Document ofThe World Bank

FOR OFFICIAL USE ONLY

Report No: 24048

IMPLEMENTATION COMPLETION REPORT(IDA-26940)

ONA

CREDIT

IN THE AMOUNT OF SDR 20.4 MILLIONUS$ 30.0 MILLION EQUIVALENT

TO THE

REPUBLIC OF HONDURAS

FOR A

BASIC EDUCATION

April 14, 2002

Human Development Sector Management UnitCentral America Country Management UnitLatin America and the Caribbean Region

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

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS

(Exchange Rate Effective April 14, 2002)

Currency Unit = Lempira (L)16 21 Lempiras = USS 1.00

USS 1.00 = XDR 1.25

FISCAL YEARJanuary I -December 31

ABBREVIATIONS AND ACRONYMSADEPRIR Rural Primary Education Management Project

(Proyecto Administraci6n De L.a Educacidn Primaria Rural)AMHON Honduran Association of Municipalities

(Asociact6n de Municipios de Honduras)BIE Bilingual and Intercultural Education

(Educaci6n Bilinguey Intercultural)CADs Teacher Training Centers

(Centros de Aprendizaje Docente)CAS Country Assistance StrategyCBH Central Bank of Honduras

(Banco Central de Honduras)CEPENF Centers for Non-Formal Preschool Education

(Centros de Educacidn Pre-escolar No Formal)CCIE Community Centers for Initial Education

(Centros Comunitarios para la Iniciacion Escolar)DIGECE Of fice for Evaluation of Academic Quality

(Direcci6n General de Evaluacion de la Calidad Academica)FHIS Honduran Social Investment Fund

(Fondo Hondureiio de Inversion Sociaol)FHIS-I Social Investment Fund ProjectFHIS-11 Second Social Investment Fund ProjectGDP Gross Domestic ProductGOH Govenmment of HondurasGTZ German Agency for Technical Cooperation

(Deutsche Gesellschafffur Technische Zusammenarbeit)iCB International Competitive BiddingINFOP Professional Training Institute

(Instituto Nacional de Formaci6n Profesional)NICE National Institute for Education Research and Training

(Instituto Nacional de Investigacid n y Capacitacion Educativa)IDA International Development AssociationKfW German Credit Institute for Reconstruction

(Kreditanstaltfur Wiederaufbau)MIS Management Information SystemMOE Ministry of Education

(Secretaria de Educacion Ptiblica)MOF Ministry of Finance

(Secretaria de Hacienda y Credito Publico)MOH Ministry of Health

(Secretaria de Salud Publica)NGO Non-Govemmental OrganizationPCU Project Coordination UnitPRAF Family Assistance Program

(Programa de Asignacidn Familiar)PRONEEAAH National Program of Education for Indigenous and Afro-Honduran Ethnic Groups

(Programa Nacional de Educaci6n para las Etnias Autdctonas y Afro-Antillanasde Honduras)

RUTA SOCIAL Regional Unit for Technical Assistance in the Social SectorsSECPLAN State Secretariat of Planning, Coordination and Budget

(Secretaria de Planificaci6n, Coordinacidn y Presupuesto)SOE Statement of ExpenditureUNDP United Nations Development Program

(Programa de las Naciones Unidaa para el Desarrollo)UNESCO United Nations Education, Science and Culture OrganizationUNHA Honduran National Autonomous University

(Universidad Nacional Aut6noma de Honduras)UNICEF United Nations International Children's Emergency Fund

(Fondo de las Naciones Unidas para la Infancia)UPNFM National Pedagogic University

(Universidad Pedagdgica Nacional Francisco Morazfin)UMCE Unit for Measurement of Education Quality

(Unidad para la Medicidn de la Calidad Educativa)USAID United States Agency for Intemational DevelopmentWBI World Bank Institute

Vice President: David de FerrantiCountry Manager/Director. Donna Dowsett-Coirolo

Sector Manager/Director: Ana Maria ArriagadaTask Tearn Leader/Task Manager: Joel Reyes

HONDURASHN- BASIC EDUCATION

CONTENTS

Page No.1. Project Data 12. Principal Performance Ratings I3. Assessment of Development Objective and Design, and of Quality at Entry 24. Achievement of Objective and Outputs 35. Major Factors Affecting Implementation and Outcome 146. Sustainability 167. Bank and Borrower Performance 178. Lessons Learned 199. Partner Comments 2010. Additional Information 28Annex 1. Key Perfornance Indicators/Log Frame Matrix 29Annex 2. Project Costs and Financing 33Annex 3. Economic Costs and Benefits 36Annex 4. Bank Inputs 39Annex 5. Ratings for Achievement of Objectives/Outputs of Components 41Annex 6. Ratings of Bank and Borrower Performance 42Annex 7. List of Supporting Documents 43

Project ID: P007399 Project Name: HN- BASIC EDUCATIONTeam Leader: Joel E. Reyes TL Unit: LCSHE

ICR Type: Core ICR Report Date: June 21, 2002

1. Project Data

Name: HN- BASIC EDUCATION L/C/TFNumber: IDA-26940Country/Department: HONDURAS Region: Latin America and

Caribbean RegionSector/subsector: EP - Primary Education

KEY DATESOriginal Revised/Actual

PCD: 10/15/1993 Effective: 09/19/1995 12/27/1995Appraisal: 08/08/1994 MTR: 02/25/2000 07/01/1997Approval: 03/28/1995 Closing: 12/31/2000 12/31/2001

Borrower/lImplementing Agency: GOVERNMENT OF HONDURAS/MINISTRY OF EDUCATIONOther Partners: GERMAN CREDIT INSTITUTE FOR RECONSTRUCTION

(KREDITANSTALT FUR WIEDERAUFBAU- KFW) AND GERMAN AGENCYFOR TECHNICAL COOPERATION (DEUTSCHE GESELLSCHAFT FURTECHNISCHE ZUSAMMENARBEIT - GTZ)

STAFF Current At AppraisalVice President: David de Ferranti Shahid Javed BurkiCountry Manager: D-M Dowsett-Coirolo Edilberto L. SeguraSector Manager: Ana Maria Arriagada Kye Woo LeeTeam Leader at ICR: Joel Reyes Anna Sant'AnnaICR Primary Author: Joel E. Reyes; Anna Maria

Sant'Anna; Jill Larnnert

2. Principal Performance Ratings

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=HighlyUnlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible)

Outcome: S

Sustainability: L

Institutional Development Impact: SU

Bank Performance: S

Borrower Performance: S

QAG (if available) ICRQuality at Entry: S

Project at Risk at Any Time: No

3. Assessment of Development Objective and Design, and of Quality at Entry

3.1 Original Objective:The project's objectives were:

* To improve the quality of learning and student performance, inspire better teaching, increaseschool attendance, and create more effective learning conditions, thereby reducing student dropoutand repetition rates and raising students' academic achievements.

* To strengthen the institutional capacity of the Ministry of Education (Secretaria de Educaci6nPublica - MOE) to deliver basic education services at higher levels of efficiency and fiscalaccountability, leading to a reduction in administration costs.

3.2 Revised Objective:No revisions were made to the project objectives.

3.3 Original Components:Component A - Improving the Quality of Basic Education through five subcomponents:

1. Training of Teachers, Principals and Supervisors at preschool and primary education levels (IDAfinanced);

2. Textbooks and Didactic Materials, including classroom libraries and improved distributionfacilities (co-financed by IDA and KfW);

3. Bilingual Education for the Miskito and Garifuna communities (IDA financed);4. National System of Extemal Evaluation of student academic achievement (IDA financed);5. Infrastructure Improvements, including additional teachers, at preschool and primary education

levels (co-financed by IDA and KfW).

Component B - Institutional Strengthening through three subcomponents:

1. Technical Assistance for the Reorganization and Decentralization of the MOE (IDA financed);2. Teacher's Performance Incentives Pilot Program (IDA financed);3. Project Administration, monitoring and evaluation (IDA financed).

3.4 Revised Components:Several changes were made to the original project design due to (a) new national and sector priorities andpolicies, and (b) the emergency created by Hurricane Mitch in November 1998. The specific changes aredescribed below.

Component A. Modifications were made to three subcomponents, as follows: (a) the teacher trainingsubcomponent was modified in 1998 to replace the locally-based Teacher Training Centers (Centros deActualizaci6n Docente - CADs) by a university-based teacher development program called Programa deFormacion Continua, PFC (Continuous In-Service Education Program) designed and implemented by theNational Pedagogic University (Universidad Pedag6gica Nacional Francisco Morazan - UPNFM); (b) thebilingual education subcomponent was expanded from 2 to 8 ethnic groups; and (c) the infrastructureimprovement subcomponent was modified to included construction of new primary schools instead of theexpansion of existing schools.

Component B. The most important change made to this component was to the pilot program of teacherperformance incentives that was replaced by a community-based integrated approach to attract, retain and

- 2-

improve the attendance of teachers in isolated rural communities. This new program, HonduranCommunity Education Program (Proyecto Hondurefio de Educaci6n Comunitaria - PROHECO) wascreated in 1999.

Component C. This third Component was added to the Project, through a Credit Agreement amendment,in response to the emergency created by the Hurricane Mitch in November 1998. It financed emergencysubprojects (prepared at the departmental, district and community levels) consisting of: (a) the acquisitionand distribution of teaching materials, textbooks and other educational materials, acquisition of schoolfurniture, provision of psychological assistance to the teachers, students and their families and/or otherinvestment for productive purposes that met the criteria set forth in the Project Operational Manual; and (b)the provision of food supplements to students enrolled in those public preschools and primary schoolsselected by the MOE in accordance with the criteria established in the Project Operational Manual, throughthe Healthy Schools Program (Programa de Escuelas Saludables). An amendment to the legal documentssigned in April 12, 1999, formalized the inclusion of this new component.

3.5 Quality at Entry:

The overall quality at entry was satisfactory, based on: (a) the clarity of the project objectives and keyperformance indicators; (b) the economic analysis of project costs and benefits; (c) the analysis of the fiscalimpact of the project and the required financing of recurrent costs with and without the project; (d)extensive stakeholders consultations including with Indigenous ethnic groups; and (e) the definition ofspecific strategies to minimize risks associated with the timely provision of counterpart funds.

4. Achievement of Objective and Outputs

4.1 Outcome/achievement of objective:The achievement of the Project objectives is rated satisfactory, based on the aggregated evidence of projectoutcomes with respect to: (a) positive trends on students' academic achievement (although % change ismuch lower in Spanish than in Math, and for 6th graders in comparison to 3rd graders); (b) improvedgrowth enrollment rates for preschool and improved net enrollment rates for primary education (netenrollment rates evidence improved school efficiency through early access to school, appropriateage-to-grade enrollment, and reduced repetition rates); and (c) increased institutional efficiency shown inbetter delivery of educational services through decentralization and rural community-led models (which inturn improved access and educational indicators in rural areas) and in reduced administrative costs(nonetheless, in areas such as on-time delivery of textbooks and library books to schools and themanagement of intercultural and bilingual education, the MOE still needs to increase its capacity andefficiency). These results are described in more detail below.

* Raise Students' Academic Achievement. Table 1 shows the series of test scores in standardizedexams, carried out by the Project's supported External Education Quality Evaluation Unit(UMCE), between 1997-2000. Higher test scores were attained in mathematics for both 3rd (19%positive change) and 6th graders (11% positive change). In Spanish, test scores remained the same(for 6th graders) or increased slightly (for 3rd graders). Although, Honduras still has broadmargins for improvement (national scores are below the 50% mark), positive trends can already beinferred.

-3 -

Table 1. National Standardized Test Scores in Math and Spanish for 3rd and 6th Graders: 1997-2000.

% of Change Between 1997-2000 inStandardized Test Scores in Spanish and Math for 3rd and 6'h Graders

% change1997 1998 1999 2000 1997-2000

NationalSpanish - 3rd grade 40 41 42 41 2Spanish - 6th grade 46 47 n.d. 46 0Math - 3rd grade 36 43 43 43 19Math - 6th grade 35 40 n.d. 39 11

Source: UMCE

* Improved Access and School Efficiency. Table 2 documents the expansion in enrollment ratesfor preschool and primary education during the life of the project. Preschool coverage of 4 to 6year-old children, increased by approximately 9.2 percentage points, from 29.7% in 1995 to38.9% in 1999, largely as a result of the creation of the Community Centers for Initial Education(Centros Comunitarios para la Iniciacion Escolar - CCIE) financed by the Project. Similarly, thenet primary education enrollment among children, 7 to 13 years of age, increased by 3.4%percentage points during the life of the project, from 86.4% in 1995 to 89.8% in 2001. Improvednet enrollment rates evidence not only increased access but also efficiency indicators such as earlyand appropriate age-to-grade enrollment, and lower repetition rates (see table 3 below). As aresult, the average number of primary school years completed in Honduras is showing positivetrends for all income quintiles (see table 4, below).

Table 2. National Student Enrollment Rates in Preschool and Primary School, 1990-1999

Preschool PrimaryYear Gross Enrollment Rate Gross Enrollment Rate Net Enrollment Rate (%)

(%) (%)1995 29.7 97.4 86.41996 32.6 98.3 88.01997 34.2 98.8 89.11998 35.4 98.0 89.0

19991/ 38.9 97.2 89.8Reference Population: 4-6 years 7-13 years 7-13 years

1/ Preliminary ennrlment figures.Source: ESA Consultores. "Ex-post Economic Evaluation of PROMEB." Honduras, March 2002.

