Download - Official PDF , 91 pages

Document of The World Bank

Report No: ICR2705

IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-73930)

ON A

LOAN

IN THE AMOUNT OF US$200 MILLION

TO THE

REPUBLIC OF THE PHILIPPINES

FOR A

NATIONAL PROGRAM SUPPORT FOR BASIC EDUCATION PROJECT

June 26, 2013

East Asia and Pacific/Education EACPF East Asia and Pacific Region

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

ii

CURRENCY EQUIVALENTS

(Exchange Rate Effective May 30, 2013)

Currency Unit = Philippine Peso PHP 1.00 = US$ 0.02 US$ 1.00 = 42.26 PHP

FISCAL YEAR

ABBREVIATIONS AND ACRONYMS BESRA Basic Education Sector Reform Agenda CAS Country Assistance Strategy CCT Conditional Cash Transfer COA Commission on Audit DepEd Department of Education DBM Department of Budget and Management DLIs Disbursement Linked Indicators e-BIS Enhanced Basic Education Information System EFA Education for All ESC Education Service Contracting FM Financial Management GAD Gender and Development GASTPE Government Assistance to Students and Teachers in Private Education GDP Gross Domestic Product GOP Government of the Philippines GMIS Government Human Resources Information System IAS Internal Audit Service ICT Information and Communications Technology IP Indigenous People IPsEO Indigenous Peoples Education Office ISR Implementation Status Report KRTs Key Reform Thrusts LEAPs Learning, Equity, Accountability Program Support LGU Local Government Unit LIS Learner Information System MOOE Maintenance and Other Operating Expenses MTB-MLE Mother-Tongue based Multilanguage Education MTPDP Medium-Term Philippines Development Plan NAT National Achievement Test NCBTS National Competency-Based Teacher Standards NGO Non-government Organization NGAS National Government Accounting System NPSBE National Program Support for Basic Education

iii

PASBE Philippines Accreditation System for Basic Education PPP Project Preparation Review PRIME Philippines Response to Indigenous Peoples’ and Muslim Education PTCA Parent-Teacher-Community Association QAAF Quality Assurance and Accountability Framework QER Quality at Entry SBM School Based Management SIML Sector Investment and Maintenance Loan SIP School Improvement Plan SPHERE Support to Philippine Basic Education Reforms TA Technical Assistance TDIS Training and Development Information System TIMSS Trends in International Mathematics and Social Studies TWGs Technical Working Groups

Vice President: Axel van Trotsenburg

Country Director: Motoo Konishi

Sector Manager: Luis Benveniste

Project Team Leader: Lynnette de la Cruz Perez

ICR Team Leader: Lynnette de la Cruz Perez

iv

PHILIPPINES National Program Support for Basic Education Project

CONTENTS

Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph

1. Project Context, Development Objectives and Design ............................................... 12. Key Factors Affecting Implementation and Outcomes .............................................. 63. Assessment of Outcomes .......................................................................................... 144. Assessment of Risk to Development Outcome ......................................................... 215. Assessment of Bank and Borrower Performance ..................................................... 226. Lessons Learned ....................................................................................................... 247. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 26Annex 1. Project Costs and Financing .......................................................................... 27Annex 2. Outputs by Component ................................................................................. 28Annex 3. Economic and Financial Analysis ................................................................. 40Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 55Annex 5. Beneficiary Survey Results ........................................................................... 57Annex 6. Stakeholder Workshop Report and Results ................................................... 58Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 59Annex 8. List of Supporting Documents ...................................................................... 69MAP .............................................................................................................................. 71

v

A. Basic Information

Country: Philippines Project Name: National Program Support for Basic Education

Project ID: P094063 L/C/TF Number(s): IBRD-73930

ICR Date: 6/26/2013 ICR Type: Core ICR

Lending Instrument: SIM Borrower: Republic of the Philippines

Original Total Commitment:

USD 200.00M Disbursed Amount: USD 200.00M

Revised Amount: USD 200.00M

Environmental Category: C

Implementing Agencies: Department of Education

Cofinanciers and Other External Partners: Australian Agency for International Development (AusAID) B. Key Dates

Process Date Process Original Date Revised / Actual

Date(s)

Concept Review: 05/24/2005 Effectiveness: 01/01/2007 01/01/2007

Appraisal: 03/01/2006 Restructuring(s): 07/16/2009 12/22/2011

Approval: 06/20/2006 Mid-term Review: 11/09/2009

Closing: 12/31/2011 12/31/2012 C. Ratings Summary C.1 Performance Rating by ICR

Outcomes: Moderately Satisfactory

Risk to Development Outcome: Moderate

Bank Performance: Moderately Satisfactory

Borrower Performance: Moderately Satisfactory

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings

Quality at Entry: Moderately Satisfactory Government: Satisfactory

Quality of Supervision: Satisfactory Implementing Agency/Agencies:

Moderately Satisfactory

Overall Bank Performance:

Moderately SatisfactoryOverall Borrower Performance:


vi

C.3 Quality at Entry and Implementation Performance IndicatorsImplementation

Performance Indicators

QAG Assessments (if any)

Rating

Potential Problem Project at any time (Yes/No):

No Quality at Entry (QEA):

None

Problem Project at any time (Yes/No):

No Quality of Supervision (QSA):

None

DO rating before Closing/Inactive status:


D. Sector and Theme Codes

Original Actual

Sector Code (as % of total Bank financing)

Primary education 60 60

Secondary education 40 40

Theme Code (as % of total Bank financing)

