OFFICIAL USE ONLY

IDA/R2017-0360/1

November 30, 2017

Closing Date: Tuesday, December 19, 2017

at 6:00 p.m.

FROM: Vice President and Corporate Secretary

Ethiopia - General Education Quality Improvement Program for Equity

Program Appraisal Document

Attached is the Program Appraisal Document regarding a proposed IDA grant to Ethiopia
for a General Education Quality Improvement Program for Equity (IDA/R2017-0360), which is
being processed on an absence-of-objection basis.

Distribution:
Executive Directors and Alternates
President
Bank Group Senior Management
Vice Presidents, Bank, IFC and MIGA
Directors and Department Heads, Bank, IFC and MIGA

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

FOR OFFICIAL USE ONLY

Report No: 121294-ET

PROGRAM APPRAISAL DOCUMENT

ON A
PROPOSED IDA GRANT
AND
MULTI-DONOR TRUST FUND GRANT

IN THE AMOUNT OF SDR 213,600,000

(US$300 MILLION EQUIVALENT IDA GRANT)
AND
US$140 MILLION EQUIVALENT MDTF GRANT
TO THE
FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
FOR THE
GENERAL EDUCATION QUALITY IMPROVEMENT PROGRAM FOR EQUITY (GEQIP-E)

Education Global Practice

Africa

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

(Exchange Rate Effective October 30, 2017)

Currency Unit = Ethiopian Birr (ETB)

ETB 27.08 = US$1
US$1.41 = SDR 1

FISCAL YEAR
July 8 – July 7

ABBREVIATIONS AND ACRONYMS

ABE Alternative Basic Education (Centre) AEA American Economic Association

ANFE Adult and Non-Formal Education AWPB Annual Work Plan and Budget
BD Bidding Document BoFED Bureau of Finance and Economic
Development
CAS Country Assistance Strategy CCA Continuous Classroom
Assessment
CDID Curriculum Development and COE Centers of Excellence
Implementation Directorate
COPCD Channel One Programs Coordination CPD Continuous Professional
Directorate Development
CPF Country Partnership Framework CPS Country Partnership Strategy
CSA Central Statistical Agency CTE College of Teacher Education
DFID Department for International DLI Disbursement Linked Indicator
Development (UK)
DLR Disbursement Linked Result DP Development Partner
EAC Ethics and Anti-Corruption ECCE Early Childhood Care and
Education
ECD Early Childhood Development EERBF Ethiopia Education Result Based
Financing
EGRA Early Grades Reading Assessment EMIS Education Management
Information System
ESAA Education Statistics Annual Abstract ESDP Education Sector Development
Program
ESIA Environmental and Social Impact ESMG Environmental and Social
Assessment Management Guideline
ESMP Environmental and Social ESMS Environmental and Social
Management Plan Management System
ESPES Enhancing Shared Prosperity through ESSA Environment and Social System
Equitable Services Assessment
ETB Ethiopian Birr EUR Euro

i
FEACC Federal Ethics and Anti-Corruption FGM/C Female Genital Mutilation and
Commission Cutting
FM Financial Management FMAP Fiduciary Management Action
Plan
FPPA Federal Public Procurement and FY Fiscal Year
Property Administration Agency
GBP British Pound/Pound Sterling GC Girls Club
GCO GEQIP Coordination Office GDP Gross Domestic Product
GEID General Education Inspection GEQIP General Education Quality
Directorate Improvement Program
GIR Gross Intake Ratio GER Gross Enrolment Ratio
GP Global Practice GPE Global Partnership for Education
GPI Gender Parity Index GRM Grievance Redress Mechanism
GRS Grievance Redress Services GTP Growth and Transformation Plan
HQ Head Quarter IA Implementing Agency
IBEX Integrated Budget and Expenditure IBRD International Bank for
Reconstruction and Development
ICB International Competitive Bidding ICT Information and Communication
Technology
IDA International Development IERC Inclusive Education Resource
Association Center
IFA Integrated Fiduciary Assessment IFAC International Federation of
Accountants
IFAE Integrated Functional Adult IFR Interim Financial Report
Education
IFSA Integrated Fiduciary Systems IMF International Monetary Fund
Assessment
INT Integrity Vice Presidency IPF Investment Project Financing
IR Intermediate Result IRI Intermediate Result Indicator
ISA International Standard of Auditing IT Information Technology
IVA Independent Verification Agency KPI Key Performance Indicator
KG Kindergarten LC Letter of Credit
LRD Licensing and Relicensing Directorate LSMS Living Standards Measurement
Study
LST Life Skill Training M&E Monitoring and Evaluation
MDTF Multi-Donor Trust Fund MELE Measure of Early Learning
Environment
MELQO Measuring Early Learning and MoE Ministry of Education
Quality Outcomes
MoFEC Ministry of Finance and Economic MOU Memorandum of Understanding
Cooperation
MSIC Mathematics and Science MTEF Mid-Term Expenditure
Improvement Center Framework
MTELDD Mother Tongue and English NCB National Competitive Bidding
Language Development Directorate

ii
NEAEA National Education Assessment and NER Net Enrollment Ratio
Examinations Agency
NIR Net Intake Ratio NLA National Learning Assessment
NOK Norwegian Kroner OFAG Office of the Federal Auditor
General
OPCS Operation Policy and Country PAD Program Appraisal Document
Services
PAP Program Action Plan PBS Protection of Basic Services
PCDP Pastoral Community Development PCH Public Compliant Handling
Program
PCHO Public Compliant Handling Offices PCO Program Coordination Office
PDO Project Development Objective PEFA Public Expenditure and Financial
Accountability
PFM Public Financial Management PforR Program-for-Results
PGDT Post Graduate Diploma in Teaching POM Program Operation Manual
PP Procurement Plan PPSD Project Procurement Strategy for
Development
PRMD Planning and Resource Mobilization PSC Program Steering Committee
Directorate
PSTA Parents, Students and Teachers PTA Parents and Teachers Association
Association
QA Quality Assurance QE Quality Enhancement
QEAP Quality Enhancement and Assurance RA Result Area
Program
RBF Result Based Financing RCT Randomized Controlled Trials
REACC Regional Ethics and Anti-Corruption REB Regional Education Bureau
Commission
RF Result Framework RFB Request for Bidding
RFQ Request for Quantity RGCO Regional GEQIP Coordination
Office
RPSC Regional Program Steering SABER Systems Approach for Better
Committee Education Results
SBD Standard Bidding Document SCD Systematic Country Diagnostics
SDI Service Delivery Indicator SDR Special Drawing Rights
SES Socio-Economic Status SG School Grant
SGG School Grant Guidelines SIP School Improvement
Program/Plan
SMS Short Message Service SNNP Southern Nation, Nationalities
and Peoples
SORT Systematic Operational Risk Rating SPG Special Purpose Grant
Tool
SRFP Standard Request for Proposal SSA Sub-Saharan Africa
SSIE Special Support and Inclusive TA Technical Assistance
Education
TBC To Be Confirmed TBD To Be Determined

iii
TDP Teacher Development Program TELDD Teachers and Education Leaders
Development Directorate
TLM Teaching and Learning Materials TOR Terms of Reference
TTL Task Team Leader TVET Technical & Vocational
Education & Training
UNESCO United Nation Education, Scientific UNICEF United Nations Children's Fund
and Cultural Organization
UNICTRAL United Nations Commission on USAID United States Agency for
International Trade Law International Development
USD/US$ US Dollar WB World Bank
WDR World Development Report WEO Woreda Education Office
WoFED Woreda office of Finance and YL Young Lives
Economic Development
ZEO Zonal Education Office ZoFED Zonal office of Finance and
Economic Development

Regional Vice President: Makhtar Diop

Global Practice Vice President: Keith Hansen
Country Director: Carolyn Turk
Senior Global Practice Director: Jaime Saavedra Chanduvi
Practice Manager: Sajitha Bashir
Task Team Leaders: Hiroshi Saeki, Girma Woldetsadik

iv
 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

GENERAL EDUCATION QUALITY IMPROVEMENT PROGRAM FOR EQUITY

Table of Contents

Page

I. STRATEGIC CONTEXT 1
A. Country context 1
B. Sectoral and Institutional Context 1
C. Relationship to the CAS/CPS and Rationale for Use of Instrument 7

II. PROGRAM DESCRIPTION 8

A. Government program 8
B. Program Development Objective/s (PDO) and Key Results 8
C. PforR Program Scope 10
D. Disbursement Linked Indicators and Verification Protocols 21
E. Capacity Building and Institutional Strengthening 22

III. PROGRAM IMPLEMENTATION 23

A. Institutional and Implementation Arrangements 23
B. Results Monitoring and Evaluation 24
C. Disbursement arrangements 24

IV. ASSESSMENT SUMMARY 24

A. Technical 24
B. Fiduciary 26
C. Environmental and Social 28
D. Grievance Redressal 30
E. Risk Assessment 30
F. Program Action Plan 31

ANNEXES
Annex 1: Detailed Program Description 37
Annex 2: Results Framework Matrix 55
Annex 3: Disbursement Linked Indicators, Disbursement Arrangements and Verification Protocols 76
Annex 4: Summary Technical Assessment 107
Annex 5: Summary Fiduciary Systems Assessment 119
Annex 6: Summary Environmental and Social Systems Assessment 140
Annex 7: Systematic Operations Risk Rating (SORT) 145
Annex 8: Program Action Plan 147
Annex 9: Implementation Support Plan 150
Annex 10: Investment Project Financing (IPF) based Technical Assistance (TA) 154
Annex 11: Map of Ethiopia 169

v
 PAD DATA SHEET
.

Federal Democratic Republic of Ethiopia

General Education Quality Improvement Program for Equity

PROGRAM APPRAISAL DOCUMENT

AFRICA
Education Global Practice

Basic Information
Date: December 19, 2017 Sectors: Early Childhood Education
Public Administration – Education
Primary Education
Secondary Education
Country Director: Carolyn Turk Themes: Education
Gender
Practice Manager: Sajitha Bashir
Global Practice Vice Keith E. Hansen
President:
Program ID: P163050
Team Leaders: Hiroshi Saeki,
Girma Woldetsadik
Program Implementation Start Date: 12/20/2017 End Date: 07/07/2022
Period:
Expected Financing 03/31/2018
Effectiveness Date:
Expected Financing 01/07/2023
Closing Date:
.

Program Financing Data

[ ] Loan [x ] Grant [ ] Other
[ ] Credit
For Loans/Credits/Others (US$, million):
Total Program 2,200 Total World 300
Cost: Bank Financing:
Total 140 Financing Gap: 300
Cofinancing:
.

Financing Source (US$, million) Amount

vi
BORROWER/RECIPIENT 1,460
IBRD/IDA 300
UK: Department for International Development 117
(DFID)
FINLAND: Ministry for Foreign Affairs 19
UN Children's Fund (UNICEF) 4
Financing Gap 300
Total 2,200
.

Borrower: Federal Ministry of Finance and Economic Cooperation (MoFEC)

Responsible Agency: Ministry of Education (MoE)
Contact: Elias Girma Wakjira Title: Director, Planning and Resource
Mobilization Directorate
Telephone No.: +251 11 156 4042 Email: [email protected]
.

Expected Disbursements (in USD million)

Fiscal Year 2017 2018 2019 2020 2021
Annual 26 86 111 107 110
Cumulative 26 112 223 330 440
.

Program Development Objective(s)

The Program Development Objective (PDO) is to assist the Government of Ethiopia in improving internal
efficiency, equitable access, and quality in general education.
.

Compliance
Policy
Does the program depart from the CAS in content or in Yes [ ] No [X]
other significant respects?
Does the program require any waivers of World Bank Yes [ ] No [X]
policies applicable to Program-for-Results operations?
Have these been approved by World Bank Yes [ ] No [ ]
management?
Is approval for any policy waiver sought from the Yes [ ] No [X]
Board?
Overall Risk Rating: Substantial
Legal Covenants
Name Recurrent Due Date Frequency
Adoption of Program Within one month after Once
Operational Manual by the Effective Date
MoE

vii
Description of Covenant
The Recipient, through MoE, shall:
(a) prepare (in consultation with Channel One Program Coordination Directorate) and furnish to the
Association for its review, an Operations Manual setting out detailed institutional, administrative, financial,
technical and operational guidelines and procedures for the implementation of the Program, the Project,
Program Action Plan, and including: (i) detailed safeguards, financial management (including funds flow and
budgeting) and procurement arrangements; and (ii) a monitoring and verification system for the Program;
and
(b) within one (1) month after the Effective Date, adopt (through MoE) such Operations Manual as shall
have been approved by the Association and thereafter, implement the Operation in accordance with the
Operations Manual.
Name Recurrent Due Date Frequency
Program and Project Not later than two months Every EFY semester
Reporting by MoE after the end of each Ethiopia
Fiscal Year (EFY) semester
Description of Covenant
The Recipient shall furnish to the Association each Program Report and Project Report not later than two
(2) months after the end of each EFY semester, covering the EFY semester
.

Team Composition
World Bank Staff
Name Title Specialization Unit

Hiroshi Saeki Sr. Economist Team Leader [ADM] GED01

Girma Woldetsadik Sr. Education Co-Team Leader GED01
Specialist
Huma Ali Waheed Sr. Education Education GED01
Specialist
Andrew B. Ragatz Sr. Education Education GED02
Specialist
Anna Olefir Education Specialist Education GED01
Sue Ellen Berryman Consultant Education GED01
Chingboon Lee Consultant Education GED01
Tihtina Zenebe Gebre Consultant Education GED01
Janice Heejin Kim Consultant Education GED01
Fitsum Zewdu Mulugeta Consultant Education GED07
Kevin Alan David Consultant Economist GED02
Macdonald
Jeffrey Waite Advisor Education GEDDR
Neil Butcher Consultant ICT in Education GED06

viii
Meron Tadesse Techane Sr. Financial Financial Management GGO25
Management Specialist
Shimelis Woldehawariat Sr. Procurement Procurement GGO01
Badisso Specialist
Hussein Sebrie Siraj Consultant Procurement GED01
Samuel Lule Demsash Social Development Social Development GSU07
Specialist
Yacob Wondimkun Environmental Environment GEN01
Endaylalu Specialist
Berhanu Legesse Ayane Sr. Public Sector Public Sector GGO27
Specialist
Elsa Araya Sr. Public Sector Public Sector GGO27
Specialist
Margaret Png Lead Counsel Lawyer LEGAM
Maiada Mahmoud Abdel Finance Officer Finance WFALA
Fattah Kassem
Samuel Mulugeta Economist Economist GSP01
Rosario Aristorenas Sr. Program Assistant Administration GED01
Biftu Wordofa Program Assistant Administration AFCE3
Non-World Bank Staff
Name Title City

Paula Malan Counsellor, Education Embassy of Finland

Arto Valjas Head of Cooperation Embassy of Finland

Satu Pehu-Voima Senior Advisor, Development Policy Ministry for Foreign Affairs of
Finland
Workaferahu Eshetu Education Advisor Embassy of Finland

Takeshi Miyazaki Mathematics and Science Education Advisor JICA

to the Ministry of Education
Ketema Biruk Zenebe. Program Officer -Social Sector JICA

Sissel Idland Counsellor Royal Norwegian Embassy

Richard Arden Human Development Team Leader / Senior UK Department for

Education Adviser International Development
(DFID)
Sewit Getachew Desta Education Adviser UK Department for
International Development
(DFID)

ix
Emmanuelle Abrioux Chief of Education UNICEF

Maekelech Gidey Education Specialist UNICEF

Dorothy Aanyu Angura Education Specialist UNICEF

Frehiwot Wubishet Senior Reading Specialist, Education and U.S. Agency for International
Youth Office Development (USAID)
Marc Bonnenfant Chief, Education and Youth Office U.S. Agency for International
Development (USAID)

x
I. STRATEGIC CONTEXT
A. Country Context
1. Ethiopia is a large, landlocked, and diverse country with a population of over 99
million and more than 90 ethnic and linguistic groups. Its population, with an annual growth
rate of 2.5 percent, is expected to reach 130 million by 2025. 1 A large proportion of the
geographical area of Ethiopia consists of drylands, which are prone to weather shocks on a regular
basis. Climate change is expected to increase the severity and frequency of these shocks. In
2015/16, about 18 million people were estimated to be vulnerable to and affected by drought in
Ethiopia.

2. Strong economic growth over the past decade as evidenced by real Growth Domestic
Product (GDP) growth rates averaging 10.9 percent annually (2004-2014), contributed to the
reduction of extreme poverty in the country. The recent El Niño drought slowed growth in
2015/16, to 8.5 percent, a rate that still places Ethiopia among the fastest-growing economies in
the world. Despite these impressive gains, Ethiopia remains the 13th poorest country in the world.2
Although urbanization is increasing as workers move from agriculture towards manufacturing and
services jobs, more than 80 percent of the population continue to live in rural areas.

3. Ethiopia has achieved impressive progress in social and human development that is
important to sustain. The poverty rate declined from 29.6 percent in 2010/11 to 23.5 percent in
2015/16. It is among the countries that have made the greatest progress toward achieving the
Millennium Development Goals (MDGs): primary school enrollments quadrupled between 2000
and 2014; child mortality has been cut in half; and the number of people with access to clean water
has more than doubled.

4. To realize national aspirations for attaining lower middle-income country status by

2025, enhanced human capital will be needed to drive economic development. In 2015, the
Government launched its latest development strategy, the Second Growth and Transformation Plan
(GTP II). A central objective of GTP II is to accelerate structural transformation through enhanced
productivity and production in several key sectors including industry (particularly manufacturing),
improve physical infrastructure and build human capital, the critical requirements for becoming a
hub for light manufacturing. Yet, education attainment among the richest 60 percent population
remains low at 2.8 years, and is even lower at 1.5 years for the poorest 40 percent.3

B. Sectoral and Institutional Context

5. Efforts to put into place, the critical elements for improving students' learning
outcomes began in 2009 through a comprehensive program to improve education quality.
This multi-donor supported program (General Education Quality Improvement Program, or
GEQIP), aimed to improve the learning environment in schools, which is a key objective under
the country’s third and fourth Education Sector Development Program (ESDP). GEQIP4 has been

1 Student population aged between 7 and 18 is about 26.8 million (2015/16).

2
As measured by GDP per capita, adjusted by purchasing power parity in current prices.
3 Ethiopia Systematic Country Diagnostic (2016, World Bank)
4 US$957 million will have been contributed between 2008 and 2018 by Development Partners to GEQIP (US$180 million IDA)

1
instrumental in improving the supply5 and deployment of qualified teachers as well as providing
teacher training, textbooks, learning materials and school grants (SG).6 An inspection system was
introduced under which almost all 35,000 schools in Ethiopia have been externally inspected and
classified into four levels of performance.7 GEQIP has resulted in enhanced quality of inputs and
markedly improved student-input ratios.

6. Learning outcomes have shown some improvement over the last ten years alongside
progress made on education inputs and the learning environment under GEQIP. The
National Learning Assessment (NLA) conducted in 2015 shows positive results with respect to
proficiency levels.8 The number of students achieving basic proficiency or higher in all subjects
between 2011 and 2015 has substantially increased for the two grades tested (Grades 4 and 8).
While enrolment increased by 21 percent, the total number of students achieving basic proficiency
or higher in all subjects increased from 505,000 to 792,000 (or by 57 percent). This result is
especially commendable given the enrollment influx of students from lower socioeconomic status
(SES) families who tend to have lower learning outcomes. At Grade 8, a noticeable improvement
has been observed: the total number of students enrolled increased marginally while the total
number of students achieving basic proficiency or higher increased by 120 percent.

7. Ethiopia has made tremendous gains in increasing access to primary education. The
Ethiopian education system has expanded rapidly from 7.1 million learners in 2000 to 25 million
in 2015 (see figure 1). By 2013, less than 13 percent of children had to walk more than 2 km to
get to school, a dramatic reduction from 2000, when 75 percent of rural children had to walk more
than 2 km.

5 By 2014/15, 75 percent of primary teachers and 91 percent of secondary teachers had met the nationally required standards for

teaching.
6 Under GEQIP II, about 120 million copies of teaching and learning materials have been procured or are under procurement;

about 270,000 primary and secondary teachers have completed or are completing pre-service or in-service training.
7 The inspection framework is based on 26 standards, of which 25 percent are input standards; 35 percent are process standards;

and 40 percent are outcome standards. Based on a weighted score of these standards, schools are classified into 4 levels of
performance. A weighted score of less than 50 percent is classified as Level 1, 50 percent to 69.99 percent is classified as Level
2, 70 percent to 89.99 percent is classified as Level 3 and 90 percent to 100 percent is classified as Level 4. Only Level 3 and
Level 4 schools are considered to have met national standards.
8 The NLA defines four proficiency levels, relative to subject and grade-specific learning goals: 1) Below Basic: Only a minimal

understanding of the subject and lack of skills to solve simple problems appropriate at the grade level; 2) Basic: Partial
understanding of the subject and skills to solve some simple problems appropriate at the grade level; 3). Proficient: Solid
understanding of the subject and skills to solve a wide variety of problems appropriate at the grade level; and 4) Advanced:
Comprehensive and in-depth understanding of the subject and skills to provide sophisticated solutions to complex question.

2
Figure 1: Enrollment Trends by Levels of Education
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14
KG G1-4 G5-8 G9-10 G11-12 TVET Undergraduate Graduate
Source: Education Statistics Annual Abstract, various years

8. Despite these achievements, internal inefficiency; inequity; and poor education

quality persist as challenges in the sector. Cutting across these challenges is the urgent need to
strengthen systems that impact on efforts to raise internal efficiency, equity, and quality. These
include, notably, the systems for: (i) data collection and analysis on school and student
performance; (ii) teacher preparation; and (iii) emergency response to reduce the adverse impacts
of drought, famine, and other disasters on school attendance.

9. First, internal inefficiency remains a major bottleneck in the system, causing high
wastage of human capital. Although Ethiopia has made impressive enrollment gains in primary
education, completion rates at the primary level have been stagnant at 50 percent for a decade. 9

10. The low internal efficiency stems partly from irregular attendance through the school year
and from the fact that many students do not enter the system at the official enrollment age. Among
the 5.2 million Grade 1 enrollees in 2015/16, only 66.7 percent entered at the official entry age of
7. The unusually high Gross Intake Ratio (GIR)10 in Grade 1, which has remained at about 150
percent for over a decade, indicates that a large proportion of over and under-age children are
entering Grade 1. 11 Review of international education system databases suggests that the
persistence of high GIR in many Sub-Saharan African countries raises the possibility that these
children are not all new entrants because they include children who re-enter Grade 1 and are
labeled as ‘new entrants’ when they should in fact be counted as repeaters. 12 As a consequence,
dropout is overestimated and repetition is underestimated. This has also meant that the
Government’s response needs to target the real issue of repetition in grade 1 which is likely due to

9 Source: Education Statistics Annual Abstract 2008 Ethiopian Calendar (2015/16).

10 GIR is the total number of new entrants in first grade of primary education, regardless of age, expressed as a percentage of the
population at the official primary school-entrance age.
11 Under-age (1.8 percent) or over-age (31.9 percent) enrollment for the Grade 1.
12 Bashir, S. M. Lockheed, E. Ninan and J.P. Tan 2017. Forthcoming. Facing Forward: Schooling with Learning in Africa.

Washington D.C: World Bank.

3
the lack of a conducive learning environment resulting from large class sizes, inadequate resources
and lack of proper monitoring and response at the school level to promote regular attendance.

11. Second, equity remains a concern, particularly for girls, students with special needs,
and children from pastoralist communities. While gender ratios in primary and secondary
education have improved at the national level, Afar, Ethiopia Somali and Benishangul-Gumuz lag
significantly behind other regions.13 Within these regions, the issue of girls dropping out is most
acute at the upper primary level (Grades 5-8), around the time they reach puberty. This can be
partly explained by the gender norms in these three regions, especially in relation to early marriage,
and social roles. The median age of first marriage was 15.9 in Benishangul Gumuz, 16.8 in Afar
and 17.6 in Ethiopia Somali. Fertility rates are high and rising in Afar and Ethiopia Somali.
Ethiopia Somali has the highest rate at 6.4 births per woman in Ethiopia compared to 1.7 in Addis
Ababa. 14 Another practice that negatively impact girls is female genital mutilation. Fifty-nine
percent of girls in Afar, 32 percent in Ethiopia Somali and 24 percent in Benishangul-Gumuz are
circumcised by age 15.

12. Significant effort is needed to address socio cultural gender practices; and this requires
interventions through various channels. The Ethiopia Health Sustainable Development Goals
Program supported by the World Bank and the Global Financing Facility (GFF) have a strong
focus on adolescent girls including reproductive health, family planning and school health.
Education of girls, however, is one of the most effective channels to empower girls for social
change. Further efforts are required to make schools more accessible and safe for female students,
including by constructing separate latrines for girls, hiring female teachers, and development and
delivery of life skills training, counseling and adolescent girls empowerment program together
with community involvement and participation to break down cultural barriers to sending girls to
upper primary schools.

13. Many children with special needs are not fully integrated in the system. According to the
Education Statistics Annual Abstract (ESAA) only 8.1 percent of children with special needs were
enrolled in primary schools, and 1.5 percent in secondary education in 2015/16.15 Challenges in
supporting children with special need education in mainstream schools include lack of awareness
and capacity to implement special needs education activities, and lack of educational resources for
children with special needs. As such, access of special needs children to schooling is constrained.
Considering this, the ESDP V underlines the importance of increasing the provision of inclusive
education in mainstream schools, including in the one-year school readiness program aimed at 6-
year-olds and delivered in primary school compounds (O-Class).

14. Education services in pastoralist areas are limited. The estimated 12 million pastoralists
derive most of their food source and income from raising livestock, a livelihood necessitating
seasonal migration. This nomadic lifestyle creates a unique challenge for providing education to

13 Girls to Boys ratios in primary education (grades 1-8) in Afar, Ethiopia Somali and Benishangul-Gumuz are low at 81 percent,
74 percent and 81 percent, significantly lower than the national average of 89 percent. (EMIS 2015/16) The three regions show
similar trends in secondary education (grades 8-12), 54 percent in Afar, 48 percent in Ethiopia Somali, and 79 percent in
Benishangul-Gumuz whereas the national average is 90 percent.
14 Child Marriage and Female Circumcision (FGM/C): Evidence from Ethiopia. Young Lives Brief 21. July 2014.
15 At present, 243,155 children with special educational needs are enrolled in schools from Grades 1 to 12

4
children in pastoralist communities. Alternative schooling modalities in response to this challenge
have had limited success thus far, and many children remain out of school, particularly during the
dry season.16 Furthermore, the difficulty of delivering services is compounded by shortages of
teaching and learning materials as well as of qualified staff, the low capacity of school leaders and
supervisors, and poor to non-existent learning environments.

15. Children from poor backgrounds make slower progress through school and are more likely
to drop out without completing schooling. For instance, the average Net Enrollment Rate (NER)
in Grades 5-8 for the bottom 20 percent of woredas (administrative districts) is 40 percentage
points lower than the national average, while the average Grade 8 completion rate in the bottom
20 percent of woredas is 36 percentage points lower than the national average. The overwhelming
majority of these lagging woredas are found in the emerging regions such as Afar and Ethiopia
Somali and in the periphery of Oromia and Southern Nations, Nationalities, and Peoples' (SNNP)
regions.

16. Third, while there has been progress on improving student learning outcomes, the
Government will need to do more to raise proficiency levels that are still very low in general
education. In 2015, between a third and over a half of Grades 4 and 8 students scored at the
"Below Basic" proficiency level for all subjects, except for Grade 8 English. About 44 percent of
Grade 4 students tested nationally were at below the basic level in reading. NLA data also showed
that the proportion of students performing at advanced levels is very low, in most cases below 10
percent in Grades 4 and 8 for both English and Mathematics. 17 Learning levels of Ethiopian
students are low relative to international norms set by the Trends in International Mathematics and
Science Study (TIMMS). At the age of 12, about half of the children in Ethiopia fail to reach the
low achievement benchmark for children aged 10 years. 18

17. Poor teacher quality is a major contributor to low student performance. While
Ethiopia has made significant investments in teachers’ development, and achieved remarkable
results in regard to increasing the number of qualified teachers at schools, the quality at entry of
teachers remains low, as evidenced by the results of teacher licensing exams.19 Out of the 140,435
primary school teachers who took the written exam between 2012/13 and 2015/16, only 22 percent
passed the threshold of the licensing exams. 20 A number of factors have led to the low quality at
the entry of the teaching force. These include the existence of teacher training programs that
neither address the content knowledge gaps of trainees nor impart the necessary pedagogical skills,
and the admission of low quality candidates (underperformers in their peer group) to diploma and
degree teacher-training programs.
16 Education of the pastoralist children might benefit from adaptation of the academic year in pastoralist woredas to these seasonal
cycles; and the relevant approach is now piloted by the Government in selected pastoralist woredas.
17 While NLA data show improvements in proficiency levels, the assessments tend to give greater weight to lower level cognitive

skills (such as knowing specific math content) compared to higher level cognitive skills such as reasoning, evaluating and
synthesizing.
18 Singh, A, Emergence and evolution of learning gaps across countries: Linked panel evidence from Ethiopia, India, Peru and

Vietnam, University of Oxford, August 8, 2014

19 Between 2009/10 and 2013/14, the percent of qualified teachers increased from 15.5 percent to 54.7 percent in Grades 1-4, while

for Grades 5-8, the percent of qualified teachers increased from 77.8 percent to 91.7 percent. GEQIP II has contributed to this
progress by supporting the training of over 270,000 teachers through pre-service and in-service upgrading programs.
20 62.5 percent is identified by the Licensing and Relicensing Directorate as the passing threshold for the written part of the licensing

exam.

5
18. Once teachers are assigned to schools, their teaching practices do not favor effective
learning. Although teacher presence in Ethiopia compares favorably with other countries in the
region, teaching practices are not optimal. 21 Despite teacher content knowledge in Ethiopia being
better than other countries in the region and there being no large differences between rural and
urban teachers, the Service Delivery Indicator (SDI) survey found serious deficiencies in
pedagogical knowledge. In addition, teachers’ use of continuous classroom assessment (CCA) to
identify learning gaps and address them is not well developed.22 Efforts to address these problems
also have been impeded by the lack of an effective system for providing on-site support to teachers.
While there are in-service Continuous Professional Development (CPD) programs for teachers,
they lack a well-designed support, feedback, and monitoring mechanism to help teachers
strengthen pedagogical skills and improve teaching practices.

19. Another contributing factor to low student learning outcomes is the quality of the
learning environment. School inspections conducted between 2013/14 and 2015/16 found that
about 90 percent of primary schools and 83 percent of secondary schools did not meet national
standards.23 About 26 percent of primary schools and 16 percent of secondary schools are rated at
the lowest level, and almost two-thirds of both primary and secondary schools, at the second-to-
lowest level. These findings point to the fact that most schools in the country are failing to provide
an adequate learning environment for students. Funding in the form of school grants for
implementing the school improvement plan (SIP) aimed at improving learning conditions were
introduced under GEQIP but often do not reach schools on time. Moreover, the quality of the SIP
plans is low, given that they are not evidence and results based, nor aligned with national inspection
standards. Textbooks, a key input for learning although procured more cost efficiently and in
adequate numbers with support from GEQIP II, are still not available at the start of the school year
for use by a large number of students.24

20. Deficient or inadequate systems for data collection and analysis, teacher preparation
and emergency response to disasters, have constrained the achievement of internal efficiency,
equity, and quality improvement objectives. Although several systems – the Education
Management Information System (EMIS), school inspection, teacher licensing, and learning
assessment - are in place to collect specific data at the school and student levels, there are persisting
problems of fragmented data management processes, weak collaboration among directorates at the
national and regional levels, and limited capacity to analyze data. These problems, together with
concerns about the quality and timeliness of data, have hampered the utilization of information for
planning and decision-making purposes. The preservice teacher training system suffers from the
weaknesses described in paragraph 17; strengthening of this system through reform of diploma
and degree level programs will be critical for improving the quality of new entrants to the teaching
force.

21. Finally, the education sector does not have a strategy and an actionable plan to
respond to emergencies. Twenty-seven million people in Ethiopia are vulnerable to absolute

21 The 2014 Service Delivery Indicators survey found that teacher absence in Ethiopia was around 12 percent, significantly lower
than in Tanzania, Uganda, Senegal and Kenya.
22 World Bank (2016). Systems Approach for Better Education Results (SABER) – Student Assessment, Ethiopia report.
23
School Inspection Report Findings (2013/14-2015/16).
24 The GEQIP I Comprehensive Evaluation, 2013 shows that textbooks were available at 58 percent of schools.

6
poverty and food insecurity. In times of drought and famine, children may not be able to attend
school or concentrate due to hunger, lack of water or illness induced by malnutrition. Children
may also be withdrawn from school to help collect water, fuel, or food, and the practice of early
marriage may increase due to the coping behavior of poor households. Although the country has
been faced with frequent disasters, a systematic response to provide funding and services to
affected areas to ensure that children will not be out of school for extended periods leading to
dropout or extremely low levels of learning has not yet been established. The response is still
highly dependent on efforts of humanitarian agencies.

22. To address the substantial remaining challenges in the education sector, the
Government will need to shift from an input based approach to a focus on results – student
learning outcomes. Over the last decade, GEQIP has contributed significantly to improved
provision of education inputs and setting up strong systems, most notably, school inspection, that
provide a solid platform for accelerating improvements in sector outcomes. What is needed now
is incentives to service providers and key actors to utilize available educational inputs effectively
to produce learning. To support the Government in making this critical shift, development partners
(DPs) will adopt results based financing in a proposed Program for Results (PforR).

C. Relationship to the CPF and Rationale for Use of Instrument

23. The proposed PforR will support the Government’s flagship education sector development
program, the ESDP V and its follow on (ESDP VI) for improving the general education system.
It is aligned with the World Bank Group’s Country Partnership Framework (CPF)25 for Ethiopia
FY 2017-2021. The CPF aims to build resilience and inclusiveness (Focus Area 2). One of the
objectives under Focus Area 2 is to improve basic education learning outcomes. It identifies the
main constraints - internal inefficiency (e.g., high dropout rates during the first four years of
schooling), inequity (particularly gender and regional disparities), and poor quality (low learning
outcomes) - to achieving sustainable results in the sector. The PforR will address these constraints
by supporting the relevant government interventions, the impact of which will be monitored
through indicators that are aligned with the CPF. The expectation is that the PforR will contribute
significantly to the achievement of the sector goals in the CPF together with other complementary
investments.26

24. The PforR is also well-aligned with the World Bank’s Education 2020 strategy in that it
contributes to all three of its pillars: “investing early”, “investing smartly” and “investing for all”.
Specifically, a strong focus will be on improving learning conditions in pre-primary and early
grades (investing early), providing financial incentives for increasing grade promotion and
completion rates (investing smartly), and addressing issues related to gender, special needs, and
geographical disparities (investing for all). Additionally, by addressing one of the binding
constraints for Ethiopia’s progress on ending extreme poverty and promoting shared prosperity,
which is the low level of human development, the PforR operation is aligned with the World

25World Bank (2017). World Bank Group Country Partnership Framework

26Enhancing Shared Prosperity through Equitable Services Program (USD 600 million) on increasing qualified teachers and
improving regional disparities in access, Pastoral Community Development Project III (USD 110 million) on improving access in
pastoral communities, Water Supply, Sanitation and Hygiene Project (USD 205 million) on improving access to water, sanitation,
and hygiene at school (that are important for improving access to schools especially for female students), Productive Safety Nets
Project (USD 600 million) on improved access to education and Health Sustainable Development Goals PforR on adolescent girls,
school health and school feeding (USD 310 million).

7
Bank’s strategic focus for the Africa Region (high quality human capital) and the Ethiopia
Systematic Country Diagnostics (SCD) “Priorities for ending extreme poverty and promoting
shared prosperity” (World Bank, 2016).

25. The shift in financing modality from investment project financing (IPF) (used under the
earlier GEQIP projects), to results based financing under the PforR approach, is warranted for
three reasons. First, this modality will incentivize school leaders, administrators, and teachers to
work together to affect learning in the classroom. Second, national and sub-national agencies will
be committed towards the achievement of a common set of results, given that funding is tied to
these results. Third, financial incentives can help Government leverage more impact from some
of its policies. For example, modifying the current school grant formula to reward schools for
meeting retention and completion goals may help reduce the high dropout rates in primary.

26. To build sufficient capacity for the Government to implement a results-based operation
and mitigate several of the identified implementation risks, it is proposed that an IPF-based
technical assistance (TA) component be associated with the PforR. The TA component will
support strengthening of systems to provide reliable data on sector outcomes, respond to
emergencies and generate evidence on efficacy of the interventions supported by the PforR
component.

II. PROGRAM DESCRIPTION

A. Government program
27. GEQIP-E proposes to support phases V and VI of the Government of Ethiopia’s Education
Sector Development Program (ESDP) which serves as the framework for educational development
in Ethiopia in line with the GTP II27. ESDP V (2015/16-2019/20) identifies six priority programs
from which its goals are derived. These are: capacity development for improved management;
general education quality;28 general education access, equity, and internal efficiency; adult and
non-formal education (ANFE); technical and vocational education and training (TVET); and
higher education. Priority programs are further disaggregated by component and activity with
specific targets. Additionally, it sets out seven issues that cut across the six priority programs:
gender; special needs, and inclusive education; HIV/AIDS; education in emergencies; school
health and nutrition; drug and substance abuse prevention; water, sanitation, and hygiene.
Development of the successor program, ESDP VI, is expected to begin in December, 2017 and
continue to focus on the same themes given the large unfinished agenda. Approval of ESDP VI is
expected by August 2019.

B. Program Development Objective (PDO) and Key Results

28. The Program Development Objective (PDO) for the PforR operation is to assist the
Government of Ethiopia in improving internal efficiency, equitable access, and quality in general
education.

27 GTP is a national five-year strategic plan designed by the Ethiopian Government. It is an overarching policy framework aiming

to develop the country’s economy and improve socioeconomic status of the country.
28 General education includes pre-primary (age 6), primary education (Grades 1-8) and secondary education (Grades 9-12).

8
29. The main results areas of the operation are:
I. Improving internal efficiency
II. Improving equitable access
III. Improving quality
IV. System strengthening for planning, policy formulation and reform.

30. Progress toward achievement of the PDO will be measured through the following Key
Performance Indicators (KPIs).

KPI 1: Improvement in Grade 2 to Grade 1 enrolment ratio (disaggregated by gender)

KPI 2: Improvement in Grade 5 survival rate (disaggregated by gender)
KPI 3: Improvement in girls-boys’ ratio in Grade 8 in Afar, Ethiopia Somali, and
Benishangul-Gumuz
KPI 4: Improvement in Gross Enrollment Ratio of Grades 1-8 in Afar, Ethiopia Somali, and
Benishangul-Gumuz (disaggregated by gender)
KPI 5: Improvement in Grade 2 learning outcomes in Mother Tongue Reading in Phase I
schools (disaggregated by gender)
KPI 6: Improvement in Grade 8 learning outcomes in English and Mathematics in Phase I
schools (disaggregated by gender)

31. The Program will provide benefits at three levels: Most interventions including school
grants, performance-based awards, textbook delivery and support for students with disabilities will
be provided nationally with all 27 million students and 520,000 teachers in 35,000 public primary
and secondary schools in Ethiopia benefiting from the Program. Second, given that inequities
mainly exist in the emerging regions of the country, interventions under the Equitable Access
results area will be monitored and evaluated in Afar, Ethiopia Somali and Benishangul-Gumuz.
Third, Program interventions geared to improving quality are proposed to be rolled out in a phased
manner 29 , with a subset of randomly selected, nationally representative woredas receiving the
interventions in Year 1 with gradual scale up to cover 50 percent of schools by the end of the
operation. Given that only schools in Phase I will receive the intervention for a meaningful period
of time, outcomes related to learning improvements are proposed to be measured for this subset
and can provide confidence that similar results can be expected in the Phase II and III schools that
will receive the same or improved interventions. A phased approach is proposed to mitigate the
risk of low quality of implementation in a capacity constrained environment30, especially for the
elements that are introducing massive shifts in behavior at lower levels of education delivery. The
phasing will also provide an opportunity to incorporate lessons for improved implementation
quality at a national scale.

32. A detailed Results Framework (RF) is included in Annex 2.

29 Phase I covers all schools and clusters in 5 percent of randomly selected, nationally representative woredas (approximately
2,000 schools). Phase II covers all schools and clusters in 25 percent (cumulative) of woredas (approximately 9,000 schools) and
Phase III covers all schools and clusters in 50 percent (cumulative) of woredas (approximately 18,000 schools).
30The World Development Report (WDR) 2018 suggests that in settings where teachers have limited skills and government has

financial constraints, training associated with specific pedagogical technique, it is better to deliver such training in stages rather
than ineffective training to all in the short run

9
C. PforR Program Scope
33. The Program will focus on selected subprograms/activities in the first three of the
government Program’s six priority programs, covering pre-primary, primary and secondary
education (Grades 0-12). These are: capacity development for improved management; general
education quality; and general education access, equity, and internal efficiency. ESDP priority
programs for ANFE, TVET, and higher education are receiving support from other DPs and are
thus excluded from GEQIP-E which will focus on the general education subsector.31 Kindergarten
(ages 4 to 6) is also excluded because the government would like to leverage private sector
contributions in this area. Continuing to support the three priority sub-sectors (pre-primary,
primary, and secondary education sectors), GEQIP-E is expected to build on lessons learned from
GEQIP I and II and make transformational changes in the sub-sectors with more focus on results
through PforR.

34. Within the selected ESDP priority programs, there are several areas that are not included
within the Program boundaries (See Annex 1). Under the “Capacity development for improved
management”, the subprograms for development of new structures and systems are excluded
because the Program will place emphasis instead, on the strengthening of existing government
structures and systems, a results area 4 that is central to achieving the PDO. Those excluded are
organizational structure (1.1.1), job specification and operational handbook (1.3.1), and profiles
and recruitment (1.4.1). These are MoE’s management issues that do not need support from DPs.
Professional development (1.4.2) and improving resources and conditions of work (1.5) are
supported under the IPF-TA as part of capacity building.

35. In respect of the ESDP’s “Improve quality of general education” priority program, all
interventions except Information and Communication Technology (ICT) are included in the
Program. The rationale for excluding ICT is that the associated IPF-based TA will be used to build
the capacity for utilizing ICT investments made through the ongoing GEQIP II effectively to
contribute to the Results Area 4 of the Program.

36. Lastly, under the “Improve access, equity, and internal efficiency in general education”
priority program, the Program will not include expansion of access to secondary education because
prior work is required on school mapping to identify optimal areas for secondary school
construction. Without this prior work, the Program may not be able to support meaningful results
under the PforR.