- 4 -

Table 3. Impact of Increased Internal School Efficiency on Primary Education Student FlowsImpact - Percentage

Indicators Baselirte 1996 1997 1998 1999 2000Dropout Rate NA 8.95 9.53 NA NA 3.0Repetition Rate 28.0 9.8 9.4 9.6 9.2 8.0

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (1 9 8 8 ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Source: For net enrollment, completion rate and repetition rate, see Darlyn Meza. Informe ICR-Honduras. February 2002. For dropout ratesee PKF Worldwide. Evaluaci6n del Impacto del Proyecto de Mejoramiento de la Educaci6n Basica. January 2002.

Table 4. Trends in Primary Education Attainment

Cohort aged Average Primary years completed by Percent with primary years completed by15 in year: income quintile income quintile

2 31 4 5; Avera 1 2 3 4 5 Avera_ J J~~~~~~~~~ j ~~~~~~ge ge

1994 4.4 4.5 48 5.3 5.7 5.0 49 65 66 83 88 711999 4.6 4.8 5_2 5 5.6 5.1 52 63 71 81 87 70

Source: World Bank. 'Project Appraisal Document: Honduras Community-Based Education Project." Apnl 10, 2001.

* Improved Institutional Efficiency.

(a) Improved Education Services in Targeted Rural Communities. Institutional efficiency wasachieved through decentralization and community involvement in the provision of educationservices, especially in isolated rural schools. In extremely isolated and hard-to-reach rural schools(representing about 11% of all primary schools), the impact of the decentralization and communityparticipation program (called PROHECO) resulted in (i) an expansion of 1,020 primary schools inhard-to-reach rural areas; (ii) 7,100 parents, organized in 1,284 community education associations(called AECO), with direct school management functions; (iii) efficient allocation of more than1,300 teaching staff; (iv) primary education access for over 40,000 children; and (v) reduction of50% in repetition rates (Table 5). Studies evaluating the program show that the management ofteaching staff, decentralized to the community level, has increased teacher attendance atPROHECO schools and is significantly higher than at traditional primary schools. In particular,the UNDP/CEPAL study (Durston, September 1999) shows that PROHECO had an importantimpact in (i) ensuring the availability of teachers and educational materials in isolated ruralschools; (ii) better attendance of both students and teachers; (iii) generating parental support toschool activities; and (iv) creating a more efficient and participatory system of school managementthat ensures accountability to civil society in the application of public and community resources.

- 5-

Table 5. Performance of PROHECO Prima Education ProgramIndicator 1999 2000 2001

Number of Schools 506 820 1,020Net Student Enrollment (grades 1-6) 22,361 39,540 42,842Average Repetition Rate (%) 18.4 10.8 9.2Number of Teachers 648 1,109 1338Organized Parental Committees 645 1,179 1284Parents Directly Involved in School 3,858 6,528 7,100Management ISource: Secretaria de Educaci6n; Pryecto Hondureno de Educaci6n Communitaria: PROHECO (Tegucigalpa). January 2002.

(b) Improved Institutional efficiency is also apparent in the administration of the MOE as aresult of its decentralization policies and community involvement, including lower transaction andtransportation costs (since, for example, education materials are purchased by the school andcommunity rather than centrally by the MOE) and school management support by communities. Ingeneral, during the life of the project, MOE administrative costs were reduced by about 47%, fromUS$3.96 million in 1996 to US$2.12 million in 2001, as shown in Table 6.

Table 6. Indicators of Increased Administrative Efficiency in the MOE (US$ millions)Indicator 1996 1997 1998 1999 2000 2001

MOE Administrative 3.96 3.48 3.96 2.10 2.75 2.12CostsSource: Govemment of Honduras. MOE Planning Department. 2002.

4.2 Outputs by components:

Component A: Improve the Quality of Basic EducationICR Rating: Satisfactory

Subcomponent A.1 Teacher Training. This subcomponent successfully provided technical and financialassistance for pre-service and in-service training of teachers and administrators, initially through theteacher training centers (Centros de Aprendizaje Docente - CAD) in 1996 and 1997, and subsequentlythrough the continuous in-service education program (Programa de Formacion Continua - PFC) of theNational Pedagogic University (UJPNFM). A total of 1,449 CADs were established and supplied withappropriate teacher training materials, serving primary teachers nationwide. In parallel, national andregional training seminar benefitted 2,800 preschool and 27,000 primary school teachers, 1,168 schoolprincipals, 1,756 supervisors, and 120 professors of Escuelas Normales (high-school level teacher trainingschools).

Starting in 1998, the teacher training strategy was modified to focus on the Programa de Formaci6nContinua (PFC) to be implemented by the National Pedagogical University. Although the CADs were notofficially closed, subsequent teacher training investments concentrated on a university-level accreditedTeacher Development program. The PFC was especially designed for rural teachers, and included modulesfor content areas, multigrade pedagogy, and community involvement. Changes in sector policy prioritiesregarding teacher training also affected the planned reform of Escuelas Normales (teacher training schoolsat the secondary education level), which aimed at reducing the number of schools from 12 to 4. Ratherthan closing these secondary school (at a high political cost), the Pedagogical University is definingstrategies to incorporate Escuelas Normales into a broader in-service teacher training system, which will

- 6 -

require further university-level training for these students. The PFC is also incorporating the CADs into itstraining delivery system, as local satellites where teachers can exchange classroom experiences and supporteach other with the application of the new content and methodologies learned in training programs.Stakeholders perceived as positive the changes in teacher training policy.

Among the important achievement of the PFC teacher training program, is the development of curriculum,educational materials, and standardized tests for an accredited Associate Degree in Basic Education at theNational Pedagogic University. The revised curriculum includes multigrade and participatory teachingmethodologies which are essential for improving teaching quality in rural areas. Also, the financialsustainability of this program is being achieved. The costs of university level training beyond two years(BAs or Master Degrees) will be financed by teachers themselves. Already, 65% of the 2,000 plus teachers,benefited from the Project's PFC investments, have self-financed their continued university level trainingand education.

Subcomponent A.2 Textbooks and Didactic Materials. This subcomponent was successfully carried outthrough (a) the provision of technical assistance for the revision of existing primary school textbooks,student and teacher guides, field tests of new educational materials, and selection of library books; (b) theprocurement of books for small classroom libraries; and (c) the financing of office equipment and operatingcosts for the MOE unit responsible for teaching and learning educational materials, and the improvement ofdistribution systems. Given the decentralization and rural community participation policies, enacted duringthe life of the project, the provision of nondurable educational materials and complementary classroomsupplies, for hard-to-reach rural schools, was managed by community education associations.

In terms of physical progress, targets were exceeded for the supply of textbooks, student supplies andclassroom libraries (see Table 7). These increases in physical output included the replacement of textbooksand library materials destroyed or lost during Hurricane Mitch. The large increase in the physical targetsfor this component required increased institutional capacity to design, produce and distribute educationmaterials. To this effect, KFW, a co-financier for this subcomponent, provided continuous technicalassistance in the field.

The subcomponent provided educational materials (to complement training provided under component Al)for the Community Centers for Initial Education (Centros de Educaci6n Pre-escolar No Formal - CCIE).A total of 2,508 CCIEs were supported in rural communities, more than doubling the original target of1,200. The CCIEs successfully provided preschool education during the Summer for children entering thefirst grade of primary school in the Fall. The teachers of CCIE were 15,700 community volunteers trainedunder the Project. No civil works were involved in the establishment of the CCIE, as they operated inexisting schools during vacations. Evaluations of the CCIE program have shown that it provides preschoolchildren with a minimum of school-readiness skills that help them improve their first grade performance.

- 7 -

Table 7. Textbooks and Educational MaterialsEducational Materials Units Produced and Distributed Actual vs. Original Target (%)

Primary education textbooks for 11,740,698 273grades 1 through 6Student supplies for preschool and 48,160 1,447primary school (including CCIEtoys)

Preschool and primary classroom 4,270 21.3libraries/ I_I1/ The original design of classroom libraries was changed to school libraries, which explains the large differential between planned and actualachievements.

In terms of financial progress, the subcomponent utilized less than 50% of the original amounts budgetedfor its implementation (see Annex 2). There are two reasons for this. One, given that the physical targetsin terms of textbooks, library books and didactic materials were exceeded, the expected costs and budgetsallocated at time of project design were overestimated, even when the efficiencies and savings achievedduring project implementation are factored in. Second, the new decentralization and communityparticipation policies included the transferring of funds to hard-to-reach rural communities to purchasenondurable education materials and other complementary classroom supplies. The funds for theseresources, thus, were transferred from the Textbook and Didactic Materials (subcomponent Al) to theTeaching Performance Improvement Program (subcomponent B2), from where the community-basededucation management strategy was financed.

In general, a particularly innovative feature of this subcomponent was the field testing of new educationmaterials, which ensured the adequacy of the content and the presentation of the materials for the studentsand the teachers to whom they were intended. One aspect of the implementation of this component was lessthan satisfactory, namely the original centralized and long distribution systems. As a result, there weredelays in the arrival of textbooks and materials to the schools in the beginning of each school year. Thisproblem was corrected by the MOE through intensive involvement of Departmental and District Offices aswell as parents' organizations.

Subcomponent A.3 Bilingual Education. This component was partially successful in achieving itsoriginal expected outputs. It intended to make broad reforms-from the macro level to theclassroom-in Bilingual and Intercultural Education (BIE) in Honduras. However, the benefits achievedfocused only at the macro-level, and included (i) the normalization of the Miskito and Garifuna languages,(ii) the development of dictionaries and grammar reference materials, and (iii) the development of a numberof textbooks and teaching materials. The Project did not reach the classroom level, as originally intended.

This subcomponent was to focus on the two larger ethnic and bilingual communities in Honduras: Garifunaand Miskito (representing 61% of the Indigenous population in the country). However, during projectimplementation, the MOE decided to support the development of BIE education materials for two otherlanguages, the Tawahka and Pech (see table 8 below), and initiate BEI assessments for four other groups:Chorti, Islefio-Criollo, Lenca, and Tolupan. As part of the macro BIE reforms, the subcomponentsupported the delivery of national training seminars on bilingual and inter-cultural education, improvingawareness and understanding of new teaching methodologies. Subsequently, the MOE and the NationalPedagogic University (UNPFM) signed an agreement to set up an accredited Bilingual and Inter-culturalEducation program to train specialized teachers. Finally, within the development of the National Basic

- 8-

Curriculum, the MOE is addressing the needs of BIE.

The trade-off of focusing on a large number of ethnic groups and on macro reforms was to postpone directclassroom support to Garifuna and Miskito school, as intended by the original subcomponent design. TheGovemment, however, continues to be committed to intercultural and bilingual education and hasearnarked 10% of a new IDA education credit to support directly indigenous communities and BEIschools.

Table 8. Didactic Materials Developed through the Bilingual Education SubcomponentDidactic Materials Grade Language Number Distributed

Reading and writing primers 1 Miskito 1,000Reading and writing primers 2 Miskito 1,000Student guide package 1 Tawahka Not reproduced or distributedStudent guide package 1 I Pech Not reproduced or distributedSource: ICR Mission

Subcomponent A.4 External Evaluation of Student Academic Achievements. This subcomponent wasvery successful in meeting its objectives. A Unit for the Evaluation of Education Quality (Unidad deMedici6n de la Calidad de la Educaci6n - UTMCE) was established at the National Pedagogic University.The dMCE started applying standardized achievement tests in 1996 after its staff had been trained, thenecessary equipment and physical resources were in place, and the prepaftory work of developing testinginstruments had been completed. The tests developed and applied covered Mathematics and Spanish forgrades 2 through 6 and oral and written language for grades 2 through 5 (see Table 9). In addition, theUaMCE carried out several surveys to determine the main factors affecting the results of the studentachievement tests, analyzed test results, and disseminated these results within the MOE, DepartmentalOffices and at the school level. In 1999, due to hurricane Mitch, test application was interrupted, but waspromptly reinstated in 2000. As a result of the project, Honduras has now one of the most advancedstandardized student achievement test systems in Central America. Nevertheless, the Government isstrongly committed to continue improving its education quality evaluation system, particularly in thefollowing areas: (a) gradual increase of the test sample from 10% to 20% of the student population in eachgrade, in order to strengthen the reliability of results; (b) improved coordination between studentachievement tests, curriculum development, didactic materials. production, and teacher training; (c)expanded dissemination of test results at the school level; and (d) increased application of test results ineducation sector policy making.

Table 9. Standardized Student Achievement Test AppliedTest Year Grades

Spanish and Mathematics 1996 3 and 6Spanish and Mathematics 1997 2, 3, 4 and 6Spanish and Mathematics 1998 2, 3, 4 and 5Spanish and Mathematics 1999 3 and 6Spanish and Mathematics 2000 2 and 3 at PROHECO schoolsOral and Written Language 2001 2, 3, 4 and 5Oral and Written Language 2001 2 and 4Source: ICR missiom

Subcomponent A.5 Improvement of Physical Infrastructure in Rural Areas. The performance of thissubcomponent is rated satisfactory, although the original design was modified to address the demand fornew schools rather than the need to expand existing schools. The FHIS successfully carried out

- 9-

construction design, implementation and supervision, building and furnishing for a total of 107 classroomsin 71 new schools; rehabilitated 39 existing classrooms; and furnished an additional 144 classrooms inschools built with GOH funds. The subcomponent was co-financed by the GOH (14.4%), KfW (84.1%)and IDA (1.5%). Standard designs were used in the construction of the new primary schools, consisting of1-2 classrooms, kitchen, storeroom, lavatories, and water supply connection. The MOE selected the schoollocation, based on the school census; established the technical standards to be used by FHIS, includingfurniture specifications; and appointed a teacher for each of the new classrooms once construction wasfinished. This subcomponent also financed construction and equipment for 13 new Departmental offices,rehabilitation and equipment for 5 existing Departmental offices, and construction and equipment of 120District Offices.

