past health and nutritional status of its student body.

68

19. Another health-related concern is HIV/AIDS. According to the 2007 DHS report, 0.9 percent of 15-to 19-year-olds carry HIV. This is very worrisome, especially as about 33 percent of students at primary school level are 15 years and older. An HIV/AIDS policy and strategic plan have been developed for the education sector and its implementation is urgently needed in order to minimize the possibility of an increase in the HIV/AIDS rate in the future. Strategy 20. The governments strategy is to improve education quality and ensure greater efficiency and cost effectiveness in basic education schooling. This will be done through the development of a high-quality curriculum, ensuring the availability of teaching and learning materials including textbooks in core subjects, improving the quality of teachers, enforcing a repetition policy, raising awareness of HIV-AIDS including testing and sex education in the curriculum, supporting child-friendly ECD programs with a focus on vulnerable and disadvantaged children, and improving the quality and usefulness of assessment. 21. The CF project would support the following: 22. Provision of learning materials. Currently, USAID and EU are addressing the demands for teacher training. Therefore the project will finance the supply of textbooks for students in basic education (grades 5-9) and a set of teacher guides. The textbooks will be aligned with the new curriculum and will be purchased through international competitive bidding. A total of 1,000,000 textbooks, and 20,000 guides would be purchased. 23. Technical support to improve the implementation of school grants [subgrants given to school]. This project will be used to finance activities that will help the government to improve its current initiative. It will support technical assistance to assist in the development of school grant guidelines including allocation criteria, financial management rules, and roles and responsibilities of the stakeholders involved. The project will finance the scaling up of current school grants based on a formula comprising school size and hardship (disadvantaged vs. more well-off schools). The school grants will cover the operating costs of the schools and the average school grant will be in the order of US$500-1,000 over a two-year period. UNICEF supported the MOE with the development of a school fee abolition policy which addresses many of these issues but is currently awaiting adoption and implementation. For the junior secondary schools, a grant will be attributed using a different formula as the students are still paying school fees. 24. The funds for the school grants will be released subject to (i) development of school grant guidelines; and (ii) verification that at least 400 of the selected primary and junior secondary schools have met the eligibility criteria to receive grants. 25. Individual schools will be transferred the funds upon successful completion of a school grant agreement including (a) opening of bank account, (b) the establishment of a school management committee (SMC) and (c) the identification and training of staff to take up responsibility for the management of funds transferred. The school grant agreement should include: (i) that the grant be provided by MOE on a non-reimbursable grant basis; (ii) the obligation of the school to carry out the grant in accordance with the School Grant Guidelines and the PIM, as appropriate; (iii) the obligation of the school to maintain adequate records of 69

resources and expenditures, in accordance with sound accounting practices; (iv) the requirement that goods, works and services to be financed from the proceeds of the grant will be procured by the school in accordance with the procedures in the Grant Agreement and as further specified in the School Subgrant Guidelines and the PIM; (v) the right of the MOE to inspect by itself, or jointly with the World Bank, if the World Bank so requests, the goods, works and services financed by the grant and any relevant related records and documents; (vi) the right of the MOE to suspend or terminate the right of the school to use the proceeds of the grant upon the failure by such school to perform any of its obligations under the school grant agreement; and (vii) the obligation of the school to act in compliance with the Anti-Corruption Guidelines. 26. Support to early childhood development. This activity will support the development of an ECD strategy and strengthening of the system through the design and implementation of a costeffective ECD model for rural areas. The CF will support up to 10 community-based ECD centers in upgraded rural markets and low-cost structures in villages through the provision of equipment and play/learning materials, training for locally-recruited educators, and minor renovations. Sites will be located in rural areas with strong community demand and sufficient numbers of underserved 3-5 year old children. The CF also will assist other donor partners (OSI/Soros, Plan International, UNESCO, Save the Children) involved in strengthening the ECD system by supporting the development of quality standards and guidelines, child-centered curriculum, and teacher training and certification frameworks. 27. Support to school health. This activity will finance the development of learning materials (life-skills student modules for grades 1-9 that will include health issues such as reproductive health and waterborne diseases), training of teachers (3,000) and de-worming of 300,000 primary students in eight counties (Bomi, Bong, Gbarpolu, Grand Bassa, Grand Cape Mount, Lofa, Margibi, and Montserrado) that are not being covered by the other partners. The school health department in the MOE will implement deworming in schools in counties that do not have an NGO that is working in school health. 28. A rapid appraisal of the eight counties will be undertaken to determine the location, prevalence, and species of worms. This will be followed by the development or adaptation of training materials, sensitization of the community and training of teachers to implement the deworming. The training will be conducted in stages, the first being a two-day training of 60 master trainers (4 from each county). This training will be provided with the help of some technical assistance. These master trainers will train both district level trainers and the teachers at the same time over a period of three days. Component 3: Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities (US$10.5 million). Challenge 29. Currently, the MOE does not have a formal decentralization policy as its main priority has been on providing a minimum level of service provision. However, this lack of a decentralization policy means that various levels of the education system are not aware of their responsibilities. In addition, most personnel lack clear job descriptions and therefore have a limited understanding of how they fit into the overall framework and what duties they are to 70

perform on a day-to-day basis; this is especially true for the local levels. This lack of clear job descriptions also makes it difficult to effectively supervise employees. 30. On the whole, the Ministry suffers from weak management capacity, especially at the middle management level which is the vital link to make sure that policy decisions taken by senior management are related and implemented by those at the lower levels. Numerous capacity building interventions have taken place but in an ad hoc manner with limited attention to what and how capacity has been transferred. In addition, with a lack of clarity on job descriptions and responsibilities, it is difficult to adequately design capacity building programs. 31. The paucity of monitoring visits to schools and an almost total absence of evaluations of the findings from these visits contribute to weak quality of schools. DEOs collect little or no data on the schools for which they are responsible and lack standardized reporting formats to streamline reporting. When DEOs do visit schools, they have a limited understanding of what information they are to collect and mainly focus on collecting figures and numbers and do not report on the quality of teaching and learning going on in the schools. 32. In addition, the governance structure in schools is not very clear. Many schools do not have PTAs or SMCs at all or have barely functioning PTAs/SMCs even though they are required by the Education Law. As a result, schools and their directors are not monitored and evaluated regularly and there is limited parental and community involvement in school matters. Strategy 33. The governments strategy is to develop the institutional capacity for management at central, regional and local levels, and to increase planning and management capacity of the Ministry of Education. This would be done through the implementation of the national civil service reform strategies, strengthening planning and budgeting capacity and procedures, strengthening of the current EMIS system, developing capacity and mechanisms for effective monitoring, evaluation, and quality assurance, developing leadership capacity through shortterm and long-term professional development and training programs, empowering and training County and District Education Officers to supervise teachers and ensuring efficient school management. 34. Under this component, the CF project will finance the following set of activities: 35. Support to institutional reform with a focus on monitoring and evaluation. The CF support will strengthen the MOE structures both at central and school levels. At the central level, the CF will support (a) the establishment of a Project Support Team (PST) comprising a project coordinator, and financial management and procurement specialists to assist with the day-to-day management of the CF project. The PST will be located under the MOEs Department of Planning and (b) capacity building for the Departments of Planning, Administration, and Instruction. The CF will cover operating and implementation costs related to the project including contractual staff salaries, equipment, and auditors. 36. At the school level, the CF will support training and technical assistance for monitoring and evaluation at all basic education schools. This will include the development of assessment tools at the school and classroom level as well as the training of DEOs and school directors for 71

monitoring and tracking of school level data, including attendance of teachers and students, parental and community involvement, and instructional time. Also, in conjunction with the strengthening of the governments school grant system in component 2, the CF will support the strengthening of PTAs/SMCs. 37. The CF will also support training of DEOs and teachers on the use of learning assessment instruments as a monitoring tool for early grade reading and math performance. The M&E work will be build upon the current EU-funded project that is currently providing support to M&E. 38. At the system level, the CF will provide technical assistance for the development of a national assessment test for grades 4 and 7, which will focus on math and reading comprehension. 39. Strengthen personnel and payroll management. The CF will complement the ongoing TA support provided under the civil service reform project under the World Banks Poverty Reduction and Economic Management Department to reinforce the personnel and payroll management. This includes managing of IFMIS by MOE, skills analysis for the setting up of a pay and grade scale for teachers according to experience, qualifications, and performance. The CF will also support studies and surveys to evaluate the motivation and conditions of teachers including recommendations for regular and timely payment of salaries in remote and hard to reach areas as well as deployment strategies to attract teachers to these areas.

72

Annex 5: Project costs and proposed financing LIBERIA: Fast Track Initiative Grant for Basic Education

2010 (US$m) Component 1: Improving access and equity in rural areas Component 2: Improving conditions of teaching and learning Component 3: Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities Total

2011 (US$m)

2012 (US$m)

Total (US$m)

1.0

7.3

7.2

15.5

1.2

6.4

6.4

14.0

3.8

3.2

3.5

10.5 US$40.0 million

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Annex 6: Institutional Arrangements LIBERIA: Fast Track Initiative Grant for Basic Education 1. The Senior Management Team (SMT) in the MOE is the executive body of the MOE. It consists of the Minister of Education; Deputy Ministers for Administration, Instruction, and Planning, Research and Development; the Assistant Ministers, the Legal Counsel, and the MOE Financial Comptroller. The SMT will be charged with the overall policy direction as well as with the key implementation decisions regarding the sector. The SMT delegates implementation to the relevant assistant ministers/departments as necessary. The SMT will work in close collaboration with the PFMU of the MOF, particularly in the area of financial management and disbursement process. These structures have been functioning for the past year through the implementation of the education pooled fund. Over the course of CF implementation, it has been agreed to transfer financial management responsibilities to the MOE subject to: (a) the bureau of GACs recommendation and (b) a favorable World Bank financial management assessment. 2. The Education Sector Development Committee- Executive Board (ESDC-EB) will serve as the oversight body to oversee the implementation of the ESP. The ESDC-EB will be chaired by the MOE. This body will provide oversight of the policies laid out in the ESP by providing a forum for policy dialogue and decision-making at the macro level. It will include representatives from the Ministries of Finance and Planning, as well as donor representatives. The ESDC-EB will meet quarterly and will report to the SMT of the MOE. 3. The Education Sector Development Committee (ESDC) consists of all education stakeholders such as implementation partners and civil society organizations. This will be a forum for education stakeholders to be informed about education policy decisions and to report on the progress of their relevant projects. At this level, Technical Working Groups established by the Ministry will provide updates on their work. 4. A Project Support Team (PST) within the MOE will be set up to assist with the day-to-day CF implementation. Additionally, with regard to capacity building in the MOE, the CF will support the three Departments of Administration, Instruction, and Planning to strengthen sector management to improve efficiency and accountability in the allocation and execution of external resources; develop transparent planning and monitoring systems to achieve national education goals; improve coordination, policy dialogue and utilization of domestic and external resources. The PST will fall under the Department of Planning. 5. Annual sector reviews involving all development partners and the government will take place. During the annual review, one of the items discussed will be the implementation status of CF activities. Annual reports will be presented to spell out achievements, challenges, lessons learned and the way forward, including any recommendations on modifications. 6. The Project Financial Management Unit (PFMU) is a unit established within the MOF for the provision of financial oversight and technical support in financial management and reporting to selected externally funded development initiatives in Liberia. It will be responsible for all disbursements and produce regular financial reports and will provide on-the-job training to 74

the financial management specialists hired under the CF project. At mid-term, FM responsibilities would be transferred to the MOE subject to (a) the bureau of GACs recommendation; and (b) a favorable World Bank financial management assessment. Implementation arrangements by component Component 1: Increasing access and equity in rural areas (US$15.5 million) 7. Under this component, specific responsibilities will be as follows: The proposed infrastructure component of the CF will include the construction of primary and junior secondary schools in the rural areas of the country. Some small remote rural primary schools will be constructed by communities who will be provided with technical assistance to help them manage the construction process. The larger primary schools and the junior secondary schools will be constructed by contractors with a high level of supervision from competent and experienced civil works consultants. Given the problems seen during the visits to the schools being constructed under the pooled fund program caused by a lack of understanding both of the documents and of good building practice on the part of both the supervisors and the contractors, a different approach will have to be taken in the proposed school construction program to the supervision and management of the construction of the schools. 8. It is proposed that a qualified firm of civil works consultants (selected through an open and competitive process) is employed to both manage and supervise the construction program for all types of schools. The consultants should however not only supervise the construction of the schools but during the construction process they should use and train local engineers and architects in the management and supervision of the construction program so that at the end of the CF there will be a number of competent Liberian civil works professionals capable of managing and supervising similar projects in the future. 9. The civil works consultants will provide one senior architect with extensive experience of the design and construction of educational facilities in developing countries in the tropics and of the management of rural construction projects to act as school construction manager and to provide technical assistance to the DEF during the implementation of the project. The consultants will also provide: two architects or engineers to carry out regular and frequent supervision and training on the construction sites and one architect or engineer to be resident on each construction site for the duration of the construction together with whatever back-up staff are necessary to prepare the necessary documentation and to provide other necessary services. 10. Prior to the start of the construction program, the firm will carry out the necessary preparation work and documentation for the project including: carrying out of site surveys for all school sites to be included in the program, including the schools to be constructed by communities;

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preparation of site plans for all school sites showing the site layout, access, levels, any significant features, the situation and levels of all of the buildings and, for the junior secondary schools especially, any site works; preparation of working drawings for all of the buildings and other facilities; preparation of explanatory details together with a construction handbook for all of the facilities to be used by site supervisors, communities and contractors to assist them in the construction process; preparation of schedules of materials for all facilities to assist contractors and communities in the pricing and ordering of materials; and preparation of maintenance handbooks to be used by schools and communities in maintaining their schools once they are complete.

11. The consultants contract will clearly set out their duties and responsibilities in managing and supervising the construction program and also state explicitly the following: the role of the consultants in using and training local architects and engineers in the management and supervision of the project; the duties and responsibilities of these supervisors; and their role on site in detail. Before construction starts, the consultants will hold training workshops with the supervisors to ensure that they understand the drawings and other contract documentation and can assist the contractors in the construction process. These workshops should include the construction of a typical primary classroom built largely by the supervisors themselves. This will give the supervisors hands-on experience and a real understanding of how the buildings are to be constructed. The classroom will also then be available for inspection by the contractors and communities so that they too have a clearer understanding of how the buildings are to be constructed and the standard of construction that they are expected to achieve. 12. The consultants will prepare a construction handbook for the use of the supervisors (and of the contractors and communities) on site clearly setting out their roles and responsibilities and the details of the construction process. The work of the supervisors on site will have to be closely monitored by the civil works firms staff and further training of supervisors (and contractors and communities) will be carried out on site as and when necessary. Technical assistance to the Division of Educational Facilities (DEF) in the MOE 13. USAID has been providing DEF in the MOE with technical assistance in the form of an architect who was assisting DEF with the monitoring of the current school construction program and with other services. This architect proved to be invaluable to DEF but unfortunately his contract finished at the end of November 2009 and he will not be replaced. 14. The EU is providing some technical assistance to DEF in the form of an architect under the European Commission Support to Education in Liberia (ECSEL) project but his main responsibility is the management of the school construction program that is being funded by the ECSEL project. 76

15. There is an urgent need however to develop the capacity of DEF to enable the division to carry out the tasks required of it. The Construction Manager provided by the civil works firm of consultants will therefore be based in the DEF and, as well as managing the construction of the schools funded under the project, he/she will be required to assist the DEF in: Monitoring the school construction program that will be funded by the CF and any other construction program that might be started during the duration of the CF. Developing a long-term plan for the reconstruction of existing and the construction of new primary, junior secondary and senior secondary school facilities after the completion of the project. Establishing space and quality standards and design briefs for educational facilities at all levels for the use of architectural and engineering consultants in the designing of these facilities. Procuring more effectively and efficiently the services of architectural and engineering consultants to design, document and supervise construction and to procure, if necessary, the services of construction firms to carry out the construction of both large and small projects. This will include assistance with the preparation of bidding documents and training in the evaluation of bids, etc., and will be carried out in co-operation with the Procurement Division. Managing more efficiently and effectively the work of consultants engaged to both design and supervise construction projects for the Ministry and in monitoring both their work and the work of contractors. Setting up a database of construction costs for educational facilities that can be easily managed and updated. Setting up and managing an educational facilities register for the whole country with the co-operation of the EMIS Division. Setting up an effective system for the management and maintenance of all of the Ministrys facilities. Establishing, if necessary, DEF offices in the three regions of the country.

He/she will also train DEF staff in: The use of computer-aided design and other software currently used in the building industry and advise the MOE on the provision of hardware and software. The management and supervision of small construction projects for the MOE.