Education for all 100 100 E. Bank Staff

Positions At ICR At Approval

Vice President: Axel van Trotsenburg Jeffrey S. Gutman

Country Director: Motoo Konishi Joachim von Amsberg

Sector Manager: Luis Benveneiste Christopher J. Thomas

Project Team Leader: Lynnette De la Cruz Perez Dingyong Hou

ICR Team Leader: Lynnette De la Cruz Perez

ICR Primary Authors: Sandra Beemer, Franco Russo F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document) The project development objective is to improve quality and equity in learning outcomes for all Filipinos in basic education. Revised Project Development Objectives (as approved by original approving authority) Not applicable

vii

(a) PDO Indicator(s)

Indicator Baseline Value

Original Target Values (from

approval documents)

Formally Revised Target Values

Actual Value Achieved at

Completion or Target Years

Indicator 1: Elementary Participation Rate (6-11 years)

Value quantitative or Qualitative)

88.58%

Original target: 93.0% Revised 2011 government target: 90.09%

N/A 97.3%

Date achieved 10/21/2005 12/31/2011 5/1/2013 5/31/2013

Comments (incl. % achievement)

Target was exceeded. Note that all PDO end targets were reduced: 2010 census data showed a declining population with children attending school from the lowest quintiles having increased; may be related to the CCT and ADM programs.

Indicator 2 : Elementary Cohort Survival Rate


63.57%


N/A 73.46%

Date achieved 10/21/2005 12/31/2011 5/1/2013 5/31/2013 Comments (incl. % achievement)

Although the cohort survival rates did not meet the target, the increase implies that the system has been able to sustain a level of quality even under such a rapid expansion. This is a substantial achievement.

Indicator 3 : Elementary Completion Rate


62.06%


N/A 70.97%


Although the target was missed, the trend for completion rate is positive implying that the system has been able to sustain a level of quality even under the rapid expansion in participation. This is an impressive achievement.

Indicator 4 : Elementary Dropout Rate Value quantitative or Qualitative)

8.9% 4.3% N/A 6.38%

Date achieved 10/21/2005 12/31/2011 5/31/2013 Comments (incl. % achievement)

The target was missed but the trend is positive. The improvements are impressive given the increased participation rates from the poorest households with the least preparation to enter school.

viii

Indicator 5 : High School Participation Rate (12-15 years)


58.49%


N/A 64.8%


Target was statistically achieved; high school enrollment numbers increased from 6.3 to 7 million between 2004 and 2012; policies to improve participation and keep 15-18 age groups in school are being developed.

Indicator 6 : High School Cohort Survival Rate


63.11%


N/A 78.83%


The target is judged to have been achieved. The trend in survival rate is positive.

Indicator 7 : High School Completion Rate


58.22%


N/A 74.23%


The revised target was met.

Indicator 8 : High School Dropout Rate Value quantitative or Qualitative)

14.3% 8.1% N/A 7.82%


The target was exceeded.

ix

Indicator 9 : Grade 6 Mean Percentage Score in math, Filipino, English, science and social studies


Gr. 6 Achievement – 54.66% Math-59.1% Filipino – 61.7% English – 59.1% Science – 54.1% Social Studies – 59.5%

Gr. 6 Achievement -66.9% Math-66.47% Filipino – 69.15% English – 66.27% Science – 66.11% Social Studies –65.97%

Date achieved 3/25/2005 5/31/2013


Impressive elem. level test result improvements; elem. & second. NER increased and approx. 2.2 million more children attended school by 2011, mostly from poor households where factors associated with dropout and repetition more prevalent.

Indicator 10: Year 2 Achievement (high school)


Yr. 2 Achievement–46.66% Math-39.06% Filipino – 48.91% English – 51.81% Science – 42.00% Social Studies – 51.51%

.

Yr. 2 Achievement-47.93% Math-42.0% Filipino – 58.39% English – 46.45% Science – 39.35% Social Studies –52.3%

Date achieved 3/25/2005 5/31/2013


Improvements in math, Filipino, and social studies; some declines in English and science, yet impressive improvements given that elem. & second. Enrollment increased by approximately 2.2 million more children attending school in 2011 than in 2005.

Indicator 11 : Inter-quartile ratio for elementary school (Definition = Proportion of teachers available to most favored 25% of students among individual schools over the proportion available to least favored 25%)


2.00 1.40 1.95


Target was missed but study estimated that excess teachers decreased from 83,000 in 2003/04 to 35,512 in 2009/10; decline in excess teachers is estimated to have led to annual savings of approximately PHP 12.4 billion.

Indicator 12 : Inter-quartile ratio for high school (Definition = Proportion of teachers available to most favored 25% of students among individual schools over proportion available to least favored 25%)


2.54 1.80 2.19

Date achieved 10/21/2005 12/31/2011 5/31/2013 Comments Target was missed but study estimated that excess teachers decreased from

x

(incl. % achievement)

83,000 in 2003/04 to 35,512 in 2009/10; decline in excess teachers is estimated to have led to annual savings of approximately PHP 12.4 billion.

(b) Intermediate Outcome Indicator(s)

Indicator Baseline Value

Original Target Values (from

approval documents)

Formally Revised

Target Values

Actual Value Achieved at

Completion or Target Years

Indicator 1 : Schools/clusters with a School Improvement Plan Value quantitative or Qualitative)

19% 80% 90.76%


Target was exceeded.