When hurricane Mitch devastated Honduras in November, 1998, the physical infrastructure program wasadjusted to respond to the needs of damaged schools, departmental offices and of the MOE building, whichwas virtually destroyed, resulting in considerable loss of physical assets and information, including manyvehicles, office equipment, educational materials and other goods provided by the Project. Part of theemergency resources were transferred to decentralized Departmental and District Offices of the MOE,enabling them to effectively address the emergency needs under their jurisdiction (see Component C).

To ensure the sustainability of the school buildings, maintenance contracts were entered into between theMOE and the municipalities were the new schools were located. A maintenance committee was formed foreach school, consisting of five community members who were trained in basic preventive maintenance.Finally, during 2001, the MOE initiated a pilot to promote and support community participation ineducation infrastructure and maintenance called "Ayuda Mutua" (Mutual Help), and so far 74 additionalschools have been built and maintained directly by the community.

Component B: Institutional StrengtheningICR Rating: Satisfactory

Subcomponent B.1. Reorganization, Decentralization, and Development of Management Capacityand Information System of the MOE. The implementation of this subcomponent was successful inmeeting its original development objectives, including the reorganization of the MOE and thedecentralization to 18 departmental education offices. Nonetheless, central MOE offices still need supportto increase their management capacity and to integrate and consolidate their information systems. Keyachievements are highlighted below:

* The reorganization of the MOE, carried out in 1996-1997 after extensive discussions with staff,resulted in a reduction from 80 to 20 administrative divisions at headquarters.

* Important procedural reformns were introduced in the MOE, notably through increased delegation ofauthority from the office of the Minister to Division heads at the central office.

* 18 Departmental Offices were created and assumed the following functions, originally handled by thecentral MOE: (a) processing of student graduation requests; (b) assessment and award ofequivalencies for student transfers; (c) personnel management, including leave requests, permits, andbenefits; (d) legal processing associated with school creation and classification; and (e) the handling ofmost administrative complaints. The transfer of these functions to Departmental Offices resulted insignificant process time savings for the public sector as well as for parents and students.

* The administrative reform of the MOE included a national strategy for parental and communalparticipation in the delivery of education services, through the PROHECO program.

* The new decentralized structure of the MOE and its Departmental Offices proved a key element in thesuccess and speed of response to the emergency created by hurricane Mitch.

- 10-

* The proposed reformnof employment and salary regimes observed progress in the following areas: (a)in 1997 a new Teacher Statute (Estatuto Docente) was published; (b) during the 1998-1999 period,several instruments to operationalize the teacher statute were completed, such as detailed regulationsand a manual of functions; and (c) a draft manual of positions and compensation has been extensivelydiscussed with the teacher's union, and is currently being revised on the basis of in-depth analysis of theperformance of teachers. In 2002, a fiscal impact analysis carried out by the new Government showedthe need to control radical increments in the education wage bill and, thus, salary regimes negotiationsbetween the Government and Teacher Unions continue to-date.

* The current administration is committed to pursuing further administrative reforms in the sector andstrengthening management capacity.

Subcomponent B.2 Teachers' Performance Improvement Program. This subcomponent wasredesigned during project implementation in line with the new policies of decentralization, school-basedmanagement and community participation in the education sector. The subcomponent's objective was toimprove teaching performance in rural schools, especially those in isolated and hard-to-reach communities.This objective did not change, but the specific intervention did. The original (SAR) design focused onpaying yearly bonuses to rural teachers to attract, retain and improve their attendance. However, the newcommunity participation policies provided the opportunity to involve rural parents and communities in themanagement of their schools, including the contracting and monitoring of teachers. This new strategy,launched within the subcomponent, was called PROHECO (Programa Hondureno de Participaci6nComunitaria). After only one year of implementation (in 1999), PROHECO was highly successful inattracting 650 teachers to hard-to-reach rural areas and, thus, providing school services to approximately22,500 students, without previous education opportunities. By the year 2001, over 1,000 new rural schoolswere functioning, 42,000 children were attending these schools, and more than 1,300 teachers had beenattracted to rural communities traditionally not served by the centralized education provision system. Morethan 5,000 rural parents are directly involved in school management through their participation inCommunity Education Associations (Asociaciones de Educaci6n Comunitaria, AECO).

PROHECO was patterned after successful programs in El Salvador and Guatemala, and consisted offorming parental associations in rural areas to manage schools with financial resources directly transferredfrom the MOE. This parental committees became formal and legal units within the education system;allowed to open schools; hire, pay and monitor teacher attendance; and, in general, manage public funds forschool improvements. The community-based strategy successfully accomplished the original goal ofimproving teachers' performance in rural areas, but also strengthened the process of decentralizationthrough the active participation of community and parents' organizations. An economic analysis ofPROHECO costs and benefits indicates that the program has an internal rate of return of 11% (see Annex3).

As a newly emerging education strategy in Honduras, PROHECO is still in the process of learning,adjusting and improving. Major changes were required especially in the area of school administration andfinancing. Decentralizing public resources to more than 1,000 hard-to-reach and isolated ruralcommunities has not been easy. Traditional institutions such as the Ministry of Finance, the AuditorsGeneral, the Ministry of Education's administrative units, and even commercial banks have had to learn towork with rural parents and with simpler but effective management tools. At times, financial transfers tothe communities were delayed and rules and regulations had to be re-negotiated to guarantee bothadministrative efficiency and community involvement. Nonetheless, all stakeholders are fully committed tocontinue to reform the education system in line with the positive evidence of school based management andcommunity support.

PROHECO evidenced the important role that parents and communities can play in the education sector, aswell as the benefit of decentralization strategies focusing at the school level. This impact has beenperceived across the education system and the Government will strengthen school based management andcommunity participation not only in rural areas but nationwide. The new IDA Credit for the educationsector (the Community Based Education Project) will not only expand PROHECO, but will support theformation of school governments in traditional schools with the participation of parents, principals,teachers and students. In conclusion, this restructured subcomponent absorbed 20% of the project budget;however, it became the most innovative and far reaching education reform intervention in the last decade inHonduras.

Subcomponent B.3 Project Administration, Monitoring and Evaluation. The administration of theProject evolved through three quite different phases. The initial start-up phase (1995-1997) wascharacterized by rapid turnover of Project coordinators and staff and a relative isolation of the ProjectCoordination Unit (PCU) from the MOE. The second phase (1998-1999) is dramatically marked by theemergency created by hurricane Mitch. The crises served as a catalyst to use project resources moreeffectively in support of the national educational system, providing for the rapid replacement of equipment,vehicles, didactic materials and information. During this phase, the PCU began working withDepartmental and District offices, which vastly increased its efficiency. The third phase (2000-2001) ischaracterized by the good use of lessons leamed from previous years, improved efficiency, andconsolidation of the administrative capacity.

A major output of this subcomponent was the design and consolidation of an automated financialmanagement system for the Project. Initially, financial accounting was done manually (with support ofspreadsheets), but by 1999 a fully automated system was implemented. Also, the new administrative andfinancial management system was adapted to the needs of the community-led components (mainlyPROHECO) and contributed an important set of administrative manuals for community-based procurementand financial management. Finally, in terms of the monitoring and evaluation outputs, the MOE and thePCU fully documented and systematized the implementation experience and lessons leamed from the keysubcomponents of the projects, which have been published and disseminated, as well as contributed to thepreparation of this ICR.

Component C. ICR Rating: Satisfactory - Emergency Subprojects. This subcomponent, introduced inearly 1999, was very successful in enabling the MOE to participate in the National Emergency Plan inresponse to the destruction in the education sector caused by Hurricane Mitch. The component wasimplemented largely through the Departmental offices with the objective to match well emergencyinvestments with actual local needs. To create this new component, an amendment was made to the projectlegal documents in April 1999. This new component (absorbing US$ 1.1 million or 2.4% of total Projectcosts) financed direct transfers for education emergency subprojects at the departmental and communitylevels, including psychological assistance to teachers, students and their families, and for emergencyeducation food supplements to students enrolled in schools severely affected by the hurricane. However, theproject also contributed to the education sector emergency through its regular components (educationalmaterials and infrastructure), which did not require restructuring but did benefit from expeditedprocurement strategies to guarantee timely replacement of teaching materials, textbooks and othereducational materials and acquisition of school furniture.

4.3 Net Present Value/Economic rate of return:The project can be expected to meet its projected goal of contributing to the economic development ofHonduras through a higher rate of human capital accumulation achieved by increased years of schoolingand positive trends in student cognitive achievement. It is still too early to assess the full economic impact

- 12 -

projected at appraisal, due to the difficulty of measuring, at this time, the quality improvements ineducational services achieved by the project. Nevertheless, for the ICR an update of the expected rates ofreturn for the community education model, mainly PROHECO, was done. The economic analysis updateutilized a simpler measure of human capital accumulation, which keeps constant education quality andmeasures the impact of increased years of schooling of students. It estimated the benefit stream based onthe analysis of the household survey data for March 1999, as reported in Annex 3. The estimation of theinternal rate of return of the PROHECO model was based on the projected increase in earnings of thestudents, the real efficiency factors reported in PROHECO schools, and the real costs of the program. Theresulting internal rate of return is 11%. This rate is still considered a lower-bound estimate, sincecommunity involvement in school management will probably result in additional improvements in efficiencyand education quality, reducing the costs and increasing the specific value of the additional years ofeducation for the students over their work lives.

Also, the original project fiscal impact expected cost savings generated by more efficient student flows inprimary education. Indeed, the analysis in Annex 3 shows that repetition rates were reduced during the lifeof the project, but less so than projected. However, if one attributes to the project all the savings associatedwith the national repetition rates reductions, occurring between 1995 and 2000 (which may beoverestimating the impact of the project), the cumulative value of the savings is $13.1 million, or 17.4% ofthe amount estimated at appraisal.

4.4 Financial rate of return:NA

4.5 Institutional development impact:The project had a substantial institutional development impact, reflected in increased management capacityat the MOE, in the decentralization of MOE operations to departmental and district levels, and in theeffective involvement of local communities in the provision of educational services. These reform areexemplified by the following key improvements:

* The community involvement in education services delivery, introduced by PROHECO (within theTeaching Performance Improvement Program), resulted in important savings from traditionalcentralized administration and opened up immense possibilities for improving the delivery of ruraleducation services countrywide;

* The reorganization and decentralization of the MOE strengthen its administrative capacity andincreased the accountability at all levels of the system (departments, school districts, school andcommunities);

* The newly created Departmental Offices of the MOE have the capacity to address most of theadministrative needs of their constituencies, generating public and private savings in time and moneyaccrued from their decentralized operation;

* The Honduras education system now has the capacity to conduct standardized academic achievementtests of primary school students, throughout the country, on an yearly basis, and has the technicalexpertise to analyze test results and disseminate the information in ways that are meaningful for sectorpolicy making; and

* The Honduras education system has significantly improved its capacity to provide pre-service andin-service training for preschool and primary teachers, through the operation of the PFC by the

- 13 -

National Pedagogic University.

5. Major Factors Affecting Implementation and Outcome

5.1 Factors outside the control of government or implementing agency:The most substantial impact on Project implementation was caused by hurricane Mitch in November 1998.This natural catastrophe caused great damage throughout the country and resulted in extensive loss ofinfrastructure, materials, and information in the education sector. To respond to the crisis, an amendmentwas made to the project legal documents in April 1999, thereby integrating the project in the nationalEmergency Plan through a new emergency subprojects component. This new component, althoughabsorbing only US$ 1.1 million of project funds (approximately 2.4% of total actual project costs), wasinstrumental in providing resources at the departmental and community level. Within the other originalproject components (mainly the educational materials and infrastructure subcomponents), expeditedprocurement strategies guaranteed timely replacement of teaching materials, textbooks and othereducational materials and acquisition of school furniture. Finally, the new added component provided forpsychological assistance to teachers, students and their families, and for emergency education foodsupplements to students enrolled in schools severely affected by the hurricane.

5.2 Factors generally subject to government control:The provision of counterpart funds by the Government was below expected levels during the first two yearsof project implementation, although such deficiency was effectively redressed as of 1998. Projectadministration suffered from high personnel turnover during its start-up period, but beginning with the newadministration in 1998, governmental support for the Project was clearly strengthened and projectimplementation benefitted accordingly.

5.3 Factors generally subject to implementing agency control:* Frequent changes in Project Coordinator. During the six years of project implementation, the UCP

Coordinator changed four times. Changes in key personnel resulted in implementation delays, loss ofinstitutional memory, and renewed need to train new staff to carryout basic project execution functionsand familiarize new people in IDA normns and procedures.

* Relative isolation of the PCU from the MOE. Although several attempts were made to fullyintegrate project management into the regular administration of the MOE, the PCU in fact workedindependently, stating that this relative autonomy improved efficiency. However, seeking to improvethe level of project ownership by its permanent staff, the MOE has created a new organizationalstrategy to manage projects financed by multilateral Banks: only an Administrative and Financial Unitwill be created to handle credit and loan specific procedures, but all technical management and decisionmaking will be the responsibility of the line units of the MOE. Technical consultants will be hiredwithin the technical units of the MOE, and not independently by a PCU.

* Delayed operation of the Financial Management System. During 1996-1998, financial accountingwas done manually with support of spreadsheets, generating problems in systematic and on-timereporting and internal control. An automated financial management system was formally adopted in1999. This automated system also facilitates integration with other financial management systems,especially with those designed by the Ministry of Finance.

5.4 Costs andfinancing:Total project costs are estimated at US$50.52 million (US$53.1 total budget minus US$2.58 undisbursedat project end) or 95% of the appraisal estimate (see Annex 2). Allocated IDA credit funds utilized by theProject were US$28.9 (above 96% of the US$30 million equivalent credit). The non-utilized funds of

- 14 -

US$1.1 million undisbursed funds will be canceled from Credit 2694-HO. Project financing by source isestimated in Table 10 below.