Component 2: Improving the conditions of teaching and learning (US$14 million) 16. Specific responsibilities will be assigned as follows by sub-component: 17. Provision of learning materials (textbooks and teacher guides). The Divisions of Primary and Secondary Education under the leadership of the Assistant Ministers of Primary and Secondary Education are responsible for the selection of books and reading materials for the primary and junior secondary levels. The Department of Administration would be responsible for the procurement and delivery arrangements. All materials would be packaged for the individual school and would be delivered to the schools. To ascertain whether the 77

learning materials purchased are actually arriving in schools being effectively used in classrooms, a technical audit will be done at the start of the project, and again at the end of the second year of implementation. 18. Technical support to improve the implementation of school grants. Technical Assistance will be provided in line with World Bank procedures. The Departments of Planning and Administration in the MOE will handle the planning and procurement arrangements. The CF will support technical assistance for the development of school grant guidelines. In Year 2, the CF will support the scaling-up of the school grants. The grant amount received by each school will be published in the local newspaper and be communicated via radio. The funds for the school grants will be released subject to (i) development of school grant guidelines; and (ii) verification that at least 400 of the selected primary and junior secondary schools have met the eligibility criteria to receive grants. Individual schools will be transferred the funds upon successful completion of a school grant agreement including (a) opening of bank account, (b) the establishment of a school management committee (SMC) and (c) the identification and training of staff to take up responsibility for the management of funds transferred. The school grant agreement should include: (i) that the grant be provided by MOE on a non-reimbursable grant basis; (ii) the obligation of the school to carry out the grant in accordance with the School Grant Guidelines and the PIM, as appropriate; (iii) the obligation of the school to maintain adequate records of resources and expenditures, in accordance with sound accounting practices; (iv) the requirement that goods, works and services to be financed from the proceeds of the grant will be procured by the school in accordance with the procedures in the Grant Agreement and as further specified in the School Subgrant Guidelines and the PIM; (v) the right of the MOE to inspect by itself, or jointly with the World Bank, if the World Bank so requests, the goods, works and services financed by the grant and any relevant related records and documents; (vi) the right of the MOE to suspend or terminate the right of the school to use the proceeds of the grant upon the failure by such school to perform any of its obligations under the school grant agreement; and (vii) the obligation of the school to act in compliance with the Anti-Corruption Guidelines. An independent auditor will be recruited under the CF to conduct spot checks on school grants and teacher attendance on a random and representative sample of schools on a quarterly basis for each year of CF implementation.

19.

20.

21.

22.

23. Support for early childhood development. The ECD activities will be implemented by the ECD/Pre-primary Unit in the MOE in collaboration with partners including OSI/SOROS Foundation, Plan Liberia, Save the Children, UNICEF, and UNESCO. A new national, intersectoral ECD policy is under development and will provide a framework for the different actors working on ECD. The National Inter-Sectoral ECD Committee, which is guiding the ECD policy development and implementation, will help ensure alignment between MOE activities and other policies and programs for young children in Liberia.

78

24. Development of a community-based ECD model in rural markets and villages to reach 3-5year-olds who do not have access to pre-primary schools. The MOE will work with the MOHSW on designing and implementing the community-based ECD centers in rural areas. Once the design is finalized, potential sites in rural areas will be identified by the MOE, in cooperation with the CEOs, DEOs, and local implementation partners, based on a quick needs assessment of unmet need for ECD and community demand in rural areas. In up to 10 selected sites, traditional leaders, local government officials, parents, and other stakeholders will be sensitized on the importance of the early years and supported in the creation (i.e. minor upgrading of existing markets or vacant classes, assembly of low-cost structures, provision of equipment and play/learning materials) and management of cost-effective, quality ECD centers. Communities will be responsible for the recruitment of educators. NGOs, with capacity for supporting community mobilization and development of ECD in rural areas, will provide short training to the educators and ongoing technical support. To assess the cost-effectiveness of the model, and its potential to be scaled up, the MOE will oversee the monitoring and evaluation of these sites. These ten community ECD centers will be located near the community-built primary schools to facilitate successful transition of students between early childhood education and primary education. 25. Systems development. In addition, the CF will support systems development to improve the quality of ECD provision and improve childrens learning and development outcomes. The MOE, with support from partners (OSI/Soros Foundation, UNICEF and UNESCO), will develop and disseminate the necessary tools to sustain a quality ECD system, including: (i) minimum program and pedagogical standards and operational guidelines for ECD provision; (ii) a new curriculum focused on play-based learning based on indigenous practices and informed by sound principles of child development; (iii) guide to development of play-based teaching and learning support using low-cost, locally-available materials; and (iv) teacher training and certification frameworks to support the development of ECD professionals. 26. Support for school health. The school health activities will be implemented through a joint effort of the MOE, the MOHSW and partners such as UNICEF, Africare and Plan. The CF will target about 300,000 children in eight counties (Bomi, Bong, Gbarpolu, Grand Bassa, Grand Cape Mount, Lofa, Margibi, and Montserrado) that are not being covered by the other partners. The school health department will implement de-worming in schools in counties that do not have an NGO that is working in school health. Generally, execution of all the activities will fall under the responsibility of the school health department of the MOE. 27. These drugs will be stored by the MOHSW and given out to either partners (with the permission of the MOE) or directly to the MOE. The MOE will then send the drugs either directly to the schools that do the de-worming with information to the CEOs and the DEOs or to the DEOs who then sends them to the schools. Due to logistic difficulties, and the capacity within the MOE, bi-annual de-worming is being proposed for 300,000 children in 8 counties. 28. For the de-worming, a rapid appraisal of the eight counties will be undertaken to determine the location, prevalence, and species of worms. This will be followed by the development or adaptation of training materials, sensitization of the community and training of teachers to implement the de-worming. The training will be conducted in stages, the first being a two79

day training of 60 master trainers (4 from each county). This training will be provided with the help of some external assistance. These master trainers will train both district level trainers and the teachers at the same time over a period of three days. 29. Life-skills, population, family life education. With assistance from partners, the MOE produced about 1,000 copies of the Teachers guides for life-skills, population/ family life education. The school health division will be responsible for developing and producing lifeskills student modules for grades 1 9 (9,000 copies) taking into consideration existing material, developing and printing a national school health and nutrition policy (500 copies) and training 3,000 teachers in primary and junior secondary schools from the 8 counties. The same 60 master trainers for de-worming will be retrained as life skills master trainers to cascade training at country and district levels. Component 3: Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities (US$10.5 million) 29. Under this component, specific responsibilities will be assigned as follows by subcomponent: 30. Support for institutional reform with a focus on monitoring and evaluation. At the central level, a Project Support Team (PST) for the day-to-day management of CF activities and additional staff to support the three Departments of Administration, Planning, and Instruction will be recruited. The recruitment of the project coordinator and two procurement specialists for the PST will be an effectiveness condition. The remaining support staff of the PST including financial management specialists will need to be recruited within two months after effective date (dated covenant). The school level activities will fall under the Department of Planning, the directorate of primary education, and the county education officers. The PST will assist in the search for, and contracting with, the external technical assistance as needed. The PFMU will coordinate all the payments of consultants or consulting firms/training institutions that may be hired to conduct training and studies. At the system level, the Bureaus of Primary and Secondary Education and WAEC will be assisted with the development of a national assessment test instrument to assess learning achievements, with a particular focus on reading proficiency and numeracy, in grades 4 and 7. 31. Personnel and payroll management. Technical Assistance to conduct the skills analysis will be provided following World Bank procedures, with the Departments of Planning and Administration within the MOE handling the planning and procurement arrangements. The studies and surveys will be conducted in line with World Bank procedures, with the Department of Planning and the Department of Administration handling the planning and procurement arrangements, and the relevant departments providing technical inputs.

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Annex 7: Financial management and disbursement arrangements LIBERIA: Fast Track Initiative Grant for Basic Education Introduction 1. In accordance with the Financial Management Practices Manual issued by the Financial Management Sector Board on November 3, 2005, a financial management assessment was carried out to assesses the adequacy or otherwise of the financial management arrangements for managing the EFA FTI Fast Track Initiative Catalytic Fund by the MOE. The objective of the assessment was to determine whether: (a) the MOE had adequate financial management arrangements to ensure project funds would be used for purposes intended in an efficient and economical way; (b) the projects financial reports will be prepared in an accurate, reliable and timely manner; and (c) there are procedures and processes to safeguard the assets of the project. The financial management assessment was carried out by the Bank financial management team and included interviews with key staff (including EU Financial Management Specialist-, Deputy Financial Comptroller and the Comptroller) at the MOE. The assessment also drew upon experience with ongoing projects whose financial management is managed by the PFMU of the MOF.
2.

Implementation Arrangements 3. Due to weak financial management capacity at the MOE currently and the need to ensure an effective and efficient management of resources, it has been agreed that the existing PFMU at the MOF will have the responsibility to manage funds under the CF. At mid-term and thereafter it would transfer this responsibility to the MOE subject to: (a) the bureau of GACs recommendation; and (b) a favorable World Bank financial management assessment. The PFMU is staffed with a team of competent financial professionals with the required experience and qualifications acceptable to the World Bank. The PFMU team will be responsible for the day-to-day management of project finances, in accordance with the project financial procedures manual already developed for ongoing IDA projects. The PFMU will also have responsibility for project financial reporting, using already agreed interim un-audited financial statements (IFR) formats in use for the other World Bank projects as may be modified from time to time.
4.

The working relationship and the respective responsibilities between the PFMU and the MOE will be outlined in a Memorandum of Understanding (MoU) to be signed between the parties prior to disbursement.
5. 6.

In general terms, under the MoU the PFMU will have the following responsibilities: i. Operate an efficient financial management system acceptable to the World Bank; ii. Train the two project accountants at the MOE in World Bank financial management procedures to ensure that they will have obtained sufficient experience to transfer FM responsibility to the MOE during the course of the project or at completion subject to favorable FM re-assessment of MOE; 81

iii. Establish effective accounting and transaction processing procedures to support the

payment of all eligible expenditures;

iv. Provide internal audit services and periodically review the control environment to

ensure that policies and procedures are being complied with;

v. Prepare, on a timely basis, quarterly financial reports and any other financial reports

as may be requested by the World Bank; and vi. In consultation with the MOE, ensure that the financial statements of the project are audited and conform to the financial covenants as per the Grant Agreement. Country Issues A PEMFAR were conducted in 2007 and included an analysis of Liberias PFM strengths and weaknesses. The findings from the PEMFAR showed that the government has taken considerable actions to improve public financial management since 2006. Government revenues have increased several folds since 2002/03, and expenditure controls have been strengthened through the establishment of the cash management committee and the interim commitment control system. However, the government still needs to address weaknesses in its financial management systems, specifically within the areas of the legal and regulatory framework; internal and external audit functions; procurement and concessions; budget planning, formulation and execution; accounting, recording and reporting; human resources and payroll management; cash and debt management; and aid management.
7.

The governments developmental and poverty reduction priorities are anchored in the PRSP which is generally aligned with the budget although there is no formal poverty reducing expenditure tracking systems. The budget cycle is coordinated by an inter-ministerial Budget Committee and spending ministries are consulted early in the budgeting process. All revenues are by law deposited into a revenue bank account at the Central Bank and expenditure from this account is strictly in accordance with annual cash plans and allotments. However, the majority of donor expenditure is project based and not executed through the government budget.
8.

The country lacks a sufficient number of qualified accountants to serve the public and private sector. A PFMU provides centralized project financial management for donor projects. Although previously an international firm was providing technical assistance for procurement at the MOF (where the PFMU is located), their contract has now ended. The PFMU is staffed with qualified consultants with experience in managing donor-funded projects. Fiduciary risks on financial management for donor-funded projects are mitigated by the use of the PFMU, which has internal controls and procedures for financial management and practices acceptable to the Bank.
9.

The lack of qualified PFM personnel is a major constraint to implement PFM reforms to address the weaknesses identified in the PEMFAR. At the moment key agencies such as the MOF are using external experts under the Governance and Economic Management Program (GEMAP) and World Banks technical assistance provided to the Resource Management Unit.
10.

The government is making progress in PFM reforms. The Cabinet approved the Internal Audit strategy in June 2008 that will see the establishment of an internal audit cadre and a charter clarifying the roles and responsibilities for internal controls. The MOF has moved from a
11.

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single entry recording system to an interim accounting system that is now used to prepare budget outturn reports. The interim system provides a foundation for migrating to IFMIS that will eventually handle all the accounting and recording for the consolidated funds with arrangements to capture and report on donor-funded projects. A PFM Law and its enabling regulations and manuals are being prepared in order to further strengthen the legal and regulatory framework. In the area of procurement, the Public Procurement and Concessions Commission (PPCC) Act came into force on January 16, 2006, as Liberias first significant step towards subjecting public sector contracts to transparency and meaningful competition. These measures in financial management and procurement will put in place appropriate structures and processes to promote transparency and accountability and mitigate the fiduciary risk in utilizing public funds both at the country and project level.
12.

Project Risk Assessment and Mitigation The Risk Assessment and Mitigation table below shows the results of the risk assessment from the Risk Rating Summary. This identifies the key risks that MOE may face in achieving the CF objectives and provides a basis for determining how they should be addressed.
13.

Type of Risk

Risk Rating

Risk Mitigating Measures/Remarks

Residual risk rating

Conditions for Negotiation or Effectiveness (Yes/No)

Inherent Risk Country Level The PEMFAR assessment conducted in 2007 identified weakness in the country financial management systems with specific reference to internal audit, external audit, legal and regulatory framework, budgeting , procurement and concession and cash and debt management.

This risk is being addressed through the various support by the Bank and other donors to enhance the public financial management system through the various financial management reforms the preparation of the financial management act, public procurement act, setup of cash management committee, interim commitments control systems, and budget committee.

No

Entity Level Though the MOE is currently implementing the pooled fund (UNICEF/Soros) for which the Bank (though the EPDF) provides financial and technical support, the MOE does not have hands-on experience in managing WBfunded projects; it has inadequate capacity to

The PFMU shall be used to support the project by providing financial management services to MOE. To this end MOE will execute a MoU with PFMU for these services in a manner similar to the education pooled fund. Additionally, the oversight role of the Bank through prior review, No-

No

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Type of Risk

Risk Rating

Risk Mitigating Measures/Remarks

Residual risk rating

Conditions for Negotiation or Effectiveness (Yes/No)

implement large projects may affect the achievement of the overall objective of the EFA FTI CF and the monitoring and evaluation process.

Objection process and technical and financial management supervisions could help reduce the risk. FM challenge at school level will depend on identifying trainable staff to be provided requisite training to take on FM responsibilities for reporting, using appropriate templates etc. The identification of trainable staff, provision of training and completion of the report/data collection template will be a condition for disbursing the school grants planned under the CF.

Project Level Given the project amount, and MOEs first opportunity to use Bank procedures, there is the risk associated with inexperience and lack of coordination and direction amongst the divisions and operatives of MOE.

The PFMU will provide financial management services to MOE in order to minimize fiduciary risk. Two FM experts recruited by the MOE will be trained by PFMU during the first year of implementation to familiarize them with WB procedures. The EU project will also assist in developing capacity to implement PFM policies.

No

Overall IR Control Risk Budgeting The current weaknesses in the budget and budgetary control process and procedures at the MOE will increase the challenges in the preparation, execution, submission and monitoring of realistic annual work plans and budget.

This risk could be mitigated through documenting the process of preparation, execution and monitoring of the annual work plan and budget in a project implementation manual coupled with the successful implementation of EU financial management assistance planned for MOE, if it is successful.

No

Accounting a) Inadequate staff numbers may affect accurate recording of

Accounting for the CF could be done at the PFMU under appropriate arrangements. Staff at MOE would

No

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Type of Risk

Risk Rating

Risk Mitigating Measures/Remarks

Residual risk rating

Conditions for Negotiation or Effectiveness (Yes/No)

financial transactions of the MOE and the project.

limit their involvement to ensuring properly approved requests are made to PFMU for payment transactions. MOE would, through the EU strategic financial management development plan, identify trainable staff at school levels to train them to provide limited accounting services. In the long term, the MOE will recruit qualified accountants for the subsidiary level management in line with the Ministrys strategic plans, which are being formulated.

b) The risk will be even more severe at the school level where there are no FM staff.

c) With the continued increase in the projects managed by the PFMU, their current staffing may affect prompt disbursement of funds to project suppliers, contractors and subimplementing partners as well as submission of both the annual audit report and IFRs. Internal Controls/Internal Auditing A functioning unit is yet to be established. Processes, procedures, rules and regulations may not be followed by operatives and sometimes even management staff.

The World Bank has just completed an operational review. Based on the outcome of this review, additional staffs will be employed to strengthen the Unit. The AfDB is funding a second project accountant for the PFMU.

Staffing, quality of work of the Internal audit function at PFMU and possible conflict between the Unit head and the Internal audit department may affect the internal audit deliverables.

