PCR: Sri Lanka: Secondary Education Modernization Project II · Democratic Socialist Republic of Sri Lanka for the Secondary Education Modernization Project II. Manila. 2 Project

Completion Report

Project Number: 35192 Loan Number: 2096 July 2012

Sri Lanka: Secondary Education Modernization

Project II

CURRENCY EQUIVALENTS

Currency Unit – Sri Lankan rupee/s (SLRe/SLRs)

At Appraisal At Project Completion 18 September 2005 31 December 2010

SLRe1.00 = $0.009678 $0.009013 $1.00 = SLRs103.66 SLRs110.9530

ABBREVIATIONS

ADB – Asian Development Bank CAL – computer-assisted learning CLC – computer learning center EKSP – Education for Knowledge Society Project ESDFP – Education Sector Development Framework and Program GCE – General Certificate of Education ICT – information and communication technology MOE – Ministry of Education NETS – National Evaluation Testing Service NPSP – Northern Province Special Program PED – provincial education department PMO – project management office PPMO – provincial project management office PSI – Program for School Improvement SBA – school-based assessment PTDU – Provincial Training and Development Unit SBM – school-based management SDG – School Development Grant SDP – School Development Plan SEMP – Secondary Education Modernization Project SMC – School Management Committee TLM – teaching learning methodologies TLR – teaching learning resource TLRDU – teaching learning resource development and use

NOTE

In this report, ―$‖ refers to US dollars.

Vice-President X. Zhao, Operations 1 Director General J. Miranda, South Asia Department (SARD) Director S. Ra, Human and Social Development Division, SARD Team leader S. Shakil, Social Sector Specialist, SARD Team member C. Bantugon, Senior Social Development Officer (Gender), SARD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page

BASIC DATA I

I. PROJECT DESCRIPTION 1

II. EVALUATION OF DESIGN AND IMPLEMENTATION 1

A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 5 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 7 G. Conditions and Covenants 7 H. Consultant Recruitment and Procurement 8 I. Performance of Consultants, Contractors, and Suppliers 9 J. Performance of the Borrower and the Executing Agency 9 K. Performance of the Asian Development Bank 9

III. EVALUATION OF PERFORMANCE 10

A. Relevance 10 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 11 E. Impact 12

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13

A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14

APPENDIXES

1. Project Framework 16 2. Facilities Provided to Project Schools 32 3. Manuals, Handbooks, and Documents Produced 33 4. Original Cost Estimates and Financing Arrangements against Actual

Expenditures 35 5. Status of Compliance with Loan Covenants 36 6. Summary of Consulting Services 51 7. Gender Disaggregated Achievements 53 8. Economic Analysis 55 9. Chronology of Major Events 58 10. Projected and Actual Disbursement 60 11. Project Annual Expenditure 61 12. Implementation Schedule: Planned Compared with Actual 62 13. International Fellowships and Study Visits 65 14. Sisusaviya/Sisudiriya Student Scholarships 69 15. Type of Schools 70

BASIC DATA

A. Loan Identification 1. Country 2. Loan Number 3. Project Title 4. Borrower 5. Executing Agency 6. Amount of Loan 7. Project Completion Report

Number

Sri Lanka 2096-SRI(SF) Secondary Education Modernization Project II Democratic Socialist Republic of Sri Lanka Ministry of Education SDR23.875 million 1328

B. Loan Data

1. Fact Finding – Date Started – Date Completed

2. Appraisal – Date Started – Date Completed 3. Loan Negotiations – Date Started – Date Completed 4. Date of Board Approval 5. Date of Loan Agreement 6. Date of Loan Effectiveness – In Loan Agreement – Actual – Number of Extensions 7. Closing Date – In Loan Agreement – Actual – Number of Extensions

6 May 2004 22 May 2004 12 July 2004 23 July 2004 16 September 2004 17 September 2004 25 October 2004 7 December 2004 7 March 2005 19 May 2005 0 30 June 2010 14 December 2011 1

8. Disbursements a. Dates

Initial Disbursement

5 July 2005

Final Disbursement

14 December 2011

Time Interval

77.4 months

Effective Date

19 May 2005

Original Closing Date

30 June 2010

Time Interval

61.4 months

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b. Amount (SDR)

Category or Subloan

Original Allocation

Partial Cancellations

Last Revised Allocation

Amount Disbursed

Undisbursed Balance*

a b c=b-d d e f=d-e 1 2,456,000 64,000 2,392,000 2,357,083 34,917 2 6,139,000 (897,000) 7,036,000 6,590,577 445,423 3 955,000 (178,000) 1,133,000 1,025,250 107,750 4 1,364,000 (115,700) 1,479,700 1,437,860 41,840 5 1,774,000 303,000 1,471,000 1,424,996 46,004 6 1,501,000 (858,300) 2,359,300 2,352,411 6,889 7 478,000 414,000 64,000 48,713 15,287 8 1,637,000 (1,401,000) 3,038,000 3,003,720 34,280 9 2,387,000 837,000 1,550,000 1,543,318 6,682

10 1,569,000 (1,153,000) 2,722,000 2,761,897 (39,897) 11 614,000 0 614,000 491,742 122,258 12 3,001,000 2,985,000 16,000 16,000

Total SDR 23,875,000 0 23,875,000 23,037,567 837,433

Total US$ 34,954,000 0 36,932,082 35,651,659 1,280,424 ( ) = negative *Cancelled at loan closing date on 14 December 2011.

9. Local Costs (Financed)

- Amount ($ million) 20.322

- Percent of Local Costs 57% - Percent of Total Cost 43%

C. Project Data

1. Project Cost ($ million)

Cost Appraisal Estimate Actual

Foreign Exchange Cost 14.613 15.330 Local Currency Cost 32.274 31.838 Total 46.987 47.167

2. Financing Plan ($ million)

Cost Appraisal Estimate Actual

Implementation Costs Borrower Financed 10.283 11.516 Beneficiaries 1.749 0.000 ADB Financed 34.066 34.894

Total A 46.098 46.410

IDC Costs Borrower Financed 0.000 0.000 ADB Financed 0.889 0.757

Total B

Total A+B

0.889

46.987

0.757

47.167

ADB = Asian Development Bank, IDC = interest during construction.

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3. Cost Breakdown by Project Component ($ million)

Appraisal

Component Estimate Actual

Civil Works 9.588 9.543 Equipment 8.971 10.256 Furniture and Vehicles 1.368 1.599 Learning Materials 1.932 2.198 Consulting Services 2.566 2.148 Staff Development and Training 2.236 3.657 Surveys and Studies 0.250 0.074 Pilot Initiatives and Special Programs 0.497 0.000 Stipends and Scholarships 2.400 4.688 Special School Grants 3.670 2.365 Incremental Recurrent Costs 3.581 6.091 Taxes and Duties 2.647 3.789 Interest Charge 0.889 0.757 Unallocated 6.392 0.000 Total 46.987 47.167

4. Project Schedule

Item Appraisal Estimate Actual

Engagement of Consultants First Engagement January 2005 November 2008 Last Engagement December 2007 February 2010 Construction of Civil Works First Construction January 2006 March 2006 Last Construction June 2009 August 2009 Equipment First Procurement October 2005 June 2006 Last Procurement June 2009 March 2010 Training of Teachers First Training March 2005 June 2006 Last Training December 2008 May 2010 School Grants First Release October 2005 April 2006 Last Release March 2009 May 2010 Stipend Program First Release January 2006 March 2006 Last Release December 2009 December 2009

5. Project Performance Report Ratings

Implementation Period

Ratings

Development Objectives

Implementation Progress

From October 2004 to December 2011 Satisfactory Satisfactory

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D. Data on Asian Development Bank Missions

Name of Missiona

Dates No. of

Persons

No. of Person-

Days Specialization of Membersb

From To

Inception 12 May 2005 19 May 2005 2 17 a, c

Review 1

31 January 2006 8 February 2006 1 11 a

Review 2

30 January 2008 6 February 2008 2 16 a, e

Midterm Review

9 October 2008 20 October 2008 3 36 a, c, e

Review 3

10 August 2009 19 August 2009 3 30 a, b, d

Special Project Administration Review

21 October 2009 30 October 2009 3 30 a, d, e

Review 4

22 March 2010 1 April 2010 3 33 b, d, e

Review 5

13 December 2010 17 December 2010 2 10 b, d

Project Completion

18 January 2012 31 January 2012 3 29 b, d, f

a Includes inception, review, and completion review mission.

b a = engineer, b = financial specialist, c = counsel, d = economist, e = procurement or consultant specialist, f =

education specialist.

I. PROJECT DESCRIPTION

1. As Sri Lanka’s economy grows and diversifies, it is essential to educate and train young people to supply skills to the labor market. Secondary education serves as a foundation for advanced studies; however, secondary schools in Sri Lanka have fallen short in equipping graduates with marketable skills for the modern economy. Improved matching of education provision with the skills required for employment will help ensure that new jobs are filled with qualified graduates. The broad sector goal of the Secondary Education Modernization Project II (SEMP II) was to help establish a secondary education system that is equitable and responsive to labor market requirements. 2. The project’s specific outputs were to: (i) improve the quality of, and equity of access to, secondary education; (ii) strengthen the capacity of provincial and zonal offices; and (iii) support implementation of government policies and reforms in education.1 Built on the progress and achievements of the Secondary Education Modernization Project I (SEMP I), SEMP II was designed to incorporate interventions that further supported innovation and modernization in the secondary education system.2 These interventions included expansion of computer-assisted learning (CAL) through the establishment of computer learning centers (CLCs), training for teachers, scholarships for disadvantaged students, facilitation training for provincial and zonal officers, and strengthening of activities such as school-based assessment (SBA) and the Program for School Improvement (PSI).

II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation

3. The project was fully aligned with the government’s education policies as well as its strategies for the education sector and human development, as laid out in three documents: (i) The Future—Regaining Sri Lanka; (ii) The Draft National Employment Policy for Sri Lanka; and (iii) e-Sri Lanka: An ICT Development Roadmap, which created the framework for effective use of information and communication technology (ICT) in schools. At the time of project design, government education policy was focused on two issues: (i) empowerment of the school system to strengthen the decentralized management of education, and (ii) introduction of a new school curriculum to satisfy students’ expectations of finding employment (meeting the labor market requirements) after the completion of secondary education. 4. The performance of the primary and secondary education subsectors in Sri Lanka has steadily improved, reflecting the government’s long-term commitment to education. However, inequity of access to good-quality education, low capacity for education management and school-based management, and the needs of post-conflict reconstruction have required sustained support for secondary education. The project was responsive to addressing the educational challenges confronting Sri Lanka. Project components such as the introduction of a new ICT curriculum and the provision of CLCs to schools were designed to help equip students in joining the knowledge economy and gaining employment. The introduction of the PSI, School Development Grants (SDGs), School Development Plans (SDPs), and School Management

1 ADB. 2004. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Democratic Socialist Republic of Sri Lanka for the Secondary Education Modernization Project II. Manila.

2 Project preparatory technical assistance was provided to prepare a project proposal. ADB. 2002. Technical Assistance to the Democratic Socialist Republic of Sri Lanka for Preparing the Secondary Education Modernization Project II. Manila.

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Committees (SMCs) were included to enable schools and principals to become more autonomous in decision making, which was a key government policy objective. The project was also designed to support the government’s efforts to promote decentralization by supporting provincial and zonal capacity. 5. SEMP II built upon the experiences and infrastructure of SEMP I. For example, the project management office (PMO) established under SEMP I was continued under SEMP II, and strengthened with the development of provincial project management offices (PPMOs). The principals and staff in schools with CLCs developed under SEMP I were provided with support and training by facilitators and master trainers developed under SEMP II. The Project Preparatory Technical Assistance (PPTA) incorporated the lessons learnt from SEMP I implementation and contributed effectively towards making SEMP II a relevantly designed project. The extension of ADB support through the Education for Knowledge Society Project (EKSP) has further strengthened these programs beyond the life SEMP II. 6. The project was also fully consistent with ADB’s Country Strategy and Program Update (2002) for Sri Lanka,3 which called for support for equitable services and for alignment with the government’s goal of the creation of a knowledge economy. The project preparatory technical assistance took into account government strategies, lessons of previous projects, and continuing challenges when preparing the design of the project. B. Project Outputs

7. An assessment of the project outputs is outlined below. Details of the project’s achievements, against targets set at appraisal, are detailed in the project framework in Appendix 1.

1. Component 1: Improving the Quality of and Equity of Access to Secondary Education

8. This component supported target schools4 by upgrading physical facilities, providing teaching–learning resources, strengthening teachers’ skills and principals’ managerial capacities, and providing scholarships for students from disadvantaged areas. 9. A comprehensive school needs assessment and a careful planning of resource allocation was completed in 2005. To meet the conditions of loan effectiveness, all 1,180 schools completed School Needs Analysis Reports. Based on these reports, consolidated Zonal Priority Resource Allocation Lists were prepared by the zonal offices and submitted to the PMO for addition to a provincial school needs data base. The data base was used by the provincial education departments (PEDs) to consolidate provincial priority resource allocation lists. 10. The upgrading of school facilities was the most significant component of the project, in terms of budget allocation. It was also one of the most successful parts of the project, where most of the targets were exceeded. For example, the project successfully developed 372 CLCs in 1AB and 1C schools across the country. This achievement surpassed the original target of 353 schools, mainly due to savings that were achieved in the procurement and sourcing of the CLCs. In addition, most of these CLCs have generated income for maintenance and upkeep of

3 ADB. 2002. Sri Lanka: Country Strategy and Program Update (2003-2005). Colombo

4 Specifically, the project targeted 1,100 type 1AB and 1C schools that were falling below acceptable quality standards, and were not served by previous projects, to improve their facilities and learning environment.

http://www.adb.org/documents/sri-lanka-country-strategy-and-program-update-2003-2005

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the facility by providing ICT classes to the community during out-of-school hours. In addition to the CLCs, facility upgrades were provided to 1,888 schools, based on the results of a needs-assessment survey carried out by the PMO at the start of the project in 2005. A summary of original targets and actual facilities provided is given in Appendix 2. The construction and upgrading activities met the necessary environment, health, and safety requirements. 11. To ensure the effective use of CLCs and other ICT facilities provided to schools, an extended training program was provided to 18 master trainers and 93 zonal facilitators. This supported ICT skill development of teachers: 25,000 teachers were trained in International Computer Driving License (ICDL) and CAL; 3,600 teachers were trained in ordinary level (O-level) ICT education; 1,619 officers (including principals) were trained in e-Citizen training; 814 short-term ICT scholarships were provided for teachers; and 400 ICT master trainers were trained to impart training for the competency based curriculum. The ICDL and CAL training took the form of an intensive 18-day program, which was a particularly significant investment in building the capacity of teachers. This part of the training program was executed in partnership with private sector providers. 12. Development and distribution of teaching learning methodologies (TLM), and teaching learning resource development and use (TLRDU) were also key aspects of Component 1. Materials to support these initiatives were developed under the consultancy packages (see Appendix 3) and distributed to PEDs and schools. Training was provided to 36 master trainers and 251 zonal facilitators in TLM and TLRDU. A further 12,653 principals, deputy principals and teachers were trained in TLM; and 11,189 principals, deputy principals and teachers were trained in TLRDU. One staff member of National Institute of Education (NIE) was also sent on an international fellowship to learn about TLM. 13. A total of 54,690 talented students from disadvantaged families received scholarships under the Sisusaviya/Sisudiriya program, surpassing the original target of 48,000 students. These scholarships were awarded in areas such as Kilinochchi, Mannar, Mullaitivu and Vavuniya, allowing students to remain in school and achieve good results. Students under the scholarship program had a pass rate of over 70% at O- and A-level examinations, while the national average was 49% for O-level and 61% for A-level.5

2. Component 2: Strengthening the Capacity of Provincial and Zonal Offices

14. This component focused on capacity development of the provincial and zonal offices, through provision of system management consultants, staff development and training, and development of about 450 zonal facilitators. 15. The creation of a cadre of 3–5 zonal facilitators in each of the 93 education zones has been an important achievement of the project. These zonal facilitators play a pivotal role in providing principals and teachers with the training and development required to adopt many of the new practices, such as SBA, PSI, TLM, and TLRDU. Zonal facilitators provide on-site guidance for 10–15 schools each, primarily supporting SEMP I and II schools. Other schools are supported only when workload and resources permit. Some challenges include ensuring a sufficient number of zonal facilitators in each zone, and introducing more rigorous management of zonal facilitators, to ensure that they visit each school on a regular basis, and that feedback is provided on their performance.

5 D.S. Mattananda. 2009. SEMP II, Evaluation of the Impact of Sisusaviya/Sisudiriya Scholarship Programme. ,

Colombo.

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16. A substantial complement of learning materials was developed as part of the three project components. These resources included handbooks and training manuals on PSI, SBA, ICT, and other key components of the SEMP II program (see Appendix 3 for a full list of the materials developed). A set of these training manuals has been provided to each PED and most schools have received electronic copies. These materials are intended to be used by teachers, principals, zonal facilitators, and education personnel in improving the quality of education in schools. 17. Based on the materials developed under this component, provincial and zonal staff were trained in various areas of expertise: ICT (93 facilitators), PSI (253 facilitators), TLM (251 facilitators), TLRDU (251 facilitators), and SBA (285 facilitators). These facilitators form a core part of the Provincial Training and Development Units (PTDUs) and the training provided has helped strengthen these units. In addition, one local and one international consultant were placed in each province to support PEDs and PTDUs. 18. The strengthening of the SBA program has also been an important achievement of SEMP II, providing a feedback loop to help identify learning gaps and facilitate more effective student-centered teaching. SBA is a pivotal effort to improve the quality of teaching and learning, enabling teachers to employ a variety of tools to undertake continuous student assessment through projects, practical exercises, short quizzes, and other teaching resources. A total of 18 master trainers and 285 zonal facilitators were trained by the National Education Testing Services (NETS) on the effective use of SBA. Training a further 81,102 principals, deputy principals and teachers was also provided to ensure the effective implementation of the SBA program. 19. Finally, as part of the consulting packages provided by SEMP II, 12,816 education personnel were trained on the effective use of PSI6, which included training for school-based management of resources and recordkeeping. These training programs were provided by a combination of local and international experts and have contributed to the improvement of school management and teaching quality in SEMP II schools.