37. The Program will address several of the Government program’s cross-cutting issues
(gender, special needs and inclusive education, education in emergencies) through support for
gender, special needs and inclusive education, and education in emergencies. In respect of support
for education in emergencies, the IPF-based TA component associated with the Program will
include a contingency emergency response subcomponent that can be activated when disasters
happen. Refugee issues, which also fall under education in emergencies, are likely to be addressed

31ANFE is supported by NGOs while TVET sector receives assistance from GIZ. The World Bank provides support to TVET
and higher education sectors through regional programs, i.e., East Africa Skills for Transformation and Regional Integration
Project and Eastern and Southern Africa Higher Education Centers of Excellence Project .

10
by additional financing and other donor contributions that are channeled through IDA’s Refugee
Window. Other cross-cutting issues, which require more inter-sectoral approaches with health,
nutrition, and social protection sectors, are excluded from the Program boundaries, given that they
are supported through other World Bank-financed projects including Water Supply, Sanitation and
Hygiene Project, Enhancing Shared Prosperity through Equitable Services (ESPES), Health
Sustainable Development Goals (SDG) Program and Pastoralist Community Development
Program III (PCDP III) that cover a variety of issues in the health and education sectors.
38. Within the selected programs and cross-cutting issues, and with improved student learning
as the core objective, the Program will focus on four main results areas, namely: (1) improving
internal efficiency; (2) improving equitable access; (3) improving quality; and (4) system
strengthening for improved planning, policy formulation, and reform.

Results Area 1: Improved Internal Efficiency (Subprogram 3.2 of ESDP V)

39. This results area will focus on addressing the chronic issue of over-enrollment in Grade 1
and promoting progression of children through the early grades for improved internal efficiency
of the education system. To improve student progression in the early grades, concerted effort will
be made to: (i) improve school readiness of grade one entrants so that they will be able to progress
to the next grade; and (ii) get children enrolled on time and once they are enrolled, ensure regular
attendance throughout the year.
40. High quality pre-primary education is evidenced by international evaluation research as a
powerful tool for improving student retention and progression. In the Ethiopian context, rigorous
evaluations32 provide strong evidence of the positive effects of pre-school on cognitive outcomes
at age 5 and 8 and on secondary education completion. The studies show that preschoolers are 25.7
percent more likely to complete secondary education at the proper age than their non-preschool
counterparts. Regional evidence corroborates this finding. Evaluation of a pilot in Uganda shows
that exposure to pre-primary schooling reduced the risk of repetition by approximately 50
percent. 33 South Africa, which was able to realize rapid efficiency gains by focusing on pre-
primary education, outreach to parents on on-time enrolment, and monitoring of student
progression in the early grades stands out as a model to address the main issues facing Ethiopia.

41. Based on international and Ethiopia specific evidence, the PforR operation will prioritize
support for: (i) enhancement in the quality of O-Class provision; and (ii) provision of incentives
for school based monitoring of student progression through the primary grades, and outreach to
parents to encourage them to enroll their seven-year-old children on-time in Grade 1. Outcomes in
this results area will also benefit from interventions under the results area 3 which will focus on
improving the quality of teaching practice and improved learning environments, both of which are
important factors for student progression and retention.

32 Woldehanna, T., and Araya, M. (2017). Early investment in preschool and completion of secondary education in Ethiopia:
Lessons from Young Lives (YL), YL working paper 168. Woldehanna, T. (2011). The effects of early childhood education
attendance on cognitive development: evidence from urban Ethiopia’, Ethiopian Journal of Economics 20 (1): 113-164.
33 Brunette, T., et al. (2017). Repetition of primary 1 and pre-primary education in Uganda. Working Paper no. 2017-02. RTI

International.

11
42. Progress in this results area will be tracked through two indicators: (i) Grade 2 to Grade 1
enrolment ratio34 and: (ii) Grade 5 survival rate.35

1.1 Quality Enhancement and Assurance Program for O-Class in Pre-primary Education
43. The Government program emphasizes the importance of pre-primary education to achieve
its core objectives of reducing dropout and repetition in Grade 1 through better readiness for
school. The Government is committed to providing pre-primary education to 80 percent of children
by 2020 through a mix of modalities, including O-Class 36 . The growth of O-Class has also
increased access in ways that strengthen equity, as it is now available in many previously
underserved remote, rural, and poor areas.

44. Although O-Class provision continues to expand rapidly, there are concerns with respect
to the quality of provision. The Government’s focus is gradually shifting to improving quality. A
set of instructional supports, including an in-service training package for O-Class teachers and a
curriculum package with the minimum teaching and learning materials (TLM), has been developed
and is under implementation in two emerging regions. The development of these materials is
supported by the Ethiopia Education Results Based Financing Project (P163608) financed by the
Global Partnership for Education (GPE). GEQIP II also provides school grants for O-Class, which
is equivalent to per capita grants for primary grades.

45. The PforR operation proposes to build on these efforts by introducing a comprehensive
Quality Enhancement and Assurance Program (QEAP) for O-Class comprising two key
components - Quality Enhancement (QE) and Quality Assurance (QA). The QE component, which
aims to improve pedagogical practices in the classroom, includes teacher preparation and
professional development, curriculum and TLM for O-Class, and training for management and
supervision. The QA component, which aims to create a quality assurance mechanism, entails the
establishment of national standards, school inspection for O-Class, and quality EMIS data
collection for pre-primary. Overall, QEAP will provide a comprehensive package of interventions
to systemically improve the quality of O-Class provision under a coherent framework of support.
The QEAP will be implemented in about 2,000 schools initially (Phase I) and subsequently rolled
out over the next two years to reach 50 percent of all schools.

46. By linking financing to tangible improvements in the quality of O-Class provision, GEQIP-
E will incentivize effective implementation and institutionalization of the QEAP. This approach
provides the incentive for improved coordination between the Directorates of the MoE working
on O-Class quality improvement, without which meaningful results at the classroom level cannot
be achieved. Improvements at the classroom level are expected to result in the upgrading of at least
50 percent of O-Classes from the lowest quality level (L1) to the next level (L2) based on the

34 As a proxy of promotion from Grade 1 to Grade 2, the ratio of Grade 2 enrolment (current school year) to Grade 1 enrolment
(previous school year) will be used as an KPI I. Compared to the dropout rates, the ‘Grade 2 to Grade 1 enrollment ratio’ is i) a
readily available indicator without technical delays in data collection and ii) more holistic indicator that can capture dropout,
repetition, and readmission by estimating those who are lost in transition between Grade 1 and Grade 2.
35 Grade 5 survival rate is defined as a percentage of a cohort of students enrolled in Grade 1 who reached Grade 5 in primary

education.
36 O-Class is a one-year reception class (nine-month program) based in government primary schools for children aged 6 years,

before formal schooling starts at age 7 (Britto et al., 2012, MoE, 2015).

12
newly established national inspection standards. Given the extremely low quality of O-Classes at
the outset, an upgrade from L1 to L2 is considered a good start in moving to the next level, which
is fully satisfactory (L3) O-Classes.

1.2 School-based monitoring and incentives to track on-time enrollment of Grade 1 entrants
and uninterrupted progression
47. In alignment with the Government’s efforts to reduce dropout and absenteeism in primary
and secondary schools through local action 37 , the PforR operation will support school-based
monitoring of student attendance, and incentives for schools to improve performance on two
specific internal efficiency indicators. These are: (i) the ratio of Grade 2 enrolment to Grade 1
enrolment38 (KPI 1); and (ii) increase in survival rates to Grade 5 (KPI 2).

48. The first thrust, which is, establishment of a school-based monitoring system will entail
targeted communications to raise awareness of the issues related to grade repetition and
readmission, absenteeism, and dropout. The results of monitoring activities at the school, woreda,
and regional levels will be captured in school report cards that will be publicly disseminated. The
second thrust will be to provide annual awards to the top 10 percent of primary schools nationwide
ranked in accordance with a formula that calculates year-to-year improvements in the two
abovementioned indicators. To ensure that awards are viewed credibly, GEQIP-E financing will
be linked to the percentage of awards that are transferred on time to schools. Implementation
progress of school-based monitoring, and incentives for internal efficiency improvements at the
school level, will be verified by a third party before disbursements against achievement are made.

Results Area 2: Improved Equitable Access (Subprograms 3.1, 3.2 and 3.4 of ESDP V)
49. This results area focuses on promoting equitable access to general education in Ethiopia
with the aim to: (i) improve gender parity in Afar, Ethiopia Somali, and Benishangul-Gumuz at
Grade 8 (KPI 3); (ii) improve Gross Enrollment Ratio of grades 1-8 in Afar, Ethiopia Somali, and
Benishangul-Gumuz (KPI 4) to support pastoral students and students in emerging regions; and
(iii) improve school participation of children with special needs (IRI 4.3). The Program will
support government initiatives that target these three disadvantaged groups and are backed by
strong evidence of efficacy. It is also designed to complement the ongoing efforts to address
inequity in education with support from the World Bank and other DPs, including (i) ESPES
supported by the World Bank is addressing demand side constraints by piloting school feeding,
child grants for schooling or conditional cash transfers targeted at the bottom 20 percent of
woredas; (ii) The Pastoral Community Development Program III (PCDP III) is constructing 700
schools to increase access to schooling for pastoralist communities; and (iii) the Health Sustainable
Development Goals PforR is focusing on adolescent health and school feeding.

2.1 Improved gender equality in upper primary education

50. Ethiopia has improved overall gender parity in general education in the last decade. The
gender parity index (GPI) at the primary level improved from 0.67 in 1999/2000 to 0.91 in
2015/16. The improvements, however, have not been even. There are large disparities in access in
the three emerging regions39 that will need to be addressed to achieve the gender parity targets set

37 Guidelines for Performance-Based Incentive System, SIP Directorate, MoE Ethiopia.

38 G2/G3 ratio will be monitored to ensure that children are not stagnating in Grade 2.
39 Afar, Ethiopia Somali and Benishangul-Gumuz

13
by the government. Within the schooling cycle, gender differences in dropout rate are the highest
at the upper primary level (grades 5-8). While 13 percent of boys drop out at Grade 8, it is 17
percent for girls. Only 19 percent of 14-year-old girls in the Afar region reach Grade 8 compared
to 27 percent of boys and a national average of 51 percent of girls. Similarly, only 21 percent of
girls in the Ethiopia Somali region reach grade 8 compared to 26 percent of boys. For Benishangul-
Gumuz, while 58 percent of boys reach grade 8, only 43 percent of girls do.40

51. Girls’ access to education is predominantly constrained by lack of time and interest, early
marriage and demand for girls’ labor at home (LSMS 2015/2016)41. In addition, exposure to gender
based violence in schools reduces girls’ class participation, lowers their school performance, and
increases their grade repetition and dropout rates. Supply side issues also pose huge challenges. In
2015, only 37 percent of primary schools had separate latrines for girls, which is a significant
constraint to girls continuing their education when they reach puberty.

52. In response to the issues highlighted above, the PforR will support the following key
interventions to improve gender parity in the three emerging regions with a focus on grades 5-8:
(i) empowerment of girls in upper primary grades through girls’ clubs; (ii) development and
implementation of a life skills training manual 42 for upper primary; and (iii) gender-sensitive
school improvement planning. Girls’ clubs are intended to create safe spaces for girls and revive
their interest in continuing education. They will also be a means to engage boys to help change
behaviors and prevent violence against girls. Life skills courses will cover topics related to sexual
reproductive health, menstruation, pregnancy, family planning, gender-based violence, conflict
resolution and leadership. School improvement planning will focus on ensuring gender analysis
and explicit targets and actions for enhancing girls’ participation, retention, and learning including
provision of adequate facilities such as separate latrines that are largely supported by the WASH
program. 43 These interventions have been selected based on solid evidence of their impact in
Ethiopia and other African countries.44 Further, demand-side constraints to girls’ education are
being addressed by complementary interventions under (i) ESPES, which includes a disbursement
linked indicator on girls’ completion rates in grade 8 in the 20 worst performing woredas; (ii) the
Promoting Basic Services Phase III Project which tracks and assesses discrepancies in the gender
party index (Grades 5-8) between the different regions and woredas with a view to identifying
possible interventions to address these discrepancies; and (iii) the GPE-financed Education Results
Based Financing Project which aims to increase the share of female school principals to promote
girls’ retention.

40 Education Statistics Annual Abstract 2014/15.

41 The benefits from ending child marriage in Ethiopia could reach UD$5.1 billion by 2030. These losses for the most part are
related to the fact that child marriage curtails the educational attainment and future earnings of many girls who marry early. Source:
Wodon, Quentin T. 2017. Economic Impacts of Child Marriage in Ethiopia: Synthesis Report. Washington, D.C.: World Bank.
42 This manual will be used by teachers, girls and boys to inform behavior (e.g. zero tolerance for violence against girls) and

empower girls.
43 Water Supply, Sanitation and Hygiene Project financed by the World Bank (US$233 million). Water, sanitation, and hygiene

facilities are constructed/rehabilitated in schools and health facilities.

44 (i) Wodon, Quentin T. 2017. Economic Impacts of Child Marriage in Ethiopia: Synthesis Report. Washington, D.C.: World

Bank Group; (ii) Erulkar A, Medhin G. 2014. Evaluation of Health and Education Impacts of a Girls’ Safe Spaces Program in
Addis Ababa, Ethiopia, Addis Ababa: Population Council. (iii) Ashraf, Nava et al. 2017. "Negotiating a Better Future: How
Interpersonal Skills Facilitate Inter-Generational Investment." AEA RCT Registry. May 25 (impact evaluation on Zambia); (iv)
Vigneri M., Lombardini, S. 2017. Women’s Empowerment in Mali: Impact evaluation of the educational project: ‘Girls CAN –
Promoting Secondary Education in West Africa’. Oxfam. GB; (v) Malhotra, A., A. Warner, A. McGonagle, S. Lee-Rife. 2011.
Solutions to End Child Marriage What the Evidence Shows. Washington, DC: International Center for Research on Women.

14
2.2 Increased participation in schooling in pastoralist woredas and emerging regions
53. The PforR operation will build on synergies with the IDA financed Pastoral Community
Development Program III (PCDP III) to improve participation in general education of children
residing in pastoralist woredas. PCDP III is financing the construction of over 700 schools through
a community demand-driven approach. The proposed PforR operation will support these new
PCDP III schools by: (i) providing teaching and learning materials; (ii) training facilitators from
the local pastoralist communities including on provision of pedagogical support such as lessons
planning; and (iii) building management capacity at schools by training principals and cluster
supervisors. This package of support to the newly constructed schools serving pastoralist
communities will help ensure that students receive a conducive learning environment which in
turn is expected to improve their retention in school.

54. In addition, the PforR operation will incentivize timely provision of supplementary grants
(3 - 5 percent top-up) to schools in emerging regions in addition to the basic grants they are entitled
to on a per capita basis. Timely delivery of school grants is one of the most critical constraints
faced by schools in the emerging regions. Of the 40 percent of schools that do not receive their
school grants on time, the majority are in the emerging regions.45 The delays in availability of
funds inhibit the schools’ ability to implement their SIPs, which in turn, leads to poor learning
environments and serious retention challenges. The additional funds are also expected to assist
pastoralist woredas since most pastoralists reside in emerging regions.

2.3 Inclusive education in primary and secondary schools

55. Building upon experience and lessons learned from recent pilots46, the PforR will support
provision of supplementary school grants to transform 687 cluster center schools to inclusive
education resource centers (IERCs) to promote mainstreaming of children with special needs in
education. The supplementary grants will be used to: (i) organize awareness raising and training
events; (ii) purchase reference materials on special needs, equipment for assessing needs (e.g.
embossers, audiometers), and educational resources for children with special needs (sign language
dictionary, slate and stylus and tactile learning materials); and (iii) ensure accessible learning
environment (e.g., minor refurbishment). A set of eligibility and selection criteria will be used to
select IERCs with the aim to maximize the number of beneficiaries.

Results Area 3: Improved Quality (Subprograms 2.1, 2.3 and 2.5 of the ESDP V)
56. This results area focuses on the quality of general education, aiming to improve student
learning outcomes in early grade reading (KPI 5) and in English and mathematics (KPI 6). These
indicators have been selected because proficiency in reading during the early grades, and
proficiency in English and mathematics at the end of the primary cycle, are the critical foundations
for future learning in all subject areas.

57. To improve learning outcomes, GEQIP-E will provide support to: (i) improve primary
school teachers’ ability to impart learning (effective teaching practice and adequate time-on-task);

45 In January 2017, half way through the school year, Ethiopia Somali was yet to deliver schools grants to 62 percent of its
schools.
46 Resource centers to support inclusive education have been established on a pilot basis in 113 clusters (out of total number of

7,653 clusters operating in Ethiopia in 20161/17 academic year).

15
and (ii) improve learning environment in schools. Outcomes in this results area will also benefit
from efforts in improvements in O-Class quality under Results Area 1 (RA1) which is critical to
the acquisition of literacy skills in early primary grades.

3.1 Improved teaching practice

58. The key intervention aimed at addressing deficiencies in teaching practice of the existing
stock of teachers will be development and implementation of a school based teacher professional
development program to provide continuous support to teachers. The 2018 WDR Education report
recommends that for in-service professional development programs to be effective, practicality,
specificity, and continuity are key. The WDR also emphasizes that effective teacher training often
is targeted, repeated and with follow-up coaching—often around a specific pedagogical technique.
Specifically, teachers will be supported on pedagogical practice including notably, reading
instruction (for mother tongue teachers), the use of CCA to identify learning gaps and address
them, and incorporation of teaching learning materials (TLM) in the learning process. The anchors
of this support system will be: (1) subject specific key teachers (mother tongue for grades 1 and 2,
English and mathematics teachers for grades 7 and 8 being the priority) who will train and build
pedagogical capacity of teachers in the cluster, (2) supervisors who will visit schools regularly to
observe and advise teachers on classroom practice, and (3) head teachers who have ready access
to classrooms to observe lessons, monitor instructional time and support classroom activities.
Colleges of Teacher Education (CTEs), bolstered by appropriate technical support, will build the
pedagogical leadership capacity of these three groups through training at the CTE level and follow
up visits to clusters.47 Additional support will be provided through peer groups constituted at the
school and cluster level to enable teachers and school leaders to meet regularly to discuss the
challenges they face on student learning and share experience on classroom practice to address
these challenges.

59. To incentivize the different actors (CTEs, cluster schools, supervisors, head teachers, key
subject teachers) to carry out their assigned roles and responsibilities and collaborate as needed, to
build the continuous teacher support system, adequate resources must be provided. To this end,
the Program will ensure that: (a) CTEs receive funding through the budget allocated by Regional
Education Bureaus (REBs), and (b) cluster schools receive enhanced school improvement grants
to finance the training and outreach activities critical for the operationalization of the school based
continuous teacher support system. This system will be implemented in about 2,000 schools
initially, reaching 18,000 or 50 percent of schools by the end of the Program. The initial group of
schools will be from randomly selected woredas in all regions, thereby allowing evaluation of the
intervention at mid-line to inform scaling up nationally.

3.2 Improved learning environment in schools

60. Education literature has extensively established that conducive learning environments
which provide adequate teaching and learning material, especially textbooks, basic facilities like
drinking water, and toilets are critical for producing learning. Not only are schools with poor
learning environments unlikely to be able to deliver effective learning support for children, but

47In-out-in modality will involve training at CTEs or clusters followed by implementation at cluster or school level, which will
then be followed by another refresher training at CTEs or clusters.

16
education research finds that, holding the student's abilities and achievements constant, those in
higher quality schools tend to stay in school.48

61. According to national inspection findings, some 90 percent of schools fall into the
unsatisfactory category (Level 1 and Level 2), flagging the urgent need for improving the learning
environment in those schools. In addition to low teacher quality (described in the preceding
section), education authorities must address the key issues contributing to poor learning conditions
in the school: (i) inadequate availability of textbooks in the classroom; and (ii) ineffective school
improvement planning.

62. Textbooks, which are a critical input to learning, are not available on-time and in sufficient
quantities in the classroom. As a result, at the start of the school year, there are often no textbooks
or just a limited number of them for use by learners during the year. To address this problem, the
Program will support the development and implementation of a system to track the distribution
and delivery of textbooks by woredas to schools.

63. Under GEQIP, the School Improvement Program (SIP) entailing participatory planning
and grants for implementing school improvement activities, was introduced as a means of
improving learning conditions in the school. The SIP is having a marginal impact on this intended
outcome, and therefore must be strengthened through alignment of program targets with the
national inspection standards, and more effective planning to reach these targets. The Program
will therefore support improved planning that is evidence- and results-based as well as more timely
disbursement of school grants to ensure that resources are available on-time to implement the
school improvement plan. The Program will also promote greater transparency and accountability
at the school level for results through school report cards.

Results Area 4: System Strengthening for planning, policy formulation and reform
(Subprograms 1.1, 1.2, 1.3, 2.1, 2.2 of the ESDP V)
64. Sustained improvements in learning outcomes of Ethiopian students will require a sound
education system that delivers high quality inputs to its schools, makes decisions based on
evidence and innovates constantly to improve its performance. The Program will focus on
strengthening the key elements of the overall education system, specifically improved data
collection and analysis, and teacher preparation, to enable its students to achieve higher levels of
learning. This is a cross-cutting area that will support the other results areas to achieve the overall
development objectives of improved internal efficiency, equitable access and quality of education
in general education.

4.1 Improved data collection and analysis of school and student performance for evidence based
decision making
65. To promote evidence based decision making in the education system, the PforR will
support (i) timely and accurate collection of valid and reliable data through existing systems on
school (through the Education Management Information System (EMIS)) and student (through
EGRA and NLA) performance; (b) enhancement of capacity to aggregate, integrate and analyze
data from different sources for better identification of learning gaps; and (c) strengthen the

For example: Eric Hanushek and Victor Lavy. 1994. School Quality, Achievement Bias, and Dropout Behavior in
48

Egypt. LSMS working paper 107. World Bank. Washington, D.C

17
collaborative utilization of analytic findings for planning, designing of interventions, and decision-
making purposes.

4.2 Improved system for teacher preparation

66. The quality of new entrants into the teaching force continues to be weak. Inherent issues
in the pre-service teacher training system need to be addressed to significantly change the quality
of new entrants. First, candidates for the teacher training programs are typically selected from the
weakest academic performers. Second, there is a disconnect between pedagogical and content
related training in the current programs. Third, it is not responsive to the current situation of
Ethiopian classrooms. Recognizing that there is an urgent need for improved teacher preparation,
the Government has prepared a new strategic framework for the development of teachers,
principals and supervisors. To give impetus to the implementation of this strategic framework, the
Program will support piloting of a new four-year degree program for teachers of grades 5-8. This
program will: (i) provide a degree rather than a diploma; (ii) select candidates from grade 12 (rather
than grade 10); (iii) provide concurrent training of knowledge and content; and (iv) use Centers of
Excellence (COEs) to implement the program. The pilot is expected to serve as a model for
development and revision of other pre-service training programs, thereby paving the way for
comprehensive reform of the teacher preparation system.

Investment Project Financing (IPF) Technical Assistance (TA) Component (US$10 million)
67. The Program includes an IPF based TA of US$10 million to strengthen the capacity of the
Government to implement a results-based operation and mitigate implementation risks.

68. The IPF will support achievement of the PDO by (i) addressing key gaps in policy and
capacity at the national and subnational levels to deliver sustained results under the Program; (ii)
preparing the education system to respond to recurrent disasters which undermine the achievement
of results; and (iii) providing support for management of the system to deliver under a results-
based modality.

69. The IPF based TA has three components: (i) enhanced capacity for delivering sustained
results; (ii) emergency response preparedness; and (iii) GEQIP-E management.

IPF Component 1: Enhanced capacity for delivering sustained results (US$500,000)

70. Under this subcomponent, TA will be provided to (i) establish a sound policy framework
for expanding early childhood education in Ethiopia; and (ii) integrate ICT for improved service
delivery.

Subcomponent 1.1: National policy framework for preprimary education (US$250,000)

71. As discussed in earlier sections, high quality preprimary education is critical for Ethiopia
to achieve the key outcomes of improved student learning and completion of basic education.
Although preprimary education has become a major part of government education sector planning,
the absence of a clear policy for Early Childhood Care and Education (ECCE) service delivery is
preventing effective scale-up. Under Results Area 1, the Program will support scaling up of QEAP
to ensure quality O-Class provision in the country, but in order for this effort to be sustainable, an
enabling environment will be crucial. MoE established the National Policy Framework for ECCE
in 2010 under the ESDP III, jointly with the Ministry of Health and Ministry of Women, Children

18
and Youth Affairs. However, ESDP V did not specify any revision of this Policy Framework.
Under the proposed Program, the National Policy Framework will be revised to reflect rapid
changes in the ECCE landscape in Ethiopia, harmonize the multiple policy efforts from the MoE
and REB, and incorporate lessons learned from various interventions in pre-primary education.
Furthermore, this activity will provide a foundation for a roadmap toward comprehensive and
inclusive pre-primary education, which will eventually be extended to early learning for 4- to 6-
year-old children. This subcomponent will finance consultancy services for development of the
National Policy Framework.

Subcomponent 1.2: ICT for education (US$250,000)

72. ESDP V identifies ICT as a means to improve the quality of teaching and learning in
general education. Through its ICT intervention, GEQIP II aims to improve learning conditions,
learning experience, and learning outcomes for learners in selected secondary schools and
universities. Specifically, GEQIP II has supported the provision of e-cloud infrastructure in 300
secondary schools and 10 universities, and the development of e-learning system. As the full
rollout of the ICT infrastructure is expected to be completed by May 2018, it will not be possible
to assess its implementation and impact on the quality of teaching and learning within the GEQIP
II period. Hence, the IPF component will provide support to conduct a study to review
implementation challenges, assess the impact of introducing ICT in secondary schools, and make
recommendations for policy reform and future interventions.

IPF Component 2: Emergency response preparedness (US$1.5 million)

73. Ethiopia is highly vulnerable to natural disasters, in particular drought, food shortages and
adverse nutrition outcomes. Twenty-nine percent of the population is absolute poor, 44 percent
suffer from chronic malnutrition, and an estimated 43 percent (46 percent of the rural population)
are vulnerable to absolute poverty. The World Bank’s recent regional study on the quality of
education highlights evidence from a number of studies which show that natural disasters reduce
the educational attainment of the rural poor, particularly girls. Enabling the education system to
cope with and respond efficiently to such disasters is an important area of ensuring that all of
Ethiopia’s children benefit from enhanced quality of schooling. This is especially important as the
population living in drylands and vulnerable to weather shocks and climate change is expected to
increase by 2030.

Subcomponent 2.1: Strategy for restoring education services in response to disaster (US$1.5
million)
74. The IPF-TA component will provide technical assistance to enhance the capacity of the
Ministry of Education (MoE) and of the relevant regional and woreda offices to anticipate, prepare
for and implement an emergency plan to cope with drought (food and water insecurity) and other
disasters.

75. A detailed strategy will be developed by the MoE which will identify the: (i) areas and
schools that are vulnerable in the drought “hotspot” woredas; (ii) interventions that would be
promoted to mitigate the risk (for instance, ensuring there is resilient water supply at the school);
(iii) protocols for triggering the disaster response in schools; (iv) detailed design of the
interventions that would be implemented or scaled up in the event of a disaster (such as school

19
feeding and emergency provision of water); and (v) appropriate implementation and financing
mechanisms and/or scaling up of these mechanisms including adequate budget allocations.

76. The operation will also invest in building capacity of regions and woredas to effectively
implement the strategy in case of an emergency. This capacity enhancement will include training
of regional, woreda and schools on emergency preparedness in line with the strategy.

Subcomponent 2.2: Contingency emergency response component (US$0)

77. The IPF component will also include a zero allocation Contingency Emergency Response
Component to provide the Government with the option of accessing funds when an emergency is
declared in any of the country’s regions as a result of a disaster.49 The operation will provide up to
US$5 million from the IPF component for emergency response in line with the agreed strategy if
the Government chooses to utilize this facility. The financing will be transferred to the MoE,
regions, or woredas. They could receive an amount of up to US$5 million to implement the
emergency interventions.

IPF Component 3: GEQIP-E management and evaluation (US$8 million)

Subcomponent 3.1: Program management (US$4 million)
78. The IPF-TA component will provide support to improve Program management,
implementation, monitoring and evaluation. First, it will provide support for operations, capacity
building activities, and hiring of key consultants at the MoE and REB levels to effectively
coordinate, implement and monitor the Program. Specifically, consultants will be hired for the
Program Coordination Office (PCO), technical directorates, financial management, procurement
and contract administration, ethics and anti-corruption, and safeguards. The IPF component will
also enhance REBs' capacity in Program coordination; procurement management; and safeguards.
The four emerging regions will receive increased capacity and technical support of this nature,
given their tremendous needs.

Subcomponent 3.2: Program evaluation (US$4 million)

79. Second, the IPF component will finance comprehensive Program evaluations including the
SIP and school grant (SG) expenditures, at mid-line and end of the Program. The objectives of
Program mid-line and end-line evaluations are: (i) to review implementation challenges and
progress towards achievement of the PDO and result indicators, and provide guidance on necessary
adjustments to Program interventions; (ii) to assess the effectiveness and impact of the Program;
and (iii) generate evidence for improving effectiveness of the subprograms, specifically SIP/SG.
This subcomponent will also finance the third party validation of results achievement under the
PforR.

80. Program cost and financing. Out of the IDA financing of US$300 million equivalent for
the Program, US$290 million will be channeled through the PforR modality and US$10 million
through the associated IPF-based TA component. The Program expenditure framework will be
composed of two parts: (i) the recurrent non-salary expenditure in the education sector transferred

49 In the event of a disaster in the country, the MoE, through MoFEC, can formally request the World Bank up to US$5 million

from the IPF component in order to respond to emergencies. Funds will be spent on activities that support students to remain in
the school.

20
through the regional and woreda block grant; and (ii) expenditures supported through the special
purpose grant covering school grants, textbook procurement and the teachers’ development
program. 50 The total cost estimate for the Program is US$2,200 million. Funding from the
Government and DPs (including IDA), accounts for 64.8 percent and 21.5 percent, respectively,
of program financing. The financing gap is approximately 13.6 percent.

81. Development Partners. DPs other than IDA, are expected to provide approximately
US$140 million for the Program through a World Bank-administered multi-donor trust fund
(MDTF). As of July 2017, three DPs have committed financing to the Program: £90 million from
DFID, €16.9 million from Finland, and US$4 million from UNICEF. Other DPs such as Norway
and USAID are also expected to contribute to the MDTF, as was the case for GEQIP II. However,
no firm commitments have been made yet. The World Bank will continue to manage the MDTF
and work closely with the DPs throughout Program implementation. MDTF funds will be
disbursed alongside IDA proceeds against the same set of DLIs under the PforR modality.

Table 1: Program Financing (US$2,200 million)

Source Amount (US$ million) % of Total Program
Financing
Government
Regional non-salary recurrent 1,044
expenditure on general education
Woreda non-salary recurrent 384
expenditure on general education (net
of ESPES)
Total Government financing 1,428 64.8
Development Partners
IDA – GEQIP-E 290
IDA – ESPES 42 1.9
UK DfID £90
Finland €16.9
UNICEF 4
Total DP Financing (excl. ESPES) 430 19.5
Financing Gap 300 13.6
Total Program Financing 2,200 100

D. Disbursement Linked Indicators and Verification Protocols

82. A total of 8 disbursement linked indicators (DLIs) and associated disbursement linked
results (DLRs) have been agreed with the Government for the four results areas of the Program.
During the DLI selection process, lessons learned from GEQIP II on potential implementation
bottlenecks and evidence from local and international literature have been take into consideration.
Table 2 provides an overview of the DLIs.

50 Currently school grants, textbooks, and TDP are almost 100 percent financed by DPs.

21
 Table 2: Overview of DLIs
Financing
DLI allocated to DLI
Results Area DLI
Number (IDA + DP) in
US$, million
RA 1: 1 Quality Enhancement and Assurance Program (“QEAP”) 60
Improved for O-Class
Internal 2 Performance-based Awards to school on a timely basis to 50
Efficiency improve internal efficiency
RA 2: 3 Improved girls-to-boys ratio in Grade 8 in Afar, Ethiopia 50
Improved Ethiopia Somali and Benishangul-Gumuz Regions
Equitable 4 Improved availability of Basic School Grants (“Basic 65
Access SG”) and Additional School Grants (“Additional SG”) in
emerging regions
RA 3: 5 Improved teachers’ instructional activities 105
Improved 6 Timely availability of textbooks 70
Quality
RA 4: System 7 Improved availability, quality and use of data 20
Strengthening 8 Improved pre-service teacher training for English and 10
for planning, Mathematics Grades 5-8
policy
formulation
and reform
Total 430
Note: DLI financing includes US$26 million as prior-results.

83. The disbursement of funds will be conditional upon MoE reporting on results for each
DLR, and providing sufficient evidence satisfactory to the World Bank. The evidence may include
verification by independent verification agency/agencies (IVA) contracted by the Government.
The selection of the IVA will take into consideration, capacity of the agency to properly carry out
the verification process in a timely manner and independently from the MoE, and availability for
engagement throughout the Program implementation period. Experience from other World Bank
PforR programs and the ongoing GPE RBF education project in Ethiopia will inform the IVA
selection process.

84. For each of the DLIs, the verification protocol to confirm reported results is clearly defined.
Amounts corresponding to each DLI and DLR have also been agreed upon and where appropriate,
disbursement will be scalable to ensure regular flow of funds. The DLIs and DLRs and their
associated allocations, reporting deadlines, and verification protocols are described in Annex 3.

E. Capacity Building and Institutional Strengthening

85. Capacity building and institutional strengthening activities will be financed under the IPF-
based TA component of the operation (see details in section above). The Program will use existing
government systems for Program implementation, financial management, procurement,
safeguards, monitoring and evaluation. However, the capacity of the education system both
national and regional levels is inadequate and needs to be strengthened to effectively deliver results
under the Program. Specifically, the IPF component will support the hiring of key consultancy
services and the provision of training programs in order to enhance the capacity of implementing
agencies (IAs), from MoE to woreda levels. The design of the Program puts emphasis on building

22
local capacity, especially at the school level (through improved capacity for school improvement
planning and timely availability of resources) and the woreda level (through system for textbook
management, leadership training etc) for sustaining outcomes achieved under the Program.

III. PROGRAM IMPLEMENTATION

A. Institutional and Implementation Arrangements

86. The Program will use existing government systems for Program implementation, oversight,
financial management (FM), procurement, safeguards, monitoring and evaluation (M&E), and
reporting and will aim to strengthen these systems during implementation.

87. At the Federal level, the Program will be implemented by the MoE, Ministry of Finance
and Economic Cooperation (MoFEC), and university faculties of education. The MoE will serve
as the Executing Agency and will have overall responsibility for policy guidance and oversight for
Program implementation. A Program Steering Committee (PSC) will be established to oversee the
coordination, monitoring, and implementation of the Program. The Planning and Resource
Mobilization Directorate (PRMD) of the MoE will be the main implementing agency with the task
of preparing the Annual Work Plan and Budget (AWPB) and carrying out the Program activities,
with the support of MoE directorates and agencies, universities and regional education bureaus
(REBs). A Program Coordination Office (PCO) under the PRMD will be responsible for overall
implementation and coordination of Program activities across MoE directorates and agencies,
universities, and REBs. Channel One Programs Coordination Directorate (COPCD), responsible
for programs/projects financed by the World Bank, under MoFEC will be responsible for financial
coordination of the Program’s finances, and consolidation of financial reports of Regional Bureau
of Finance and Economic Development (BoFEDs), Zonal offices of Finance and Economic
Development (ZoFEDs) and Woreda offices of Finance and Economic Development (WoFEDs).

88. At the regional level, in each of Ethiopia’s nine regions and two city administrations, the
Program will be implemented by REBs, BoFEDs, and Colleges of Teacher Education (CTEs).
REBs have responsibility for overseeing all regional and sub-regional program implementation,
including CTEs and woredas. REBs report to MoE’s PRMD.

89. At the woreda level, the Program will be implemented by Woreda Education Offices
(WEOs), WoFEDs, and schools. WEOs have responsibility for monitoring the Program’s
implementation in schools and report to REBs. Some Regions also have Zonal Education Offices
(ZEOs) and ZoFEDs with oversight of Woreda-level implementation on behalf of the Regional
administrations.

90. At the school level, where most of the Program’s expenditures are incurred, school
management will be responsible for managing all school-level activities and the Parent-Student-
Teachers Associations will have a monitoring role. Cluster Resource Centers in the field will
provide training, management and monitoring support to schools.

91. The MoE will develop and adopt a Program Operations Manual satisfactory to IDA that
will provide detailed guidelines and arrangements for implementation of Program activities to
achieve the agreed DLIs and KPIs of the Program.

23
B. Results Monitoring and Evaluation
92. REBs will have the main responsibility for monitoring Program implementation with the
MoE providing oversight. In addition, REBs will play a critical role in the collection of data from
school and woreda levels. The MoE, specifically the EMIS, General Education Inspection
Directorate (GEID) and Licensing and Relicensing Directorate (LRD) directorates will be
responsible for the aggregation, quality assurance and analysis of the data at the national level. The
findings from the data analysis will then be used to assess progress against indicators in the results
framework. In addition, the National Education Assessment and Examinations Agency (NEAEA)
will be responsible for administering learning assessments and reporting findings on time to assess
progress in quality outcomes.

93. The MoE will evaluate several important interventions to assess their contribution to
achievement of the PDO. These interventions include: (i) textbook delivery and utilization reform;
(ii) O-Class Quality Enhancement; and (iii) piloting of a new model for pre-service teacher
preparation. The Government will also contract one or more independent agencies to verify
achievement of DLIs following pre-agreed protocols. The verification process is expected to
provide both quantitative and qualitative information on the implementation of key interventions
and their impact. For instance, the verification of the school based continuous teacher development
program (TDP) will yield information on additional indicators of improved teaching practice such
as time spent on task. This information will be critical for informing further government efforts on
improving the quality of education.

C. Disbursement Arrangements
94. Disbursements will be made upon the presentation and verification (where needed) of
evidence on attainment of the Program’s DLIs. Details of DLIs, DLRs and the amounts allotted to
each are included in Annex 3.

95. To improve readiness for implementation, the MoE has agreed to complete a number of
important activities before Program implementation commences. These will be the prior results
for the Program for which USD 26 million have been allocated. The disbursement for prior results
is made only upon the achievement of indicators specified as DLI 0 indicators.

96. In addition, USD 40 million will be provided as an advance to be disbursed on Program

effectiveness to facilitate a quick start to implementation of activities. The advance payment will
be used for implementation of activities to achieve Year 1 DLIs. Subsequent disbursements will
be adjusted in line with the number of DLIs that are achieved. The advance amount will be solely
financed from the IDA grant.

97. Upon verification of achievement of the DLIs, funds will be disbursed to the special
account determined by MoFEC for the education sector, which is one of two sources of
financing for recurrent non-salary expenditures at the regional and woreda levels. The other is
block grants to woredas. The government will then use its regular mechanisms for transferring
funds to the regions and woredas to cover Program expenditures.

24
IV. ASSESSMENT SUMMARY
A. Technical (including program economic evaluation)
98. Strategic Relevance and Technical Soundness: The proposed Program is strategically
relevant as it supports not only the Government’s sectoral plans (ESDP V and VI), but also ongoing
policy reforms. Given that the ESDP V is ongoing (2015/16-2019/20), it is critical for the World
Bank and DPs to continue financial and technical support for its implementation. Considering that
ESDP V will end in 2020, the MoE is accelerating implementation to ensure that end year targets
are achieved. The Program can play a critical role in expediting ESDP V results. It will also build
the foundation for the next sectoral plan (ESDP VI) by supporting ongoing initiatives on
curriculum reform, textbook revision and development, teacher development, and expansion of
pre-primary education.

99. The Program is technically sound as its design incorporates lessons learned from GEQIP I
and II and the ongoing ESDP V as well as regional and international experience on interventions
to improve student learning outcomes. The Program will build on the achievements made through
GEQIP I and II, specifically improved availability of education inputs (trained teachers, textbooks,
SIPs and school grants, etc.) to drive the quality agenda forward. To this end, the thrust of the
Program will be on behavior change that ensures effective use of inputs, and collaboration among
key actors for improved service delivery. To provide the incentives for behavior change, Program
financial support will be provided through a results-based financing modality that rewards
outcomes/results. Another innovation to improve the Program’s technical soundness is the
association of an IPF-based TA component with the PforR instrument. This component will be
critical for ensuring the substantial build-up of capacity that is required for effective
implementation of Program interventions. It will also foster harmonized efforts by DPs on
technical support that is directly targeted to Program implementation.

100. Program Expenditure Frameworks: Total Government expenditure on the education

sector is estimated to be approximately US$18.8 billion between 2018 and 2022. This includes all
sub-sectors from pre-primary to higher education including TVET as well as both recurrent and
capital expenditures. The estimated expenditure within the PforR boundaries, comprising non-
salary recurrent costs at subnational levels during the same period, is estimated to be US$2,200
million. Of this amount, US$1,428 million is contributed by the government. US$290 million is
contributed by IDA and about US$140 million by DPs (DFID, Finland, and UNICEF) under the
PforR. There is a currently a financing gap of US$300 million. The IPF component will be financed
solely by IDA with an allocation of US$10 million. US$26 million, or 6 percent of the total
Program budget, are allocated for prior results. The prior results are expected to be achieved in
Year 0 (2017/18) of the Program. Provision of an advance of US$40 million is also provided. The
advance and prior results will be financed solely from IDA.

101. There is currently a financing gap of approximately US$300 million. The financing gap
stems partially from the increasing number of students and teachers in the system. To fill this gap,
three other financing sources have been considered: (i) IDA’s additional financing for Refugees,
(ii) additional financing from the Global Partnership for Education (GPE), and (iii) gradual
financial contributions to school grants from the Government. The risk of the financing gap is
deemed to be modest with regard to achievement of the PDO. The additional financing of (i) and
(ii) above are expected to be available by the end of the second year of the Program. Further, the

25
risk would be mitigated by potential financial gains from the improvement of internal efficiency.
This would help the Ministry to reduce the financing gap.

102. Results Chain Analysis and Selection of DLIs: The proposed results areas, KPI indicators,
intermediate results indicators and DLIs are aligned with the PDO which, in turn, is aligned with
the outcomes of interest of the government program. The four selected results areas correspond
to the PDO; KPIs for assessing progress towards achievement of the PDO are defined for each
results area. The Results Framework (Annex 2) explains the logical connection between activities,
results, and outcomes across each results area. DLIs are selected from among the process
(activities/outputs), intermediate results, and outcome indicators associated with each of the results
areas.