The PFMU will provide a manual of finance and accounting processes and procedures to be followed by MOE in conducting financial transactions of the project. The PFMU will also provide Internal Audit services through reviews and reports on breaches of the Public Financial Regulations and PFMU procedures manual. The PFMU has instituted periodic internal meetings to help resolve any internal conflicts that could affect its work. The periodic reports issued by the IAU will be discussed within PFMU before submission to implementing agencies. In addition, the effectiveness of the

No

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Type of Risk

Risk Rating

Risk Mitigating Measures/Remarks

Residual risk rating

Conditions for Negotiation or Effectiveness (Yes/No)

internal audit function at PFMU will be assessed regularly by the Bank FMS during supervision missions. Funds Flow Given the provision of grants to schools and the capacity gaps at the lower management levels, there could be increased delays in processing withdrawal applications arising from delayed delivery of relevant expenditure information from schools, which could affect project implementation. H The MOE will, in association with PFMU, develop data capture templates simple enough for trained staff at school levels to complete, consolidate and submit to the center for delivery on time to PFMU to prepare withdrawal applications on time to be able to service project implementation. The identification of trainable staff to undertake FM services at school levels, preparation of appropriate data capture and reporting templates and training of identified persons will be conditions for the disbursement of the schools grants to the individual schools. Technical assistance will be provided under the CF to strengthen the process including the development of a school grant guidelines (allocation criteria, FM rules, formalization of roles and responsibilities of all stakeholders involved). School grant funds will be released subject to (a) development of school grant guidelines; and (b) verification that at least 400 of the selected primary and junior secondary schools have met the eligibility criteria to receive grants. S No

Financial Reporting Quality and timeliness in submitting IFRs and other reports.

The PFMU operates an efficient computerized system (Sun Accounts) capable of generating reliable reports. The use of simplified templates for data collection at school levels will facilitate prompt feedback to PFMU.

No

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Type of Risk

Risk Rating

Risk Mitigating Measures/Remarks

Residual risk rating

Conditions for Negotiation or Effectiveness (Yes/No)

Auditing A weak audit environment is prevalent in Liberia and this might affect the quality of audit report received and hence their acceptability to the Bank. The identified risk will also affect the audit report submission in the financial covenant.

Standard IFR formats being used for ongoing IDA projects will be adopted for the CF grant. Terms of Reference for the external auditors have been prepared by PFMU, on behalf of MOE, for the review of the Bank and were discussed and agreed upon during negotiations. Audit ToR will provide for regular/periodic management review of the school grants program. To ensure timeliness of audit compliance, the procurement process for engaging acceptable auditors will commence four months after effectiveness.

No

Overall Risk Rating

Implementation of recommendations M Modest L Low

H High

S Substantial

Strengths and weaknesses of the MOE Financial Management System 15. The MOE is responsible for management of the education sector in Liberia. It is headed by a Minister, who is assisted by a number of Deputies for administration, planning, and instruction. Strengths 16. The MOE Accounting & Finance Department is headed by a Financial Comptroller, a professionally qualified accountant, who is assisted by a deputy Comptroller, a budget analyst and two graduate accountants. The two graduate accountants have been exposed to some of the procedures employed by the PFMU and could take responsibility for document preparation on the side of MOE. They have been engaged on the operation of the education pooled fund, which is managed by PFMU and administered by UNICEF.
17.

Weaknesses 18. Some of the weaknesses identified in the MOE include:

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(i) Policies and procedures have not been documented in a manual. (ii) The MOE is in the process of acquiring computer software to assist its accounting and finance function. The EU is financing this facility as part of assistance for financial management reform in the MOE. After the acquisition and installation, staff will be trained to appropriate proficiency levels for them to effectively utilize the facility. (iii) The MOE Finance Department does not have any experience with Banks FM and disbursement procedures. To this end, the CF will finance the recruitment of two FM specialists to be trained in WB procedures by the PFMU in the MOF. (iv) The MOE does not have a functioning Internal Audit Unit (IAU). The MOE has yet to recruit staff for the establishment of an IAU. (v) The MOE operations have been audited by the GAC. The MOE has no experience of the World Banks procurement rules and procedures for recruiting consultants such as auditors. The following table outlines some actions agreed with the MOEs Comptroller that could mitigate the weaknesses identified. Action Prepare written Financial Management and Accounting Policies and Procedures Manual, taking cognizance of the Public FM Regulations and related legislation Identify and train staff in the schools for training in the provision of limited FM services. Responsibility Financial Comptroller (MOE) Target Date June 2010 Comments This manual has been completed.

Financial Comptroller, FM experts (MOE, PST)/EU Project Coordinator

Within 12 months of project effectiveness

Develop simple templates for the capture of expenditure information from schools. Negotiate a MOU with PFMU, defining services to be provided by PFMU including capacity building Prepare TOR for hiring an independent auditor

Financial Comptroller, FM experts (MOE,PST)/ PFMU

Within 12 months of project effectiveness

The FM specialists recruited under the CF will assist with capacity building. This will be a necessary step for the allocation of the grants. MOE (including PST), and PFMU will collaborate in this exercise. This MoU was discussed and agreed upon during negotiations. The TORs have been reviewed by the World

MOE

By negotiations

Finance Manager (MOE)/PFMU 88

By negotiations

for the annual audit of the CF. Hire an independent auditor for the CF.

Bank for acceptability. MOE/PFMU Within six months of project effectiveness The auditor will be hired in accordance with Banks Consultant Selection Guidelines and must be acceptable to the World Bank.

Project Financial Management 19. The PFMU will be responsible for the day-to-day financial management of the CF. The PFMU will establish an effective accounting system that provides for adequate segregation of functions and is capable of recording all accounting transactions and reporting correctly all assets and liabilities of the project. The CF will adopt the cash basis in the treatment and recording of all transactions. In addition, the CF will maintain a statement of liabilities outstanding at all times to correctly reflect the projects indebtedness to suppliers and third parties. The financial management system will follow the financial accounting procedures established for the ongoing projects. The working relationship and the respective responsibilities between the PFMU and the MOE will be outlined in a MoU to be signed between the parties by effectiveness. Budgeting Arrangements 20. The MOE will prepare an annual budget for review and approval by the World Bank prior to implementation in any year. Project implementation will be based upon agreed programs to be financed by the CF. Most of the activities of the key components are already known and these will be included in the CFs annual budgets. The annual project budget will be reviewed and agreed with the World Bank, and No Objections will be issued only for activities agreed in the budget. Accounting Arrangements 21. The established systems, processes and procedures acceptable to the World Bank will be employed by PFMU to organize and manage the accounting function for the CF on behalf of the MOE. The accounting systems are computerized and based on Sun Accounting Software as the accounting platform for recording and processing all financial transactions of the project. The platform will also provide the basis of all reports relating to the CF. All the finance and accounting procedures have been documented and reviewed by the Bank as acceptable for use in the management of Bank and other donor-funded projects. For the provision of school grants, the MOE will identify trainable staff in schools to be provided with basic accounting skills training to enable them to compile, consolidate, and summarize expenditure data for submission to central MOE finance and hence to PFMU using simplified data collection templates prepared for that purpose.
22.

Internal Control & Internal Auditing 23. The PFMU has an internal audit unit, which will provide internal audit services to the MOE and particularly to the CF. The unit reviews all financial transactions to ensure that the 89

transactions comply with project financing agreements and all national financial rules and regulations. It issues periodic reports on the status of internal control for the benefit of the entities it provides services to and for the PFMU. Funds Flow and Disbursement Arrangements 24. Funds Flow: Under the Grant, the PFMU, on behalf of MOE, will establish a Designated Account with a Commercial Bank acceptable to the World Bank. The Designated Account will be maintained in US$ to receive disbursements from the Grant Account opened by the Bank on behalf of the beneficiary institution. An initial advance will be disbursed into the Designated Account on request and subject to compliance with conditions that will be specified in a Grant Agreement and additional instructions that will be provided in a Disbursement Letter. The PFMU will make payments for approved and authorized transactions to contractors, suppliers and service providers. The PFMU will be responsible for making replenishment requests to the World Bank in accordance with the Banks disbursement policies and procedures.
25.

The World Bank will receive withdrawal applications with supporting documentation (including summary sheets, bank statement and reconciliation statement, transaction documents including contracts), where appropriate. The World Bank will disburse the amount requested out of the Grant if documentation is acceptable and transactions are eligible.
26.

30.

Transfer of funds to schools will not commence until the current system has been evaluated and strengthened. The funds for the school grants will be released subject to (i) development of school grant guidelines; and (ii) verification that at least 400 of the selected primary and junior secondary schools have met the eligibility criteria to receive grants. Individual schools will be transferred the funds upon successful completion of a sub-project agreement including (a) opening of bank account, (b) the establishment of a school management committee (SMC) and (c) the identification and training of staff to take up responsibility for the management of funds transferred.

90

91

Figure 8: Funds Flow Chart

Key: Fund Flow Supplies and Services Document Flow

World Bank Loans & Disbursement

PFMU (MOF)

Ministry of Education

Suppliers and Service Providers

Schools

Schools

Schools

Schools

Schools

Schools

92

27.

Disbursement Arrangements: The proceeds of the grant would be disbursed over a period using transaction based disbursement.

Category

Amount of the Grant Allocated (expressed in USD) 35,800,000

Percentage of Expenditures to be Financed (inclusive of Taxes)

(1) Goods, works and consultants services under the Project (2) School Subgrants under Part 2.b.2 of the Project TOTAL

100%

4,200,000

100% of the cost of goods, works and services financed by Subgrants

40,000,000

For a period of four (4) months after the closing date of the Grant, disbursements for expenditures incurred prior to the closing date will be allowed. The following disbursement methods will be available to the CF:
28.

a) Advance and Use of Statement of Expenditures (SOEs) The Recipient will open a Grant Designated Account (DA) for the project. The DA for the project funds will be opened at a commercial bank, under terms and conditions satisfactory to the World Bank and maintained in US Dollars. The carrying amount of the DA will be specified in the Disbursement Letter to be issued separately. Disbursements for all expenditures would be against full documentation, except for items below a threshold and were determined during appraisal for which disbursements would be based on SOEs. Supporting documentation for SOEs shall be retained by the implementing agency for review by World Bank missions and external auditors. b) Direct Payments The World Bank may make payments direct to a third party (i.e. Consultants, Contractors and Suppliers) at the request of the recipient in a prescribed format to the World Bank for eligible expenditure incurred under the project. c) Special Commitments

93

The World Bank may make payments to a third party for eligible expenditure under Special Commitment entered into, in writing, at the borrowers request and on terms and conditions agreed between the Bank and the Recipient. Financial Reporting Arrangements 31. The PFMU, on behalf of MOE, will prepare quarterly Interim (un-audited) Financial Statements or Reports (IUFR/IFR) to be submitted to the World Bank within 45 days after the end of each calendar quarter. The IFR will comprise the following statements:
32.

Sources and Uses of Funds (will provide quarterly information and cumulative to date) Uses of Funds by Expenditure Category/Component (will compare actual expenditures with budget) Category Disbursement Status Schedule of SOE Replenishments Schedule of Fixed Assets (acquired under the Grant) Bank Statements and Bank Reconciliation Statements Schedule of Commitments/Contracts Payment Status Schedule of Projected Commitments and Status of Procurement

The IFR will be reviewed and a quarterly review report shared with the Recipient and filed in the World Banks system. These reviews form part of the FM supervision activity and will be part of the overall assessment of FM performance under the Grant. Auditing 33. Independent and qualified auditors, acceptable to the World Bank, would, with the consent of the GAC, be selected to carry out an annual financial audit of the project in accordance with World Banks procedures for the selection of consultants. The arrangements for the audit of the project must be finalized (recruitment completed) within six months of the project being declared effective. The CFs annual financial statements including movements in the designated accounts will be audited in accordance with International Standards of Auditing (ISA) and a single opinion will be issued to cover the project financial statements, SOEs and the designated account, in accordance with the Banks audit policy.
34.

The auditors report and opinion in respect of the financial statements including the management letter would be furnished to the World Bank within six months of the close of each fiscal year.
35.

Financial Covenants and Disbursement Conditions 36. Covenants Submission of quarterly Interim Un-audited Financial Statements (or Report) within forty five (45) days of the end of each quarter. Submission of audited annual Financial Statements and Audit Report (including an audit Management Letter) within six months after the end of the CFs fiscal year. 94

For the school grants, transfer of funds will not commence until the current system has been strengthened. This would include (i) the development school grant guidelines; and (ii) verification that at least 400 of the selected primary and junior secondary schools have met the eligibility criteria to receive grants.

Supervision plan During CF implementation, intensive World Bank supervision will be required in order to ensure that the project financial management arrangements are in place and functioning. The first supervision mission, six months after effectiveness, will take the form of an FM Specialist visiting MOE. There will be other FM activities, such as desk review of IFRs and annual audit reports, as part of FM supervision.
37. 38. Conclusion The financial management assessment established that the financial management system in operation at the MOE did not meet the minimum standards required by the Bank. The assessment recommended a number of actions, short-term and longer term actions, to address the short-comings of the FM system and proposed an interim solution which depends on an established governmental agency to take FM responsibility for the CF.

It was the recommendation of the FM assessment team that the PFMU of the MOF should be nominated to take responsibility for the financial management of the project, while MOE is assisted to rectify the short-comings. Some of the weaknesses will take a while to correct because of the severe resource constraints facing the Government of Liberia (GoL).
39.

The FM system of the MOE will be assessed periodically during project implementation with the view to monitor the maturation of the system as the project and other donors assist MOE to build and maintain an adequate FM system. The risk rating for the CF would be no more than substantial (S) if the assessment recommendations are implemented.
40.

95

Annex 8: Procurement Arrangements LIBERIA: Fast Track Initiative Grant for Basic Education A. General 1. Procurement for the proposed CF would be carried out in accordance with the World Banks "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 and revised October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 and revised in October 2006 and May 2010, and the provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 2. Procurement of Works: A total of about US$10.97 million of works would be procured under this project. These would include (i) rehabilitation works for rural early childhood development centers (ECD), (ii) primary schools to be constructed in remote areas with communities involved in the construction; and (iii) primary schools and junior secondary schools to be constructed by contractors. The procurement will be done using the Banks Standard Bidding Documents (SBD) for all International Competitive Bidding (ICB) and for all others National SBDs agreed with or satisfactory to the World Bank. Contracts below US$3,000,000 but above US$100,000 equivalent per contract will be procured under National Competitive Bidding (NCB). Irrespective of this, NCB contracts deemed complex or subject to risks will be identified in the procurement plans and be prior-reviewed. For sustainability reasons, the works on (i) primary schools and (ii) junior secondary schools would be appropriately packaged to be procured through the NCB processes irrespective of cost. Contracts estimated to cost less than US$100,000 equivalent per contract would be procured using shopping procedures based on a model request for quotations satisfactory to the World Bank. Direct contracting may be used where necessary, but will be subject to World Banks No-Objection. Procurement of Goods: A total of about US$9.03 million of goods would be procured under this project. These would mostly include computers, generators and materials for PST and MOE, vehicles for DEOs, PST and MOE, supplementary readers, teacher support supplies, and ECD materials, etc. The procurement will be done using the Banks SBD for all ICB/LIB and National SBD agreed with or satisfactory to the Bank. Contracts below US$500,000 but above US$50,000 equivalent per contract may be procured under NCB. Irrespective of this, NCB contracts deemed complex or subject to risks will be identified in the procurement plans and be prior-reviewed. Contracts estimated to cost less than US$50,000 equivalent per contract would be procured using shopping procedures based on a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, subject to Banks No-Objection.
3.