Indicator 2 : Schools/clusters meeting SBM criteria


No baseline was available at the time of preparation because this concept was only being introduced under the project

75% 81%



Indicator 3 : Schools/clusters eligible to receive school grants


No baseline was available at the time of preparation because this was not yet a budget item

65% 84.54%



Indicator 4 : Schools/clusters with adequate Financial Management system Value quantitative or Qualitative)

No baseline available 65% 88%



xi

Indicator 5 : Schools/clusters where school heads have been trained in SBM Value quantitative or Qualitative)

No baseline available 85% 96.61%



Indicator 6 : Schools/clusters using school report card Value quantitative or Qualitative)

No baseline available 75% 96.61%



Indicator 7 : Divisions engaged in tracking students at risk Value quantitative or Qualitative)

No baseline available 33% 51%



Indicator 8 : Teacher performance standards developed and agreed


Preliminary work done under the PHRD grant provided during project preparation

Developed and agreed

Developed and agreed


Target was met. The NCBTS were developed and then refined. The process involved experts from the education sector, academe and education practitioners.

Indicator 9 : Divisions where CBTS used in at least 50% of schools Value quantitative or Qualitative)

N/A 85% 93.75%


Target was exceeded. As of 2010, all of the schools were required to use the NCBTS in their hiring, promotion and training needs identification.

Indicator 10 : Competency-Based Teacher standards applied to pre-service training Value quantitative or Qualitative)

N/A Implemented by year 3

Implemented by year 3


Target was met. DepEd reported that 90% of teacher education institutions have integrated NCBTS in their curriculum.

xii

Indicator 11 : Competency Based teacher standards used in promotion and hiring


N/A Revised and refined

Developed, trialed, revised, trialed again and currently being refined


Target was met. As of 2010, all of the schools were required to use the NCBTS in their hiring, promotion, training needs identification.

Indicator 12 : Five year staffing plan devised for allocation and redeployment of teachers


N/A Plan updated

DepED has yet to develop a five-year projection for school staffing but school-level staffing plans and teacher requirements are updated annually through the Research and Statistics Division, Office of Planning Service of DepEd.

Date achieved 10/21/2005 12/31/2009 05/31/2013


No 5-year staffing plan developed but use of color-coding spectrum based on the Basic Education Information System to identify schools with teacher shortages and/or surpluses and inform allocation of teacher items and deployment continued instead.

Indicator 13: Improved equity in pupil/teacher ratios


75% improved

Mean pupil/teacher ratio in SY2011/12 was 37:1 for public schools; top 25 percentile showed a decrease in pupil/teacher ratio from 43:1 to 40.37:1 in elementary and from 45:1 to 42.03:1 in high school.

Date achieved 12/31/2011 12/31/2011 Comments (incl. % achievement)

Target was met.

xiii

Indicator 14 : Strategies devised: teachers’ compensation, incentives and benefits


Strategies devised before Congress

Strategies devised for various incentives and benefits for teachers (increase in hardship allowance, merit increase, performance incentive bonus, and hazard pay; transfer allowance devised but being piloted


Target was met. The different schemes/strategies devised did not have to go through Congress since many of these can could be devised and issued through executive fiat.

Indicator 15 : National strategies and Action Plan (includes teaching materials) Value quantitative or Qualitative)

N/A Phases rolled out


Target was met. Annex 2 provides details; however an example is, teaching and learning strategies in English, mathematics and science were introduced as well as the K to 12 programs along with hiring and training of kindergarten teachers.

Indicator 16 : English proficiency for teachers


Support target

National English Proficiency and Process Skills program implemented


Target was met. This program was implemented in the early part of the project in response to the high demand for English speakers.

Indicator 17 : Student Achievement Standards Defined


Student Achievement Standards defined by results of the National Achievement Test

Policy in Place Policy in Place


Target was met. There is a policy in place that defines student achievement standards, which was revised in line with the enactment of the K to 12 program.

xiv

Indicator 18 : Schools receive feedback from national assessment


N/A

Phase 4 In-service Training of teachers to utilize results of National Achievement Test to inform learning

Policy in place and being implemented to provide feedback to schools on the results of the National Achievement Test; Annual In-Service Training of selected teachers from each division conducted in response to the results of their Teacher Strengths and Needs Assessment (TSNA) self-assessment some of which includes training on addressing the least-learned skills of the students

Date achieved 10/21/2005 12/31/2011 12/31/2011


Target was met. Schools receive feedback through their division offices or can access the results of the National Achievement Test online; test results and assessment outcomes used to adjust in-service teacher training programs, adjust teachers’ TSNA etc.

Indicator 19 : National standards framework developed for inputs (minimum service standards) and outcomes (participation, completion, achievement)


N/A Policy in Place by Year 1 of Project (2007)

Policy in place by year 1 of project; standards for some inputs (classroom construction, curriculum, textbooks, student assessment revised within the life of the project


Target was met. Standards were redefined for classrooms, textbooks, teachers, instructional materials etc. to integrate quality standards and also as part of the accreditation standards developed for elementary as well as high schools.

xv

Indicator 20: Divisions with their schools receive feedback from EMIS


There was no explicit policy in place during project preparation

75% of divisions (with their schools) receive feedback from EMIS

All schools provide basic data and information on their schools.


Target was exceeded. The roll out of the e-BEIS nationwide has allowed central offices to upload the school data they receive onto the website, allowing schools and divisions to download and share the information.

Indicator 21 : ICT Policy Framework developed


ICT Policy Framework was not yet existent during project preparation and at the start of the project in 2007

Policy in Place by Year 1 (2007)

Policy was in place by Year 1.


Target was met. In addition, the Bank mobilized technical assistance (funded by the AusAID SPHERE AAA managed by the Bank) in 2011 to assist DepEd in refining its ICT Policy and master plan for basic education.

Indicator 22 : ICT Policy implemented


ICT Policy was implemented in 2008 by the previous DepEd Secretary

Phase 4 rollout (assumes continued implementation of the ICT policy developed in 2007/08)

ICT policy developed and currently being implemented

Date achieved 10/21/2005 12/31/2011 12/31/2011


Target was met. In 2010/11, DepEd management developed and implemented an ICT policy framework. ICT master plan for basic education that supports targeted outcomes and outputs stipulated in its reform agenda and MDG and EFA commitments.