103. Economic Justification: The KPIs of the operation reflect the strong focus on improving
student learning outcomes to raise the quality of human capital in Ethiopia. The first three KPIs
will measure the increase in educational attainment. The remaining three KPIs will assess progress
on learning that is necessary for the development of cognitive skills. The link between earnings
and both educational attainment and cognitive skills is well established, suggesting that
educational attainment and cognitive skills are important determinants of individual productivity
and human capital. Under certain modeling assumptions, the internal rate of return for the Program
is estimated to be 22 percent. This is likely an underestimate based on the cost-benefit methodology
undertaken. As a sensitivity analysis, this rate of return is found to be robust under various
scenarios of the project failing to meet its PDO targets. The analysis demonstrates that the Program
is a worthwhile investment for the Government of Ethiopia and the World Bank.

B. Fiduciary
104. An integrated fiduciary systems assessment (IFA) for the Program was carried out
consistent with Operational Policy/Bank Procedure for PfoR Financing.

105. The IFA entailed a review of the capacity of the sample participating entities on their ability
(i) to record, control, and manage all Program resources and produce timely, understandable,
relevant, and reliable information for the borrower and the World Bank; (ii) to follow procurement
rules and procedures to support the Program development objective and address risks associated
with the Program; and (iii) to ensure that implementation arrangements are adequate and risks
related to fraud and corruption as well as complaints handling mechanism are reasonably mitigated
by the existing framework.

106. Financial management: The 2014 Public Expenditure and Financial Accountability
(PEFA) assessment for the Federal Government notes that major improvements have been made.
Ethiopia has significantly improved its performance over the last three years. However, the PEFA
ratings for regional administrations, while showing improvements, were on average, lower than
those of the Federal Government's. Several of the concerns emerging from the PEFA, are being
addressed through the Expenditure Management and Control Program, GoE’s flagship Public
Financial Management (PFM) reform program.

107. Although improvements are noted, general gaps remain in the areas of property
management, cash control, monthly bank reconciliation, delayed presentation of consolidated

26
audit reports to regions’ councils, inadequate audit coverage by the Office of Regional Auditor
Generals (ORAGs), and weak oversight capacity of the budget and finance standing committee.
In addition to these general weaknesses at woreda level, in the education sector, there is delayed
budget preparation, approval and dissemination process for the special purpose grant affecting the
implementation of the program. Transparency needs to be improved in public disclosure of the
audit reports, budget execution and school grant utilization reports. There continues to be weak
performance of internal audit affecting the oversight on the program, particularly the school grants
fund. Internal control weaknesses are noted on annual financial and school grant audits which
would need to be addressed through enhanced capacity building. Overall, it is the conclusion of
the assessment that the financial management risk is rated as “Substantial”. To address the
challenges and risks noted, mitigation measures are outlined in the Program Action Plan (PAP).

108. Procurement. Major procurement activities under previous World Bank and DPs financed
projects have been handled centrally by the MoE. Other beneficiary entities (REBs, universities
and CTEs) have handled mostly low value contracts using Shopping procedures. Through GEQIP,
MoE has achieved considerable success in efficient and cost-effective procurement of textbooks,
IT equipment and other goods and services. Overall, MoE’s procurement performance
achievements are significant. However, moving forward, this performance could be at risk due to
the following challenges: (i) inadequate qualified procurement proficient staff resulting in sub-
optimum bidding efficiency - delays in preparation of bidding documents, evaluation of bids,
award of contracts, contract signing and contract administration; (ii) weak internal procurement
oversight and weaknesses in the implementation of recommendations from external audits; (iii)
weak coordination between user directorates, co-coordinating directorate and procurement
directorate, leading to delays in procurement initiation, implementation and decision making; (iv)
inadequacy of procurement record keeping and document/information tracking system; and (v)
lack of contract administration capacity and quality verification mechanism.

109. To address these challenges and improve the reliability of the procurement system, key
measures are outlined in the PAP. These include: (i) hiring proficient and experienced procurement
staff in implementing agencies; (ii) establishing procurement performance standards; (iii)
improving procurement information tracking system and documentation, and (iv) strengthening
procurement oversight through regular procurement review meetings, internal control, and annual
procurement audits.

110. Fraud and corruption and complaint handling mechanism. Ethiopia has a robust legal
framework for addressing fraud and corruption risks. The principal institutions responsible for the
fight against corruption are the Federal Ethics and Anti-Corruption Commission (FEACC) and the
Federal Attorney General’s Office. The country has put in place the framework for addressing
fraud and corruption risks as well as the mechanism for handling maladministration, procurement
and corruption complaints. The World Bank will rely on the Government’s system of fraud and
corruption prevention and control. Additionally, a working relationship between the World Bank’s
Integrity Vice Presidency (INT) and the FEACC, has been established through a Memorandum of
Understanding (MOU) signed on October 3, 2011. Arrangements for combating fraud and
corruption and handling complaints have been extended to cover federal institutions (Regulation
No. 12/2000) including GEQIP-E implementing institutions (MoE and universities). Fraud and

27
corruption control is further strengthened through the use of internal auditors who are responsible
for controlling public resources.

111. The results of the FEACC assessment at federal, regional, and woreda levels that include
the MoE, Regional Ethics and Anti-Corruption Commission (REACCs), REBs, BoFEDs, Public
Compliant Handling Offices (PCHOs), indicate that there are general country wide strong features
as well as gaps that need to be addressed to prevent and control fraud and corruption. These include
Ethics and Anti-Corruption (EAC) staffing at least in WoFEDs, WEOs, and PCHOs; building the
capacity of EAC and PCHOs in the areas of recording, organizing, and reporting and information
sharing; increasing the effectiveness of internal auditors through service delivery standards; and
enhancing transparency through periodic information sharing rather than on ad-hoc basis; and
nurturing people’s participation for meaningful impact. Based on this, the fraud and corruption
management risk is rated ‘substantial’. To mitigate the risks and weaknesses noted, the IPF based
TA component will provide capacity building support for ethics and anti-corruption.
112. Conclusion of the IFA. the IFA concludes that the examined program financial
management and procurement systems are adequate to provide reasonable assurance that the
financing proceeds will be used for intended purposes, with due attention to principles of economy,
efficiency, effectiveness, transparency and accountability, and for safeguarding Program assets
once the proposed mitigation measures have been implemented. Appropriate systems to handle the
risks of fraud and corruption, including effective complaint-handling mechanisms, have been
agreed on and established.

Fiduciary management for IPF Component

113. Fiduciary management assessment has been conducted for the IPF component of the
Program. (Details are in Annex 10).

C. Environmental and Social

114. As required by the World Bank, an Environmental and Social Systems Assessment (ESSA)
was conducted to assess the arrangements for managing environmental and social effects in a
manner consistent with PforR financing policies. The ESSA was conducted to (i) identify the
environmental and social risks associated with the Program; (ii) assess the strengths and
weaknesses of the legal, institutional, and implementation frameworks; and (iii) recommend
actions to strengthen national and regional systems and capacity to deliver the PforR in a
sustainable manner.

115. Both positive and negative environmental and social impacts are expected as a result of the
implementation of Program activities. In general, a healthy school environment (physical and
social) is expected because of Program interventions. Specific environmental benefits include
environmental friendly schools and classrooms with improved conditions and facilities for
students. The major social benefits of the Program are: (i) equitable access to education across
regions and for children with disabilities; (ii) mother tongue education; (iii) access to education
for pastoralist communities and emerging regions; and (iv) ensuring gender equality in the
education system.

28
116. Very limited negative environmental and social impacts are expected from ramping and
latrine renovations, and it could be mitigated through best practice methods such as; usage of safety
protocols; awareness raising and training; and temporary storage and disposal of used and expired
chemicals as per the national standards.

117. The ESSA also identified gaps related to institutional arrangements and capacity to prepare
and implement the social and environmental safeguards as well as inadequate budgeting to monitor
implementation and compliance. In addition, there is further scope to strengthen social
accountability and community engagement throughout Program implementation.

118. The ESSA suggested that these challenges be addressed through (i) establishment of an
environment and social management system; (ii) conducting proper and timely awareness raising
briefings/consultations on environment and social impacts of Program activities for
community/Program affected persons; (iii) ensuring Program benefit sharing and equitable access
for non-special needs vulnerable school children; and (iv) conducting bi-annual environment and
social management performance review and annual environment and social audit (details in Annex
6).

119. The anticipated environmental and social risks of the Program are minimal and reversible.
The overall risk rating for the environmental and social safeguards and safety management under
this proposed Program is found to be ‘moderate’. The ESSA has proposed key Program actions to
help implementing agencies overcome the identified environmental, social and safety risks and
improve systems on safeguards management.

120. Activities that could have sensitive, diverse, irreversible or unprecedented adverse impacts
on the environment, and/or affected people, are not eligible for PforR financing, and are excluded
from the Program. Screening of risk for every subprogram during implementation of the Program
will be undertaken. Public consultations on the draft ESSA have been undertaken and the ESSA
has been re-disclosed in country and at the World Bank’s external website.

121. Climate and Disaster Risk screening has been completed. Ethiopia is highly vulnerable to
natural disasters. Recurrent drought and floods are highly likely to affect the provision of education
services, including disruption of school schedules and damage of school facilities. The IPF based
TA will enhance the capacity of the MoE and of the relevant regional and woreda offices to
anticipate, prepare for and implement an emergency plan to cope with drought and other disasters.
The IPF component will also include a zero allocation Contingency Emergency Response sub-
component which the Government will have the option of accessing in case an emergency is
declared in any of the country’s regions as a result of an emergency.

122. Gender: Ethiopia has improved gender parity in basic education over the last decades.
However, gender gaps exist in emerging regions, particularly in upper primary grades. The
Program will promote gender equality by incentivizing: (i) empowerment of girls in upper primary
grades through girls’ clubs; (ii) development and implementation of a life skills training manual
for upper primary education; and (iii) gender-sensitive school improvement planning and school
inspections.

29
123. Citizen engagement: Different stakeholders will be engaged during Program
implementation. At the federal level, the Program will be supported and monitored by a Steering
Committee represented by the government, DPs, and civil society. At the school level,
beneficiaries (parents, teachers, students and other stakeholders) are directly engaged through
Parents, Teachers and Student’s Association (PSTAs). School report cards, one of the Program’s
intermediate outcome indicators, provide public information on school performance and
accountability. Program affected persons will be timely and appropriately consulted and engaged
in the Program.

Environmental and Social Safeguards for IPF Component

124. The IPF based TA component of Program aims to support capacity building and
institutional strengthening activities at different levels of the education sector through the
provision of consultancy services, training programs, and operational support. The IPF based TA
component does not involve any procurement of goods, capital investment or civil works. There
will be no land acquisition and restriction of access to natural resources.

D. Grievance Redressal
125. MoE has been managing complaints and conflicts through its formal structure such as
establishing ad-hoc committees, review meetings, as well as using the community level conflict
redress mechanisms. However, MoE lacks well established and structured Grievance Redressal
Mechanism (GRM) to track and document complaints/conflicts related to GEQIP-E
implementation at all levels. Staff also lack awareness about the need for and objective of GRM.
Hence, MoE’s existing grievance redress system will have to be strengthened through inter alia,
the establishment of in-take locations at different levels.

126. Communities and individuals who believe that they are adversely affected because of a
World Bank supported PforR operation, as defined by the applicable policy and procedures, may
submit complaints to the existing program grievance redress mechanism or the World Bank’s
Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly
reviewed to address pertinent concerns. Affected communities and individuals may submit their
complaint to the World Bank’s independent Inspection Panel which determines whether harm
occurred, or could occur, because of the World Bank’s non-compliance with its policies and
procedures. Complaints may be submitted at any time after concerns have been brought directly
to the World Bank's attention, and World Bank Management has been given an opportunity to
respond. For information on how to submit complaints to the World Bank’s corporate Grievance
Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to
submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

E. Risk Assessment
127. The key risks affecting the overall risk ratings and their mitigation measures are discussed
as follows. First, political and governance challenges associated with the recent social and political
unrest have led to temporary disruptions in education service delivery in some parts of the country.
Any further deterioration in the security situation could affect the impact of the proposed Program.
The Program proposes to mitigate the challenges by targeting gender, disability and geographic
sources of inequity, which can play a role in ensuring that all groups share the benefits of growth.
Second, the response to the recurring drought and floods in the country may affect the ability of

30
the Government to allocate adequate budget for key inputs such as school grants and textbooks.
For this risk, a pilot system for emergency responses will be established through the IPF
component. The system entails functions of both financing and implementation for emergency
responses. In addition, the Program will require the government to increase its contribution to
costs, with official budget heads, related to key education sector inputs such as school grants and
textbooks that have been covered by external partners for the last few years to improve
sustainability. This would secure some funding for school grants and textbooks even when drought
and floods occur in the country. Third, ESDP VI, which the Program will partially support, is yet
to be developed and approved. Although it is expected to pursue the same objectives and
subprograms, large changes in ESDP VI could pose a risk to the PforR operation. It was agreed
that the Financing Agreement would include a clause to ensure that the successor Program does
not compromise achievement of objectives of the PforR. Fourth, delay in decision making, and
limited institutional capacity for implementation and monitoring could arise due to the
involvement of multiple implementing agencies across the entire country, including the MoE,
REBs, WEOs, universities, CTEs, and schools. In order to mitigate this risk, stakeholders from the
central government to regional and, to the extent possible, woreda levels, will be consulted in the
design of subprograms to ensure deeper understanding and ownership. Fifth, there are fiduciary
risks associated with delays in school grant transfers, low budget utilization, weak reporting from
schools, weak internal audit functions, and a weak procurement system. In order to mitigate the
fiduciary risks, the Program has put in place DLIs to expedite the decision-making process and
incentivize achievements, and capacity building measures with a focus on strengthening
implementation and M&E systems at different levels of educational administration. Finally, the
TA component will enhance capacity at woreda and school levels to improve reporting and internal
control functions and enhance procurement capacity at the MoE and REBs.

F. Program Action Plan

128. The Program Action Plan (PAP) was developed based on recommendations of the technical
assessment, Integrated Fiduciary Systems Assessment (IFSA), Environmental and Social Systems
Assessment (ESSA), and risk assessment. The PAP includes key activities/actions agreed with the
Government to achieve Program objectives in general, and the DLIs and their associated DLRs in
particular.

129. Specifically, to mitigate fiduciary risks, the agreed Fiduciary Management Action Plan
(FMAP) will be implemented. This will ensure: alignment of the Program’s annual work plan and
budget with the government budget calendar to expedite timely transfer of funds; annual financial
and school grant audits; strengthening procurement capacity and improving decision making
process; and public disclosure of budget allocation and utilization.

130. Implementation of the Environmental and Social Management Action Plan, including
establishing systems and guidelines, and provision of adequate budget and staffing, will minimize
risks associated with the Program’s environment and social aspects.

131. To ensure timely implementation of Program interventions, the PAP will include
formulation and approval of relevant policies, guidelines, and manuals on Program interventions,
and capacity building for achievement of DLRs.

31
132. The implementation of the PAP will be monitored and reviewed during the joint quarterly
meetings, and semiannual review missions with the MoE and the DPs. See Annex 8 for details.

32
 Figure 2: Results Chain

Result Area Activities/Inputs Outputs Intermediate Outcomes

Results
(1) Improved Development and implementation of a Newly developed school inspection Reduction in Improvement in G2/G1
internal Quality Enhancement and Assurance framework including national standards for GIR at G1 enrolment ratio
efficiency Program for O-Class. O-Class
Increase in Improvement in survival
Number of O-Class teachers who received regular rates to G5
revised in-service training, supervision, attendance in the
and coaching early grades

Developmentally appropriate curriculum

and Teaching and Learning Materials
(TLM) available in O-Classes

At least 75 percent of O-Classes inspected

using new framework and standards
Based on approved guidelines, school School report cards produced and publicly
heads monitor student progression and disclosed in PTA/PSTA and community
on-time enrolment in partnership with meetings
local administrators
Financial awards to best performing
Subnational education authorities carry schools disbursed on a timely basis and
out clear and targeted communication publicized
to raise awareness of the early grade
‘bulge’ issue

Schools produce and disclose report

cards on performance on key indicators
including on-time enrolment and
dropout

Financial awards to schools that show

largest improvements in G2/G1
enrolment ratio and G5 survival rates

33
(2) Improved Develop and implement SIPs that % of schools in emerging regions that have Improved Improved girls to boys
equitable target enrolment of girls separate girls’ latrines female ratio in Grade 8 in Afar,
access enrollments in Ethiopia Somali, and
Develop and implement life skills % of schools in emerging regions Afar, Ethiopia Benishangul-Gumuz
training delivering life skills training Somali, and
Benishangul-
Implement gender mainstreaming % of girls’ clubs in emerging regions Gumuz in
guidelines for girls and boys in upper operating according to improved grades 5-8
primary grades in targeted regions guidelines

Girls’ clubs operationalized in targeted

regions
Timely distribution of school grants to School improvement plans implemented Increased % of Improve in Gross
schools in emerging regions and for primary and Enrollment Ratio in Afar,
Inclusive Education Resource Centers % of PCDP III schools that receive TLM secondary Ethiopia Somali, and
(IERC) package schools moving Benishangul-Gumuz
from Inspection (disaggregated by gender)
Provide TLM packages and training of % of PCDP III schools with trained L1 to L2
facilitators for the new schools facilitators
constructed under the Pastoralist Increase in
Community Development Project III Number of adequately resourced IERCs enrolment of
(PCDP III) with community outreach activities and students with
support of special needs children in cluster special needs
Transform the cluster center schools to schools
Inclusive Education Resource Centers
Number of teachers trained on special
needs provision
(3) Improved Validate, approve and implement a Availability of minimum package of CCA Improved Improved student
quality new school-based continuous teacher in schools classroom learning outcomes in the
professional development program practice of first Phase 1 schools:
Number of supervisors and key teachers existing stock of
CTEs build pedagogical leadership (prioritizing English and Math subject primary teachers 1) Improved G2 Mother
capacity at the cluster level by training teachers) trained by CTEs as measured by Tongue reading (% of
supervisors on how to support and Number of school principals and teachers an index of students, disaggregated
supervise classroom activities trained by supervisors and key teachers average scores by gender, at functional
respectively of inspection fluency level or above)

34
 CTEs build subject specific (Mother Number of trained by CTEs standards related 2) Improved G8 learning
Tongue Reading, English and Math) Number of visits by supervisor and key to lesson outcomes in English and
pedagogical capacity at cluster level by teachers to support continuous school planning, Mathematics in the first
training key teachers based professional development teaching phase 1 schools,
practices and disaggregated by gender
Number of peer group meetings at the assessment (% students at basic
cluster centers practices proficiency level or
above)
Increase in
teacher’s time-
on-task
Develop a module under CTE school Timely availability of school grants at Increased % of
leadership training for evidence- and schools to implement their SIPs primary and
results-based school improvement secondary
planning Utilization of grants in line with the SIPs schools moving
from Inspection
Implementation by school leadership of Timely availability of textbooks in L1 to L2 and L2
evidence- and results-based SIPs with classrooms to L3 or above
disclosure on school grant utilization
and results Increased % of
primary and
Implement a track and trace system for secondary
textbooks schools with
textbooks
available in
classrooms
(4) System Build capacity of the NEAEA, EMIS, Unique IDs for all schools generated and New curriculum
strengthening GEID, Curriculum Development and used reform
Implementation Directorate (CDID), framework
Teachers and Education Leaders Annual education statistics abstract addresses
Development Directorate (TELDD), published by June of same academic year learning gaps in
Mother Tongue and English Language EGRAs and NLAs scores available by general
Development Directorate (MTELDD), May and September respectively every education
Mathematics and Science Improvement other year; detailed analysis report
Center (MSIC) and regions for better published within six-month of
data collection and analysis. administration

35
 Joint report published by EMIS, GEID and
Integrate databases of the various NEAEA using the integrated Education
statistical systems (EMIS, GEID, Database on learning gaps and factors
NEAEA). contributing to these gaps, using EMIS,
School Inspection, EGRA, and NLA data
Conduct and produce analysis reports
of NLAs for grades 4 and 8 in a timely Joint strategic planning report published by
manner CDID, TELDD, MTELDD, MSIC and
NEAEA responding to report in Year 3 and
focusing on interventions related to
curriculum, textbook and learning
materials, teacher training programs, and
student assessment items
Develop, approve and pilot a program New concurrent degree program for Improved
for improved pre-service teacher Grades 5-8 in English and Mathematics quality of new
training launched teacher trainees
(Grades 5-8,
Use pilot findings for strengthening A time-bound plan for expanding pilot to Math and
pre-service teacher training for all all grades and subjects English) as
teachers and all subjects measured by
annual
assessment of
teacher trainees

36
 Annex 1: Detailed Program Description

1. The Government’s ESDP V and VI covers all activities, from pre-primary to higher
education, including TVET, under the MoE’s recurrent and capital budgets. The program for IDA
and multi-donor support (the Program) will finance three out of the six priority programs
established under ESDP V and VI (see Table A1). The three priority programs are: capacity
development for improved management; general education quality; and general education access,
equity, and internal efficiency. The operation will in addition, finance several cross-cutting issues:
gender; special needs and inclusive education; and education in emergencies. General education
covers pre-primary, primary and secondary education (KG to Grade 12).51

Table A1: Boundaries of the PforR Program

PforR
Government ESDP V Program
Program
1. Capacity development for improved management
1.1 Develop a relevant structure, with a clear distribution of mandates and responsibilities
at all levels
1.1.1 Improving the education sector’s organizational structure
1.1.2 Managing the implementation of cross-cutting programs 
1.2 Provide regular gathering, processing and sharing of information to inform decision
making
1.2.1 Gathering and processing education performance data 
1.2.2 Gathering and processing financial data 
1.2.3 Sharing information to inform decision making 
1.3 Promote good coordination and communication within and across levels
1.3.1 Job specifications and operational handbook
1.3.2 Improved use of existing documentation centers and sharing platforms 
1.4 Ensure adequate supply of staff with the right mix of technical and leadership skills in
each post/level
1.4.1 Profiles and recruitment
1.4.2 Professional development: mentoring, training and on-the-job support
1.5 Improve resources and conditions of work
2. Improve quality of general education
2.1 Strengthen teachers’ and leaders’ development
2.1.2 Transform teaching into a profession of choice 
2.1.2 Teachers’ training and professional development 
2.1.3 Leaders’ training and professional development 
2.2 Improve curriculum development and provide sufficient teaching and learning
materials
 Curriculum development 
 Teaching and learning materials 
2.3 Support schools to develop and implement School Improvement Plans (SIP)
 Community participation 
 School environment 
 Teaching and learning 
 School leadership 

51 In the Government program, pre-primary entails different modalities, including center-based intervention (Kindergarten (KG),

O-Class) and informal intervention (Child-to-Child) for 4- to 6-year-old children. The proposed Program will focus on providing
support to O-Class targeted to 6-year-old children, which is offered in the primary school compound.

37
2.4 Provide ICT infrastructure, facilities and resources
 ICT infrastructure for teaching and learning
 Content development for ICT
2.5 Strengthen quality assurance systems
 School inspection 
 Teacher and school leader licensing 
 Assessment and examinations 
3. Improve access, equity and internal efficiency in general education
3.1 Increase access to pre-primary education 
3.2 Increase access, equity and internal efficiency to primary education 
3.3 Expand access to secondary education
3.4 Provide special support program for the four emerging regions 
4. Increase participation and improve quality in adult and non-formal education (ANFE)
4.1 Expand Integrated Functional Adult Education (IFAE) and post-IFAE programs in all
regions
 Design and implement effective IFAE programs
 Design and implement post-literacy programs with community participation
4.2 Improve female participation in IFAE and post-IFAE programs
4.3 Introduce continuing education programs in emerging regions
4.4 Improve the quality of ANFE
4.5 Create a strong and efficient institutional system for ANFE at all levels
5. Increase access, quality and relevance of TVET
5.1 Promote occupational standards development and assessment
 Improved ownership by sectors
 Improved recognition of competence through accessible and quality assessment
and certification services
5.2 Expand trainees’ development and institutional capacity building
 Improve capacity of industry and institution trainers, TVET system leaders and
support staff
 Increased access to TVET through expansion of institutions to all woredas
 Produce well-trained and competent graduates to satisfy industry needs
 Welding capacity building for increased productivity and quality in
manufacturing
5.3 Strengthen Industry extension and technology transfer services
6. Increase access, quality and relevance of higher education
6.1 Offer university expansion and consolidation
6.2 Promote equity enhancement
6.3 Develop relevant programs with emphasis on quality enhancement
6.4 Improve research, technology transfer and community engagement
6.5 Strengthen institutional collaboration, leadership and governance
 Institutional collaboration
 Leadership and governance
7. Cross-cutting issues
7.1 Gender 
7.2 Special needs and inclusive education 
7.3 HIV/AIDS
7.4 Education in emergencies
7.5 School health and nutrition
7.6 Drug and substance abuse prevention

38
 7.7 Water, sanitation and hygiene

2. The Program will support the non-salary recurrent expenditures at regional and woreda
levels during years 2018/19-2019/20 of ESDP V and 2020/21-2021/22 of ESDP VI, through the
PforR financing instrument. The expenditure framework of the Program is illustrated in Figure
A1. An IPF-funded TA component will support capacity development for effective
implementation.

Figure A1: ESDP Expenditure and the World Bank-financed Program Relationship (PfoR only)

3. The PDO is to assist the Government of Ethiopia in improving internal efficiency, equitable
access, and quality in general education. The Program is expected to benefit annually some 27
million students, 520,000 teachers, and 35,000 public primary and secondary schools (including
O-Class) across the country.

4. A detailed description of the activities supported under each results area, the theory of
change that is expected to lead to the achievement of Program objectives and the proposed DLIs
to promote achievement of results is provided below.

Results Area 1: Improved Internal Efficiency (Subprogram 3.2 of ESDP V)

5. The problem of a persistently high gross intake ratio (GIR) and irregular attendance at
Grade 1 is widely known (see Chapter II Section B). However, no concrete strategy has emerged
to mobilize action at the school and community level to address this problem. The Government
has focused on expanding access to pre-primary education as the main intervention to improve
school readiness to reduce incidence of late entry in school and improve chances of success of
students when they enter grade 1. However, attention to the quality of provision is lacking. To
shift attention to quality issues, the Program will provide incentives for: enhancing the quality of
O-Class provision; strengthening school-based monitoring of student progression through the
primary grades; and outreach to parents and communities on the importance of age-appropriate
enrollment and regular attendance in the early grades.

6. Progress in this results area will be tracked through two indicators: Grade 2 to Grade 1
enrolment ratio; and Grade 5 survival rate.

39
7. The selection of sub-programs to support achievement of outcomes is based on the
experience of other countries in the region, specifically South Africa, which was able to realize
rapid efficiency gains by focusing on pre-primary education, outreach to parents on on-time
enrolment, and monitoring of student progression in the early grades.52

1.1 Quality Enhancement and Assurance Program for O-Class in Pre-primary Education
8. ESDP V emphasizes the importance of pre-primary education to reduce Grade 1 dropout
and repetition through better school readiness. The Government is committed to providing pre-
primary education to 80 percent of children by 2020 through a mix of modalities, including O-
Class.53 The growth of O-Class has also made access more equitable, as it is now available in many
previously underserved remote, rural, and poor areas.

9. While O-Class provision continues to expand rapidly, the Government’s focus is gradually
shifting to improving quality. Instructional support materials, including an in-service training
package and a curriculum package with the minimum teaching and learning material (TLM), have
been developed for O-Class teachers and are being used in two emerging regions. The development
of these materials is supported by the Ethiopia Education Results Based Financing (EERBF)
Project (P163608), financed by the Global Partnership for Education (GPE). GEQIP II also
provides school grants for 6-year-olds in O-Class, which is equivalent to per-capita grants for
primary grades.

10. GEQIP-E proposes to build on these efforts by introducing a comprehensive Quality

Enhancement and Assurance Program (QEAP) for O-Class comprising two key components:
Quality Enhancement (QE); and Quality Assurance (QA). The QE component, which improves
pedagogical practices in the classroom, includes teacher preparation and professional development,
curriculum and TLM for O-Class, and training for management and supervision. The QA
component establishes national standards, an inspection process, and EMIS data collection. The
proposed Program provides the incentive for improved coordination between the Directorates of
the MoE working on O-Class quality improvement, without which meaningful results at the
classroom level cannot be achieved.

11. Several quality enhancement elements of the proposed QEAP already exist, however,
neither a systematic review of its quality nor formal approval by MoE has been conducted. In
addition, quality assurance of O-Class through establishing national standards and inspection
framework has not yet been addressed. In the first year of implementation, GEQIP-E will focus on
developing the QEAP framework and implementation plans, including revision of current quality
enhancement activities (e.g., curriculum and teacher training modules for O-Class) by
incorporating lessons learned from the RBF project and regional practices, and development of
aligned national standards, SIP planning, and inspection frameworks for O-Class. The quality
assurance and approval of this comprehensive program will be promoted by DLRs in Year 0 and
Year 1 of the Program.

52World Bank, 2017. Facing Forward: Schooling with Learning in Africa.

53O-Class is a one-year reception class (nine-month program) based in government primary schools for children aged 6 years,
before formal schooling starts at age 7 (Britto et al., 2012, MoE, 2015).

40
12. QEAP will be rolled-out to all schools in Ethiopia in a phased manner. In the first phase,
O-Classes in approximately 2,000 Phase I schools will receive the intensive intervention. This will
be promoted by a DLR in Year 2. By 2022, QEAP is expected to have reached 50 percent of
schools in Ethiopia. This will translate to roughly 18,000 schools in the country receiving TLM
for O-class, training of O-class teachers, training for all cluster supervisors, inspection and SIP
designed for O-classes.

13. In the spirit of emphasis on results rather than delivery of inputs, GEQIP-E will link
disbursement of funds to achievement of outcomes of QEAP, i.e. holistic improvements in quality
of O-class as measured by the approved national inspection standards. At least 90 percent of O-
classes in Phase I schools are expected to upgrade to the highest inspection level as a result of three
years of intensive interventions under QEAP. The Program will, in turn, disburse on actual
improvements in O-class quality as measured by the inspection standards. Compared to the school
inspection for primary, O-Class inspection will focus on measuring teachers’ instructional
practices in early reading and numeracy, through child-oriented activities, play-based learning, and
teacher-child interaction.54

14. Through the establishment of a national pre-primary education policy framework, EMIS
data collection and monitoring systems, the IPF-based technical assistance component will
promote sustainability of O-Class, and facilitate strategic resource allocation and better
coordination between regional and national planning.

1.2 School-based monitoring and incentives to track on-time enrollment of Grade 1 entrants
and uninterrupted progression
15. In line with the Government’s efforts to reduce dropout and absenteeism in primary and
secondary schools through local action,55 the proposed Program supports school-based monitoring
of student attendance, using two internal efficiency indicators: the ratio of Grade 2 enrolment to
Grade 1 enrolment (KPI 1); and an increase in survival rates to Grade 5 (KPI 2).56

16. The Program will support establishment of a school-based monitoring system to raise
awareness of grade repetition and readmission, absenteeism, and dropout, especially in the early
grades. The results of monitoring activities at the school, woreda, and regional levels will be
captured in school report cards that will be publicly disseminated. With support from the Program,
all public primary schools will prepare and publicly display school report cards on school premises
that provide key information on the indicators of interest. Schools will also be provided guidelines
on how to engage with communities on improving outcomes in these key areas.

17. As an additional incentive to schools, annual monetary awards of ETB 30,000. will be
made to the top 10 percent of primary schools nationwide ranked for year-to-year improvements
54 As part of World Bank global initiative, a standardized instrument ‘Measure of Early Learning Environment (MELE)’ is currently

piloted in six regions in Ethiopia. Classroom observation tools of the MELE will be used for developing the inspection standards.
55 Guidelines for Performance-Based Incentive System, SIP Directorate, MoE Ethiopia.
56 While performance-based incentives use two specific criteria of internal efficiency, school-based monitoring will track additional

indicators throughout the system, including e.g., gross/net intake ratio and the ratio of Grade 3 enrolment to Grade 2 enrolment.

41
in the two abovementioned indicators. 57 Guidelines for administration of the program will be
prepared in 2017/18 which will guide the implementation of the program.

18. To ensure that awards are disbursed in a timely manner, PforR financing will be linked to
the percentage of awards that are transferred on time to best-performing schools. Timeliness of
disbursement of awards is critical to establish credibility of the program and create a valid
incentive for behavior change at the school level. This will also be promoted through systematic
publicity of the awards program at the woreda or regional level to ensure system wide awareness
of the program. The design of the publicity campaigns for the awards program will be outlined in
the guidelines for the program. Implementation progress of school-based monitoring, and
incentives for internal efficiency improvements at the school level will be verified by a third party
before disbursements against achievement are made.

Results Area 2: Improved Equitable Access

19. This results area focuses on promoting equitable access to general education by: improving
girls-to-boys ratio in grade 8 in Afar, Ethiopia Somali, and Benishangul-Gumuz (KPI 3);
improving gross enrollment ratio of grades 1-8 in emerging regions (KPI 4); and improving school
participation of children with special needs (IRI 4.3). The Program will support government
initiatives that target these three disadvantaged groups and are backed by strong evidence of
efficacy.

2.1 Improved gender equality in upper primary education

20. While Ethiopia has improved overall gender parity in general education in the last decade,
challenges remain in Afar, Ethiopia Somali, and Benishangul-Gumuz that will need to be
addressed to achieve the gender parity targets set by ESDP V. Within the schooling cycle, gender
disparities in dropout rates are the highest at the upper primary level (grades 5-8).

21. The proposed Program will support three key interventions to improve gender parity in the
three emerging regions with a focus on grades 5-8: (i) empowerment of girls in upper primary
grades through girls’ clubs; (ii) development and implementation of a life skills training manual
for students of upper primary grades; and (iii) gender-sensitive school improvement planning.

22. Girls’ clubs are intended to create safe spaces for girls and revive their interest in
continuing education. They are also a means to engage boys to help change behaviors and prevent
violence against girls. The Program will support development of revised guidelines for making
girls’ clubs operational and support their implementation in upper primary grades (5-8) in Afar,
Ethiopia Somali, and Benishangul-Gumuz with the highest gender disparities in basic education.
Approximately 1,164 Girls’ Clubs58 will be newly established or updated in the three regions.

23. A life skills course will be developed by the Gender Directorate of the MoE, to cover topics
related to sexual reproductive health, menstruation, pregnancy, family planning, gender-based
violence, conflict resolution and leadership. Life skills promote social, cognitive, emotional and
behavioral competencies that are critical in reducing negative or high-risk behaviors (delay the

57 In Year 0 (2017/18), EMIS Directorate will conduct a simulation exercise to ensure the formula results in equitable selection of

schools considering the regional variation.

58 This amounts to 70 percent of all primary schools in the three regions that offer Grade 5 to 8

42
onset of drug use, prevent high-risk sexual behaviors, reduce anger and violence), as well as
numerous positive attitudes, social adjustments, healthy life styles, and, even academic
performance among adolescents.59 This is an extra-curriculum course and it will be delivered as
part of girls’ clubs/adolescent girls’ empowerment program.

24. School improvement planning and school grants (SG) program will be critical in ensuring
that gender-sensitive measures are implemented in targeted schools. SIP Framework and SG
guidelines will be strengthened by the SIP Directorate of the MoE to ensure gender analysis and
explicit targets and actions for enhancing girls’ participation, retention and learning. SIP, and
school leadership and management training programs will also include sensitization of school
principals, teachers and communities with a view to promote gender-sensitive school
improvements and to foster gender sensitive pedagogy at classroom level. The quality assurance
system managed by the GEID will be enhanced to include assessment of gender disparities in
service provision and outcomes during inspections, and specific guidance to head teachers on
improving girls’ outcomes. These interventions have been selected based on solid evidence of their
impact in Ethiopia and other African countries.60

2.2 Increased participation in schooling in pastoralist woredas and emerging regions

25. The proposed Program will build on synergies with the IDA financed Partnerships with the
Pastoral Community Development Program III (PCDP III) to improve participation in general
education of children residing in pastoralist woredas. PCDP III is financing the construction of
over 700 schools through a community demand-driven approach. The proposed PforR operation
will support these new PCDP III schools by: providing teaching and learning materials; training
facilitators from the local pastoralist communities including on provision of pedagogical support
such as lessons planning; and building management capacity at schools by training principals and
cluster supervisors. This package of support to the newly constructed schools serving pastoralist
communities will help ensure that students have a conducive learning environment, which in turn
is expected to improve their retention in school. Special Support and Inclusive Education
Directorate will take the lead in delivering activities within this results area with support of SIP
and other Directorates of the MoE, REBs, woredas and targeted institutions. A needs assessment61
will be conducted to guide resourcing of the newly constructed PCDP III schools.

26. The proposed Program will also incentivize timely provision of supplementary grants (3-5
percent top-up) to schools in emerging regions, in addition to the basic grants they are entitled to
on a per capita basis. Late delivery of school grants is one of the constraints faced by schools in
the emerging regions: of the 29 percent of schools that do not receive their school grants on time,

59 Kibret BT (2016) Life Skills Training (LST) Program for Young People: Justifications, Foundations and Contents. Int J Sch

Cog Psychol 3: 163.

60 (i) Wodon, Quentin T. 2017. Economic Impacts of Child Marriage in Ethiopia: Synthesis Report. Washington, D.C.: World Bank

Group; (ii) Erulkar A, Medhin G. 2014. Evaluation of Health and Education Impacts of a Girls’ Safe Spaces Program in Addis
Ababa, Ethiopia, Addis Ababa: Population Council. (iii) Ashraf, Nava et al. 2017. "Negotiating a Better Future: How Interpersonal
Skills Facilitate Inter-Generational Investment." AEA RCT Registry. May 25 (impact evaluation on Zambia); (iv) Vigneri M.,
Lombardini, S. 2017. Women’s Empowerment in Mali: Impact evaluation of the educational project: ‘Girls CAN – Promoting
Secondary Education in West Africa’. Oxfam. GB; (v) Malhotra, A., A. Warner, A. McGonagle, S. Lee-Rife. 2011. Solutions to
End Child Marriage What the Evidence Shows. Washington, DC: International Center for Research on Women.
61 The needs assessment for PCDP III schools will be conducted to understand the availability of TLM, teachers and other

educational inputs in schools in pastoralist areas covered by the project.

43
the majority are in the emerging regions.62 This situation is all the more critical because schools,
which often receive their grants late due to closures during drought season, could use the grants to
prepare for, and mitigate against, the effects of drought. Delays in availability of funds inhibit
schools’ ability to implement their SIPs, which in turn, leads to poor learning conditions and
serious retention challenges. This supplementary grants are likely to assist pastoralist woredas
since many pastoralists reside in emerging regions.63 The MoE will work closely with the MoFEC
to ensure smooth school grants flow and proper FM and reporting arrangements.

2.3 Inclusive education in primary and secondary schools

27. Building upon experience and lessons learned from recent pilots,64 the proposed Program
supports provision of supplementary school grants to transform 687 cluster center schools into
Inclusive Education Resource Centers (IERCs) to promote inclusion of children with special needs
in mainstream education. The supplementary grants will be provided to cluster center schools to:
organize awareness raising and training events; purchase reference materials on special needs,
equipment for assessing needs (e.g. embossers, audiometers), and educational resources for
children with special needs (sign language dictionary, slate and stylus and tactile learning
materials); and ensure accessible learning environment (e.g. ramps, accessible latrines,
classrooms). A set of eligibility and selection criteria will be used by the REBs to select IERCs
with the aim of maximizing the number of beneficiaries. The development of the cluster center
schools into IERCs will be based on the existing guidelines and plans, recently developed and
approved by the MoE, including, inter alia: Master Plan for Special Needs Education/Inclusive
Education in Ethiopia for 2016-2025, Guidelines for Establishing Resource Centers and Guideline
for Identification and Support to Students with Special Needs in Primary Schools and Good
Practices in the Implementation of Inclusive Education Resource Centers in Ethiopia. Itinerant
teachers in the targeted IERCs will be trained to provide inclusive education to children with
special needs. The training program will rely on the new Common Course Syllabus for Teacher
Education ‘Inclusive Education in Ethiopian Primary Schools’, developed by the MoE.

Results Area 3: Improved Quality

28. This results area focuses on the quality of general education, aiming to improve student
learning outcomes in early grade reading (KPI 5) and in English and mathematics (KPI 6). These
indicators have been selected because proficiency in reading during the early grades, and
proficiency in English and mathematics at the end of the primary cycle, are critical foundations for
future learning in all subject areas. In order to improve learning outcomes, the proposed Program
will provide support to: enhance the quality of O-Class (pre-primary) education (supported under
RA1); improve primary school teachers’ ability to enable learning (effective teaching practice and
increased instructional time in the classroom); and improve learning environment in schools.

62 According to the 2016 SG evaluation survey, about 29 percent of respondents from the school management group reported that
SG did not reach their respective school in time (before October 31 of each year). In January 2017, half way through the school
year, Ethiopian Ethiopia Somali was yet to deliver school grants to 52 percent of its schools (according to the MoE information).
63 The school grants also cover alternative basic education centers which promote enrolment of pastoralist students in the emerging

regions and beyond (for instance, in Oromia and SNNP regions).

64 Resource centers to support inclusive education have been established on a pilot basis in 113 clusters (out of total number of

7,653 clusters operating in Ethiopia in 20161/17 academic year).