Table 10. Latest Estimate of Total Project CostsSource of Financing (US$ million) Total

sComponent 5 IDA GOH KfWV (US$ million)

A. Improving theQuality of Basic 10.32 1.2 13.3 24.82EducationB. Institutional 17.48 7.12 0.0 24.6StrengtheningC. Emergency 1.1 0.0 0.0 1.1Subprograms

Undisburse 1.1 1.48 2.58Total 30.0 7.8 13.3 53.1

The pattem of IDA Credit disbursements given in Table 11 below, shows that in 1997-1998 (FY98)disbursements were markedly slow, reflecting project management difficulties. However, thesedisbursement delays were fully compensated in 1998-1999 (FY99) reaching an annual peak of US$9.8million.

Table 11. Actual Disbursement of IDA Credit 2694-HO (US$ million)FY96 FY97 - FY98 . FY99 FY01 FY02

Per year 2.62 4.31 1.08 9.78 4.68 3.89 2.54Cumula 6.93 8.01 17.79 22.47 26.36 28.90

Note: The total disbursed IDA funds of US$28.9 million equivalent reflects an amount of US$1.1 millionequivalent undisbursed from a total approved IDA credit of US$30 million equivalent.

6. Sustainability

6.1 Rationale for sustainability rating:It is likely that the Project will maintain, over its economic and impact life, the achievements generatedduring its implementation. Project impact sustainability is based on the following considerations:

1. Strong government commitment to continue to improve the delivery of basic education services.2. The mobilization of the active participation of community members and parents in the management of

preschool programs and primary schools.3. The preparation and approval of a follow-on education project -- Community-Based Education Project,

financed by IDA Credit 3497-HO which will continue, expand and enhance the most successfulactivities initiated by the Project. Specifically, the new project will:

* complement textbooks with additional educational materials to guide pedagogic adaptationsrequired for multigrade and inter-cultural education;

* continue to support standardized national student achievement tests in Mathematics and Spanish,as well as surveys on factors affecting test results, to provide effective feedback to teachers andparents;

* continue the teacher training program (PFC) and introduce a BIE training program for teachers and

- 15-

community volunteers;* expand the PROHECO program at preschool and basic education levels, including in indigenous

comrnmunities;* strengthen the operation of Departmental and District offices;* focus on school and community level education investment for ethnic communities of Honduras by

the development of a bilingual and inter-cultural teacher training program (already set up withinthe National Pedagogical University) and by earmarking at least 20% of new PROHECO schoolsin indigenous communities; and

* continue to support the process of MOE decentralization, by channelling financial resourcesdirectly to schools for the implementation of their own school-improvement subprojects, givingpriority to the schools located in the poorest rural areas.

6.2 Transition arrangement to regular operations:Many project activities have already been mainstreamed into the regular sector operations. Of particularimportance is the institutionalization of the programs managed by the National Pedagogic University,including teacher training and external evaluation of student academic achievements, and the involvementof local community and parents in the management of schools.

To maximize the benefits of the Project, the MOE and IDA agreed on the following transition plan:

* Continue support for the education decentralization policies;* Strengthen school-based management not only in rural areas but system-wide;* Consolidate the National Standardized Testing System, improving its articulation with on-going

curriculum reforms, production of didactic materials, and teacher training;* Strengthen the university-based teacher training system by articulating it with the local teacher

leaming circles (CADs) in an integrated National Teacher Training System;* Absorption of operation costs of at least 800 PROHECO schools, which already has been

incorporated in the MOE's recurrent budget;* Support the planned expansion of at least an additional 800 PROHECO schools in hard-to-reach

rural areas (of which 200 in ethnic communities);* Strengthen the integration of education policies throughout projects financed by different donors

and with community participation;* Continue to strengthen the institutional capacity of the MOE to administrate, monitor, and evaluate

the delivery of educational services, taking into account the lessons learned through this Project;and

* Continue utilization in future operations of automated financial management systems developed inthis project.

7. Bank and Borrower Performance

Bank7.1 Lending:IDA performance in the identification, preparation and appraisal of the Project is rated satisfactory, basedon the following reasons:

* The objectives of the project were consistent with GOH priorities and were clearly and conciselystated;

* During project preparation, a multidisciplinary IDA team supported the GOH in the design of theproject, through needs assessments, feasibility studies, stakeholders consultations, and preparation

- 16-

of action plans.* Project risks were identified during preparation and mitigated through strategies incorporated into

the project design.* Project design was innovative in the preparation of the economic, fiscal, and risk management

analyses, and, consisted with country assistance objectives, providing for the articulation betweenthe project and other institutional reforms being carried out at the time by the Ministry of Financeand the Ministry of the Presidency.

* Project design was successful in attracting co-financing.

7.2 Supervision:IDA performance in supervising the Project is rated satisfactory, based on the following considerations:

* Careful project supervision gave the project the necessary flexibility to respond well to changingneeds of the country and the sector;

* IDA was responsive to positive policy changes regarding teacher training, school-basedmanagement and community participation, and particularly in enabling an efficient response to theemergency created by hurricane Mitch;

* The restructuring of the Teaching Performance Improvement Program by relying on high parentaland community involvement in their schools (the PROHECO program), led the way for furtherdecentralization, school-based management, and community participation reforms in the sector;

* Team work among Task Managers in the Central American region and cross-fertilization of bestpractices, which was best exemplified by technical assistance and lessons learned provided toPROHECO from the successful EDUCO program in El Salvador;

* Upon less than satisfactory implementation of the project during its first two year of life andGovernment request for additional IDA team support, technical assistance, policy dialogue, andcontinued monitoring and supervision of the Project was increased. IDA's intensive follow-upduring the last three years of project implementation contributed to the Project achievingsatisfactorily its development objectives and component outputs and disbursing almost fully (94%)credit proceedings;

* Continued IDA focus and technical assistance on fiduciary aspect of project implementationcontributed to greater accountability and the financial institutionalization of key programs, such asPROHECO, with the regular administrative and financial systems of the MOE;

* Sector dialogue was maintained throughout the project supervision period, facilitating timelyadjustments and the introduction of innovative programs, as well as an agreed plan for transition ofproject component to the regular operations of the MOE; and

* During supervision, IDA supported external evaluations of key project components, which led toan improved design of the follow-on education project.

* Notwithstanding the positive aspects of IDA supervision mentioned above, more intensivesupervision during the start-up phase of project implementation (1996-97) might have precludedthe low implementation and disbursement rates and earlier deficiencies in the automated financialsystem.

7.3 Overall Bank performance:Overall IDA performance is rated satisfactory as a result of the factors mentioned in sections 7.1 and 7.2,above, and summarized below:

* Flexible response according to client and sector needs and expectations;* Intensive supervision and technical assistance after 1998 and especially during and after the Hurricane

Mitch catastrophe;

- 17 -

* A successful support for community-led policies and incorporation into project components; and* Field visits and direct dialogue with project beneficiaries at the school and community levels.

Borrower7.4 Preparation:The Government performance during preparation was satisfactory. The MOE led the process of projectpreparation and worked directly with IDA teams supporting the process. Project design was directly linkedto the sector priorities of the time and the recommendations of the various feasibility studies were alsoincorporated.

7.5 Government implementation performance:The Borrower's performance during project implementation is rated satisfactory. The GOH embraced acomplex and ambitious project with full commitment to its objectives and invested the best of its ability inmaking the Project a success. At mid-term, recognizing key project execution weaknesses, GOHre-committed to project goals and guaranteed the achievement of the implementation and developmentobjectives by project end. Most importantly, the GOH demonstrated extraordinary capacity to utilize thelessons leamed during the initial phase of project implementation and introduce timely changes in projectdesign and management that greatly enhanced the overall quality of the project and ensured thesustainability of its benefits.

7.6 Implementing Agency:The performance of the MOE is rated satisfactory. In spite of the project management weaknesses during1996-98 (very slow project start up, continued turnover of PCU staff, and weak financial managementsystems), the MOE tumed around very successfully and, during the last three years of implementation ofthe project, increased execution, met and surpassed physical targets, guaranteed the developmentobjectives, and ensured the transition and ownership of project activities after credit closing. Of particularinterest is the fact that the MOE was able to successfully complement its installed capacity by mobilizingthe participation of other institutions such as the National Pedagogic University, as well as localcommunities and parents in the effort to improve the delivery of basic educational services.

7.7 Overall Borrower performance:In general, the GOH performance is rated satisfactorv. The GOH is praiseworthy in supporting the MOEin carrying out bold reforms in its structure and decentralizing important functions to departmental anddistrict levels, even though institutional reforms in the education sector are particularly difficult given thesize and the political ramifications of the sector. The GOH also ensured the necessary inter-ministerialcoordination to keep the implementation of the project consistent with national priorities, especially in linewith the decentralization and community participation policies of the MOE. Lessons were leamed regardingthe first two years of less-than-satisfactory project implementation, and the project was successfullyrevamped and its objectives achieved.

8. Lessons Learned

The main lessons learned through the implementation of the Project are:

* A community based strategy can lead to rapid improvements in the delivery of educationservices in rural areas. The evaluation of PROHECO confirms the success of similar modelspreviously applied in El Salvador and Guatemala. Benefits from direct community involvement inthe management of rural schools include access to education in very isolated rural communitieswhich never had a school, attracting and retaining teachers in those schools, and increasingattendance of both teachers and students.

- 18-

* The achievement of project development objectives is best guaranteed by appropriateadjustments to the changing needs of the country and the sector. Project implementationdemonstrated that the changes made to project design, particularly in so far as teacher training andperformance improvements and community-led development, were key elements to the success ofthe project. The innovative restructuring of the teacher incentives components into the PROHECOprogram proved particularly felicitous.

* The development impact of external evaluation of student learning achievements is greatlyenhanced when results are broadly disseminated and utilized in sector policy decision-making.The establishment of a national system of external evaluation of student learning achievements is anecessary first step; nevertheless, practical measures to improve education quality, andconsequently student learning achievements, depend to a great extent in translating test results tospecific classroom-based teaching and learning strategies, in involving parents and communitymembers in monitoring the quality of the educational services delivered, and in incorporatinglessons learned from the evaluations in the training of teachers and in the development ofeducational materials. These tasks are still the focus of the Honduras education system and beingaddressed by a follow-up project.

* Maintenance Agreements for the sustanability of education infrastructure must be supportedby adequate financing. Although the MOE was able to sign maintenance agreements with mostmunicipalities where school infrastructure improvements were made, and maintenance committeeswere trained to operate in these schools, the impact of these agreements were dependent upon theestablishment of appropriate funding mechanism to support maintenance activities. Such fundingdoes not need to be solely provided by the MOE, and cost-sharing arrangements with otherstakeholders, including municipalities, are being explored.

* The production of textbooks and other education materials must be supported by an efficientdistribution system. Delays occurred, during the beginning of the school year, in the delivery ofeducation materials to the schools. The MOE is exploring different alternatives to minimize thisproblem in the future, such as more active involvement of decentralized offices, parent'sorganizations, and the private sector. While this problem is common in many other countriesbesides Honduras, solutions are needed to fully harvest the benefits of improved didactic materialsand the on-time availability and utilization in the classroom.

* New textbooks should be consistent with changes in curriculum. The problem of consistencybetween textbooks and curriculum reform is not easily resolved, given the preparation timeinvolved in both activities. Nevertheless, efforts must continue to make new textbooks reflectimportant modifications in the curriculum.

* The production of new education materials is significantly enhanced by the systematic fieldtest of such materials. It is important to carry out field test of all the elements of new educationalmaterials: their contents, language, illustrations, and overall presentation. Field tests will helpensure the pertinence of the didactic materials and the development of precise specifications forproduction. It is especially important to verify what is the language level accessible to mostteachers while preparing teaching guides.

- 19-

9. Partner Comments

(a) Borrower/implementing agency:I. Consideraciones Generales

El Banco Mundial present6 un informe de evaluaci6n inicial basado en los resultados de la misi6n quevisit6 Honduras en Agosto de 1994. Dicho informe (Informe de Evaluaci6n Inicial, Honduras, ProyectoEscuela Morazanica. Reporte No. 13791-HO, Banco Mundial 8 de marzo de 1995) reflej6 problemasclaves, tratados bajo tres enunciados: calidad, eficiencia y equidad.

Para responder a las necesidades del sector educativo, el Proyecto Mejoramiento de la Calidad de laEducaci6n Basica (PROMEB) naci6 a traves del Convenio de Credito NO. 2694 - HO de fecha 21 de juniode 1995, firmado entre el Gobiemo de Honduras y la Asociaci6n Intemacional de Fomento (ATF). Elfinanciamiento total del Proyecto fue de US$53.1 millones de d6lares donde la AIF aporta US$30.0millones, el Gobiemo de Alemania a traves de la KfW aporta US$13.3 millones de dMlares y el Gobiemode Honduras aporta US$9.8 millones.

Los principales objetivos del Proyecto fueron:

* Mejorar los niveles de rendimiento academico y reducir la tasa de repetici6n de los estudiantesmatriculados en las escuelas primarias puiblicas.

* Incrementar la asistencia escolar y crear condiciones de aprendizaje mas efectivas.* Proveer educaci6n bilingiue en las escuelas primarias publicas que sirven a los grupos etnicos Miskitos

y Garifunas.* Mejorar la eficiencia administrativa de la SEP.

Se crearon convenios de asistencia tecnica relacionados con la ejecuci6n del convenio de credito, talescomo: Convenio FHIS, Convenio UPNFM, Convenio Programa Formaci6n Continua (IJPNFM), ConvenioKfW/GTZ, y Convenio con el PNUD.