4. Procurement of Non-Consulting services: A total amount of about US$ 0.64 million of non-consulting services will be procured to cover the maintenance of all the construction works consisting of CDD works, primary schools, and junior high schools. These will be 96

procured using shopping procedures based on a model request for quotations satisfactory to the Bank. 5. Selection of Consultants : Consultancy services valued at about US$15.24 million to be provided include (i) management personnel in the project support team and to meet identified technical capacity needs of the various MOE divisions; (ii) supervision of construction works, (iii) school grants system development, (iv) national assessment tests for grades 4 and 7, (v) capacity building, (vi) sole-sourcing of WAEC to carry out national assessment, (vii) M&E support for teachers and directors, (viii) de-worming activities, (ix) project audit, etc. Contracts for consulting services, each estimated to cost US$200,000 equivalent or more, will be awarded following the procedure of Quality and Cost Based Selection (QCBS). Consulting services estimated to cost US$100,000 but less than US$200,000 per contract under this project would be procured following the procedures of Selection Based on Consultants Qualifications (CQS), Fixed Budget Selection (FBS), Quality Based Selection (QBS), and Least Cost Selection (LCS) as will apply to the circumstances as respectively described under paragraphs 3.7, 3.5 and 3.6 respectively of the Consultants Guidelines. For all contracts to be awarded following QCBS, QBS, FBS and LCS, the Banks Standard Request for Proposals will be used. Procedures of Selection of Individual Consultants (IC) would be followed for assignments which meet the requirements of paragraph 5.1 and 5.3 of the Consultant Guidelines. LCS would be used for assignments for selecting the auditors. Procedure of Single-Source Selection (SSS) would be followed for assignments which meet the requirements of paragraphs 3.10-3.12 of the Consultant Guidelines and will always require the World Banks prior review regardless of the amount. 6. Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines, if in-country capacity exists. Consultancy services estimated to cost above US$100,000 per contract for firms, and contracts for individuals for assignments estimated to cost above US$50,000 and single source selection of consultants (firms and individuals) will be subject to prior review by the Bank. 7. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, would be available for IDA review by effectiveness. 8. Operating Costs: Incremental recurrent expenditures during project implementation, including maintenance of vehicles, fuel, equipment, office supplies, utilities, consumables, banking charges, advertising expenses, internet service, car insurance, travel, per diems, and accommodations, but excluding salaries of civil and public servants, will be procured using the implementing agencys administrative procedures reviewed and found acceptable by the Bank. All training programs, seminars, workshops, etc., will be procured based on the annual training plans [(part of the annual work plan and budget (AWPB)] subject to the Banks review. The AWPB will identify the general framework of training and similar activities for the year, including the nature and objectives of training and study tours, 97

conferences, workshops, the number of participants, cost estimates, and the translation of the knowledge gained in the actual implementation of project components. B. Assessment of the agencys capacity to implement procurement 9. The MOE procurement rules respond to the Public Procurement and Concessions Act (PPCA) of Liberia, which was enacted in 2005, and provides a good legal framework for the conduct of transparent and comprehensive procurement. The Act has provisions against bribery and corruption; however, because the penal law makes both parties liable for bribery, it is difficult for bribery to be reported. The Act also provides for the compilation and publication of code of conduct for procuring entities, public officials and their representatives and, further, provides for administrative and judicial reviews. In response to the PPCA, the MOE as a procurement entity has the required structures, i.e. a procurement unit and a procurement committee. Further, ad hoc evaluation panels are set up to evaluate bids and make recommendations to the Procurement Committee, as required by law, whenever there is a process that involves competition. The procurement and supply management functions are clearly distinguished, and the MOE now has auditing arrangements in-house. In addition, it has clear technical and administrative controls for reviews, approvals and decision making. 10. Currently, the MOEs Procurement Unit key staff, their designations, qualifications and procurement training are as shown in the table below.
Staff 1 Designation Procurement Director Qualifications BSc. (Political Science, MSc. (Regional Planning) Procurement Training PPCC: Goods & Equipment Proc. Mgmt (Feb 21-Mar 6, 2007) CMC/WB: Proc Training Workshop (10-18 Mar, 2005) GSA: procedures for Acquisition of Supplies under Bulk Purchasing (2day) IPAM/NPPA: Public Procurement Management (24Sept 11 Oct, 2007) IPAM/NPPA: Public Procurement Management (24Sept 11 Oct, 2007) None

Assistant Director Acting Procurement Specialist Procurement Officer Warehouse Manager Warehouse Coordinator Warehouse Clerk Filing Clerk

B.BA, Management

(MSc Economics)]

5 6 7 8

High School Diploma/Freshman U of Liberia BBA, Management High School Diploma/University student Senior Student, U of Liberia High School Diploma

Yes, but specifics not defined

None None None None

98

11. Current responsibilities revolve around the procurement activities undertaken in response to the PPCA. Earlier experiences in managing donor funds came under Education Pooled Fund (UNICEF and Soros foundation/OSI) in support of the LPERP. However, these relatively small donor-funded projects used mainly shopping procedures that did not call for the use of comprehensive donor procurement guidelines. Record keeping is considered poor; the Director of Procurement specifically requested training assistance in this area, and also in stores management. Further, because of the legal requirement to implement the law on Public Procurement and Concessions in both civil and public services, there appears to be good awareness of the law. 12. The MOE has significant experience in procurement using shopping procedures; the Unit also has some experience in bidding under the PPCA. The Units experience in the use of comprehensive guidelines under donor funding is limited. The MOEs Procurement Unit developed some workplace capacity and skills recently with the preparation of the construction program financed under the pooled fund starting from procurement planning and managing bidding and selection processes including preparing bidding documents, advertising for bids or issuing proposals, receiving bids or proposals, opening bids or proposals, evaluating bids or proposals, making recommendations for awards, contracting and managing contracts. The MOE, therefore, has some knowledge and experience in procurement cycle management but not yet in terms of international procurement. 13. Current MOE procurement activities are mainly restricted to activities in relatively small value goods & services and therefore the Procurement Unit does not have sufficient procurement depth for goods, works and services, and management of processes for international competitive bidding and large services contracts. The Unit, therefore, does not have the full capacity to deliver on procurement for goods, works and services as envisaged in the project. It also has a weak training base, which is a barrier for the succession planning and sustainability of the Unit. 14. It is concluded from the assessment that the MOE is in compliance with the Liberian Public Procurement and Concessions Commission Act. It has a procurement committee and a procurement unit with four officers with good academic backgrounds, two of whom have had no procurement training. Further, it has adequate internal technical and administrative controls and anti-corruption measures and appeal mechanisms for bidders as required under the PPCC Act. The Unit has poor quality staff in terms of qualifications and training to cater for the future of the Unit. Again, the Unit has been involved in managing small amounts of donor funds; however, it lacks the requisite experience in managing goods, works and services, under donor-funding, which call for the use of comprehensive donor procurement guidelines. 15. The key risk to procurement in Liberia is the general lack of procurement capacity; this has had very serious implications for project implementation and disbursements, since procurement has to be undertaken before disbursements can be made. 16. The specific key risks for MOE procurement are related to the fact that the MOE staff has not had the opportunity to engage in procurement of goods, works and services under comprehensive donor guidelines including IDA. Further risks are identified in the weak qualifications and training base for the subordinate staff. 17. The overall procurement risk is high. 99

18. There is a need to recruit two procurement specialists within the PST to provide the required guidance, coaching and mentoring to the staff of the Unit for at least twelve to eighteen months. These key risks, the mitigation measures, the actors and implementation timeframes are captured in the table below. Table 9: Key fiduciary risks and mitigation actions
No 1 Key risk Lack of opportunity to have a more experienced Procurement Specialist to look over the Units shoulder to provide guidance, coaching and mentoring to instill the confidence needed in conducting procurement. Mitigation Actions Recruit two procurement specialists for at least 12 to 18 months to provide the required guidance, coaching and mentoring to the MOE staff to instill the confidence needed in conducting procurement. By Whom MOE upon
discussions

By When By effective date

and agreement by the TTL

19.

The proposed action plan to address the deficiencies in the assessment is as follows: i. There is an urgent need for MOE to recruit two procurement specialists to provide procurement support to MOE for at least twelve to eighteen months. They will be part of the PST. ii. Prior to the commencement of project implementation, a Project Operational/Implementation Manual should be prepared that would, among others, confirm the organizational arrangement for the management of procurement; provide detailed terms of references for the staff, and the functional relationships and interaction between the projects staff responsible for procurement and the relevant units for administration and finance. In addition, the manual would offer clear instructions and guidance for the management of procurement records. iii. At project start-up, an orientation of the staff on the principles of good procurement planning and practice, including discussions on procurement arrangements under the project, may also be provided by the procurement specialist. This would also be followed with the specialists participation in sessions for annual work plans and budgets, procurement planning, etc. and overall procurement support to MOE.

20. With these in place, and with the World Bank providing reviews and No-Objections, as required, the CF can be successfully implemented. C. Procurement Plan 100

21. The Borrower, at appraisal, developed a procurement plan for project implementation which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the World Bank on July 23, 2010 and is available in the MOE, Department of Administration. It will also be available in the projects database and in the Banks external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 22. The Borrower will prepare and furnish to the World Bank for its approval, no later than April 15 of each year during the implementation of the project an Annual Work Plan and Budget, and an updated Procurement Plan containing all eligible project activities and expenditures planned for the following government fiscal year.
Thresholds**, Procurement Methods, and Prior Review
No Expenditure Category Contract Value Threshold** Procurement Method Contracts Subject to Prior Review /(US$)

C>=3,000,000 100,000=<C<3,000,000 1 Works C<100,000

ICB NCB

All contracts Specified contracts as would be identified in the approved Procurement Plans Prior reviews of first 5 contracts

Shopping

All Values

Direct Contracting

All Contracts

C>=500,000 Goods and services other than Consulting Services

ICB / LIB NCB /UN Agencies Shopping

All contracts Specified contracts as would be identified in the approved Procurement Plans Prior reviews of first 5 contracts

50,000=<C<500,000

C<50,000

All Values

Direct Contracting

All Contracts

C>=200,000 (firms) 100,000=<C<200,000 (firms) 3 Consulting Services C>=50,000 (individuals)

QCBS / QBS LCS, FBS, and CQS IC

All contracts All TORs by TTL and prior review for first 3 contracts All contracts Only TORs (Except for the hiring of Lawyers and Procurement Specialists). All contracts

C<50,000 (individuals) All values

IC SSS

101

Based on approved Annual 4 All Values Approved by TTL when due Work Plan & Budgets (AWPB) **These thresholds are for the purposes of the initial procurement plan for the first 18 months (July 1 December 2011). The thresholds will be revised periodically based on re-assessment of risks.

Training, Workshops, Study Tours

D. Frequency of Procurement Supervision 23. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the implementing Agency has recommended three supervision missions each year to visit the field to carry out post-review of procurement actions. The procurement post-reviews should cover at least 20 percent of the contracts subject to post-review. In addition post-reviews of in-country training will be conducted from time to time to review the selection of institutions, facilitators, course contents of the training, and the justifications thereof, and costs incurred. 24. Technical Audit: A technical audit will be performed by a consultant at the start of the project and again at the end of the second year of implementation to ascertain whether the number and types of learning materials purchased are actually delivered to the schools and being effectively used in the classrooms. 25. Contracts Disbursements Status Reports: As part of the project reports, the MOE will submit contract management and expenditure information in quarterly reports to IDA. The procurement management report will consist of information on procurement of goods, works and consultants services and compliance with agreed procurement methods. The report will compare procurement performance against the plan agreed at negotiations and, as appropriate, update at the end of each quarter. The report will also provide any information on complaints by bidders, unsatisfactory performance by contractors and any information on contractual disputes. 26. Publication of Awards and Debriefing: Publication of results of the bidding process for all ICB goods and works, and also for consultant contracts estimated at US$200,000 and above, in response to paragraphs 2.60 and 2.65 of the World Banks Guidelines: Procurement under IBRD Loans and IDA Credits dated May 2004 and revised in October 2006 and May 2010; and paragraphs 2.28 and 2.29 of the Guidelines: Selection and Employment of Consultants by World Bank Borrowers dated May 2004 and revised in October 2006 and May 2010. Publication of all other procurement activities, including debriefing and review shall be subject to the relevant stipulates in the Liberian Public Procurement and Concessions Law of 2006. 27. Fraud and Corruption: All procuring entities as well as bidders and service providers, i.e. suppliers, contractors and consultants, shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project in accordance with paragraphs 1.14 of the Procurement Guidelines and paragraphs 1.22 of the Consultants Guidelines. E. Details of the Procurement Arrangements Involving International Competition and other Large Value Contracts 28. List of contract packages to be procured following ICB and direct contracting. ICB goods and works contracts estimated to cost above US$500,000 and US$3.0 million per contract respectively will be subject to prior review by the Bank, unless as modified by the requirements 102

of the approved procurement plans. Further, all direct contracting will also be subject to prior review by the World Bank.

Goods and Works and Non-Consulting services

1 Ref. No. 2 Contract (Description) 3 Estimated Cost (US$) 4 Procurem ent Method 5 Prequalifi cation (yes/no) 6 Domestic Preference (yes/no) 7 Review by Bank (Prior / Post) Prior review for the first 5 contracts Prior Review for first 5 contracts Prior Review for first 5 contracts 8 Expected BidOpening Date 9 Comments

Increasing access and equity in rural areas 880,000 16 (No) Primary schools to be (16 constructed in shopping @ remote $55,000 communities
each)

Shopping

No

No

21-Jan-11

During the entire implementation period During the entire implementation period During the entire implementation period During the entire implementation period

24 (No) Primary schools to be constructed by contractors

2,760,000 (24 NCBs @

$115,000 each)

NCB

No

No

20-Nov-10

20 (No) Junior secondary schools to be constructed by contractors

7,200,000 (20 NCBs @ $360,000 each) NCB No No

1-Nov- 10

Improving the conditions for teaching and learning Textbooks for Grades 5-9 5,500,000 ICB/LIB No No Prior 05-Dec10

During the entire im1,500,000 ICB/LIB No No Prior 05-Dec-10 plementation period Equipment and During the furniture for entire im1,080,000 ICB No No Prior 09 -Nov-10 Junior High plementation Schools period Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities During the NCB/ entire im7(No) Vehicles 210,000 No No Prior 14-Nov-10 UNOPS plementation period Various goods for During the PST and MOE 500,000 NCB No No Prior 14-Nov-10 entire im(computers, plementation printers, air period conditioners, Teacher guides for Grades 5-9

103

stationary, furniture, etc)

Selection of Consultants 29. All large-value services contracts equal to or in excess of US$200,000 as well as all solesourced contracts for services will be subject to review by the Bank. 4. Consultancy Assignments with Selection Methods and Time Schedule
1 Ref. No. 2 Description of Assignment 3 Estimated 4 Selection Method 5 Review by Bank (Prior / Post) Prior 6 Expected Proposals Submission Date 21- Dec-10 7 Comments

Cost
2,596,800

Increasing access and equity in rural areas Management and supervision of construction works, including capacity building

QCBS

During the entire implementation period

Improving the conditions of teaching and learning TA for school grants system 200,000 development

During the entire implementation period ECD TA needs assessment to 21-Dec -10 During the 500,000 QCBS Prior develop strategy and quality tools entire implementation period ECD pilot development and 21-Dec-10 During the 160,000 CQS Prior management- TA for needs entire imassessment, management, and M&E plementation period Prior 375,000 Single School health: de-worming and 31-Jan-11 During the Source teacher training by the World Food entire im(SS) Program plementation Contract to period ; SS to UN World Food Agency Program needs to be justified School Health: teacher training 387,000 QCBS Prior 31-Jan-11 During the entire implementation period School Health: life-skills student 378,000 QCBS Prior 31-Jan-11 During the modules entire implementation period Strengthening central and local levels to operate in a decentralized education system by developing management and monitoring and evaluation capacities M&E support for DEOs and basic During the Prior 1,701,600 11-Mar-11 QCBS entire imeducation school principals

CQS

Prior

01-Dec-10

104

M&E support for basic education teachers and principals

4,375,500 900,000

QCBS

Prior

11-Jun-11 31-Jan-11

National assessment test for grades 4 and 7

QCBS 200,000 CQS

Prior Prior 23-Aug-11

Studies: teacher study and development, regular salary payment

TA for West African Examinations Council (WAEC) to carry out national assessment

250,000

SS

Prior

31-Jan-11

Evaluation and audit

210,000

LCS

Prior

03-Jun-11

TA for personnel management

500,000

QCBS

Prior

31-Jan-11

Project Coordinator

288,000

IC

Prior

For three years

plementation period During the entire implementation period During the entire implementation period During the entire implementation period During the entire implementation period; SS needs to be justified During the entire implementation period During the entire implementation period During the entire implementation period

Procurement Specialist (Intl) Procurement Specialist (Local)

108,000 144,000

IC IC

Prior Prior

For one year For three years During the entire implementation period During the entire implementation period During the entire implementation period During the entire implementation period During the entire implementation period

Financial Management (Local)

144,000

IC

Prior

For three years

Financial Management (Local)

144,000

IC

Prior

For three years

M&E Specialist

252,000

IC

Prior

For three years

Planning Specialist

216,000

IC

Prior

For three years

105

30.

All contracts not subject to prior review will be post-reviewed.