3. Supporting Implementation of Government Policies and Reforms in Education

20. This component included curriculum modernization, streamlining of the national examination system, capacity development of the Ministry of Education (MOE), and support for key government policy reforms. 21. The project supported the NIE in modernizing the curriculum by helping develop 8 technical subject options in the O-level core curriculum, and 6 technical subjects for the A-level technology stream. With project support, alternative vocational courses were developed to initiate students into specific occupations in the agriculture, industry, and service sectors of the economy. The project provided facilities for 200 schools to pilot technology options at A-level.

22. The NETS continued working on computerization of operation and evaluation results, and integration of SBA results into national examinations. This has resulted in SBA scores being reported together with the national O-level examination scores since 2006. However, for significant improvements and reforms to take place in the examination system, the SBA system

6 PSI is a program for school based management of resources.

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will require further strengthening, to ensure that the tests are administered more objectively and can be calibrated across schools (e.g. a resource bank with test items could be developed). This will help the SBA become a credible and consistent assessment of students. 23. During the project, the PSI was implemented in 62 educational zones, and has since been expanded to cover the rest of the country. The PSI is a management tool for principals to better exercise their leadership capabilities and increase community support for school activities. It allows principals the opportunity to use their skills and experiences to take decisions independently and promptly, to meet the needs of the school. The PSI prescribes modalities for increasing community participation through establishing School Development Committees and School Management Teams. Zonal directors and school principals have expressed the view that the PSI is an effective program for school development, directly supporting the physical development of schools and management efficiency.7 PSIs could be further strengthened by provision of an annual budget, through a matching grant system, to encourage schools to generate income and manage their own development plans. 24. SDGs were provided to 814 schools in 2005–2007.8 Each school received SLRs60,000–100,000, depending on its size, for essential maintenance and repair work for sanitary facilities, drinking water supplies, electrical facilities, and furniture. The grant was positively received by school principals who have used the additional funds to further strengthen the implementation of the PSI and develop independence in decision making. About 95% of the funds allocated have been used by the schools.9 25. Several private companies supported SEMP II in developing ICT education. These partners included Microsoft, Intel, and Oracle, who have each entered into a memorandum of understanding with the MOE to provide assistance for 3–5 years particularly for technology training. This positive experience in developing public–private partnerships should be further strengthened in future projects. C. Project Costs

26. At appraisal, the project cost was estimated at $47 million. Of this amount, $15 million (32%) was in foreign exchange and $32 million (68%) in local currency. ADB provided a loan of $35 million (SDR23.9 million) to finance the foreign exchange costs, and $20 million for a portion of the local currency costs. The government was to provide $12 million (26%) to finance part of the local currency costs. The actual completion cost reached $47.2 million, for which ADB disbursed $35.7 million, representing $15.3 million for foreign exchange costs (33%) and $20.3 million (43%) for local currency costs. Government funding covered $11.5 million (24%) of the total actual cost. Available savings of $1 million were allocated to the Northern Province Special Program (NPSP). This was approved by ADB with the recommendation of the Special Loan Review Mission in October 2009 to provide SDGs and computer equipment to 500 schools in the Northern Province after the end of the conflict. Overall, the project was delivered within budget. A detailed breakdown of original cost estimates and financing arrangements against actual expenditures is given in Appendix 4.

7 W.G. Kularatne. 2010. SEMP II, Study on Zonal Facilitation Programme, Colombo.

8 SDGs were provided to all schools, with the exception of those with more than 500 enrollments, as those schools

have access to other resources. 9 R.H.H.G Ranasinghe. 2010. SEMP II, Impact Evaluation Study on School Development Grant , Colombo.

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D. Disbursements

27. Disbursements were satisfactory with only minor delays. The project schedule indicated that disbursements would be completed in 5 years (or 60 months), from the start of implementation in 2005 to completion in 2010, which was later extended by 12 months. Loan proceeds were disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). The first payment to the imprest fund was released on 5 July 2005 and the last disbursement was on 14 December 2011. No major issues were experienced with the management of the fund. The imprest account was established as designed at appraisal. The initial $1.5 million was disbursed directly to the PMO to facilitate local training, civil works, scholarships, and recurrent costs. The imprest fund was also used to facilitate the release of the SDG to the provinces, instead of the MOE advancing the money from its own source then obtaining reimbursement. 10 ADB’s statement of expenditures procedure was followed to reimburse eligible expenditures and liquidate advances to the imprest account. Loan proceeds were reallocated once in August 2007 to finance the cost of internet charges for CLCs established under SEMP I for 2 years. 28. Some delays were encountered in the availability of counterpart funds, as noted by the midterm review mission in October 2008. This matter was resolved before disbursements to schools were affected; however, this is an area that requires careful attention to ensure timely implementation of programs in the future. E. Project Schedule

29. The project was implemented over 6 years, during 2005–2010, becoming effective on 19 May 2005 and closing on 14 December 2011. The midterm review was held on 9–20 October 2008. At appraisal, the implementation schedule detailed project completion within 5 years, during May 2005–December 2009. At the request of the secretary of the MOE, on 2 October 2009, an ADB special loan review mission approved a 6-month extension of the loan to 31 December 2010 to implement the NPSP. The project was implemented within the revised period with a majority of outcome indicator targets met or exceeded; while a few targets (e.g. the School Management Committee pilot program, and teacher incentive pilot) were excluded with the agreement of ADB. 30. One component of the project that experienced a significant delay was the procurement of consultancy services for developing training materials and providing training to education personnel. This delay occurred due to procedural issues which led to restarting of the procurement process with adherence to ADB consulting services guidelines. The issue was finally resolved at the end of 2008 (after 2 years) with the consultancy services being provided in 2009. 31. Project progress was tracked by measuring implementation of project activities and achievements against targets and evaluation. Findings were reported in quarterly and annual reports. Submission of several progress and annual reports was delayed, but they were submitted complete. ADB teams made regular loan review missions to supervise project implementation and to advise on necessary action.

10

Schedule 6, para 28 of the loan agreement was modified in May 2009 to accommodate this.

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F. Implementation Arrangements

32. At appraisal and throughout the duration of the project, the executing agency was the MOE. As per the loan agreement, an interministerial steering committee was established in 2005 and met annually. One-to-one progress review meetings, chaired by the project director, were held as required with the participating agencies. The central PMO, originally established for the Secondary Education Development Project, 11 which also served for SEMP I, was retained and continued to serve SEMP II from May 2005 when the loan became effective. The PMO was responsible for day-to-day implementation of the project and did not face any significant challenges in start-up or transition. To facilitate the work of the central PMO, PPMOs staffed by a provincial project manager and a secretary, were established and made operational. These PPMOs were attached to the PED. Each PPMO was responsible for coordination and accounting for all project activities implemented in the province, while reporting to the central PMO. 33. The central PMO was also supported by NETS, the NIE, and the Center for Education Leadership Development (CELD). As these were well established agencies embedded in the MOE, no issues arose with regard to their continuity or functioning. 34. Civil works under the project were implemented by the central PMO with the support of the school works divisions of the PEDs and the departments of engineering services, functioning under the provincial councils. The National Institute of Business Management (NIBM) and private sector computer training agencies were commissioned to train teachers in ICT, as the capacity of the NIE was limited in this area. The disbursement of stipends to the recipient students was implemented through the county-wide branch network of three state banks—the People’s Bank, the Bank of Ceylon, and the National Savings Bank. 35. In the provinces the PEDs and PPMOs played a critical role in supporting zonal offices and ensuring the provision of equipment and training to schools. Each PED had a group of officers that were trained as master trainers, who imparted that knowledge to principals and teachers in additional training sessions, facilitated by the project and led by the zonal officers. One of the key challenges after the completion of the project has been the monitoring and performance of zonal facilitators in supporting schools on a regular basis. It is critical to have zonal facilitators regularly visit each school to ensure the full implementation of PSI, SBA, TLM and TLRDU. G. Conditions and Covenants

36. The executing agency achieved high compliance with key project implementation covenants. Out of 48 loan covenants (see Appendix 5), 43 were fully complied with, 3 partially complied with, 1 was modified, and 1 was deemed redundant by the midterm review. The covenants were generally relevant, although excessive in number—with many relating to routine project management and reporting aspects. Reporting was satisfactory, although the submission of a number of progress, annual, and audit reports was delayed. The covenant on release of funds to provincial councils (refer to Loan Agreement (LA), Schedule 6, para. 28) was modified in May 2009, to permit the MOE to make funds from the imprest account available to each provincial council, so that they could disburse school development grants. The covenants on ―Teacher Transfer Review‖ and the ―Teacher Transfer Action Plan‖ (refer to LA, Schedule 6,

11

ADB. 2004. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Democratic Socialist Republic of Sri Lanka for the Secondary Education Modernization Project II. Manila.

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para. 24) were partially complied with. At the midterm review, it was agreed that the county’s political climate was not conducive to introducing reforms on teacher deployment to rural areas; however, subsequently, the Cabinet of Ministers approved a new teacher transfer policy in 2010, to ensure more equitable distribution of teachers. 37. The covenant on integration of the SBA into the results for O- and A-level General Certificate of Education (GCE) (refer to LA, Schedule 6, para. 33) was partially complied with. Full integration of the SBA into O- and A-level results would not have been desirable at this stage, as the SBA needs to be strengthened—especially in terms of consistency in standards and implementation—before it is formally included as a measure of outcome and terminal examination results. An SBA facilitation program to validate and enhance the reliability and credibility of SBA grades was launched by NETS in December 2006. Integration of SBA testing modalities in term tests was piloted in some provinces. Full national integration of SBA results has not yet been achieved; although discussions have started among officials of the MOE, NIE, NETS and National Education Commission to formulate strategies for the integration and improvement of SBA in the school system, to be introduced in GCE A-level results in 2012. The covenant on preparation of the decentralization review (refer to LA, Schedule 6, para. 23) was partially complied with as the review was only partly developed and not finalized. 38. The midterm review concluded that the covenant on ―evaluation of impact of pilot programs—School Management Council, Teaching Incentive, and the NDICT‖ (refer to LA, Schedule 6, para. 38) was irrelevant as similar pilot activities had already been undertaken under the PSI. H. Consultant Recruitment and Procurement

39. No major difficulties were encountered with ADB procedures when procuring goods and equipment. None of the proposed procurements were rejected by ADB. Equipment (such as computers and air conditioners), furniture, and learning materials were procured and delivered in a timely manner. Procurement was carried out in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). 40. Civil works mainly involved small-scale construction and conversion of existing classrooms into CLCs, multimedia units, and laboratories. All civil works were undertaken in the provinces by the school works divisions of the PED and the departments of engineering services, under the overall guidance and supervision of the senior project engineer and project engineer at the PMO. The contractors for all civil works were selected through open tender procedure. In addition to construction supervision by the PED engineer, the quality of construction was randomly checked by the PMO’s project engineer. The quality of the civil works was generally satisfactory. Finally, an important success of this program was that despite price escalations over the time, the average cost incurred for civil works per CLC, and the average procurement cost for establishing a complete CLC, was comparatively lower for SEMP II than for SEMP I.12 41. Recruitment and mobilization of consultancy services was the only area that encountered a prolonged delay—of about 3 years. This was largely due to issues in the selection procedure, such as delays in establishment of a short-listing and selection committee, in subsequent administrative approvals, and in mobilization of the consultants. Most of the

12

G.L.S. Nanayakkara. 2010. SEMP II, Cost-Effectiveness and Usage of Computer Learning Centres: A Comparison with GCE AL Science Laboratories., Colombo.

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consultancy services envisaged under the project were not contracted until November 2008. These consultancy services were provided in three bid packages and completed in February 2010. The detailed achievements of the consultancy services are presented in Appendix 6. Despite the delayed start, at completion the project had utilized a total of 252 person months (153 international person months and 99 national person months) compared with 270 person months (108 international person months and 162 national person months) targeted at appraisal. Overall utilization of person months of consultancy services was 93.4%, while that of international consultants was 141.5% and national consultants was 61.3%. Recruitment of consulting services was done in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). I. Performance of Consultants, Contractors, and Suppliers

42. Overall, the performance of consultants was satisfactory. Once the initial delay in recruitment was overcome, the output provided by the consultant was well prepared, and delivered mostly according to plan. In addition to the delay in starting consultancy services, continuing delays were caused by replacement of consultants, and also the team leader in one instance. While some consultants found that counterpart staff time was limited at NIE and NETS, the executing agency and the consultants attempted to establish a mechanism whereby interaction and transfer of knowledge were ensured, including monthly meetings and presentation of consultants’ reports. Overall, the work outputs of almost all the consultants under the three packages were of a satisfactory standard; however, the uptake and usage of these outputs, particularly in schools, could have been better. During field visits, very few teachers and principals were aware of TLM and TLRDU, which were important aspects of consultancy package 2. This low level of uptake could be explained by the limited time provided for training teachers once the materials were developed. Also, printed training materials for TLM and TLRDU were provided only to provincial offices. 43. The performance of the civil works contractors was generally satisfactory, with the infrastructure being delivered mostly on time and within budget. 44. The performance of the suppliers of equipment and goods was satisfactory. Some delays were experienced in the procurement of equipment, due to limited local availability and a limited number of suppliers, but these did not cause disruption in implementation. J. Performance of the Borrower and the Executing Agency

45. Despite a significant delay in procurement of the consultancy services, the performance of the borrower and executing agency is rated satisfactory. The Project Steering Committee was effective in ensuring steady implementation despite several shifts of ministerial responsibility and the multitude of stakeholders involved. In particular, a number of detailed assessments and evaluation studies were carried out on a number of interventions, which have helped to document the achievements and challenges, and identify areas for future support. K. Performance of the Asian Development Bank

46. The performance of ADB was satisfactory. For the initial period of 2005–2007, the project could have benefited from more regular review missions and from stronger responsibility and capacity at the resident mission. However, after 2008, at least two review missions were conducted per year and most of the project goals were met.

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47. The mission members were committed to the project’s objectives and played a proactive role, providing timely advice, guidance, and support to the executing agency. Activities were reviewed in a systematic manner and meetings held with the main stakeholders during their visits, i.e. project staff, MOE officials, NIE, NETS and project consultants. The midterm review would ideally have been carried out sooner than it was, giving more time during the remainder of the project to reflect on outcomes and identify solutions. 48. The decision in 2009 to extend the loan by 6 months helped expand the project’s activities in conflict affected areas that were lagging behind.

III. EVALUATION OF PERFORMANCE

A. Relevance

49. The project is rated highly relevant, as it was designed to directly support Sri Lanka’s efforts to improve the equity, efficiency, and labor market responsiveness of its secondary education system. It remains extremely relevant as it is aligned with the government’s vision of preparing Sri Lanka as a knowledge hub. Expansion of access to high quality and responsive secondary education, with a focus on equity for underserved areas, is a crucial aspect of Sri Lanka’s Education Sector Development Framework and Program (ESDFP) 2012–2016. The priority placed on upgrading schools, and equipping them with modern facilities has contributed to the government goal of minimizing disparities across regions and ethnic groups. The project supports the government policy of decentralizing education and promoting school-based management (SBM) through: (i) emphasis on building capacity of school stakeholders to sustain and maximize the benefits of the facilities; and (ii) initiatives to improve the capacity for monitoring and guidance at zonal and divisional levels. Further, the initiatives aimed at curriculum modernization, teacher training, and strengthening SBA have improved the effectiveness and relevance of the education system. Finally, the project was extremely responsive to the country’s emerging priorities, focusing on strengthening service delivery in the northern region. This was demonstrated through the well-developed Ethnic Minority Development Framework (EMDF) and reallocation of resources to support the NPSP. B. Effectiveness in Achieving Outcome

50. The project is rated effective in achieving the stated outcome of developing an education system that is equitable and responsive to labor market requirements. Substantial progress has been made in enhancing equity of access to higher quality education through the improvement of facilities and equipment in about 1,100 schools across the country. Overall, the project has been successful in supporting an increase in the number of students studying science and ICT subjects and the number of students passing the O- and A-level examinations. The maintenance of improved standards has been supported through the PSI, with associated school management committees—an intervention that has since been mainstreamed and institutionalized at the MOE. Sri Lanka was one of the first countries in South Asia to promote ICT education in schools, under SEMP I. This initiative has been further strengthened and institutionalized through the establishment of 372 CLCs under SEMP II. The project has been effective in improving access to ICT education, and has done so in a cost effective manner. Improvements in examination results illustrate the positive impact of the teacher training, SBA interventions, facility and equipment improvements, and the project overall.