Indicator 23 : Cost sharing between GOP and Local Government Unit (LGU) applied to classroom construction, including equity factors


There were cost-sharing arrangements in place at the time of project preparation and upon commencement of the project but very informal and done in a very informal bases

65% of classroom construction follows scheme

All classroom construction project, involved a statement of interest, prior to construction between the DepEd and the Local Government Units (LGUs).


Target was met. Statements of interest signed to ensure LGUs involved and committed in sharing the burden of construction either through cash or in-kind contributions (i.e. local engineers, site preparation, extra LGU manpower).

xvi

Indicator 24 : Financing framework developed


10 year Multiyear Spending Plan for Basic Education was in place at that time of project preparation and commencement

Policy in place in year 1

Financing framework in place on year 1

Date achieved 10/21/2005 12/31/2007 12/31/2007


Target was met. A financing framework was in place year 1 through the Multiyear Spending Plan for basic education; in 2010, Bank mobilized TA support for DepEd to develop the Medium Term Expenditure Framework for 2011-2016.

Indicator 25 : Demand side financing mechanisms introduced to support needy students and their families


No major demand-side financing mechanisms in place except for the Food for School Program implemented by DepEd and the Department of Social Welfare and Development (DSWD)

Use results of policy review to apply finance to feeding programs or other demand-side interventions. New policy should guide those applied centrally and those to operate through school improvement plans. Listing of national and local programs annually. Monitoring and evaluation of impact of programs on student outcomes as well as evaluation of efficiency and effectiveness

Policy and program reviews were undertaken with support from the Bank on the Food for School program and the Education Service Contracting Scheme Program. The Bank provided extensive technical assistance in the design of the Conditional Cash Transfer Program (CCT) of the Government, which has since become the flagship program providing demand-side interventions to poor households to improve uptake of education and health interventions

Date achieved 10/21/2005 12/31/2011 12/31/2011


Target was met. Government expanded implementation of demand-side financing programs which were assessed/evaluated as having a positive impact on needy students and education outcomes (CCT, ESC); abolished cost-ineffective and inefficient ones.

xvii

Indicator 26 : Private sector participation


The Education Service Contracting Program was in place at the time of project preparation and commencement

Policy reviewed based on M&E of the Education Service Contracting schemes

Program review of the Education Service Contracting Scheme completed in late 2010

Date achieved 10/21/2005 12/31/2007 12/31/2010


Target was met. Bank conducted an ESC Program review at the high school level, and based on the findings, Government expanded the budget allocation by 50% the year following the review and adjusted policy guidelines and implementation.

G. Ratings of Project Performance in ISRs

No. Date ISR Archived

DO IP Actual

Disbursements (USD millions)

1 09/21/2006 Satisfactory Satisfactory 0.00 2 07/26/2007 Satisfactory Satisfactory 3.55 3 04/28/2008 Satisfactory Satisfactory 27.90 4 12/01/2008 Satisfactory Moderately Satisfactory 71.16 5 10/16/2009 Satisfactory Satisfactory 107.25 6 06/29/2010 Moderately Satisfactory Moderately Satisfactory 151.80 7 04/26/2011 Moderately Satisfactory Moderately Satisfactory 157.50 8 04/10/2012 Moderately Satisfactory Moderately Satisfactory 187.22 9 12/24/2012 Moderately Satisfactory Moderately Satisfactory 197.46

H. Restructuring (if any)

Restructuring Date(s)

Board Approved

PDO Change

ISR Ratings at Restructuring

Amount Disbursed at

Restructuring in USD millions

Reason for Restructuring & Key Changes Made

DO IP

07/16/2009 S MS 104.12 Reallocation of funds 12/22/2011 MS MS 186.43 Extension of closing date

xviii

I. Disbursement Profile

1

1. Project Context, Development Objectives and Design

1.1 Context at Appraisal 1. Country Context. Over the period 1961- 2003, the Philippines had a high average annual population growth rate of 2.6 percent (compared to 1.7 percent in the region). Over the same period, the Philippines had had a correspondingly modest 1.4 percent average annual per capita gross domestic product (GDP) growth rate. This compared to an average increase of 5.4 percent in per capita GDP for other East Asian countries over the same period. In 2004, the GDP of the Philippines was estimated at US$84.6 billion up from 6.1 percent in 2003. The GDP per capita in 2004 was estimated at US$1,025. The major economic sectors included agriculture and industry, especially for processing, textiles, garments, electronics and automobile parts. The economy was dominated by the service sector, representing 54 percent of GDP and over 37 percent of workers were self-employed. The unemployment rate in April 2005 was 7.5 percent. Inflation was on the rise and in 2005 it was 7 percent, up from 5.5 percent in 2004. 2. There was a lack of social inclusion in the Philippines. Inequality was high and when coupled with low growth over the longer term, it translated into slow progress on poverty reduction. The richest five percent of households accounted for nearly one third of national income, while the poorest 20 percent accounted for only six percent. The poverty incidence, based on household consumption, had declined marginally from 27.6 percent in 2000 to 26.1 percent in 2003, after an increase of two percentage points between 1997 and 2000. Poverty severity remained about the same between 2000 and 2003 which meant that the living standards of those who remained poor had not improved. 3. Sector Context. In 2005, the total Department of Education (DepEd) budget represented approximately two percent of GDP and 18.5 percent of the total Government of the Philippines (GOP) budget net of debt service. Spending on teachers’ salaries and other personnel services made up 89 percent of the DepEd budget. An additional four percent was spent on educational infrastructure, which left seven percent of the DepEd budget to cover other recurrent costs such as operating expenses, teacher in-service training and the purchase of instructional aids. At the time of project appraisal, DepEd, with support from the World Bank, had prepared a spending plan that showed a worsening fiscal pressure over time, which would limit the country’s ability to achieve its 2015 Education for All (EFA) targets. The three factors influencing the fiscal pressures were: (i) the high fixed costs of salaries and personnel benefits; (ii) rapid growth of the school aged population, requiring the system to expand rapidly at the expense of quality improvements;; and (iii) the need to increase the number of public high schools to accommodate private high school students following the 1997 Asian financial crisis. 4. Education outcomes in the Philippines were low compared to the rest of the East Asia region. The 2003 Trends in International Mathematics and Science Studies (TIMSS) showed that the Philippines ranked 34th out of 38 countries in Grade 8 Mathematics and 43rd out of 46 countries in Grade 8 Science. For Grade 4, the Philippines ranked 23rd out of 25 participating countries in both mathematics and science. In addition, there was poor