Los componentes del PROMEB fueron:

Meioramiento de la Calidad de la Educaci6n Basica (US $38.2 millones, 6 72% del costo total delProyecto, incluyendo contingencias). El componente fue orientado a proporcionar: a) capacitaci6n yasistencia para mejorar las habilidades de los maestros, directores y supervisores de pre-primaria yprimaria, y para lograr mejoras en la formaci6n de maestros previa al servicio y la certificaci6n demaestros; b) materiales didActicos, incluyendo libros de texto, materiales complementarios, bibliotecas deaula y mejores sistemas de distribuci6n; c) educaci6n bilingiie en areas indigenas para las comunidades,Garifana y Miskito; d) evaluaci6n extema del logro academico estudiantil; y e) mejoras en infraestructurapara escuelas rurales sobrepobladas, incluyendo maestros adicionales y acceso a la educaci6n pre-escolarmanejada por la comunidad en Areas rurales pobres.

Fortalecimiento Institucional (US$14.0 millones 6 28% del costo total del Provecto. incluyendocontingencias). Este componente tuvo los subcomponentes siguientes: a) asistencia tecnica para lareestructuraci6n y la descentralizaci6n de la SEP y una mejor supervisi6n; b) un programa piloto deincentivos al desempefio de maestros; y c) administraci6n, monitoreo y evaluaci6n del Proyecto.

- 20 -

Enmiendas del Convenio de Credito. Con fecha 12 de abril de 1999 se efectu6 la primera enmienda delcredito AIF 2694-HO. Incorporindose el financiamiento con fondos del cr6dito: Los subproyectosformulados en el Plan de Emergencia y la reorientaci6n del sub-componente Programa de Incentivos aMaestros por el Programa Hondurefio de Educaci6n Comunitaria (PROHECO).

II. Impacto

Un factor externo importante en la evaluaci6n del Proyecto es el Huracan Mitch, que tambien afecto a laSEP en si, destruyendo o daniando parte de la infraestructura de oficinas, equipo y archivos. Dentro de loadministrativo las consecuencias fueron un retroceso institucional debido al gran dafio en las oficinascentrales, una disminuida capacidad de acci6n del nivel central y la perdida de expedientes. Respecto alProyecto PROMEB la consecuencia principal del Mitch fue que la administraci6n gubemamental introdujoel concepto de emergencia, lo que a su vez modific6 la asignaci6n de recursos y obviamente los objetivosdel Proyecto se vieron afectados.

En el proceso de descentralizaci6n el PROMEB jug6 un papel importante, ya sea como financiador deinfraestructura y de costos de funcionamiento o como impulsor activo. En un balance entre estos dosfactores podemos decir que mas peso tuvo el factor financiamiento que el factor tecnico en si, a tal puntoque se podria decir que si el PROMEB no hubiera financiado varios componentes claves, ladescentralizaci6n hubiera sido hoy inexistente o del todo formal.

Si consideramos las experiencias de otros paises, se puede decir que se avanzo bastante rapido durante losafios 1999 - 2001. Se avanzo con exito en aspectos como descentralizar las siguientes funciones: laapertura de nuevos centros educativos, los tramites de titulos de bachiller, las adecuaciones del calendarioescolar a cada regi6n, y en lograr la participaci6n de la comunidad en diferentes areas y la programaci6n,formulaci6n y ejecuci6n presupuestaria en cada Direcci6n Departamental. Ademas existen ciertos avancesen la implementaci6n de un sistema administrativo financiero integrado.

En conclusi6n, el PROMEB tuvo un impacto relativo en la educaci6n basica de Honduras. El impacto fuefocalizado, y se evidencia sobre todo en el apoyo a la descentralizaci6n de la SEP, a traves deinfraestructura, insumos y salarios, la distribuci6n de textos y el mejoramiento de la infraestructuraeducativa.

III. Principales Logros

A. En los subcomponentes con el financiamiento con el prestamo HN-26940 Banco Mundial seidentificaron los siguientes logros:

a. El subcomponente de Capacitaci6n.

- 21 -

Este subcomponente se disefio con el prop6sito de promover una ensefianza mas efectiva al mejorar lashabilidades especificas de ensenanza a traves de programas de formaci6n de maestros y capacitaci6n, y dela introducci6n de criterios objetivos y tecnicos para la contrataci6n de nuevos maestros. Se destacan lossiguientes logros:

* A trav6s del programa de capacitaci6n de INICE se formaron en forma de cascada 27,000 docentes deprimaria, 2,800 docentes de pre-primaria, 1,756 supervisores de primaria, y 120 profesores de escuelasnormales.

* Se desarroll6 e institucionaliz6 el Programa de Formaci6n Continua (PFC) por la UniversidadPedag6gica Nacional Francisco Morazan (UPNFM) y se formaron 2,253 docentes.

* Se dio capacitaci6n a 23,200 voluntarios de los CCIE.* Se desarroll6 m6dulos para la capacitaci6n de maestros, incluyendo: El Gobiemo Escolar, La Escuela

Comunitaria, Trabajo Productivo, Aprendamos Juntos, y El Repaso Escolar Clave.* Se editaron y se distribuyeron titulos relacionados con la capacitaci6n de docentes.* Se formaron 1,449 proyectos de capacitaci6n CADs.

Como se puede observar, los indicadores definidos para la capacitaci6n de profesores de escuelas normales,voluntarios del CCIEs y proyectos de capacitaci6n CAD fueron alcanzados y superados. Las otras metasfueron atendidas pero sin un avance significativo.

b. El subcomponente de Educaci6n Bilingiie

Entre los logros de este subcomponente se cuenta: i) estandarizaci6n, gramatica y diccionario de laslenguas Miskita y Garifuna; ii) desarrollo de seminarios y talleres sobre fundamentos curriculares de laEducaci6n Intercultural Bilingiie (EIB) el las comunidades de los ocho pueblos indigenas y negros deHonduras; iii) realizaci6n con exito y desarrollo de un programa continuo de capacitaci6n en antropologia,lingiiistica, y pedagogia para los miembros del PRONEEAAH.Otros logros incluyen:

* Se realiz6 la propuesta para el desarrollo del diccionario y gramatica Pech y Tol.* Se distribuyeron 1000 ejemplares de cada una de las cartilla de lecto escritura para ler y 2do grado en

misquito.* Se edit6 el libro para colorear 1, Lilka nanira Katataka Yabala Wanhkataya.* Se desarroll6 un estudio de etnohistoria Garifuna.* Se formaron 24 miembros de las diferentes etnias del pais mediante el diplomado de World Bank

Institute (WBI), como parte de un grupo semilla.* Se equip6 a las 14 unidades de Educaci6n Intercultural Bilingiie que existen en las direcciones

departamentales

c. El subcomponente de Evaluaci6n Externa

En este subcomponente se desarroll6 e implement6 la Unidad de Medici6n de la Calidad Educativa(UMCE) al interior de la UPNFM y la Direcci6n General de Evaluaci6n de la Calidad Educativa(DIGECE) al interior de la SEP para generar la capacidad tecnica e institucional para brindar informaci6nvalida y confiable sobre los logros academicos en Espafiol y Matematicas de los educandos que cursan elnivel primario del pais. El Sistema de Evaluaci6n Extema evalu6 cada afio, sistematicamente a una

- 22 -

muestra nacional representativa de estudiantes de primaria, en las materias de espafiol y matemitica. Parael proceso de evaluaci6n, se cre6 la red desconcentrada de evaluaci6n que funciona en 16 DireccionesDepartamentales de educaci6n, 29 representantes de 29 sedes distritales para facilitar el proceso deevaluaci6n en todo el pais. El personal involucrado en las evaluaciones fue capacitado en tecnicas deaplicaci6n de pruebas estandarizadas. Las evaluaciones que se realizaron por afio son las siguientes: 1997- Evaluaci6n de Tercer y Sexto grados, 1998-Evaluaci6n de Segundo, Tercero, Cuarto y Sexto grados,1999-Evaluaci6n de Segundo, Tercero, Cuarto y Quinto Grados, 2000-Evaluaci6n de Tercero y Sextogrados, y evaluaci6n del nivel academico de los estudiantes de segundo y tercer grados del ProyectoHondurefio de Educaci6n Comunitaria, PROH-ECO.

Ademas,

* Se revisaron los indicadores de logro acad&mico y se desarrollaron tablas de alcance de logroacad6mico para cada grado evaluado, en donde se establecen los estandares minimos en t6rminos deareas de dominio y competencias especificas que los estudiantes deben lograr en Espanol yMatematicas

* Se publicaron los resultados de las evaluaciones, ademas de los resultados de los estudios de factoresasociados al rendimiento academico de los estudiantes.

* Se disefiaron planes de capacitaci6n en Evaluaci6n Pedag6gica, los cuales beneficiaron mas de 2,350maestros, directores y tecnicos distritales.

* Se formaron aproximadamente 600 docentes en la ensenanza de matematicas y espafiol, utilizando laspublicaciones de la UMCE que a manera de retroalimentaci6n ha disefiado para reforzar el trabajo deldocente en el aula.

d. El subcomponente de Reorganizaci6n y Descentralizaci6n del MOE

A partir de 1996 se inici6 el proceso de reorganizaci6n de la estructura funcional de la SEP, procurandocon ello una mejor utilizaci6n de los recursos humanos, tecnicos y financieros.

En el nivel central se logr6 una mayor eficiencia a traves de la simplificaci6n y reducci6n de la estructuraorganizacional de la SEP, la eliminaci6n o consolidaci6n de unidades, traslado de competencias al niveldesconcentrado, la capacitaci6n tecnica y administrativa, y la reforma de los regimenes de empleos ysalarios.

Como parte de la desconcentraci6n administrativo, con el decreto legislativo No. 0034-96, se crearon lasdirecciones Departamentales de Educaci6n. La desconcentraci6n permiti6 que el nivel central transfirierafunciones y competencias a la Direcciones Departamentales; al final del afno 1999 ya se habian transferidomas de doce funciones.

La Gerencia Administrativa desconcentr6 el manejo del presupuesto a traves del traslado de transferenciasa las Direcciones Departamentales. Se implement6 el Sistema Integrado de Administraci6n Financiera(SIAFI), lo cual permiti6 mejorar la gesti6n administrativa y habilit6 a los directores y gerentes de negociosdepartamentales para el manejo de la administraci6n presupuestaria.

Se construyeron 13 edificios para las Direcciones Departamentales y se repararon y adecuaron otros 5edificios. Todas las Direcciones Departamentales fueron equipadas con equipos de c6mputo y se lasentregaron 18 vehiculos. Adicionalmente se entregaron 44 vehiculos y 194 motocicletas para el trabajo decampo, incluyendo a los promotores de PROHECO.

- 23-

e. El subcomponente de Incentivos para Maestros

A finales de 1998, en parte debido a los dafios que ocasion6 el Huracan Mitch y la iniciativa presidencialde contar con un programa de participaci6n comunitaria en la gesti6n escolar, se hizo una addenda alProyecto para crear el Programa Hondurefio de Educaci6n Comunitaria dentro del componenteFortalecimiento Institucional. PROHECO tenia el prop6sito de proveer servicios educativos a lascomunidades rurales mas distantes del pais, donde no existia servicio educativo.

Dentro de los logros del programa son los siguientes:

* Se cre6 una Coordinaci6n General del programa, que tiene como funciones principales coordinar lapromoci6n, organizaci6n, y capacitaci6n de las AECOS y coordinar las actividades administrativas yfinancieras, de transferencias y liquidaciones de las mismas.

* Se di6 asistencia tecnica a las AECOs, especificamente en el proceso de liquidaci6n de transferenciasde fondos y revisi6n de la documentaci6n legal y contable de la AECO.

* Se habilitaron aulas para que funcionen como escuelas, movilizando para ello a la comunidad de lasareas rurales mas desprovistas, mejorando el acceso de los nifios mas pobres a la educacion pre-escolary primaria.

* Se crearon, en 13 departamentos del pais, 800 escuelas comunitarias, donde se atendieron cerca de40,000 alumnos del area rural. Se organizaron 1,284 AECOs con personalidades juridicas. Secapacitaron aproximadamente 5,700 padres y madres de familia en el nuevo modelo de gesti6nadministrativa en educaci6n comunitaria, quienes deberian contratar directamente a los maestros,administrar los recursos necesarios para el pago de salarios y la adquisici6n de materiales educativosmenores. Se entregaron paquetes con materiales didActicos a las 800 escuelas y se entregaron becas deexcelencia academica a 4,000 alumnos.

f. El subcomponente del Plan de Emergencia

En noviembre de 1998, la AIF autoriz6 a la secretaria de educaci6n para utilizar fondos del proyecto, dehasta 15 millones de d6lares para apoyar la reconstrucci6n del sistema en el periodo de emergencia, bajo elcontexto del plan de los cien dias y asi reactivar el sistema educativo nacional.

Con estos fondos se financiaron las actividades de apoyo a las Direcciones Departamentales y DireccionesDistritales para la rehabilitaci6n de centros de albergue, la rehabilitaci6n o adecuaci6n de centroseducativos, apoyo a los docentes y alumnos extremadamente damnificados, apoyo a pequefios proyectoseducativos con participaci6n de la comunidad, la compra de bienes y servicios con caracter de emergenciaen apoyo a actividades de reconstrucci6n y transformaci6n, y acondicionamiento y reparaci6n de la oficinacentral de la SEP y de las oficinas distritales y departamentales mas afectadas por el Mitch.

Otros logros del subcomponente son:

* Se adquirieron y distribuyeron materiales que se habian perdido en el huracan a escuelas depre-primaria y primaria.

* Se di6 asistencia al subcomponente Educaci6n Bilingiie para realizar actividades de capacitaci6nrelacionado con el diagn6stico de las condiciones prevalecientes en las comunidades garifunas ymisquitas, el tratamiento del amarillamiento letal del cocotero, la adquisici6n y distribuci6n demateriales a 37 escuelas misquitas y garifunas en los departamentos de Atlantida, Col6n y Gracias aDios.