44
3.1. Improved teaching practice
29. In education literature, teacher quality has been consistently identified as the most essential
school level factor in improving student learning outcomes. 65 Ethiopia has made significant
investment in teachers’ development and achieved remarkable results in regards to increasing the
number of trained teachers in schools. However, as the licensing written exam results show, the
rapid increase in the number of trained teachers has not fully translated to improvement in the
quality of teachers; hence the need for effective school based continuous professional development
support for the existing stock of teachers. Another challenge that affects teachers’ effectiveness in
Ethiopia is absenteeism from the classroom. The 2015 SDI report shows that, although Ethiopia
fares better than many countries in Sub-Saharan Africa, absenteeism from the classroom is a
serious problem. About 10 percent of teachers are absent from the school and of those 90 percent
present in the school, 27.7 percent are not in the classroom. This shows that school based capacity
development support for teachers needs to be combined with increased supervision of classroom
activities by school leaders to ensure effective utilization of instructional time.
30. Given these major issues, the Program will develop and implement a school-based
professional development program that will provide continuous support to existing teachers to
improve their classroom practice. The 2018 WDR Education report recommends that for in-service
professional development programs to be effective, practicality, specificity, and continuity are key.
In line with these recommendations, the envisioned school based professional development
program will focus on imparting practical pedagogical skills that are associated with better student
learning initially focusing on mother tongue for grades 1 and 2, English and mathematics teachers
for Grades 7 and 8. Through the school based professional development support, teachers’
pedagogical practice will be enhanced, in particular in the following areas: reading instruction; the
use of continuous classroom assessment (CCA) to identify learning gaps66; and incorporation of
teaching learning materials (TLM) in the learning process. During implementation, the ‘anchors’
of the school-based support system will be: (i) key teachers (mother-tongue, English and
mathematics being the priority), who will train and build capacity of teachers; (ii) supervisors, who
will visit schools regularly to observe and advise teachers on classroom practice; and (iii) head
teachers, who have ready access to classrooms to observe lessons, monitor instructional time and
support classroom activities. A time-on-task study will be conducted by a survey firm to assess
teachers’ instructional time in the classroom. The study is expected to help the MoE assess the
effectiveness of the school-based professional development program, particularly in the area of
teacher’s instructional activities. Assessment findings will inform program improvement.

31. Colleges of Teacher Education (CTEs) will build the pedagogical leadership capacity of
supervisors and key teachers through training at the CTE level and follow-up visits to school
clusters.67 Trainings at CTEs will be done through in-out-in modality (for about 15 days in total),
followed by CTEs visiting clusters (at least once a semester). Supervisors and key teachers will
then train teachers and school leaders within the cluster through an in-out-in modality. Additional

65 See McCaffrey, Lockwood, Koretz, & Hamilton, 2003; Rivkin, Hanushek, & Kain, 2000; Rowan, Correnti & Miller, 2002;
Wright, Horn, & Sanders, 1997).
66 One of the main recommendation made by the Ethiopia Striving for Excellence report66 is to improve teachers’ utilization of

CCA to assess students’ mastery of fundamental concepts and tailor their lessons to address gaps. However, according to the
2013 SABER study, the utilization of CCA for learning is at a latent stage in Ethiopia.
67 In-out-in modality will involve training at CTEs or clusters followed by implementation at cluster or school level, which will

then be followed by another refresher training at CTEs or clusters.

45
support will be provided through peer groups constituted at the school and cluster level, which will
enable teachers and school leaders to meet regularly to discuss the challenges they face in student
learning and share experience of the classroom practices that address these challenges. For training
and peer group discussion purposes, teachers and school leaders will visit the cluster at least 2
times a semester. Key teachers will also conduct follow up support visits to schools at least 3
times a year, while supervisors will undertake monthly supervision visits to schools.68 Overall, the
continuous capacity development support for teachers and the increased supervision by school
leaders is expected to improve teachers’ classroom practice, instructional time utilization, and
ultimately student learning outcomes.

32. The school based professional development program and details of the implementation
process will be designed collaboratively by the MoE (i.e. TELDD, MTELDD, MSIC and CDID
directorates), REBs, CTEs, universities and sample clusters and schools. Under the Program, a
comprehensive support package for teachers will be developed by the MoE. The package will
consist of subject and grade specific CCA tools, complementary remedial instructional materials,
training modules that will be used at CTEs and clusters, guidelines for teacher peer groups with
clear expectations and description of roles of supervisors, key teachers, principals and teachers.

33. Adequate resources must be provided to incentivize the different actors (CTEs, cluster
schools, supervisors, head teachers, key subject teachers) to carry out their assigned roles and
responsibilities and collaborate as needed. The proposed Program provides CTEs with budget
allocated by REBs and incremental funding (through school grants) to cluster schools for
operationalizing the school-based continuous teacher support program in about 2,000 schools
initially, and 18,000 (or 50 percent)69 schools by program’s end.70 The incremental funding will
be used to finance the travel and training-related operational costs to enable supervisors and key
teachers to visit their satellite schools at least three times a year. The funding can be also used for
peer group meetings. The initial group of schools will be in randomly selected woredas in all
regions, which will allow for an evaluation of the intervention at mid-term to inform national scale-
up. A phased approach is also recommended as implementing a high-quality in-service program
that involves repeated training and frequent follow-up visits requires capacity at all relevant levels
and has significant cost implications. Through the phased approach the MoE and REBs can build
capacity in the system gradually as well as better prepare themselves to bear the increasing cost of
scaling up the program.

3.2. Improved learning environment in schools

34. Conditions at the approximately 90 percent of schools that, by national inspection standards,
fall into the ‘unsatisfactory’ category are not conducive to learning. Drawing on international
evidence that local action is more effective than national directives for improving the school
learning environment, the main instrument that will be used to affect change in learning conditions
is the School Improvement Program (SIP), first established under GEQIP.

68 The training days and frequency of visits are estimates and are subject to change during the designing process of the program.
69 Phase 1 will cover 5 percent of woredas (2000 schools), Phase 2 will cover another 25 percent of woredas (about 9000 schools)
and Phase 3 will cover 20 percent additional woredas (about 7000 schools).
70 Each cluster will receive a lump sum amount of school grants earmarked to be used for school based teacher professional

development program in the cluster. This money will be managed jointly by schools in the cluster with the involvement of school
leaders and teachers.

46
35. To enhance its effectiveness, the proposed Program first strengthens SIP by aligning its
targets and planning process with the national inspection standards. Capacity development support
will be provided to enable school leaders to use findings from school self-assessments, conducted
using the newly aligned standards, and external school inspections, with a view to preparing
evidence-based and results focused SIPs. Capacity to carry out improved planning will be
developed through school leadership training by CTEs. In addition, the proposed Program
incentivizes more timely disbursement of school grants using DLI 4, so that schools have the
resources they need to implement their SIPs. The proposed Program also promotes greater
transparency and accountability at the school level through school report cards. These report cards,
prepared jointly by woredas and schools, will provide basic information on school characteristics,
utilization of school grants and student outcomes, and will be publicly disclosed. By building the
capacity of school leaders to prepare evidence based and results focused SIPs, by ensuring
availability of resources through school grants to implement the SIPs, and by enhancing
accountability systems that will help ensure implementation of SIPs and achievement of results,
the Program aims to provide a conducive learning environment in schools.

36. Another important driver for improving learning conditions is the availability of textbooks
in the hands of students for utilization in the classroom. Both GEQIP I and II have supported the
provision of textbooks and the PforR will continue this support. However, increased focus will be
on ensuring efficient distribution of textbooks to schools as well as on utilization of textbooks in
the teaching learning process. To this end, the Government will (i) improve timeliness in the
procurement of textbooks and their delivery to regional centers; and (ii) establish an online
textbook distribution and inventory management system. The MoE is incentivized by DLR 6.1 to
improve efficiency in textbook procurement such that at least 80 percent of textbooks originally
planned to be procured at the beginning of the fiscal year (FY) will be distributed to regional
centers by the end of the same FY. In addition, the online textbook distribution and inventory
management system provides the MoE (mainly CDID), regions, and woredas with timely
information on the location and number of textbooks whose delivery to schools is underway. This
would help them to monitor closely, the delivery and the availability of textbooks to schools.
Textbook utilization in the classroom will be periodically evaluated by a survey firm on a sample
basis. Beginning with a pilot in 1,000 schools across all regions during year one, the system will
be rolled out from the second year to eventually cover all schools by the end of the PforR operation.

37. Effective implementation of the school based teacher professional development program
will be incentivized through DLI 5. While such a program will be rolled out to 18,000 schools (or
50 percent), the measurement of the intervention effectiveness is carried out in phase 1 schools.
DLR 5.0 will focus on the development and approval of the framework for the school based
continuous professional development program, while DLR 5.1 will incentivize the training of
supervisors, key teachers and teachers in Phase 1 schools. DLRs 5.2, 5.3 and 5.5 will support the
gradual roll out of the program to at least 90 percent of Phase 1 schools within the Program
lifetime. An independent verifying agency (IVA) will undertake a survey of representative sample
schools in phase 1 school, to ascertain that expansion of the program has been undertaken by
training teachers and school leaders following all the steps that are outlined in the program
framework. DLR 5.4 and 5.6 will incentivize improvements in teachers’ classroom practices as

47
measured by improvements in the composite score of inspection standards 11, 13 and 18 71
incrementally in Phase 1 schools. Hence, school inspections (at the minimum focusing on
standards 11, 13 and 18) have to be conducted frequently in Phase 1 schools in order to measure
changes in the composite score. In addition, a survey of a representative sample of Phase 1 schools
will be undertaken by an independent firm with technical capacity to conduct time-on-task
classroom observations and verify the findings of school inspections.
38. To incentivize improvements in key aspects of the learning environment in schools, DLI 4
and DLI 6 will be used. Specifically, DLI 4 will incentivize timely disbursement of school grants
in order to ensure that schools have the resources they need to implement their SIPs. DLI 6 will
incentivize the timely distribution of textbooks to schools. DLR 6.1 will make sure that at least 80
percent of textbooks in Procurement Plan developed in the beginning of the fiscal year (i.e., July
every year) are delivered to regional centers by the end of the fiscal year. DLR 6.2 will incentivize
the successful system development and operationalization in 1,000 Phase I schools, as a pilot.
DLRs 6.3 to 6.5 will incentivize availability of textbooks in primary schools. Verification of
achievements in both DLIs 4 and 6 will involve desk review of reports and visits to a representative
sample of schools by an IVA.
Results Area 4: System Strengthening for planning, policy formulation and reform
39. Sustained improvements in learning outcomes of Ethiopian students will require a sound
education system that delivers high quality inputs to its schools, and makes decisions based on
evidence, and innovates constantly to improve its performance. The Program focuses on
strengthening two key elements of the education system. First, it provides targeted capacity
development support to improve the MoE’s, universities’ and CTEs’ capacity to design and
implement effective pre-service teacher training programs. Second, it builds capacity to improve
utilization of data for planning and decision-making purposes especially in relation to the first
three results areas.

4.1. Improved system for teacher preparation

40. The quality of new entrants into the teaching force continues to be poor. First, candidates
for the teacher training programs are typically selected from the weakest academic performers.
Second, pedagogical training and content-related training are not aligned in a number of programs
(e.g. PGDT72). Third, pre-service training is not responsive to the current situation of Ethiopian
classrooms. Recently, partly in an effort to address these issues in teacher training programs, the
Government has designed a new strategic framework for the development of teachers, principals
and supervisors. This strategic framework, which is in the last stages of approval, is expected to
play an important and potentially transformational role for pre-service teacher education programs.

71 Standard 11: Teaching is well planned, supported by suitable teaching-learning materials, and is aimed to achieve high
educational results; Standard 13: The leadership of the school and teachers have used appropriate and modern teaching methods
and that helped to increase the participation of all students’; Standard 18: The assessment of students’ performance is accurate;
students are given appropriate feedback. Each standard will have a score out of 100 percent and the composite score will be
calculated as a simple average of the three standards.
72 Currently, pre-service degree programs are conducted through the Post Graduate Diploma in Teaching (PGDT) program. In

this program, trainees will first complete a 3-year degree program in an applied field (i.e. content training). They can then apply
to join the one year pedagogy program to earn their degree in teaching. In general, joining PGDT program is the last option of
applied degree holder. The concurrent program on the other hand will combine content and pedagogy training into a single 4-year
program.

48
It represents an opportunity for improving the quality of the programs and, by extension, the
quality of the teachers produced by the system. The process by which the programs are developed
and/or revised is therefore crucial.

41. One key new area of pre-service training that is planned as part of the new strategic
framework is a four-year degree program for teachers of grades 5-8. This program will: (i) offer
a degree rather than a diploma; (ii) select candidates from grade 12 (rather than grade 10); (iii)
combine training in both content and pedagogy; and (iv) use Centers of Excellence (COEs) to pilot
the program. The proposed Program supports the development and piloting of this new degree
program, focusing on English and mathematics teachers. During implementation, the program will
have a rigorous evaluation component that includes use of pre-post testing to determine
progression of the student teachers, as well as surveys and interviews with key stakeholders to get
a deep understanding of strengths and areas for improvement. The evidence gathered through the
evaluation will be used to make appropriate revisions to both the curricula and modules. The
overall development and implementation process will be incentivized through DLI 6.

42. The development process, which will be supported through technical assistance, will
involve relevant directorates at the MoE level, universities and CTEs. The process will fit within
a bigger objective of capacity building and system strengthening, with a view towards alignment
in the context of other key education activities such as the general curriculum reform and textbook
revision. The process will serve as a model for development and revision of other pre-service
programs. For example, the Government is also planning to revise the pre-service diploma teacher
training programs for grades 1-4, however implementation timeline and guidelines are not yet
ready.

4.2. Improved data collection and analysis of school and student performance for evidence
based decision making
43. Bringing about improvements in internal efficiency, equity and quality requires effective
and collaborative utilization of data at national and regional levels, to diagnose inefficiencies and
learning gaps and to understand variations across and within groups. For example, EMIS data can
illuminate internal inefficiencies in the education sector at the national and sub-national levels and
can identify groups that have high dropout and repetition rates compared to regional and national
averages. Analyses of EGRA and NLA combined with EMIS and inspection data can be used to
identify learning gaps and factors contributing to these gaps. School inspection results will show
input, process and output related gaps schools are faced with. Based on findings from the analysis
of these data, interventions aimed at improving internal efficiencies, equity and quality, can be
more effectively designed and implemented. In addition, effective and relevant mid-term to long-
term strategic plans for the sectors can be prepared.

44. To create such a system, where data is intensively and collaboratively utilized, the proposed
Program provides capacity development support at national and regional levels. The key objectives
of this capacity development support are to: (i) improve the timely and accurate collection of valid
and reliable data through existing systems; (ii) enhance capacity to aggregate, integrate and
analyze data from different sources to identify gaps in the three result areas of the Program; and
(iii) strengthen the collaborative utilization of analytic findings for planning, designing of
interventions, and decision-making purposes.

49
45. In the education sector, while the key building blocks of the data system73 required for
planning and decision making are in place, timeliness and reliability of data remains a challenge.
The annual EMIS reports are often delayed in publication for more than a year, and have some
inconsistencies in the data. The school inspection data are managed manually in MS Excel that
limits the analysis of a large set of data. Findings from NLA, examinations, and other learning
evaluations do not fully reflect planning and decisions for CDID and TELDD. The support from
GEQIP-E includes
 Supporting technical improvements to the systems to enable more automated, reliable, and
timely capture, flow, and aggregation of data from the periphery into robust, centralized
software applications.
 Providing relevant training to data experts from EMIS, GEID and NEAEA and
corresponding REB directorates on data collection, management and analysis processes.
 Providing training and technical assistance to NEAEA to build the agency’s capacity to
conduct quality and comparable EGRA and NLA more frequently and analyze the results in
depth.
 Providing the necessary data collection and management software and equipment to the
relevant directorates both at the MoE and REB levels.
 Supporting the development of a national EMIS policy that sets out clear parameters and
expectations for the operation of data collection processes at all levels, as well as
standardized technical requirements to govern those processes.

46. For data integration and analysis of data from different sources, a critical issue that
contributes to the fragmentation of database across concerned directorates in the MoE is the lack
of a common school code. Currently, different directorates use their own school codes (e.g. EMIS
and NEAEA) or do not use any school code (e.g. GEID) as part of their data collection and
management processes. To address this issue, the GEQIP-E will support the development and
nationwide adoption of a unique school code that will allow data to be integrated across different
data generating systems.

47. Lastly, once the mechanism to integrate data is established, it is important that directorates
at the MoE level continuously work together to analyze data from different sources and use the
findings for planning and decision making purposes. To encourage such collaborations, as part of
the Project, NEAEA, EMIS, and GEID will prepare joint reports, focusing on identifying learning
gaps using NLA and EGRA results as well as assessing factors contributing to these gaps using
EMIS and inspection data. These reports will be shared with other directorates at the MoE level
and departments at the REB level. CDID, TELDD, MTELDD and MSCI will prepare a joint
strategic report, in response to the first report, identifying coordinated interventions to address
gaps and discussing changes and revisions that should be made to curriculum, TLMs, teacher
training programs, and assessment items.

Investment Project Financing – Technical Assistance

48. See Annex 10.

73 These include the EMIS for administrative data, GEID database for detailed inspection data, NEAEA and REBs database for

NLA at grades 4 and 8, examinations at grades 8, 10, and 12, EGRA and EGMA.

50
Implementation Arrangements

49. The Program will use the government system for implementation, oversight, FM,
procurement, safeguards, M&E, and reporting arrangements. The Program is implemented by
several institutions, at various levels.

50. At the Federal level, the Program is implemented by the MoE, MoFEC, and university
faculties of education.

51. The MoE will serve as the Executing Agency and will be responsible for overall
coordination of the Program as well as provide overall leadership and guidance.

52. A Program Steering Committee (PSC) will be established within the MoE to oversee the
coordination and monitoring and to verify progress of the implementation of the Program. The
PSC will be chaired by the State Minister for General Education, reporting to the Minister, and
includes Planning and Resource Mobilization Directorate as secretary, and representatives from
all general education directorates, universities, REBs, and MoFEC. DPs and civil society
organizations can participate in PSC meetings by request from the MoE. The PSC will meet at
least four times a year. Specifically, the PSC will be responsible for
- Providing directions for Program policy and reform;
- Overseeing overall Program implementation and providing operational guidance;
- Providing guidance for addressing constraints and bottlenecks for timely implementation;
- Reviewing progress on the fulfillment of annual DLIs for the smooth functioning of
collaboration with DPs; and
- Addressing critical policy and implementation issues.

53. The Planning and Resource Mobilization Directorate (PRMD) of the MoE will be the
implementing agency of the Program. Under the leadership of Director, the PRMD will be
responsible for overall implementation of the Program with the task of preparing the Annual Work
Plan and Budget and carrying out the Program activities, with the support of MoE directorates and
agencies, universities and REBs.

54. The Program Coordination Office (PCO) will be established under the PRMD to
specifically oversee the implementation of the Program. To effectively manage the Program, the
PCO will be staffed adequately, in line with the tasks to be undertaken, including personnel
required for administrative, logistics and coordination activities; technical expertise for Program
interventions; planning and M&E functions; and fiduciary and safeguards related functions. The
PCO will
- Coordinate the preparation of annual work plans and budgets for approval by the state
minister;
- Provide technical support to all IAs for Program implementation;
- Manage the TA component;
- Supervise and monitor the Program activities to ensure that result areas and DLRs are
achieved and reported on time;
- Monitor and ensure that social, environmental, procurement, and FM requirements are met;

51
 - Consolidate all required technical and financial reporting to effectively implement the
Program;
- Coordinate the undertaking of surveys to generate evidence on the outcomes of Program
implementation;
- Recruit consulting services for its own program coordination support and ensure necessary
externally hired technical and program implementation support team is provisioned to IAs;
- Coordinate with the independent verification agency to verify the achievement of DLRs;
- Liaise with the MoFEC for disbursement of funds to IAs;
- Coordinate with DPs for bi-annual review missions of the Program; and
- Prepare the Program Operation Manual (POM) and appropriate guidelines required for
Program implementation.

55. Procurement Directorate of the MoE will closely work with the PRMD/PCO and will be
responsible for MoE procurements conducted under the Program, and will provide capacity
building support to all IAs.

56. Financial Management Directorate of the MoE will closely work the PRMD/PCO and
will be responsible for managing MoE finances.

57. MoE directorates and agencies will coordinate Program activities and support
PRMD/PCO in the planning, management, monitoring and reporting on the Program
implementation. They are represented in the PSC.

58. Channel One Programs Coordination Directorate under MoFEC will be responsible
for financial coordination of the Program, and consolidation of financial reports of BoFEDs,
ZoFEDs and WoFEDs, in coordination with the PRMD/PCO and respective REBs, ZoFEDs and
WoFEDs. MoFEC is represented in the PSC.

59. Faculties of education of selected universities will implement teacher training programs
in close liaison with the Teachers and Education Leaders Development Directorate (TELDD)of
the MoE. They are represented in the PSC.

60. REBs. The eleven REBs, including the two city administrations, are responsible for
coordinating and implementing the Program at regional level. They are responsible for the overall
quality and timeliness of Program implementation in their respective jurisdictions, including CTEs,
zone and woreda offices. REBs are represented in the PSC

61. Regional Program Steering Committee (RPSC). RPSC, chaired by the head of REB,
with representatives from REB directorates, CTEs, zonal education office, where applicable, and
Bureau of Finance and Economic Development (BoFED), will be set up in each region. The
responsibilities of the RPSC are to (i) oversee the Program implementation at regional level and
provide guidance; (ii) proactively address critical issues that could hinder Program implementation
in the region; and (iii) ensure agreed DLR are met in the region. The Planning Directorate in REBs
will be responsible for overall implementation of the Program in the region. Under the Planning
Directorate of REBs, Regional Program Coordination Office will be established to coordinate the
day-to-day Program implementation.

52
62. CTEs. CTEs, currently 38, will implement primary teacher training programs, in
collaboration with REB and TELDD. They are represented in the RPSC.

63. Bureau of Finance and Economic Development (BoFEDs). BoFEDs, in close

coordination with REBs, will be responsible for financial coordination in the region.

64. Woreda Education Offices (WEOs). At Woreda level, the Program will be implemented
by WEOs, by Woreda offices of Finance and Economic Development (WoFEDs), and by schools.
WEOs have responsibility for monitoring Program’s implementation in schools and report to
REBs. Some Regions also have Zonal Education Offices (ZEOs) and Zonal offices of Finance and
Economic Development (ZoFEDs) with oversight of Woreda-level implementation on behalf of
the Regional administrations.

65. Schools. At school level, where most of the Program’s expenditures are incurred, the main
actors are the beneficiary schools themselves, where the School leadership is responsible for
managing all school-level activities and the Parent-Student-Teachers Associations are tasked with
monitoring them. Cluster Resource Centers in the field will provide training, management, and
monitoring support to schools. All these offices are responsible for implementing specific Program
activities to achieve the agreed DLI targets. The MoE will develop and adopt the POM satisfactory
to the Association.

66. Independent Verification Agencies will be commissioned by the MoE to carry out the
verification of the achievements of the DLRs. Selection criteria for the IVA include, inter alia:
capacity to carry out the verification processes; potential for a medium to long term engagement
for capacity building in the government system; and capacity to act independently of the
implementing agency. Given that the Central Statistical Agency (CSA) of Ethiopia has been
leading DLI verification surveys for other PforR programs in the country, the MoE is considering
the former as a potential IVA for the GEQIP-E. For some verification surveys such as textbook
utilization, the CSA is not necessarily a suitable candidate; in such a case, it could outsource the
task to an independent survey firm.

An organogram for implementation arrangements is shown in Figure A2.

53
Figure A2. GEQIP-E Implementation Organizational Structure

Ministry of Education Ministry of Finance and

(Minister, State Minister) Economic Cooperation

Program Steering Committee

Planning
and
Resource
Mobilizatio

Program Coordination Office

Regional Education Bureaus

MoE Universities
Directorates

Bureau of Finance and

Regional Program Steering Economic Development
Committee

Regional Planning
and Resource
Mobilization

CTEs

Zonal Education Zonal Finance and

Office Economic
Development

Woreda Education Woreda Finance

Office and Economic
Development
Decision/Management flow

Schools
Flow of funds

54
 Annex 2. Results Framework and Monitoring

Intermediate Results
PDO/ KPI Indicators Indicators
Results Areas
(Key indicators to measure (Critical processes, outputs or DLI Unit of Baseline End Target
Supported by
the achievement of each intermediate outcomes # Measure (2016) (2022)
PforR
aspect of the PDO statement) indicators needed to achieve
each aspect of the PDO)
Results Area 1: KPI Indicator 1:
76 90
Improved G2/G1 enrolment ratio –
Percentage (F:76 (F: 85
Internal nation-wide
M:76) M: 85)
Efficiency (disaggregated by gender)
IR Indicator 1.1: Gross intake
Percentage 175.8 140
ratio (GIR) at Grade 1
IR Indicator 1.2: Number of
schools with quality-enhanced 1 Number n.a 18,000
O-Classes
IR Indicator 1.3: % of O- Baseline for Phase 1
Classes in Phase 1 schools 1 Percentage schools based on 90
upgraded through the QEAP 2019/20 Inspection
KPI Indicator 2: Survival 56.5 70
rates to G5 – nation-wide Percentage (F: 57.2 (F: 71
(disaggregated by gender) M: 55.8) M: 69)
IR Indicator 2.1: % of best-
performing schools, having
largest improvement in the
G2/G1 enrolment ratio and G5 2 Percentage n.a 90
survival rates, that receive
performance-based awards by
March 31
IR Indicator 2.2: % of schools
that publicly display school Percentage 0 75
report cards
Results Area 2: KPI Indicator 3: Improved
3 Percentage 63 70
Improved girls-to-boys ratio in Grade 8

55
 equitable in Afar, Ethiopia Somali and
access Benishangul-Gumuz
IR Indictor 3.1: GER of girls
in upper primary in Afar, 39 60
Percentage
Ethiopia Somali and
Benishangul-Gumuz
IR Indictor 3.2: % of primary
schools with grade 5 and higher
in Afar, Ethiopia Somali and
Benishangul-Gumuz that have
Percentage 0 70
girls’ clubs operational
according to improved Girls
Club (GC) guidelines, and
delivering life skills training
KPI Indicator 4:
Gross enrolment rate in Afar,
100
Ethiopia Somali and Percentage 92
Benishangul-Gumuz, Grades
1-8
IR Indicator 4.1: % of schools
that receive basic and additional
4 Percentage n.a. 70
school grants in emerging
regions by November 3074
IR Indicator 4.2: Number of
IERCs with community
outreach activities and support Number 113 800
of special needs children in
cluster schools
IR Indicator 4.3: Enrolment of
students with special needs in
cluster schools benefiting from Number 3,000 24,000
services of resourced and
staffed IERCs

74 Baseline will be available by December 2017 for grants transferred by November 2017.

56
 IR Indicator 4.4: % of PCDP
Percentage n.a. 100
schools with TLM75
Results Area 3: KPI Indicator 5:
Improved Average % of students in
quality Grade 2 who can read at
Percentage 33 50
functional fluency level or
above in Mother Tongue in
Phase 1 schools
KPI Indicator 6: (a) ENG: 74% (a) ENG: 85%
Average % of students in M: 77% M: 88%
Grade 8 who perform at F: 73% F: 84%
basic proficiency level or Percentage (b) Math: 62% (b) Math: 72%
above in English and Math in M: 64% M: 74%
Phase 1 schools F: 59% F: 69%
(NLA 2015) (NLA 2021)
IR Indicator 6.1: Number of
schools benefiting from cascade
training in school-based teacher Number n.a 18,000
professional development
IR Indicator 6.2: % of Phase 1
schools are visited by cluster
supervisors and key teachers at 5 Percentage n.a 90
least three times a year
IR Indicator 6.3: Average score
of composite index of school
5 Percentage 54 70
inspection standards on teaching
practices in Phase 1 schools
IR Indicator 6.4: % of actual -
teaching time relative to (time-on-task survey
scheduled instructional time in Percentage TBD
to be conducted in
Phase 1 schools Year 1 and 2)
IR Indicator 6.5: % of students
having textbooks 6 Percentage 58 70

75 Baseline data will be collected in the first year of implementation as part of the needs assessment.

57
 IR Indicator 6.6: % of L1, L2, (a) Primary
and L3 in school inspection L1: 26.4%
(a) Primary
L2: 63.8%
L1: 15%
(b) Secondary
Percentage L2: 50%
L1: 15.7%
(b) Secondary
L2: 67.3%
L1: 8%
Baseline will be set
L2: 50%
by re-inspection in
2016/17-2017/18)
Results Area 4: IR Indicator 7.1: Use of
System unique school IDs by EMIS, 7 Yes/No No Yes
Strengthening NLA, EGRA, and Inspection
for planning, IR Indicator 7.2: Timely
policy availability of EGRA and NLA 7 Yes/No No Yes
formulation scores
IR Indicator 7.3: New
and reform
concurrent program for Grades 8 Yes/No No Yes
5-8 piloted

Indicator Description

Indicator Description DLIs

Methodology Responsibility
Name (Clear definition Frequency Data Source for data for Data
Responsibility Scalability of
(Number) etc.) for Data Disbursement
collection Collection
Verification (Yes/No)
KPI The ratio of the Annual EMIS EMIS survey EMIS Directorate - -
Indicator 1: number of Grade 2
G2/G1 enrollees to the
enrolment number of Grade 1
ratio – nation- enrollees, calculated
wide as a national average
(disaggregated capturing transition
by gender) between two
consecutive years in
a school-cohort

58
IR Indicator Total number of new Annual EMIS EMIS survey EMIS Directorate - -
1.1: Gross entrants in the first
intake ratio grade of primary
(GIR) at education, regardless
Grade 1 of age, expressed as
a percentage of the
population at the
official entrance age
to the first grade of
primary (age 7),
calculated as a
national average
IR Indicator The Quality Annual Reports from TELDD, TELDD, CDID, CSA or No
1.2: Number Enhancement and (Year 2, 3 TELDD, CDID, SIP will SIP independent
of schools Assurance Program & 4) CDID, SIP, collect and Directorates survey firm
with quality- (QEAP) refers to a third party compile REB
enhanced O- comprehensive verification and school
Classes program comprising reports on
two key components different
in Quality implementation
Enhancement (QE) stage of the
and Quality QEAP.
Assurance (QA) for
O-Class.

The Quality
Enhancement
component includes:
implementation of an
intensive in-service
training for O-Class
teachers with
continuous
supervision and
coaching; provision
of teaching and

59
 learning materials
based on revised
curriculum; capacity
building training for
management and
supervision; and
orientation programs
on early learning to
parents and
communities.

This indicator will

track the number of
O-Classes in primary
schools benefitting
from the Quality
Enhancement
component of the
QEAP program.
IR Indicator Under the QEAP, the Annual GEID, third External GEID Directorates CSA or Yes
1.3: % of O- Quality Assurance (Year 3 & party inspections for independent
Classes in component includes: 4) verification O-Class will be survey firm
Phase 1 development and conducted by
schools implementation of trained woreda
upgraded school inspection for inspectors.
through the O-Class based on
QEAP newly-established Data will be
national standards by compiled,
the SIP Directorate. analyzed, and
submitted by
The inspection the GEID.
framework for O-
Class will consist of
standards on basic
learning environment
and teachers’

60
 instructional
practices as
measured by class
observations.
Drawing on
aggregate percentage
score in the
standards, O-Classes
will be classified into
four levels of
performance, with
Level 3 and Level 4
meeting the national
standards.

This indicator will

measure a
percentage of O-
Classes in 2,000
Phase 1 schools
upgraded in the
inspection level (e.g.,
L1 to L2, L2 to L3)
through the QEAP,
in order to measure
increase in the
proportion of schools
that meet minimum
quality standard.
KPI Percentage of a Annual EMIS EMIS survey EMIS Directorate - -
Indicator 2: cohort of students
Survival rates enrolled in Grade 1
to G5 – who reached Grade 5
nation-wide in primary education.
(disaggregated A ‘synthetic cohort
by gender) method’ will be

61
 applied to calculate
the survival rate by
assuming a group of
students, typically
1,000 who are
enrolled in Grade 1,
and proceed to the
5th grade using data
on enrolment and
repeaters between
each successive
grade. This indicator
illustrates the
situation regarding
retention of students
from grade to grade
in schools, and
conversely the
magnitude of
dropout by grade.
IR Indicator Percentage of best- Annual EMIS and Administrative SIP Directorate CSA or No
2.1: % of best- performing schools SIP, third data on timely independent
performing nationwide which party disbursement survey firm
schools, receive performance- verification from the REBs
having largest based awards on collected by
improvement time, by March 31 the SIP
in the G2/G1 Directorate.
enrolment This indicator will Survey will be
ratio and G5 involve three key conducted by
survival rates, steps on: calculation the third party.
that receive of the G2/G1
performance- enrollment ratio and
based awards G5 survival rates
by March 31 (EMIS); selection of
best-performing
schools based on the

62
 ranking of the year-
to-year improvement
at the school level
(SIP) and publicize
the results; and
monitoring of the on-
time disbursement of
performance-based
awards to the
selected schools
(SIP).
IR Indicator Percent of schools Annual SIP, School grant SIP - -
2.2: % of that produce and compiling surveys, Directorate, with
schools that publicly display REBs reports administrative EMIS Directorate
publicly school report cards on the data from the who will provide
display school production REBs support in
report cards New template of the and utilization checking the data
school report cards of school accuracy of the
on key performance report cards school report
indicators will be cards.
developed, approved,
and disseminated.

Publicizing the
schools report cards
will be measured by
e.g., the post in
school bulletin
boards or
dissemination in the
PSTA or community
meetings.
KPI The ratio of the Annual EMIS, third Surveys EMIS Directorate CSA or Yes
Indicator 3: number of girls to party independent
Improved the number of boys verification survey firm
girls-to-boys in Grade 8,

63
ratio in Grade calculated as an
8 in Afar, average for Afar,
Ethiopia Ethiopia Somali and
Somali and Benishangul-Gumuz
Benishangul-
Gumuz
IR Indictor Total enrolment of Annual EMIS EMIS survey EMIS Directorate - -
3.1: GER of girls in upper
girls in upper primary education,
primary in regardless of age in
Afar, Ethiopia Afar, Ethiopia
Somali and Somali and
Benishangul- Benishangul-Gumuz,
Gumuz expressed as a
percentage of the
eligible official
school-age girls
corresponding to the
same level of
education in a given
school year in these
regions
IR Indictor Share of primary Annual EMIS and SG EMIS and SG EMIS Directorate - -
3.2: IR schools with grade 5 evaluation evaluation
Indictor 3.2: and higher in Afar, surveys
% of primary Ethiopia Somali and
schools with Benishangul-Gumuz
grade 5 and with girls’ clubs
higher in operating according
Afar, Ethiopia to improved GC
Somali and guidelines. The
Benishangul- guidelines will
Gumuz that specify the
have girls’ operational model of
clubs GC, including the
operational delivery of life skills
according to training in schools.

64
improved GC
guidelines and
delivering life
skills training
KPI Total enrolment in Annual EMIS EMIS survey EMIS Directorate - -
Indicator 4: primary education,
Gross regardless of age in
enrolment rate Afar, Ethiopia
in Afar, Somali and
Ethiopia Benishangul-Gumuz,
Somali and expressed as a
Benishangul- percentage of the
Gumuz, eligible official
Grades 8 school-age
population
corresponding to
primary education in
a given school year
in these regions
IR Indicator Share of schools in Annual MoE reports Administrative MoE in CSA or No
4.1: % of emerging regions based on data from the collaboration with independent
schools that (Afar, Ethiopia MoFEC’s WoFEDs and MoFEC survey firm
receive basic Somali, information BoFEDs
and additional Benishangul-Gumuz received from collected by
school grants and Gambella) WoFEDs and the MoFEC,
in emerging which receive the BoFEDs and surveys by
regions by package of basic and through the third party.
November 30 additional school government
grants. The reporting
additional school format; third
grants include grants party
to cluster resource verification
centers which are to
be transformed into
IERCs to support
education of students

65
 with special needs
and additional grants
to schools in
emerging regions.
IR Indicator Number of IERCs Annual EMIS, SG EMIS and EMIS, SIP and - -
4.2: Number established in the program school grant SSIE Directorates
of IERCs with country in line with evaluations, surveys,
community the ESDPV targets reports of the administrative
outreach IERCs on the data from the
activities and outreach REBs
support of activities in
special needs their
children in communities
cluster
schools
IR Indicator Number of students Annual EMIS, SG EMIS and EMIS, SIP and - -
4.3: with special needs program school grant SSIE Directorates
Enrolment of enrolled in cluster evaluations, surveys and
students with schools including reports from administrative
special needs satellite schools and the REBs data from the
in cluster benefitting from the REBs
schools services of resourced
benefitting and staffed IERCs
from the
services of
resourced and
staffed IERCs
IR Indicator Share of newly Annual Needs Surveys and SIP and SSIE - -
4.4: % of constructed PCDP assessment administrative Directorates
PCDP III III schools which and surveys, data from the
schools with receive the package reports from REBs
TLM of TLM in social the REBs
science, math and
languages under the
Program

66
KPI 5 This indicator will be Every two Grade 2 Sample-based NEAEA - -
Indicator: measured by the years EGRA results reading
Average % of Early Grade Reading assessment will
students in Assessment be undertaken
Grade 2 who (EGRA), which is with the
can read at designed to evaluate NEAEA taking
functional the reading fluency a lead.
fluency level and comprehensive
or above in levels of Grade 2
Mother students in seven
Tongue in mother tongue
Phase 1 languages. There are
schools four benchmark
levels of
performance: non-
reader (lowest level);
reading slowly with
limited
comprehension;
reading with
increasing fluency
and comprehension;
and reading with full
fluency and
comprehension
(highest level).

The indicator will

track the percent of
students who are
reading at the highest
two levels, which are
considered as
functional reading
proficiency level.

67
 The results of the
seven languages
assessment from
EGRA will be
averaged with
weights by a share of
the population of the
respective languages
using census data.

Phase 1 constitutes
about 2,000 schools
from a randomly
selected woredas
across all regions
that will be fully
benefitting from the
school-based teacher
professional
development
program during the
Program period.
KPI 6 This indicator will be Every Grade 8 NLA Sample based NEAEA - -
Indicator: measured by the other year, results learning
Average % of Grade 8 National starting assessment
students in Learning Assessment with Year will be
Grade 8 who (NLA) in English 1 undertaken by
perform at and Mathematics, the NEAEA.
basic which conducts
proficiency sample assessment
level or above of students’
in English and academic
Math in Phase performance. The
1 schools performance in the
NLA is classified
into four proficiency

68
 levels: below basic;
basic; proficient; and
advanced.

The indicator will

track the percent of
students who scored
at the highest three
levels of proficiency
combined.

Phase 1 is defined as
in KPI 5.
IR Indicator This indicator will Annual Training and Training and TELDD in - -
6.1: Number track the number of Visiting Visiting collaboration with
of schools primary schools that Report at Reports with a CDID and REBs
benefiting receive a package of cluster and school stamp
from cascade school-based teacher satellite will be
training in professional schools aggregated at
school-based development REBs and sent
teacher (defined under DLR to TELDD
professional 5.0 in the DLI
development Protocol table) at
Grades 1, 2, 7 and 8
by supervisors and
key teachers from
cluster schools.

For half-cycle
primary schools
(Grades 1-4), the
school-based support
will be confined to
Grades 1 and 2.

69
IR Indicator Percentage of Phase Annual Training and Training and TELDD in CSA or Yes
6.2: % of 1 schools that are Visiting Visiting collaboration with independent
Phase 1 visited by a group Report at Reports with a CDID and REBs survey
schools are consisting of at least cluster and school stamp
visited by 1 cluster supervisor, satellite will be
cluster 1 key teacher for schools aggregated at
supervisors mother tongue, 1 key REBs and sent
and key teacher for English, to TELDD
teachers at 1 key teacher for
least three Mathematics at least
times a year three times a year.

While supervisors
provide coaching on
leadership to school
principals, key
teachers focus on
coaching on
pedagogy in
respective subjects.

For half-cycle
primary schools
(Grades 1-4), the
school visit groups
only consist of 1
cluster supervisor
and 1 key teacher for
mother tongue.
Phase 1 is defined as
in KPI 5.
IR Indicator The composite index Annual School External school GEID CSA or Yes
6.3: Average of school inspection inspection inspections independent
score of standards on reports will be survey.
composite teaching practices conducted by
index of refers to a simple woreda

70
school average of scores in inspectors and Specifically,
inspection school inspection data will be the survey firm
standards on standards 11, 12, 13 compiled and that will
teaching and 18. Each analyzed by the undertake
practices in standard will have a GEID. survey for
Phase 1 score out of 100 IR6.2 will also
schools percent. verify the
composite
The standards are score.
defined as follows:
Standard 11:
Teaching is well
planned, supported
by suitable teaching-
learning materials,
and is aimed to
achieve high
educational results;
Standard 13: The
leadership of the
school and teachers
have used
appropriate and
modern teaching
methods and that
helped to increase
the participation of
all students;
Standard 18: The
assessment of
students’
performance is
accurate, students are
given appropriate
feedback.

71
 Phase 1 is defined as
in KPI 5.
IR Indicator This indicator will Annually Sample Classroom TELDD - -
6.4: % of track the percentage survey observations (by
actual of classroom time through an commissioning
teaching time scheduled for unannounced the survey and
relative to teaching that is school visit finalizing the
scheduled actually used by the will be report)
instructional teacher for teaching. undertaken by
time in Phase The indicator will be a survey firm.
1 schools measured through
sample based
classroom
observations through
an unannounced
school visits to a
sample of Phase 1
schools. The survey
will be undertaken
by an independent
agency with a
technical capacity to
undertake time-on-
task observations.
IR Indicator This indicator will Annual Sample A CDID CSA or Yes
6.5: % of track the percent of survey representative (by independent
students schools that have sample of commissioning survey
having distributed textbooks schools will be the survey and
textbooks in to students by surveyed by a finalizing the
Phase 1 October every year. survey firm to report)
schools determined
timely
availability of
textbooks.
IR Indicator The school Annual School External school GEID - -
6.6: % of L1, inspection inspections inspections

72
L2, and L3 in framework consists will be
school of 26 standards on conducted by
inspection school inputs, woreda
processes and inspectors and
outcomes. Based on data will be
aggregate percentage compiled and
score in these 26 analyzed by the
standards, schools GEID.
are classified into 4
levels of
performance, with
level 3 and level 4
meeting the national
standards.

This indicator will

track the percent of
schools that are
classified at level 1,
level 2 and level 3 in
school inspections,
in order to measure
reduction in the
percent of schools
that don’t meet
standard.
IR Indicator Unique school IDs Annually Data Data submitted EMIS, GEID, and CSA or Yes
7.1: Use of refers to newly submitted by by EMIS, NEAEA independent
unique school developed unique EMIS, GEID GEID and survey
IDs by EMIS, and systematic and NEAEA NEAEA will
NLA, EGRA, school IDs that will be reviewed to
and Inspection be developed EMIS check whether
and will be or not the
nationally adopted at school ID is
all levels (REB, incorporated
zones, woreda and

73
 schools), and by key correctly or
directorates (GEID not.
and NEAEA) in their
data sets.
IR Indicator This indicator tracks Annual Reports from Reports and NEAEA CSA or Yes
7.2: Timely the timely NEAEA data submitted independent
availability of undertaking and by the NEAEA survey
EGRA and ultimately reporting on agreed
NLA scores of EGRA and NLA deadlines will
raw scores, which be reviewed.
are critical sources of
data to measure
progress in learning
and modify
interventions.
IR Indicator The concurrent Annual Reports from TELDD will TELDD CSA or Yes
7.3: New program refers to a TELDD collect and independent
concurrent four-year degree pre- compile reports survey
program for service program that on different
Grades 5-8 provides concurrent implementation
piloted training on content stage of the
and pedagogy. program from
responsible
Piloting will involve directorates
development of the and
training curriculum institutions.
and modules,
training of new
entrants (for the first
two years within the
Program life time)
and evaluation of the
program during
training.