2

internal efficiency in the system. Participation rates in 2003 at the elementary level were higher than high school level, 94.02 percent and 63.88 percent respectively. However, the dropout rates were 7.34 percent for elementary and 13.1 percent for high school, which meant that approximately 50 percent of students beginning elementary school graduated from high school. The high population growth rates and the tight fiscal situation contributed to these outcomes. There were also several teacher related concerns: (i) teacher qualifications, particularly at the high school level, were low in mathematics and science; (ii) no performance-related pay structure which made it difficult to reward top teachers; (iii) quality pre-service teacher training was poor, and (iv) teacher deployment to hard- to-reach areas was difficult due to provisions in the 1967 Magna Carta for Public School Teachers, allowing teachers to refuse transfer. 5. To combat these problems, the GOP developed a poverty reduction strategy that was defined in the Government’s Medium-Term Philippines Development Plan (MTPDP) 2004-2020, which gave high priority to achieving universal basic education. The country’s education strategy was guided by the National Education for All (EFA) 2015 Plan and was intended to contribute to the achievement of the Millennium Development Goals (MDGs). While remaining committed to the overall development and poverty reduction strategies, the Government also acknowledged the particular challenges for basic education. Important initiatives on rationalization were introduced by DepEd administration following the passage of the Governance of Basic Education Act (Republic Act RA 9155) in 2001 with its emphasis on decentralization and its declaration that schools should be the heart of the formal education system. The reform proposals were progressively refined, and by 2005, consensus emerged on the need for urgent sector-wide strategies, placing schools first and empowering local communities to achieve school improvement. The strategies were articulated in a policy called the Schools First Initiative (SFI) and translated into policy actions under the Government’s Basic Education Sector Reform Agenda (BESRA).1 6. The overall objectives of BESRA encompassed universal access to basic education schooling and success for children in that age group, with community support enabling effective school-based management, and the provision of universal functional literacy for adults using alternative learning schemes. The policy actions of BESRA were collected under five key reform thrusts (KRTs): (i) school-based management (ii) teacher standards; (iii) quality assurance; (iv) complementary early childhood education, alternative learning systems and private sector participation; and (v) organizational development. 7. Project Context. Building on the lessons of the past and aligned to the Government’s MTPDP, the Country Assistance Strategy (CAS) 2006-2008 sought to achieve economic growth and promote social cohesion. While improving education in general would contribute to this overall objective, support for BESRA had a strategic

1 Basic education in the Philippines includes kindergarten, elementary and high school (K-12).

3

focus since it tackled two key challenges: fiscal reform in the short-term and making public institutions more effective in the long-run. The strategy was designed to support the Government’s overall, coherent reform agenda and in particular to align Bank assistance to those strategic priorities in the existing national budget that address reforms to achieve fiscal stability and improved governance. The National Program Support for Basic Education (NPSBE) was the first Bank operation in the Philippines that adopted a National Program Support (NPS) approach. This approach required a shift from financing discrete projects towards support for coherent programs. The project was designed to support strategic elements and key thrusts of the country’s basic education reform program. It was a move toward a program-based approach which provided more support to sector-wide type operations focused on core mandates, functions and service delivery improvements within the budget. As such, the project adopted the program objective of the BESRA as well as government targets. These targets are considered the higher order outcome targets given that Bank assistance was only 1 percent of the annual budget of DepED. 8. The Bank assistance through the NPSBE facilitated implementation of reforms furthering decentralization and rationalization of the system of basic education in ways that improve equity, quality, governance and financing of basic education services. Project financing was targeted to selected budget line items that are strategically important for reforms (see Table 4 in Annex 3). With its program approach, the NPSBE provided the impetus to launch system-wide reforms by targeting strategic policies and monitoring their implementation such that there was greater effectiveness in the use of existing resources focused on implementing targeted reforms. It also sharpened the Government’s policy framework for coordination of donor assistance and provided a roadmap for subsequent additional financing from the donor community for implementation of the reform agenda. The sector wide program approach of NPS also helped mobilize resources not only from donor partners but also among local private sector-partners to support sector-wide reforms. It also allowed the Bank to provide advice on a broad range of issues given the Bank’s broad involvement and engagement in the country through the fiduciary work, governance and anti-corruption agenda, PEM, among others. 9. Project financing represented approximately 1 percent of the yearly DepEd budget and 5 percent of the line item support for one year. While the project resources were a small portion of the overall government budget, it was viewed as important for leveraging additional resources for the government’s education policy reforms. In addition, the BESRA provided the government with the first opportunity to coordinate donor assistance in an effort to meet the reform goals. The government worked with the donors to ensure that donor assistance did not overlap and that all aspects of the reform agenda could be covered based on the needs of the government. Related to this donor coordination, AusAID provided trust fund money to be administered by the Bank for the