* Se repusieron un total de 44 vehiculos para las oficinas centrales, se suministraron 199 motocicletas

- 24 -

para los Directores Distritales.

g. El subcomponente de Administraci6n, Monitoreo y Evaluaci6n

La administraci6n del proyecto fue coordinada por la Unidad Coordinadora de Proyecto UCP. Esta unidadfue responsable de monitorear los proyectos por la SEP, FHIS, PFC y UMCE. A cada Componente delProyecto fue asignado un coordinador y un responsable por subcomponente.

La UCP tuvo la responsabilidad de: la preparaci6n de planes de ejecuci6n, la preparaci6n de los informesde ejecuci6n, el procesamiento de la documentaci6n para el desembolso del Credito de y otros fondos delProyecto, asi como la adquisici6n de bienes y servicios, la ejecuci6n de las tareas de adquisici6n, elmantenimiento de registros y cuentas separadas, el manejo de los fondos del Proyecto y el monitoreo de laejecuci6n y la evaluaci6n de impacto del Proyecto.

Despues de la evaluaci6n de medio termino, en lo que corresponde al anio 2000, las actividades deseguimiento y monitoreo y la aplicaci6n de las recomendaciones de la evaluaci6n se mejoraron en aspectosde la generaci6n de informaci6n para la toma de decisiones.

Los logros del subcomponente son los siguientes:

* Se desarrollo e implement6 un sistema de contabilidad completo que pernite la definici6n de lascuentas contables, asi como las categorias de gasto, para completar la nomenclatura contable,asociadas a los componentes del proyecto. Con este sistema se puede tener el control de la informaci6nfinanciera, por ano y subcomponente.

* Se realiz6 la evaluaci6n de impacto del PROMEB.

B. En los componentes con el financiamiento de KfW se identificaron los siguientes logros:

a. El subcomponente de Textos y Materiales Didicticos

* Se revisaron los libros de la serie "Mi Honduras", del proyecto Mejoramiento de la Eficiencia de laEducaci6n Primaria financiado con prestamo de USAID para hacer cambios sustanciales en loscontenidos y publicar los textos revisados.

* Se actualizaron los libros de "Escuela MorazAnica", que luego fueron puestos en cuadernillos deimpresi6n separada (fasciculos), para facilitar su utilizaci6n. Se trabajaron los libros de 3ro, 4to, 5to y6to grados de primaria y se produjeron los fasciculos correspondientes, alcanzando la cantidad de7,270,000 para los 6 grados de educaci6n primaria y en el afio 2001 se distribuyeron 6,300,000fasciculos.

* Se hizo una reproducci6n y distribuci6n de 126,000 libros (de 38 titulos distintos) para un total de1,410 bibliotecas integradas de aula en escuelas unidocentes y bidocentes para 16 Departamentos.

* Se hizo una reproducci6n y distribuci6n de 21,119 libros para un total de 500 bibliotecas integradas deaula para el nivel parvulario, para 16 Departamentos.

* Se distribuyeron 27,880 paquetes de materiales para estudiantes de los CCIEs.

b. El subcomponente de Infraestructura

El FHIS fue el responsable del cumplimiento de las metas de este subcomponente. Los logros son lossiguientes:

- 25 -

* Se disefio, ejecut6 y public6 un censo nacional de maestros, personal administrativo, materiales,matricula e infraestructura para los niveles de educaci6n preescolar, primaria y media. Este censoescolar tuvo como referencia el censo escolar de 1995, el cual posibilita una comparaci6n deresultados, especialmente el crecimiento tenido por el sistema educativo.

* Se construyeron 146 aulas conforme a normas tecnicas y de localizaci6n establecidas por la secretariade Educaci6n con fmanciamiento de KfW, con la participaci6n de miembros de la comunidad.

* Se equiparon 290 escuelas unidocentes con mobiliario escolar, y se entreg6 a escuelas de PROHECO,15,756 pupitres, 10,083 catedras y sillas para las escuelas de primaria y 2,526 catedras, sillas ypupitres para el nivel parvulario.

* Se firmaron los convenios con la Asociaci6n de Municipios de Honduras para el mantenimiento de lasaulas.

* Se asignaron maestros de primaria a las escuelas nuevas, por parte de la SE.* Se crearon 4,500 nuevos CCIEs, donde se entregaron 14,127 paquetes de materiales didActicos y

juguetes didActicos para la atenci6n de 1,923 jardines.

IV. Desempeino de las Entidades Prestatarias

Banco Mundial - Tal como lo manifiesta la Firma PKF Worldwide que efectu6 la Evaluaci6n de Impacto,El Banco Mundial si acompano tecnicamente el Proyecto y fue muy critico en varios momentos." lo cual se

reconoce por parte del PROMEB, por cuanto existe la evidencia en las recomendaciones plasmadas en lasAyudas Memorias de las diferentes misiones de evaluaci6n realizadas. No obstante, en la fase final deejecuci6n se ha mejorado la comunicaci6n e implementaci6n de medidas recomendadas, especialmente en loreferente a justificaci6n de fondos y no objeciones a los procesos de adquisici6n y contrataciones, lo cualpodria dar elementos para inferir que anteriormente el planteamiento de solicitudes de desembolsos y noobjeciones no haya sido efectuado adecuadamente, posiblemente por falta de una capacitaci6n adecuada ycontinua por parte del Banco.

KfW - Como es del conocimiento, la mayoria de la ejecuci6n financiera de KfW se canaliz6 a traves delFHIS, responsable de la contrataci6n y supervisi6n de la construcci6n de aulas y edificios para lasDirecciones Departamentales. Hay que decir que estas operaciones no fueron canalizadas a traves de laUCP del PROMEB, posiblemente porque al inicio de las actividades no hubo participaci6n efectiva para elseguimiento, dotaci6n de recursos y localizaciones de las construcciones papel que fue asumido por GTZen cumplimiento a un convenio suscrito con KfW con autorizaci6n de la SEP. GTZ asumi6 un papelparalelo a la UCP, de tal forma que desembolsos y contrataciones se canalizaban sin tomar en cuenta a laUCP.

V. Perspectivas de Sostenibilidad

Con respecto a la sostenibilidad tecnica, los procesos de caracter tecnico iniciados y/o fortalecidos en elmarco del PROMEB continuan vigentes en el desarrollo de las actividades cotidianas de la SEP, talescomo: espacios de analisis para el estudio y mejoramiento de la calidad de la educaci6n, y socializaci6n dela evaluaci6n de pruebas aplicadas al rendimiento academico de los educandos en los niveles de preescolary primaria.

Con respecto a la sostenibilidad financiera, en el marco del PROMEB se identificaron programaseducativos y proyectos que contribuyeron a la obtenci6n de financiamientos no oficiales para llevarbeneficios a poblaciones no atendidas u otras que mejoraron el nivel de calidad de la atenci6n. AdemAs,con la aprobaci6n de un nuevo credito fmanciado por la AIF, se garantiza la continuidad de accionesimportantes iniciadas con financiamiento del PROMEB. Finalmente, la desconcentraci6n en el manejo del

- 26 -

presupuesto asignado a las diferentes Direcciones Departamentales ha permitido una mejor gesti6nadministrativa, que se evidencia en aspectos de reducir tiempos en los procesos de adquisici6n ycontrataci6n y consecuentemente ejecutar oportunamente las acciones de apoyo logistico de la educaci6n.

Con respecto a la sostenibilidad social, los programas de incentivos iniciados basicamente a traves deProgramas Educativos de Gesti6n Comunitaria han demostrado su efectividad en la ampliaci6n decobertura, asistencia efectiva de los maestros y a la vez tiene a incrementar el compromiso de los padres defamilia en otros aspectos de la vida escolar. Las actividades desarrolladas en el marco de la EIB hancontribuido a mejorar la atenci6n en los aspectos educativos y culturales de las etnias mayoritarias del pais.AdemAs, el incremento de la infraestructura fisica de los centros educativos, asi como el incremento de lasplazas de docentes, ha significado el mejoramiento de los indices de cobertura y calidad de la educaci6n.

Con respecto a la sostenibilidad institucional, desde el logro de la institucionalizaci6n del PROMEB, sepodria decir que los componentes del mismo estuvieron ligados a la estrategia de mejoramiento del sistemaeducativo. El proceso de descentralizaci6n de las atribuciones y recursos de la SEP iniciado y financiadopor el PROMEB han alcanzado aceptables niveles de consolidaci6n a nivel tecnico, administrativo yfinanciero. AdemAs, se generaron espacios de consulta con la sociedad civil de la Repuiblica para laconcertaci6n en el Foro Nacional de Convergencia, de la Estrategia Nacional de Educaci6n. Finalmente,con la modernizaci6n de las unidades de administraci6n de los recursos humanos docentes y no docentes, laSEP ha mejorado la administraci6n del personal.

VI. Lecciones Aprendidas

1. Considerando las modificaciones que se tuvieron en la vida del proyecto, la evaluaci6n de losindicadores de desempeno muestran que se cumplieron la mayoria de actividades de los componentes,cuantitativamente hablando.

2. Los principales obstAculos encontrados en el logro de los objetivos de los componentes fueron: laausencia de liderazgo en la direcci6n de PROMIEB y en la misma SEP, la falta de seguimiento a lasobservaciones y recomendaciones hechas por misiones del Banco Mundial, el continuo cambio deautoridades en los niveles del PROMEB, entre otros.

3. El Programa de Formaci6n Continua de la UPN ha sido muy exitoso, sobre todo por haberdesarrollado un curriculum que procur6 la formaci6n de las competencias profesionales que losdocentes requieren para realizar una prActica pedag6gica de calidad. Un beneficio importante para losdocentes fue que despues de cursar y aprobar el plan de estudios del PFC, los docentes participantesobtuvieron el titulo de la carrera tecnico universitario de Educaci6n basica (primero y segundo ciclo) enel grado asociado.

4. La creaci6n y funcionamiento de la UMCE ha generado una valiosa capacidad tecnica en laconstrucci6n, administraci6n y procesamiento de pruebas estandarizadas a nivel nacional, lo que hapermitido, en forma cientifica, obtener informaci6n acerca de los resultados del proceso educativo y losfactores externos e intemos que afectan al mismo.

5. La construcci6n de aulas en las escuelas rurales sobre pobladas, el convenio con las comunidadeslocales para su mantenimiento y la posterior contrataci6n de maestros capacitados para esas escuelasprimarias es un logro para el acceso con equidad de los ninos en las areas rurales mas pobres deHonduras.

6. El desarrollo de un sistema de control contable estandarizado completo permite la definici6n de lascuentas contables, asi como las categorias de gasto, para completar la nomenclatura contable,asociadas a los componentes y subcomponentes de cualquier proyecto.

7. Las escuelas de PROHECO son parte de un proyecto exitoso que sigue funcionando y se vislumbraque este proyecto seguirA creciendo porque satisface las necesidades educativas bAsicas de las

- 27 -

comunidades rurales mas pobres debido en parte a una mayor participaci6n comunitaria tanto en laadministraci6n de sus recursos y la contrataci6n de los maestros, por otra parte porque los ninos tienenuna escuela mas cerca.

(b) Cofinanciers:A draft of the ICR was circulated to KfW, the Project's co-financing agency. ICR authors met and discusswith KFW representatives the preparation of the document. No further comments from KFW have beenreceived by the time of ICR publication.

(c) Other partners (NGOs/private sector):National Pedagogical University (UPNFM) and Parental Organization Rural Parent-School Organizations.Positive comments received on the final outcomes of project implementation.

10. Additional Information

N/A

-28 -

Annex 1. Key Performance Indicators/Log Frame Matrix

Outcome/lmpact Indicators:

(a) Education Quality: Standardized Student Achievement Tests Results in Primary Schools (% ofcorrect answers)

Test 1997 2000Spanish - Grade 3 40 41

Mathematics - Grade 3 36 43Spanish - Grade 6 46 46Mathematics - Grade 6 35 39

(b) School Efficiency: Increased (net) Enrollments and Completion and Reduced Dropout and RepetitionRates.

Impact Primary Education (Grades 1-6)Indicators. Percentage

Baseline 1995 1997 1998 1999 2000Net Enrollment Rates 80 86.4 89.1 89.0 89.8 na

(1992)Completion Rate 33.5 na na 43.0 na 67.0

(1992)Dropout Rate NA n.a 9.53 na na 3.0Repetition Rate 28.0 n.a 9.4 9.6 9.2 8.0

(1988)

Source: Ministry of Education of Honduras, Tegucigalpa: January 2002.2000 completion percentage data from World Education For All Study: April, 2002.

- 29 -

(c) Institutional Efficiency: Improved delivery of Education Services (to Rural Areas) and ReducedCentral Administrative Costs.

Indicator 1999 2000 2001Number of New Rural Schools 506 820 1,020(hard-to-reach communities)Net Student Enrollment (grades 1-6) 22,361 39,540 42,842Average Repetition Rate (%) 18.4 10.8 9.2Number of Rural Teachers 648 1,109 1338(hard-to-reach communities)Organized Parental Committees 645 1,179 1284Parents Directly Involved in School 3,858 6,528 7,100ManagementSource Secretana de Educaci6n; Pryecto Hondureno de Educaci6n Communitana: PROHECO (Tegucigalpa). January 2002.

| Impact Indicator 1996 1997 1998 1999 2000 2001Reduced MOE 3.96 3.48 3.96 2.10 2.75 2.12Administrative CostsSource: Govemment of Honduras. MOE Planning Department. 2002.