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C. Efficiency in Achieving Outcome and Outputs

51. The project is rated efficient in reaching its outcomes and outputs, especially due to the steady progress made. The implementation and management, including procurement processes, were efficiently undertaken. This efficiency could be attributed substantially to the fact that the PMO was carried over from the first SEMP initiative, minimizing start-up delays and transitions. PMO staff were also experienced with ADB project implementation guidelines and procedures. The only notable exception to the relatively efficient management was the procurement of consulting services, which started three years after loan effectiveness. In terms of cost-efficiency, it is noteworthy that SEMP II performed better than SEMP I. For example, the average cost of setting up a CLC was SLRs1.70 million under SEMP II versus SLRs1.85 million under SEMP I, despite escalations in unit costs of construction and equipment. D. Preliminary Assessment of Sustainability

52. Overall, the project is rated likely sustainable, with modernization of education firmly grounded on a platform of CAL, and the system-wide effort to strengthen the quality and management of schools. The Government of Sri Lanka remains strongly committed to strengthening its secondary education system, to make it more equitable and responsive to labor market requirements, as an engine of growth for a knowledge society. It has prepared a medium-term sector development framework, which is accompanied by a steadily increasing budgetary allocation for education. Many of the interventions started and supported under the project have been embedded in the ESDFP, and are highly likely to be strengthened and sustained. For example, the PSI interventions are expected to be sustained over the long term, as the system has been generally successful, and is nationally institutionalized. The SBA initiatives, as well as curriculum improvements, are also expected to be sustainable, as the initiative has been institutionalized for both the O- and A-level curriculum. 53. However, to sustain the gains and improvements, the government will need to considerably enhance funding for maintenance and improvement of school infrastructure. The investments made in CAL will not be sustainable unless funds for maintenance and upgrading of equipment are included in the regular government budget. The availability of financing, through the MOE budget, to regularly renew and update software and hardware in CLCs, is questionable, leading to sustainability concerns over the long term. ICT education based on outdated equipment and software, would not be market-responsive. This concern has already been articulated by the MOE, and increased and decentralized maintenance funding is being considered through enhanced SBM, and possibly a grant matching facility—as an incentive to the provinces.

54. While the project had significant momentum during implementation, quality assurance of the system is a concern after project completion. The number of trained and currently available facilitators is inadequate to provide long-term support. Existing zonal officers have been provided training for facilitation and quality assurance, yet the current pool of four facilitators in each zone is inadequate to provide effective coverage and support across the full range of subjects, in the 100 or so schools in each zone. In order to sustain the gains of the investments made in strengthening quality assurance, additional staff and training on facilitation need to be provided, to enable effective support for school monitoring at the zonal level.

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E. Impact

55. The project’s significant impact is illustrated by improvements in the learning environment and the examination pass rates. The goal of the project was to develop the secondary education sector to provided equitable access for students to acquire skills that are relevant for the knowledge economy. The project sought to achieve this goal by better equipping schools with resources such as CLCs; strengthening the capacity of teachers, principals and zonal staff; and ensuring sustainability beyond the scope of the project. Through the introduction of CLCs, one clear outcome of SEMP II has been the increased awareness and uptake of ICT education in schools across the country. This is evident from several outcome indicators, including enrolment and achievement in ICT examinations and competitions, development of various instructional materials for different courses, and rapid expansion of the schoolnet platform. The growth of Schoolnet also led to the participation of alumni from different schools who have also started contributing to content on Schoolnet. At appraisal, the project was expected to upgrade approximately 1,100 target schools not supported under earlier projects, and provide system-wide support to all 2,300 (1AB and 1C) secondary schools. This target was achieved, and the impacts are visible. For example, in project schools, the O-level pass rate increased from 37% in 2005 to 39% in 2009. Across all government schools, the O-level pass rate increased from 48% in 2005 to 49% in 2009. Further, the percentage of Grade 13 students in project schools who qualified for university increased from 55% in 2005 to 59% in 2009, while across all government schools the change was from 59% in 2005 to 61% in 2009. It is clear that student performance in project schools has improved more rapidly than the national average. 56. Performance in examinations aside, the project interventions have had a substantial impact in improving the relevance of curricula and teaching. Due to sustained ADB support for ICT in secondary schools over more than 10 years, Sri Lanka is better prepared to participate in ICT sector development. CLCs were established in 372 schools under SEMP II (about 10% above the target), substantially broadening access to ICT education throughout the country. Through the project, ICT education was brought to students who had never even seen a computer before. The long-term impacts of such interventions, although too early to assess with precision, will be undoubtedly positive for the country. Further detailed information on the impacts and outputs of the project against the targets set at appraisal are in the project framework in Appendix 1. 57. Apart from the educational benefits, the project had a substantial social impact, particularly in the peace building and reconciliation process. It also had a positive impact on poverty and gender mainstreaming through its embedded focus on reducing inequities and targeting interventions in areas emerging from conflict, with an emphasis on gender mainstreaming strategies. Gender equity was envisioned in all components and activities. The project achieved near gender parity in interventions such as the stipend program, and training for teachers and staff, in line with the Gender Action Plan. Provision of separate sanitation facilities for girls and women was also ensured. The EMDF included strategies to improve the quality of education for ethnic minorities, and the project was successful in accomplishing these. Priority was given to students from the northeast and north, to target Tamil and Muslim communities, particularly for the stipend program. Special accelerated programs for the Northern Province were implemented to provide training for all school principals and teachers, contributing to greater integration of ethnic minorities into the education system. A more sustained effort will be required to improve the social conditions of these regions, but the project has contributed greatly toward strengthening the physical and learning environments for education in the northern regions. A matrix on the gender disaggregated achievements is in Appendix 7.

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58. Finally, the project’s economic benefits were significant, with an internal rate of return of 19%, showing high efficiency, as measured by increases in wages due to higher educational achievement of graduates. This illustrates the economic benefit of investment in secondary education (see Appendix 8 for the economic analysis).

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment

59. Overall, the project was well-designed and responsive to the needs of Sri Lanka’s secondary education sector. It was relevant to the policy environment, aligned with the education sector objectives of promoting more equitable access and improving the quality of secondary education, and provided an effective and seamless follow-on to the previous SEMP investment by ADB and Government of Sri Lanka. While there are some concerns about sustainability over the longer term, the project was implemented and managed quite efficiently, with the exception of a substantial delay in deploying consultants. The project has clearly made a substantial impact on many fronts, improving exam performance, enabling SBM (renamed PSI) to be institutionalized, and vastly expanding access to ICT education. Overall, the project is rated successful. B. Lessons

60. The demand for ICT education, especially among communities and parents, is rapidly increasing making investing in CAL an important part of the continuing agenda for secondary education. Important lessons have emerged during implementation of SEMP II, which provide policy guidance for the sector and future projects. 61. One key lesson is that investment in ICT infrastructure requires additional resources and training to ensure that the facilities are adequately and appropriately utilized and maintained. These include (i) training for the school principal and ICT teacher on the effective use of ICT, (ii) a robust mechanism for providing funding to cover operating expenses such as electricity bills and internet access, (iii) a mechanism that would provide resources to schools (through provincial institutions) to maintain and update hardware and software as needed, (iv) improvement of the curriculum to integrate CAL into the teaching of different subjects, and (v) parental education and involvement in encouraging students to enroll in ICT options at O- and A-level. The school visits conducted as part of the project completion report mission confirmed that the resources provided under the project are available in schools but are not being fully utilized, except where a particularly motivated school principal or ICT teacher is involved. Further, ICT infrastructure provided under various initiatives over the years (regardless of financing source) has become obsolete, and even when the hardware is still in working condition, the software has been rendered ineffective by viruses. 62. Another key lesson is that stronger monitoring and support from zonal facilitators is essential for ensuring effective use of interventions made in quality of learning. Although the project developed several good training modules on PSI, SBA, TLM and TLRDU, the effective use of these modules cannot be sustained unless supported in schools and classrooms by a committed zonal facilitator. This individual is required to visit each school on a regular basis (at least once per month) to ensure that teachers and principals are supported in adopting new management and teaching techniques. With only four facilitators per zone, covering over 100 schools and many subjects in each, coverage is inadequate. It is important to ensure that a

14

sufficient number of zonal facilitators are made available. Strengthening their role within the system and monitoring their performance to ensure delivery will be a key enabler for implementing future projects in school education.

63. Finally, a general lesson learnt is that the sustainability of initiatives beyond the lifetime of the project rests heavily on the level of reinforcement provided by the MOE, in the form of circulars, training, and regular follow up by provincial and zonal staff. For example, initiatives such as SBA and PSI, which were supported and reinforced by the MOE (e.g. through circulars) have had better success than initiatives such as TLM and TLRDU, which did not enjoy the same level of support. Hence, in order for future projects and programs to be successful, ADB would have to closely align these with the government’s ESDFP to ensure greater institutional ownership and support. C. Recommendations

1. Project Related

64. Project Design. SEMP II set out to accomplish many goals across various aspects of the education system, and to a large extent was successful in achieving those goals. Future projects might consider a narrower scope in order to deliver more comprehensive change and lasting impact in specific aspects of the education system. For example, in SEMP II, the effort spent on introducing TLM and TLRDU may have been better directed to providing additional support for PSI and SBA implementation. Future projects should be aligned to support high impact and strategic interventions in the ESDFP. In addition, design of the project included financing of large numbers of very small contracts, which leads to a high transaction cost for project management and administration. Future projects should consider financing larger procurements or even financing government expenditures against achievement of agreed results. 65. Covenants and monitoring of implementation. The loan documentation contained 48 loan covenants. These covenants were generally relevant, although excessive in number, with many relating to routine project management and reporting. Having fewer, more substantive covenants, and excluding ones that were process or administration related would help focus the supervision and monitoring of the project, particularly during review missions. Furthermore, with regards to the monitoring of implementation, additional support from the Sri Lanka Resident Mission should be sought, particularly when the gap between review missions is prolonged. 66. Timing of the project performance evaluation report. It is recommended that a project performance evaluation be conducted after 2013, in particular to allow assessment of students who benefited from enhanced curricula and entered the job market (which could be accompanied by a detailed tracer study). It is also recommended that the performance evaluation consider looking at the combined initiatives of GEP, SEMP I, SEMP II, and EKSP collectively to understand the overall impact of ADB investments in the education sector.

2. General

67. One of the key lessons emerging from SEMP II is that consistent and continued engagement in a given sector can have substantial positive effects. SEMP II was a seamless continuation of SEMP I, sharing the project management setup as well as building upon areas that worked well in previous projects. As ADB has a long-term partnership to support secondary education in Sri Lanka, it is important for future projects to build upon achievements, while

15

stimulating deeper reforms in areas that did not work so well or that require sustained intervention. SEMP II is a continuation of ADB engagement with the MOE in improving secondary education in the country. This engagement has been extended with the EKSP and EKSP II in the pipeline. Given that ADB has collaborated with the MOE over more than a decade, and that engagement in the education sector is likely to extend even beyond EKSP II, it is recommended that ADB shift its focus from project lending to more sector wide lending, using disbursement linked indicators, and possibly even using a multi-tranche financing facility to signal and provide long-term commitment for a strategic framework in the sector. 68. In general, three key recommendations relating to project appraisal and administration could help improve implementation progress and likelihood of impact. First, project management capacity should be improved in applying ADB's procurement procedures to ensure timely reviews and approvals of procurement decisions so that delays in project implementation are minimized. Second, projects that require lower funding and yet yield a greater impact on outcomes (e.g. scholarship programs, quality assurance mechanisms) should be developed further. Third, an ongoing system for tracking performance across all schools and education personnel should be implemented to further improve the effectiveness of MOE interventions. This has been successful in other education systems, such as in Minas Gerais in Brazil, Madhya Pradesh in India, and Punjab in Pakistan. Such a system could potentially be integrated with the Education Management Information System being developed under the EKSP, and supported under future projects.

16 Appendix 1

PROJECT FRAMEWORK

Design Summary

Targets/Performance Indicators

Achievement as at Completion

Monitoring Mechanisms

Assumptions and Risks

I. Sector Goal

A secondary education system that is equitable and responsive to labor market requirements

Unemployment rate of those with advanced level (A-level) qualifications reduced from 18.1% to 12% by 2009

The unemployment rate of those with A-level and above was 16.8% in 2004 and 11.2% in 2009.

a

For all indicators: Labor market Statistics Ministry of Education (MOE) statistics Statistics from private sector, National Examination and Testing Service (NETS) statistics

Percentage of A-level science students increased from 22% to 35% (female from 19% to 35%) by 2009

The total number of A-level science students increased from 87,226 in 2005 to 98,223 in 2009. The percentage of A-level science students decreased from 24% in 2005 to 22% in 2009; the number of female science students (as a percentage of total science students) increased slightly from 47.5% in 2005 to 48.0% in 2009.

Ordinary level (O-level) pass rates in disadvantaged areas increased from 30% to 45%

In disadvantaged schools, O-level pass rates remained unchanged at 42% in 2005 and 2009.

Percentage of O-level students qualified to take A-level science increased from 30% to 50% by 2009

This data not available. Although the percentage of students qualified to take A-level is given below.

II. Purpose A. Quality and Equity

Increased equity of access to quality secondary education Improved efficiency of the secondary education system

Percentage of O-level graduates qualified for A-level increased from 40% to 60% by 2009

In all government schools, the O-level pass rate increased from 48% in 2005 to 49% in 2009. In project schools, the O-level pass rate increased from 37% in 2005 to 39% in 2009.

For all indicators: MOE statistics Surveys of principals and teachers in project schools Midterm and final project reviews and evaluations Evaluation study of

For all indicators: Government ensures adequate teachers in agreed number of target schools Government’s commitment to minimize disparities across regions and ethnic groups

Percentage of grade 13 students qualified for university

In project schools, the percentage of Grade 13 students

Appendix 1 17

Design Summary





increased from 40% to 65% by 2009

qualified for university increased from 55% in 2005 to 59% in 2009. In all government schools, the percentage of Grade 13 students qualified for university increased from 59% in 2005 to 61% in 2009.

employability of O- level and A-level graduates from target schools and job placement surrey data Independent consultant evaluation reports on project progress and results ADB project completion report ADB review missions

Sufficient number of teachers who can integrate subject-specific software into teaching Adequate resources provided to school to deliver O-level technical subjects and practical options in A-level technology subject. Enough mathematics and science teachers in disadvantaged schools to deliver O and A-level science and technology subjects. Zonal and divisional offices are committed to monitoring and supervision Provincial offices committed to SBM Principals, ISAs, and zonal monitoring panels supervise and monitor SBA Government is committed to decentralization of education

Infrastructure and facilities of target schools in disadvantaged regions improved to accepted standards

Details are provided in Appendix 2.

Teachers in target schools using modern teaching–learning methodologies (TLM) and school-based assessment (SBA)

Training was provided at zonal and school levels. Details are under outputs below. 36 master trainers, 251 zonal facilitators, and 12,653 principals, deputy principals and teachers were trained (mostly in the Northern Province) in TLM. SBA usage is progressing, with results being reported with O- and A-level exam results. TLM use has been less widespread.

Subject-specific software in three languages in mathematics, science, English, and technical subjects distributed and used in all schools

Software (25 units per subject, per grade) for science, mathematics, English, geography, history, and agriculture was prepared in Sinhala,

18 Appendix 1

Design Summary





Tamil, and English for grades 10 and 11. The modules were made available on the Ministry of Education (MOE) online portal (Schoolnet), however the use of the modules in schools was limited.

Information and communication technology (ICT) resources supplied to schools according to School Development Plans (SDPs)

1,315 schools were provided with computers and accessories. In addition, a further 400 schools in the Northern Province were provided with computers as part of the Northern Province Special Program (NPSP).

Schools using school-based management (SBM) and educational leadership techniques

Use of SBM (Program for School Improvement—PSI) is ongoing in many schools, as per MOE Circular # 2008/35, issued to all schools to establish school development councils and School Management Teams to direct and monitor PSI in all schools nationwide. 18 master trainers, 253 zonal facilitators, and 13,446 principals, deputy principals, and education officers were trained in PSI.

Schools equipped with libraries, multimedia rooms, and teacher-librarians

31 school libraries were upgraded. 142 schools were provided with

Appendix 1 19

Design Summary





multimedia centers. 1,000 teachers were trained as teacher-librarians.

Teaching of science and technical subjects improved in secondary schools

The project provided equipment to over 200 schools to pilot technology options in A-level grades (126 in soft technology and 167 in hard technology).

B. Provincial and Zonal Capacity Development

450 zonal officers, in-service advisors (ISAs), and divisional directors developed as facilitators

Several individuals were trained as facilitators in various areas of expertise: ICT (93), PSI (253), TLM (251), teaching learning resource development and use (TLRDU) (251) and SBA (285).

90 of the zonal trainers trained in teaching inter-ethnic understanding

It is unclear if there was a specific component for teaching inter-ethnic understanding.

50 senior and middle managers in provincial ministries of education trained in SBM, education system management, and educational leadership

10 senior officers from provincial ministries of education were trained overseas in school management in 2007. Provincial education department staff were provided with training on PSI. See the outputs section for further details on the training provided.

Capacity of 9 Provincial Training and Development Units (PTDUs) strengthened

9 PTDUs were strengthened through training provided to master

20 Appendix 1

Design Summary





trainers in PSI, TLM, SBA, TLRDU, and ICT. They were deployed at all PTDUs. Training handbooks were developed and distributed to PTDUs under consultancy packages.

Government is committed to make SMCs operational Schools able to develop partnerships with external organizations Government policy to emphasize on SBA results

1,000 principals and 90 zonal monitoring panels trained to supervise and monitor SBA

SBA training exceeded targets (details under outputs below). No specific training was provided for monitoring panels.

C. Management Efficiency of School System

100 School Management Committee (SMCs) operational

SMCs were implemented in most schools, through MOE Circular # 2008/35.

1,100 schools trained to develop cost-recovery programs by partnership with external organizations

Cost recovery procedures were introduced in most Secondary Education Modernization Project (SEMP) schools with computer learning centers (CLCs). MOE Circular # 2005/29 was issued to facilitate this process.

SBA results integrated with national examination system

SBA was conducted in schools and reported together with O- and A-level examination results. Full integration of SBA is still pending as scores are not yet given a weighting for national

Appendix 1 21

Design Summary





examination results.

Linkages and coordination between MOE and provincial and zonal authorities strengthened

Secretary or MOE chaired Education Development Committee (EDC) meetings were conducted periodically and monitor education activities at provincial and zonal levels.

Capacity of MOE to monitor project activities and conduct monitoring and evaluation activities strengthened

The concept of provincial project management offices (PMOs) was introduced under SEMP II. Progress is reported on a quarterly basis. Short study tours were provided to 15 PMO staff and MOE staff covering 180 person days.