74
The piloting will
take place in three
universities which
have been identified
as Centers of
Excellence (CEOs).

75
 Annex 3: Disbursement-Linked Indicators, Disbursement Arrangements and Verification Protocols

Disbursement-Linked Indicator Matrix

Total As % of DLI
Financing Total Baselin
Allocated Financing e Indicative timeline for DLI achievement
to DLI Amount
(US$ m) (%)

IDA DP Year 0 Year 1 Year 2 Year 3 Year 4

2017/18 2018/19 2019/20 2020/21 2021/22
DLI 1: Quality n.a DLR 1.0: DLR 1.1: DLR 1.2: DLR 1.3: DLR 1.4:
enhancement and Quality Inspection Quality 20% Level 1 90% Level 1
assurance program for O- enhancement framework Enhancement O-Classes in O-Classes in
Class (IR 1.3) materials developed for and Assurance Phase 1 Phase 1
developed and O-Class, Program for O- schools schools
translated; validated and Class upgraded to upgraded to
Training of approved implemented higher level higher level
Trainers in Phase 1 (scalable) (scalable)
completed. schools
Allocated amount: 40 20 10% 5% 10 0 0 5 10 5 5 5 15 5
Total allocation: 60 14% 10 5 15 10 20
DLI 2: Performance-based n.a - DLR 2.1: DLR 2.2: DLR 2.3: DLR 2.4:
awards to school on a 60% of best- 70% of best- 80% of best- 90% of best-
timely basis to improve performing performing performing performing
internal efficiency (IR primary primary primary primary
2.1) schools receive schools receive schools receive schools receive
performance- performance- performance- performance-
based awards based awards based awards based awards
by March 31 by March 31 by March 31 by March 31
Allocated amount: 40 10 10% 2% 0 10 2 10 2 10 3 10 3
Total allocation: 50 12% 12 12 13 13
DLI 3: Improved girls- 63% - DLR 3.1: DLR 3.2: DLR 3.3: DLR 3.4:
to-boys ratio in Grade 8 Gender- Girls-to-boys Girls-to-boys Girls-to-boys
in Afar, Ethiopia Somali sensitive SIP ratio in Grade 8 ratio in Grade 8 ratio in Grade 8
Framework in Afar, in Afar, in Afar,

76
 and Benishangul-Gumuz and improved Ethiopia Ethiopia Ethiopia
(KPI 3) girls’ clubs Somali and Somali and Somali and
guidelines Benishangul- Benishangul- Benishangul-
approved by Gumuz Gumuz Gumuz
MoE. increases to increases to increases to
64% 67% 70%
(scalable) (scalable)
Allocated amount: 30 20 7% 5% 0 5 0 5 10 10 5 10 5
50 12% 5 15 15 15
DLI 4: Improved 50% DLR 4.0: DLR 4.1: DLR 4.2: DLR 4.3: DLR 4.4:
availability of Basic Formulas for 55% of schools 60% of schools 65% of schools 70% of schools
School Grants Additional SG receive Basic receive Basic receive Basic receive Basic
(“Basic SG”) and and SG and SG and SG and SG and
Additional School revised School Additional SG Additional SG Additional SG Additional SG
Grants (“Additional Grant by November by November by November by November
SG”) in emerging guidelines 30, 2018 30, 2019 30, 2020 30, 2021
regions (IR 4.1) developed and
adopted
Allocated amount: 45 20 11% 5% 5 0 10 5 10 5 10 5 10 5
65 15% 5 15 15 15 15
DLI 5: Improved teachers’ n.a DLR 5.0: DLR 5.1: DLR 5.2: DLR 5.3: DLR 5.5:
instructional activities (IR Framework for 95% of 80% of Phase 1 85% of Phase 1 90% of Phase 1
6.2 & IR 6.3) school-based supervisors and Schools are Schools are Schools are
continuous key visited by visited by visited by
teacher teachers in cluster cluster cluster
professional Phase 1 supervisors and supervisors and supervisors and
development Schools are key key key
approved by trained teachers at least teachers at least teachers at least
the State three times three times a three times
Minister for a year for year for school- a year for
General school-based based school-based
54% Education continuous continuous continuous
teacher teacher teacher
professional professional professional
development.76 development development
($10 million) ($10 million)

76 Number of visits by cluster supervisors and key teachers will be recorded in the school report card.

77
 DLR 5.4: DLR 5.6:
Score of a Score of a
Composite Composite
Index of Index of
School School
Inspection Inspection
Standards on Standards on
teaching teaching
practices in practices in
Phase Phase
1 schools 1 schools
reaches 62% reaches 70%
($15 million) ($15 million)
(scalable) (scalable)
Allocated amount: 75 30 17% 7% 5 0 20 5 20 5 15 10 15 10
105 24% 5 25 25 25 25
DLI 6: Timely - DLR 6.1: DLR 6.2:
availability of At least 80% Online
textbooks (IR 6.5) of required textbook
textbooks are distribution
at regional and inventory
centers or management
58% Woreda system
(2013)
education operational in
offices by June 1,000 Phase 1
30, 201977 schools ($5
million)
DLR 6.3: DLR 6.4: DLR 6.5:
At least 65% At least 75% At least 80%
of students in of students in of Target
Target Grades Target Grades Schools have
have Target have Target Target
Textbooks78 by Textbooks by Textbooks by

77 This implies that the execution rate of Government textbook plan will be improved from baseline to 80 percent.
78 This will be based on school visit by Curriculum Directorate (CDID) according to the agreed protocol.

78
 October 31, October 31, October 31,
2019. ($10 2020 2021
million)

Allocated amount 40 30 9% 7% 10 5 15 5 10 10 5 10
70 16% 15 20 20 15
DLI 7: Improved DLR 7.0: DLR 7.2: DLR 7.4: DLR 7.6:
availability, quality School ESAA reports Joint report A strategic note
and use of data (IR 7.1 & identification and Annual published by for General
IR 7.2) (“ID”) Inspection EMIS, GEID Education
guideline Reports, using and NEAEA on curriculum
validated, the new unique learning gaps development
approved by IDs, approved by June 30, approved by the
Minister of by the Minister 2020 ($3 Minister by
Education and and published million) June 30, 2021
notified to all by October 31, ($3 million)
regions and 2019 ($2
directorates million)
and Unique
School IDs
issued by
EMIS ($2
million)
DLR 7.1: DLR 7.3: DLR 7.5: DLR 7.7: DLR 7.8:
EGRA report NLA report of EGRA report of NLA report of EGRA report of
of raw student raw student test raw student test raw student test raw student test
test scores scores available scores available scores available scores available
available by by September by May 31, by September by May 31,
June 30, 2018 30, 2019 ($2 2020 ($2 30, 2021 ($2 2022
($2 million) million) million) million) ($2 million)

Allocated amount: 15 5 4% 1% 4 0 2 2 4 1 4 1 1 1
20 5% 4 4 5 5 2

79
DLI 8: Improved DLR 8.0: DLR 8.1: DLR 8.2: DLR 8.3: DLR 8.4:
pre-service teacher Strategic Teacher Teacher Three Centers A progress
training for English framework for training training of Excellence evaluation
and Mathematics concurrent curriculum for modules for start receiving report on the
Grades 5-8 (IR 7.3) program the Concurrent Concurrent new entrants Concurrent
approved and Program Program for the Program
adopted by the approved and approved by the Concurrent approved by the
Minister of adopted by the Minister of Program Minister of
Education Minister of Education Education
Education
Allocated amount: 5 5 1% 1% 2 0 1 1 1 1 1 1 0 2
10 2% 2 2 2 2 2
Total Financing 290 140 67% 33%
Allocated:
430 100 26 83 109 105 107

DLI Verification Protocol Table

Protocol to evaluate achievement of the

# Scalability of DLI and data/result verification
Definition/
Disbursements Verification
DLI Description of achievement
(Yes/No) Data source/agency Entity and
Procedure
1 DLI 1: Quality The Quality Enhancement and Assurance Third Party to be
enhancement and Program (QEAP) refers to a comprehensive agreed with the
assurance program for program comprising two key components, World Bank,
O-Class Quality Enhancement (QE) and Quality Ministry of
Assurance (QA), for O-Class. Education.

The Quality Enhancement component includes:

implementation of a 30 days in-service training
for O-Class teachers with continuous
supervision and coaching (TELDD); provision

80
of teaching and learning materials based on
revised curriculum (CDID); capacity building
training for management and supervision
(TELDD); and orientation programs on early
learning to parents and communities (SIP). The
Quality Assurance component includes
development and implementation of school
inspection for O-Class based on newly-
established national standards (SIP and GEID).

DLR 1.0 is considered achieved when: quality No For DLR 1.0:

enhancement materials, including teacher TELDD in CSA or an
guides and TLM, are developed/revised, and collaboration CDID independent
translated to Mother Tongue languages; and firm verifies
Training of Trainers for in-service training is quality
revised and conducted with CTEs. enhancement
materials have
been developed,
translated and
approved by
Ministry of
Education.

The Ministry of
Education
submits
consolidated
training report
to the World
Bank. The
detailed list of
trainees (at least
name,
affiliation,
contact
information) is

81
 going to be
verified by CSA
or an
independent
firm on sample
basis.
DLR 1.1 is considered achieved when: O- No
Class standards are developed (SIP) and GEID and SIP For DLR 1.1:
inspection framework and checklist for O-Class CSA or an
developed (GEID), reviewed by stakeholders independent
and a group of external technical experts and survey firm will
validated and approved by the Ministry of verify the O-
Education. Class standards
and inspection
framework
approved by the
Ministry of
Education.

For DLR 1.2:

DLR 1.2 is considered achieved when: No SIP, TELDD, CDID Report from
Approved QEAP of O-Class is implemented in and GEID visits to O-Class
approximately 2,000 Phase 1 schools. School of Phase 1
inspection is conducted for 25% of O-Classes schools will be
nationwide, including Phase 1 schools. prepared by
Baseline for inspection levels of O-Classes in GEID and
Phase 1 schools will be established in Year 2. verified by a
CSA or an
The inspection framework for O-Class will independent
consist of standards on basic learning survey firm in
environment and teachers’ instructional line with
practices as measured by class observations. approved
Based on aggregate percentage score in the program.
standards, O-Classes will be classified into four
levels of performance, with Level 3 and Level
4 meeting the national standards.

82
 For DLRs 1.3
DLR 1.3 and DLR 1.4 are considered Yes GEID and 1.4: Re-
achieved when: Re-inspection is conducted for inspection
O-Classes in the Phase 1 schools classified as reports of Phase
Level 1 and Level 2. These DLRs will measure 1 O-Classes
percentage of Phase 1 O-Classes which are from General
classified as Level 1 in Year 1 that are upgraded Education
to higher levels. Inspection
Directorate
verified on a
sample basis
survey by CSA
or an
independent
survey firms.
2 DLI 2: Performance- DLR 2.1 – DLR 2.4 are considered achieved No SIP, EMIS and For DLR 2.1 –
based awards to school when: Performance-based awards are disbursed Program 2.4: Report from
on a timely basis to against two specific criteria: G2/G1 enrollment Coordination Office the Ministry of
improve internal ratio; and survival rates to G5. For the first- Education
efficiency cycle primary schools (those schools having providing list of
G1-G4 only), completion rate in Grade 4 will selected schools
be used for survival rates to G5. by using agreed
award guideline
Best-performing primary schools refer to the and criteria.
top 10 percent of schools in each region that CSA or an
rank the highest in year-to-year improvement in independent
G2/G1 enrollment ratio and survival rates to G5 survey firm
based on the guidelines for the sub-program. verify selection
of schools and
The guidelines refer to a document approved by on-time
MoE, which includes the performance-based disbursement to
award formula, disbursement arrangements, schools on a
communication plan, and monitoring process sample basis.
based on findings of a simulation analysis For schools that
conducted by the EMIS Directorate and a pilot have bank
conducted by the SIP Directorate. account the

83
 Ministry of
Performance-based awards refer to the amount Education will
of 30,000 birr per school and will be disbursed directly transfer
directly to schools using the school bank the award to
account under the responsibility of the SIP their account
Directorate. and produce the
bank transfer
The DLR will disburse if/when the respective statement as an
annual target for delivery of performance evidence. For
awards to best-performing schools by March 31 schools that do
is achieved. not have bank
account the
transfer will
follow
government
procedure.
3 DLI 3: Improved girls- DLR 3.1 is considered achieved when the No EMIS, SIP and For DLR 3.1:
to-boys ratio in Grade 8 gender-sensitive SIP Framework with updated Gender Directorates. CSA or an
in Afar, Ethiopia Somali descriptors and improved girls club guidelines independent
and Benishangul-Gumuz with technical and implementation aspects are survey firm will
defined, validated and approved by the Ministry verify the
of Education. Validation means discussion with attainment of the
internal and external education sector DLI based on the
stakeholders. Approved means by the State validation reports
Minister of General Education. and approval
documents
provided by the
Ministry of
Education.

No: EMIS, SIP and For DLRs 3.2,

DLR 3.2, 3.3 and 3.4 are considered achieved DLR 3.2 Gender Directorates. 3.3 and 3.4: The
when the average ratio of girls to boys in Afar, Ministry of
Ethiopia Somali and Benishangul-Gumuz Yes: Education reports
regions using data reported in EMIS for the DLR 3.3. and prepared by the
DLR 3.4. SIP Directorate

84
 preceding reporting period reaches the agreed jointly with
targets. Gender and
EMIS
Directorates will
be verified
through a
representative
sample survey in
three emerging
regions (Afar,
Ethiopia Somali
and Benishangul-
Gumuz) by CSA
or an
independent
survey firm.
4 DLI 4: Improved This DLI will be met when schools in emerging
availability of basic and regions receive basic and additional school
additional school grants grants by November 30 in accordance with the
in emerging regions agreed targets. For the purposes of this DLI
schools include primary and secondary public
schools of Ethiopia.

DLR 4.0 is considered achieved when SG For DLR 4.0:

guideline with allocation formulas is revised, No SIP CSA or an
validated and approved by the Ministry of independent
Education for the package of: a) basic school survey firm will
grants, b) additional school grants to cluster verify
resource centers to support special needs development,
students, and c) additional school grants to validation with
schools in emerging regions. Additional SG key stakeholders
formulas will be established for cluster center and approval of
schools to be transformed to IERCs and schools the revised SG
in emerging regions. Emerging regions include guidelines based
Afar, Ethiopia Somali, Benishangul-Gumuz and on the validation
Gambella. The basic school grant for pre- report, revised

85
 primary (O-Class) to grade 12 will also envisage guidelines for
support of education of children with special basic and
needs in mainstream schools. Approved means additional SGs,
by the State Minister of General Education. and approval
documents
provided by the
Ministry of
Education.

DLRs 4.1 – 4.4 is considered achieved when For DLRs 4.1 -

the percentage of schools that receive basic and Yes: SIP 4.4: The Ministry
additional school grants by November 30 DLRs 4.1-4.4 of Education
transferred according to the revised and reports prepared
approved SG guidelines acceptable to the World by the SIP
Bank reaches the agreed targets. Directorate based
on the
information from
MoFEC verified
through a
representative
sample survey in
Afar, Ethiopia
Somali,
Benishangul-
Gumuz and
Gambella by
CSA or an
independent
survey firm.
5 DLI 5: Improved teacher DLR 5.0 is considered achieved when: No TELDD in DLR 5.0: The
instructional activities Framework for school based continuous teacher collaboration with comprehensive
development program is developed and CDID package
approved. provided by the
Ministry of
Education to be
verified by CSA

86
The school based continuous teacher or an
professional development support package refers independent
to a comprehensive package that includes: firm.
i) CCA tools and complementary and remedial
instructional guides for Grade 1 and 2 in
seven mother tongue languages and for Grade
7 and 8 English and Mathematics.
ii) Modules to train supervisors and key teachers
at CTEs and teachers at clusters via an in-out-
in modality.
iii) Guidelines for cluster and school based peer
groups mapping role and responsibilities of
implementers.
iv) Monitoring and support tools for supervisors
and key teachers.

Development of the package will be coordinated

by TELDD with participation of CDID,
MTELDD, MSIC, NEAEA, selected CTEs,
universities, clusters and schools. Validation
indicates that the package is presented to
stakeholders including all relevant directorates,
REBs, sample woredas, CTEs, universities,
clusters and schools and accepted. Approval
indicates formal endorsement made by the State
Minister of General Education. No TELDD For DLRs 5.1:
The Ministry of
DLR 5.1 is considered achieved when: Education
In each cluster of the Phase 1 schools, at least a (TELDD)
group of 1 supervisor, 1 key teacher for mother collect the data
tongue, 1 key teacher for English, 1 key teacher from College of
for Mathematics will be trained at least three Teachers
times a year. Education
(CTEs)/REBs
and submits
consolidated

87
 training report.
The detailed list
of trainees (at
least name,
affiliation,
contact
information) is
going to be
verified by CSA
or an
independent
survey firm.
No TELDD
For DLR 5.2,
DLR 5.2, DLR 5.3 and DLR 5.5 are DLR 5.3 and
considered achieved when: In each cluster of DLR 5.5:
the Phase 1 schools, each of the trained Sample of
supervisors and key teachers visit (80%, 85% visiting reports
and 90% for DLR 5.2, DLR 5.3 and DLR 5.5 will be verified
respectively) their satellite schools at least three by CSA or an
times a year. independent
survey firms at
The school visits will be tracked through satellite school
stamped visiting report at the satellite school level on sample
level and a copy will be kept at the cluster basis.
school. The visiting report will be compiled at For DLR 5.4
regional level and sent to the Ministry of and 5.6:
Education. Yes GEID Verification will
be based on a
DLR 5.4 and DLR 5.6 are considered technical third
achieved when: Composite index refers to an party’s review
index of inspection Standards 11, 12, 13, and 18. by CSA or an
70% composite index is considered satisfactory independent
(inspection standard Level 3). Baseline of the survey firms on
composite index will be established in year two performance of
and re-inspection will be done in year 3 and 4. schools on

88
 These inspections are conducted only for improving
targeted teachers, i.e. Grades 1 and 2 mother teaching
tongue teachers and English and Mathematics practice against
teachers in Grades 7 and 8. the composite
index of
inspection
standards on a
sample basis.
6 DLI 6: Timely DLR 6.1 is considered achieved when: At least No CDID For DLR 6.1:
availability of textbooks 80% of textbooks planned in the Procurement The report
Plan procured and delivered to the regional prepared by the
centers (for reprint) or woreda education offices Ministry of
(for new). This is measured by percentage of Education will be
textbooks delivered by June 30th 2019 out of verified by CSA
what is approved in July 2018 by the State or an
Minister of General Education. The Procurement independent
Plan is approved in July every year and is survey firms on
revised as needed throughout the year. sample basis.
The verification
Ministry of Education consolidates textbook checks number
procurement and delivery reports obtained from of textbooks
regions. This report should contain information delivered to
on procurement and delivery of textbooks by regions or
grade and subject to each region and woreda. woredas by June
No EMIS (Online 30th, 2019.
DLR 6.2 is considered achieved when: The textbook distribution
system is operational when it can successfully and inventory For 6.2: CSA or
capture the status of (i) inventory at regional management system) an independent
centers or woreda education offices (ii) delivery with support from survey firm will
to schools (iii) inventory at school level. CDID conduct a
technical audit of
The ‘online textbook distribution and inventory the system to
management system’ refers to a database system ensure that it is
that is capable of recording the progress of technically
distribution of textbooks for all subjects and functional as
grade levels from Ministry of Education down to required and that

89
individual schools and then retaining a record of there are
the inventory of textbooks at 1,000 pilot schools. appropriate
The system should use technologically mechanisms in
appropriate mechanisms to enable the tracking of place to protect
distribution at each step of the textbook and secure
distribution process in order to assist with sensitive data.
identifying blockages and delays in the
distribution process. All users of the system CSA or an
should be able to share data with the system independent
using either Internet data or SMS as appropriate, survey firm will
as well as being able to extract reports on also undertake a
textbook distribution progress in the same way. data quality audit
The system should use suitable security systems to verify that data
to enable users with relevant authorities to is flowing
access online reporting systems to determine the accurately
current status of textbook distribution and school through the
textbook inventories. system and
reporting
accurately on the
status of
textbook
distribution and
inventories. This
will include
conducting a
random review
of textbook
inventories in a
sample of
participating
schools, as well
as interviewing
key users to
verify that the
system is

90
 functioning as
expected.
DLR 6.3 – 6.5 are considered achieved when: Yes EMIS
The online textbook distribution and inventory For DLRs 6.3 –
management system produces a report showing 6.5: CSA or an
students in grades 1 and 2 have mother tongue independent
textbooks and students in grades 7 and 8 have survey firm will
English and Math textbooks in all government visit schools and
primary schools. The availability of textbooks to verify the report
students in school is assessed every October. generated by the
online textbook
The availability and utilization of textbooks to distribution and
students will be surveyed and measured by inventory
CDID across regions with spot checks of a management
random 5 percent of primary schools. system on
sample basis.

CSA or an
independent
survey firm will
visit at least 20
percent of the
schools sampled
by the CDID and
verify the data.
7 DLI 7: Improved DLR 7.0 is considered achieved when: No EMIS DLR 7.0: CSA or
availability, quality and Ministry of Education (EMIS, GEID and an independent
use of data NEAEA) in collaboration with REBs assigns survey firm will
each school in the 2017/18 EMIS data a unique review and
school ID and submit a complete list of schools validate the
containing the new school IDs, the old school consolidated data
IDs, school names, regions, zone and woreda including unique
information. school IDs.

For DLR 7.1,

No NEAEA 7.3, 7.5, 7.7 and

91
 DLRs 7.1, 7.3, 7.5, 7.7 and 7.8 are considered 7.8: CSA or an
achieved when: Raw scores of EGRA and NLA independent
undertaken in sample schools and students survey firm will
(national and Phase 1), without identifiers, is review NLA raw
made available to the World Bank79. data scores and
EGRA for
 Early Grade Reading Assessment (EGRA) is completeness and
an instrument to evaluate early literacy skills use of
focusing on the reading fluency and methodology
comprehension levels of Grades 2 and 3 developed by TA
students. EGRA has been administered in and NEAEA.
Ethiopia since 2010 by the USAID. GEQIP- CSA or an
E will assess the early literacy skills at independent
Grade 2. survey firm will
 National Learning Assessment (NLA) is a also validate the
measurement of system level information on accuracy of the
student learning outcomes and related calculations for
factors. NLA is administered nationally KPI 5 and KPI 6
every four years on a sample basis at Grades values by
4, 8, 10 and 12 in key subjects. replicating the
 Sampling: EGRA and NLA will be analysis.
administered into two sample groups:
nationally representative sample for the
EGRA and NLA, nationally representative
sample from Phase 1 schools. Those
nationally representative sample for EGRA
and NLA could overlap those Phase 1
school.

DLR 7.2 is considered achieved when: ESAA For DLR 7.2:

and Annual Inspection reports prepared using the No GEID and EMIS CSA or an
unique school ID and approved by the Minister independent
and available publicly by October 2019. ESAA survey firm will
is an annual statistical report managed and verify the
availability of the

79 The raw scores will be submitted after clearance by MoE. It will not be disclosed or used for further analysis without MoE consent.

92
produced by Ministry of Education. The data is two reports on
obtained from REBs and city administrations, the website of the
government and non-government higher Ministry of
education institutions, CTEs and regional Education.
technical and vocational training agencies,
bureau or commissions. Annual inspection report
is managed and produced by GEID addressing
key aspects of education quality at the school
level which include input, process and output in
a total of 108 indicators, each of which gives a
score 1 to 4.
GEID, EMIS, CDID, For DLR 7.4:
DLR 7.4 is considered achieved when: The No TELDD, MTELDD, CSA or an
joint report is reviewed by the management MSIC and NEAEA independent
council of the Ministry of Education and survey firm will
approved by the Minister, printed and verify the
disseminated to all directorates and REBs. The availability of the
management council of the Ministry of joint reports in
Education is chaired by the Minister and the directorates
includes all state ministers, agency directors, of Ministry of
PRMD, communication directorate, reform and Education and
good governance directorate and the office of the REBs.
minister as a secretary.

Joint report refers to a report that is prepared

collaboratively by EMIS, GEID and NEAEA by
analyzing the integrated EMIS, inspection, NLA,
EGRA and examinations data. The report will
focus on:
i) Trends and regional variations in student
outcomes including learning outcomes and
internal efficiency outcomes at the minimum
using NLA, EGRA and EMIS
ii) determinants of learning outcomes and gaps
that relate to inputs and process at the minimum
using EMIS and School Inspection

93
 iii) lessons learned and good practices.
iv) Alignment plan to coordinate recommended
interventions

 Reviewed by MoE management council

for the accuracy and reliability of ESAA
(and approval by the Minister)

DLR 7.6 is considered achieved when: CDID No CDID For DLR 7.6:
prepares a strategic note for the curriculum CSA or an
development/revision reviewed by management independent
council of the Ministry of Education and survey firm will
approved by the Minister. The strategic note verify the use of
takes into account the findings from the joint the findings of
report. the joint report in
the strategic note.
8 DLI 8: Improved pre- DLR 8.0 is considered achieved when: No TELDD For DLR 8.0:
service teacher training Strategic framework that includes CSA or an
for English and implementation guidelines for the concurrent independent
Mathematics Grades 5-8 program is approved by the Minister and made survey firm
available to universities. The concurrent program verifies
refers to a four-year degree program that implementation
provides concurrent training on content and guidelines are
pedagogy. available at
universities.

DLR 8.1 and 8.2 are considered achieved No TELDD For DLR 8.1 and
when: Curriculum and module development for DLR 8.2: CSA or
math and English include participation by an independent
TELDD English, TELDD Science and Math, survey firm will
universities (COEs), select CTEs and teachers. review the
There will be a validation process with experts teacher training
and stakeholders, a verification check in part curriculum and
utilizing the regular government process with an modules for
enhanced focus on ensuring quality and English and
Mathematics and

94
alignment, and approval by Ministry of the validation
Education. and approval
documents
provided by the
Ministry of
Education. CSA
or an
independent
survey firm will
prepare a report
that includes
interviews of
selected
stakeholders and
responsible
parties on the
development and
validation
process and
whether or not it
was inclusive
No TELDD and
collaborative.
DLR 8.3 is considered achieved when: The
three COEs provide detail concurrent programs For DLR 8.3:
to the Ministry of Education. New entrants to the CSA or an
three COEs start receiving the concurrent independent
program. survey firm will
verify the list of
the new entrants
for the
No TELDD concurrent
program at the
three COEs.
DLR 8.4 is considered achieved when: The
three COEs submit a progress evaluation of the

95
concurrent program and evaluation will include For DLR 8.4:
(but not be limited to) pre-post assessment to CSA or an
measure learning outcomes, interviews with independent
teacher educators, student teachers and other key survey firm will
stakeholders. The evaluation reports are review the
submitted to and approved by the Ministry of implementation
Education. and evaluation
reports which
will be based on
visits to COEs
and interviews
with teacher
educators and
trainees.

96
 World Bank Disbursement Table

World Bank
financing Minimum DLI Maximum DLI
allocated to value to be value(s) expected Determination of Financing
the DLI Deadline for DLI achieved to trigger to be achieved amount to be disbursed
# DLI
(Additional Achievement80 disbursements of for World Bank against achieved and
DPs’ World Bank disbursements verified DLI value(s)4
contributions) Financing2 purposes3
in US$ M
1 Quality 40 (20) DLR 1.0: June DLR 1.0: DLR 1.0: n/a DLR 1.0: Pass/Fail. Full
enhancement and 2018; Development and DLR 1.1: n/a disbursement upon
assurance DLR 1.1: June translation of the DLR 1.2: n/a achievement. USD 10 million
program for O- 2019: program materials DLR 1.3: from IDA
Class DLR 1.2: June Upgrading of
2020; DLR 1.1: Approval 20% of O-Classes DLR 1.1: 1 Pass/Fail. USD 5
DLR 1.3: June of program in Phase 1 schools million for approval from
2021; DLR 1.4: DPs.
DLR 1.4: June 2022 DLR 1.2: Upgrading of
Implementation of 90% of O-Classes DLR 1.2: Pass/Fail. Full
the QEAP in O- in Phase 1 schools disbursement upon
Classes in Phase 1 achievement. USD 10 million
schools (additional USD 5 million
from DPs)
DLR 1.3:
Upgrading of 10% DLR 1.3: USD 2.5 million
of O-Classes in for every 10% of O-Classes
Phase 1 schools upgraded to higher level
against approved inspection
DLR 1.4: standards up to USD 5
Upgrading of 30% million
of O-Classes in (additional USD 2.5 million
Phase 1 schools for every 10% of O-Classes
upgraded to higher level
80If the DLI is to be achieved by a certain date before the World Bank Financing closing date, please insert such date. Otherwise, please insert the World Bank Financing closing
date.

97
 against approved inspection
standards up to USD 5
million from DPs)

DLR 1.4: USD 2.15 million

for every 10% of O-Classes
upgraded to higher level
against approved inspection
standards up to USD 15
million (additional USD 0.7
million for every 10% of O-
Classes upgraded to higher
level against approved
inspection standards up to
USD 5 million from DPs).
2 Performance- 40 (10) DLR 2.1: March 31, DLR 2.1: 60% of n/a DLR 2.1 & 2.2: Pass/Fail.
based awards to 2019; best-performing USD 10 million disbursed on
school on a DLR 2.2: March 31, schools receive achievement of respective
timely basis to 2020 awards by March annual target
improve internal DLR 2.3: Mar 31, 31, 2019 (additional USD 2 million
efficiency 2021 disbursed on achievement of
DLR 2.4: Mar 31, DLR 2.2: 70% of respective annual target from
2022 best-performing DPs).
schools receive
awards by March DLR 2.3 & 2.4: Pass/Fail.
31, 2020 USD 10 million disbursed on
achievement of respective
DLR 2.3: 80% of annual target
best-performing (additional USD 3 million
schools receive disbursed on achievement of
awards by March respective annual target from
31, 2021 DPs)

DLR 2.4: 90% of

best-performing
schools receive

98
 awards by March
31, 2022
3 Improved girls- 30 (20) DLR 3.1: Dec 2019 DLR 3.1: Gender- DLR 3.1: n/a DLR 3.1: Pass/fail. USD 2.5
to-boys ratio in DLR 3.2: Dec 2020 sensitive School DLR 3.2: 64% million for approved gender-
Grade 8 in Afar, DLR 3.3: Closing Improvement DLR 3.3: 67% sensitive (SIP) framework;
Ethiopia Somali date Planning (SIP) DLR 3.4: 70% and USD 2.5 million for
and Benishangul- Framework and approved revised girls’ clubs
Gumuz improved girls’ guidelines
clubs guidelines
approved. DLR 3.2: Pass/Fail. USD 5
million (additional USD 10
DLR 3.2: 64% million from DPs)

DLR 3.3: 67% DLR 3.3: USD 3.4 million for

every 1% improvement in
DLR 3.4: 70% girls-to-boys ratio up to USD
10 million (additional USD
1.67 million for every 1%
improvement in girls-to-boys
ratio up to USD 5 million
from DPs)

DLR 3.4: USD 3.4 million for

every 1% improvement in
girls-to-boys ratio up to USD
10 million (additional USD
1.67 million for every 1%
improvement in girls-to-boys
ratio up to USD 5 million
from DPs)
4 Improved 45 (20) DLR 4.0: June 2018 DLR 4.0: DLR 4.0 – 4.4: DLR 4.0: Pass/fail. USD 5
availability of DLR 4.1: Nov 30, Additional School n/a million for adoption of
basic and 2018 Grants formula and guidelines.
additional school DLR 4.2: Nov 30, revised SG
grants in 2019 guidelines adopted DLR 4.1-4.4: Pass/Fail. USD
emerging regions 10 million for achieving

99
 DLR 4.3: Nov 30, DLR 4.1: At least respective annual target
2020 55% of schools (additional USD 5 million for
DLR 4.4: Nov 30, receive basic and achieving respective annual
2021 additional school target from DPs)
grants by November
30, 2018

DLR 4.2: At least

60% of schools
receive basic and
additional school
grants by November
30, 2019

DLR 4.3: At least

65% of schools
receive basic and
additional school
grants by November
30, 2020

DLR 4.4: At least

70% of schools
receive basic and
additional school
grants by November
30, 2021
5 Improved 75 (30) DLR 5.0: June 2018 DLR 5.0: DLRs 5.0, 5.1, DLR 5.0: Pass/fail. USD 5
teachers’ DLR 5.1: June 2019 Framework for 5.2, 5.3, and 5.5: million for approval
instructional DLR 5.2: June 2020 school-based n/a
activities DLR 5.3: June 2021 continuous teacher DLR 5.4: Score of DLR 5.1: Pass/fail. USD 20
DLR 5.4: June 2021 professional a composite index million (additional USD 5
DLR 5.5: June 2022 development of School million from DPs)
DLR 5.6: June 2022 approved Inspection
standards on
teaching practices

100
DLR 5.1: 95% of in Phase 1 schools DLR 5.2: Pass/fail. USD 20
supervisors and key reaches 62 million (additional USD 5
teachers in Phase 1 million from DPs)
schools are trained DLR 5.6: Score of
a composite index DLR 5.3: Pass/fail. USD 5
DLR 5.2: 80% of of Schools on million (additional USD 5
Phase 1 schools are teaching practices million from DPs)
visited by cluster in Phase 1 schools
supervisors and key reaches 70 DLR 5.4: USD 1.25 million
teachers at least for every percentage point
three times a year increase in composite index
for school-based score upto USD 10 million
continuous teacher (additional USD 0.63 million
professional for every percentage point
development increase in the index up to
USD 5 million)
DLR 5.3: 85% of
Phase 1 schools are DLR 5.5: Pass/fail. USD 5
visited by cluster million (additional USD 5
supervisors and key million from DPs)
teachers at least
three times a year DLR 5.6: USD 1.25 million
for school-based for every percentage point
continuous teacher increase in composite index
professional score up to USD 10 million
development (additional USD 0.63 million
for every percentage point
DLR 5.4: Score of a increase in the index up to
composite index of USD 5 million)
School Inspection
standards on
teaching practices in
Phase 1 schools
reaches 62

101
 DLR 5.5: 90% of
Phase 1 schools are
visited by cluster
supervisors and key
teachers at least
three times a year
for school-based
continuous teacher
professional
development

DLR 5.6: Score of a

composite index of
School Inspection
standards on
teaching practices in
Phase 1 schools
reaches 70
6 Timely 40 (30) DLR 6.1: June 2019 DLR 6.1: At least n/a DLR 6.1: Pass/fail. USD 10
availability of DLR 6.2: June 2019 80% of required million on achievement of
textbooks DLR 6.3: June 2020 textbooks available target (additional USD 5
DLR 6.4: June 2021 at regional centers million from DPs)
DLR 6.5: June 2022 or woreda education
offices. DLR 6.2: Pass/fail. USD 5
million on achievement of
DLR 6.2: The target (additional USD 2.5
system identifies the million from DPs)
status of textbooks
for 1000 Phase 1 DLR 6.3: Pass/fail. USD 10
schools in following million on achievement of
areas (i) inventory target (additional USD 2.5
at regional or million from DPs)
woreda levels, (ii)
delivery to schools, DLR 6.4: Pass/fail. USD 10
and (iii) inventory at million on achievement of
school level.

102
 target (additional USD 10
DLR 6.3: 65 percent million from DPs)
of students in
Grades 1 and 2 have DLR 6.5: Pass/fail. USD 5
Mother Tongue million on achievement of
textbooks and target (additional USD 10
Grades 7 and 8 have million from DPs)
Math and English
textbooks in
government primary
schools.

DLR 6.4: 75 percent

of students in
Grades 1 and 2 have
Mother Tongue
textbooks and
Grades 7 and 8 have
Math and English
textbooks in
government primary
schools.

DLR 6.5: 80 percent

of students in
Grades 1 and 2 have
Mother Tongue
textbooks and
Grades 7 and 8 have
Math and English
textbooks in
government primary
schools.

103
7 Improved 15 (5) DLR 7.0: June 2018 DLR 7.0: School ID n/a DLR 7.0: Pass/fail. USD 2
availability, DLR 7.1: June 2018 guideline validated, million on achievement of
quality and use DLR 7.2: October approved and target
of data 2019 notified to all
DLR 7.3: regions and DLR 7.1: Pass/fail. USD 2
September 2019 directorates and million on achievement of
DLR 7.4: June 2020 unique school IDs target
DLR 7.5: May 2020 issued by EMIS
DLR 7.6: June 2021 DLR 7.2: Pass/fail. USD 1
DLR 7.7: DLR 7.1: EGRA million on achievement of
September 2021 report of raw target (additional 1 million
DLR 7.8: May 2022 student test scores from DPs)
available and
validated by CSA or DLR 7.3: Pass/fail. USD 1
an independent third million on achievement of
party by June 2018 target (additional 1 million
from DPs)
DLR 7.2: ESAA
and Annual DLR 7.4: Pass/fail. USD 2
Inspection reports, million on achievement of
using the new target (additional 1 million
unique IDs, from DPs)
approved by the
Minister and DLR 7.5: Pass/fail. USD 2
published by million on achievement of
October 2019 target

DLR 7.3: NLA DLR 7.6: Pass/fail. USD 2

report of raw million on achievement of
student test scores target (additional 1 million
available and from DPs)
validated by CSA or
an independent third DLR 7.7: Pass/fail. USD 2
party by September million on achievement of
2019 target

104
DLR 7.4: The joint DLR 7.8: Pass/fail. USD 1
report published by million on achievement of
EMIS, GEID and target (additional 1 million
NEAEA on learning from DPs)
gaps by June 2020

DLR 7.5: EGRA

report of raw
student test scores
available and
validated by CSA or
an independent third
party by May 2020

DLR 7.6: A
strategic note for the
curriculum
development
approved by the
Minister by June
2021.

DLR 7.7: NLA

report of raw
student test scores
available and
validated by CSA or
an independent third
party by September
2021

DLR 7.8: EGRA

report of raw
student test scores
available and
validated by CSA or

105
 an independent third
party by May 2022
8 Improved pre- 5 (5) DLR 8.0: June 2019 DLR 8.0: Strategic n/a DLRs 8.0: Pass/fail.
service teacher DLR 8.1: June 2019 framework for USD 2 million upon
training for DLR 8.2: June 2019 concurrent program achievement of target from
English and DLR 8.3: June 2020 approved and IDA
Mathematics DLR 8.4: June 2021 adopted by the
Grades 5-8 Minister DLRs 8.1 – 8.3: Pass/fail.
USD 1 million upon
DLR 8.1: Teacher achievement of target.
training curriculum (additional 1 million from
for the concurrent DPs)
program approved
and adopted by the DLRs 8.4: Pass/fail.
Minister USD 2 million upon
achievement of target from
DLR 8.2: Teacher DPs
training modules for
concurrent program
approved by the
Minister

DLR 8.3: Three

Centers of
Excellence have
started receiving
new entrants for the
concurrent program

DLR 8.4: A
progress evaluation
report on the
concurrent program
approved by the
Minister.

106
 Annex 4: Technical Assessment

I. Program Strategic Relevance and Technical Soundness

A. Strategic Relevance
1. The central objective of Ethiopian national strategies is to progress to a lower middle-
income economy by 2025. In 2015, the Government launched its latest development strategy, the
second Growth and Transformation Plan (GTP II), which aims to accelerate structural
transformation. GTP II (2015/16 to 2019/20) aims to continue improvements in physical
infrastructure through public investment projects and to transform the country into a hub for light
manufacturing. Given that demographic pressures of the country increase the demand for quality
education, the GTP II strategically addresses the human development needs.

2. Education sector in the country plays an important role to help the GTP II to realize its
vision. As a strategic guiding principle, the Education Sector Development Program V (ESDP V)
was developed in 2015, and it provides overarching policy framework of the education sector from
2015/16 to 2019/20, precisely the same period of the GTP II. The ESDP V covers all levels of
education from pre-primary to primary to secondary to Technical and Vocational Education and
Training (TVET), and to tertiary education. The ESDP V translates the nation’s strategic priorities
and goals into an action program with tangible outcomes at the respective education levels.

3. General Education Quality Improvement Program (GEQIP) jointly funded by donors and
the World Bank has supported the ESDPs for a decade. GEQIP I was implemented between 2009
and 2013, and subsequently GEQIP II started in 2013 and is expected to be closed in 2018. Both
GEQIP I and II aimed to improve learning conditions in primary and secondary education,
providing support to, inter alia, textbooks and learning materials, teacher development and school
grants. As a result of the concerted effort by the Ministry of Education (MoE), DPs, and the World
Bank, GEQIP I and II yielded tangible outcomes during the project periods. To name a few, under
GEQIP I, about 78 million copies of textbooks were provided. Under GEQIP II, about 120 million
textbooks for different subjects and grades have been successfully procured and have been
distributed or are in the process of being distributed to schools. The latter includes reprints of
textbooks for Grades 1-12, mother tongue textbooks and teacher guides for Grades 1 to 8 and
supplementary materials in seven languages. About 270,000 primary and secondary teachers have
completed or are completing pre-service or in-service training at Colleges of Teacher Education
(CTEs) and universities, leading to significant reductions in the percent of teachers who do not
have the required qualifications. This includes about 35,000 key teachers in all regions who have
received short-term updating trainings in English, mathematics and sciences. School grants whose
beneficiaries include 6 year-old students in O class have been annually distributed to almost all
public primary and secondary schools nationally. The timeliness of the school grant distribution
process has improved over the last three years.

4. The proposed Program builds upon the achievements made by the GEQIP I and II. Given
that GEQIP supported the improvement of learning environment for a decade with almost one-
billion-dollar investment, the proposed Program envisages two major shifts from its predecessors.
One is the shift in the focus from learning environment to learning outcomes, and the other main
change is to make the investment more results-oriented (i.e., PforR). These two major shifts reflect
the objectives of ESDP V and upcoming ESDP VI as well as strong demand from DPs. They are,
hence, widely accepted by the MoE, DPs, and other stakeholders.
107
5. The proposed Program is also aligned with the World Bank Group’s Country Partnership
Strategy (CPS) for Ethiopia FY 2017-2021 and the World Bank’s Education 2020 strategy. The
second focus area of the CPS aims to build resilience and inclusiveness. This includes improved
basic education learning outcomes and improved early learning outcomes. The Program also
contributes to two of the three pillars of the World Bank’s Education 2020 strategy, namely:
“investing smartly” in education and “investing for all”. By supporting ESDP V, the proposed
Program aims to improve the education sector's efficiency, equity and quality as well as to support
system-level improvements that can enable more rational education system management.