- 30 -

Output Indicators:

Indicator Target Actual/LatestEstimate

A.1 Teacher Training ProgramTraining for trainers 2,644 2,644Multigrade Primary teachers 53,500 44,608Other primary teachers 44,000 27,000Preschool teachers 5,600 2,800School principals 12,500 1,168School supervisors 2,498 1,765Normal School professors 120 120CCLE volunteers 15,700 15,700CAD training projects 250 0

A.2 Textbooks and Didactic MaterialsTextbooks Grade 1 1.2 M 1.1 MTextbooks Grade 2 1.1 M 1.0 MTextbooks Grade 3 0.9 M 1.6 MTextbooks Grade 4 0.8 M 1.7 MTextbooks Grade 5 0.2 M 3.2 MTextbooks Grade 6 0.1 M 3.1 MPrimary classroom libraries 19,300 3,770Preschool libraries 750 500Packages of student's materials 16,800 18,357CCIE materials 15,700 27,880Packages of Preschool toys 790 1,923

A.3 Bilingual and Intercultural EducationNormalization of Miskito and Garifuna Languages Study completedMiskito and Garifuna curriculum Curriculum completedLinguistic, anthropological, historical Aspects of 4 Study 8 languages

languages completedMiskito and Garifuna teacher training curriculum Curriculum CompletedDidactic Materials Grades 1 and 2 for Miskito and Distribution Miskito only

GarifunaTraining bilingual teacher & supervisors 12 12Training Normal school professors I IDesign academic achievement tests 1 0Apply academic achievement tests 4 0

A.4 External EvaluationApplication of achievement tests Grades 2-6 5 8

A.5 Infrastructure ImprovementsNew classrooms build 290 146Furniture for classrooms 290 290School maintenance agreements signed 290 290Teachers appointed 290 0CCIE new progrms 1,200 2,508

B. Institutional StrengtheningB.1 MOE Reorganization & Decentralization

Reorganization action plan Plan Completed

- 31 -

Implementation of reorganization 3 stage process CompletedReorganization evaluation Study CompletedReform of employment and salary regime Progress IncompleteAdministrative functional decentralization Progress CompletedConstruction of new Departmental Offices 13 12 1/Rehabilitation of Departmental Offices 5 5Equipment for Departmental Offices 18 18Supervisors appointed 225 138Staff trained 13 13Design of MIS system Design CompletedMIS annual reports and bulletin 10 5

B.2 Teacher Improvement ProgramTeacher performance assessment criteria Criteria CompletedDistribution of school calendars (years) 5 5Payment of teacher incentives (cumulative) 3,000 1,737Students enrolled in PROHECO schools 15,000 42,842PROHECO schools 500 1,020PROHECO teachers trained 500 1,070PROHECO parents trained 3,000 5,700PROHECO parents organizations 500 1,020

B.3 Project Administration, Monitoring & Evaluation

Use of textbooks Study CompletedCurriculum reform Study IncompleteSchool performance Study Incomplete 2/Community participation Study Incomplete 2/Teacher performance improvement program Study CompletedImpact of the CADs Study CompletedImpact of the CCIEs Study CompletedImpact of bilingual education Study Completed

C. Emergency Subprojects _

School rehabilitation 18 181/ One departmental office is still being built.2/ An in-depth analysis ofthe PROHECO schools is being carried out by Columbia University and can be

consulted separately.

- 32 -

Annex 2. Project Costs and Financing

Project Cost by Component (in US$ million equivalent)Apprais'al ActualULatest - Percentage ofEstimate Estimate, Appraisal

Project CostoBy omponent US$ milon -US million',A. Improving the Quality of Basic EducationA. 1 Training of Teachers, Principals and Supervisors 2.30 1.41 61.2A.2 Textbooks and Didactic Materials 23.20 14.30 61.6A.3 Bilingual Education 1.60 0.22 13.8A.4 External Evaluation 1.30 1.53 115.1A.5 Infrastructure Improvements 6.90 7.36 106.7B. Institutional StrengtheningB.1 Reorganization and Decentralization of the MOE 10.30 6.30 50.8B.2 Teachers' Performnance Improvement Program 1.50 11.32 690B.3 Project Administration, Monitoring and Evaluation 2.10 6.98 424C. Emergency Subprojects 0.00 1.10Government Undisbursed 1.48IDA Undisbursed 1.10

Total Baseline Cost 49.20 53.10Physical Contingencies 1.20Price Contingencies 2.70

Total Project Costs 53.10 53.10Total Financing Required 53.10 53.10

The major changes in original and project-end financial allocations were perceived in three key areas:

First, the Bilingual Education program only utilized he resources allocated to the macro reforns inthe sector (15% of the subcomponent budget), including support for the normalization of indigenouslanguages and the design of dictionaries and grammars. Resources for school level inputs (85% of thesubcomponent budget) were not utilized (as explained in section 4.2).

Second, additional funds were required for the restructured Subcomponent B.2, The TeachersPerformance Improvement Program, which financed the implementation of the School-Based Managementand Community Participation program (PROHECO). Within the restructured program, communitiesidentified, plan, procured and managed directly school resources, including nondurable educationalmaterials and other classroom complementary inputs. Thus, resources from Subcomponent A.2(Textbooks and Didactic Materials) were reallocated to Subcomponent B.2.

Third, increased financial resources were required for Project Administration (Subcomponent B.3)after Hurricane Mitch, both to support the emergency and reconstruction plan of the education sector (towhich this project contributed through a credit amendment) and also to guarantee that the project recoveredits rate of execution and achieved its implementation and development objectives, including a completemonitoring and evaluation strategy. Also, in retrospect, the project design budget only allocated 4% of totalproject costs for administration, monitoring and evaluation; which may have been grossly under-estimated.

- 33 -

Project Costs by Procurem nt Arrangements (Appraisal Estimate) (US$ million equivalent) .

Procurement MethodExpenditure Category ICB 2 N.B.F. Total Cost

NCB thr2

1. Works 0.00 0.00 0.00 5.77 5.77(0.00) (0.00) (0.00) (0.00) (0.00)

2. Goods 18.38 1.38 0.90 7.53 28.19(13.93) (0.91) (0.71) (0.00) (15.55)

3. Services 0.00 0.00 7.49 0.00 7.49(0.00) (0.00) (7.49) (0.00) (7.49)

4. Operating Costs 0.00 0.00 11.65 0.00 11.65(0.00) (0.00) (6.96) (0.00) (6.96)

Total 18.38 1.38 20.04 13.30 53.10(13.93) (0.91) (15.16) (0.00) (30.00)

Project Costs by Procurement Arrangements (ActuallLatest Estimate) (US$ million equivalent)

Procurement Method".Expenditure Category .ICB. NCB .''Other2 Totil Cost

1. Works 0.00 0.00 0.00 7.36 7.36(0.00) (0.00) (0.00) (0.00) (0.00)

2. Goods 6.30 2.56 1.38 6.20 16.44(6.30) (2.56) (1.05) (0.00) (9.91)

3. Services 0.00 0.00 7.14 0.23 7.37(0.00) (0.00) (6.69) (0.00) (6.69)

4. Operating Costs 0.00 0.00 19.35 0.00 19.35(0.00) (0.00) (12.30) (0.00) (12.30)

Total 6.30 2.56 27.87 13.79 50.52(6.30) (2.56) (20.04) (0.00) (28.90)

Note: The actual total project cost of US$50.52 million, is based on calculations of US$2.58 million undisbursedfunds from the total cost of US$53.1 million estimated at appraisal. Total IDA credit cost of US$28.9 millionequivalent is based on calculations of US$1.1 million undisbursed at the credit closing date.Note: Operating Costs Include Financing of Subcomponent B.2, (Teachers' Performance Improvement Program,PROHECO). To guarantee transition to regular MOE operations, PROHECO's financial resources from the IDAcredit were considered "operating costs" and financed on a declining basis and, thus, be incorporated fully byproject-end into the regular Goverment budget.

"Figures in parenthesis are the amounts to be financed by the IDA Credit. All costs include contingencies.

D Includes civil works and goods to be procured through national shopping, consulting services, services of contracted staffof the project management office, training, technical assistance services, and incremental operating costs related to (i)managing the project, and (ii) re-lending project funds to local government units.

- 34 -

Project Financing by Component (in US$ million equivalent)-;n srL L ; 'S ''' ' z ; ss ,, ' 9 s S.; U;s 1 ; a ,, _ Percentage of Appraisal

TxtCos7�ni�mponent :- : Appraisal Est ate ActuallLatest Estimate-________ _ IA Govt. , oF! -DA Govt F. i. DA Govt CoF.A. Improving the Quality 16.10 5.90 13.30 10.32 1.20 13.30 64.1 20.3 100.0of Basic Education

B. Institutional 10.00 3.90 0.00 17.48 7.12 0.00 174.8 182.6 0.0StrengtheningC. Emergency Subprojects 0.00 0.00 0.00 1.10 0.00 0.00 0.0 0.0 0.0Contingencies 3.90 0.00 0.00 0.0 0.0 0.0Total 1/ 30.00 9.80 13.30 28.90 8.32 13.30 96.3 84.9 100.0Undisbursed Funds (at 1.10 1.48Credit Closing)

1/ Appraisal Estimates have been reconstmrted, since the SAR specified financing by disbursement accounts, not by component. See SAR, Annex 13,Table 7, page 96.

2/Some KFW funds have not been disbursed; however their financing line for this Project is still opened and its expected I 00/o of funds will be used.

- 35 -

Annex 3. Economic Costs and Benefits

1. Economic Analysis

The original economic analysis (SAR, Annex 17) estimated the benefits of the Project as including (a) anincrease in the future earning power of students who received a basic education of higher quality; (b) areduction in the fiscal cost of delivering public education as the rate of repetition and dropout are reduced;and (c) a reduction in the fiscal cost of delivering public education resulting from the decentralization ofeducation services and the reorganization of the MOE. The original analysis also indicated that the projectwould generate distributional gains as a result of its focus on improving the education of low income andrural students.

The benefits of increased earning power of students exposed to the project was estimated at Appraisalbased on 6,902 individual earners observations from the Honduras national household survey for the year1992. Based on these data, "mincerian" earning functions were estimated for three socioeconomic groups:workers within the lowest three declines (62%), workers within the intermediate four deciles (32%), andworkers in the three top deciles of the income distribution (6%). These functions were used to estimate thefuture flow of income of a student from the low-income group and for the middle-income group. Assumingonly project benefits pertaining to students from the low-income group, two academic achievementscenarios were adopted: (i) the project would enable students to increase their future earning power by 10percent of the existing earning differential between low and middle-income groups; and (ii) the projectwould only enable students to increase their future earning power by only 5 percent of the existingdifferential. With regard to project costs, two scenarios were considered. The first scenario consideredonly the costs of the component A, Improving the Quality of Basic Education net of bilingual education,while the second scenario considered total project costs.

Based on these assumptions, the estimated internal rate of return of the Project at Appraisal is shown inTable 1 below.

Table 1. Estimated Internal Rate of Return at Appraisal

Improvement of Income Earning Considering Costs of:Power -Quality of Education Component Total Project Costs

With 10% of income differential 20.78% 18.13%With 5% of income differential 16.18% 13.82%

Although trends in primary education attainment observed during the 1995-200 period, especially lowerrepetition rates and higher primary education completion rates are widely believed to be closely associatedwith improvements in education quality, the appraisal economic analysis could not be replicated becausethe assumed improvements in the quality of education could not be directly measured. Instead, aneconomic analysis of the PROHECO program was carried out, and benefits were estimated based on theadditional years of education attained by PROHECO students, compared with data from the Hondurashousehold survey for the year 1999. Results are presented in Table 2.

- 36 -

Table 2. Average Yearly Income of Employed and Self-Employed Individuals by Age group and Level ofEducation

Yearly Income by Years fP'riinary Education Completed 'Difference 6 v.0A- " ge -, c t S (Lempira of-1999)

- .- ¢ .- h -- .0, ,^M l,-2 x < 3-5- <. . 6 -_ __.. :. ._- ._10-14 5,315 4,915 6,209 7,744 4615-19 8,992 10,142 9,446 11,615 2920-24 9,456 12,744 13,976 16,960 7925-29 12,421 15,936 13,073 17,972 4530-34 11,615 18,055 16,442 21,052 8135-39 11,047 15,136 18,401 23,438 11240-44 12,078 19,244 19,949 25,211 10945-49 11,635 16,879 24,322 26,317 12650-54 12,539 19,739 21,158 31,250 14955-59 10,050 18,763 24,420 28,244 18160-64 8,330 12,443 14,918 19,684 136Total 10,948 15,827 16,536 19,062 74

The internal rate of return of the PROHECO program (Table 3) is estimated based on the projectedincrease in earnings of the students, the real efficiency factors reported in PROHECO schools, and the realcosts of the program.

Table 3. Internal Rate of Return of the PROHECO program (Lempiras 2001)

,aniingss wit hout , Earning withAge Cohort PROHECO :Cost of PROHECO, PROHECO -Net Benefits

.___.'__ *~,,-,,, , ''(A.),- -: ., , ;':':'@)' ' | < | t (C)., (C-A-'B)7 0 315,872 0 -315,8728 13,184 40,406 1,281 -52,3099 17,195 37,302 2,816 -51,68210 159,444 35,756 27,536 -167,66411 159,444 34,998 35,105 -159,33712 159,444 33,043 42,101 -150,38613 159,444 -205,761 47,878 94,194

55-59 '301,500 0 758,533 457,03360-65 301,500 0 758,533 457,033

IRR Discount Rate: NPV11.0% 12% (1.96,678.53)

10% 117,4755% 1,812,9644% 2,650,118

As suggested in the original econonic analysis, the project appears to have generated significantdistributional gains as a result of its focus on improving the education of low income and rural students.