III. Project Outputs

A. Quality and equity of secondary school education improved

1. Upgrading of Facilities and Provision of Equipment

For all indicators: Statistics and report from needs analysis study of 1,100 schools MOE statistics Project monitoring system, quarterly progress reports, and midterm review report Project management office progress reports ADB project performance reports

MOE and provincial education authorities agree on baseline conditions Teachers able to apply modern teaching-learning methods Teachers who receive international training will remain and share expertise with other teachers Sufficient number of teachers who can integrate subjectspecific

A1. Needs and conditions of 1,100 schools determined: baseline conditions defined

A school needs assessment was conducted by the PMO in June 2005, which identified 1,200 schools for inclusion under the project.

A2. Number of schools below the baseline determined and schools categorized

Provincial priority resource allocation lists were prepared and made available to the zonal offices.

A3. Development needs of 800 SEMP I schools determined

Development needs were assessed, but it is not clear if SEMP I schools were provided additional support.

22 Appendix 1

Design Summary





A4. SDPs prepared by SMC for 1,100 schools

SDPs have been prepared in many schools across the country and consolidated by zonal and provincial authorities, as per MOE circulars.

ADB project completion report Reports from provincial and zonal offices ADB review missions Independent consultant’s monitoring and progress evaluation reports

software into their teaching Schools will maintain all new facilities in good working order Schools in disadvantaged areas will have the support to prepare suitable SDPs Adequate funds to attract computer technicians to work in the schools in rural areas School principals able to integrate SBM Enough teacherlibrarians to make use of school libraries Teachers make use of multimedia room to prepare TLRs Host schools will share resources and expertise and with cluster of schools Enough trained mathematics and science teachers in rural and disadvantaged areas to implement O/A-level science and technology. Adequate local funding to sustain teacher salaries and maintain facilities

A5. Monitoring implementation of SDPs

Implementation of SDPs is monitored by zonal and provincial authorities, and by the Education Development Committee of the MOE.

A6. School infrastructure and facilities developed to accepted baseline

Provincial achievements in the provision of facilities are presented in Appendix 2.

A7. Computers and accessories provided to 1,100 schools according to SDP

1,315 schools were provided with computers and accessories. In addition, a further 400 schools in the Northern Province were provided with computers as part of the NPSP.

A8. 1,100 schools provided with multimedia rooms, equipment, and materials

As per the needs assessment, 142 schools were provided with multimedia centers.

A9. Science labs and activity rooms provided for O-level

49 O-level science labs (with equipment) and 7 activity rooms were provided.

A10. Science facilities in 1C schools in underprivileged areas upgraded to 1AB status

A-level science labs (with equipment) were provided to 50 1C schools, thereby upgrading them to 1AB status.

A11. Subsidies to help disadvantaged schools with

Start-up grants were provided for the operational costs of

Appendix 1 23

Design Summary





internet access and computer operations

new CLCs. Annual financial assistance of SLRs50,000 was provided to 361 needy schools for 2 years, to support payment of electricity bills.

Government committed to provide rural students with access to mathematics and science and technology at upper secondary level Government committed to guidance and counseling and ongoing assistance to maintain program after project completion

2. Learning Materials and Teaching Methodologies

A12. 10,000 teachers trained in modern teaching–learning methodologies (TLM), SBA, and teaching learning resource (TLR) production

81,102 principals, deputy principals, and teachers were trained in SBA. 12,653 principals, deputy principals, and teachers were trained in TLM (mostly in the Northern Province). 11,189 principals, deputy principals, and teachers were trained in TLRDU (mostly in the Northern Province). In addition, a number of master trainers and zonal facilitators were also trained in SBA, TLM, and TLRDU.

A13. International staff development for 100 teachers in SBA and modern teaching methods

27 teachers (324 person-days), 27 zonal officers, 5 e-village staff, and 1 MOE staff member were provided with international fellowships on ICT training. 27 zonal officers were provided with international fellowships on SBA training. 1 National Institute of Education (NIE) staff member was

24 Appendix 1

Design Summary





provided with an international fellowship on modern innovative teaching methodologies. 13 PMO and 2 MOE staff were provided with international fellowships on project management training. 10 provincial engineers were provided with international fellowships on construction management training. 10 provincial MOE staff were provided with international fellowships on school management training. 2 provincial MOE staff and 1 MOE staff member were provided with international fellowships on environmental training. 1 External Resources Department (ERD) staff member was provided with master’s degree training.

A14. Educational material for core O- and A-level subjects procured in three

Software (25 units per subject, per grade) for science, mathematics, English, geography,

Appendix 1 25

Design Summary





languages and distributed to 1,100 schools

history, and agriculture was prepared in Sinhala, Tamil, and English for grades 10 and 11. The modules were made available on the MOE online portal (schoolnet), however the use of the modules in schools was limited.

A15. Teaching–learning manuals provided to teachers in SBA, TLR production, innovative teaching methods, and computer-assisted learning (CAL)

Teaching–learning manuals for grades 6–11, where reforms are being implemented, were prepared by the NIE and printed with project support. SBA modalities were also included in these teacher instruction manuals. CAL trained teachers and principals were also provided with further training manuals.

A16. At least 200,000 A-level students computer literate

Over 143,473 students enrolled for the O-level ICT exam in 2007–2010 and about 81% passed. A similar number also enrolled in the A-level ICT exams. Over 80,000 students enrolled in national ICT competitions. Almost all students currently enrolled in SEMP I, SEMP II, and Education for Knowledge Society Project (EKSP)

26 Appendix 1

Design Summary





schools have some computer literacy.

A17. 25,000 ICT guides distributed to 1,000 schools

About 25,000 teachers and education personnel sat the CAL and International Computer Driving License (ICDL) training and received 7 ICT guides as part of the training.

3. Special School and Student Support Programs

A18. At least 1,000 teachers trained as teacher-librarians

1,000 teachers were trained as teacher-librarians. 75% of principals surveyed indicated that training of teacher-librarians was either ―somewhat effective‖ or ―very effective‖.

A19. Pilot project to hire 100 graduates with national diploma in ICT

As the same initiatives are being implemented under PSI, it was agreed at midterm review to discontinue this pilot project.

A20. Career guidance and counseling system in 1,000 schools

The career guidance program was implemented in 50 schools in Homagama, Horana, and Mathugama zones (in Western Province). 2,500 copies of the Handbook on CG for Principals were printed and distributed.

A21. School stipends for 48,000 students

54,690 eligible students in grades 10–13 were

Appendix 1 27

Design Summary





provided with stipends.

A22. Teaching incentives program to attract 200 teachers to rural and disadvantaged areas

On observing that teacher incentive programs cannot be complied with unless changes in the political climate occur, this activity was discontinued at midterm review.

B. Capacity of provincial and zonal offices strengthened

1. Strengthening of Zonal Offices

The train-the-trainer program was delivered as part of content-specific trainings such as ICT, PSI, TLM, TLRDU, and SBA. In total, several individuals trained as master trainers in various areas of expertise: ICT (180), PSI (18), TLM (36), TLRDU (36), and SBA (18). Several more individuals were trained as facilitators in various areas of expertise: ICT (93), PSI (253), TLM (251), TLRDU (251), and SBA (285).

Zonal and divisional offices are committed to carry out monitoring and supervision Provincial offices are committed to SBM Principals, ISAs, zonal monitoring panels are capable to supervising and monitoring SBA in schools Government is committed to make SMCs operational ISAs will train teachers in the production of TLRs and follow-up in the schools on a consistent basis

B1. Train-the-trainer program to develop 25 master trainers and about 450 zonal facilitators

B2. At least 300 ISAs trained in use and production of TLRs

36 master trainers and 251 zonal facilitators were trained in TLRDU.

B3. Training program to strengthen competence of principals, ISAs, and zonal monitoring panels to supervise and monitor SBA

18 master trainers and 285 zonal facilitators were trained in SBA. In addition, a number of principals, deputy principals, and teachers were trained in SBA, as indicated in A12.

28 Appendix 1

Design Summary





No specific training was provided for monitoring panels.

2. Strengthening of Provincial Offices

B4. One international and one domestic consultant in education system management for each province

This was completed under Consultancy Package 1 during 2009.

B5. Train-the-trainer program for senior and middle management in provincial ministries of education on SBM and educational leadership techniques (5 master trainers and at least 50 provincial ministry staff)

18 master trainers, 253 zonal facilitators, and 13,446 principals, deputy principals, and education officers were trained in PSI. SBM/PSI handbooks were produced including: Enhancing Learning through the Programme for School Improvement (PSI); Trainer Guide on Sustainability and Finance for Principals; and a report on Productive and Unproductive Aspects of the PSI Pilot Projects.

C. Government education policies and reforms implemented

1. Support to Decentralized Education Management

All schools will be able to develop partnerships with external organizations

C1. SMC start-up grants

This was not implemented; it was abandoned at midterm review.

C2. 1,000 school principals and SMCs trained in SBM and use of ICT for school management

180 master trainers and 93 zonal facilitators were trained in ICT. A number principals were also trained under the PSI, as mentioned in B5.

Appendix 1 29

Design Summary





School management software was provided with equipment to schools.

NETS will have the support of MOE to implement policy on integrating SBA results into the national examination

C3. Introduction of ICT into school administration system in phases

25,000 education personnel were trained on ICDL/CAL and 1,619 on e-Citizen. An Education Management Information System (EMIS) system was piloted in Uva Province.

C4. Awareness program on SBM and SBA for general public

This was postponed; to be implemented under EKSP.

2. Developing School Partnerships and Sustainability

C5. Train-the-Trainer program to produce 50 local experts to advise SMCs on sustainability measures

This was completed under PSI training modules.

3. Streamlining National Examination System

C6. Consulting services to the National Education Testing Service (NETS) for streamlining national testing and evaluation process and computerizing operations

It is unclear what the outcome of consulting service support has been on streamlining national testing and evaluation processes.

C7. Capacity of NETS strengthened to integrate SBA results into national examination system

The SBA facilitation program to validate and enhance reliability and credibility of SBA grades awarded by teachers was launched by NETS in December 2006.

30 Appendix 1

Design Summary





The integration of SBA testing modalities in term tests of some provinces was piloted. Full integration of SBA results at the national level is a work in progress. Discussions have begun among officials of the MOE, NIE, NETS and National Education Commission to formulate strategies for the integration and improvement of SBA in the school system.

4. Modernizing Curriculum MOE commitment

to modernize curriculum MOE is committed

to coordinate with provincial and zonal offices

C8. 8 options within O-level technical studies and civic curriculum developed by NIE

These options were developed under SEMP I. SEMP II provided equipment to over 200 schools to pilot technology options in A-levels (126 in soft technology, and 167 in hard technology).

5. Capacity Building of Central Ministry

C9. Capacity of MOE to establish coordination with provincial and zonal authorities developed

National Education Development Committee meetings were conducted periodically and provincial and zonal activities were monitored. PTDUs were established in all 9 provincial offices.

C10. Capacity of MOE to monitor project activities and conduct monitoring and

Provincial and zonal progress review was strengthened.

Appendix 1 31

Design Summary





evaluation activities strengthened

a Sri Lanka Labour Force Survey, 2010: www.statistics.gov.lk

Source: Asian Development Bank.

32 Appendix 2

FACILITIES PROVIDED TO PROJECT SCHOOLS

Original Targeta

Revised Target and Completed Number

of Schoolsb

Establishment of computer learning centers 353 372

Establishment of additional A-level science labs

41 48

Supply of electricity to schools 35 58

Establishment of multimedia centers 115 142

Establishment of O-level science labs 28 49

Upgrading libraries 30 31

Construction of sanitary facilities 150 360

Construction of water supply 150 110

Photocopy machine 135 135

Fax machine 35 35

Establishment of activity rooms 7

Conversion to science rooms 37

Construction of office rooms 40

Construction of agricultural laboratories 43

Improvements to schools 85

Technical workshops 34

Rooms for multi-study purposes 100

Development of onsite environmental centers

38

a Quarterly Progress Report First Quarter, 2006

b Quarterly Progress Report Third Quarter, 2010

Appendix 3 33

MANUALS, HANDBOOKS, AND DOCUMENTS PRODUCED

Consultancy Package

Title Available

Language(s) Author Name(s)

1 Introductory Handbook: An Introduction to the Training Resources

English, Sinhala, Tamil

W.G. Kularathne T. McCaul

1 Handbook 2: Leadership Strand



1 Handbook 3: Enhancing Learning Strand

English Sinhala, Tamil


1 Handbook 4: PSI in Practice English, Sinhala, Tamil


2 Teaching Learning Methodologies


R.D.L.C. Gonzales A. Jayasena

2 Innovative Teaching English, Sinhala, Tamil

R.D.L.C. Gonzales A. Jayasena

2 Teaching Learning Resources Development and Use


R. Simmons M.B. Ekanayake

2 Teaching Learning Resources that Work


R. Simmons M.B. Ekanayake

2 Information Literacy for Teachers

English L. Fromm R. De Silva

2 Environmental Literacy Guide


D. Werasekara

2 School Based Assessment Facilitators: Handbook for Master Trainers


R.A. Cammert S. Perera

2 Notes on Cutting-Edge: Seminar on Teaching and Learning

English M.B. Ekanayake R.D.L.C. Gonzales A. Jayasena R. Simmons

2 Enhancing Facilitating Skills English, Sinhala

M.B. Ekanayake R.D.L.C. Gonzales A. Jayasena R. Simmons

2 Trainers’ Workbook for Teacher-Librarians

English L. Fromm

3 Computer-Assisted Learning Orientation Manual for Provincial Master Trainers

English D.M. Sanchez

3 Computer-Assisted Learning—Content Development Process and Best Practices Manual

English C.N. Gunawardene

3 Potential Unit-Wise Topics for CAL Development: Grade 10 English/Mathematics/Science

English C.N. Gunawardene D.M. Sanchez

34 Appendix 3

Consultancy Package

Title Available

Language(s) Author Name(s)

3 GeoGebra Workshop Handbook

English

3 Silver Light Workshop Handbook

English

3 Attributes Required for Occupations Handbook

English D.G.S. Wikramarachchi

3 Career Ladder Handbook English D.G.S. Wikramarachchi

3 Career Guidance Officers’ Training Manual


3 Career Guidance Instructional Manual


3 Computer-Assisted Language Learning and Community of Practice Manual for DIP TESL

English S. Walz L. Barril

3 Integration of SchoolNet and CAL into the Secondary Curriculum and Developing an Online Community of Practice—Workshop Manual for NIE

English C.N. Gunawardene D.M. Sanchez C. Kulasekara

3 SchoolNet Moodle Teaching, Learning and Administration for CAL Sustainability

English

App

end

ix 4

35

ORIGINAL COST ESTIMATES AND FINANCING ARRANGEMENTS AGAINST ACTUAL EXPENDITURES

Per Appraisal ($ million) Actual Cost ($) Total Actual ADB and Counterparts Funds ($)

Foreign Exchange

Local Currency

Total

ADB Counterpart Funds

Category ADB Govern-

ment Bene-

ficiaries FX LC Total Govern-

ment Bene-

ficiaries Total %

A. Base Cost

1. Civil Works 0.000 3.639 5.499 0.450 9.588 3,645,832 3,645,832 5,897,050 9,542,882 20%

2. Equipment 8.543 0.428 8.971 9,329,204 927,046 10,256,250 10,256,250 22%

3. Furniture and Vehicles 0.257 1.111 1.368 864,456 735,011 1,599,467 1,599,467 3%

4. Learning Materials 0.450 1.482 1.932 1,770,432 427,979 2,198,411 2,198,411 5%

5. Consulting Services 2.566 2.566 2,148,289 2,148,289 2,148,289 5%

6. Staff Development and Training 1.307 0.929 2.236 460,199 3,196,669 3,656,868 3,656,868 8%

7. Surveys and Studies 0.000 0.250 0.250 74,150 74,150 74,150 0%

8. Pilot Initiatives and Special Programs 0.000 0.497 0.497

9. Stipends and Scholarships 2.400 2.400 4,688,103 4,688,103 4,688,103 10%

10. Special School Grants 3.504 0.166 3.670 2,365,445 2,365,445 2,365,445 5%

11. Incremental Recurrent Costs 2.351 0.180 1.050 3.581 4,261,589 4,261,589 1,829,870 6,091,459 13%

Total Base Cost 13.123 16.591 5.679 1.666 37.059 14,572,580 20,321,826 34,894,405 7,726,920 0 42,621,325 90%

12. Taxes and Duties 2.647 2.647 3,788,830 3,788,830 8%

Base Cost + Taxes and Duties 13.123 16.591 8.326 1.666 39.706 14,572,580 20,321,826 34,894,405 11,515,750 0 46,410,155 0%

B. Contingencies 1.007 3.346 1.956 0.083 6.392 0 0 0 0 0 0

1. Physical Contingency 0.636 0.850 0.416 0.083 1.985

2. Price Escalation 0.371 2.496 1.540 4.407

C. Interest Charge 0.889 0.889 757,254 0 757,254 0 0 757,254 2%

Total Project Cost 15.019 19.937 10.282 1.749 46.987 15,329,833 20,321,826 35,651,659 11,515,750 0 47,167,409 92%

Percentage 32% 42% 22% 4% 100% 33% 43% 76% 24% 100%

ADB = Asian Development Bank, FX = Foreign Exchange, LC = Local Currency. Source: Asian Development Bank.

36 Appendix 5

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Loan Agreement Loan Covenant Status

Article IV Section 4.01 (a)

In the carrying out the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 6 to this Loan Agreement.

Complied with as of 19 May 2005.

Article IV Section 4.02 (a)

The Borrower shall (i) maintain, and cause the MOE and each Provincial Council to maintain, separate accounts for the Project; (ii) have, and cause the MOE and each Provincial Council to have, such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 9 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement and the use of the procedures for imprest account and statement of expenditures issued under the Project), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Complied with.