B. Technical Soundness
6. The technical design of the proposed Program is based on ESDP V, lessons learned from
GEQIP I and II, a wide range of consultations with stakeholders, and various studies on the
education sector in the country as well as other regions. Detail Program description is discussed in
Annex 1.

7. ESDP V: The design of the proposed Program is based on the ESDP V – a national
education policy and strategic paper. It identifies six priority programs: (i) Capacity development
for improved management, (ii) General education (Quality), (iii) General education (access, equity
and internal efficiency), (iv) Adult and non-formal education, (v) Technical and Vocational
Education and Training (TVET), and (vi) Higher education.81 The proposed Program strategically
selects the first three priority programs as focus areas. Building upon the successes of GEQIP I
and II. It thus focuses on improving student participation and learning outcomes, taking into
account equity, in pre-primary, primary and secondary education (general education). TVET and
Higher Education will have to be treated by other projects. For the same reason, “Adult and Non-
Formal Education (ANFE)” is excluded from the Program. The World Bank has not worked on
ANFE in Ethiopia, and other donors (e.g., UNESCO) may have a comparative advantage in this
domain.

8. Lessons learned from GEQIP I and II and various studies: GEQIP became the major
education program supported by DPs (including the World Bank) and helped the MoE to realize
policy commitments and progress activities under the ESDPs. It is a natural transition for GEQIP
to be more deeply integrated into the ESDP through the World Bank’s new instrument, PforR.
GEQIP made a good progress in ESDP targets. However, there is still room for further
improvement, strongly focusing on results. Throughout the GEQIP I and II, internal efficiency has
been a persistent issue. Drop-out rate of grade 1 has gradually decreased but remains high at 17.9
percent (as of July 2017). Primary completion rate is low at 35 percent nationally for youth
between 15 and 29.82 Hence, the proposed Program aims to introduce two new interventions to
improve the internal efficiency. One is to improve learning ability of students before grade 1
through pre-primary school (O-Class), and the other is to introduce a performance-based awards,
providing schools with financial incentives to improve G2/G1 enrollment ratio and survival rate
to grade 5. Equity in education also remains a major concern in the country. The proposed Program
brings about gender issues more clearly and addresses in three Results Areas of internal efficiency,
equity, and quality. Besides, gender issues, the Program supports students with special needs and

81 General education includes pre-primary, primary and secondary education (grades 0 – 12).
82 “Investing in Ethiopia’s Future” (2015, World Bank) and “Striving for Excellence” (2016, World Bank)

108
 from pastoral communities. Budget for students with special needs were thinly stretched to too
many schools in GEQIP II. Therefore, it is proposed that the limited financial and human resources
would be concentrated at cluster center schools that help improve assistance for those with special
needs at surrounding schools. While GEQIP II provides additional financial resources to emerging
regions through school grants, various data including EMIS and household surveys show
considerable regional disparities on education indicators, in particular pastoralist community areas.
In collaboration with Agriculture GP, the proposed Program aims to support access and quality of
education in the pastoralist community. Quality, in particular student learning outcomes, remains
the central issue of the education sector. Building upon the achievements through GEQIP I and II,
GEQIP-E focuses two unfinished agenda critical to quality education: teachers and learning
environment. As evidenced by the teacher licensing written exam results, teacher training did not
fully translate to improvement in quality of teachers. The 2015 SDI survey reveals that teacher
absenteeism from classroom is high at 27.7 percent. Providing adequate funding and incentives,
with proper monitoring of teachers’ instructional activities, to woredas and school levels, the
proposed Program aims to change teachers behavior in classroom. Teachers are expected to spend
more time in classroom, conduct periodic student learning assessments, and constantly provide
feedback and remedial actions to students academically lagging behind. For learning environment,
school grants and textbooks are widely distributed to schools and students across all regions under
GEQIP II. The availability of school grants and textbooks on time at school level, however,
remains one of the major concerns. Introducing DLIs on timely delivery of school grants as well
as on establishment of a delivery and inventory system for textbooks is expected to enhance the
timely distributions of school grants and textbooks to schools.

9. Partnership: GEQIP I and II were the education projects widely supported by Development
Partners in Ethiopia. Under GEQIP II, pool of contributing development partners expanded. The
following Development Partners now financially contribute to the GEQIP II besides the World
Bank; DFID (GBP 119.85 million), Finland (EUR 19.8 million), GPE (USD 170 million), Italy
(EUR 5.7 million), Norway (NOK 48 million), UNICEF (USD 1 million), and USAID (USD 11
million). During the GEQIP II implementation, the DPs have promoted harmonization among
themselves and between the Government and DPs. They all join official missions as well as
meetings with the government, and contribute technical inputs and closely monitor the progress of
the implementation of GEQIP II.

10. DFID (£90 million), Finland (€16.9 million), and UNICEF (US$4 million) have announced
that they would financially and technically contribute to the proposed Program. Norway and
USAID are also likely to continue to provide financial support. The design of the proposed
Program has been largely accepted by DPs. The MoE, the DPs, and the World Bank had a series
of consultative meetings and workshops from the brainstorming stage to Project Concept Note
stage to the preparation stages. It is also agreed that the DPs will provide their funds through MDTF
and that the World Bank will manage the pooled funding and play a major role in designing,
supervising, and monitoring the Program in collaboration with the DPs.

II. Program Expenditure Framework

11. ESDP V and VI Budget Estimates: The ESDP V is the Government’s education program
being implemented between 2015/2016 and 2019/2020. The total program cost is estimated to be
about ETB 454 billion (about US$20.6 billion) for five years. ESDP VI is supposed to be

109
introduced between 2020/21 and 2024/2025, and the proposed Program is expected to commence
in 2018/19. Hence, it will be implemented both under ESDP V and VI. From 2018/2019 to
2019/2020, the cost of ESDP V is estimated to be about ETB 207 billion (about US$9.4 billion).
Assuming annual cost remains the same, from 2020/2021 to 2021/2022, the cost of ESDP VI
would be approximately ETB 207 billion (US$9.4 billion). Hence the total cost of ESDP V and
ESDP VI over the four Program years (2018/19 to 2021/22) would be ETB 414 billion (US$18.8
billion). All costs above include all sub-sectors from pre-primary to higher education including
TVET as well as both recurrent and capital expenditures.

12. Budget Estimates - Non-Salary Recurrent at Sub-National Levels (Regions and

Woredas): Non-salary recurrent budget at sub-national levels is estimated to be US$2,200 million
for the Program duration (with a financing gap of US$300 million). The government (regions and
woredas) contributions are estimated to be US$1,428 million during the same period. (Table 1)

13. Total DP contribution to the Program is estimated at US$430 million, of which US$290
million is IDA financing and US$140 million is from other DPs. (In addition, US$10 million of
IDA financing will be allocated to the IPF component.)

A. Assessment of the Expenditure Framework

14. Effectiveness. An effective expenditure framework invests resources in inputs that attain
intended outcomes. At the macro level, a well-defined sector strategy that is aligned with the Mid-
Term Expenditure Framework (MTEF) is necessary. Although it is sub-optimal in terms of setting
priorities among desirable outcomes, the ESDP V is a good strategy. The 2014 PFM assessments
for Ethiopia found that ESDP IV did not seem well-aligned with the MTEF. However, ESDP V
seems better aligned.

15. At the micro level, ESPES conducts analyses highly germane to the question of whether
the GEQIP-E Program is likely to result in effective service delivery. It finds that woreda-level
education expenditures positively and significantly affect fundamental education outcome
indicators: NER for grades 1 to 8, the NER for grades 5 to 8, and the pupil-teacher ratio. All are
significantly associated with increased woreda-level expenditure, and the size of these associations
is large. Every additional US$1 per capita of woreda education spending is associated with an
improvement in the NER of 2.1 percent. For grades 5 to 8, this increases to over 4 percent. For the
pupil-teacher ratio, the negative association indicates that a higher education expenditure is
associated with a lower pupil-teacher ratio and is strong at 3 percent. These results are all
significant at the 1 percent level and robust to changes in specification. The analyses also found
that historically disadvantaged regions and woredas received, on the whole, a relatively greater
proportion of block grant transfers and often showed a pro-poor bias from such expenditures, with
a disproportionate amount of benefits accruing to lower-income households.

16. Efficiency. Investments are efficient if they yield value for money. Two main sources of
inefficiency are corruption that diverts resources from their intended purposes and poor
implementation that interferes with the expeditious flow of money to the procurement and
distribution of goods and services to their intended beneficiaries. The 2014 PFM analyses found
that corruption is not a major issue at federal or subnational levels relative to many countries in

110
SSA and in other regions.83 Their assessments of controls for payroll and non-salary goods and
services and procurement are especially relevant to GEQIP-E's funding of subnational non-salary
recurrent costs. Although GEQIP-E is not funding salaries, national and subnational governments
tend to prioritize payroll obligations for political reasons, and poor management of payroll
expenditures can infringe on budgets for non-salary recurrent expenditures which GEQIP-E does
fund. ESPES did not find that fraud and corruption were an issue for woreda-level salary
payments, which constitute the majority of woreda-level expenditures. 84 The 2014 PFM
assessments found that the controls for non-salary recurrent expenditures were adequate, such as
the proper segregation of duties in order to prevent an employee or group of employees from being
in a position both to perpetrate and to conceal errors or fraud in the normal course of their duties.
As detailed in the financial assessment, MoE's procurement processes present a more mixed
picture.

17. The sector evidences some implementation sources of inefficiency, such as acquisition
delays by MoE's procurement unit (see the financial management assessment), textbook
distribution that can stall at the woreda level and schools, or delayed distributions of school grants.
The timeliness of the distribution of school grants is improving across time, and Government, the
donors, and the World Bank are well aware of and working to reduce other implementation
obstacles.

18. Adequacy. GEQIP-E will be implemented under the last two years of ESDP V and under
the first two years of ESDP VI. In the narrowest sense, the issue of adequacy for GEQIP-E is
relative to subnational non-salary recurrent expenditures. Between GEQIP-E's first year (2018/19)
and its last (2021/22), the expenditure framework shows that nominal budgets for subnational non-
salary recurrent expenditures are projected to increase by 213.3 percent, with Government's
dependence on donors to fund this budget category across the GEQIP-E timeframe. However, it
is difficult to judge their adequacy relative to the projected non-salary recurrent costs for ESDP V
and VI: ESDP V estimates capital versus recurrent costs, but not salary versus non-salary recurrent
costs.

19. Obviously, the country's macro status, Government's history of fiscal commitments to the
sector, and changes in the costs associated with running the sector independent of incremental
investments in transformational interventions will affect the resources available for subnational
non-salary recurrent initiatives funded by GEQIP-E. In 2016 the IMF assessed Ethiopia's risk of
external debt distress as moderate, noting that relative to 2015, Ethiopia's external vulnerabilities
had increased but that Government was now taking action to contain some risks. Between 2007
and 2013, Ethiopia invested an average of 5 percent of GDP and 26.9 percent of total public
expenditures in education, indicating strong commitments to education. Although demographic
pressures and increasing enrollments at levels of education with unit costs higher than those for

83 Ethiopia has a robust legal framework for addressing fraud and corruption that its Federal Ethics and Anticorruption
Commission and the Regional Ethics and Anticorruption Commissions proactively pursue. Transparency International's surveys
of perceptions of corruption for Ethiopia certainly show room for improvement, but Ethiopia gradually declines between 2010
and 2016 in perceived corruption, as a percentage ranking relative to the number of countries rated.
84 Financial controls on salary payments are extremely onerous and difficult to bypass. During the implementation of the donor-

funded Protection of Basic Services (PBS) Program 1 and 2 in 2006 and 2009 and the more recent PBS 3, continuous random
audits and spot checks did not reveal any problems such as "ghost workers"—the most common form of fraud in salary payments.

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primary education will increase the running costs of the sector, this risk can be managed in several
feasible ways that can be mobilized individually or in combination.85 There is sufficient time for
these options to take effect.

B. Financing Plan
20. It is expected that the Government financing for the program would increase from 71
percent to 83 percent during the Program period. The donor (IDA and DPs) contributions to its
subnational non-salary recurrent expenditures are expected to decrease from 27 percent to 16
percent across the four years of proposed Program (Table 1). The key inputs for quality education
such as school grants, textbooks and learning materials, and teacher training account for
approximately 60 percent of the total non-salary recurrent expenditures on general education at
regional and woreda levels.

Table 1: Expenditure framework for the proposed Program (in million US$)

2017/18 2018/19 2019/20 2020/21 2021/22 Total

Forecast 1/
Non-salary Recurrent Expenditures on
General Education, net of ESPES 222 291 374 540 1,427
contribution
Federal 0 0 0 0 0
2/
Regional 154 203 261 426 1,044
Woreda, net of ESPES contribution 2/ 67 89 114 114 384
School grants (Regions and Woredas) 79 89 101 114 382
Textbooks (Regions and Woredas) 30 32 35 37 134
Teacher Training (Regions and Woredas) 26 29 33 37 124
IDA ESPES contribution 7.5 9.9 12.7 12.7 42.8
26
DP contribution (IDA + donors) 3/ (Prior 83 109 105 107 430
Result)
Financing Gap 70 73 75 82 300
Total regional + woreda non-salary
recurrent education expenditures + IDA + 313 410 492 660 1,900
other donors' contribution to education

85 These include economic growth, holding constant on Government revenues as a share of GDP and on public education budgets
as a share of total government expenditure; increasing total public revenues and expenditures, as encouraged by the IMF; shifting
larger shares of education expenditures to households especially at the tertiary level; and using the same resources more efficiently.
Food (primarily student food) accounts for 20% of tertiary recurrent spending and 35% of non-salary recurrent spending. The 1
billion ETB spent on university students’ food in 2012 could have a) paid for an additional 48,000 teachers at lower primary grades
or b) financed the school grant program for all of the more than 40,000 primary schools in the country in a year.

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 Total + Financing Gap 383 483 567 682 2,200

Total Government contribution to

subnational non-salary recurrent 71% 71% 76% 83% 76%
education expenditures (in %)
Total IDA ESPES contribution to
subnational non-salary recurrent 2.4% 2.4% 2.6% 2.0% 2.3%
education expenditures (in %)
Total proposed Program (IDA + donors)
contribution to subnational non-salary 27% 27% 21% 16% 22%
recurrent education expenditures (in %)
1/Forecast figures for the period 2018/19 - 2019/20 come from the government's Medium term Macroeconomic and Fiscal Framework (MEFF).
For 2020/21 and 2021/22 the federal block grant total value is expected to increase by the rate of the previous year
2/ The regional block grant share going to the education sector, averaged over the last three years, was 22%, with 25% of the share for
education being allocated to non-salary recurrent expenditures. The woreda block grant share going to the education sector was 35%, with 6%
of the share for education being allocated to non-salary recurrent expenditures.
3/ The total DP financing is US$440 million. Its PforR expenditure share is US$430 million of which US$26 million is used for prior results and
another US$40 million for an advance. The IPF share is US$10 million,

21. Financing Gap: There is currently a financing gap of approximately US$300 million. The
financing gap is deemed to be only a moderate risk because it is likely that the Government would
receive additional sources. One potential source is expected from an IDA’s Refugee Window.
Ethiopia is eligible for this Window. Another possible source is from Global Partnership for
Education (GPE). GPE has already started discussing with MoE on potential additional financing
to support the sector.

22. Fiscal Affordability and Sustainability: It is anticipated that MoE would receive
adequate budget allocation to implement ESDP V and VI. The Government of Ethiopia has a good
track record in budget allocation to the education sector. Government's investment in education as
a percent of GDP averaged 4.7 percent since 2000. This is relatively high, compared to 4.3 percent
of Sub-Sahara African countries. As a percent of total government expenditures, it increased
sharply between 2002 (16.2 percent) and 2006 (24 percent). It has remained high during the
subsequent years, averaging 23.4 percent relative to the 16.6 percent SSA average. Fiscal
sustainability is also expected to improve during the Program period. As shown in Table 1,
financial dependency on DPs is expected to decrease from 27 percent to 16 percent. In addition,
unlike GEQIP I and II where financing of school grants and textbooks has been mostly dependent
upon DPs, MoE would start financially contributing to those items. The MoE would contribute
approximate US$10 million for school grants over the period project. Financial contributions to
textbooks are to be confirmed.

III. Program and Results Framework and M&E

23. A Results Framework is developed with specific and measurable indicators and realistic
annual targets in consultation with the MoE and DPs. KPIs are established with a strong focus on
results. All KPIs are directly linked with the PDO statement addressing the four Results Areas
(internal efficiency, equitable access, quality and system strengthening), taking into account cross-
cutting issues of gender, special needs, and pastoralists. Achieving the targets of KPIs would help

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 the MoE to accelerate the ESDP activities and fill the gap in its ambitious targets many of which
are still not yet achieved. KPIs are interlinked with and supported by Intermediate Results
Indicators (IRIs) and DLIs. A greater emphasis was put, through IRIs, on the process of achieving
KPIs. DLIs would provide appropriate incentives to the MoE, regions, woredas, cluster schools,
schools, and/or concerned education entities such as CTEs. Such incentives would help them
expedite the process and achieve agreed targets within the specific time band.

A. Disbursement Linked Indicators

24. A total of eight DLIs and associated DLRs have been agreed with the Government to
incentivize achievement of results in the four result areas of the Program. During the DLI selection
process, lessons learned from GEQIP II on potential implementation bottlenecks and evidence
from local and international literature have been taken into consideration. The DLIs are a mix of
process, output, intermediate result, and outcome indicators. If DLI targets are successfully
achieved within the agreed timeframe, the Program will achieve all KPIs and bring significant
positive impact on the general education system of the country. Annex 3 provide detailed
information about DLIs.

B. Managing Risks and Improving Capacity

25. Under the IPF-TA component, consultants would be hired to help MoE and REBs
undertake M&E tasks to update progress on achieving the targets. At the central and regional
levels, besides Program Steering Committee and Regional Program Steering Committee, a
minimum of four long-term consultants will be placed in both the Ministry and each region to
provide support on (i) planning and project coordination, (ii) financial management, (iii)
procurement, and (iv) environmental and social safeguards (i.e. at least 48 consultants in total at
regional level). These consultants will build the capacity of the MoE and REBs by bringing in
specialized expertise in key operations areas and help the Program implementation with timely
updated information in the results framework.

IV. Economic Justification of the Program

Justification for public provision and finance

26. Market failure, spillovers, redistribution of wealth – Public financing and provision of
education are common in most countries. The economic argument for public intervention is a
market failure where individuals at young ages are unable to borrow from the credit market to
finance their education. It is also justified by significant economic spillovers where less educated
individuals benefit from more educated individuals (e.g.: see Gille 2011). Finally, public financing
and provision is a means of wealth redistribution to promote equity.

Expected economic impact

27. Measuring economic impact – To measure the expected economic impact of this PforR,
its costs and monetary benefits are modelled and an internal rate of return is estimated. While
ideally this analysis would compare the costs and benefits of the government program with and
without the PforR contribution, in the case of ESDP V and as with many education programs in
Sub-Saharan Africa, the World Bank and other DPs have been involved in the design and financing
since the early planning stages. As a result, there is no well-defined government program in

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absence of this PforR. To assess the expected economic impact, an internal rate of return for ESDP
V is modelled by comparing costs and benefits with and without the program.

28. ESDP-V impact on human capital – The PforR’s PDO indicators (see the results
framework) for efficiency, equity and quality reveal the program’s anticipated impact on human
capital. PDO indicators 1-3 result in an increase in educational attainment, and indicators 4-6
result in an increase in cognitive skills. The links between earnings and both educational
attainment and cognitive skills are well established suggesting that educational attainment and
cognitive skills are important determinants of individual productivity and human capital. Globally,
an additional year of schooling is associated with approximately 10 percent higher earnings (see
Montenegro & Patrinos 2014). An estimate of a Mincerian earnings function using the Ethiopian
2013 Labour Force Survey associates an additional year of primary schooling with 15.5 percent
higher earnings and an additional year of secondary schooling with 13.7 percent higher earnings.
While no data currently exists to measure the association of cognitive skills with earnings in
Ethiopia, internationally, one standard deviation difference in test scores is associated on average
with 17 to 22 percent higher earnings (Patrinos & Psacharopoulos 2010).

29. Modeling approach – To assess the economic impact of ESDP V, an internal rate of return
is estimated by measuring the costs and benefits of the program for a representative first grade
student. The benefits of the program are the change in his or her expected future earnings less the
expected future recurrent education costs based on changes, resulting from the program, to (1) his
or her grade survival rates which determine the probability distribution of his or her years of
schooling; and (2) his or her cognitive skills. These benefits are assumed to last until 5 years after
the program ends. The costs are the total government and donor investment cost per first grade
student. This provides a conservative estimate of the internal rate of return because it assumes
only first grade students benefit. To simplify the analysis, the benefits resulting from PDO
indicators 1 and 2 (regarding reduction in first grade dropout rates and 5th grade survival rates) and
from PDO indicators 4 and 5 (regarding increasing learning achievement at 2nd and 8th grade levels)
will be considered.

30. Modeled benefits – PDO indicators 1 and 2 are expected to change the grade survival rates
for a representative 1st grade student while PDO indicators 4 and 5 are expected to increase his or
her cognitive skills. Table 2 presents the modeled transition rates, survival rates and the
association between an additional year of schooling and earnings both at baseline (pre-program)
and at the end of the program based on the PDO indicator targets (post-program). Post-program
transition rates change only in the first grade reflecting the target for PDO indicator 1; this affects
the subsequent survival rates. The 5th grade transition rate is increased to match the target for PDO
indicator 2. Increases in cognitive skills resulting from PDO indicators 4 and 5 are modeled to
increase the association between years of schooling and earnings. The link between changes in
cognitive achievement and the association between years of schooling and earnings is based on
the finding from international data that one standard deviation in cognitive skills is associated with
17 percent higher earnings. This requires converting PDO indicators 4 and 5 which are denoted
in percent of students achieving minimum proficiency into standard deviations. Neither of these
two PDO indicators has a target assigned yet as the baseline data is unavailable. Consequently,
reasonable targets are assigned for this analysis based on the increase in 8th grade math and English
proficiency between 2011 and 2015: 2nd grade cognitive skills are modeled to increase by 0.028

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standard deviations and 8th grade cognitive skills by 0.026 standard deviations. These are quite
small increases compared to findings from impact evaluation studies of various education
interventions on cognitive skills. The association between an additional year of schooling and
earnings increases by 2.8 percent for primary leavers and an additional 2.6 percent for secondary
leavers. The sensitivity of the resulting internal rate of return to these figures is discussed below.

Table 2. Modeled survival rates and impact of schooling on earnings

Baseline (current data, as
counterfactual) Target (by end of year 4)
grade
transition increase in transition increase in
rate from probability earnings rate from probability earnings
one grade of attaining per year of one grade of attaining per year of
to the next grade level schooling to the next grade level schooling
1 82.1 100.0 15.5 83.6 100.0 15.5
2 91.6 82.1 15.5 91.6 83.6 18.3
3 90.7 75.2 15.5 90.7 76.6 18.3
4 82.8 68.2 15.5 82.8 69.5 18.3
5 91.0 56.5 15.5 91.0 58.0 18.3
6 92.4 51.4 15.5 92.4 52.8 18.3
7 91.7 47.5 15.5 91.7 48.8 18.3
8 79.9 43.6 15.5 79.9 44.8 18.3
9 83.2 34.8 13.7 83.2 35.7 19.1
10 30.3 29.0 13.7 30.3 29.8 19.1
11 88.0 8.8 13.7 88.0 9.0 19.1
12 - 7.7 13.7 - 7.9 19.1

31. Modeled costs – Two sets of costs are considered for this analysis and are presented in
Table 3. The first are the recurrent costs of attending school which were estimates as part of an
education financing review in 2015 based on data from 2011. Private expenditure was estimated
using the Household Income, Consumption and Expenditure Survey of 2011. The second set of
costs is the investment costs of the program. The total cost of ESDP V is US$2.068 billion. As
this analysis measures the impact on the representative first grade student, the final cost per first
grade student in ETB is 3,799.

Table 3. Costs per student of education and the program

Recurrent costs per student (2017 ETB)
Primary
Public 852
private (hh expenditure) 1,786
Secondary
Public 1,007
private (hh expenditure) 2,528
Program cost per 1st grade student
number of 1st grade students 3,040,063

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 total cost of program (millions US$) 2,068
… per year (millions US$) 517
… per 1st grade student (US$) 170
… per 1st grade student (ETB) 3,799

32. Internal rate of return – Based on these modeled costs and benefits, the program would
yield an internal rate of return of 22 percent for a representative first grade student. This is
expected to be an underestimate because (1) it assumes that the only beneficiaries are first grade
students, (2) it ignores savings from reductions in repetition rates, and (3) measures the benefits
from only four of the six PDO indicators.

33. Sensitivity analysis – Table 4 presents the modeled internal rate of return under different
modeling scenarios to understand how the modeling assumptions affect it. First, it is assumed that
a standard deviation change in cognitive skills results in the approximate international average
presented in Patrinos & Psacharopoulos (2010); however, if, in Ethiopia, a standard deviation
increase in cognitive skills results in only a 5 percent increase in earnings, then the internal rate of
return would be 14 percent. Likewise, the association between years of schooling and earnings is
based on labour force survey data and is not a causal relationship. If an additional year of schooling
only caused 5 percent higher earnings, then the internal rate of return would be 15 percent. If the
program in fact has no impact on cognitive skills at all, then the internal rate of return would be 7
percent. This highlights the importance of cognitive skills for achieving a high rate of return.
Increasing attainment may have large increases in earnings in the future, but it also increases costs
in the near term through opportunity cost of lost earnings and schooling costs while delaying the
benefits until further into the future. Finally, if the program was delayed for three years and only
25 percent of the PDO targets were achieved in the fourth year, then the internal rate of return
would be 12 percent. With the exception of not having any impact on cognitive skills, the various
scenarios presented in Table 3 suggest a large return on investment for the Government of Ethiopia
and worthwhile investment for the World Bank.

Table 4. Modeled internal rate of return for a student in 1st grade

IRR for the program 22%
IRR by scenario (sensitivity analysis)
low impact of cognitive skills on earnings 14%
low impact of schooling on earnings 15%
no impact on cognitive ability 7%
3 year delay in program 12%

World Bank value-added

34. Institutional knowledge and global expertise – The World Bank has been working with
the Government of Ethiopia in the education sector for at least ten years. This project marks the
third consecutive education program for the World Bank. Over this time the World Bank has
developed significant institutional knowledge about Ethiopia’s education sector and a trusting
relationship with the client government. Additionally, this program marks a shift to a results-based

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engagement which will increase the role of analytical work and policy dialogue. The World
Bank’s global expertise in education monitoring and evaluation and policy research will be critical
to a successful and fruitful results-based program.

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 Annex 5: Summary Fiduciary Systems Assessment
I. Introduction
1. An integrated fiduciary systems assessment for GEQIP-E was carried out on the
implementing agencies of the ESDP consistent with Operational Policy/World Bank Procedure for
PforR Financing. This annex provides summary of the fiduciary systems assessment.

2. In additional to the assessment, the Integrated Fiduciary Assessment (IFA) used the
implementation support and supervision mission reports of previously implemented education
sector projects, the 2014 Public Expenditure and Financial Accountability (PEFA) reports that
covered the federal government and six regions, woreda Public Financial Management (PFM)
benchmarking rating86, and relied on the IFA of Enhancing Shared Prosperity through Equitable
Services (ESPES) Additional Financing given that part of the expenditure framework for the
Program is non salary recurrent expenditure of the government which is already covered by the
ESPES. The review assessed financial management, procurement system rules and procedures and
their application, including oversight mechanisms at the program implementing entities as well as
fraud and corruption and complaint handling mechanisms.

3. The IFA aimed to review the capacity of the sample participating entities on their ability
(i) to record, control, and manage all Program resources and produce timely, understandable,
relevant, and reliable information for the Borrower and the World Bank; (ii) to follow procurement
rules and procedures, to support the program development objective and address risks associated
with the Program; and (iii) to ensure that implementation arrangements are adequate and risks
related to fraud and corruption as well as complaints handling mechanism are reasonably mitigated
by the existing framework. The IFA examined the program expenditure framework to determine
whether it is comprehensive, clearly defined, and whether it is part of the Borrower’s budget and
financial management processes.

4. Overall, the IFA concludes that the examined program financial management and
procurement systems are adequate to provide reasonable assurance that the financing proceeds will
be used for intended purposes, with due attention to principles of economy, efficiency,
effectiveness, transparency and accountability, and for safeguarding Program assets once the
proposed mitigation measures have been implemented. Appropriate systems to handle the risks of
fraud and corruption, including effective complaint-handling mechanisms, have been agreed on
and established.

II. Key findings of a fiduciary assessment

Financial management
5. The 2014 PEFA assessment has been completed for the federal government as well as
regions which noted good improvements in areas of budget credibility and internal control
systems. Weaknesses continue to remain in internal audit function, high staff turnover and capacity
constraints in procurement and internal audit, and delay in reports etc.

86 The Woreda PFM benchmarking exercise was included in the current ESPES operations and aims at assessing woredas as

per 22 Performance Indicators (PIs) of public financial management, some of which are similar to PEFA indicators. The final
outcome of this exercise would be PFM reform of the woredas, starting with the weakest.

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6. Although improvements are noted, general gaps remain in the areas of property
management, cash control, monthly bank reconciliation, delay in presenting consolidated audit
reports to regional councils, inadequate performance audit coverage by Office of Regional Auditor
Generals (ORAGs), weak capacity of the budget and finance standing committee for oversight
role. In addition to these general weaknesses at woreda level, for the education sector, transparency
needs to be improved in disclosing to the public audit reports, budget execution and school grant
utilization reports. There continues to be weak performance of internal audit affecting the oversight
on the school grant fund and internal control weaknesses are noted on annual financial and school
grant audits. There is delayed budget preparation, approval and dissemination process for the
special purpose grant. Overall, it is the conclusion of the assessment that the financial management
risk is rated as “Substantial”. To address the challenges and risks noted, mitigation measures are
proposed which are outlined in the Program Action Plan.

7. The key performance issues and risks under the Program from the side of financial
management– ranging from planning and budgeting and revenue prediction up to audit and
accountability are detailed below:

a. Planning and budgeting: The Government of Ethiopia has a well-functioning planning

and budgeting system for the block grant system. The timeliness of budget proclamation,
notification, break downing and recording has improved over time. However, there is
significant delay in preparing detailed annual work plan and budget for the special purpose
grants leaving an average of nine months for implementation. The reasons for such delays
have been attributed to lengthy consolidation of annual work plan and budget, delay in
conducting the workshops for budget discussions and the late start of the exercise. The
budget preparation and dissemination should strictly follow the government’s budget
calendar for block grant budget preparation and dissemination.

Budget control: At all the visited woredas, the budget control is satisfactory. Availability
of sufficient uncommitted budget balance is confirmed before payment is being made.
However, most of the visited woredas were using manual budget ledger to control
expenditure and commitments instead of the budget control module of the IBEX. Lack of
adequate skill on the system and insufficient number of computer hardware were the
reasons for using the manual control. The manual control is time-consuming and may
generate errors. Furthermore, variance analysis between budget and actual expenditure was
not used as a management tool to identify bottlenecks and find resolution to the issues.

Execution and monitoring: The budget execution of non-salary recurrent costs is very
encouraging both at regional and woreda levels. Budget trend shows that the annual total
budget and its execution in the regions and woredas was at most times above 95 percent
over the past three years. However, there are certain weaknesses in the special purpose
grant budget execution and monitoring: (i) there are substantial discrepancies between the
proclaimed and working budgets; and (ii) there is very low budget utilization rate
particularly for textbooks procurement and teachers’ development program. Reasons for
low budget utilization are mainly due to delay in procurement, and delay in the annual
work plan and budget preparation. Supplementary budget should be submitted for timely
approval and the utilization for the other components should be closely followed up.

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b. Transparency: The school grant guidelines (SGG) stipulates that “at each school and ABE
center, a school grant notice board must be placed in a public place, accessible to parents
and community members, with details about school grant program, when and how much
was received, and how the school grant received was used”. However, the actual practice
differs from school to school, but mostly disclosure is not done consistently, and when it
is done, the disclosure is either not complete or the posters have faded away. To enhance
transparency, program budget and financial information need to be disclosed on the MoE
website or through other means. Furthermore, each school must comply to the SGG and
post the necessary information to the public.

c. Treasury management and fund flow: The system of treasury management and flow of
funds is robust with the usage of Z accounts (zero balance accounts). This arrangement
represents the Treasury Single Account. The system enhances the treasury management
control. Woredas and zones use single account whereby one bank account is maintained
for all budgetary institutions. The practice improves the cash management system and
saves resources and accountant time by reducing number of unnecessary records and report
producing otherwise required. The predictability of fund release is satisfactory for the block
grant allocation. The fund flow for the special purpose grant is through a special account
to be opened at MoFEC and to the regions and woredas from there on. For the special
purpose grant, particularly the release of school grant fund requires further attention.
Although the SGG states that school grant fund should be released to schools by October
31, this timetable is not usually met. As was seen from the data from 2013 to 2016, most
transfers were made either in the 2nd or 3rd quarters. Timely release of school grant fund
would allow the schools to properly plan and use the resource in the year. Delay in the
transfer of the school grant is mainly due to (i) delay in the allocation breakdown by the
REBs; (ii) schools not submitting their previous school grant utilisation document; (iii) and
schools not complying with the SGG which requires opening of a bank for schools
receiving fund above ETB 15, 000; and (iv) lack of clarity on how to release the resource
of school grant for special needs students. To mitigate these risks, the EMIS needs
strengthening (through the IPF component) to have up to date data on school enrolment,
training should be provided to school cluster supervisors on financial management who
will further train the schools on reporting of utilisation and allowing the regions to approve
cash transfer to schools which are not in proximity with banks. The MoE should clearly
define the modality of resource allocation for special need students and disseminate the
same to the regions. Proper cash flow planning should be made and school grant should be
released timely.

d. Accounting and financial reporting: The PEFA notes strong accounting and reporting
systems in the country. Zones and woredas use the pool system for financial management
activities. Finance related proclamations, regulations, directives, guidelines and working
manuals are available in most woredas. The IBEX, which is the government’s accounting
software, has been rolled out to all regions and almost all woredas. The software is used to
capture the non-salary recurrent cost data from woreda, region and federal level. By design,
the IBEX as is now, cannot capture data for the special purpose grants. The chart of account
is not designed to accommodate for expenditure of projects. Therefore, MoFEC has rolled

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 out the IBEX on a standalone basis with modified chart of account to regions and woredas
where there is some donor financed projects. The usage of this software was agreed for the
implementation of GEQIP II. However, even after the project implementation of three
years, only four regions out of eleven were able to produce reports using the software as of
quarter ended April 7, 2017. Regions should be trained and the software should be used by
all regions to capture the special purpose grant data. IT support from regions should be
strengthened to ensure full compliance. With regards to reporting, timely report is produced
in most cases by the woredas and regions. All visited woredas submit complete package of
reports although analysis for advances and payables needs further strengthening.

Accounting and reporting as school level: under GEQIP II, approximately 35,000 schools
have received school grant fund. Schools are expected to maintain a simple accountability
arrangement by preparing cash books and presenting their cash books to the WoFED
regularly for accountability purposes. However, the audit report for school grants continue
to reveal weaknesses in maintaining the cash book, retaining all relevant source documents
and submitting their cash books to the WoFED. As indicated above, the school cluster
supervisors should be given training on basic financial arrangement so that they can support
primary schools under their supervision. Furthermore, when the SIP training is made to
school directors, including a basic book keeping training could strengthen the capacity at
school level.

e. Internal audit and internal control: The PEFA notes that internal control procedures are
well embedded in financial proclamation, regulation and various directives and manuals.
The PEFA also clearly acknowledges the internal control to be the strongest area of the
PFM. The financial management system at the entities visited has sufficient controls to
ensure authorization, recording and custody controls.

Non-salary payment controls: There was satisfactory segregation of duties in the

payments approval cycle as well as to key processes, including payroll preparation,
procurement, staff advances, use of real assets, and personnel administration. As noted
from various audit reports and the woreda PFM benchmark rating, weaknesses remain
such as: expenditures/payments misclassification or coding and posting errors; lack of
complete documentation (including per diem payment forms not completed properly,
payments not supported by invoices, training payments not supported with participant
attendance sheet, and improper per diem payments), bank reconciliations not done
monthly, regular cash count not done, and weak property management control.

Cash and bank management: The assessment team noted that in the majority of visited
woredas, monthly bank reconciliation was performed and up-to-date. Regular cash count
is conducted and reconciled with ledger balance. However, previous audit report findings
disclosed that several woredas covered by the audit did not prepare monthly bank
reconciliation and did not conduct regular cash count. This is also captured in the woreda
PFM benchmark rating.

Receivables and payables: One of the repeated control weaknesses observed from audit
reports is the failure to clear on a timely basis the outstanding receivables and payables.

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Similarly, subsidiary ledgers are not always maintained for receivable and payable
balances. Aging analysis is being done for the Special Purpose Grant (SPG) which should
be continued and used as a management tool.

Internal control of school grants: Strict adherence to SGG by all schools is very essential
to make sure that grants are used only for the intended purpose of improving the quality
of education. Though training of trainers on the financial management of school grants
were provided and these trainings were further cascaded to most members of Parents
Students and Teachers Associations (PSTA), it was observed that in some schools, proper
cash books and files for supporting documents were not maintained and few schools have
incurred ineligible expenses. The school grant audit continues to reveal deviations from
the SGG in terms of processes and procedure. The financial management system of
schools needs improvement through continuous trainings and workshops.

School enrollment data: The integrity of the data is essential as school grant allocation is
based on it. In most of the visited woredas, the planning, monitoring and evaluation
officers and inspectors from WoFED take part when school management conducts school
enrolment data. The school principal makes sure that school enrollment data is properly
filed in the standard format (as in the SGG) takes the accountability by submitting the data
signed and sealed to WEO. It is only upon the scrutiny and approval of WEO that annual
school enrolment data is officially submitted to ZEO, REB and to MoE. The EMIS unit
at regional level and zonal level aside from consolidation conduct inspection and do the
validation of school and woreda data.

Internal control over textbooks: Newly printed textbooks can either be delivered directly
to the schools or to the regional central stores for distribution by the REB depending on
the contractual agreements. Like any fixed assets and consumables, text books are
registered in the government’s Model 19 template (goods receiving voucher) upon receipt
by store keepers and Model 22 (issue voucher) when issued to individuals. The assessment
has noted weak accountability on the side of woredas and schools as some text books were
kept at woreda and school stores idle for a long time. MoE made attempt to make woredas
and schools responsible for not distributing books to students and rigorous inspection has
been carried out by respective federal, regional and zonal education offices to resolve this
issue. A continuous assessment of the flow and distribution of textbooks is highly
recommended.

Internal audit: In each budgetary institution, at region level, there is internal audit unit.
At woreda level the internal audit service is given at pool level which is accountable to
the head of WoFED. Internal audit is an area that is generally considered to be the weakest
link in the PFM system. The weaknesses found include quantitative and qualitative
staffing problems, coupled with a high staff turnover. Due to lack of the appropriate skills,
the internal auditors mostly do not perform system and risk based audit but focus on
traditional audit-vouching (concentrating on per diem payments and cash shortage). Most
internal audit units include school audits in their annual work plan although the plan is not
followed through due to the limitations explained above. Given the vast number of schools

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 receiving the school grant, the external audit review is not sufficient hence this calls for
strengthened involvement of the internal audit function.

f. External audit and oversight: the non-salary recurrent cost of the education sector is
being audited quarterly as part of the continuous audit which forms the final annual audit
report and through the Office of the Federal Auditor General (OFAG) for the MoE and
through the Office of Regional Auditor General (ORAGs) for the REBs. The audits are
conducted annually and are presented to parliament and regional councils respectively for
follow up. The audit reports for ESPES and GEQIP II have been submitted timely for the
last three years with unqualified audit opinions. Timely action is taken on financial audit
report findings with close follow up of the MoFEC. This should be continued.
School grant audits: the school grant audits, covering 3 percent of the schools, received for
GEQIP I and II reveal the prominent weaknesses of various noncompliance to the SGG
such as not opening bank accounts, lack of standard columnar cash books, lack appropriate
supporting documents for expenditure, lack of notice board for notifying school grant fund
and utilization, payments approved by Kebele representative instead of PSTA and lack of
record for goods received. Furthermore, the involvement of internal audit at woreda level
is not satisfactory. It is clear that the external audit review of the school grant cannot cover
all the schools with the program. Therefore, the main internal control framework for the
school grant fund is the community and the internal audit function at woreda level. It is
very clear from the reports that the necessary support is not being provided by the internal
audit function. To mitigate this risk (i) the MoE should continue to create awareness
through the education sector semiannual meetings and follow up on the school grant audit
findings regularly; and (ii) the SIP committee which comprises of the school director,
teachers, students and parents should be given a very simplified checklist to strengthen
their oversight role over the school grant fund. The checklist can be submitted to WoFED
and WEO which can decide on high risk schools for their intervention; and (iii) each region
should ensure that there is enough budget allocated for the WoFED internal auditors to
monitor the schools as per their annual plan. The MoE should continue to create awareness
through the education sector semiannual meetings and follow up on the school grant audit
findings regularly.

8. Based on the above, the Financial Management risk assessed for this operation is classified
as “Substantial”. To address the challenges and risks noted as well as to support the PFM reform
agenda with a focus on decentralized structures, mitigation measures are outlined in the PAP which
needs to be supported by the IPF component which consists of capacity building activities.

Procurement
Procurement performance
9. About 20-25 percent of MoE’s budget is expended via procurement channels and is guided
by the framework for public procurement. Per a study commissioned by the World Bank87, the
operational environment in Ethiopia for MoE and its supply chains has two complex dimensions:
(i) Ethiopia’s three-tier federal structure and concomitant decentralization; and (ii) the absolute

87 Review of Procurement Systems and Practices in the Education Sector Ethiopia”, December 18, 2016.

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complexity of the supply chain for educational materials. Public service delivery for over 20
million students, located in 9 regions and 2 city administrations, through 35,000 schools, with over
1000 textbook titles and in 40 languages is an onerous management and logistical challenge.
Through GEQIP, MoE has achieved considerable success in holding the price line stable and even
reducing costs for textbooks. Price lines so far have been consistently decreasing from the first
printing to the second and the third.