106

Annex 9: Economic and Financial Analysis LIBERIA: Fast Track Initiative Grant for Basic Education

Rationale of the CF Links to Country Assistance Strategy (CAS) and Poverty Reduction Strategy (PRSP) 1. The CFs objectives are in line with the Joint Assistance Strategy (IDA and AfDB), presented to the Board in 2009, and with Liberias PRSP introduced in March 2008. The Joint Assistance Strategy pursues three strategic themes: (i) rebuilding core state functions and institutions; (ii) rehabilitating infrastructure to jump-start economic growth; and (iii) facilitating pro-poor growth. The governments first full PRSP (20082011) has four core strategic areas of intervention: peace and security; economic revitalization; governance and rule of law; and infrastructure and basic services. In addition, it pursues a number of priority crosscutting themes, including gender equity, peace-building, environmental issues, HIV and AIDS, children and youth, and monitoring and evaluation. Links to other sector work 2. During the last two years, the World Bank has been supporting education (through EPDF resources) in Liberia by providing technical assistance for capacity building in the MOE. A CSR and ESP have been conducted jointly, with the former providing the necessary diagnostic and the latter laying out the policy directions that are fully-costed. The ESP was endorsed in February 2010. A PEMFAR has been completed in 2008 and includes a chapter dedicated to the review of public expenditures in education. 3. In addition, knowledge and lessons are being drawn from the implementation of ongoing World Bank projects. The current Community Empowerment Project (US$5 million) supports the rebuilding of community cohesion and social capital in addition to much-needed community infrastructure (including building/rehabilitation of classrooms). The Food Price Crisis Response Trust Fund (US$4 million) includes the funding of school meals for 62,000 pre-school and primary school children from vulnerable households in three targeted districts. Social impact of education 4. Improved access to education is generally seen to improve the probability of getting better remunerated work, reducing the likelihood of poverty and social exclusion and providing positive externalities of higher productivity growth and enhanced health. There is ample evidence that these advantages hold in Liberia. In the subsequent paragraphs, the impacts of education on peoples income and behaviors will be analyzed. 5. Econometric models were utilized to assess the impacts of education on peoples income and behaviours. These models combine independent variables such as age, sex, geographical location, wealth index and health supply index in order to produce results everything being equal. Tables 28 and 29 below show the summary of some key results based on the models. 107

Tables 28 and 29: Social Impact of Education Results

Highes t grade completed Non Average educated Probability of women (1549) literacy (%) Us e of contraceptives A ll Women M en 20-29 years Total number of live birth old 40-49 years old 15-49 years old 1.9 6.7 2.8 94.6 91.1 95.6 18.9 19.3 19.1 18.8 20.0 19.7 16.0 16.6 16.4 17.4 18.3 17.5 3.1 7.7 4.1 83.1 78.2 83.2 18.2 19.4 17.5 17.0 18.4 16.4 15.7 16.0 15.4 17.2 18.4 16.6 2.5 7.7 3.5 85.4 78.8 85.4 18.1 19.1 17.6 16.9 18.2 16.5 15.9 15.9 15.5 17.1 18.4 16.7 2.2 7.6 3.1 88.6 82.1 88.9 18.2 18.9 17.8 17.0 18.3 16.9 16.1 15.8 15.7 17.1 18.4 16.8 2.0 7.4 2.8 91.9 86.4 93.0 18.3 18.8 18.2 17.4 18.6 17.6 16.2 15.9 15.9 17.2 18.3 17.0 1.9 7.0 2.7 94.8 90.8 97.3 18.5 18.8 18.6 18.0 19.1 18.4 16.3 16.3 16.2 17.2 18.3 17.2 1.8 6.4 2.6 97.2 94.6 100.0 18.8 19.0 19.2 18.7 19.9 19.4 16.2 16.4 16.5 17.3 18.2 17.5 1.7 5.7 2.6 98.9 97.3 100.0 19.2 19.3 19.8 19.6 20.8 20.6 16.1 16.9 16.7 17.5 18.2 17.8 1.4 4.8 2.5 99.9 99.0 100.0 19.6 20.0 20.5 20.6 21.9 21.8 15.8 17.5 17.0 17.6 18.1 18.1 .. .. .. 100.0 100.0 100.0 20.1 20.9 21.3 21.7 23.3 26.3 15.4 18.2 17.4 17.8 18.2 18.4 19.8 22.9 19.2 6.1 6.0 4.6 7.4 8.4 6.4 9.8 12.2 8.4 13.0 16.7 11.0 16.8 21.6 14.3 21.1 26.3 18.6 25.5 30.3 24.1 30.1 33.3 31.1 34.5 34.6 39.7 68.9 0.0 9.7 30.7 53.0 73.6 89.7 98.3 100.0 100.0 Primary cycle 2 4 6 8 Secondary 10 12 Higher Education 14 16

Us e of iron tablets during preganancy (%) Us e of tetanus toxoid during pregnancy (%) Us e of Vitamin A firs t 2 months after birth (%) 20-29 years old Woman's age 40-49 years at her firs t old birth 15-49 years old 20-29 years old Woman's age 40-49 years at firs t old marriage 15-49 years old 20-29 years old 40-49 years old 15-49 years old 20-29 years old 40-49 years old 15-49 years old

Woman's age at firs t s ex encounter

Man's age at firs t s ex encounter

..

Lack of adequate observations or no observations

Source: Authors calculations using the Liberia DHS, 2007

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Highes t grade completed Non Average educated Total no. of live births Knowledge of A ll HIV/A IDS Males (s core over 6) Females Tes ted for HIV/A IDs A ll Females 2.8 2.3 2.4 2.4 8.6 2.6 8.2 98.5 71.2 32.3 30.2 47.3 4.1 1.2 1.0 1.4 0.1 0.8 0.8 94.5 34.6 24.3 41.5 56.8 Primary cycle 2 3.5 1.7 1.6 1.8 1.5 1.1 1.6 96.6 37.7 25.5 42.4 58.1 4 3.1 2.1 2.0 2.1 2.5 1.8 2.7 98.0 45.1 27.3 41.2 57.6 6 2.8 2.3 2.4 2.3 3.4 1.7 4.1 98.7 55.4 29.3 38.4 55.5 8 2.7 2.5 2.6 2.5 4.8 .. 6.0 99.0 67.7 31.5 34.2 52.0 Secondary 10 2.6 2.6 2.7 2.6 7.1 .. 8.2 99.0 78.8 33.7 29.2 47.5 12 2.6 2.6 2.7 2.6 10.6 2.0 10.9 98.9 89.1 35.6 23.8 42.0 Higher Education 14 2.6 2.6 2.7 2.6 15.8 3.9 14.2 98.7 96.5 37.1 18.5 35.9 16 2.6 2.6 2.7 2.7 23.2 7.4 18.0 98.7 99.6 38.0 13.6 29.4

Males Probability of antenatal cons ultation (%) A s s is tance at delivery by s killed attendant (%) Fully immunis ation for child under five (%) Stunting for children under-five (%) Breas tfeeding practices (%)

..

Lack of adequate observations or no observations

Source: Authors calculations using the Liberia DHS, 2007

Social impact of education: summary of main outcomes Effect on Immunization 6. There is powerful evidence that educational attainment is correlated with improved immunization rates. Children born to uneducated mothers have significantly less chance of receiving full immunization coverage than children born to educated mothers. Educated mothers are twice as likely to have their children immunised than uneducated mothers. Surprisingly, a not so significant gain of 5 percentage points is associated with primary education completion (6 years of schooling) compared to non-educated women. The marginal effect is 6 points for secondary school completion (12 years schooling, compared to the end of the primary education), indicating a higher efficiency rate of secondary school completion in terms of social benefit. Effect on stunting for children under-five 7. Child stunting is associated with poor child development and increased mortality. The odds of child stunting is 8 times higher for women with no formal education when compared to mothers with a university degree. A not so significant gain of 3 percentage points is associated with primary cycle completion (6 years of schooling) compared to non-educated women. However, the significant gain of 15 points for secondary school completion (12 years schooling,

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compared to the end of the primary cycle) indicates a higher efficiency rate of secondary school completion in terms of social benefits.

Recent achievements in the education sector 8. Over the past year, the following progress has been made through the implementation of the LPERP. Overall, 198 schools were built and 58 renovated; 75,820 students enrolled in the ALP (a program for over age children who are going through the primary education program in three years rather than the standard 6 year program). 82,638 learners were provided with furniture; 1.2 million textbooks and teachers guides have been procured and will be distributed to the schools for the beginning of the school year. This will bring the student textbook ratio to 2:1; 324 in-service teachers received their C certificates and 400 trainees in the pre-service program successfully passed their final examination; and reading assessment instruments are in place to measure quality in the classroom. With World Bank and RTI/USAID support, government has assessed reading levels in grades 2-3 in 180 schools. A school census report that includes detailed information of all the schools in Liberia for school year 2007/08 has been completed. It represents the main data reference for education. An EMIS exists and incorporates the data from the school census. Education financing Public Spending on Education - Aggregate Trends and Distribution across Levels 9. Since 2004 average real spending for education has increased by 26 percent per year (PEMFAR, 2008)
Figure 9: Total Public Spending on Education 2004/05 2007/08

Source: Ministry of Finance, Annual Fiscal Reports - 2004/05, 2005/06, 2006/07 and 2007/08 as in 2007 PEMFAR

10. The distribution of public funds across the different levels of education has tended to vary across the years as the table below shows for 2004/05 to 2006/07. For those years, administrative and support services and tertiary education consumed most of the funds with school level education seemingly receiving a surprisingly small percentage. Since administrative and support services are not provided equally for at the different levels, if this is appropriately distributed it can impact significantly on level allocations.

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Figure 10: Distribution of Public Spending on Education by Level - 2004/05 2006/07

Source: 2007 PEMFAR Authors Estimate Data

11. For 2007/08, more detailed analysis was carried out with administrative and support costs being distributed across the different levels.
Table 30: Distribution of Public Spending on Education by Level - 2007/08 Personal Exp. 3,155,840 4,205,751 1,302,844 638,980 392,785 236,877 50,468 9,983,545 Goods and Services 1,197,923 1,592,439 638,278 313,043 589,118 294,753 86,330 4,711,884 Transfers & Subsidies 640,187 869,960 16,062 7,878 2,595,580 0 3,969,379 8,099,045 Total Recurrent 4,993,949 6,668,150 1,957,183 959,901 3,577,482 531,630 4,106,177 22,794,473 % Total Recurrent 22% 29% 9% 4% 16% 2% 18% 100%

Adjusted Final Pre-Primary Primary Junior High Senior High TVET Teacher Training Tertiary Education Total

Capital 802,191 1,040,481 427,823 209,826 23,428 95,750 53,202 2,652,701

Source: Ministry of Education, Ministry of Finance and Budget Bureau Data

12. The chart below more clearly shows the distribution of public spending in 2007/08 inclusive of administrative and support costs.

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Figure 11: Distribution of Public Spending on Education by Level - 2007/08

Source: Ministry of Education, Ministry of Finance and Budget Bureau Data

13. In 2007/08, the share allocated for primary education (pre-primary, primary education and teacher training) recurrent spending was 53 percent, while secondary education (and TVET) received 29 percent. 14. It becomes apparent that when administrative and support costs are distributed to the appropriate levels, the percentage of public funds spent on each level changes. The suggestion from Figure 11 is that insufficient public funds are being allocated to the secondary level and teacher training. This is a source of concern given the large number of poorly and untrained teachers in the system, the seeming inadequacy of the present teacher training program to even meet current demand for new teachers, and the exploding enrollment and graduate numbers at the primary level. 15. When adjustment is made to a system structure of 6 years of primary and 7 years of secondary education (the most common structure in sub-Saharan Africa), the distribution of expenditure is as shown in the table below.
Table 31: Distribution of Public Spending on Education by Level after Adjustment to 6 Years Primary and 7 Years Secondary - 2007/08

Primary (+ Pre-Primary and Teacher Training) Secondary (+ TVET) Higher Education

50.60% 31.40% 18.00%

Source: Ministry of Education, Ministry of Finance and Budget Bureau Data

16. With the adjustments, it is worth noting that Liberia is seemingly giving due attention to primary education and, in doing so, is meeting the EFA indicative target of approximately 50 percent of expenditures on primary education. Expenditure on secondary education is still of 112

concern as the percentage expenditure observed is due to the adjustment upwards from 6 to 7 years of schooling and the contribution of expenditure for TVET which is larger than for general secondary education alone. 17. Liberia compares very favorably with its neighbors and other post-conflict sub-Saharan countries in terms of expenditure on primary education as the table below shows.
Table 32: Comparative Distribution of Public Spending on Education by Level for Selected West African and Post-Conflict Countries % on Prim (adjusted % on Sec (adjusted % on Country to 6 years) to 7 years) Higher Ed Burkina Faso 60.3 17.5 22.2 Benin 50.7 27.2 22.1 Liberia 50.6 31.4 18 Gambia, The 49.8 25.8 24.4 Chad 49.6 29.1 21.3 Sierra Leone 48.2 29.8 22 Rwanda 47.1 23.9 29 Cote dIvoire 46.6 32.7 20.7 Sub-Saharan Africa Average 44.4 34.3 21.2 Guinea 44.4 30.8 24.8 Burundi 44.4 28.1 27.5 Senegal 44.4 27.9 27.7 Cameroon 40 45 15 Togo 40 39.7 20.3 Ghana 39.3 39.1 21.6 Mali 35.3 48.4 16.3 Guinea-Bissau 33.3 43 23.7 Nigeria 29.1 51.2 19.7 Source: Authors Estimates Based on World Bank Data, 2008 GDP per capita 2006 429.9 545.1 176.3 307.1 624.9 252.5 263.5 927.9 1,699.7 361.3 110.5 760.9 1,008.2 344.1 560.9 490.1 185.0 797.0

Current Recurrent and Capital Costs 18. At each level of schooling, the largest part of current recurrent and capital costs is spent on personnel as the table below shows.
Table 33: Percentage Distribution of Public Spending on Education by Level - 2007/08 Personnel Exp. (Teachers and Non-teachers) 54% 55% 55% 55% 11% 38% 1% 39% Goods and Services 21% 21% 27% 27% 16% 47% 2% 19% Transfers & Subsidies 11% 11% 1% 1% 72% 0% 95% 32% Total Recurrent 86% 87% 82% 82% 99% 85% 99% 90%

Level Pre-Primary Primary Junior High Senior High TVET Teacher Training Tertiary Education Total

Capital 14% 13% 18% 18% 1% 15% 1% 10%

Source: Ministry of Education, Ministry of Finance and Budget Bureau Data

19. The paucity of teaching and learning materials in schools as well as the shortage of seating accommodation for students is a reflection of the percentage of spending on goods and 113

services. For tertiary education and TVET, the share of transfer and subsidies is as high as 95 percent. How the institutions spend the transfers and subsidies they receive is not known, since they have the autonomy to use these funds as they see fit, but it is likely that a significant percentage goes on personnel expenditure not directly paid by the government. It is highly unlikely that the 1 percent paid directly to tertiary institutions for personnel expenditure is the only amount spent for that purpose. The major part of funds received from the government goes towards staff salaries. In primary education, the expenditure on salaries accounts for 55 percent and is similar to the share for other sub-sectors such as pre-primary, junior high, and senior high secondary education. Teacher Cost Estimates 20. As indicated in the preceding section, the majority of the spending on the different levels of schooling is on personnel expenditure, especially teachers. It follows that spending on the salaries of teachers significantly impacts on unit costs at the different levels. The table below shows the staff wage bill for different levels of schooling.
Table 34: Total School Staff Salary Bills Paid by the GOL and as Units of GDP per Capita by Level - 2007/08 NonTeachers Average Salary Adjusted (Annual US$) 483 490 502 534 Adjusted Average Annual Teachers' Salary as Units of GDP per Capita 5.59 5.67 5.81 6.17

Level

Adjusted NonTeachers Bill (Annual US$) 469,967 597,081 187,225 96,310

Adjusted Average Teachers Salary (Annual US$)

Adjusted Teachers Bill (Annual US$) 1,927,060 2,413,249 737,943 357,439

Total Annual Staff Bill of Schools (US$) 2,397,027 3,010,330 925,168 453,749

Pre-Primary Primary Junior High Senior High

568 576 590 627

Source: Authors estimate based on Ministry of Education, Ministry of Finance and Budget Bureau Data

21. Average teacher salary in Liberia increases as the schooling ladder is ascended but because of the basic flat-rate payment for civil servants in the country, the difference between levels is quite small. The difference in average salary of the different levels is largely due to the difference in the number of unqualified teachers. This means that teachers have little incentive to stay in the profession and/or to improve their qualifications. 22. With the anticipated increases in GDP, slight increases in salary would be possible without increasing the ratio. Some increase in the salary of primary school teachers is advisable as it could contribute positively to the achievement of EFA through helping to attract and retain better quality teachers in the system. In fact, the government has announced an increase in teachers salaries but has yet to follow through on this announcement. Comparison of the average salaries of teachers in Liberia relative to its GDP with that of other West African countries across the different levels of schooling suggests that Liberian teachers are reasonably paid relative to the wealth of the country and their counterparts in these other countries as shown in the table below.