- 37 -

Table 4 shows that the average number of years of schooling for children in the bottom quintile of theincome distribution rose from 3.7 in 1989 to 4.6 in 1999; and the proportion of the poor who graduatedfrom primary school increased from 40% in 1989 to 52% in 1999.

Table 4. Trends in Primary Education Attainment 1989-1999

Average primary education years completed by Percent 'ith primary education completedCohort quintile :yquinti]e

1 2- 3 |5 Total 2 3 4 5 Total1989 3.7 4.2 4.6 5.3 5.5 4.7 50 63 77 86 621994 4.4 4.5 4.8 5.3 5.7 5.0 65 66 83 88 711999 4.6 4.8 5.2 5.5 5.6 5.1 63 71 81 87 70

Source: EPHPM, March 1999.

2. Fiscal Analysis

The SAR estimated the fiscal savings to the Honduran education system as a result of the Project based onthe estimated reduction in dropout and repetition rates. Table 5 summarizes the Appraisal analysiscompared with the actual primary education repetition rates for the period 1990-2000, indicating thenumber of repeaters and the estimated cost of this inefficiency.

Table 5. Savings due to reduced primary education repetition rates

Repetition Rate (%) No. Repeaters Estimated Savings.per. ~ ~ .- . . --_____ jyer:(US$)-1,

Year SAR Estimates SAR EstimatesWithout With Actual Without With -Actual SAR Actualproject project project project . _._._.

1990 13.4 118,9341991 11.9 107.6511992 11.3 108,4951993 11.9 117,8431994 12.4 125,0661995 20.5 14.5 12.4 246,028 154,121 124,924 10,953,506 01996 20.0 13.5 10.9 247,750 145,295 112,099 12,210,659 1,890,4111997 19.2 12.5 10.3 243,166 136,239 .108,496 12,743,553 2,644,5221998 18.4 11.7 10.5 236,419 127,223 112,590 13,013,898 2,348,6411999 17.7 10.9 10.1 228,757 109,526 109,526 13,142,497 2,909,9832000 17.0 10.2 10.0 220,815 110,362 111,984 13,163,807 3,268,791

Total 75,227,92013,062,3481/ Estimated at USSI 19.18 per student per year.Source: Educacion en Cifras 1990-1999 for actual figures Enrollment and repetition rates are extrapolated for the year 2000 based on the 1990-99senes The re-estimation of repetition rates uses 6 year cohort to be consisted with the SAR estimates

As Table 5 shows, the SAR fiscal analysis was overly optimistic, basically for two reasons. First,enrollment rates did not increase as expected, reaching only 55% of the projected SAR figures. Second,although actual repetition rates are even lower than expected, the corresponding cost savings weresignificantly lower. Nevertheless, if one attributes to the project all of the savings associated with thereduction in repetition rates during the 1995-2000 period -- which may be overestimating the impact of theproject --, the aggregate value of the savings totals US$13.1 million, equivalent to 17% of the SARestimate.

- 38 -

Annex 4. Bank Inputs

(a) Missions:Stage of Project Cycle No. of Persons and Specialty Perforrnance Rating

(e.g. 2 Economists, I FMS, etc.) Implementation DevelopmentMonth/Year Count Specialty Progress Objective

Identification/Preparation08/01/1995 Education Education Specialist, Consultants

Specialist,Consultants

Supervision09/01/1995 1 Task Manager S S03/23/1996 4 Task Manager, Economist, HS S

Educator, Financial Analyst09/30/1996 1 Education Specialist S S12/05/1996 3 Sr. Operations Officer, Education S U

Specialist, ProcurementSpecialist

07/10/1997 1 Sr. Education Officer S S11/28/1997 5 Team Leader, Procurement S S

Specialist, Financial Specialist,Social Scientist, Bidding Analyst

03/19/1998 5 Team Leader, Procurement S SSpecialist, Financial Specialist,Accounting Specialist, SocialScientist

06/03/1998 1 Team Leader S S08/10/1998 3 Task Manager, Operations

Specialist, Team Leader10/09/1998 4 Team Leader, Procurement S U

Analyst, Financial Analyst,Monitor/Evaluation Consultant

04/27/1999 7 Team Leader, Consultant, S UGeneral Educator, ProcurementSpecialist

06/13/1999 4 Team Leader, Social Scientists, S SEducation Sector Management

09/22/2000 2 Institutional Development S SSpecialist

09/22/2000 3 Task Manager, Consultant, S SEducation Specialist

ICRJanuary 2002 13 Sr. Institutional

Development Specialist,Consultants

February 2002 4 Sr. Institutional Development S SSpecialist, Consultants

(b) Staff:

Stage of Project Cycle Actual/Latest Estimate

- 39 -

No. Staff weeks US$ ('000)Identification/Preparation na 162.73Supervision na 475.74ICR na 54.24Total na 692.71

1/ The number of staff weeks is not recorded in the historical budget system. ICR figures are estimated, as thehistorical budget system does not distinguish between supervision and ICR expenditures.

- 40 -

Annex 5. Ratings for Achievement of Objectives/Outputs of Components

(H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable)

RatingO Macro policies O H OSUOM O N * NAD Sector Policies O H *SUOM O N O NAI Physical O H *SUOM O N O NAO Financial O H OSUOM O N O NAO Institutional Development 0 H 0 SU O M 0 N 0 NAO Environmental O H OSUOM O N * NA

Social5 Poverty Reduction O H * SU O M O N O NAO Gender OH OSUOM ON *NAL Other (Please specify) O H OSUOM O N * NA

LI Private sector development 0 H O SU O M 0 N 0 NAOI Public sector management 0 H 0 SU O M 0 N 0 NAOI Other (Please specify) O H OSUOM O N * NA

- 41 -

Annex 6. Ratings of Bank and Borrower Performance

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory)

6.1 Bankperformance Rating

OI Lending OHS OS OU OHUOI Supervision OHS OS OU OHUEl Overall OHS OS OU O HU

6.2 Borrower performance Rating

L Preparation OHS OS O U O HUO Government implementation performance O HS OS O U 0 HULI Implementation agency performance OHS OS OU O HUO Overall OHS OS 0 U O HU

- 42 -

Annex 7. List of Supporting Documents

Preparation and Appraisal Documents

World Bank, Staff Appraisal Report, Honduras: Basic Education Project, March 8, 1995.

World Bank, Project Appraisal Document, Honduras: Basic Education Project, November 1999.

World Bank, Informe de Evaluaci6n Inicial, Honduras: Proyecto Escuela Morazanica, March 1995.

Mid-Term Evaluation Documents

Reyes, Joel and Darlyn Meza. Informe de Resultados: Evaluaci6n de Medio Termino (November 7-13,1999). World Bank, Washington, DC, December 1999.

Project Closing and Evaluation of Impact Documents

Carvajal, Mireya, Informe inicial de los Centros Comunitarios CCIE 199X-2000, February 2002.

ESA Consultores, Ex-post economic evaluation. Honduras Basic Education Project, Tegucigalpa,Honduras, March 2002.

Grasser, Klaus. Reporte de actualizacion de los dos componentes constructivos al final del aiio 2001:Construcci6n de aulas y construcci6n de Direcciones Departamentales de Educaci6n. January 2002.

IN[CE, Lineamientos para producci6n de materiales de capacitaci6n. Tegucigalpa, Honduras, 1996.

INICE, INICE: diseiio de seguimiento y monitoreo al proceso de formaci6n de docentes en educacionBasica en servicio, a nivel nacional, 1999.

Landivar, Wilma, Informe de Consultaria: Propuesta de una estrategia para capacitar docentes en lautilizaci6n de textos. September 1999.

Mimbrefio, Juan Sim6n, INFORME Final del Componente Mejoramiento de la calidad de la Educaci6n.December 7, 2000.

PKF Worldwide, Evaluacion de Impacto del Proyecto de Mejoramiento de la Educaci6n Basica, Fairfax,VA, January 2002.

PROMEB. Plan de Acci6n Octubre de 1999 a Diciembre 2000, Secretaria de Educaci6n Publica de laRepliblica de Honduras, Tegucigalpa, Honduras, November 1999.

PROMEB. Informe Final de Actividades a Diciembre 2000, Secretaria de Educaci6n Publica de laRepuiblica de Honduras, Tegucigalpa, Honduras, October 2001.

PROMEB, Lista final de titulos para bibliotecas de Aula Financiadas por la Cooperaci6n Alemana,

- 43 -

KfW/GTZ. Secretaria de Educaci6n Puiblica de la Rep6blica de Honduras, Tegucigalpa, Honduras,November 2000.

PROMEB, Informe Final de Ejecuci6n Fisica y Financiera al 31 de diciembre del 2001. Ministry ofEducation, Tegucigalpa, Honduras, February 2002.

PROMEB, Informe Final 1996-2000 Componente Mejoramiento de la Calidad de la EducacionReputblica de Honduras, Secretaria de Educaci6n Publica de la Repuiblica de Honduras Tegucigalpa,Honduras, December 2000.

PROMEB, Informe PROMEB evaluacion de Medio Termino, Secretaria de Educaci6n Publica de laRep6blica de Honduras Tegucigalpa, Honduras, November 1999.

PROMEB, Informe de ejecuci6n del Plan Operativo Tercer Trimestre de 1997, Secretaria de Educaci6nPublica de la Republica de Honduras Tegucigalpa, Honduras, Noviembre 1997.

PROMEB, Informe de Revisi6n Anual 1996. Secretaria de Educaci6n P[iblica de la Repuiblica deHonduras Tegucigalpa, Honduras, April 1997.

Secretaria de Educaci6n Publica de la Republica de Honduras, Plan de los cien dias, Tegucigalpa,Honduras, November 1998.

Secretaria de Educaci6n Publica de la Republica de Honduras, Directrices para Reorganizaci6n de laSecretaria de Educacion Publicay Mordenizacion de su gerencia, Tegucigalpa, Honduras, June 1996.

Secretaria de Educaci6n Piblica de la Repuiblica de Honduras, La UMCE y sus comienzos; Tegucigalpa,Honduras, September 2001.

Secretaria de Educaci6n Publica de la Republica de Honduras, El Programa deformaci6n continua. Unaexperiencia alentadora. Tegucigalpa, Honduras, September 2001.

UPNFM. Informe del PFC. December 1998.

Documents prepared by UMCE-UPNFM. Subcomponent A4. External Evaluation of StudentAcademic Achievement

UMCE, Rendimiento Global de Tercero y Sexto Grado en las asignaturas de Espaniol y Matemdticas,Universidad Pedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras, 2000.

UMCE, Rendimiento Academico de 2o, 3o, 4o y 5o Grado en las asignaturas de Espaiiol y Matematicas,Universidad Pedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras, 1999.

UMCE, Rendimiento en Espanol y matamaticas en los grados de: 2O, 3O, 4o y 6O Grado, UniversidadPedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras, 2000.

UMCE, Informe de Resultados del Rendimiento Acad6mico en Espaniol y Matemdticas de Tercero ySexto Grado, Universidad Pedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras, 1998.

- 44 -

UMCE, Rendimiento en Matemdticas de: 2o, 3o, 4o, y 6o Grado, Universidad Pedag6gical NacionalFrancisco Morazan, Tegucigalpa, Honduras, 1998.

UMCE, Rendimiento en Espanol degb 2o, 3o, 4o, y 6o Grado, Universidad Pedag6gical NacionalFrancisco Morazan, Tegucigalpa, Honduras, 1999.

UMCE, Rendimiento en Matemrticas de: 2o, 3o, 4o, y So Grado, Universidad Pedag6gical NacionalFrancisco Morazan, Tegucigalpa, Honduras, 1999.

UMCE, Rendimiento en Espanol de: 2o, 3o, 4o, y 5o Grado, Universidad Pedag6gical Nacional FranciscoMorazan, Tegucigalpa, Honduras, 2000.

UMCE, Rendimiento en Matematica de Tercero y Sexto Grado, Universidad Pedag6gical NacionalFrancisco Morazan, Tegucigalpa, Honduras, 2000.

UMCE, Rendimiento en Espanol de Tercero y Sexto Grado, Universidad Pedag6gical Nacional FranciscoMorazan, Tegucigalpa, Honduras, 1999.

UMCE, El Lenguaje Oral y Escrito en 2o, 3o, 4o, y 5o Grado de las escuelas primarias de Honduras,Universidad Pedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras, 1998.

UMCE, El Lenguaje Oral y Escrito en 2o y 4o Grado de la escuela primaria de Honduras, UniversidadPedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras, 1998.

UMCE, Factores Asociados al Rendimiento Academico en las asignaturas de Espanol y Matemdticas deTercero y Sexto Grado, Universidad Pedag6gical Nacional Francisco Morazan, Tegucigalpa, Honduras,1998.

UMCE, Informe de Patrones de Error en Matemdticas de Tercero y Sexto Grado, UniversidadPedag6gical Nacional Francisco MorazAn, Tegucigalpa, Honduras, 1998.

UMCE, Analisis Multivariado, Universidad Pedag6gical Nacional Francisco MorazAn, Tegucigalpa,Honduras, 1998.

UMCE, Resolucion de Problemas Matemdticos en Sexto Grado, Universidad Pedag6gical NacionalFrancisco Morazan, Tegucigalpa, Honduras, 1998.

UMCE, Informe Global del Rendimiento Academico 2o y 3o Grados. Proyecto Hondureno de Educaci6nComunitaria (PROHECO). Primera Evaluaci6n, 2000, Universidad Pedag6gical Nacional FranciscoMorazan, Tegucigalpa, Honduras, 2000.

UMCE, Estrategias Metodol6gicas para el Aprendizaje de Espanol y Matematica en la Escuela PrimrariaUniversidad Pedag6gical Nacional Francisco MorazAn, Tegucigalpa, Honduras, 1997.

- 45 -

- 46 -

IMAGING

Report No.: 24048Type: lCR