4

Support to Philippine Basic Education Reforms (SPHERE) 2 project, which mainly financed the needed technical assistance (TA) for critical areas of BESRA that were not supported under the NPSBE. This project ran in parallel to the NPSBE and was instrumental in supporting the necessary studies to assess the governance issues as well as studies needed to ensure the impact of the NPSBE resources. The SPHERE recipient executed grant: (i) mobilized experts and experienced practitioners for the BESRA technical groups responsible for implementing the various components of the reform agenda; (ii) provided SBM grants; and (iii) constructed classrooms in high need areas in Southern Philippines. 1.2 Original Project Development Objectives (PDO) and Key Indicators 10. The project development objective is to improve quality and equity in learning outcomes for all Filipinos in basic education. The key indicators selected to measure progress toward the PDO were: Elementary Participation: (i) participation rate, 6-11 years; (ii) cohort survival; (iii) completion rate; and (iv) dropout rate. High School Participation: (i) participation rate 12-15 years; (ii) cohort survival; (iii) completion rate; and (iv) dropout rate. Quality and efficiency: (i) Grade 6 Achievement in mathematics, Filipino, English, science, and Hekasi (social studies); (ii) inter-quartile ratio 3 for elementary schools; and (iii) inter-quartile ratio for high schools

1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification 11. The PDO was not revised during project implementation, and the key development indicators remained the same throughout the life of the project. However, in 2011, DepEd adjusted the PDO targets. These adjustments were made based on the 2010 census data, which showed a decline in population growth and the recognition that the targets were too ambitious. The government only officially validated the new end targets in December 2012. The Bank team was not able to restructure the results framework given that the project was closing December 31, 2012. Since the revised targets provide a

2 The recipient-executed SPHERE project will close November 30, 2013 and at that time a separate ICR will be prepared to assess its impact. The recipient executed grant implemented by DepEd consists of: (i) mobilization of experts and experienced practitioners for the BESRA technical working groups; training of teachers, regions and divisions on various areas of the reform; provision of teaching and learning materials and construction of Learning Resource and Management Development Centers; (ii) provision of SBM grants; and (iii) construction of classrooms in high need areas in Southern Philippines. There were two Bank-executed grants, one for incremental supervision costs and another provided demand driven analytical work, which includes: (i) ESC program review; (ii) mobilization of technical assistance in various areas of the reform such as on SBM, organizational development, ICT in education, financial management, teacher development, etc.; (iii) complementary resources for the development of the medium-term expenditure framework; (iv) development of the Special Education Fund budget manual; and (v) policy review of all DepEd policy issuances from 1970 to date with the end view of improving policy formulation, identifying policy gaps and eliminating policy overlaps. 3 Defined as the proportion of teachers available to most favored 25 percent of students among individual schools/proportion available to least favored 25 percent

5

more realist picture of the education system, the ICR will use the adjusted targets to assess system improvement and measure project achievement.

1.4 Main Beneficiaries 12. The targeted beneficiaries in the project consisted of: (i) the schools and their communities, encompassing individual parents, the Parent-Teacher-Community Association (PTCA), local government, the private sector, and non-government organizations (NGOs); (ii) basic education teachers; and (iii) basic education learners. 1.5 Original Components4 13. Component 1: Strengthened School-Based Management (US$71 million). This component aimed to: (i) develop school-community partnerships; (ii) establish a structure of support and accountability; (iii) capacity building; and (iv) ensure quality and equity at the school-level. The project-related outcome was enhanced learning outcomes for all, resulting from improved efficiency, transparency, fairness, accountability and responsiveness in the local delivery of education services. 14. Component 2: Improved Teaching Effectiveness (US$23 million). This component supported: (i) the development of professional standards for teachers; and (ii) teacher deployment. The project was to finance: (i) the development of policy on the refinement and use of competency-based standards for teachers and training on the use of such standards; and (ii) a hardship allowance for teachers moved too hard to-staff schools, as currently committed within the 2006 DepEd budget. 15. Component 3: Enhanced Quality and Equity through Standards, Assessment and Support (US$96 million) aimed at developing: (i) a National Standards Framework; (ii) a Quality Assurance Framework; and (iii) an ICT Policy. In addition to policy development, the project financed Maintenance and Other Operating Expenses grants (MOOE), key textbooks and learning materials, training, database hardware and software, advocacy and technical assistance related to quality assurance, and provided funds for the school building program to help schools meet minimum standards. 16. Component 4: Effective Resource Mobilization (US$2 million). This component supported the enhancement of: (i) financing framework and budget process; (ii) demand-side financing; and (iii) private sector participation. Financial support was provided for policy formulation and its application to options for the delivery of demand-side interventions (e.g., school feeding) and public/private partnerships (e.g. government assistance to students and teachers in private education or GASTPE) in a decentralized environment.

4 Original project financing by component also included US$7.5 million for unallocated, and the Front End fee of US$.5 million.

6

1.6 Revised Components The components were not revised during the implementation period. 1.7 Other significant changes 17. On July16, 2009 project funds were reallocated to increase the funds available for classroom construction because the principal led construction program was highly successful. The allocation was increased from US$26 million to US$97.5 million. The additional US$71.5 million was taken from the allocation for school feeding, training, textbooks, hardship allowance and school MOOE. While there was reallocation across categories to support additional classroom construction, this did not affect the amount of allocation provided by the Government through DepEd for these important components of the NPSBE. 18. On December 13, 2011, the Bank, at the request of the government, granted a twelve month extension of the original project closing date from December 31, 2011 to December 31, 2012 in order to complete the procurement and delivery of the English, mathematics, and science and technology textbooks financed under the project.