10. In terms of volume, as of September 2017, under GEQIP II, textbooks worth US$37
million, and goods (vehicles, motorbikes and ICT materials) worth US$5 million have been
delivered. Contracts for textbooks worth US$20 million, and a contract for supply and installation
of educational cloud infrastructure worth US$26.4 million are under execution. In addition,
procurement of textbooks worth US$43.6 million are under bid evaluation process. Overall, MoE’s
procurement achievements have been significant. However, moving forward, this performance
should not be taken for granted and could be at risk because of sub-optimum bidding efficiency
indicators. The challenge for MoE under GEQIP-E is to create conditions to ensure its performance
and execution efficiency improve. The acquisition delays are significant and they effectively
reduce the effectiveness of public service delivery. The causality is complex and it cannot be
attributed to any single factor.

High value contracts

11. Under GEQIP I and II, all ICB contracts were handled by the Procurement Services
Administration Directorate of the MoE. There were high value TLMs and ICT procurement
activities under GEQIP II. The maximum values of single contracts were US$26.4 million for ICT
infrastructure, and US$26 million for textbooks. However, the values for most ICB textbooks, and
other goods and services were below US$10 million. Thus, the likelihood of a single contract
amounting to or exceeding more than 25 percent of Program expenditure is low under GEQIP-E.
However, high value contracts under the Program shall be monitored during support missions to
ensure that the Program is in conformity with the World Bank’s policy on high value contracts in
PforR financing.

Procurement planning
12. In most of the reviewed entities, including MoE, REBs and universities, it is observed that
they have procurement plan which is derived from the annual work plan. 14 percent of the entities
visited (3 CTEs and one REB) do not have any experience of preparing procurement plan.

13. The MoE, REBs, universities and CTEs are required to prepare a procurement plan with
the standard format. Procurement plan format for government financed procurement activities is
provided in the procurement directives. Procurement plan should contain description of the item
to be procured, procurement method, cost estimate and milestone dates. Milestone dates are mostly
not met in the reviewed entities. Recording the actual dates for monitoring the procurement plan
is not practiced in most entities as well.

14. In 62 percent of the entities surveyed, the procurement process is initiated on a case by case
basis from user departments/units after annual procurement plan is approved and budget is
released. All entities reported that delayed release of budget is one reason affecting the
procurement planning process. Moreover, many procurement activities are not initiated as per the

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plan due to delay in the preparation of specifications and TORs by user departments/units. In
addition, procurement plan is not adequately used as a management tool for monitoring progress.

15. Preparing realistic plans which contain all information and using procurement plans for
monitoring and decision making are weak areas in most implementing agencies at sub-national
level. Hence addressing this risk is an important element in the implementation of the Program
through capacity building and other measures such as timely release of the annual budgets of
implementing agencies.

Procurement performance issues and risks

The key procurement performance issues and risks under the Program are detailed below:

16. Applicable procurement procedures: Public procurement is regulated by the Public

Procurement and Property Administration Proclamation No. 649/2009. which was issued on
September 9, 2009. The revised Federal Public Procurement Directive was issued in June 2010
which defines roles, responsibilities and business processes. The federal level proclamation and
directives are mirrored at regional level. The federal and regional proclamations and directives
establish the procurement oversight responsibility, procurement organizational structure,
procurement methods and procedures and complaint handling procedures.

17. Under the Program, all implementing agencies are expected to use government
procurement procedures for executing the procurement of goods, works and services. The
procurement laws and procedures are based on UNCITRAL model law and provide a solid
foundation for procurement operations. At federal level, the government is considering improving
specific elements of the procurement law. The regulatory bodies located within the regional
financial bureaus are gradually occupying their mandated space and will require sustained support
and guidance to effectively exercise their regulatory role. Considering the limited supervision
capacity of the regulatory bodies and concerns on the supervisory bodies’ autonomy within
MoFEC and BoFED, there is risk in the application of the procurement laws during the
implementation of the Program.

18. Accountability for procurement decisions: One of the essential features of the
procurement proclamations issued by the federal government and regional states is that heads of
institutions relegate power of procurement decisions to Procurement/Tender Approval
Committees. In most institutions, such bodies make final procurement decisions based on
recommendations made by bid evaluation committees and/or procurement units. On the other
hand, however, heads of procurement units or the heads of Procurement, Finance and Property
Administration Directorates do also make procurement decisions on procurement activities which
are below a given monetary threshold without taking such decisions to higher bodies such as
Procurement Approval Committees.

19. Overall, accountability for procurement decisions are provided for in the procurement laws
of the federal government and regional states. But the fact that members of the procurement
decision making bodies are highly placed officials within the respective IAs and such members
are not well versed about procurement procedures result in delays in decision makings. Moreover,

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interference in decision makings or seeking the approval of higher bodies which have relegated
power of decision making results in considerable delays particularly in the MoE.

20. Organizational structure and staffing: Following the procurement reform in Ethiopia,
there have been improvements in the organizational settings of procurement units in various
Government organizations. There are responsible procurement units with different naming at all
levels of the procuring entities. The difference in naming also indicates that the unit is responsible
for executing varying functions other than procurement such as Property Administration, General
Service and Finance. The procurement units cleared and approved organizational structure that, on
average, allows for the recruitment of five procurement staff per unit. In the institutions surveyed,
the staff mix includes first degree holders as well as diplomates. The compensation structure for
the procurement staffs in the IAs surveyed is very low and not attractive to bring procurement
proficient personnel who have good experience and track record in the area. Moreover, it is not
attractive enough to retain those who are currently working in the field.

21. The total number of staff available in each procurement unit varies from entity to entity.
In 65 percent of the entities (including the MoE, Oromia and SNNP REBs), the number of
procurement staff provided in the organizational structure is not adequate as compared to the
volume of work they are currently managing and there are often requests for the recruitment of
additional procurement staffs. Fifty-nine percent of the entities stated that the number of
procurement staff provided in the structure is not sufficient to efficiently manage procurement in
the implementing agencies. The inadequacy of the procurement staffs in each entity directly affects
the effectiveness and efficiency of the procurement function and compromises quality in
procurement processes (e.g., quality of bidding documents, evaluation, award, etc.). This may
result in users’ complaint on the timeliness and quality of the procured materials.

22. Except in Amhara and Ethiopia Somali REBs and Bahir Dar University, all the sampled
entities indicated that the structure does not provide for progressive procurement staff positions
(career ladder). Lack of career ladder in the organizational structure for the procurement unit as
well as inconsistency in job titles cause dissatisfaction on the procurement staff, resulting in high
procurement staff turnover in search of higher positions or better job titles in other places.

23. Procurement regulatory bodies at federal and regional level provide training to
procurement staff in procuring entities. However, the level, depth and quality of training provided
is simple, for short duration (three to five days) and is only aimed at acquainting staff with the
procurement regulations and directives of the respective federal and regional states. Basic training
in management of procurement of goods and equipment, works, and consultancy services in the
required duration, quality and depth is offered to only four staff in MoE. Thus, there is a need for
the provision of quality training which equips procurement staff with the basic principles and
procurement processes from planning to contract management and which will enhance their
performance in GEQIP-E.

24. Staff turnover in the past three years has been observed in 52 percent of the entities
reviewed. In total, 31 staff have left their position over the past three years in 15 of the sampled
entities including the MoE. One major reported problem causing staff turnover is the low level of
remuneration to procurement staff. Moreover, there is no career development structure for

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procurement staff in public procurement units which discourages staff to remain in procurement
units. The high level of staff turnover, inadequate procurement proficient personnel, inadequate
program for quality training to staff, and unattractive remuneration and working environment
remains as a major risk in the procurement system in the country and also a challenge to be
reckoned with under GEQIP-E.

25. Record keeping and document management systems: All the visited REBs and
universities do have separate record keeping rooms, though the filing system is not well organized.
In the MoE, it was noted that the same room that is used as tender opening hall is also used for
keeping of bids. However, contract and procurement files are kept in shelves within procurement
staff offices. The filing system, however, is irregular and tracing a case is not simple. Procurement
records are not maintained in a well-organized manner and this is the major challenge in most
implementing agencies. Procurement records cannot be referenced/checked easily during
procurement audits and PPRs since such records are not readily available and accessible. Facilities
such as office space and computers, photocopy machine, shelves and office furniture are
reasonable at regional bureaus, universities and CTEs level. However, few entities (14 percent)
have been found with shortage of office furniture and equipment such as photocopy machine.
Shortage of office space for procurement is noted in Oromia REB and MoE.

26. Inadequate manual or electronic record keeping in safe and secure place is a major risk
area which needs to be addressed in the Program in all the implementing entities to make the
Program credible and to keep record keeping requirements in accordance with Government
requirements in this regard.

27. Preparation of bidding documents is a practice in most of the entities who apply open
bidding procedures. REBs, CTEs and the universities use the SBD issued by the BoFED/ FPPA,
and the MoE use the SBD issued by the World Bank for ICB contracts. Almost all agencies who
have a practice of preparing bidding documents use either English or Amharic languages. The
concept of SBDs is almost unknown by the procurement units of 34 percent of the surveyed entities
(REBs and CTEs). Out of randomly checked 5 entities for content of prepared bidding documents,
in the 2 entities where the SBDs are used, completeness and accuracy is still an issue as important
sections of the SBD such as Bid Data Sheet, Evaluation and Qualification Criteria, and Special
Conditions of Contract are not properly filled out and use of ambiguous evaluation criteria are
noted in the issued bidding documents. In some IAs one page invitation to bid which doesn’t
contain most of the bid information including the evaluation criteria is considered as a bidding
document.

28. On the other hand, in MoE and in some universities, such as the Addis Ababa University,
the use of SBDs is common and at a satisfactory level. In MoE use of World Bank’s SBDs for
procurement of textbooks, and goods and equipment through ICB, and the use of SRFP for the
selection and employment of consultants is common and at an acceptable level. The use of SBDs
issued by FPPA when approaching the national market is also used in an acceptable manner.

29. Under GEQIP-E, the MoE and other implementing agencies shall use Government
procurement procedures and hence are expected to use BDs/SRFPs which are issued by the Federal
Public Procurement and Property Administration Agency (FPPA). However, the SBDs/SRFPs

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issued by FPPA are not suitable for textbooks and IT equipment procurement as well as for the
selection of consultants. Hence MoE should prepare BDs/RFPs to be used for the procurement of
these goods and services and negotiate with FPPA to use these SBDs/SRFPs. The World Bank’s
SBDs and SRFPs can be adapted for this purpose.

30. Procurement processes: In REBs, CTEs and universities, both the bidding document
preparation and evaluation and award of contracts are performed in a reasonable time, apparently
owing to the low value of contracts and since the procurement method mostly used in such agencies
is Shopping/Request for Quotations. The time taken to evaluate bids in REBs, CTEs and
universities is found to be on average 4 days for shopping and 22 days for NCB.

31. In the case of ICB tenders handled by MoE, which handles, about 95 percent of the
procurement activities under GEQIP, significant delays are noted in bidding document preparation
and evaluation. The time taken for evaluation of sampled ICB contracts varies from 2 to 6 months,
the average being 5 months while the normal bid validity period in the respective Bidding
Documents issued is 90 days. Despite such delays, it was also noted that the bid validity and bid
security validity monitoring mechanism is poor and not systematized.

32. Since delays in procurement processing have a considerable effect on the timely delivery
of inputs for the attainment of PDO, procurement processes need to be monitored and mitigation
measures be taken as outlined in the PAP.

33. Contract management: In the MoE and almost all universities, contract administration
staff are assigned to do contract administration work. The remaining agencies administer contracts
through their procurement staff or other staff randomly assigned to administer contracts. Most of
the staff involved in the contract administration work do not have the required skill and experience
in contract management and same size of the agencies do not manage contracts strictly as per the
provisions of the signed contract. In addition, in the entities surveyed, no contract management
manual exists which guides staff responsible/assigned for contract administration work. Contract
administration is a neglected area in most of the agencies and needs more improvement specifically
in the development of the contract management manual and assignment of capable/experienced
staff.

34. In the MoE, as of late, under GEQIP II, contract administration is being carried out by
better qualified contract administration consultants. However, under GEQIP I and II, contract
administration in the procurement of TLMs and other goods and equipment has been a major
challenge. Some of the challenges in this regard are outlined below.

35. Letter of Credit (LC) opening and payments processing: during execution of GEQIP I and
II, MoE has faced delays in opening LC due to MoE’s long standing delinquency list of undeclared
payment items with its Bank (Commercial Bank of Ethiopia). Up to two months of delay have
been observed in opening of LC. Due to such delays the contract periods are extended accordingly.

36. At MoE, payments are processed first through procurement unit and then Finance unit.
The procurement unit checks the payment request by suppliers and justifies with all the required
documentation and passes it to Finance unit. The finance unit checks status of payments including

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previous payments against the contract, and all documents including proof of receipt of goods or
services are verified prior to the release of payment. Then the finance unit notifies and sends a
proof of payment to the procurement department when payment is completed. Major delays have
been observed in effecting final payments of textbook contracts. The final payment of textbooks
upon delivery (20 percent of the total) are tied with inspection acceptance and verification of
quantities delivered. However, failure to establish a robust system for collection of goods receiving
notes (GRNs) from delivery points by MoE and delay in carrying out the desktop quantity
verification, 20 percent payment to three suppliers has been delayed for more than 6 months.
Processing time for payment in CTEs and REBs, however, is undertaken within the contract terms
and time in majority of the agencies.

37. Pre-and post-shipment inspection: Due to lack of independent accredited inspection body
within the country, verifying textbooks quality in line with the provisions of the contracts has been
a challenge. In addition, MoE insisted that they physically check the samples prior to shipment
from the origin. However, MoE lacks the laboratory equipment and certification to determine if
the sample is compliant with the bidding documents. The inability to verify quality of delivered
materials due to lack on in-country capacity has caused considerable delays in several contracts.
Recently a provision in the contracts has been introduced to enable MoE to use Independent
Accredited Inspection Superintendents who will carry out pre-and post-shipment inspection. MoE
is advised to use this consistently in all program funded textbook purchases.

38. Procurement management information systems are limited to a basic procurement

monitoring sheet that is updated once a week. However, implementation of this system is
considered to be inconsistent at regional level. When information is required it is generally
aggregated based on the input from each case file.

39. Verification of quantities: The system to monitor the receipt of quantities at diverse
destinations appears to be well established. In case of major textbook procurement, there is no
well-established system of reporting or collection and data transmittal of copies of goods receiving
notes from each region and woreda to MoE. This data is consolidated to determine if the total
quantity received is consistent with the contract quantity. Based on this data aggregation the
procurement officer processes the documents to release the final payment to the supplier. Lack of
such robust system, creates delay in the quantity verification system.

40. Contract management challenges observed also include delays in contracting, supplier non-
compliance with the delivery schedules, expiring performance guarantees before the end of the
contract, which all relate to inadequate communications, supervision and individual performance
factors.

41. Unresolved contractual claims: The majority of the agencies reported that they don’t
have outstanding unresolved claims with suppliers and only three agencies, including MoE,
reported that they have unresolved claims. The MoE has a pending case with a foreign supplier
that were contracted in 2013 to print and supply different types of books but which was terminated
before the GEQIP I was phased out. But when the MoE decided to terminate the contract, the
supplier already shipped 35 containers of books to Ethiopia which are still placed in Semera,
Modjo and Addis Ababa dry ports/customs warehouse and the MoE had already paid 80 percent

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of the contract amount of USD 2 million through LC. This case clearly shows the experience and
skill gap the procurement unit has in managing contracts through alternative dispute resolving
mechanism which costs the MoE such huge amount of money and disrupts the program.

42. Oversight: Reliable internal control system such as internal audit, procurement approval
board, and external audit is crucial for achievement of the project objectives. Among the agencies
where the internal audit is a practice, almost half of the agencies reported that the internal auditors
don’t have the capacity to identify procurement issues and provide feedback for program
improvement. The MoE internal auditors also lack the capacity to identify procurement issues and
provide feedback.

43. The regional procurement regulatory bodies such as BoFED for the REBs and CTEs, and
the MOFEC for MoE and universities do also have a practice of supervising the agencies at least
once in the past three years. But there is a limited practice in providing feedback and
recommendations for the entities.

44. Despite having the limited oversight practice, the limited capacity of internal auditors along
with their lack of effective identification of procurement issues is a serious risk for the Program.
Hence, procurement as well as procurement audit training should be facilitated for internal auditors
so that they will have the capacity to identify the procurement issues to help in the betterment of
the procurement function at all levels. Most importantly, due to lack of an effective oversight
mechanism in place, it is recommended that Government should appoint an independent
procurement auditor to carry out annual procurement audits of institutions covered under the
Program.

45. Complaints handling mechanism: As per government’s procurement laws any complaint
received from contractors/suppliers/consultants should initially be directed to the head of the entity
whose responsibility is to handle the complaint after a thorough investigation and analysis of the
facts. At federal level if the complainant is not satisfied with the decision at institutional level it
can take the case to the Complaints Handling Board which has its secretariat in the FPPA and
which is considered an independent complaint hearing body. However, at regional level such
independent bodies are not provided for in the procurement laws and such complaints are normally
addressed to the procurement regulatory body which in most of the regions is housed in the
regional BoFEDs except for SNNP and Gambella Regions where there are ‘independent’
regulatory bodies like the FPPA.

46. Complaints hearing mechanism is a critical factor for transparency and accountability in a
modern procurement system. Lack of such an independent body brings the issue of transparency
and accountability into question. In the absence of such independent bodies the program shall put
in place an oversight mechanism such as annual procurement audit to ensure that there is
accountability in procurement decisions at all level.

47. Market Analysis: The MoE is responsible for procurement of text books, goods and
services and selection of consultancy services which are strategic for the program. MoE procures
the development/printing and distribution of textbooks centrally through ICB or NCB procedures
depending on the estimated contract value.

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48. In Ethiopia, following the implementation of the GEQIP a competitive market for
textbooks is developed. For bids for the development, printing and distribution of textbooks, on
average 50 bidders buy the bidding documents from different parts of the world but around 15
bidders submit their bids. The market competition is relatively fair in ICB procedures although the
submission rate is around 30 percent. Ethiopia is considered to have attained a relatively fair price
for textbooks during the implementation of the GEQIP and that the prices have in fact declined
through time. Data available indicate that MoE has attained value for money in its development,
printing and distribution of textbooks under the GEQIP.

49. An analysis of the textbook market in Ethiopia indicates that the textbook market is by and
large dominated by Indian publishers. Most of the publishers awarded textbook contracts are
Indian publishers and printers. New entrants in the market are limited. However, there are some
new entrants from Dubai, Korea and etc. of a limited number in the textbook market in Ethiopia.
This is an area in which the MoE should work on to encourage new entrants in the textbook market
to enhance competition and to avoid dependence on a limited market which might have an
implication on textbook prices and technological and material choices. On the other hand, the
other area of procurement for high value contract is the IT equipment and software package. As
the MoE is intending to expand its Education Cloud Network to more schools and universities,
this market is also considered to be of significant importance to the MoE. This market is also
considered to be competitive. However, this market is also highly dominated by Chinese vendors
although there are few suppliers participating in this market from Europe and the Americas. Again,
here also the MoE should strive to encourage other new entrants from other continents to enhance
competition. This could be done through pre-bid conferences and by encouraging other actors to
participate in such bids.

50. The program also procures other types of relatively low value contracts such as
procurement of vehicles, motorcycles, consultancy services etc. There are established markets for
these types of low-value contracts from which MoE can acquire such goods and services.

51. Overall there are established markets for the procurement of TLMs, IT equipment and other
goods and services for the program. However, to make the market more competitive, the MoE
should strive to encourage new entrants in to the market system. However, delays in bid
evaluations and award and signing of contracts in the MoE are currently working against such an
objective of creating a competitive market environment. Such procrastinations in decision makings
and lack of transparency in the procurement process discourages existing market players and
potential new entrants from participating in bids issued by MoE.

52. In conclusion: Under GEQIP I and II, the MoE has made a significant stride and attained
reasonable success in the acquisition of TLMs, IT equipment and other goods and services.
However, procurement planning and using procurement plans as monitoring and management
decision making tools have not been at their best particularly at sub-national level and at the MoE.
Moreover, the efficiency in procurement processing has been a major challenge. Delayed arrival
of strategic goods at destination, by and large because of considerable delays in the preparation of
BDs, bid evaluations, and award and contract signing, is observed under the GEQIP. The causes
for such delays in the MoE include; (i) inadequate procurement management capacity; (ii)

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inadequate lead time; (iii) slow internal approval processes; (iv) challenges in obtaining and
consolidating data on requirements per woreda; (v) delays during the initiation phase and pre-bid
launch; (vi) delays during the evaluation phase; (vii) contract award delays; and (viii) down-stream
logistical challenges. Moreover, inadequate contract management has contributed to the delays in
a considerable manner. The procurement capacity of REBs, universities and CTEs needs
considerable improvement to handle procurement activities under the Program.

Fraud and Corruption

53. In recognition to the threat of fraud and corruption on the on-going democratization and
development process, Ethiopia has proclaimed and established the Federal Ethics and Anti-
Corruption Commission (FEACC) in May 2001 (Proclamation No. 433/2005) mandated to carry
out both preventive and curative approaches for combating corruption in public offices and
enterprises. Likewise, all the regional states have proclaimed and established their respective
Regional Ethics and Anti-Corruption Commission (REACC) to carry out both preventive and
curative approaches in public offices and enterprises. The commissions further have extended their
reach to cover federal institutions, zones and woredas, which include GEQIP-E implementing
institutions (MoE and institutions accountable to it, universities, REBs, and WEOs). In addition,
fraud and corruption prevention and control is further strengthened using internal auditors
(WoFEDs) and the Council’s Budget/ Audit Committee). Besides, the system of control has been
further strengthened through institutionalizing of a structure for the management of complaints
that arise in the course of service delivery, mismanagement of resources, procurement
administration, etc. Overall, FEACC has the mandate for coordinating anticorruption efforts across
regions, including in rural woredas, urban local governments, zones and preparing a national report
on anticorruption efforts across the country.

54. Thus, the legal framework and the structural arrangement for fraud and corruption can
handle the Program requirements. In this respect, the Program will rely on FEACC who will be
responsible to prepare a national report on anticorruption efforts across the country and share this
information with the World Bank. The MOU signed between the World Bank's Integrity Vice
Presidency (INT) with the FEACC on October 3, 2011 provides the framework for cooperation
and sharing of information on fraud and corruption allegations, investigations and actions taken,
including on procurement. In this regard, it is recognized that the mandate of FEACC including
Addis Ababa branch office, since 2017, has been circumscribed to preventive activities while
curative practices are transferred to the Federal Attorney General Office. Accordingly, alignment
of the agreement is required so that FEACC will accomplish the tasks in cooperation with the
Federal Attorney General Office, REACCs and others concerned and share with the World Bank.

55. The performance assessment of FEACC/REACCs indicates that preventive and curative
activities have been undertaken across public institutions, including MoE, Higher Education
Relevance and Quality Agency, Technical Skill and Training Institute, Higher Education Strategic
Center, Educational Materials Production and Distribution Center . Similarly, woreda level school
audit findings and the accomplishments of FEACC, as documented in the Annual reports for
2013/14, 2014/15, and 2015/16, were displayed in public institutions including universities that
have been technically supported in the management of procurement that highlights the effort set
forth in the prevention and control of fraud and corruption. Whilst the efforts are encouraging, the

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various preventive and curative activities undertaken signify the need to strengthen fraud and
corruption prevention and control so that it will be possible to sustain the achievements.

56. In light of the above, the assessment has highlighted fraud and corruption prevention and
control limitations such as EAC staffing, recording, organizing, and reporting capacities;
information sharing; effectiveness of internal auditors; and transparency and people’s
participation. The following are summary of the findings of the assessment, including key
challenges and proposed mitigation measures.

57. Alignment of the mandate of FEACC with the MOU signed between the World
Bank's Integrity Vice Presidency (INT): It is recognized that the mandate of FEACC including
Addis Ababa branch office, since 2017, has been circumscribed to preventive activities while
curative practices are transferred to the Federal General Attorney Office. Accordingly, alignment
of the agreement is required so that FEACC will accomplish the tasks stated in the MOU in
cooperation with the Federal Office of the Attorney General, REACCs and others concerned and
share to the World Bank.

58. Staffing: The staffing pattern and quality/commitment of sector /woreda based ethics
officers have displayed variations in performance that are exacerbated by staff turnover (within
the respective jurisdiction). Although FEACC and REEACs have formulated regulations that
require the placement of ethics officer(s) in all government institutions, only 60 percent of
WoFEDs and WEOs of the visited woredas did have fulltime EAC officers (40 percent of woredas
have fulltime EACs, 20 percent were focal persons). Besides, the effectiveness of working with
focal persons (Afar) was a concern. Correspondingly, enforcing woreda level placement of
qualified EAC Officers at least in WoFEDs and WEOs strengthens fraud and corruption prevention
and control of public resources.

59. Staff capacity: As recognized by F/REACCs, limitation in staff capacity is also reflected
in lack of fraud and corruption records. Lack of capacity to systematically record, classify, and
report public complaints is also a common problem in Public Complaint Handling Offices
(PCHO). Hence, it will be necessary to formulate common formats and indicators that meet the
requirements of all parties including the World Bank; training of EAC and PCH Officers at woreda
level on the sector as well as in M & E

60. Budget/ logistics: The operation of PCH Offices at various levels was constrained by the
lack of budget /logistic facilities. In this regard, a progress has been noted in SNNP woredas that
initiated allocation of financial resources that facilitated in addressing and enhancing /enforcing
the implementation of decisions.

61. Auditors capacity: The performance rate of internal auditors varies from woreda to
woreda (number of schools audited per woreda/staff size). Besides, the function of internal audit
in Afar both at REB and WoFEDs was very limited/weak (none of the schools have been audited)
that requires the provision of capacity building support to enhance the performance rate of auditing
staff.

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62. PSTAs capacity: In general, the practice of SIPs indicated capacity limitations. The focus
of SIPs had been on the identification of expenditure items (equivalent/identical in value with
resources allocated) while it is generally constrained by lack of elaborated objectives (that display
intentions/the link with the program, and the framework for activity design), resource estimates,
mechanism for implementation, and monitoring and evaluation activities.

63. Transparency and information sharing: the system of transparency and information
communication to the public and among woreda offices/EAC officers in terms of recording and
reporting capacities need to be enhanced. In association, regions should be aware of such
information sharing and reporting requirements on fraud and corruption allegations, investigations
and actions taken, including on procurement.

64. Complaint handling mechanisms: The system of control has been strengthened through
instituting a system for the management of whatever type of complaints arising in the course of
service delivery, mismanagement of resources, procurement administration, etc. These
arrangements include: procurement complaint arrangement organized at each level of the
government’s structure i.e. at woreda, region and federal as per the country’s Procurement and
Property Administration Proclamation. At woreda level, WoFED is responsible for the
management of all the woreda level procurements as well as for handling procurement complaints.
At regional level, similar complaints are handled by BoFED and the sector concerned while
appeals are reviewed/decided by a Procurement Board. Further appeals on procurement complaints
decisions then will be submitted to FEACC/REACCs and its representations/ EAC officers.

65. Accordingly, capacity building measures/ requirements need to be provided to strengthen/

improve the effectiveness of fraud and corruption prevention and control practices that should be
implemented prior or during the Program years.

66. Sharing of debarment list of firms and individuals: The Government of Ethiopia
commits to use the World Bank’s debarment list to ensure that persons or entities debarred or
suspended by the World Bank are not awarded a contract under the Program during the period of
such debarment or suspension. FPPA has a website and will provide a link to the World Bank
debarred list for use by implementing agencies. The update of the debarment list as well as the
deviation from the list of debarred firms will be monitored as part of the annual Program
audit/annual Program assessment.

III. Fiduciary risk and mitigating measures

Addressing fiduciary risk
67. Based on the findings noted above, the fiduciary risk assessed for this operation is classified
as “substantial”. Overall, the fiduciary assessment concludes that the examined program financial
management and procurement systems are adequate to provide reasonable assurance that the
financing proceeds will be used for intended purposes, with due attention to principles of economy,
efficiency, effectiveness, transparency and accountability, and for safeguarding Program assets
once the proposed mitigation measures have been implemented. Appropriate systems to handle
fiduciary risks including fraud and corruption, and effective complaint-handling mechanisms, have
been agreed on and established. Risk mitigation measures for the identified risks are discussed and
agreed with government.

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68. Summary of risks and mitigation measures is presented in Table 1. The key mitigating
measures are included in the PAP.

Table 1: Summary of risks, proposed mitigation measures/action plan

Risk description Proposed mitigation measures/action Risk rating

plan
Financial management
Plan and budgeting
Proclaimed budget is different from Submit supplementary budget to the Moderate
working budget government following the government
procedures
Delayed annual work plan for special Align the AWPB with the government Substantial
purpose grants budget calendar
Low budget utilization for textbooks Finalize the planning exercise early and Substantial
procurement and TDP conduct semiannually a re-planning
session to reflect on actual utilization
Transparency
Budget utilization and financial Program audit and financial information Moderate
information not disclosed to the public should be disclosed on the MoE website
or other modalities and follow the SGG
and disclose school grant information to
the public
Accounting and reporting
Standalone IBEX not fully in use for the Roll out the stand-alone IBEX system to Substantial
SPG all GEQIP regions and woredas (This is
expected to be finalized within the
implementation period of GEQIP II
(closing date June 2018)
Weak accounting at school level Each region should provide training and Substantial
workshop to the school cluster leaders on
financial management annually
Treasury management and fund flow
Delay in school grant fund transfer Enhance the capacity of the EMIS, Substantial
finalize the school grant allocation at the
beginning of the year
Internal control and internal audit
Lack of monitoring mechanism for Establish an assessment mechanism on a Moderate
distribution of textbooks yearly basis to see if the text books have
reached the intended beneficiaries.

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Weak internal audit function at woreda Strengthen the staffing and qualification Substantial
level of the internal audit function

Establish clear division of labor for

internal audit staff members to enhance
accountability (being looked at the
ESPES)
Internal control weaknesses at school level Regions should allocate adequate budget Substantial
for woreda internal audit units to monitor
schools

SIP committees should be provided with

simplified checklist for monitoring the
school grant utilization at the school
level
External audit
3% of schools’ audit may not be completed Early engagement with the auditors to Substantial
finalize the audit timely (submitting the
school grant audit as part of the financial
audit is a financial covenant)
Action not taken timely on audit report Take timely action on all audit report Substantial
findings findings of the program (MoE and
REBs)
Procurement
Lack of a system of coordination between Establish a workable system (task force Substantial
stakeholder directorates in planning and chaired by PRMD Director) to ensure
implementation of procurement coordination between procurement and
key stakeholder directorates
Lack of a system for safe and secure Establish proper record keeping and High
procurement records management and procurement information tracking system
tracking
Lack of experience and capacity in Implement capacity building program for Substantial
preparation and use of procurement plan management and procurement staff to
for procurement monitoring enable proper preparation of procurement
plan and using it as a monitoring tool
Lack of proficient and qualified Implement a strategy that enables High
procurement and contract management procuring entities to hire qualified and
staff to plan and execute the Program experienced procurement and contract
administration staff
Use of SBDs which do not provide Implement capacity building program for Substantial
adequate information and lack clarity in procurement staff in the preparation of
qualification and evaluation criteria bidding documents, evaluations etc.
Delays in procurement processing, in Establish at each entity key procurement Substantial
decision making, evaluation of bids, award process performance indicators and
and contract signing,

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 monitor the implementation of such
standards
Inadequate oversight mechanism at federal Strengthen internal audit and appoint Substantial
and regional levels independent procurement auditor for
annual program procurement audit
Limited publishers, printers for Enhance competition by encouraging Medium
development, printing and distribution of new entrants and existing bidders and by
TLMs making the bidding process credible

FPPA’s SBDs/RFPs not suitable for Adapt World Bank’s SBDs for Substantial
procurement of textbooks, IT equipment Procurement of textbooks and IT
and consultancy services equipment and SRFP for selection of
consultancy services and negotiate with
FPPA for use of these SBDs/SRFPs for
the Program
Fraud and corruption and complaint handling mechanism
The operation of REACC and EACs in the Study on the causes of weak functioning; Substantial
education sector (Afar) was not and implement measures/
substantiated with performance reports; recommendations.

Major Program related sectors at Woreda Assign fulltime EAC Officers at woreda Moderate
level lacks EAC Officers; level at least in WoFEDs and WEOs
EAC as well as PCH officers at all levels Build/strengthen the capacity of EAC Moderate
have weak recording, organizing, and officers on the sector; monitoring and
reporting capacities; evaluation; recording, organizing and
reporting

Introduce/ develop jointly agreed

reporting formats
Varying level of performances/ coverage Study on the causes of varying Substantial
of internal auditors: performances; and implement measures/
recommendations (formulate
benchmarks)
Transparency and people’s participation: Provide capacity-building support on the Low
principle of transparency and real
people’s participation.
Weak awareness /capacity of offices/ Build/ create awareness on the MOU Moderate
officers on the MOU signed between the signed between the World Bank's
World Bank's Integrity Vice Presidency Integrity Vice Presidency (INT) with
(INT) with FEACC FEACC

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69. Reviewing implementation progress: The World Bank fiduciary team will review the
implementation progress of the Program in the following areas:

- Review of reports: This can be quarterly financial Reports, annual Program financial
reports and relevant progress reports on the implementation of Program Action Plan and
DLIs, etc.
- Conducting field visits or fiduciary specialist will participate in missions or
supervision/implementation support field visits;

70. The objective is to understand the achievement of agreed actions; to monitor the continuing
adequacy of systems, risks and mitigation measures, and covenants and agreements; and to
understand the status of capacity.

71. Monitoring fiduciary risks: The frequency and breadth of fiduciary systems
implementation support may be varied in accordance with changes in the risks to the Program.
Given the risk profile shown above this Program will be reviewed twice. In regards to fiduciary
aspects, it is expected that as implementation progressed, substantial improvements in procurement
and financial management capacities will reduce the risk profile and may afford a reduced
supervision schedule. This will be determined by the World Bank’s fiduciary systems team in
consultation with other pooling partners to monitor compliance with the Financing Arrangement
and fiduciary provisions of legal covenants.

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 Annex 6: Summary Environmental and Social Systems Assessment

1. The World Bank has conducted the Environmental and Social Systems Assessment
(ESSA) for managing the environmental and social effects of the proposed Program in a manner
consistent with Operational Policy on PforR Financing. The ESSA assesses Ethiopia’s existing
environmental and social management systems for the education sector; describes the extent to
which the applicable government environmental and social policies, legislations, procedures and
institutional systems are consistent with the six ‘core principles’ of PforR Financing; and
recommends actions required to address the gaps identified during the assessment and enhance
performance during Program implementation. The six core principles of the PforR Financing are
(i) general principle of environmental and social management; (ii) natural habitats and physical
cultural resources; (iii) public and worker safety; (iv) land acquisition; (v) indigenous peoples and
vulnerable groups; and (vi) social conflict. The ESSA provides an assessment of the current
conditions and proposes measures strengthen the system.

2. The ESSA of the Program was conducted by the World Bank to assess the environmental,
social and safety management capacity of implementing agencies; review existing legal
frameworks at operations level; and identify potential environmental and social benefits, impacts
and opportunities in the education sector. Specifically, the ESSA was conducted to (i) identify
environmental and social risks associated with the Program; (ii) assess the strengths and
weaknesses of the legal, institutional, and implementation frameworks; and (iii) recommend
measures to strengthen national and regional systems and capacity to deliver the Program in a
sustainable manner.

3. ESSA mainly focuses on the identification of existing capacities and gaps of MoE and its
counterparts at all levels including regional education bureaus, woreda education offices,
universities, colleges, schools, to achieve environmental and social objectives against the range of
environmental and social impacts that may be associated with the Program.

4. The preparation of the ESSA was undertaken based on various methods of data collection.
The methods used for undertaking this ESSA were (i) desk reviews; (ii) key informant interviews;
(iii) group discussions and consultations; (iv) public disclosure; and (v) analysis of ESSA
preparation. The assessment was undertaken in MoE, which is the key implementing agency;
GEQIP II Coordination Office; Ministry of Federal and Pastoral Development Affairs; and
Benishangul-Gumz REB.

5. The Program will use government system for program implementation, oversight, FM,
procurement, safeguards, M&E, and reporting arrangements. The Program is implemented by
several institutions at various levels. The MoE will have the overall responsibility for policy
guidance and oversight for Program implementation and the MoFEC is responsible for GEQIP-
E financial coordination. The universities and at regional level, the REBs, CTEs, WEOs, and
schools will be involved. The PCO will be established and will be responsible for consolidating
the information provided by implementing agencies. The PCO will have a specific environmental
and social system with the responsibility for the ESSA proposed program action plan coordination,
implementation, monitoring and evaluation.

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6. The Program has many environmental and social benefits. Overall, the risk assessment and
screening suggests that the environmental and social impact of the Program is likely to be positive,
owing to benefits such as improved education system for the children through ensuring access to
better facilities; access to better and accessible classrooms; environmentally friendly schools;
improved sanitation in the surroundings. The social benefits also include equitable access to
education across regions, support to pastoralists and emerging regions access to quality education,
ensuring gender equality in general education, and support to mother tongue education.

7. The Program’s interventions are also expected to have the following limited and reversible
environmental and social risks associated with the Program: dust and noise during renovation
activities, chemical wastes of school laboratories, occupational health and safety, lack of
considering cultural appropriateness while insuring quality education, exclusion of non-special
needs vulnerable children, likely occurrence of conflict, poor grievance redress system, and
shortage of budget for the implementation of safeguards.

8. The Program will support activities that focus on improving equity, internal efficiency and
learning outcomes in general education. Activities include provision of teaching and learning
materials, teachers and education leaders training, school grants, capacity building and technical
assistance.

9. The ESSA shows that the overall risk for the proposed Program on the environmental and
social safeguards and safety management perspective is ‘moderate’. This is mainly because the
Program does not support construction activities involving civil works and land acquisition and
loss of assets. The Government of Ethiopia has the necessary legal frameworks for environmental
and social management and institutions to ensure consistency with the six core principles of the
PforR Financing. The environmental and social legal frameworks of Ethiopia are found adequate.
The primary legislations that support environmental and social management in the education sector
in Ethiopia are the Constitution, Environmental Policy of Ethiopia, Environmental Impact
Assessment Proclamation No. 299/2002, Solid Waste Management Proclamation No. 513/2007;
Research and Conservation of Cultural Heritage Proclamation No. 209/2000; Environmental
Impact Assessment Procedural Guideline (2003); Environmental and Social Management Plan
Preparation Guideline (2004); National Policies for Equitable Access to Quality Education;
National Social Protection Policy; Cultural Policy; National Policy on Ethiopian Women; and
other Laws, Strategies, and Guidelines Enforcing Special Support for Developing Regions and
Vulnerable Groups.

10. Even though the legal bases are strongly established, their implementation is not consistent
in all regions and varies across regions in terms of environmental and social impact assessment
(ESIA) preparation, review and approval; Environmental and Social Management Plan (ESMP)
preparation and implementation; preparation and implementation of safety management plan
applicable to the respective activities of the Program; monitoring and enforcement on safeguards
management; and stakeholder consultation, as required at all levels.

11. An assessment of environmental and social regulations, policies and procedures, including
institutional capacity and practices indicates the existence of limited environmental and social risks
associated with the proposed Program implementation. The analysis indicates that five out of six

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core principles of PforR financing are applicable to this Program and the assessment of the
Program identifies the gaps and opportunities to strengthen the system and the findings are
discussed in the Table below:

Core Principle 1: General Principle of Environmental and Social Impact Assessment and Management
Findings: Core Principle 1 is considered in terms of environmental and social management at GEQIP level.
Overall, the analysis found that while the environmental impacts of GEQIP-E tend to be addressed by the
education sector, a system-based approach is not in place. While there is a national legal and regulatory
framework for environmental management, the education sector (and particularly MoE) has no defined system
for ESIA and for collecting and managing environmental data on its impacts.
Core Principle 2: Environmental Considerations – Natural Habitats and Physical Cultural Resources
Findings: No major gaps that specifically relate to natural habitats or physical cultural resources were
identified given the Program context. However, there may be a possibility that some schools might be
located nearby natural habitats or areas rich in physical cultural heritage.
Core Principle 3: Environmental Considerations – Public and Worker Safety
Findings: Core Principle 3 is applicable to the Program as some schools could use school grants for
purchase of chemicals for laboratories. The analysis found that Core Principle 3 is applicable in terms of the
use of chemical laboratories and disposal of hazardous wastes by the schools.
Core Principle 4: Social Considerations – Land Acquisition
Findings: There is apparently no ground that the implementation of GEQIP-E will cause land acquisition
and loss of assets. As a result of this, Core Principle 4 is not applicable for the Program.

Core Principle 5: Social Considerations – Indigenous Peoples and Vulnerable Groups

Findings: This core principle is applicable on the basis of the following considerations: Gender disparity in
schools, pastoralist education/emerging regions, Special Needs/Inclusive Education; and other non-special
need vulnerable children.
Core Principle 6: Social Considerations – Social Conflict
Findings: When schools in all woredas do not receive appropriate school grant and/or citizens do not share
benefits equally, there could be conflicts during project implementations and become obstacle for
sustainability.

12. Overall, the ESSA shows that existing environmental and social systems need to be
strengthened for satisfactory Program implementation. As a result, environmental and social
management system need to be established under MoE (within PCO) for the proper
implementation, coordination monitoring and reporting of safeguards implementation. There
should be budget arrangement in place to enhance the institutional capacity through training and
providing technical assistance in the preparation of environmental and social management
guidelines.

13. Monitoring and supervision of due diligence measures related to environmental and social
issues will be the responsibility of MoE and the World Bank supervision team (further agreement
will be reached during the stakeholders consultation and will be incorporated).

14. The proposed action plan will strengthen the MoE’s capacity and fill the identified gaps
for managing the environmental and social issues with regard to implementation of the Program.
The recommendations and actions of the ESSA targets to ensure that risks identified in the
assessment are properly addressed to meet the PforR financing core principles through
strengthening the environmental, social and safety management capacity and performance of

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implementing agencies at all levels. The proposed and agreed actions will be implemented by MoE
to make sure that the identified gaps are adequately addressed and the Program is implemented in
accordance with the PforR financing policy.