Article IV Section 4.02 (b)

The Borrower shall enable ADB, upon ADB's request, to discuss each of the Borrower's, the MOE’s and each Provincial Council’s financial statements for the Project and its financial affairs related to the Project from time to time with the Borrower's auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower shall otherwise agree.

Complied with. ADB SLRM conducted procurement audit in April 2009. The financial statements were also checked by the ADB audit team.

Article IV Section 4.03

The quarterly reports to be furnished pursuant to Section 6.05(a) and (b) of the Loan Regulations shall be furnished within 30 days of the end of each quarter.

Complied with. Quarterly reports were sent for each quarter from 1 June 2005 within the stipulated time period.

Article IV Section 4.04

The Borrower shall enable ADB's representatives to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents upon reasonable notice.

Complied with. All records relating to goods, financial records, and documents were forwarded to ADB as requested.

Appendix 5 37


Schedule 3 Para 9

Except as ADB may otherwise agree, the Borrower shall establish immediately after the Effective Date, an imprest account at the Central Bank of Sri Lanka. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB's "Loan Disbursement Handbook" dated January 2001, as amended from time to time and detailed arrangements agreed upon between the Borrower and ADB. The initial amount to be deposited into the imprest account shall not exceed the equivalent of 10 percent of the Loan or six months’ Project expenditure, whichever is less.

Complied with. Imprest account was established on 1 June 2005. Initial advance of $1,466,680 was received on 7 July 2005.

Schedule 3 Para 10

The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures under the Project and to liquidate advances provided into the imprest account, in accordance with ADB's "Loan Disbursement Handbook" dated January 2001, as amended from time to time and detailed arrangements agreed upon between the Borrower and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed the equivalent of $100,000 or such other amount as maybe agreed upon between the Borrower and ADB.

Complied with. Reimbursement of expenditure and direct payment were done in accordance with ADB's disbursement procedure starting from 6 July 2005. The imprest account advance was fully liquidated on 3 December 2010.

Schedule 3 Para 11

Notwithstanding any other provision of this Loan Agreement, after the initial withdrawal of the imprest account advance from the Loan Account no withdrawals shall be made from the Loan Account for replenishment of the imprest Account, direct payment or reimbursement to finance the provision of civil works, equipment, furniture and vehicles, materials, or School Development Grants (Categories 1 through 4, and Category 9 as described in the Attachment to this Schedule 3) for any school, without a certification from the Borrower that in the case of a national school, the MOE has approved such school’s School Development Plan, or in the case of any other school, the Provincial Council and the MOE have each approved such school’s School Development Plan.

Complied with.

Schedule 3 Para 12

For consultancy services, a direct payment procedure shall be established in accordance with ADB’s ―Loan Disbursement Handbook‖ dated January 2001, as amended from time to time, and detailed arrangements agreed upon between the Borrower and ADB.

Complied with. All the consultancy payments were effected under direct payment procedure.

38 Appendix 5


Schedule 6 Para 1

The Borrower shall ensure the continuity of the implementation of SEMP and SEMP II (a) so that there is no disruption to the overall strategy for secondary education modernization in Sri Lanka; (b) to maximize the institutional memory, institutional learning and institutional capacity (including financial management capacity) obtained in the MOE throughout the implementation of SEMP; and (c) so that SEMP II builds on and expands the foundations for secondary education modernization developed under SEMP.

Complied with. Foundations for modernization of secondary education developed under SEMP I were further enhanced under SEMP II during June 2005–December 2010. The institutional and management arrangements remained the same, and there was seamless transition to continue key programs.

Schedule 6 Para 2

The Borrower shall allocate sufficient counterpart funds in its budget for MOE to carry out the Project in each year of implementation of the Project. The Borrower shall also allocate sufficient counterpart funds in its budget for MOE to cover the incremental recurrent costs of extending the Teacher Incentive Pilot Program and providing allowances for Zone trainers and facilitators to visit schools for at least 7 years following the Closing Date. If the counterpart funds to be provided by beneficiaries are insufficient to carry out their component of the Project, the Borrower shall ensure that it allocates funds to cover any unfunded balance.

Complied with. Barring a few delays, counterpart funds were received adequately through the MOE annual budget from the start of the project in 2005.

Schedule 6 Para 3

The Borrower shall ensure that the inter-ministerial Steering Committee established under SEMP shall be maintained in a manner satisfactory to ADB. The Steering Committee shall be responsible for providing overall policy guidance to the Project, coordinating and liaising with other government agencies and departments, monitoring the Project’s activities and outputs including the quarterly report, and providing feedback to the PMO and each PPMO. The Steering Committee shall be chaired by Secretary, MOE and shall be comprised of the Project director and representatives from MOE, the external resources department of the MOF, the National Planning Department, NIE, NETS, the Ministry of Education of each Provincial Council, and the National Education Commission. The Steering Committee shall meet initially within 3 months of the Effective Date, and thereafter at least quarterly.

Complied with. The PSC was established on 5 August 2005, and overall policy guidance was given throughout the project period. Minutes of PSC meetings were sent to ADB for information.

Appendix 5 39


Schedule 6 Para 4

The Borrower shall ensure, and shall cause each Provincial Council to ensure that a provincial project management office (―PPMO‖) is established under the Project and as an office within each Provincial Council’s Department of Education. Each PPMO shall (a) coordinate and account for all Project activities occurring in its respective province, (b) manage and disburse School Development Grants, (c) assist each Zone office in its respective province compile the list of the needs of each SEMP II School in its respective Zone, and (d) investigate and attempt to resolve any complaints concerning the Project at the sub-Provincial level. The Borrower shall ensure, and shall cause each Provincial Council to ensure for its respective PPMO, that each PPMO is staffed by a provincial Project manager and a secretary and is provided with a transport and operational budget.

Complied with. PPM offices were established on 1 June 2005, headed by a Provincial Project Manager in the Provincial Department of Education premises. A secretary cum clerk and a driver were appointed for each PPM office. The PPM was responsible for managing, monitoring, and supervising all activities relating to SEMP II in the province.

Schedule 6 Para 5

Within 3 months of the Effective Date, the Borrower shall cause the MOE to establish a complaint investigation and resolution mechanism within the Internal Audit Department of the MOE. The complaint investigation and resolution mechanism shall be responsible for (a) reviewing and addressing complaints from end-users, beneficiaries and other stakeholders of the Project, in relation to either the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (b) establishing the threshold criteria and procedures for handling such complaints, for proactively and constructively responding to them, and for providing the public with notice of such mechanism, including publishing notices in newspapers. Such criteria and procedures shall be subject to ADB’s approval. A full-time professional staff of MOE shall be dedicated to the mechanism and report directly to the Secretary MOE.

Complied with. SEMP II is under the purview of the MOE investigation unit and internal audit unit, headed by professional staff, and is directly responsible to the MOE secretary. These units have a well-developed complaint resolution mechanism accepted by the government.

Schedule 6 Para 6

Within 3 months of the Effective Date, the Borrower shall (a) obtain a letter of commitment from each Provincial Council agreeing to implement the Project in its respective province, and to implement the terms and conditions of this Loan Agreement to the extent within its responsibility; and (b) cause each Provincial Council to (i) provide a letter, attaching information on the Project to the education office in each Zone, including a clear explanation of the roles of the Zone in the Project, and requesting agreement and acknowledgement from such Zone; and (ii) conduct an information workshop for relevant participants in the Project from each Zone

Complied with. Letters of commitment were obtained on 5 August 2005 from provincial authorities agreeing to implement project activities. Several workshops and familiarization seminars on SEMP II activities were held for provincial and zonal officers.

40 Appendix 5


Schedule 6 Para 7

Within 6 months of the Effective Date, the Borrower shall cause each Zone to provide a letter of agreement and acknowledgement to each Provincial Council agreeing to implement the Project in their respective Zone and to carry out the activities requested by the Provincial Council.

Complied with. Acknowledgement to carry out SEMP II activities was received on 30 August 2005 from zonal and provincial authorities.

Schedule 6 Para 8

The Borrower and ADB agree that the minimum baseline conditions for secondary schools in Sri Lanka to educate students in Grades 10-13 shall include the following for each school: (a) Compliance with the Norms for the Provision of

Facilities published by MOE in 2004 which set out the minimum norms for the provision of school infrastructure;

(b) A sufficient number of teachers with qualifications in each relevant subject who regularly attend and teach at the school;

(c) Provision of administration staff sufficient to manage and maintain a school office;

(d) At least one whiteboard or blackboard in each classroom;

(e) Provision of a sufficient number of overhead projectors relative to the school’s size;

(f) Access to sufficient stationary and similar teaching utensils to supply a school for an entire academic year;

(g) Provision of a range of science and technology subjects taught up to at least O Level;

(h) A science and technology workshop equipped for practical activities and experiments;

(i) A science laboratory equipped with sufficient instruments, equipment, and materials for practical activities and experiments to be conducted at least up to O Level for an entire academic year;

(j) A school principal who is active in school management and maintains a working relationship with its School Management Council, and seeks to obtain financial or in-kind support from such School Management Council for school programs;

(k) The implementation of continuous assessment of students, including a range of practical work;

(l) Planning for the development of knowledge and practice in School Based Assessment for teachers;

(m) A staff-member responsible for career guidance

Complied with. Provision of minimum baseline conditions provided by the government for secondary school students were enhanced under SEMP I and continued under SEMP II from August 2005. (a) Undertaken as

required. (b) At least 1 teacher

was assigned for each subject.

(c) Administrative staff provided.

(d) Provided.

(e) Provided. (f) Provided.

(g) Provided.

(h) Provided.

(i) Provided.

(j) Appointed.

(k) Undertaken for some

subjects only. (l) Planning workshops

conducted in all provinces by NETS and being continued.

(m) Appointed.

Appendix 5 41


and employment skills development who maintains networks with likely employers of school leaving students;

(n) A room or area designated for providing career information to students and a program for career guidance and employment skills development for school leaving students;

(o) A room or area designated for private student counseling;

(p) A training program for staff members who provide career counseling and student counseling; and

(q) Such other objective and verifiable criteria, or revisions to the above criteria, as may be proposed by the Borrower following a transparent process of public consultation with Project stakeholders, and agreed between the Borrower and ADB in a separate writing.

(n) Provided.

(o) Provided.

(p) Provided.

(q) Complied with.

Schedule 6 Para 10

Within one month of the Effective Date, the Borrower shall ensure that each Zone education office, in consultation with Project stakeholders (a) uses the Needs Analysis Survey to update the MOE school census for school’s within its respective Zone; (b) compares the needs for each SEMP II School in its respective Zone relative to the Baseline Conditions and proposes a priority list for resource allocations to SEMP II Schools in its respective Zone together with reasons for its priority listing (each list a ―Zone List‖); and (c) provides its Zone List to the relevant PPMO.

Complied with. The Need Analysis Survey was completed on 1 July 2005 and a draft priority list was compiled and distributed to schools and PPMOs.

Schedule 6 Para 11

Within two months of the Effective Date, the Borrower shall ensure that each PPMO (a) reviews and compares each Zone List, and prepares a priority list for resource allocations to SEMP II Schools in its respective Province together with reasons for its priority list (each list a ―Provincial List‖); (b) makes each Zone List from Zones in its respective province and the Provincial List available to the public by posting it in a readily accessible place in each PPMO; and (c) provides its Provincial List to the PMO

Complied with. PPMOs reviewed the priority list and finalized it in July 2005 at PPM monthly meetings.

Schedule 6 Para 12

Within four months of the Effective Date, the Borrower shall ensure that the PMO (a) reviews and compares each Provincial List, and (b) prepares the draft resource allocation list for all SEMP II Schools;(the ―Draft List‖); and (c) provides the Draft List to the Steering Committee for approval.

Complied with. The draft list was submitted to the Project Steering Committee on 5 August 2005.

Schedule 6 Para 13

Within six months of the Effective Date, the Borrower shall ensure that the Steering Committee approves the Draft List (the approved list the ―Resource Allocation List‖), or returns it to the PMO together with reasons for rejection. If the Draft List is returned to the PMO, the PMO shall work with the relevant PPMOs and Zone offices to revise the Draft List for resubmission to the Steering Committee for approval.

Complied with. Approval was granted for the PSC resource allocation list on 5 August 2005.

42 Appendix 5


Schedule 6 Para 14

The Borrower shall ensure that (a) the PMO advises each PPMO, and each Zone office of the Resource Allocation List for all SEMP II Schools; and (b) the Resource Allocation List is available to the public by posting it in a readily accessible place in the PMO and each PPMO and Zone

Complied with. The completed resource allocation list was forwarded to the PPMOs to be sent to schools after obtaining approval on 5 August 2005.

Schedule 6 Para 15

Within one months of the Effective Date, the Borrower shall cause each Zone education office to classify each SEMP II School in its respective Zone into one of four categories set out below. The four categories are as follows:

(a) Small Schools shall mean SEMP II Schools with less than 100 students in Grades 10 to 13 and less than 250 students in total;

(b) Medium Schools shall mean SEMP II Schools with less than 100 students in Grades 10 to 13 and more than 250 students in total;

(c) Large Schools shall mean SEMP II Schools with more than 100 students and less than 500 students in Grades 10 to 13; and

(d) Very Large Schools shall mean SEMP II Schools with more than 500 students in Grades 10 to 13

Complied with. The MOE completed the classification of schools on 1 July 2005.

Schedule 6 Para 16

The Borrower shall ensure that each Zone provides the classification list for SEMP II Schools in its respective Zone to each PPMO, and such PPMO shall compile each classification list received and forward the compilation of such classification lists to the PMO for approval. The PMO shall approve each such classification list or liaise with the respective Zones or PPMOs to agree upon changes, whereupon such agreed classification shall thereafter be approved by the PMO (the approved list the ―Classification List‖).

Complied with. PPMOs submitted the classification list to the PMO and approval was granted on 1 September 2005.

Schedule 6 Para 17

Except as proposed by the Borrower and acceptable to ADB, the funding formula for School Development Grants and Computer Learning Center start-up grants shall be as follows: (a) Small Schools shall be entitled to a School

Development Grant of $600 per year for 5 years; (b) Medium Schools shall be entitled to a School

Development Grant of $1,000 per year for 5 years;

(c) Large Schools shall be entitled to a School Development Grant of $600 per year for 5 years unless they have been provided a Computer Learning Center; and

(d) Very Large Schools shall be ineligible to receive School Development Grants.

Complied with. Release of SDG and CLC start-up grants was approved by the PSC on 5 August 2005, which continued to release funds thereafter. SDGs were provided to 814 schools at SLRs60.4 million per year. CLC start-up grants were provided to 361 schools at SLRs18.05 million per year.

Appendix 5 43


Schedule 6 Para 18

The Borrower and ADB agree that (a) approximately 350 schools shall be identified to receive a Computer Learning Center during the Needs Analysis Survey; (b) one school shall be identified in each of the approximately 292 educational divisions and an additional school shall be identified in each of the approximately 61 divisions where there is no Type 1 AB school; and (c) rural schools will be given priority.

Complied with. 372 schools were provided with CLCs by the end of the project, in accordance with the agreed criteria.

Schedule 6 Para 19

The Borrower shall cause the PMO to (a) determine the priority allocation for providing School Development Grants and Computer Learning Centers; and (b) ensure all schools that are to receive a Computer Learning Center receive a Computer Learning Center start-up grant of $500 per year for 2 years.

Complied with. The Project Steering Committee approved the start-up grant on 5 August 2005 and the grant continued for 2 years.

Schedule 6 Para 20

The Borrower and ADB agree that SEMP II Schools that have the following criteria shall be eligible for a Computer Learning Center and multimedia equipment: (a) such school is a Large School; provided that if

there are no eligible Large Schools in a division the Borrower may identify alternative schools, that must be acceptable to ADB;

(b) such school has the financial and managerial capacity to operate a Computer Learning Center as demonstrated in the School Development Plan for such SEMP II School, including (i) at least one staff member who will be responsible for the management of the Computer Learning Center; (ii) at least one staff member who will be responsible for providing ICT training to students; and

(c) Such school has access to a reliable source of electricity sufficient to operate the Computer Learning Center.

Complied with. Schools were selected for the provision of CLCs as mentioned in the loan agreement. Schools have assigned a teacher to manage CLCs. An electricity supply was made available to all CLCs before providing equipment.

Schedule 6 Para 21

(a) The Borrower and ADB agree that a SEMP II School shall be eligible for improvement or upgrade to an operational Type 1AB School if it satisfies the following criteria (a ―A Level Eligible School‖): (i) It is a Type 1AB School that does not

have a complete A Level science laboratory or other science facilities, or is a Type 1C School;

(ii) Provision of a sufficient number of graduate science teachers with qualifications in each relevant A Level science subject who regularly attend and teach at the school has been assured in writing (a) in the case of national schools by the MOE; and (b) in the case of provincial schools by the respective Provincial Council; and

(iii) There are sufficient numbers of students who would enroll in A Level science

Complied with from 5 August 2005.

44 Appendix 5


subjects to warrant new science facilities. (b) If there is no such A Level Eligible School in a

division, the Borrower and ADB agree that a Type 1C School that does not have a complete O Level science laboratory or other facilities shall be eligible for improvements to its O Level science facilities (a ―O Level Eligible School‖) or other teaching facilities.

Schedule 6 Para 22

(a) The Borrower and ADB agree that at least one A Level Eligible School in each division, or in divisions that have mixed Sinhala and Tamil populations at least two A Level Eligible Schools (one that uses the Sinhala medium for teaching and one that uses the Tamil medium for teaching), shall be provided with the science and other facilities and resources necessary for it to be a fully operational A Level school with complete A Level science laboratory and other facilities.

(b) If no A Level Eligible Schools exist in a division, the Borrower and ADB agree that an O Level Eligible School shall be provided with the science and other facilities and resources necessary for it to have a fully operational science laboratory or other science facilities with complete O Level science laboratory and other facilities and curriculum, or modern teaching facilities proposed by the Borrower and acceptable to ADB.