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design and Quality at Entry 19. Project Preparation. In 2005, the Government of the Philippines and the Bank decided to support the BESRA with a Sector Investment and Maintenance Loan (SIML) which aimed to bring sector expenditures, policies and performance in line with the BESRA. This decision was based on an agreement with the government on the 2005-2010 sector investment program that was predicated on the medium-term expenditure framework and sector policy reforms necessary for the program to succeed. In addition, it was based on the Country Assistance Strategy (CAS) 2006-2008 that called for a graduated response to policy reforms that enabled public institutions to be more effective. The Bank preparation and appraisal teams consisted of technical experts that were appropriate for the development of the project. Project preparation was also spread over several months, which allowed for the development and continuation of a sector-wide dialogue with the government, DepEd and the donor community on the project support for the BESRA. This was done in an effort to engender strong and sustained political leadership, championship and ownership, which the team felt were important for the success of the project. On the government side, DepEd held meetings and workshops, to build consensus around the BESRA and the development of the NPSBE among donors, the rest of government and civil society. DepEd also created technical working groups (TWGs) to focus on the KRTs and help develop the four project components and to ensure effective communication with the DepEd on project preparation. The project preparation process was thoughtful, collaborative, and technically sound and to the extent possible, based on lessons learned from previous operations.

7

20. Project Design. The NPSBE project design fit squarely into the government’s BESRA (2006-2010), MTPDP and the Bank’s 2006-2008 CAS. They shared the common objectives of fostering economic growth and social inclusion through improved governance, together with fiscal reform. The NPSBE project underwent a thorough quality at entry (QER) process: The project design took into consideration comments from the November 2005 project preparation review (PPR)5, which included the need to provide: (i) more details on the level of government commitment; (ii) clearer terms on the budget items to be financed; (iii) an enhanced economic and financial analysis; (iv) a more in-depth financial management and procurement assessment; and (v) a review of the National Government Accounting System (NGAS). The preparation team also incorporated lessons learned from past specific investment loans (SILs), such as: (i) for SBM to promote school effectiveness, schools require adequate and appropriate resources; (ii) clear delineation of roles and responsibilities within a decentralized environment is critical to the success of a reform strategy; and (iii) participation of local stakeholders in school improvement planning and implementation is critical to achieve desired learning outcomes and to mobilize needed resources.

21. The project design included the appropriate activities to assist the government in reaching their reform agenda goals of: (i) continuous school improvement facilitated by active involvement of local stakeholders; (ii) better learning outcomes achieved by improved teacher standards; and (iii) desired learning outcomes enhanced by national curriculum strategies, multi-sector coordination, and quality assurance. The PDO of improve quality and equity in learning outcomes for all Filipinos in basic education was appropriate since this was the objective of the BESRA. The key indicators in the results framework were national in scope and derived from the BESRA and, again, this was appropriate given the NPSBE’s direct link to the BESRA. The project design also included 26 intermediate indicators all of which were appropriate for measuring implementation of the project components. It should be noted that the PDO indicator targets were the BESRA targets, which were adopted by the preparation team at the request of DepEd since the project design was supportive of the BESRA. In addition, government asked the preparation team to include all 26 intermediate indicators to ensure that important project reform activities would be continuously monitored. The budget items of: (i) classroom construction; (ii) SBM grants; (iii) textbooks; (iv) training, which included teacher and capacity development training; (v) MOOE support; (vi) school feeding; (vii) hardship pay and (viii) policy development were selected to ensure that the BESRA reforms related to decentralization received adequate and sustained support. This was an appropriate design decision. The preparation team identified project risks and proposed adequate mitigation measures. To support the implementation of the NPSBE, it was decided to mainstream implementation within the DepEd units that were ultimately responsible for meeting the objectives of the BESRA at the central, regional, division offices and schools as mandated in the Governance of Basic Education Act (RA 9155).

5 The PPR was the equivalent of a Quality at Entry Review as indicated in project preparation documentation.

8

This structure was appropriate to ensure continued ownership of the NPSBE project and the BESRA. The preparation team conducted an in-depth institutional capacity assessment at all levels, which gave the team confidence that DepEd had built the foundations required to implement the reforms and NPSBE. 2.2 Implementation 22. Implementation began with workshop sessions for theme groups responsible for implementing particular reforms, as well as for officers responsible for handling procurement, financial management, disbursement and monitoring and evaluation. The DepEd continued the TWGs with the mandate that they would be responsible for the implementation of the reform agenda and the NPSBE activities. While there were initial capacity concerns, the implementing units, through their daily work, were able to ultimately implement all project activities. Where there was a need for support, technical assistance was provided as well as capacity training. 23. During the first 12 months of project implementation, disbursements were low due to limited financial management capacity at the regional and division levels. However, by April 2008 disbursements had increased from US$3.55 million to US$28.12 and by June 2008 to US$56.21 million. This was mainly due to the strong implementation of the principal led school construction and procurement of textbooks. Since the school led construction was so successful, the government, in July 2009, asked the Bank to restructure the project to reallocate an additional US$71.5 million of project funds to school construction. Because there was an independent evaluation of the principal led construction that showed the quality of construction was high, the Bank team felt that the reallocation was appropriate for the project. The government also indicated that they would increase the allocation for school feeding, training, textbooks, hardship allowance and school MOOE, which they were able to do. (See Annex 3 for increased budget allocations for these line items.) By October 2009, the project had disbursed US$108.01 million and in November 2009, there was a mid-term review of the project and, at that time, disbursements were in line with the original disbursement profile. 24. There were substantial successes in the implementation of project activities. The SBM TWG developed an SBM manual and an equitable and formula based MOOE allocation. The SMB TWG also: (i) developed SBM standards and framework that were rolled out across the country, (ii) provided training on the development of school improvement plans and their utilization; (iii) introduced school report cards nationwide; and (iv) developed and provided guidelines on school-community partnerships. While the systems are in place there is still some work to be done in terms of the strengthening of the roles of the governing councils specifically as they relate to accountability as well as increasing community participation. Further impact of SBM is likely to be realized as these roles get strengthened. Although challenges remain, SBM, through training, capacity development, and socialization activities has shown that: (i) 90.76 percent of schools have school improvement plans; (ii) 84.54 percent of schools have school governing councils; (iii) 97.85 percent of schools have school report cards; (iv) 97.27