15. Based on the analysis, the ESSA identified the following main areas for action, which are
included in the PAP, to ensure that the Program interventions are aligned with the core principles
for improved environmental and social due diligence at MoE and its counterparts at regional and
woreda levels.

Table 1. ESSA Recommended Program Action Plan

Action Due date Responsible Output

body
Establish ESMS at MoE (and some Within 3 MoE, EBs ESMS established.
regions if required) including months of staff and furnished
functional GRM; assign effectiveness office in place.
environment and social specialist ESMG, manuals
having furnished office and other and checklists
facilities; develop and adopt ESMS prepared
guidelines (ESMG), screening Y1-Y2 MoE and REBs ESMS established.
checklists, and manuals; ESMP, and staff and furnished
develop detail training plan & office in place.
provide training at all levels Prepared ESMG,
checklists manuals
and ESMP; waste
management plan
that comprises of
protocol for
handling, storing,
transporting and
disposing of
used/expired
laboratory
chemicals and
other hazardous
wastes if applicable
Conduct proper and timely Y1-Y2 MoE, REBs, GRM system
community/ project affected persons WEBs and strengthened
awareness raising briefings/ Schools (including
consultations on environment and establishing up-
social impacts of Program activities; take locations).
the established GRM and ESMS; Developed training
and develop/adopt consultation plan and number of
format and procedures training raining
participants report
disaggregated by
gender

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Ensure Program benefit sharing and Y1-Y2 REBs, WEBs Report on types of
equitable access for non-special and Schools benefits delivered
need vulnerable in school children and number of non-
special need
vulnerable
beneficiaries
disaggregated by
gender
Conduct bi-annual environment Y1-Y4 MoE and REBs Number of
and social management biannual technical
performance review and annual review meetings
environment and social audit reported.
Cleared annual
environment and
social audit report.

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 Annex 7: Systematic Operations Risk Rating (SORT)
Ethiopia: GEQIP-E

Systematic Operations Risk-Rating Tool (SORT)

Risk Category Rating (H, S, M, L)

1. Political and Governance H

2. Macroeconomic S

3. Sector Strategies and Policies L

4. Technical Design of Project or Program M

5. Institutional Capacity for Implementation and Sustainability S

6. Fiduciary S

7. Environment and Social M

8. Stakeholders M

9. Other -

OVERALL S

1. The key risks affecting the overall risk ratings are the following. First, political and
governance challenges associated with the recent social and political unrest have led to temporary
disruptions in education service delivery in some parts of the country. Any further deterioration in
the security situation could affect the impact of the proposed Program. Second, the response to the
recurring drought and floods in the country may affect the ability of the Government to allocate
adequate budget to implement the Program. Third, ESDP VI, which the Program will partially
support, is yet to be developed and approved. Although it is expected to pursue the same objectives
and subprograms, large changes in ESDP VI could pose a risk to the PforR operation. Fourth,
delay in decision making, and limited institutional capacity for implementation and monitoring
due to the Program involving multiple implementing agencies across the entire country, including
MoE, REBs, WEOs, universities, CTEs, and schools. Fifth, fiduciary risks associated with delays
in school grant transfers, low budget utilizations, weak reporting from schools, weak internal audit
functions, and weak procurement system.

2. These risks will be mitigated through the following activities. First, the Program
proposes to target gender, disability and geographic sources of inequity, which can play a role in

145
ensuring that all groups share the benefits of growth and in helping resolve some of the societal
issues. Second, the Program will require the government to increase its contribution to costs related
to key education sector inputs such as school grants and textbooks that have been covered by
external partners for the last few years to improve sustainability. Third, the Financing Agreement
will include a clause to ensure that the successor Program does not compromise achievement of
objectives of the PforR. Fourth, stakeholders from the central government to regional and, to the
extent possible, woreda levels, will be consulted in the design of the subprograms to ensure deeper
understanding and ownership. Fifth, the Program has put in place DLIs to expedite decision
making process and incentivize achievements, and capacity building measures with a focus on
strengthening implementation and M&E systems at different levels of educational administration.
Finally, the TA component will enhance capacity at woreda and schools levels to improve
reporting and internal control functions and enhance procurement capacity at MoE and REB level.

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 Annex 8: Program Action Plan

Action Description Due Date Responsible Completion

Party Measurement
1. Technical
1.1. Prepare Program Operations 1 month after PMRD POM adopted by
Manual, including M&E, effectiveness the Government
communication plan, and date
verification procedures
1.2. Establish PSC and PCO; Y0-Y1 MoE, REBs PSC and PCO
hire/assign personnel for operational; staff in
Program coordination; M&E; place for Program
fiduciary; safeguards; and coordination,
technical experts for MoE and implementation,
emerging regions M&E, fiduciary
and safeguards.
1.3. Prepare guidelines for Y0 SIP Directorate Guidelines for
performance-based awards to performance-based
schools awards to schools
approved and
disseminated
1.4. Develop on-line textbook Y0 EMIS, CDID Online textbook
distribution and inventory distribution and
management system inventory
management
system established
1.5. Ensure Program objectives are Y2 MoE, DPs Program scope and
reflected in ESDP VI objectives are part
of ESDP VI
2. Fiduciary Systems
2.1. Create budget line at MoE level Y0 MoE Budget line for SG
for school grant and textbooks created and
government fund
allocated
2.2. Align preparation of AWPB Y1-Y4 MoE AWPB aligned
with the government’s budget with government
calendar; submit supplementary budget calendar
budget request timely; and
monitor budget utilization
through quarterly IFRs and
annual re-planning sessions
2.3. Monitor school grant utilization Y1-Y4 MoFEC; MoE, Budget monitoring
by (i) providing SIP REBs, WEOs and internal audit
committees with simplified strengthened
checklist for monitoring; and
(ii) allocating adequate budget
to woreda internal audit units to
monitor schools
2.4. Ensure that 3% of schools are Y1-Y4 MoE, REBs, Action taken on
included in annual audits and WEOs, external audit

147
 MoE, MoFEC and REBs to universities, findings within
take timely action on all audit CTEs, and three months of
report schools receipt of audit
findings
2.5. Disclose Program audit and Y1-Y4 MoE, schools Audit and financial
financial information on MoE information
website or other modalities. disclosed to the
Post annual allocation and public
utilization school grant on
school notice boards
2.6. Strengthen procurement system Y0-Y4 MoE, REBs, Performance
and capacity by (i) establishing universities, standards attained
and monitoring procurement and CTEs for key
performance standards (ii) MoE procurement
maintaining three procurement processes
and two contract administration
staff, and each REB, university
and CTE to maintaining one
procurement staff during the
operation (iii) improving
procurement information
tracking system and
documentation; and (iv)
appointing an independent
procurement auditor to carry
out procurement audit annually
of the GEQIP-E and implement
action plan before the end of
each fiscal year.
2.7. Assign fulltime EAC officer at Y0-Y2 MoE, REB and EAC officers
woreda education offices Woredas assigned in WEOs
3. Environmental and Social
Systems
3.1. Establish ESMS at MoE (and Y0-Y4 MoE, REBs Before
some regions if required), effectiveness:
including functional GRM; ESMS established;
environment and social and ESM
specialist with facilities; guidelines and
guidelines, checklists, manuals ESMP, waste
and ESMP for ESMS; training management plan,
on environment and social at & protocol
all levels prepared

Y1-Y2: GRM
system
strengthened;
training plan
prepared and
implemented

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3.2. Conduct proper and timely Y1-Y2 MoE, REBs, Report on briefings
awareness raising WEOs, schools and consultations,
briefings/consultations on including number
environment and social of participants by
impacts of Program activities,
gender
established GRM and ESMS
for community/project affected
persons
3.3. Include vulnerable school Y1-Y2 REBs, WEOs, Report on types of
children with non-special needs schools benefits delivered
to share Program benefits and number of
beneficiaries by
gender
3.4. Conduct bi-annual Y1-Y4 MoE, REBs Reports on
environment and social biannual technical
management performance review meetings,
review and annual and annual
environment and social audit
environment and
social audit

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 Annex 9: Implementation Support Plan

1. The proposed implementation support plan is consistent with the Government’s ESDP that
the PforR operation will be supporting. The implementation support plan also considers the
Program-specific challenges and risks as defined in the SORT, and the lessons learned from the
implementation of the Program predecessor - GEQIP II. Program implementation rests under the
responsibility of the PMRD under the MoE’s overall responsibility for policy guidance and
oversight with targeted and continuous implementation support and technical advice from the
World Bank and DPs.

2. The implementation support strategy is based on several mechanisms that will enable
enhanced implementation support to the Government, on-time and effective monitoring of the
Program, and guidance to implementing agencies on technical, fiduciary, environmental and social
aspects as necessary. The implementation support thus comprises (a) joint review meetings and
missions; (b) regular technical meetings and field visits; (c) progress report on DLI achievement;
(d) M&E; and (e) harmonization among DPs and other stakeholders.

3. The World Bank’s implementation support will broadly consist of the following:
‐ Capacity-building activities to strengthen the ability to implement the Program, covering
the technical, fiduciary, and environmental and social dimensions
‐ Provision of technical advice and implementation support geared to the attainment of the
PDOs, DLIs, and intermediate results indicators
‐ Ongoing monitoring of implementation progress, including regularly reviewing key
outcome and intermediate indicators, and identification of bottlenecks
‐ Review and verification of DLI progress following agreed protocols
‐ Monitoring risks and identification of corresponding mitigation measures
‐ Close coordination with other DPs to leverage resources, ensure coordination of efforts,
and avoid duplication

4. The World Bank’s implementation support team will be composed of country office based
Task Team Leader (TTL) and co-TTL, and both HQ-based and country office-based operations
and specialist staff, who will be closely working with the client on a regular basis on
implementation monitoring. Consultants will also be engaged for additional support in the key
areas of reforms including governance, fiduciary, and safeguard management.

5. The role of the DPs will be critical in the implementation support of the PforR, similar to
GEQIP I and II. DPs will provide financial support for the proposed Program, contribute technical
inputs, closely monitor implementation progress, participate in joint review meetings and
missions, and provide technical assistance. DPs will align their TA/direct financing to facilitate
improved implementation support and capacity building. The World Bank is expected to continue
to manage the pooled funding. Grant agreement between the World Bank and the Government will
layout financing arrangements for the Program. Administrative Agreements between the World
Bank and each DP will clarify roles and responsibilities of the World Bank and DPs.

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6. Joint MoE/DPs quarterly meetings and semi-annual review missions will be helpful to
bring pool DPs and the government to a common platform to review implementation progress and
achievement of results, and to provide support to timely resolve implementation issues and build
institutional capacity.

Table 9.1. Main focus of Implementation Support

Time Focus Skills Needed Resource
Estimate
First twelve Technical ECD 2 weeks
months review/support Gender mainstreaming 2 weeks
Special needs and inclusive 2 weeks
education
Curriculum and textbooks 6 weeks
Teacher development 8 weeks
School improvement planning 6 weeks
and SG
ICT in education 4 weeks
Learning assessment 4 weeks
EMIS 4 weeks
Inspection 4 weeks
Operations 3 weeks
M&E 4 weeks
Economist 4 weeks
Procurement training Procurement 46 weeks
and monitoring
FM training and FM 6 weeks
monitoring
Environmental and Environmental and social 3 weeks each
social monitoring and
reporting
Institutional Coordination and leadership TTL and Co-
arrangement and TTL: 30
Program coordination weeks
Administration Administrative support 10 weeks
12-48 months Technical ECD 6 weeks
review/support
Gender mainstreaming 6 weeks
Special needs and inclusive 6 weeks
education
Curriculum and textbooks 18 weeks

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 Teacher development 24 weeks
School improvement planning 18 weeks
and SG
ICT in education 12 weeks
Learning assessment 12 weeks
EMIS 12 weeks
Inspection 12 weeks
Operations 9 weeks
M&E 12 weeks
Economist 12 weeks
Procurement training Procurement 12 weeks
and monitoring
FM training and FM 18 weeks
monitoring
Environmental and Environmental and social 9 weeks each
social monitoring and
reporting
Institutional Coordination and leadership TTL and Co-
arrangement and TTL: 90
Program coordination weeks
Administration Administrative support 30 weeks

Table 9.2. Task Team Skills Mix Requirements for Implementation Support
Skills Needed Number of Staff Weeks per FY
Program management (TTL and Co-TTL) 30
Education specialist 9
Operation officer 3
M&E 4
Economist 4
FM specialist 6
Procurement specialist 4
Environmental specialist 3
Social safeguard specialist 3
Administrative support 10

Table 9.3. Role of Partners in Program Implementation

Institution/Country Role
DFID, Embassy of Finland, UNICEF Pool partner
Provide TA

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Participate in joint review meetings and missions

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 Annex 10: Investment Project Financing (IPF) based Technical Assistance (TA)

Introduction
1. The Program includes an IPF based TA of US$10 million to strengthen the capacity of the
Government to implement a results-based operation and mitigate implementation risks.

2. The IPF will support achievement of the PDO by (i) addressing key gaps in policy and
capacity at the national and subnational levels to deliver sustained results under the Program; (ii)
preparing the education system to respond to recurrent disasters which undermine the achievement
of results; and (iii) providing support for management of the system to deliver under a results-
based modality.

3. The IPF based TA has three components: (i) enhanced capacity for delivering sustained
results; (ii) emergency response preparedness; and (iii) GEQIP-E management.

IPF Component 1: Enhanced capacity for delivering sustained results (US$500,000)

4. Under this subcomponent, TA will be provided to (i) establish a sound policy framework
for expanding early childhood education in Ethiopia; and (ii) integrate ICT for improved service
delivery.

Subcomponent 1.1: National policy framework for preprimary education (US$250,000)

5. As discussed in earlier sections, high quality preprimary education is critical for Ethiopia
to achieve the key outcomes of improved student learning and completion of basic education.
Although preprimary education has become a major part of government education sector planning,
the absence of a clear policy for ECCE service delivery is preventing effective scale-up. Under
Results Area 1, the Program will support scaling up of QEAP to ensure quality O-Class provision
in the country, but in order for this effort to be sustainable, an enabling environment will be crucial.
MoE established the National Policy Framework for Early Childhood Care and Education (ECCE)
in 2010 under the ESDP III, jointly with the Ministry of Health and Ministry of Women, Children
and Youth Affairs. However, ESDP V did not specify any revision of this Policy Framework.
Under the proposed Program, the National Policy Framework will be revised to reflect rapid
changes in the ECCE landscape in Ethiopia, harmonize the multiple policy efforts from the MoE
and REB, and incorporate lessons learned from various interventions in pre-primary education.
Furthermore, this activity will provide a foundation for a roadmap toward comprehensive and
inclusive pre-primary education, which will eventually be extended to early learning for 4- to 6-
year-old children. This subcomponent will finance consultancy services for development of the
National Policy Framework.

Subcomponent 1.2: ICT for education (US$250,000)

6. ESDP V identifies ICT as a means to improve the quality of teaching and learning in
general education. Through its ICT intervention, GEQIP II aims to improve learning conditions,
learning experience, and learning outcomes for learners in selected secondary schools and
universities. Specifically, GEQIP II has supported the provision of e-cloud infrastructure in 300
secondary schools and 10 universities, and the development of e-learning system. As the full
rollout of the ICT infrastructure is expected to be completed by May 2018, it will not be possible
to assess its implementation and impact on the quality of teaching and learning within GEQIP II

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period. Hence, the IPF component will provide support to conduct a study to review
implementation challenges, assess the impact of introducing ICT in secondary schools, and make
recommendations for policy reform and future interventions.

IPF Component 2: Emergency response preparedness (US$1.5 million)

7. Ethiopia is highly vulnerable to disasters, in particular famine and drought. The World
Bank’s recent regional study on the quality of education highlights evidence from a number of
studies which show that natural disasters reduce the educational attainment of the rural poor,
particularly girls. Enabling the education system to cope with and respond efficiently to such
disasters is an important area of ensuring that all of Ethiopia’s children benefit from enhanced
quality of schooling. This is especially important as the population living in drylands and
vulnerable to weather shocks and climate change is expected to increase by 2030.

Subcomponent 2.1: Strategy for restoring education services in response to disaster (US$1.5
million)
8. The IPF-TA component will provide technical assistance to enhance the capacity of the
MoE and of the relevant regional and woreda offices to anticipate, prepare for and implement an
emergency plan to cope with drought (enhanced food and water insecurity) and other disasters.

9. A detailed strategy will be developed by the MoE which will: (i) identify the areas and
schools that are vulnerable in drought “hotspot” woredas; (ii) the interventions that would be
promoted to mitigate the risk (for instance, ensuring there is resilient water supply at the school);
(iii) the protocols for triggering the disaster response in schools; (iv) detailed design of the
interventions that would be implemented or scaled up in the event of a disaster (such as school
feeding and emergency provision of water); and (v) the implementation and financing mechanisms
for implementation or scaling up of these interventions including adequate budget allocations.

10. The operation will also invest in building capacity of regions and woredas to effectively
implement the strategy in case of an emergency. This capacity enhancement will include training
of regional, woreda and schools on emergency preparedness in line with the strategy.

Subcomponent 2.2: Contingency emergency response component (US$0)

11. The IPF component will also include a zero allocation Contingency Emergency Response
Component which the Government will have the option of accessing in case an emergency is
declared in any of the country’s regions as a result of a disaster88. The operation will provide up to
US$5 million from the IPF component for emergency response in line with the agreed strategy if
the Government chooses to utilize this facility. The financing will be transferred to the MoE,
regions, or woredas. They could receive an amount of up to US$5 to implement the emergency
interventions.

IPF Component 3: GEQIP-E management and evaluation (US$8 million)

Subcomponent 3.1: Program management (US$4 million)

88 In the event of a disaster in the country, the MoE, through MoFEC, can formally request the World Bank up to US$5 million

from the IPF component in order to respond to emergencies. Funds will be spent on activities that support students to remain in
the school.

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12. The IPF-TA component will provide support to improve Program management,
implementation, monitoring and evaluation. First, the IPF component will provide support for
operations, capacity building activities, and hiring of key consultants at MoE and REB levels to
effectively coordinate, implement and monitor the Program. Specifically, consultants will be hired
for PCO, technical directorates, financial management, procurement and contract administration,
ethics and anti-corruption, and safeguards. The IPF component will also enhance REBs capacity
in Program coordination; procurement management; and safeguards. Furthermore, capacity
building activities should be carried out for procurement, financial management and governance
in areas such as trainings on financial management; advanced goods and equipment procurement
management to the MoE, REBs, CTEs and universities staff and procurement endorsing
committees; training to EAC officers on the sector in the area of recording, organizing and
reporting of fraud and corruption and compliant as well as providing capacity-building support on
the principle of transparency and real people’s participation. The four emerging regions will
receive increased capacity and technical support of this nature, given their tremendous needs.

Subcomponent 3.2: Program evaluation (US$4 million)

13. Second, the IPF component will finance comprehensive Program evaluations at mid-line
and end of the Program. The objectives of Program mid-line and end-line evaluations are to (i)
review implementation challenges and progress towards achievement of the PDO and result
indicators, and provide guidance on necessary adjustments to be made; (ii) assess the effectiveness
and impact of the Program; and (iii) generate evidence for improving effectiveness of the
subprograms, specifically SIP/SGs. This subcomponent will also finance the third-party validation
of results achievement under the PforR.

Implementation arrangements
14. Implementation arrangements for the IPF will follow the Program implementation
structure. The PCO under PRMD will be responsible for coordinating and monitoring the IPF
activities. The PCO with support from implementing agencies (MoE directorates and agencies),
REBs, WEOs, universities, CTEs and schools, will manage/implement the IPF activities. The IPF
budget will be reflected in the AWPB, with provisions for the main activities and sub-activities to
be prepared and implemented by the implementing agencies, and no-objection from the World
Bank.

Fiduciary Arrangements
Financial Management
15. Financial management assessment was conducted in accordance with the Financial
Management Practices Manual for World Bank-financed investment operations issued by the
Financial Management Sector Board on March 1, 2010, and reissued on February 4, 2015, and the
supporting guidelines. In conducting the assessment, the World Bank team has reviewed the
financial management system of MoE, universities, CTEs and MoFEC.

16. The project will build on the strengths of the country’s public finance management (PFM)
system such as the budget process, classification system, and compliance with financial
regulations. The Program also benefits from the country’s internal control system, which provides
sufficiently for the separation of responsibilities, powers, and duties, and it benefits from the effort

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being made to improve the internal audit function. The experience of MoE and MoFEC in the
World Bank financed operations is an asset to the Program.

17. The FM arrangements for the Program follow the Government’s channel 1 fund flow
mechanism, where funds from donors flow directly to MoFEC and from then to the MoE,
universities and BoFEDs (for CTEs). MoFEC will open a separate designated account for the IPF
component. Increasing the capacity of the COPCD within MoFEC is recommended given the
number of additional projects designed in the education sector. The Program will use report-based
disbursement, with submission of Interim Financial Reports (IFRs) with two quarters’ expenditure
forecast to the World Bank and replenishment of project accounts accordingly. MoFEC will submit
IFRs quarterly within 60 days of the quarter end. The project will have independent auditor’s
report every year, to be submitted to the World Bank by MoFEC within six months of the year
end.

18. The conclusion of the FM assessment is that the FM arrangements meet the World Bank
Policy/Directive: Investment Project Financing (updated on August 17, 2017). An action plan has
been developed to mitigate the risks identified in the Program. Detailed arrangements are described
below.

Financial management, budget preparation and approval

19. The Program will follow the government’s budget system, recorded in the government’s
budget manual. 89 MoE follows the government budgeting process and cycle to prepare and
approve budget. Accordingly, MoE will prepare in detail the AWPB of the IPF component in
consultation with the universities and CTEs for certain activities and obtain the necessary approval
from the World Bank and MoFEC following the government’s budget calendar. The budgets
should be prepared in detail to provide for adequate information on the sub- components and
activities. The approved budget will be finally approved by MoFEC and form part of the entities
annual budget to be proclaimed by the parliament.

Budget Control
20. Budgets should be regularly monitored at all levels. The budget monitoring system at MoE
was found to be adequate. The budget of the project should be at least quarterly monitored against
actual expenditure by all implementers. The budget variances will be adequately explained and
justified through the quarterly IFRs.

Accounting
21. Accounting policies and procedures: The Government of Ethiopia follows a double entry
bookkeeping system and modified cash basis of accounting, as documented in the government’s
Accounting Manual. The implementing entities for this project will use the government’s
accounting policies and procedures. These policies and procedures will be used for the project with
some modification to the fund flow, reporting and auditing aspects of the project which are outlined
in the sections of this report.

89
The Ethiopian budget system is complex, reflecting the fiscal decentralization structure. Budget is processed at federal, regional, zonal (in some
regions), woreda and municipality levels. The budget preparation procedure and steps are recorded in the government’s budget manual. The
budgets are reviewed at first by MoFEC then by the Council of Ministers. The final recommended draft budget is sent to parliament around early
June and expected to be cleared at the latest by the end of the FY.

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22. Accounting software: the standalone IBEX system will continue to be used for this
component of the project. The activities should be identified and reflected on the chart of account
for the project to properly obtain the report from the system.

23. Accounting centers: Accounting centers for project funds would include: (i) MoFEC; (ii)
MoE; (iii) universities; and; (iv) CTEs. These institutions would maintain accounting books and
records, and prepare financial reports in line with the government’s accounting system.
Arrangements for consolidation of the financial information are discussed under Financial
Reporting below.

24. Staffing: COPCD is responsible to manage all financial management aspects of channel
one projects. Accordingly, the financial management aspect of this project will be overseen by the
COPCD. At a minimum, the existing number of accountants at the COPCD, MoE, universities and
CTEs should be maintained. Depending on the workload, particularly at the universities and CTEs,
additional accountants could be recruited.

Internal Control and Internal Audit

25. Internal Control: Internal control comprises the whole system of control, financial or
otherwise, established by management to (i) carry out the project activities in an orderly and
efficient manner; (ii) ensure adherence to policies and procedures; (iii) ensure maintenance of
complete and accurate accounting records; and (iv) safeguard the assets of the project. The
overarching principle is that regular government systems and procedures would be followed,
including those relating to authorization, recording and custody controls.

26. All the implementing entities have adequate internal control systems in place which will
be used for this project. There is segregation of duties where by authorization to execute
transaction, recording of the transaction and custody of assets involved in the transaction are
performed by different persons. Ordering, receiving, accounting for and paying for goods and
services are appropriately segregated. Internal control weaknesses around fixed assets, per diem
and travel payments, lack of adequate supporting documents for trainings, etc were noted in
GEQIP. The internal control procedures of the government should be strictly followed and
corrective measures taken timely on all audit report findings.

27. Internal Audit: all implementing entities have internal audit units which are responsible
for reviewing all government resources in the entities. These units prepare annual work plans and
conduct their audits accordingly. However, based on the experience of GEQIP I and II, the
involvement of these units in projects is quite minimal and varies from region to region. All
internal audits should include this project in their annual work plan and provide the necessary
review accordingly. This will strengthen the internal control over the project resources.

Fund flow and disbursement arrangements

28. Fund flow arrangements: The Project will follow channel one fund flow mechanism of
the government whereby fund will flow directly to MoFEC and then to MoE, universities and
regions (for CTEs). The project fund will be deposited into separate designated account to be

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opened by the MoFEC at the National Bank of Ethiopia (NBE). Funds from the separate designated
US$ account will be further transferred in to ETB account to be held by MoE, universities and
regions to be used for payment for goods and services. Fund flow arrangements for the project are
as per Figure 3 below.

Figure 3: Funds flow arrangement

IDA/DPs

US$ Designated Account at

NBE managed by MoFEC

ETB account at MoE and ETB account at BoFEDs

universities

ETB account at CTEs

Fund Flow

Reporting

29. Disbursement method: MoFEC will apply the report based disbursement method.
Disbursement will be made quarterly to cover cash requirements for the next six months based on
the forecasts contained in the IFRs. The project will have the option of using advance, direct
payment and replenishment methods of disbursement. The detail of the documents required and
the procedures will be indicated in the disbursement letter for the project.

30. Designated account: MoFEC will open the Designated Account denominated in US
dollars in the National Bank of Ethiopia on terms and conditions acceptable to IDA. The limit of
the Designated Account would be 6 months forecasted expenditures.

Financial reporting arrangements

31. Financial reporting: For this project, MoFEC will prepare quarterly interim unaudited
financial reports (IFR). These will be submitted to the World Bank within 60 days of the end of
the quarter. MoE, universities and CTEs will submit their reports to MoFEC which will be
responsible for consolidation and submission to the World Bank. The format and the content,
consistent with the World Bank’s standards, were agreed during project negotiation. At a
minimum, the report will include: a statement of sources and uses of funds and opening and closing

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balances for the quarter and cumulative; a statement of uses of fund that shows actual expenditures
appropriately classified by main project activities (categories, sub-components) including
comparison with budget for the quarter and cumulative; a statement on movements (inflows and
outflows) of the project Designated Account including opening and closing balances; a statement
of expenditure forecast for the next two quarters together with the cash requirement; notes and
explanations; and other supporting schedules and documents.

32. In compliance with the government’s financial rules and regulations as well as IDA
requirements, MoFEC will produce annual project financial statements similar to the contents of
the quarterly IFRs. The annual financial statement will be similar to the IFRs, with some
modifications as to be indicated in the audit TOR. These financial statements will be submitted for
audit within three months after the end of each year.

External Audit
33. Annual audited financial statements and audit reports (including Management Letter) will
be submitted to IDA within six months from the end of the fiscal year by MoFEC. The annual
financial statements will be prepared in accordance with the standards indicated in the audit TOR
agreed during negotiation. The audit will be carried out by the Office of the Federal Auditor
General (OFAG), or a qualified auditor nominated by OFAG and acceptable to IDA.

34. The audit will be carried out in accordance with the International Standards of Auditing
(ISA) issued by the International Federation of Accountants (IFAC). The auditor will prepare a
work plan to cover all the major risk areas. The following mechanisms are proposed to
systematically monitor the timing of audit reports and the timely action on audit findings: (i)
MoFEC in collaboration with the other implementers has the responsibility to prepare audit action
plans within one month of the receipt of the annual audit report. (ii) Within two months of the
receipt of the audit report, action must be taken on all audit findings and notified to the World
Bank.

35. In accordance with the World Bank’s policies, the World Bank requires that the Borrower
disclose the audited financial statements in a manner acceptable to the World Bank; following the
World Bank’s formal receipt of these statements from the Borrower, the World Bank makes them
available to the public in accordance with The World Bank Policy on Access to Information.

Financial management arrangement for the Contingent Emergency Response

Under subcomponent 2.2, the project will implement the contingent emergency response
component. This component is expected to be implemented using the current structure of the
federal, regional and woreda level government structure. Accordingly, the financial management
and fund flow arrangements already in place for the IPF component will be used. The fund flow
arrangement for the IPF component stops at the regional level. However, for the implementation
of the emergency response sub component, if the government opts to use the woredas or other
implementing agencies such as UN agencies or NGOs for the emergency response component as
implementing agencies, FM assessments could be done using simplified documentation templates
and procedures drawing on the teams’ prior knowledge of the country’s public financial
management system and experience of other donor financed operations. All financial reporting

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and auditing needs for this sub component will be catered under the existing arrangements for the
IPF component.

Financial management risk and action plan

36. Based on the assessment conducted, the financial management risk for the IPF component
of the operation is rated as Moderate. Risk mitigating measures have been identified and presented
in Table 1 as the financial management action plan.

Table 1: Financial management action plan

# Action Date due by Responsible body
1 Budget
 Finalize budget preparation early  Early preparation of annual MoE
before beginning of budget year; budgets will be annually
 Track budget availability as each  Budget control is during
transaction occurs. Provide variance project implementation
analysis with explanation regularly
along with reporting.
2 Accounting
 Maintain separate accounting records  During implementation  All
and documentation for the project  Start early & finalize within implementing
implementation transaction that are one month after entities
subject for review of auditors and effectiveness  MoFEC
supervision missions;  Within one month after  MoFEC, MoE,
 IBEX should be configured to report project effectiveness. universities and
on project sub- component, sub- CTEs
component, & category of project
expenditures;
 Maintain the current level of
accountants and recruit additional
depending on the work load.
3 Internal Audit:  During implementation  All
 Ensure the involvement of internal implementing
audit units to increase their entities
engagement in providing the required
service;
4 Reporting
 Submit quality IFRs to the World Bank  Ongoing during  MoFEC
within 60 days from end of the relevant implementation.
quarter in agreed format;
6 External audit
 Project audit  Recruit within 6 months  MoFEC
 Finalize Audit TOR and recruit auditor after effectiveness;
at early stage of the project;  3 months after end of the
 Project financial statements will be year;
prepared in time;  Ongoing annually;
 Ensure that the external auditor has  Within 6 months after end
complied with the Audit ToR; of year;

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 # Action Date due by Responsible body
 Submit annual audited financial  Within one month of
statements, audit report and submission of audit report
management letter; to the World Bank;
 Submit Government’s response to the  Two months after
findings in the annual audit report to submission of audit report
the World Bank and an action plan for to the World Bank;
any follow-up actions including the  Annually.
status thereon;
 Prepare status report of action taken on
audit findings;
 Disclose audit reports to the public in
accordance with The World Bank
Policy on Access to Information.

Financial management covenants

37. Financial management related covenants for the IPF part of the Program will include the
following:
 Maintaining satisfactory FM system for the Program;
 Submission of IFRs for the Program for each fiscal quarter within 60 days of the end of
the quarter covering the quarter, year to date and project life information, in form and
substance satisfactory to the World Bank; and
 Submission of annual audited financial statements and audit report within six months of
the end of each fiscal year.

Procurement
Applicable procurement regulations
38. Procurement under the IPF component will be carried out in accordance with the World
Bank’s Procurement Regulations for IPF Borrowers: ‘Procurement in Investment Project
Financing, Goods, Works, Non-Consulting, and Consulting Services’, dated July 1, 2016;
‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD
Loans and IDA Credits and Grants’, revised as of July 1, 2016; and the provisions stipulated in the
Legal Agreement

39. The regulations are designed to support a modern, fit for purpose procurement framework.
The regulations are guided by the core procurement principles of value for money, economy,
integrity, fit for purpose, efficiency, transparency, and fairness. The regulations support these core
procurement principles by providing many choices for the Borrower to design the right approach
to market.

40. The implementing agencies of the IPF component will use standard procurement
documents issued by the World Bank to be used by borrowers for IPF-financed projects as well as
standard bid evaluation forms for procurement of goods, works, and non-consulting contracts, and
the sample form of evaluation report for selection of consultants

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National procurement procedures
41. When approaching the national market, as shall be agreed in the PP, the country’s own
procurement procedures may be used subject to the following requirements as provided in section
5 paragraph 5.4 of the Procurement Regulations for IPF Borrowers (July 1, 2016):
 Open advertising of the procurement opportunity at the national level
 The procurement is open to eligible firms from any country
 The Request for Bids/Request for Proposals document shall require bidders/proposers
submitting bids/proposals to present a signed acceptance at the time of bidding, to be
incorporated in any resulting contracts, confirming application of, and compliance with,
the World Bank’s Anticorruption Guidelines, including without limitation to the World
Bank’s right to sanction and the World Bank’s inspection and audit rights
 Contracts with an appropriate allocation of responsibilities, risks, and liabilities
 Publication of contract award information
 Rights for the World Bank to review procurement documentation and activities
 An effective complaints handling mechanism
 Maintenance of records of the procurement process

42. Other national procurement arrangements (other than national open competitive
procurement) that may be applied by the Borrower (such as Limited/Restricted Competitive
Bidding, RFQ/Shopping/Local Bidding, and Direct Contracting), shall be consistent with the
World Bank’s core procurement principles and ensure that the World Bank’s Anticorruption
Guidelines and Sanctions Framework and contractual remedies set out in its Legal Agreement
apply.

Procurement Arrangement for Contingency Emergency Response Component:

43. If the contingency emergency response is to be triggered the strategy to be developed for
restoring education services in response to disasters shall also outline how school feeding and
emergency provision of water shall be procured to respond to natural disasters. The strategy to be
developed may consider the ‘Simplified Procurement Procedures and Guiding Principles under
Situations of Urgent Need of Assistance or Capacity Constraints of the World Bank to define
procedures to be followed when the emergency response is triggered.

Procurement oversight and monitoring arrangements

43. Mandatory thresholds for prior review for the proposed project based on procurement risk
levels of the project are provided in Table 2. Based on the risk level of the project, procurement
above the applicable thresholds as provided in the table shall be subject to prior review. Such
procurement activities shall use the World Bank’s Standard Procurement Documents. For
contracts to be awarded using Direct Selection, the Borrower shall submit to IDA, for its review
and ‘no-objection’, a sufficiently detailed justification, before inviting the firm to negotiations.

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Table 2. Thresholds for procurement approaches and methods (US$ million)
Shortlist of national
consultants
Open Open Engineering
RFQ
International National Consulting and
services construction
supervision
Works ≥5.0 ≥7.0 <7.0 ≤0.2 n.a. n.a.
Goods, IT, and ≥1.5 ≥1.0 <1.0 ≤0.1 n.a. n.a.
non-consulting
services
Consultants ≥0.5 n.a. n.a. n.a. 0.2 0.3
(firms)
Individual ≥0.2 n.a. n.a. n.a. n.a. n.a.
consultants

Assessment of the agencies’ capacity to implement procurement

44. An integrated fiduciary assessment of the implementing agencies was carried out by the
World Bank as part of GEQIP-E. The assessment covered MoE, and sample REBs, universities
and CTEs. The assessment reviewed the organizational structure for implementing the proposed
IPF component, and staff responsible for procurement in the implementing agencies. The
assessment also looked into the legal aspects and procurement practices, procurement cycle
management, organization and functions, planning, record keeping, and the procurement
environment. Procurement systems of the implementing agencies were assessed to determine the
extent to which planning, bidding, evaluation, contract award and contract administration
arrangements and practices, procurement oversight and complaint hearing mechanisms provide a
reasonable assurance that the project will achieve intended results through its procurement
processes and procedures.

45. Under GEQIP, MoE has made a significant stride and has attained reasonable success in
the acquisition of TLMs, IT equipment and other goods and services which are considered as
important inputs for the attainment of the GEQIP. However, procurement planning and using
procurement plans as monitoring and management decision making tools has not been at its best
particularly at sub-national level and at the MoE. Moreover, the efficiency in procurement
processing has been a major challenge. Delayed arrival of strategic goods at destination, by and
large because of considerable delays in the preparation of BDs, bid evaluations, and award and
contract signing is observed under the GEQIP. The causes for such delays in the MoE include (i)
inadequate procurement management capacity; (ii) inadequate lead time; (iii) slow internal
approval processes; (iv) challenges in obtaining and consolidating data on requirements per
district; (v) delays during the initiation phase and pre-bid launch; (vi) delays during the evaluation
phase; (vii) contract award delays; and (viii) down-stream logistical challenges. Moreover,
inadequate contract management has contributed to the delays in a considerable manner. The
procurement capacity of REBs, universities and CTEs needs considerable improvement to handle
procurement activities under the proposed project.

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46. Moreover, the proposed project is to be carried out using the New Procurement Framework.
Capacity-building effort to familiarize the procurement and related staff with the Procurement
Regulations for IPF Borrowers needs to be considered and included in the design of the project

47. Key issues and associated mitigation measures that have been discussed and agreed upon
are shown in Table 3 below.

Table 3. Summary of findings and actions (risk mitigation matrix)

Responsibility and time
frame
Severity
(all actions to be taken
# Issue/risk and Mitigation measures
within the first three
impact
months of the grant
approval)
1 Lack of procurement- High Provide attractive MoE and MoFEC
proficient and contract remuneration and
management staff in conducive work
MoE environment to attract
procurement proficient and
qualified contract
management staff
2. Lack of experience in High Arrange training on the MoE/World Bank
the New Procurement New Procurement
Framework of the Framework of the World
World Bank Bank to procurement and
related staff of MoE
3 Low quality and Substantial Create capacity on the MoE/World Bank
incomplete bidding preparation of SBDs/RFQs
documents/RFQs with the objective of
producing and issuing
quality BDs/RFQs
4 Inadequate record Substantial Keep records in safe and MoE
management secure place with no access
system to unauthorized personnel
Establish record
management system
5 Delays in preparation High Develop accountability MoE
of BDs/RFPs, Bid framework with defined
Evaluation, Contract business standards, and
engage beneficiary

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 Award and Contract technical departments as
Signing early as possible

6 Inadequate facilities, Substantial Carry out needs MoE

for safe and secure assessment; and build the
record keeping in IAs capacities of procuring
entities with facilities, such
as photocopy machine,
office space, tables and
chairs, as well as
computers and printers to
procurement units and their
staff
7 Inadequate contract Substantial MoE/World Bank
management
Training to be provided on
practice/delay in
the basics of contracts
delivery of goods and
management
services and lack of
system for inspection
and acceptance

Procurement plan
48. The MoE has prepared the Project Procurement Strategy for Development (PPSD) which formed
the basis for a PP for the first 18 months of the IPF component and which also provides the basis
for the procurement methods. This plan was agreed between the MoE and the project team and
will be available at the Procurement Directorate of the MoE. It will also be available in the project’s
database and in the World Bank’s external website. The PP will be updated by the project team
annually or as required to reflect the actual project implementation needs and improvements in
institutional capacity.

Procurement arrangement and value for money

49. The IPF component aims at supporting capacity building and institutional strengthening
activities through technical assistance. The IPF TA is expected to support several capacity
development activities at different levels of the educational structure. These include the provision
of consultancy services, training programs, and operational support.

50. The procurement objective of the IPF-TA is to deliver best quality capacity building
consultancy services for MoE and REBs. To attain this objective, attaining value for money
through integrity and sustainable development shall be upheld.

51. The procurement arrangements provided under the PPSD for this project are aimed at
attaining value for money in the procurement of services. Apart from provision of training and
operation support, the key input under the IPF-TA is the provision of Technical Assistance. The

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TAs is low-value contracts with relatively low risk. However, the experience of the MoE in
handling the selection of consultants has not been satisfactory. Hence, to attain value for money,
procurement arrangements shall be made in such a way that the MoE achieves the best available
consulting firms at reasonable prices. To achieve this, risk mitigation measures outlined below
need to be fully implemented.

Procurement risk analysis

52. In the PPSD prepared for the IPF-TA component, a risk analysis of the procurement
activities was carried out. It is noted that procurement activities under the project are consultancy
services aimed at capacity strengthening and to support the management, implementation and
monitoring of the Program. The risks associated with the procurement activities under this
component are identified and risk mitigation measures are put in place.

53. The MoE, REBs, CTEs and universities are implementers of the IPF-TA component.
REBs, CTEs and universities will participate in cascading of training and the development
materials and modules. However, the hiring of consultancy services will be carried out centrally
by the MoE. MoE has previous experience in implementation of the GEQIP. However, there is
still a risk at MoE in properly implementing procurement activities as per the agreed procedures
due to lack of procurement proficient personnel and high level of staff turnover. To address this,
the MoE shall recruit and deploy procurement proficient staff, and provide procurement and
related staff with training on World Bank procurement procedures. Offering of regular training is
important to mitigate the risk of high level of staff turnover.

Table 4. Procurement risk and mitigation measures

Risk Description Likelihood Impact Duration Overall Description of proposed
rating (A) rating rating risk rating mitigation measures
(B) (C) (A*B*C)
Limited number of M M M M MoE to engage with
consultants/bidders for market through pre-bid
TA meeting, supplier
conferences etc.
Delay in RFB H H H H Planned procurement of
preparation, evaluation, TA
award and signing of
contracts and contract
management
Unavailability of H H H H MoE negotiate with
qualified procurement MoFEC to provide
and contract adequate remuneration and
management staff at conducive work
MoE environment for
procurement and contract
management staff
Lack of experience in H H H H Quality training in World
the new procurement Bank’s new procurement
framework of the World framework procedures
Bank

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Procurement arrangements
54. High or substantial risk contracts are not included in the IPF component. The procurement
arrangements for low value contracts is agreed with the client and is provided in the PPSD.

Procurement management Covenant

55. Government shall appoint an independent procurement auditor for carrying out an annual
procurement audit of the IPF component along with the PforR procurement audit and submit the
same to the World Bank within six months after the end of each fiscal year.

Environment and social safeguards for IPF component

56. The IPF based TA component of the Program aims to support capacity building and
institutional strengthening activities at different levels of the education sector through the
provision of consultancy services, training programs, and operational support. The IPF based TA
component does not involve any procurement of goods, capital investment or civil works. There
will be no land acquisition and restriction of access to natural resources.

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Annex 11: Map of Ethiopia

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