(c) In the case of either sub-paragraph (a) or (b) of this paragraph 22, this may include the upgrade of existing facilities or the construction of new science laboratories or facilities.


Schedule 6 Para 23

Within 6 months of the Effective Date, the Borrower shall: (a) prepare a review and synthesis of its policy on

decentralization in education (the ―Decentralization Review‖) as contained in the Thirteenth Amendment to the Constitution 1987, the NIE Act, and the Provincial Council’s Act No. 42 1987;

(b) based upon the Decentralization Review, develop action plans with concrete time-bound targets for implementing decentralization of education to cover the next 12 months (the ―Short term Action Plan‖), the next 3 years (the ―Medium Term Action Plan‖) and the next 10 years (the ―Long-Term Action Plan‖). Such action plans shall build upon and be consistent with the Borrower’s Five Year National Plan for the Development of Secondary Education (the ―Five-Year Plan‖) and shall include consideration of the roles, responsibilities and functions of each level of, and each entity and agency engaged in,

Partly complied with. (a) Partly developed. Not

finalized. (b) Some SBA public

awareness programs were conducted and will be enhanced in Loan 2371-EKSP.

Appendix 5 45


educational administration in relation to regulation, finance, and organizational development. The Borrower shall also have defined a clear concept of School Based Management based on national studies and internationally recognized and accepted definitions of the term, and conducted public awareness programs on School Based Management.

Schedule 6 Para 24

Within 6 months of the Effective Date, the Borrower shall: (a) have prepared a review (the ―Teacher Transfer

Review‖) of aspects of the incentives and disincentives for teacher transfers to rural and disadvantaged areas; and

(b) based upon the Teacher Transfer Review, develop a comprehensive action plan (the ―Teacher Transfer Action Plan‖), with concrete time-bound targets to cover the next 12 months, and the next 3 years for improving teacher transfer to such areas. The Teacher Transfer Action Plan shall build upon and be consistent with the Five Year Plan and shall include strategies to ensure strict implementation of the teacher transfer policy, as well as incentives for teacher transfer to rural and disadvantaged areas, and disincentives as appropriate.

Complied with. A teacher transfer policy has been prepared by the MOE and is being implemented in the system.

Schedule 6 Para 25

Within 6 months of the Effective Date, the Borrower shall have developed and implemented a comprehensive action plan with concrete time-bound targets to cover the next 12 months and the next 3 years, to mainstream ICT education in secondary schools (the ―ICT Action Plan‖). The ICT Action Plan shall build upon and be consistent with the Borrower’s National Policy on Information Technology in School Education (2001) and the Five Year Plan and shall include curriculum development, teacher training, development of TLR, and management of ICT facilities.

Complied with. The MOE ICT action plan has been included in the 5 year plan.

Schedule 6 Para 26

Within 2 years of the Effective Date, the Borrower shall have introduced 8 practical subjects within O Level technical studies and 6 practical subjects within A Level technical studies, in accordance with the Five Year Plan.

Complied with.

Schedule 6 Para 27

The Borrower shall cause MOE to: (a) implement the stipend programs provided under

the Project under arrangements satisfactory to ADB; and

(b) to ensure that the stipends are administered to recipient schools for eligible students in accordance with criteria proposed by the Borrower and acceptable to ADB.

Complied with. This program was administered by the PMO throughout the project.

46 Appendix 5


Schedule 6 Para 28

The Borrower shall cause each SEMP II School to develop a School Development Plan and shall ensure, and shall cause monitoring of each Provincial Council to ensure that no civil work, equipment, or financial support is provided to any school under the Project, in the case of a national school, without the MOE’s approval of such school’s School Development Plan, and in the case of any other school, without the MOE’s approval, and the Provincial MOE’s approval, of such school’s School Development Plan. The Borrower shall cause the MOE to allocate proceeds of the Loan to finance all such School Development Plans in accordance with the Resource Allocation List and the Funding Formula. The Borrower shall also make available an advance of funds from its budget to each Provincial Council, so that such Provincial Council, through its PPMO, can disburse each School Development Grant allocated to SEMP II Schools in its province, to such SEMP II Schools. The Borrower shall cause each such Provincial Council to make each School Development Grant available to each SEMP II School in such Provincial Council’s province in accordance with allocations made under the Resource Allocation List and Funding Formula, and satisfactory to ADB. The Borrower shall cause each Provincial Council, through its PPMO to submit details of such expenditures to the PMO. The PMO shall reimburse the Borrower for the amount of such expenditures from the Project imprest account. The imprest account shall be replenished in accordance with this Loan Agreement.

Complied with from 31 December 2005. The imprest account was replenished during project implementation in accordance with the loan agreement. This was modified in May 2009 to permit the MOE to make funds available from the imprest account to each PC, so that they could disburse SDGs through their PPMOs.

Schedule 6 Para 29

The Borrower and MOE shall ensure that the candidates selected for the overseas fellowships (the ―Overseas Fellowships‖) satisfy criteria proposed by the Borrower and acceptable to ADB. Teacher candidates shall have served in a rural or disadvantaged area for at least 1 year prior to the award of such Fellowships, and shall not exceed the age limit of 52. Zone facilitator candidates shall not exceed the age limit of 52.

Complied with from 5 August 2005. ADB approval was obtained prior to award of fellowships.

Appendix 5 47


Schedule 6 Para 30

The Borrower shall ensure MOE provides ADB with a list of nominated candidates, their qualifications and experience, and the detailed cost estimates of proposed courses and expenses. ADB’s approval shall be required prior to the award of Overseas Fellowships. The Borrower shall ensure that a strict selection and bonding is adopted in connection with Overseas Fellowships provided under the Project to ensure that (a) the teacher recipients of the Overseas Fellowships continue their services in a rural or disadvantaged area for a further two years upon completion of the Overseas Fellowship; and (b) the Zone facilitator recipients of the Overseas Fellowships continue their services in the same or a similar Zone for a further two years upon completion of the Overseas Fellowship.

Complied with from 5 August 2005. All the information related to overseas training was sent to ADB for approval. Selection was made in accordance with the stipulated and approved criteria.

Schedule 6 Para 31

The Borrower shall, and shall cause MOE to, ensure that (a) local training is provided to candidates in accordance with arrangements satisfactory to ADB; and (b) the candidates selected for the local training satisfy the criteria proposed by the Borrower and acceptable to ADB.

Complied with from 5 August 2005. All local trainees were selected as per the agreed criteria.

Schedule 6 Para 32

The Borrower shall ensure that a strict selection criteria is adopted in connection with local training provided under the Project to ensure that (a) the teacher recipients of the local training continue their services for no less than 12 months upon completion of the training; and (b) the Zone facilitator recipients of the local training continue their services in the same or a similar Zone for a minimum of a further two years upon completion of the training.

Complied with from 5 August 2005. The selections were made in terms of Government guidelines in order that teachers serve a minimum of 2 years after training.

Schedule 6 Para 33

Within 3 years of the Effective Date (a) the Borrower shall integrate School Based Assessment into the determination of the results for O Level and A Level national examination certification; and (b) the NIE and NETS shall establish a working committee to develop a comprehensive School Based Assessment system that covers Grades 6-13.

Partly complied with. Integration of SBA for GCE O- and A-level has begun in a few subjects and is being introduced in other subjects.

Schedule 6 Para 34

The Borrower shall ensure and shall cause each Provincial Council to ensure that computer facilities, and A Level science laboratories will not be provided to any school, unless such schools have teaching staff that are (a) qualified and experienced in computer training and A Level science teaching as relevant, and are capable of using such facilities for teaching classes to students, and (b) afforded sufficient time by their respective school to teach such classes.

Complied with from 5 August 2005. Trained ICT and science teachers are being recruited to schools by the MOE.

48 Appendix 5


Schedule 6 Para 35

The Borrower shall cause (a) the respective education department of each Provincial Council, (b) each SEMP II School provided a Computer Learning Center and (c) its School Management Council to monitor the use of Computer Learning Centers provided to each school under the Project, under arrangements satisfactory to ADB, which may include levying a fee for computer usage, and if such fee is levied: (i) depositing the fee into a separate account in the name of the school; and (ii) utilizing the funds in such account for school-related activities, including the maintenance and operation of the Computer Learning Center.

Complied with. Usage of CLCs is being monitored and all schools have opened separate bank accounts. Funds generated are being used for CLC maintenance.

Schedule 6 Para 36

The Borrower shall ensure that (a) all selection criteria for stipends, scholarships and incentive programs awarded under the Project conform to agreed transparent, objective and verifiable selection criteria that is acceptable to ADB, and (b) the award of any such stipends, scholarships and incentives is distributed equitably among beneficiaries of different ethnic groups, and among each gender.

Complied with. Incentive programs covered all provinces and were equitably distributed among ethnic groups and genders from the start of the project.

Schedule 6 Para 37

Within 4 years of the Effective Date (a) the Borrower and ADB shall evaluate the impact of stipend programs provided under the Project; and (b) based on the findings of the evaluation and subject to the availability of resources, the Borrower shall fund these stipend programs from its own resources after Project completion.

Complied with. Impact evaluation of the stipend program was conducted by an independent national consultant in September 2009. The recommendations are being considered by the MOE.

Schedule 6 Para 38

Within 1 year of the Effective Date (a) the Borrower shall commence implementation of and no later than the midterm review the Borrower and ADB shall evaluate the impact of each of the School Management Council Pilot Program, the Teaching Incentive Pilot Program, and the NDICT Pilot Program; and (b) the Borrower shall based on the findings of the evaluation, continue to fund these programs from its own resources after completion of the pilot programs.

Dropped. This covenant was judged irrelevant during the October 2008 midterm review, as similar pilot activities are already being undertaken under the PSI.

Schedule 6 Para 39

Within 2 years of the Effective Date the Borrower shall (a) have implemented and shall evaluate the public-private partnership program for school development under SEMP II, which shall include a comparison of the results with the evaluation of the public-private partnership program under SEMP, (b) make recommendations based upon such evaluation for an action plan on public-private partnerships, which shall include a definition of the concept of public-private partnership in secondary education upon which to pursue future programs, and (c) provide ADB with the findings and recommendations of such evaluation.

Complied with. Several PPP programs supported by institutions such as Microsoft, Intel, and Oracle were conducted in teacher training, competitions etc. under SEMP II and are being continued.

Appendix 5 49


Schedule 6 Para 40

The Borrower shall ensure that any unanticipated or unforeseen land acquisition and resettlement are implemented in accordance with all applicable laws and regulations, the resettlement framework attached as Attachment 1 to this Schedule 6 and ADB’s operational policy on involuntary resettlement.

Complied with. No major unforeseen land acquisition or resettlement occurred during the project period.

Schedule 6 Para 41

The Borrower shall ensure, and shall cause the MOE and each Provincial Council to ensure, that the gender action plan that has been agreed between the Borrower and ADB contained within the Summary Poverty Reduction and Social Strategy attached as Appendix B to the RRP is implemented in accordance with its terms and that implementation has commenced no later than 3 months after the Effective Date.

Complied with. A Gender Action Plan focusing on the conflict areas was prepared in 2009.

Schedule 6 Para 42

The Borrower shall ensure, and shall cause the MOE and each Provincial Council to ensure, that the Ethnic Minority Development Framework, agreed between the Borrower and ADB attached as Attachment 2 to this Schedule 6 is implemented in accordance with its terms and that implementation has commenced no later than 3 months after the Effective Date.


Schedule 6 Para 44

The Borrower shall cause (a) each Zone to supply monitoring reports to each respective PPMO of the implementation of each school's activities under this Project, and (b) each Provincial Council to supply each Zone's report of the implementation of each school’s activities under the Project to the PMO. The Borrower shall also cause the PMO, and shall cause each Provincial Council to cause each PPMO, to conduct random compliance monitoring of the implementation of school activities under the Project.

Complied with from 1 November 2005. Random compliance monitoring of activities was done by the PMO Monitoring and Evaluation Unit.

Schedule 6 Para 45

During Project implementation, MOE shall develop a Project Performance Management System including baseline performance monitoring, and systematic Project performance monitoring, including benefits monitoring and evaluation acceptable to ADB. MOE shall carry out surveys (a) at the start of Project implementation to establish baseline data, (b) at Project mid-term and (c) at six months after Project completion, to evaluate the Project benefits. Data to be compiled and analyzed for the purpose of performance monitoring and evaluation shall be in a format acceptable to ADB. Key indicators will be proposed by the Borrower and acceptable to ADB.

Complied with. A project performance management system was established in 2006.

Schedule 6 Para 46

By 31 December of each year of Project implementation, MOE shall provide ADB with an annual operation plan for the following fiscal year. Each annual operation plan shall include (a) data on the proposed budgetary allocations to secondary education, including certification that the Borrower has allocated adequate resources; (b) status of agreed policy reforms and covenants; (c) fully- costed

Complied with. Annual Plans and Quarterly Progress Reports were provided as stipulated.

50 Appendix 5


proposed Project activities for each component with performance targets; and (d) a list of SEMP II Schools from the Resource Allocation List to be targeted during the year for (i) improving to the Baseline Conditions, (ii) upgrading or improving to a Type 1AB School, or (iii) developing to a modernized Type 1C school.

Schedule 6 Para 47

The Borrower and ADB shall carry out semiannual reviews of the Project during Project implementation. The semiannual reviews shall include an examination of budgetary allocations for the Project, operation and maintenance costs, staffing and other incremental recurrent costs, implementation arrangements and achievements under the Project. The review shall include assessing progress for each Project component, identifying difficulties and constraints, and determining ways to overcome them.

Complied with. A progress review of each component was made at the PPM meetings held once every two months.

Schedule 6 Para 48

The Borrower and ADB shall jointly carry out a midterm review of the Project during the third year of Project implementation or at any other time as may be agreed upon by the Borrower and ADB. The results of the midterm review shall be discussed by the Borrower and ADB and if required, appropriate corrective measures shall be formulated to ensure successful Project implementation and achievement of the Project objectives.

Complied with. The midterm review was conducted during 9 October–20 October 2008.

ADB = Asian Development Bank, A/L = advance level examination, CLC = Computer Learning Centre, GCE = General Certificate of Education, GOSL = Government of Sri Lanka, ICT = Information and Communication Technology, MOE = Ministry of Education, MOF = Ministry of Finance, MTR = Mid-Term Review, NDICT = National Diploma in Information Communication Technology, NETS = National Evaluation Testing Service, NIE = National Institute of Education, O/L = ordinary level examination, PC = personal computer, PMO = Project Management Office, PPM = Provincial Project Management, PPMO = Provincial Project Management Office, PSC = Project Steering Committee, PSI = Program on School Improvement, SBA = School-Based Assessment, SDG = School Development Grant, SEDP = Secondary Education Development Project, SLRM = Sri Lanka Resident Mission, SOE = statement of expenditures, TLR = Teaching Learning Resource. Source: Asian Development Bank.

App

end

ix 6

51

SUMMARY OF CONSULTING SERVICES

International

Field of Specialty

At Appraisal (person months) Actual

Ac

tual a

s %

of

Targ

et

at

Ap

pra

isa

l

1. Improving Quality of, and Equity of Access to,

Secondary Education

2. Strengthening the Capacity of Provincial and Zonal Offices

3. Supporting Implementation of Government Policies and Reforms

To

tal P

ers

on

Mo

nth

s

Pe

rso

n M

on

ths

Name of Consultant

Da

te o

f R

ep

ort

1.a 1.b 1.c 2.a 2.b 3.a 3.b 3.c 3.d

Up

gra

din

g o

f

Fa

cilit

ies a

nd

Pro

vis

ion

of

Eq

uip

men

t

Ne

w C

urr

icu

lum

Op

tio

ns, L

earn

ing

M

ate

rials

, a

nd

Te

ac

hin

g

Me

tho

do

log

ies

Sp

ec

ial S

ch

oo

l an

d

Stu

den

t S

up

po

rt

Pro

gra

ms

Str

en

gth

en

ing

of

Zo

na

l O

ffic

es

Str

en

gth

en

ing

of

Pro

vin

cia

l O

ffic

es

Str

en

gth

en

ing

of

Pro

vin

cia

l O

ffic

es

De

ve

lop

ing

Sch

oo

l

Pa

rtn

ers

hip

s a

nd

Su

sta

inab

ilit

y

Str

ea

mlin

ing

Na

tio

na

l

Ex

am

ina

tio

n S

ys

tem

s

Cap

acit

y B

uild

ing

of

Cen

tral M

inis

try

School Planning and Administration

3.0 1.5 2.5 7.0 9.0 T. McCaul Dec 09 126.1

Career Guidance and Counseling 3.0 3.0 8.0 Jan 10 266.7

School Sustainability and Financing 1.5 3.5 5.0 6.0 C.A. Posdas Dec 09 120.0

Education System Management

20.0 32.0 12.0 64.0 62.0

D. Wyburn

Dec 09 96.9

K. Cox

K.D. Neumann

W.M. Anowarul Aziz

M.A. Mannan

E.C. Monserrate

H.A. Abrill

R.L. Malunho

K. Mahmood

Teaching–Learning Methodologies 2.5 1.5 4.0 8.0 R. Gonzales Sep 09 200.0

Teaching & Learning Resource Dev. 2.5 1.5 4.0 8.0 R. Zepp Sep 09 200.0

Educational Courseware 3.0 3.0 8.0 S. Lister Aug 09 266.7

Science Instruction 2.0 1.0 3.0 4.0 T. MacCaul Sep 09 133.3

Technology/Technical Instruction 2.0 1.0 3.0 3.0 P. Schletiner Sep 09 100.0

Library Development 2.5 1.5 4.0 6.0 L. Fromm Sep 09 150.0

Student/Instructional Evaluation 2.0 1.0 1.0 4.0 6.0 R. Cammaert Sep 09 150.0

Computer-Assisted Learning 2.0 2.0 4.0 10.0 G. Holmes & G. Coldevin

Apr 09 Jan 10

250.0

Social Development 3.0 Sep 09

Content Development

12.0 L. Gunawardena & D. Sanchez

Jan 10

Subtotal: International 3.0 18.5 4.5 29.5 32.0 4.0 3.5 1.0 12.0 108.0 153.0 141.5