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Table 35: Ratio of Average Teacher Salary to GDP per Capita in Selected West African and Post Conflict Countries Primary Teachers Salaries (GDP per Capita) 7.8 6.1 5.7 5.2 4.9 4.8 4.7 4.7 4.5 4.5 4.4 4.0 3.9 3.9 3.6 3.6 3.5 Junior High Teachers Salaries (GDP per Capita) 9.3 8.9 5.8 9.3 7.2 7.7 4.7 5.5 6.5 6.8 6.6 5.9 5.9 5.9 3.0 6.5 Senior High Teachers Salaries (GDP per Capita) 11.0 9.0 6.2 13.0 7.2 4.8 7.1 6.5 8.3 2.2 7.6 5.9 6.4 5.2 13.0 GDP/Capita 2006 110.5 344.1 101.6 429.9 797.0 927.9 560.9 760.9 307.1 490.1 185.0 252.5 263.5 545.1 1008.2

Country Burundi Togo Liberia Burkina Faso Nigeria Cote dIvoire Ghana Senegal Gambia, The Mali Guinea-Bissau S/S Africa Average Sierra Leone Rwanda Benin Cameroon EFA-FTI Benchmark

Source: Authors Estimates Based on World Bank Data, 2008 and Ministry of Education, Ministry of Finance and Budget Bureau Data

23. It is worth noting from the above table that Liberia pays more, in relative GDP terms, to its primary school teachers than most other neighboring and post-conflict countries but not quite as much to its secondary level teachers. The purchasing power of the salary received is low and this has implications for the quality of teachers in the system, given the relatively small pool of individuals to recruit from and the competition for their services. Spending Other than Teachers Salaries 24. Getting the balance right between what is spent on salaries and what is spent on other teaching / learning inputs is difficult. Current recurrent expenditure on inputs other than teacher salary is shown in the table below.
Table 36: % of Recurrent Spending Other than Teachers Salaries and Personnel Expenditure by Level 2007/08 Level Pre-Primary Primary Junior High Senior High Share of Recurrent Spending Other than Total School Staff Salaries (%) Total Personnel Expenditure (%) 52.0% 37% 54.9% 37% 52.7% 33% 52.7% 33%

Teachers' Salary (%) 61.4% 63.8% 62.3% 62.8%

Source: Authors Estimates Based on Ministry of Education, Ministry of Finance and Budget Bureau Data

25. It is apparent that the salaries of teachers only account for approximately one-third of the education expenditure at all levels but, when other school staff salaries are also taken into 115

account, a total of approximately one-half of recurrent expenditure is consumed. A further reduction takes place when other personnel expenditures are taken into account, leaving just over one- third of recurrent funds for teaching and learning materials as well as other necessary inputs. Additionally, many public and community schools employ teachers who are not paid from government funds but rather from contributions by community members or not paid at all. The cost of this category of teachers is not known. 26. Given that the EFA FTI benchmark for spending on inputs other than teachers salary as % of total recurrent spending is 33 percent for the primary level, it follows that some room exists for improving the salaries of teachers even with the subsidies going to public and community schools in support of free primary education. However, there is no reporting on what these subsidies are being spent on. In addition, care needs to be taken so that the ratio of salary to GDP does not become unreasonably high. 27. As more teachers undergo training and the high percentage of untrained and volunteer teachers in the system is reduced, the share of recurrent expenditure consumed by the salaries of teachers is expected to increase. Additionally, the student enrollment in public schools is expected to increase and result in the need for more teachers as well as other inputs. Lastly, with the soon-to-be introduced salary scale for teachers, an overall increase in the percentage of recurrent expenditure going to the salaries of teachers is anticipated.
Table 37: Comparative Distribution of Public Spending on Education by Level for Selected West African and Post-Conflict Countries % on Prim (adjusted to 6 years) 60.3 50.7 50.6 49.8 49.6 48.2 47.1 46.6 44.4 44.4 44.4 44.4 40 40 39.3 35.3 33.3 29.1 % on Sec (adjusted to 7 years) 17.5 27.2 31.4 25.8 29.1 29.8 23.9 32.7 34.3 30.8 28.1 27.9 45 39.7 39.1 48.4 43 51.2 % on Higher Ed 22.2 22.1 18 24.4 21.3 22 29 20.7 21.2 24.8 27.5 27.7 15 20.3 21.6 16.3 23.7 19.7 GDP per capita 2006 429.9 545.1 176.3 307.1 624.9 252.5 263.5 927.9 1,699.7 361.3 110.5 760.9 1,008.2 344.1 560.9 490.1 185.0 797.0

Country Burkina Faso Benin Liberia Gambia, The Chad Sierra Leone Rwanda Cote dIvoire Sub-Saharan Africa Average Guinea Burundi Senegal Cameroon Togo Ghana Mali Guinea-Bissau Nigeria

Source: Authors Estimates Based on World Bank Data, 2008

Disparity in Household Spending on Education by Income Group 28. Households spend significant amounts on all levels of education, even with the introduction of free primary education. 116

Table 38: Per Student Expenditure on Education by Wealth Quintile and Level of Education in US$ 2006/2007
Level Primary Education Secondary Education Higher Education All Q1 8.3 20.1 307.9 13.8 Q2 12.5 33.6 381.6 20.9 Q3 17.9 45.6 210.3 29.7 Q4 25.8 54.9 171.1 41.6 Q5 35.8 74.8 180.4 57.6 Unit Cost - Household Spending on Education 19.9 48.2 199.2 33.4

Source: Estimates based on the 2007 CWIQ Survey in WB PEMFAR 2008

29. At the school level, the table above shows that household spending per student increases with the wealth of the household. At the tertiary level, per student expenditure on education is greater for the two poorest quintiles (Q1 and Q2) than the two wealthiest (Q4 and Q5). A contributory factor to the noted disparity is the fact that children of wealthier families tend to be in the majority at the tertiary level and many benefit from scholarships. Students from household in the two poorest quintiles appear to be disadvantaged in terms of scholarships leaving their parents to bear more of the costs. While actual expenditures on education by the poorest households are lower at the school level than that of richest households, the former, in fact, spend a greater percentage of their total per capita household expenditure on primary and secondary education. Cost Benefit Analysis 30. We undertook a standard cost benefit analysis of the school construction program. To do so, we compared investment spent now along with recurring functioning costs to the sum of expected future wage increases an individual will benefit from as a result of primary school completion.

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31. Under the usual assumptions, labor market benefits will exceed cost after 5 years at the secondary education level and 7 years at the primary level. We would like to highlight that program efficiency will depend heavily on the future growth rate. Skills learnt at primary school will indeed be more valuable if Liberias economy performs well whereas investment cost spent in USD will not be affected. These direct financial benefits are in addition to effects on social outcomes such as better health or improved childcare that are more difficult to monetize.
Table 39: Cost Benefit Analysis for School Construction Program

year investment cost total number of pupils in new primary schools Total recurrent cost for primary schools Extra number of primary educated individuals on labor markets Wage benefits primary education from

1 5315266.7 14400 144000

2 4551933 14400 151200

3 3938600 14400 158760

14400 166698

14400 175032.9

14400 183784.5

14400 192973.8

14400 202622.5

0 0 1500 22500

0 0 1500 23625

0 0 1500 24806.25

0 0 1500 26046.56

0 0 1500 27348.89

0 0 1500 28716.34

2400 264253.2 1500 30152.15

4800 554931.6 1500 31659.76

total number of pupils in new secondary schools Total recurrent Jr High-schools cost for

Extra number of secondary educated individuals on labor markets Wage benefits secondary education from

0 0 -5481767

0 0 -5E+06

0 0 -4E+06

500 20269.06 -157840

1000 42565.02 -141995

1500 67039.91 -125476

2000 93855.87 113046

2500 123185.8 360879

Discounted net benefits

Fiscal sustainability of the EFA-FTI Catalytic Fund

Objectives and Sustainability of Education Development

32. A financial analysis was carried out to evaluate the attainability and sustainability of the targets specified in the governments ESP. The policy choices which aim to ensure the sustainability of the plan are as follows: Primary education: (i) gross intake rate (GIR) is projected to move from 109 percent in 2010/11 to 106 percent in 2012/13; (ii) net intake rate (NIR) is to move from 23 percent in 2010/11 to 38 percent in 2012/13; (iii) gross enrollment rate (GER) is projected to move from 94 percent in 2010/11 to 96 percent in 2012/13; at the same time, the net enrollment Rate (NER) is 118

to move from 46 percent in 2010/11 to 57 percent in 2012/13; (iv) the ratio of girls to boys enrolled in primary schools is projected to move from 90 percent in 2010/11 to 91 percent in 2012/13; (v) repetition rate is projected to drop from 6 percent in 2010/11 to 5 percent in 2012/13; (vi) Completion Rate is projected to move from 68 percent in 2010/11 to 75 percent in 2012/13; (vii) Pupil Teacher Ratio (PTR) is projected to move from 47 in 2010/11 to 46 in 2012/13; (viii) Learning achievement tests in early grade reading and its equivalent in mathematics are to be introduced and analysis of test scores will be used to monitor changes in quality of the system and inform policy decisions as well as action. Pre-primary education: (i) gross enrollment rate (GER) will decrease from 128 percent in 2010/11 to 116 percent in 2012/13, as increasing numbers of over-aged children are removed or prevented from entering the level. Junior secondary education: (i) grade 7 access rate is projected to increase from 49 percent in 2010/11 to 54 percent in 2012/13; (ii) gross enrollment rate (GER) will increase from 47 percent in 2010/11 to 52 percent in 2012/13; (iii) ratio of girls will increase from 82 percent in 2010/11 to 85 percent in 2012/13 as more girls are persuaded to continue with their education; (iv) repetition rate will decrease from 6 percent in 2010/11 to 5 percent in 2012/13; (v) survival rate will increase from 81 percent in 2010/11 to 83 percent in 2012/13; (vi) completion rate will increase from 40 percent in 2010/11 to 45 percent in 2012/13; (vii) average number of hours of instruction per week will increase from 22 hours in 2010/11 to 22.5 hours in 2012/13. Senior secondary education: (i) grade 10 access rate will increase from 30 percent in 2010/11 to 35 percent in 2012/13 as more students complete junior high school and are motivated to move beyond basic education; (ii) ratio of girls to boys enrolled will increase from 74 percent in 2010/11 to 78 percent in 2012/13; (iii) survival rate will increase from 82 percent in 2010/11 to 83 percent in 2012/13; (iv) completion rate will improve from 25 percent in 2010/11 to 29 percent in 2012/13; (v) average number of hours of instruction per week will increase from 25 hours in 2010/11 to 26 hours in 2012/13. Higher education: (i) Higher education students per thousand of population will gradually increase from 802 in 2010/11 to 803 in 2012/13 as greater attention is given to improving quality and controlled growth; (ii) Improve on the regulatory and governance mechanisms for higher education; (iii) improve on the funding mechanisms for higher education; (iv) Improve on the quality of the teaching staff; (v) Put in place mechanisms that result in programs on offer and research conducted in institutions of learning being relevant to the needs of the society. Financing the medium term plan (2010/11-2012/13) 33. The table below estimates the total recurrent and investment financing gap for basic education. Based on the scenario proposed in the medium term plan, a financing gap has emerged in the amount of US$1.5 million for recurrent costs and US$48.1 million for investment costs. The CF is projected to cover approximately 20 percent of the overall program costs.

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Table 40: ESP Medium Term Plan Costs and Financing, 2010/11-2012/13* ESP COST AND FINANCING: BASIC EDUCATION (US$ millions)
2010/11 TOTAL COST BASIC EDUCATION Investment Recurrent TOTAL RESOURCES BASIC EDUCATION Investment Recurrent Government Investment Recurrent Donors Investment Recurrent FINANCING GAP BASIC EDUCATION Investment Recurrent Financing gap % of total cost Recurrent gap % of total gap Donor financing % of total cost (committed) Donor financing % of total cost if gap is filled As % of GDP Total Cost Government Resources Donor resources (committed) Donor resources if gap is filled Recurrent As % of Public Recurrent Expenditure 8.9% 3.2% 3.9% 5.7% 10.7% 8.5% 3.3% 3.6% 5.2% 11.2% 8.1% 3.2% 3.2% 4.8% 12.4% 19.2% 7.4% 8.0% 11.8% 26.6% 8.5% 3.3% 3.6% 5.2% 8.9% 71.2 45.8 25.4 55.1 29.7 25.4 28.6 5.2 23.4 26.5 24.5 2.0 16.0 16.1 0.0 23% 0% 37% 60% 2011/12 73.6 44.2 29.4 58.5 29.1 29.4 32.0 5.6 26.4 26.5 23.5 3.0 15.1 15.0 0.0 20% 0% 36% 57% 2012/13 80.8 45.0 35.9 62.3 27.9 34.4 35.8 5.4 30.4 26.5 22.6 4.0 18.5 17.0 1.5 23% 8% 33% 56% Total 225.6 134.9 90.7 176.0 86.8 89.2 96.4 16.2 80.2 79.6 70.6 9.0 49.6 48.1 1.5 22% 3% 35% 57% Annual Average 75.2 45.0 30.2 58.7 28.9 29.7 32.1 5.4 26.7 26.5 23.5 3.0 16.5 16.0 0.5 22% 3% 35% 57%

*Note: Basic Education includes pre-primary, primary, JHS and adult literacy.

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Annex 10: Safeguard policy issues LIBERIA: Fast Track Initiative Grant for Basic Education OP 4.01 Environmental Assessment 1. From an environmental and social safeguards point of view, this project is a Category B project. This is because the environmental and social impacts are expected to be minimal, sitespecific and manageable to an accepted level. There are two World Bank safeguards policies applicable to the project: OP 4.01 (Environmental Assessment) and OP 4.12 (Involuntary Resettlement) due to potential negative environmental and social impacts related to the construction of schools. 2. To address the potential negative environmental and social impacts, the project prepared an Environmental and Social Management Framework (ESMF) because the precise locations of the schools and the potential localized impacts could not be identified prior to appraisal. The ESMF will be applied by qualified personnel from the Environment Impact Assessment Unit of the National Environment Agency, who will be consulted by the Ministry of Education at the time when plans for the construction of schools are made to ensure that potential environmental and social impacts are identified, assessed and mitigated appropriately. Thus, the ESMF (i) describes steps 1-7 of the environmental and social screening process; (ii) includes an environmental checklist to be applied/amended by qualified personnel as appropriate; (iii) provides generic draft terms of reference for an environmental analysis, should one be required; and (iv) it summarizes the Banks operational policies to ensure that these are taken into account during project implementation as required. Furthermore, the ESMF includes provisions, including costs estimates, for environmental management capacity building to ensure effective implementation of the ESMF; these costs will be incorporated into the project cost tables. To ensure adequate monitoring of the implementation of the ESMF and the RPF, the Recipient institution responsible for environmental management, i.e. the National Environment Agency, will be charged with the responsibility of supervising implementation and sharing their findings with the Bank and other interested parties. Environmental Issues and Impact 3. These impacts are likely to be very minor with regard to resettlement as the project will focus on sites with makeshift structures that need to be rebuilt. Thus most of the construction would be rehabilitation of existing schools. In such instances, the new structure can be located close enough to the original structure so that acquiring new land will not be necessary. This means that the same plot of land would be used. Also, communities in Liberia most often see the donation of communal land to the government for school sites as one of the inputs that they can make to school construction. Possible Negative Environmental Impacts from Component One 4. The ESMF identified the major issues and impacts associated with the implementation of the project. The construction of new buildings, rehabilitation and reconstruction of schools to 121

will have potential impacts on the following environmental components during the preconstruction, construction and post construction phases: physical environment; environmental quality; ecological resources; and health and safety. As there may be new land acquisition involved, involuntary resettlement issues will be addressed. There may also be squatters at sites perceived to be abandoned. Two potential indirect impacts arise from: 5. (a) Migration into the project area by people associated with the project (relations of pupils, teachers, workers etc). There are also petty traders and other persons who may be dependent on the social services provided (Water and Sanitation facilities). The classrooms may also be used for meetings; (b) population increase will put pressure on available social services in the villages/towns. There may be antisocial behavior which may lead to conflicts. There is also emotional attachment to permanent loss of land for project activities. The impacts depend on the scale and extent of the project. 6. Mitigation measures include: (i) the project should be done on land that is not purchased by looking into the following alternatives: (a) construction at old sites; (b) construction on Government/Community land; (ii) increase in number of persons from among communities providing local labor; (iii) increase in use of materials obtained locally; (iv) consultative meetings at various stages in the implementation of the project. Capacity Building 7. A qualified firm of civil works consultants (selected through an International Competitive Bidding process) is employed to both manage and supervise the construction program for all types of schools. The consultants should however not only supervise the construction of the schools but during the construction process they should use and train local engineers and architects in the management and supervision of the construction program so that at the end of the CF there will be a number of competent Liberian civil works professionals capable of managing and supervising similar projects in the future. Moreover, the civil works firm will monitor and supervise all construction and write a summary report on a quarterly basis. The Department of Planning and the Minister of Education will be responsible for selecting the school sites based on the EMIS and school mapping. The Environmental Protection Agency (EPA) will be consulted to ensure that all safeguards issues are addressed (environmental impact and resettlement policy framework). 8. Due to limited capacity within the country to plan and implement the measures described in the ESMF, the borrower should undergo training on environmental management as is described in the ESMF Section 10 on Capacity Building. Capacity building training needs section of the ESMF, identified two categories of stakeholders: 1) Managers including officials of MOE, Ministry of Public Works, District Environmental Officer NGOs and Service Providers; and 2) Local Communities including Clan Chiefs, Elders, Environmental Committees, Area committees and Youth groups. 9. Training programs shall be held on separate occasions for each of the two categories. The training program for managers in category (i) shall be held in Monrovia and shall consist of one complete module of nine days. Each complete module of nine days will cost USD 9,000. The

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cost of this training, securing of environmental permits, mitigation, and monitoring are included in the overall project costs. OP 4.12 Involuntary Resettlement 10. OP 4.12 was triggered due to the potential need for land acquisition which might lead to the loss of assets, loss of shelter, loss of access to economic assets or loss of livelihood, requiring that affected persons be compensated and/or resettled. To address potential negative social impacts due to land acquisition, the project prepared a Resettlement Policy Framework (RPF) and Environmental and Social Management Framework (ESMF) which were disclosed in Liberia and at the Banks InfoShop prior to appraisal of the EFA-FTI CF Project. Safeguards Reporting 11. In cases of any activity requiring the adoption of an Environmental and Social Management Plan (ESMP) or Resettlement Action Plan (RAP), the Borrower will (a) prepare them in accordance with the ESMF or RPF, as the case may be, (b) submit to the World Bank for review and approval, (c) adopt, prior to implementation of the activity and, (d) take such measures as necessary or appropriate to comply with the requirements of the ESMP or RAP. 12. Without limitation upon its other reporting obligations under the Grant Agreement, the Borrower will regularly collect, compile and submit to the World Bank on a quarterly basis reports on the status of compliance with the ESMF, RPF, and ESMPs and RAPs, if any, giving details of: (a) measures taken in furtherance of such ESMF, RPF, and ESMPs and RAPs, if any; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of such ESMF, RPF, and ESMPs and RAPs, if any; and (c) remedial measures taken or required to be taken to address such conditions.