52

App

end

ix 6

Domestic

Field of Specialty

At Appraisal (person months) Actual

Ac

tual a

s %

of

Targ

et

at

Ap

pra

isa

l

1. Improving Quality of, and Equity of Access to,

Secondary Education

2. Strengthening the Capacity of Provincial and Zonal Offices

3. Supporting Implementation of Government Policies and Reforms

To

tal p

ers

on

mo

nth

s

Pe

rso

n m

on

ths

Name of Consultant

Da

te o

f R

ep

ort

1.a 1.b 1.c 2.a 2.b 3.a 3.b 3.c 3.d

Up

gra

din

g o

f F

acilit

ies a

nd

Pro

vis

ion

of

Eq

uip

men

t

Ne

w C

urr

icu

lum

Op

tio

ns, L

earn

ing

M

ate

rials

, a

nd

Te

ac

hin

g

Me

tho

do

log

ies

Sp

ec

ial S

ch

oo

l an

d

Stu

den

t S

up

po

rt

Pro

gra

ms

Str

en

gth

en

ing

of

Zo

na

l O

ffic

es

Str

en

gth

en

ing

of

Pro

vin

cia

l O

ffic

es

Str

en

gth

en

ing

of

Pro

vin

cia

l O

ffic

es

De

ve

lop

ing

Sch

oo

l P

art

ners

hip

s a

nd

Su

sta

inab

ilit

y

Str

ea

mlin

ing

N

ati

on

al

Ex

am

ina

tio

n

Sy

ste

ms

Cap

acit

y B

uild

ing

of

Cen

tral M

inis

try

School Planning and Administration 3.0 2.5 2.5 8.0 4.0 W.G. Kularatne Dec 09 50.0

Career Guidance and Counseling 6.0 6.0 5.0 D.G.S. Wickramarachchi Jan 10 87.5

School Sustainability and Financing 2.0 4.0 6.0 2.0 D.G. Jayasooriya Dec 09 33.3

Education System Management 16.0 64.0 5.0 85.0 28.0

S.M. Galagoda

Dec 09 32.9

R.C. Perera

S. Alagaratnam

W.D. Fernando

T.R. Kamalanandan

S. Kamburapola

S. Jathunarachchi

W.G.A. De Silva

K.A.D.C. Nanayakkara

Teaching–Learning Methodologies 4.0 2.0 6.0 6.0 A.K. Sumanasekera Sep 09 100.0

Teaching & Learning Resource Dev.

4.0 2.0 6.0 6.0 E.S. Liayanage Sep 09 100.0

Educational Courseware 5.0 5.0 8.0 E.C. Kulasekersa Jan 10 160.0

Science Instruction 5.5 1.5 7.0 3.0 D. Weerasekera Sep 09 42.9

Technology/Technical Instruction 5.0 2.0 7.0 6.0 W. Hewawitharana Sep 09 85.7

Library Development 5.0 2.0 7.0 4.0 N.Y. Yapa & R. de Silva Aug 09 57.1

Student/Instructional Evaluation 4.0 2.0 1.0 7.0 4.0 S. Perera Jul 09 57.1

Computer-Assisted Learning 3.0 4.0 7.0 10.0 C. de Silva Jan 10 142.9

Social Development 5.0 5.0 3.0 W.G. Kularatne Sep 09 60.0

Content Development 10.0 S. P. Kumarawadu Jan 10

Subtotal: Domestic 3.0 35.5 13.0 32.0 64.0 4.5 4.0 1.0 5.0 162.0 99.0 61.3

TOTAL (International & Domestic)

6.0 54.0 17.5 61.5 96.0 8.5 7.5 2.0 17.0 270.0 252.0 93.4

Appendix 7 53

GENDER DISAGGREGATED ACHIEVEMENTS

Project

Component

Proposed Actions at Appraisal Actual Actions Taken/Status

Quality and equity of secondary school education improved

The selection of schools for

improvement and upgrading to 1AB or

better quality 1C schools would give priority

to schools in semi-urban, rural, and conflict-

affected areas

In the Secondary Education

Modernization Project (SEMP) II all

selected schools were 1AB and IC

secondary schools, almost all from

semi-urban and rural areas. The Project

Administration Memorandum (PAM)

stipulated the schools that should be

improved and upgraded according to

criteria.

The student stipend program was to

include 50% female students

The student stipend program was

implemented based on a circular issued

by the Ministry of Education (MOE), and

was mainly allocated based on factors

such as family income, academic

achievements, and other family details.

More than 50% of stipend recipients are

female.

The improvement of basic facilities

in schools would include building separate

toilets for girls and female teachers

Separate toilet facilities for males and

females have been provided in schools.

Capacity of provincial and zonal offices strengthened

The selection of teachers for training

would include 50% female teachers

About 80% of teachers in the school

system are female; a similar proportion

of teachers trained are female.

The managerial training program for

existing principals would include 50%

female principals, including those

from conflict-affected areas, and increase

the number of female teachers

for managerial cadres from 31.8% to 40%

by the end of the project

Managerial training programs were

conducted for principals in all provinces.

Special training programs were

implemented in the Northern Province

for all principals and deputy principals of

schools.

The teacher training program on

management and planning would include

at least 50% female teachers

More than 60% of the teachers trained

on management were female.

The human development program for

the provincial education office, zonal

offices, training-of-trainers program, and

MOE was to include at least 30% female

officials

More than 30% of the overall number

trained were female officials.

The project management unit would include

at least 40% female staff; female staff

would be included in managerial positions

in the unit; female managers and experts

would make up 40% of the provincial

project management units; the project

The project management unit had 3

female managers, including 2 provincial

project managers.

54 Appendix 7

Project

Component

Proposed Actions at Appraisal Actual Actions Taken/Status

management information and

monitoring system would include a gender

disaggregated database for girl’s enrollment

in 1AB and 1C schools;

Government

education

policies and

reforms

implemented

The project would include a social

development and gender specialist

(domestic consultant) for 5 person-months

to develop a gender action plan with a

special focus on conflict-affected areas; the

project management office staff would have

expertise in social development and

gender. The domestic consultant was to

coordinate with the project management

office and help develop a gender action

plan. The gender action plan would be

based on the targets noted earlier and

would elaborate strategies, plans,

monitoring indicators, and budget.

A consultant was recruited and a gender

action plan developed.

Appendix 8 55

ECONOMIC ANALYSIS 1. While Sri Lanka has achieved high enrolments in primary (95%) and lower-secondary education (85%) and a high literacy rate (92%), the government has been concerned about the quality of education, particularly in science and technology. The National ICT Policy in Education, prepared in 20011 , for instance, emphasized the need for the effective use of information and communication technology (ICT) as a teaching–learning tool at all levels in general education in order to meet global challenges. Furthermore, the Proposals for a National Policy Framework on General Education in Sri Lanka2 prepared by the National Education Commission in December 2003, pointed out that a dearth of science-, mathematics- and ICT-qualified personnel in the job market is keeping the economy from expanding into new and challenging areas. To meet the demands of the job market, the proposals recommended that laboratory facilities, including basic ICT facilities be provided to secondary schools within 3 years, and that ICT education be introduced to schools and teacher education institutions. 2. The Secondary Education Modernization Project (SEMP) II was designed to assist the government in implementing this policy by providing schools with computers, ICT facilities, A- and O-level science laboratories, multimedia and library rooms, and activity rooms, along with other teaching–learning resources. A concerted effort to strengthen teaching capacities particularly for science and math, both at O- and A-level, was also included. 3. The economic benefits of the investment in secondary education can be measured—as was done at appraisal to determine the internal rate of return (IRR)—by increases in wages due to the higher educational achievement of graduates.

4. Wage statistics are available from the Household Income and Expenditure Survey 2002 3 (Table A8.1). Annual wage differentials between students having studied in grade 6–9 and those that were O-level achievers were SLRs46,608 ($466) and between O-level and A-level achievers were SLRs43,740 ($437). No appropriate data is available to suggest that A-level science achievers earn higher wages than arts or commerce achievers. However, as demand is strong in the job market for those who are competent in ICT, science, and mathematics, employability is expected to be higher for A-level science students than for commerce and arts graduates. Based on the data from Table A8.1, students gain an estimated $470 per year by passing O-levels and $440 by passing A-levels.

Table A8.1: Income (Annual Average)a by Level of Education and Sector (SLRs)

Total Differences Sector

Level of Education Urban Rural Estate

Less than Grade 6 48,876 68,352 48,504 38,700

Grade 6–9 72,108 23,232 88,824 71,028 44,844

GCE O-level 118,716 46,608 154,260 110,988 83,784

GCE A-level 162,456 43,740 238,632 139,572 **

Higher 249,984 87,528 396,348 175,272 **

Total 84,948 139,500 78,648 43,224

1 Ministry of Education, 2001, National Policy for ICT in School Education (NAPITSE), Sri Lanka

2 National Education Commission, 2003, Proposals for a National Policy Framework on General Education in Sri

Lanka, Sri Lanka 3 Department of Census and Statistics, 2002, Household Income and Expenditure Survey 2002, Sri Lanka

http://www.educationforum.lk/UserFiles/File/NEC2003(2).pdf

http://www.educationforum.lk/UserFiles/File/NEC2003(2).pdf

56 Appendix 8

a Original figures were monthly averages. The annual averages were calculated by multiplying the

monthly figures by 12.

** Sample size is not sufficient to give reliable estimates (original note).

Source: Government of Sri Lanka, Department of Census and Statistics. 2002. Household Income and

Expenditure Survey – Preliminary Report. Colombo.

5. Table A8.2 shows the actual results for 2005–2010, where data are available. It is assumed that the project started to have an impact in the second year of implementation. As the project covered only about 1,000 out of 2,500 1AB and 1C schools and no Type 2 schools (about 4,200), it is assumed that 6% of the improvement in the O-level rates can be attributed to the project. As for the A-level pass rates, for which only type 1AB and 1C schools are relevant, 6% of the improvement is assumed to be due to the project. Under these assumptions, the project has resulted in an increase in the number of A-level achievers and university graduates as shown in the shaded areas in Table A8.2.

Table A8.2: O-level and A-level Pass Rates

2005

(Yr. 1) 2006

(Yr. 2) 2007

(Yr. 3) 2008

(Yr. 4) 2009

(Yr. 5) 2010

(Yr. 6) Number of Students Who Sat O-levels*

307,771 296,393 312,299 315,194 310,441 310,642

O-level Pass Rate (%)* 47.72 48.72 49.14 56.81 48.51 58.79

Additional Number Qualified for A-level

0 2,964 4,435 28,651 2,452 34,388

of which from project supported schools

0 889 1,330 8,595 736 10,316

No. of Students Who Sat A-levels (est.)*

129,475 135,200 136,673 143,654 141,625 158,290

A-level Pass Rates (%)* 59.20 60.12 61.40 62.89 61.21 61.67

Additional Number Qualified for Universities

0 1,244 3,007 5,301 2,847 3,910

of which from project supported schools

0 498 1,203 2,120 1,139 1,564

A-level = advance level, O level = ordinary level. Source: Sri Lanka Ministry of Education.

6. Other assumptions used in order to calculate the IRR include a one-year time lag between the completion of O- or A-levels and employment, 10% unemployment among O- and A-level achievers, constant real wage differentiations throughout their employment period of 40 years, and 7 years of continuous impact of the project’s investment after the implementation period. The assumptions are shown in Table A8.3. 7. The following incremental recurrent costs are also assumed to be borne annually by the government: 200 teacher incentives ($240 per teacher), 100 graduates with a National Diploma in Information Communication Technology (NDICT) ($800 per teacher), 450 zonal facilitator allowances ($480 per facilitator), and operation and maintenance for school facilities for 1,000 schools ($300 per school). Operation costs for 350 computer learning centers (CLCs) ($720 per CLC) are assumed to be borne by the beneficiaries.

Appendix 8 57

Table A8.3: Assumptions for Estimation of the Internal Rate of Return

Exchange rate $1 = SLRs100

Wage level of O-level achievers (2002)a SLRs118,716 per year

Wage level of A-level achievers (2002)a SLRs162,456 per year

Estimated minimum wage differentials:a

Between lower than O-level and O-level achievers SLRs46,608 per year

Between O-level and A-level achievers SLRs43,740 per year

Average lag after completion of O- or A-level and employment 1 year

Career length of O-level achievers 40 years

Career length of A-level achievers 40 years

Impact of the project after implementation 7 years

Maintenance of pass rates achieved in 2010 7 years a

Source: Government of Sri Lanka, Department of Census and Statistics. 2002. Household Income and Expenditure Survey. Colombo.

Table A8.4: Incremental Recurrent Costs after the Project Implementation (7 years)

Government

200 teacher incentives ($240/teacher per year) $48,000 per year

100 graduates with NDICT ($800/teacher per year) $80,000 per year

450 zonal facilitator allowances ($480/facilitator per year) $216,000 per year

Operation and maintenance for school facilities for 1,000 schools ($300/school per year)

$300,000 per year

12,000 stipends for O- and A-level students ($50/student per year) $600,000 per year

Beneficiaries

Operation costs for 350 CLCs ($720/CLC per year) $252,000 per year

Inflation factor 10% annual

CLC = computer learning center, NDICT = National Diploma in Information Communication Technology. Sources: Asian Development Bank, Ministry of Education

8. Under the above assumptions, and the actual improvements in pass rates for O- and A-levels, the project is estimated to yield a 19% economic internal rate of return (EIRR). The EIRR calculation is highly sensitive to the wage rate differentials and the assumption on the incremental percentage of students passing O- and A-level examinations as a result of the project intervention. Even with the conservative assumptions made above, the EIRR of 19% indicates that the project was efficient.

58 Appendix 9

CHRONOLOGY OF MAJOR EVENTS

Date Description

2002 Approval of project preparatory technical assistance

6–22 May 2004 Fact-finding mission

12–22 June 2004 Appraisal mission fielded

16–17 September 2004 Loan negotiations

25 October 2004 Loan approval

7 December 2004 Loan signing

2005 Inter-Ministerial Steering Committee established and annual meetings held, chaired by the project director

2005 Ministry of Education (MOE) Circular No. 2005/29 issued providing instructions for effective management, operation, and maintenance of computer learning centers (CLCs). The School Information and Communications Technology (ICT) Policy Framework was developed by the National Education Council (NEC) in 2007

12–19 May 2005 Inception mission fielded

2 June 2005 Establishment of School Improvement Program Unit to implement the Program on School Improvement (PSI)

30 September 2005 The MOE issued Circular 2005/29 introducing ICT at O-level from January 2006 and general information technology at A-level from May 2006

28 August 2006 Minor change in scope approved to recruit an individual consultant to design and develop ICT policy in education and to align with current and future global ICT trends

December 2006 School-Based Assessment (SBA) facilitation program to validate and enhance reliability and credibility of SBA grades awarded by teachers was launched

2007 School Evaluation Program Policy Framework covering SBA developed by NEC

12 January 2007 School Development Grants (SDGs) approval. SDGs began to be issued in March 2007

13 August 2007 Minor change in scope approved to finance internet costs for CLCs established under SEMP I for 2 years and to reallocate $1.0 million from the unallocated category to the incremental recurrent cost category (66% financing) for this purpose

6 March 2008 Minor change in scope approved to recruit a local consulting firm to undertake an institutional audit of the National Institute of Education (one of the implementing agencies for the Education Knowledge Society Project)

1 May 2008 Start-up Grant for Operational Cost of New Computer Learning Centers scheme initiated to provide annual assistance of SLRs50,000 (SLRs5,000 per month for 10 months) to needy schools for 2 years to support payment of electricity bills. Accordingly, in each year, a total of SLRs18.05 million was paid to 361 schools provided with CLCs. This arrangement was also geared to encourage the schools to commence income generation for cost recovery

Appendix 9 59

Date Description

9–20 October 2008 During midterm review the covenant on evaluation of impact of pilot programs—school management councils, teaching incentives, and the NDICT—was declared irrelevant as similar pilot activities had already been undertaken under the Program for School Improvement (PSI)

9–20 October 2008 During midterm review the pilot project to engage ICT graduates to provide technical assistance to schools was dropped

28 November 2008 Minor change in scope approved to provide support (civil works, equipment, etc.) for the National College of Education in Ratnapura district as a pre-service teacher training facility for ICT education. Change in scope also to provide computers and accessories to about 400 Type 1AB schools that received assistance from another project, and to reallocate loan funds

8 April 2009 Minor change in implementation approved to allow use of imprest fund for releasing school development grants

April–May 2009 Project procurement-related audit conducted by Asian Development Bank, Sri Lank Resident Mission, Department of Auditor General, and Consultants

26 May 2009 Imprest funds utilized to facilitate release of school development grants to the provinces. Accordingly, para. 28 of Schedule 6 to the Loan Agreement was replaced.

2 October 2009 Extension of loan closing date to 31 December 2010 and the physical completion date to 31 October 2010 to provide sufficient time for the executing agency to complete ongoing project activities in Northern Province and Eastern Province

10 November 2009 ADB approved the utilization of about $1.0 million in savings from civil works, instruction materials, stipends and scholarships, and school development grants for secondary schools in the Northern Province, to cover: (i) teaching and learning materials ($140,000), (ii) school development grants ($500,000), and (iii) equipment ($360,000).

2010 Teacher transfer policy approved by the cabinet of ministers to ensure equitable distribution of teachers. The policy introduced the following: (i) school-based recruitment, (ii) incentive scheme for difficult area service, (iii) education diploma holders deployed based on vacancies, and (iv) 10,000 teachers engaged to fill the anticipated vacancies in 2011.