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Annex 11: Project Preparation and Supervision LIBERIA: Fast Track Initiative Grant for Basic Education Planned July 30, 2009 Actual July 30,2009 August 7, 2009 August 7, 2009 March 1, 2010 July 22, 2010

PCN review Initial PID to PIC Initial ISDS to PIC Appraisal Negotiations Planned date of effectiveness Planned date of mid-term review Planned closing date

August 23, 2010 March 31, 2012 June 30, 2013

Institutions responsible for the preparation of the project: Ministry of Education Ministry of Finance Ministry of Planning Bank staff and consultants who have worked on the CF program Name Title Unit Nathalie Lahire Task Team Leader /Education Economist AFTED Samuel Bruce-Smith Financial Management Specialist AFTFM Norosoa Andrianaivo Team Assistant AFTED Maxwell Dapaah Financial Management Specialist AFTFM Albert Dupigny Education Expert AFTED Priscilla A. Elms HD consultant AFTED Victoria Gyllerup M&E specialist AFTRL Daniela A. Braganca Counsel LEGAF Junqueira Anthony Mensa-Bonsu Procurement Specialist AFTPC Michelle Neuman Early Childhood Development Specialist AFTED Nyaneba Nhrumah Environmental and Safeguard Specialist AFTEN Rose-Claire Pakabomba Team Assistant AFTED Jonathan David Pavluk Senior Counsel LEGAF Kristine Schwebach Social Development and Safeguard Specialist AFTCS Atou Seck Sr. Education Economist AFTED Rajiv Sondhi Sr. Finance Officer CTRFC Andy Tembon School Health Specialist AFTHE Nigel Wakeham Architect, Consultant AFTED Bank funds expended to date on project preparation: Bank resources: Staff time (approximately 10 weeks) EPDF: US$250,000

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Estimated annual supervision cost: US$100,000

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Donor partners who participated in discussions of this program Name Institution Stella Kaabwe UNICEF Juan-Jose Casanova -Arasa European Union Luann Gronhovd USAID Stevenson Seidi UNESCO Aleesha Taylor Soros/OSI Rosio Godomar WFP

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Annex 12: Sector Policy Letter LIBERIA: Fast Track Initiative Grant for Basic Education Education Sector Policy Letter Republic of Liberia A Commitment to Making a Difference A Program to Develop and Reform Education in Liberia 2010 2020 1. Background and Context The period December 1989 to 2003 was one of relative chaos and mayhem in Liberia. Education in particular was brought to its knees. School age children and youths were conscripted by all fighting factions and became both victims and perpetrators of violence. Educational institutions were targeted and many were destroyed or extensively damaged. Teachers abandoned their schools and became fighters, displaced or refugees. Such education as was available was subject to sudden and frequent pro-longed interruptions. Notwithstanding, this period saw the passage of an Education Law together with a Master-plan for education and an Education For All Action Plan. Sadly, neither of the latter documents was implemented because of the prevailing situation at the time of their completion and both are now obsolete. This period also saw large scale population shifts as non-combatants searched for places of relative safety. The capital city of Monrovia in particular witnessed a significant population increase that has remained even with the advent of peace. The end of Year 2005 saw the holding of elections that heralded in the present government. Prominent in the agenda of the new government is the establishment of a framework that would allow implementation of the requirements of the 2002 Education Law focusing in particular on those that concern primary education. In this regard, a plan titled the Liberia Primary Education Recovery Program (LPERP) was prepared and free education introduced at the primary level. In Year 2007, Liberia submitted a request to the EFA-FTI Partnership for membership and funds to support implementation of the LPERP. Membership was granted to Liberia but support from the Catalytic Fund was not approved. Noting however the need of people of Liberia and the importance of implementing the LPERP, UNICEF gave to Liberia funds that it had received from the Netherlands. These funds were to be used to facilitate LPERP implementation and to allow time for preparation and submission of a sector plan. This sector plan is now ready. 2. Sector Coordination The Government of Liberia has launched a process of far reaching education reform starting with the Liberia Primary Education Recovery Program (LPERP), guided by the Poverty Reduction Strategy (PRS) and the recent completion of the 10-year Education Sector Plan 2010-2020 (ESP). There is need for improved coordination as the sector attracts greater funds and more partners. This demands an institutional arrangement that provides a clear structure, with clear policy and intervention monitoring tools as well as dedicated periodic evaluation. In order to effectively address the priorities of the ESP, the government intends to strengthen the institutional arrangements for education sector management. A Sector Coordination Team will be created with additional expertise to augment that already possessed by the MOE. This will 127

enhance the capacity of the MOE to perform its role effectively. It will also contribute to increased MOE ownership and enable it to better lead the Education Sector partnership as well as the development of the education sector of Liberia. As part of its functions, the Sector Coordination Team will support the Executive Management Team to monitor and advice on the utilization of external funds such as the EFA FTI CF and the existing Education Pooled Fund (EPF) in a manner that will enhance the work of the Education Sector Development CommitteeExecutive Board (ESDC-EB) mentioned below. The Education Sector Development Committee- Executive Board (ESDC-EB) will serve as the oversight body to oversee the implementation of the ESP. The ESDC-EB will be chaired by the MOE. This body will provide oversight of the policies laid out in the ESP by providing a forum for policy dialogue and decision at the macro level. The ESDC-EB will include representatives from the Ministries of Finance and Planning, as well as donor representatives. 3. The Priorities of the Government of Liberia The overall priority of the Government of Liberia (GOL) is to reduce poverty and to provide the populace with a better life. In this regard it has developed a Poverty Reduction Strategy (PRS). In the development of the PRS, large scale national consultations were held. The consultations showed the populace to regard education as a sector deserving of the highest priority together with job creation, infrastructure and health. The PRS states the GOLs intention to build a public education system that provides better local control over schools, raises the quality of teachers, and promotes learning achievement among all students and gives as its main goal for education to improve access to and the quality of relevant education at all levels, emphasizing the availability of Universal Primary Education and recognizing the needs of the disadvantaged, especially girls. The Education Sector Plan (ESP) is fully aligned with the PRS. It further sharpens the focus of interventions in education and gives the main priority of government in the sector as significant progress towards the achievement of MDG and EFA Goal No.2 by 2015. In this regard, the goal of ensuring that all children (especially girls, individuals with special needs, street children, children with manageable emotional behavioral disorders and learning disabilities) start at the right age and complete primary level education of a minimum stipulated quality is pre-eminent. Cognizant of the requirements for and consequences of success in making significant progress towards the achievement of MDG and EFA Goals No. 2, the Government of Liberia also prioritizes improving the quality of the teaching staff and programs at the primary and postprimary levels as well as increasing access, retention and completion at all levels but with a special focus at the primary and junior high school (basic education) levels. With knowledge of the fact that a significant number of individuals only complete primary or basic education and a lack of manpower with needed technical skills, the GOL is also prioritizing a multi-sectoral approach that would ensure an increase in the relevance and availability as well as an improvement in the quality of skills training and TVET as a whole. Given that the success of interventions in education is dependent on the quality of oversight and management provided, high priority is also given to developing the institutional capacity for management at the central, regional and local levels.

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4.

Policies and Key Strategies for Education Sector Development

4.1 Pre-Primary / Early Childhood Development Sub-Sector In Liberia, pre-primary education is a sub-set of Early Childhood Development (ECD). The main policy goal of the latter is to ensure that all children achieve their full potential and are ready for primary schooling by providing quality, integrated ECD services and programs for all children from zero to age 5 through an inter-sectoral collaborative approach. The specific policy objectives are: i. To increase access to early childhood development services for children aged 0 5years targeting the poor and most vulnerable. ii. To improve the quality of all early childhood development services and programs in the country. iii. To support greater community and family involvement in provisions and programs for those aged 0 to 5 years iv. To establish mechanisms for greater collaboration and co-ordination between relevant ministries, agencies and communities, in order to maximize the impact and effectiveness of ECD programs. The strategy related actions of highest priority in the short and medium term at this level are: Abolition of testing of children to determine their eligibility to enter 1st grade in i. order to free up spaces in pre-primary for younger children ii. Production and implementation of a comprehensive policy on early childhood development covering education, health, nutrition, protection, water and sanitation Preparation of a minimum standard document for day-care centers and iii. educational institutions and encouragement of partners and providers in all districts to establish provision for early childhood development Development of a teacher training program for the pre-primary level and a iv. requirement for all teachers at this level to obtain a qualification in pre-primary teaching or early childhood development v. Sensitization of traditional leaders, local government officials, providers, proprietors and institutions on the importance of the early years and devise strategies to expand low-cost, quality ECD options in their communities. 4.2 Primary Sub-Sector The main policy goal for primary level education is the provision of resources necessary for all school age children, and others so desiring, to receive and complete primary education of a quality that adequately prepares them for the next stage/phase of living and learning. The all is inclusive of special needs and street children as well as those having manageable emotional behavioral disorders and learning disabilities The specific policy objectives for primary education are: i. To make the provisions necessary for all children (especially girls, individuals with special needs, street children, children with manageable emotional behavioral disorders and learning disabilities) start at the right age and complete primary level education of a minimum stipulated quality 129

ii. iii. iv.

v.

To put in place provisions and structures such that no individual is denied the possibility of primary education because of age and/or circumstances To put into operation a strategy and framework for greater efficiency and cost effectiveness in primary schooling To make those provisions and arrangements that result in the school environment being clean, sanitary, violence-free and sufficiently conducive for all students, especially girls, to feel safe and at ease To reduce worm infestation as well as the possibility of staff and students at the primary level contracting and/or spreading HIV/AIDS

The strategy related actions of highest priority in the short and medium term at the primary level are: i. The immediate cessation of entrance examinations for grade 1 applicants and cessation of the refusing of entry to applicants of 6 years of age and above when space for admission is available. ii. Provision of training for more primary school teachers in order to achieve a PTR of 40:1 by 2020. At the same time this move should lower the Repetition Rate from 7 to 2 percent by 2020 and increase the Proxy Completion Rate from 62 to 100 percent by 2020 iii. Production of a rehabilitation and construction plan and strategy and rehabilitation/construction of schools guided by latest Education Management Information System and Population Census numbers as well reports from District Education Officers and partners. This should make possible the accommodation of an estimated additional 90,600 students in public and community schools in the period 2010 to 2015. iv. Implementation and enforcement of a school charges policy of which fee abolition and a system of school grants is an integral part and provision of sponsorship or in-kind contribution (e.g. uniforms) targeting students in extreme circumstances. v. Review and revision of the primary school curriculum so that it is relevant, appropriate and addresses major content and quality concerns including local language issues. This is to be followed by the introduction of the revised curriculum to schools together with needed teaching/learning materials, including the provision and supply of primary textbooks and relevant teacher guides. Development of a national assessment system to track and monitor progress in vi. learning outcomes. 4.3 Secondary Sub-Sector The main policy goal for secondary level education is the provision of resources that would allow all school age children, and others so desiring, to receive and complete a junior high school program of quality. Further, that as many as can benefit and so wish, move on to and complete a diversified broad base high quality senior high school program or its equivalent in readiness for the next stage/phase of living and learning. The specific policy objectives for secondary education are: i. To increase access and the transition rate from primary to junior high school and from junior high to senior high school; ii. To increase the retention and completion rates of both levels of secondary education; iii. To increase the number of girls accessing and completing secondary schooling; 130

iv. v.

vi.

To improve the quality of secondary education and the conditions of teaching and learning; To make those provisions and arrangements that result in the school environment being clean, sanitary, violence-free and sufficiently conducive for all students, especially girls, to feel safe and at ease; To reduce worm infestation as well as the possibility of staff and students at the secondary level contracting and/or spreading HIV/AIDS;

The strategy related actions of highest priority in the short and medium term at the secondary level are: 4.3.1 Junior High School Level i. Review and revision of the JHS teacher training program and the training of more teachers; ii. Production and implementation of a classroom rehabilitation and construction plan and strategy. The intention being the provision of structures where none presently exist for students completing primary education as well as the provision of accommodation for increasing numbers of students transiting from the primary level; iii. Production and implementation of a minimum standard guidelines for JHSs; iv. Production and implementation of a curriculum that is relevant, appropriate and addresses major content and quality concerns; v. Provision of student texts and teacher guides; 4.3.2 Senior High School Level Same as those for the junior high school level except for (i) above which should read: i. Establishment of a scheme to attract more graduates into the teaching profession; 4.4 Technical Vocational Education and Training (TVET) The main policy goal for TVET is the provision of increased opportunities for the acquisition of relevant and appropriate technical and vocational education and skills training of quality. In this regard, a great deal of attention will be paid to ensuring that the TVET system not only meets present private sector demand but anticipates and responds to changes. It is for this reason that the objective of improving the quality and relevance of TVET and the strategy based action of a national labor market and employment survey followed by development of new TVET curricula are prioritized. Even whilst the frameworks are being developed, strengthening of key institutions will take place through, amongst other things, provision of urgently needed equipment and logistics for programs known to be addressing immediate private sector needs. At the same time, establishment of links between key institutions and private business/industries will be fostered. The specific policy objectives for TVET are: i. To bring together Ministries and agencies vested with responsibility for TVET in Liberia so that they are able to work collaboratively and cooperatively; ii. To improve the quality and relevance of TVET nationally and build links between TVET and secondary education; iii. To increase access to TVET programs nationally through the development of costeffective mechanisms/strategies; 131

The strategy related actions of highest priority in the short- and medium-term for TVET are: i. Establishment of an inter-sectoral governing body and secretariat responsible for regulating TVET, and development of a training fund; ii. Drafting and implementation of a TVET policy; iii. Conduct national labor market and employment survey and develop new TVET curricula based on findings; iv. Establishment of minimum standards for TVET institutions and regular monitoring and evaluation of TVET institutions; v. Rehabilitation, construction and equipping of strategically sited TVET institutions; 4.5 Teacher Education The main goal for teacher education is the provision of competent, well-qualified and motivated teachers for all educational institutions in Liberia. The specific policy objectives for teacher education are: i. To provide adequate training and professional development programs for teachers at the pre-primary to tertiary levels; ii. To put in place arrangements and a framework that result in teachers becoming motivated and supported to carry out their responsibilities; iii. To make provisions for the deployment of teachers to rural and under-served areas iv. To upgrade the status of the teaching profession in Liberia; v. To increase the number of females in the teaching profession; vi. To improve efficiency in teacher management; The strategy related actions of highest priority in the short and medium term for teacher education are: i. Development of curriculum for training of teachers at the pre-primary and the secondary levels; ii. Development and implementation of an in-service program to upgrade and update trained teachers; iii. Development and implementation of an affordable and sustainable distance education program for serving untrained teachers; iv. Assignment of teachers to specific school levels and abolishing multi-level teaching; v. Enforcement of a minimum number of hours per week to be taught by full time teachers; vi. Development and implementation of conditions of service and a salary scale for teachers independent of that of other civil servants; vii. Development and introduction of a remote area and special subject allowance for teachers; viii. Development of a scheme to attract and retain more females in the teaching profession; 4.6 Higher Education The main goal for higher education is better regulation and monitoring of higher education in Liberia whilst ensuring at the same time an improvement in the quality and relevance of programs and institutions of higher learning. Linked with this is the development of the research capacity of universities. The specific policy objectives for higher education are: 132

i. ii. iii. iv. v.