15 February 2010 Project director promoted to ―Additional Secretary‖ by the MOE for his outstanding performance in managing SEMP I and SEMP II

Sources: Asian Development Bank and Sri Lanka Ministry of Education.

60 Appendix 10

PROJECTED AND ACTUAL DISBURSEMENT (US$ million)

Cumulative

Year Projected Actual Projected Actual

2004 0.000 0.000 0.000 0.000

2005 3.000 0.168 3.000 0.168

2006 5.000 0.642 8.000 0.810

2007 8.000 8.228 16.000 9.038

2008 8.000 9.212 24.000 18.250

2009 8.000 9.594 32.000 27.844

2010 2.954 6.501 34.954 34.344

2011 0.000 1.308 0.000 35.652

Total 34.954 35.652

Source: Asian Development Bank.

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PROJECT ANNUAL EXPENDITURES

Cat. No.

Component 2005 2006 2007 2008 2009 2010 May 2005–Dec 2010

ADB Governm

ent Total ADB Governm

ent Total ADB Governme

nt Total ADB Governme

nt Total ADB Governme

nt Total ADB Government Total

Total

Grand Total ADB

Government

01 Civil Works 504.78 883.45 1,388.23 885.26 1,593.52 2,478.78 1,188.46 2,169.05 3,357.51 666.67 1,199.36 1,866.03 623.45 1,168.98 1792.43 3,868.62 7,014.36 10,882.98

02 Equipment 62.46 62.46 5,328.09 154.22 5,482.31 1,830.75 200.09 2,030.84 2,591.16 718.78 3,309.94 866.50 59.26 925.75 10,678.96 1,132.35 11,811.30

03 Furniture and Vehicles

165.16 316.84 482.00 42.31 42.31 397.75 18.07 415.82 304.49 35.58 340.07 169.28 20.78 190.07 1,078.99 391.27 1,470.27

04 Materials 591.83 591.83 725.07 29.83 754.90 719.62 58.00 777.62 142.68 38.37 181.05 434.35 59.26 493.61 2,613.55 185.46 2,799.01

05 Consulting Services

6.06 6.06 407.41 407.41 1,496.72 20.88 1,517.60 443.29 48.20 491.49 2,353.48 69.08 2,422.56

06 Staff Development

73.04 0.00 73.04 218.40 218.40 1,282.28 1,282.28 1,532.19 338.76 1,870.95 1,142.29 88.04 1,230.33 176.89 26.53 203.42 4,425.09 453.33 4,878.42

07 Surveys and Studies

0.00 22.71 22.71 10.79 10.79 33.50 33.50

08 Stipend/ Scholarships

771.54 771.54 227.80 227.80 1,228.30 1,228.30 975.95 975.95 1,664.53 1664.53 4,868.12 4,868.12

09 School Development Grant

546.00 546.00 545.63 545.63 525.47 525.47 520.76 520.76 2,137.86 2,137.86

10 Project Management Office

29.29 15.19 44.48 110.65 73.85 184.50 452.08 256.73 708.81 955.57 637.14 1,592.71 644.83 429.95 1,074.78 1,285.46 857.03 2142.49 3,477.88 2,269.89 5,747.77

11 Service Charges

60.80 60.80 106.40 106.40 23.70 23.70 190.90 190.90

Total 267.49 332.03 599.52 2,259.66 957.30 3,216.96 9,494.95 2,034.30 11,529.25 8,866.48 3,421.11 12,287.59 8,619.37 2,530.96 11,150.33 6,219.01 2,240.05 8,459.05 35,726.96 11,515.75 47,242.70

62

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IMPLEMENTATION SCHEDULE: PLANNED COMPARED WITH ACTUAL

No Activity 2005 2006 2007 2008 2009 2010

Q1

Q2

Q3

Q4

Q1

Q 2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

School Resource Allocation Process

1. Complete School Needs Analysis Survey

2. Prepare School Needs Analysis Reports

3. Prepare Zonal Priority Resource Allocation Lists

4. Prepare Provincial Priority Resource Allocation Lists and post in public places

5. Prepare and approve Draft Resource Allocation List

Needs Analysis of Schools

6. Conduct School Needs Survey

7. Complete Needs Analysis Reports

8. Prepare Zonal Priority Lists

9. Prepare Provincial Priority Lists

10. Approve Resource Allocation List

Provincial and Zonal Development

11. Train 25 master trainers

12. Train 450 zonal trainers/facilitators

13. 5 master trainers/25 provincial managers

14. Consulting services to PDE offices

15. 92 international fellowships for zonal staff

16. Master trainers monitor training efforts of zonal facilitators

Support MOE Policies and Reforms

17. Train schools and SDCs in SBM

18. Public awareness seminars in SBM

19. 20 NETS national seminars

20. Deliver SBA awareness seminars

21. NETS-NIE working committee

22. Technical subjects developed by NIE

23. Civics curriculum developed by NIE

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63

No Activity 2005 2006 2007 2008 2009 2010

Q1

Q2

Q3

Q4

Q1

Q 2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

School-Based Training

24. Train teachers in modern teaching

25. Train teachers in TLR production/use

26. Train teachers in SBA application

27. Train teachers/staff in CAL method

28. Train principals/SDCs in SBM

29. Train schools in preparing SDP

30. 200 international fellowships for teachers

31. Train 1,000 teacher-librarians

32. Train 1,000 teachers in counseling

School Sustainability/Partnering

33. Train 50 experts in sustainability

Develop Infrastructure/Facilities

34. Prepare school classification list

35. Develop rooms/labs to baseline

36. Develop libraries to baseline

37. Provide required furniture

38. Provide proper sanitary facilities

39. Provide electricity/phone services

40. Upgrade special facilities/offices

41. Install CLCs in 350 large schools

42. Upgrade 1C schools to 1AB

Teaching–Learning Resources

43. Procure educational software

44. Convert software to 3 languages

45. Provide CAL learning guides

46. Provide teaching–learning guides

47. Provide career guidance materials

48. Provide SBA teachers’ guides

49. Library books for grades 10–13

50. Provide other print materials

51. Computers for CLCs and libraries

52. Provide O-level science kits

64

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No Activity 2005 2006 2007 2008 2009 2010

Q1

Q2

Q3

Q4

Q1

Q 2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

53. Provide A-level science kits

54. Provide activity room equipment

Stipend Program

55. Select students eligible for program

56. Deliver stipend program for 12,000 students

57. Evaluate impact of stipend program

Special Support Programs

58. Provide 100 NDICT technicians

59. Classify each SEMP II school

60. Provide SDGs to 790 schools

61. Provide CLC grants for 350 schools

62. Monitor implementation of SDGs

63. Teaching incentive program: Uva

64. Pilot 100 start-up grants for SDCs

Project Management

65. Establish PMO and PPMOs

66. Establish & run PSC

67. Select consultants

68. Establish and implement PPMS system

69. Training for provincial project managers

70. Monitor implementation of SDPs

A- level = advance level examination, CAL = Computer Assisted Learning, CLC = Computer Learning Centre, MOE = Ministry of Education, NETS = National Evaluation Testing Service, NIE = National Institute of Education,O- level = ordinary level examination, PED = Provincial Education Department, PMO = Project Management Office, PPMO = Provincial Project Management Office, PPMS = Project Planning and Management System, PSC = Project Steering Committee, SBA = School-Based Assessment, SBM = School-Based Management, SDC = School Development Committee, SDG = School Development Grant, SDP = Skills Development Project, SEMP II = Secondary Education Modernization Project II, TLR = Teaching-Learning Resource, Q = quarter.

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65

INTERNATIONAL FELLOWSHIPS AND STUDY VISITS

Agency Year No. of

Officers Name and Designation of Officer

Course/Area of Training

Duration Person Days

Place/ Country

Expenditure (SLRs)

a

Unit Cost (SLRs)

a

ERD 2006 1 S. Vithanage, Deputy Director/ERD Masters

24 months (March 2006–March 2008)

720 Australia 1,163,181 1,163,181

MOE 2006 2 A. Ariyaratne Hewage, Secretary, MOE A. Dissanayake, Project Director, SEMP II

4 days (17–20 May)

8 Philippines 95,840 47,920

MOE 2008 1 S. Kuruppu Arachchi, Director, School Library Development Unit

ICT 3 days (20– 22 October)

3 China 223,585 223,585

MOE 2009 1 M.P. Vipulasena, Director, Science and Mathematics

Environment 14 days (20 January–2 February)

14 India 539,075 539,075

Provincial Ministries of Education

2007 10

J.M.C.J. Wijethunge, PS/WP D.M.R.B. Dissanayake, PS/CP M.W. Wijethilake, PS/SP L. Illankovan, PS/NEP B.M.A. Balasooriya, PS/NWP J.K.S.L. Rajadasa, PS/UP H.P. Kulathunge, PS/Sab. P B.M.S. Thilakarathne, PS/NCP N. Herath, Education Specialist, SEMP II

School management

2 weeks (26 March– 6 April )

120

Malaysia Thailand Viet Nam

6,314,580 631,458

Provincial Ministries of Education

2007 2

D.D.G. Dassanayake, Assistant Director of Education, Zonal Education Office, Piliyandala I. Abywickrama, Provincial Education Department/WP

Onsite environmental seminar

4 days (21–25 May)

10 Philippines 404,033 202,017

Provincial engineers

2008 9

P.S.S.P. Rodrigo, Director (Buildings), Provincial Department of Engineering Services/WP K.A.N. Premarathna, Director (Buildings) Provincial Department of Engineering Services/NWP A.D.K.A. Weeraratne, Director (Buildings) Provincial Department of Engineering Services/Sab P G.H.L. Thilakarathna, Director (Buildings), Provincial Department of Engineering Services/SP S.J.K. Alas, Engineer, Provincial

Construction management

12 days (5–16 May)

108 Thailand 4,173,183 463,687

66

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Department of Engineering Services/NCP K. Gunasinghe, Director (School Works), Provincial Department of Engineering Services/UP G. Sivapalan, Director (School Works), Provincial Department of Engineering Services/NP P. Perasiriyan, Engineer, Provincial Department of Engineering Services/EP M.I. Fernando, Director (School Works)/MOE

Provincial engineers

2008 1 K.M. Jayathilake, Central Province, Engineer

Construction management

10 days (15–26 December)

12 Thailand 287,918 287,918

PMO 2005 10

M.D.F. Marcus, PPM/EP E.P.T.K. Ekanayake, PPM/CP V. Mahendran, PPM/NEP K.D. Wijayapala, PPM/Sab. P N.H. Premawathie, PPM/NWP W.M. Samarasinghe, PPM/NCP J. Block, PPM/SP A. de Silva, PPM/UP A. Dissanayake, Project Director, SEMP II R. Karunasiri, Manager, M&E, SEMP II

Project management

2 weeks (4–16 November)

130 South Korea

6,601,626

660,162

PMO 2007 3

K.D. Ranjith, Project Accountant, SEMP II L.W. Palitha, Project Engineer, SEMP II L.S. Senanayake, Procurement Specialist, SEMP II

Project management

2 weeks (28 October–10 November)

42 Australia 1,136,971 568,485

NIE 2008 1 N.T.K. Lokuliyana, Chief Project Officer, NIE (Only A/F)

Innovative teaching methodologies

19 days (26 May–14 June)

20 Pakistan 77,000 77,000

Zonal officers

2009 27

G.M. Ananda Premalal, DDE W.L. Gamini Navaratne, ADE L. Rathnayake, ISA P.D.P. Rohana, ADE E. Rathnayake, ADE H.B.M. Lakmali Devika, ISA A.S. Kuruppu, ADE N.G. Dharmadasa, ADE L.G.P. Chandralal, ADD Y.M.C.D. Yaparatne, ADE W.M.C.D. Kasthuriarachchi, ADE M. Dhanapala, ADE P. Kovintharajah, DDE

ICT 12 days (3–14 August)

324 Thailand 9,402,584 348,244

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67

M.M.M. Jaufer, DDE M.A. Wimalasena, ISA/ICT R.M.N.S. Perera, ADE N.M.A.M. Nethhasinghe, ADE J.D.D. Senavirathna, ADE A. Kathirgamanathan, ADE (Math) N. Ampihaipahan, ISA S.T. Peris, DDE V.P.K. Sumathipala, Instructor CRC I.D. Maithripala, Instructor CRC P.G.A. Sugith Shalika, Teacher S.M.D.K.K. Jayathilaka, ISA V.D. Silva, ISA W.C. Kothalawala

Zonal officers

2009 27

V.V.M. Nandasena, ADE M.N. Rathnasiri, ADE H. Rathnayake, DDE U.S. Wanasinghe, ISA G.M. Hemapala Gunawardane, ZDE A.H.C. Siriwardane, ADE W.V.G. Vithanage, ADE M.D.V. Nandani Gunathilaka, ISA D. Anomadassi Thro, ADE M.T. Swinetha De Silva, ADE U.K.G. Jayarathna, ISA N.S. Balamohan, ISA W. Ranathunge, ADE K. Baskaran, DDE M.I. Sehu Ali, DDE H.A.R. Miurin Peiri, ADE A.H.M.C. Kumarihamy, ISA K.A.P. Senarathna, ADE T. Kathiragamanathan, ADE (Sc) S. Kirupaharan, ISA (Math) T. Thayananthane, ADE (Sc) C. Pinidiya, ISA N.Y. Kannangaran, ISA S.P.W. Wakishta, ISA S. Withana, ADE P.V.D.S.D. Siriwardane, ADE E.P. De Silva, ADE

SBA 12 days (20-31 July)

324 Thailand 9,370,517 347,056

Teachers 2009 27

A.M.B. Rajanayake, A.C.M. Fauzer, Teacher R.M. Saman Rathnayake, Teacher L.T.R. Thusitha Kumara, Teacher

ICT 12 days (17–28 August)

324 Thailand 9,216,048 341,335

68

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ERD = Department of External Resources, ICT = Information and Communications Technology, MOE = Ministry of Education, NIE = National Institute of Education, PMO = Project Management Office, PPM = provincial project manager, PS = provincial secretary, SBA = School-Based Assessment, SLR = Sri Lankan Rupee. a In some expenditure figures, no cost items (air fares, institute and course fees, visa fees, incidentals and per diem, and warm clothing allowance) had been

reported. Thus,comparable expenditure figures and unit costs vary considerably.

K.M.D.H. Janaka Senevirathne, Teacher L.D. Sarathchandra, Teacher H.M. Wijewardana, ISA M.D. Sunil Rathna, ISA D.K.D. Geethani Chandralatha, ISA M.K.M. Munasinghe, Teacher K.P.P.I. Kumarasiri, Teacher W.G.R.M.S.B. Rajapakse, Teacher S. Pushparajah, Teacher M.S.T. Chandrasiri ,Teacher M.I. Musaoufil, Teacher J.D.T.U.K. Jayasinghe, Teacher W.A.D.A.P. Werapperuma, Teacher S.B.S. Mahira, Teacher S. Sureshkumar, Teacher V. Senthan, Teacher S. Senthuran, Teacher C. Abegunawardena, Teacher K.K.M. Kodithuwakku, Teacher K.D. Nilani, Teacher H.M.U.S.N. Hettiarachchi, Teacher M.A.P.S. Rupasingha, Teacher A.D.C.I. Jayanandana, Teacher

e-Village 2008 5

K. Dampiya Wijethilake Mahalakotuwa, Sri Sumana M.V. Ilukkumbura, Matale K.M.W. Bandara, R/Ba/Damahana M.V. Damahana, Balangoda L.W.A.M.K. Lansakara, WP/M/Popi/Nikawewa Dewanampiyatissa M.M.V, Moragollagama E.M.S.K. Ekanayake, Mo/Pitakumbura M.V. Bibila G.M. Amal Thushara, H/Nihiluwa M.V. Nihiluwa, Beliatta

ICT 1 week (23–30 March)

40 India 576,737 115,347

Total 127 2,199 49,582,880 57,28,840

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69

SISUSAVIYA/SISUDIRIYA STUDENT SCHOLARSHIPS

2006 2007 2008 2009 Total

Grade 10

Grade 12

Grade 10

Grade 12

Grade 10

Grade 12

Grade 10

Grade 12

Students Per-

centage $ Equivalent

Expenditure (SLRs)

399 858 880 880 880 880 880 880 6,537 11.1 295,262.79 32,685,000

741 1,365 1,200 1,200 1,200 1,200 1,200 1,200 9,306 15.8 420,332.80 46,530,000

632 975 880 880 880 880 880 880 6,887 11.7 311,071.56 34,435,000

788 1,208 960 960 960 960 960 960 7,756 13.2 350,322.50 38,780,000

788 1,365 1,040 1,040 1,040 1,040 1,040 1,040 8,393 14.3 379,094.47 41,965,000

281 624 640 640 640 640 640 640 4,745 8.1 214,321.85 23,725,000

715 936 640 640 640 640 640 640 5,491 9.3 248,017.13 27,455,000

675 936 640 640 640 640 640 640 5,451 9.3 246,210.41 27,255,000

366 546 560 560 560 560 560 560 4,272 7.3 192,957.42 21,360,000

5,385 8,813 7,440 7,440 7,440 7,440 7,440 7,440 58,838 100.0 2,657,590.92 294,190,000

14,198 14,880 14,880 14,880 Note: The scholarship was named ―Sisusaviya/Sisudiriya‖ by the Ministry of Education: the first word means ―strengthening students‖ and the second means ―encouraging students‖. Source: Asian Development Bank, Sri Lanka Ministry of Education.

Appendix 15 70

TYPES OF SCHOOLS

Type 1AB Grades 1–13 or grades 6–13 Schools having classes including A-level arts, commerce, and science streams

Type 1C Grades 1–13 or grades 6–13 Schools having classes including A-level arts and commerce streams (but no science stream)

Type 2 Grades 1–11 Schools having classes up to O-level

Type 3 Grades 1–8 or grades 1–5 Primary schools