To improve on the regulatory and governance mechanisms for higher education; To improve on the funding mechanisms for higher education ; To improve on the quality of the teaching staff; To put in place mechanisms that result in programs on offer and research conducted in institutions of learning being relevant to the needs of the society; To reduce inequities in access to higher education;

The strategy related actions of highest priority in the short and medium term for higher education are: i. Strengthening of the capacity of the National Commission for Higher Education to enable it to better perform its role and responsibilities; ii. Conducting of a study on programs/courses on offer at universities, research capabilities, as well as selection criteria for admission with a view to assessing their quality, relevance and value and implementation of its recommendations; iii. Conducting of an assessment on the competence, qualifications and relevant experience of teaching staff in institutions of higher education with a view to improving staff quality iv. Establishment of ties between foreign universities of quality and national institutions with a view to setting up program improvement, staff training and staff exchange arrangements; v. Provision of targeted scholarships in favor of programs producing graduates needed by the nation; vi. Conducting of a critical analysis of the policies on higher education with a view to revising and updating them; vii. Development of partnerships in the funding of higher education; 5. Management and Financing of the Education System

5.1 Management The extent to which improvements in the education system can be achieved is dependent on the management and funding provided. There are shortcomings in what presently exists and in this regard governance and management goals and objectives have been revisited and revised. The main medium term goal for governance and management of the education system is the establishment of processes through which the Ministry of Education is to manage an efficient and accountable decentralized system able to deliver relevant learning and training opportunities of quality. The specific policy objectives for governance and management are: i. ii. iii. iv. To develop the institutional capacity for management at the central, regional and local levels; To increase planning and management capacity; To increase accountability and transparency throughout the education system; To strengthen the decentralized system of governance;

The strategy related actions of highest priority in the short and medium term for governance and management are:

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i. ii. iii. iv. v. vi. vii.

Development and utilization of an effective human resources management strategy and error-free database; Checking and making copies of their TOR and job descriptions available to all MOE personnel; Conduct a skills audit to ensure that personnel have the necessary skills and qualifications to undertake the jobs for which they are paid; Provision of training that would enable all personnel to perform their roles and responsibilities efficiently and effectively; Development and utilization of a performance appraisal system; Development and utilization of an effective system of monitoring, supervision and reporting; Development of decentralization policy and strategy with built-in transparent accountability mechanisms;

Good management is built upon good monitoring and supervision. Many of the challenges facing education in Liberia presently can be directly traced to a deficiency in the level and quality of monitoring and supervision of the system. In this regard, the goals and objectives for monitoring and supervision have been re-visited and revised. The main medium term goal is now - to develop monitoring and supervisory mechanisms that will provide useful information to guide the Ministry of Educations management of the system and its actions. The specific policy objectives are: i. To clarify the roles and responsibilities of different institutions and department at national and local levels in monitoring and supervision; ii. To strengthen the capacities of district education offices and county education offices in monitoring and supervision including classroom assessment of student learning; iii. To strengthen record keeping capacity at the school and community level; iv. To develop mechanism for monitoring sector plan progress and providing feedback; v. To improve the EMIS and the analysis and use of EMIS data; The strategy related actions of highest priority in the short and medium term for monitoring and supervision are: i. Development of simple tools for monitoring and supervision of educational institutions and teaching; ii. Establishment of school level management committees in each school; iii. Provision of training for county and district education officers on monitoring and supervision; iv. Provision of necessary equipment and logistics for monitoring and supervision; v. Development of simple forms/tools for record keeping at the school level; vi. Training of relevant staff in county and district education offices on data entry, analysis and reporting of information collected from educational institutions; vii. Establishment of a quality assurance unit; 5.2 Financing Education in Liberia is funded by the government, households and donors. Government revenue has been adversely affected by the relatively small number of individuals able to pay taxes and 134

the fact that some of the large income-generating businesses are just re-starting operations. Additionally the global economic downturn has hit Liberia hard and actual and projected revenue has declined steeply. Households have been spending significant amounts on education. Given the poverty status of Liberian households as indicated in the Poverty Reduction Strategy (PRS) document, it is apparent that many households have reached a limit on the amount that can be spent on education. In this regard, the government is to increase its spending on education in order to ensure that significant progress is made towards the achievement of universal access and completion of primary education by 2015. The Government of Liberia is committed to increasing its allocation to education. From 2010 to 2012, the recurrent education budget (excluding debt service) will increase from 14 to 16 percent and will reach 18 percent in 2015. The priority of the government is basic education but as a first step every effort will be made to get near to universal access and completion of primary schooling by 2015. The share allocated to primary education is projected to rise from 39.2% in 2008 to 41 percent in 2010, 43 percent in 2012 and reach 45 percent in 2015. In order to ensure that sufficient funds are available the government intends to enforce relevant provisions in the Education Law to supplement its normal allocations to education. Even so, donors/partners are expected to support the efforts of government by filling the financing gaps that may exist after it has provided all of the funds at its disposal. To the extent that it is possible, existing in-country donor financing management mechanisms acceptable to the government, FTI and the supervising agency for the Catalytic Fund will be employed for donor funds received in support of implementing the sector plan. The government, its partners and the proposed supervising agency have considered use of the existing pooled fund mechanism employed for the implementation of the LPERP. However, in the absence of an audit of the pooled fund, it has been concluded that it would be more prudent to proceed with a project financing mechanism for support received from the Catalytic Fund. When the audit of the pooled fund is completed the financing management mechanism in use may be revisited if warranted. Ultimately sectoral financing/targeted budget support is envisioned but is not feasible at this moment in time. Additional details on the donor financing management mechanism proposed can be found in the project document for the Catalytic Fund application.

6.

Targets and Indicators

With the Government of Liberia able to fulfill its financial commitments to education and its partners able to provide the necessary support to bridge any financing gap, progress towards the achievement of stated goals and targets will be measured with the use of a number of indicators. Some of these indicators are stated below. 6.1 Primary Education The target of highest priority for the period up to 2020 is 100 percent of 6 to 11 year olds attending and completing primary schooling of quality. Ideally, this target should be achieved by 2015 but since it has not been possible to get all 6 year olds into grade 1 in the 2009/10 academic

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year, a new target date of 2020 has been set. The key indicators employed for measuring progress towards achievement of this target are: Access Indicators: Intake and enrollment rates; ratio of girls to boys enrolled. The gross intake rate (GIR) is projected to move from 109 percent in 2010 to 106 percent in 2012, 100 percent in 2015 and to maintain this rate up to 2020. At the same time, the net intake rate (NIR) is to move from 23 percent in 2010 to 38 percent in 2012, 61 percent in 2015 and 100 percent in 2020. The gross enrollment rate (GER) is projected to move from 94.6 percent in 2010 to 95.2 percent in 2012, 96 percent in 2015 and 102 percent in 2020. At the same time, the net enrollment rate (NER) is to move from 46 percent in 2010 to 57 percent in 2012, 73 percent in 2015 and 100 percent in 2020. The ratio of girls to boys enrolled in primary schools is projected to move from 90 percent in 2010 to 91 percent in 2012, 93 percent in 2015 and 97 percent (gender parity) in 2020. Quality Indicators: Repetition and proxy completion rates; pupil teacher ratio (PTR); learning achievement scores. The repetition rate is projected to drop from 6 percent in 2010 to 5 percent in 2012, 4 percent in 2015 and 2 percent in 2020. The completion rate is projected to move from 68 percent in 2010 to 75 percent in 2012, 84 percent in 2015 and 100 percent in 2020. The pupil teacher ratio (PTR) is projected to move from 47 in 2010 to 46 in 2012, 44 in 2015 and 40 in 2020. Learning achievement tests in early grade reading and its equivalent in mathematics/number work are to be introduced during the lifetime of the sector plan. After initial preparatory work, trial runs and fine-tuning, these assessments will take place annually. Analysis of test scores will be used to monitor changes in quality of the system and inform policy decisions as well as action. 6.2 Other Levels of Education Similar indicators to that for primary education are used for the other levels. Given below are some of the key indicators employed. Access Indicators Pre-primary gross enrollment rate projected to decrease from 141 percent in 2008 to 128 percent in 2010, 116 percent in 2012, 97 percent in 2015 and 65 percent in 2020 as increasing numbers of over-aged children are removed or prevented from entering the level. Grade 7 (junior high school) access rate projected to increase from 49 percent in 2010 to 54 percent in 2012, 62 percent in 2015 and 75 percent in 2020 as more children complete primary education and continue schooling Junior high school gross enrollment rate projected to increase from 47 percent in 2010 to 52 percent in 2012, 60 percent in 2015 and 73 percent in 2020.

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Junior high school ratio of girls to boys enrolled projected to increase from 82 percent in 2010 to 85 percent in 2012, 89 percent in 2015 and 97 percent in 2020 as more girls are persuaded to continue with their education. Grade 10 (senior high school) access rate projected to increase from 30 percent in 2010 to 35 percent in 2012, 41 percent in 2015 and 54 percent in 2020 as more students complete junior high school and are motivated to move beyond basic education. Senior high school ratio of girls to boys enrolled projected to increase from 74 percent in 2010 to 78 percent in 2012, 85 percent in 2015 and 97 percent in 2020 as girls are presented with increasing opportunities and reasons to continue with their education. Higher education students per thousand of population projected to gradually increase from 802 in 2010 to 803 in 2012, 804 in 2015 and 807 in 2020 as greater attention is given to improving quality and controlled growth. Quality Indicators Junior high school repetition rate projected to decrease from 6 percent in 2010 to 5 percent in 2012, 4 percent in 2015 and 2 percent in 2020. Junior high school survival rate projected to increase from 81 percent in 2010 to 83 percent in 2012, 86 percent in 2015 and 90 percent in 2020. Junior high school proxy completion rate projected to move from 40 percent in 2010 to 45 percent in 2012, 53 percent in 2015 and 67.5 percent in 2020. Junior high school average number of hours of instruction per week projected to increase from 22 hours in 2010 to 22.5 hours in 2012, 23.4 hours in 2015 and 25 hours in 2020. Senior high school survival rate projected to increase from 82 percent in 2010 to 83 percent in 2012, 86 percent in 2015 and 90 percent in 2020. Senior high school proxy completion rate projected to move from 25 percent in 2010 to 29 percent in 2012, 36 percent in 2015 and 49 percent in 2020. Senior high school average number of hours of instruction per week projected to increase from 25 hours in 2010 to 26 hours in 2012, 27 hours in 2015 and 30 hours in 2020. 6.3 Tracking the Indicators The indicators are to be tracked through information from financial entities such as the Ministry of Finance, Central Bank of Liberia and IMF as well as data on education collected at the school, district and county level. These will be used to inform and update a financial simulation model that has already been developed. This model will be used to provide information on changes in all the indicators and to guide any changes in policy needed to keep the sector plan on track. The public will be kept informed through regular press and media reports and programs as well as annual reports disseminated at Sector Reviews planned for each year.

7.

Conclusion

The Government of Liberia is committed to providing the people of Liberia with the education that meet the needs expressed during national Poverty Reduction Strategy and Education Sector Plan consultations. In this regard it will increase the percentage of the budget allocated to the sector. At the same time it is cognizant of the fact that the increased funding will not meet all of 137

the important needs of the sector as outlined in its education plan and that the support of its partners and donors is needed to bridge the funding gap. It is worth noting that the magnitude of the funding gap is such that overall dependency on external support is only marginally increased taking into account the anticipated growth in the Liberian economy following the recent global financial downturn. Overall, the Government of Liberia is satisfied with its sector plan for education for the period 2010 to 2020 and the undertaking by its partners to provide support for transforming the plan to reality. Having gone through almost a decade and a half of chaos and mayhem and having gone without the education that could lift them out of the depths of poverty for such a long time, the people of Liberia deserve no less than the concerted efforts of government and partners to give them hope for a better and brighter future.

Minister of Education

Minister of Finance

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Annex 13: Documents in the Project File LIBERIA: Fast Track Initiative Grant for Basic Education 1. Joint Assistance Strategy, 2009 2. Poverty Reduction Strategy, 2008 3. Public Expenditure Management and Financial Accountability Review, 2009 4. Country Status Report, 2009 5. Education Sector Plan, 2009 6. Education Sector Review Report 2009 7. Civil Service Reform Program Revised Year 1 Priority Action Plan 8. Draft National Policy on Decentralization and Local Governance 9. National School Census Report 2007/8 10. Professional Standards for Teachers in Liberia 11. Priorities for Education Sector Recovery in Post-Conflict Liberia, FY 2007/08 FY 2011/12, 12. Liberian Primary Education Recovery Program (LPERP) Prepared for the Fast Track Initiative, MOE, 2007 13. Teacher Issues in Liberia Draft Report, Government of Liberia/World Bank, January 2008 14. National Stakeholders Consultative Conference on Tertiary Education in Liberia Draft Report, Government of Liberia/UNESCO, 2007 15. Early Childhood Education in Liberia, Government of Liberia and OSIA, 2009 16. Assessment of the ALP in Liberia implemented by UNICEF. Sue Nicholson, 2007

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Annex 14: Statement of Loans and Credits LIBERIA: Fast Track Initiative Grant for Basic Education
Difference between expected and actual disbursements Cancel. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Undisb. 4.16 45.73 7.38 33.91 2.08 5.77 12.92 111.95 Orig. 0.00 0.67 1.09 -1.46 -0.72 1.73 -22.62 - 21.31 Frm. Revd 0.00 0.00 0.00 0.00 0.00 0.00 -8.81 - 8.81

Original Amount in US$ Millions Project ID P113450 P113099 P107248 P104716 P105683 P105282 P100160 FY 2009 2009 2008 2008 2007 2007 2006 Purpose LR - RRSP2-Budget Support LR-Urban and Rural Infra. Rehab. Project LR-Econ. Gov. & Institut. Ref. TAL (FY08 LR-Agric. & Infra. Dev. Proj. ERL (FY08) LR-Comm. Empowerment II LR-Health Systems Reconstr. LR-Emergency Infrastructure ERL (FY06) Total: IBRD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 IDA 4.00 44.00 11.00 53.00 5.00 8.50 54.70 180.20 SF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 GEF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LIBERIA STATEMENT OF IFCs Held and Disbursed Portfolio In Millions of US Dollars

Committed IFC
FY Approval Company Loan Equity Quasi Partic. Loan

Disbursed IFC
Equity Quasi Partic.

Total portfolio:

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Partic.

Total pending commitment:

0.00

0.00

0.00

0.00

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Liberia at a glance
P OVE R T Y and S OCIA L 2007 P opulation, mid-year (millions ) GNI per capita (Atlas method, US $ ) GNI (Atlas method, US $ billions ) A v er age annual gr o wt h, 2 0 0 1-07 P opulation (%) L abor force (%) M o s t r ecent es t imat e (l at es t year av ai lable, 2 00 1-0 7) P overty (% of population below national poverty line) Urban population (% of total population) L ife expectancy at birth (years ) Infant mortality (per 1 ,000 live births ) Child malnutrition (% of children under 5) Acces s to an improved water s ource (% of population) L iteracy (% of population age 1 5+) Gros s primary enrollment (% of s chool-age population) Male F emale K E Y E CON OM IC R A T IOS and L ON G-T E R M T R E N D S 198 7 GDP (US $ billions ) Gros s capital formation/GDP E xports of goods and s ervices /GDP Gros s domes tic s avings /GDP Gros s national s avings /GDP Current account balance/GDP Interes t payments /GDP T otal debt/GDP T otal debt s ervice/exports P res ent value of debt/GDP P res ent value of debt/exports 0.97 .. .. .. .. .. 0.7 1 75.2 3.7 .. .. 19 87 -9 7 19 9 7 -0 7 19 9 7 0.30 .. 8.8 .. .. .. 0.0 679.9 0.7 .. .. 2006 7.8 3.7 .. 2006 0.61 .. 28.6 .. .. -1 .9 1 0.0 435.5 0.5 786.0 2752.1 2007 9.4 4.3 .. 20 0 7 0.73 .. 25.4 .. .. -1 4.6 .. .. .. .. .. 2 0 07 -11 8.9 6.3 .. Domestic savings Trade .. 59 45 1 57 .. 64 52 91 96 87 .. 36 51 94 27 58 59 94 99 88 .. 32 57 85 29 68 61 94 1 00 89 2.8 2.1 2.5 2.6 2.2 2.7 GNI per capita S ubS ahar an L i ber i a A f r ica 3.8 1 50 0.55 800 952 762 L o winco me 1 ,296 578 749 Life expectancy

9/24/08

Gross primary enrollment

Access to improved water source

Liberia

Low-income group

Capital formation

Indebtedness

(average annual growth) GDP GDP per capita E xports of goods and s ervices

-20.6 -21 .1 ..

3.1 -0.5 ..

Liberia

Low-income group

S T R U C T U R E o f t he E C ON OM Y 198 7 19 9 7 77.0 1 0.2 5.5 1 2.8 .. .. 72.0 2006 .. .. .. .. .. .. 73.8 2006 .. .. .. .. .. .. .. .. 20 0 7 .. .. .. .. .. .. 64.5 20 0 7 .. .. .. .. .. .. .. ..
20 0 02 -20 -40 GCF GDP 03 04 05 06 07

(% of GDP ) Agriculture Indus try Manufacturing S ervices

H ous ehold final cons umption expenditure General govt final cons umption expenditure Imports of goods and s ervices

38.1 23.3 .. 38.6 .. .. ..

19 8 7 -9 7 199 7 -0 7

(average annual growth) Agriculture Indus try Manufacturing S ervices

H ous ehold final cons umption expenditure General govt final cons umption expenditure Gros s capital formation Imports of goods and s ervices

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

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

Note: 2007 data are preliminary es timates . T his table was produced from the Development E conomics L DB databas e. * T he diamonds s how four key indicators in the country (in bold) compared with its income-group average. If data are mis s ing, the diamond will be incomplete.

IBRD Map No. 33435R2

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Liberia Map

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