9

percent of school heads have been oriented to SBM; and (v) 88 percent of schools have been oriented to simplified accounting procedures. This is a considerable achievement. 25. The BESRA with support from the NPSBE also: (i) introduced the National Competency Based Teacher Standards Assessment (NCBTS) and a teacher self-assessment tool, which informed teacher hiring guidelines and in-service training programs respectively. These standards were also incorporated into teacher support materials, teacher professional development, and the national assessment. The government also: (i) universalized kindergarten, making it officially part of the basic education cycle, hiring and training kindergarten teachers6 and the development of a kindergarten curriculum; (ii) revised the entire basic education curriculum content and framework to accommodate the new Kindergarten to Grade 12 program (“K – 12”); (iii) revised Alternative Learning Systems (ALS) programs; (iv) revised the grades 1–10 learning competencies, (v) developed an assessment framework; (vi) piloted mother-tongue based-multilingual education (MTB-MLE) in 20 national languages in 921 schools nationwide, and developed supporting materials for teaching and learning in the 12 main languages, 7 and (vii) distributed approximately 16.5 million textbooks and teachers manuals for English, mathematics, social sciences and science and technology. The project also has supported the rehabilitation of 13,659 classrooms and constructed 4,813 new ones. (See Annex 2 for more highlights of implementation.) 26. There were also challenges during implementation. The NPSBE had a goal of developing a 5-year staffing plan to facilitate the equitable distribution of teachers to remote disadvantaged schools. Although this plan was not developed during the life of the project, DepEd did have a color-coded scheme that designates needy schools, which was used in lieu of the staffing plan. There were systemic delays with teacher deployment that were identified through a governance study conducted by the Bank. The study’s findings led to policy changes that ultimately reduced deployment time from one to two years to six months. As a result, DBM has allocated an additional 61,000 teacher positions for fiscal year 2013. There continue to be a small number of schools that are not collecting or receiving the full amount of MOOE.8 To address this issue, one of the steps DepEd took was to start posting MOOE allocations on the DepEd website. This has

6 During FY 2011 and 2012, approximately 8,000 new Kindergarten teachers were hired, 42,880 trained as part of the Kindergarten Volunteer program, 13,962 as part of the 2011 summer program, 633 as trainers of the summer or the 40-week Kindergarten curriculum program, 471 received scholarships to attend the summer Institute-Based training for kindergarten teachers, and there was a 20-day training program offered by the State Universities and colleges for the equivalent of a 9-unit course for a Master’s degree in Early Childhood and Development. Although not financed by NPSBE, the project served as a catalyst for mobilizing additional support to develop and roll out these reforms and activities. 7 The 12 languages include Tagalog, Ilokano, Pangasinense, Kapampangan, Bikol, Cebuano, Hiligaynon, Waray, Maranao, Maguindanao, Yakan and Chavacano. 8Some of the reasons for not receiving or collecting the full MOOE amounts include: (i) technical and capacity constraints (division retaining funds; insufficient MOOE budget especially for small schools; human resource and workload constraints; etc.); (ii) divisions resistant to decentralizing funds management to schools; (iii) few institutional incentives to comply with full downloading; and (iv) lack of effective monitoring of MOOE downloading or awareness of school heads regarding MOOE amounts.

10

increased schools’ and communities’ awareness of their allocation, which has improved distribution, collection, transparency and accountability related to the MOOE. The overarching implementation challenges were related to: (i) financial management; (ii) capacity constraints at the division and regional levels; and (iii) procurement of textbooks. NPSBE was the first education project to be mainstreamed and to use country systems for implementation. The preparation team had identified financial management as a risk due to weak government systems and limited financial management capacity with appropriate mitigation measures. However, they still presented problems related to withdrawal applications which slowed the reimbursement process. Some capacity constraints at the local levels were encountered during the roll out of SBM and the implementation of its different components. However, DepEd remained responsive and supported the decentralized structures through training and capacity building activities. The procurement issues were related to the quality/completeness of bidding documents for textbooks and some books not meeting the required technical specifications. These delays required the government, in December 2011, to request an extension of the project closing date from December 31, 2011 to December 31, 2012. The textbooks were procured and delivered and by project closing 100 percent of the loan was disbursed. 27. There were nine Bank review and implementation support mission from the period September 2007 through March 2012, with a final BESRA review mission in August 2012. The makeup of the Bank’s teams was well balanced with financial management staff well represented on missions, along with procurement, monitoring and evaluation specialists, both Bank staff and consultants as well as technical specialists9 where necessary. The US$200 million was fully disbursed by May 22, 2013. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 28. Design. As stated previously, the results framework was appropriate for the project design and reflected the goals of the BESRA. The indicators were linked to the PDO and were adequate to measure achievement of the PDO. The targets for the PDO indicators were projections based on the 2000 census. At the time of design, the QER panels suggested that the target might be overly ambitious. However, after discussions with the government, the targets were kept since they were based on the official government targets. The intermediate indicators were also linked to the components and were appropriate to measure intermediate level achievements. The results framework included 26 intermediate indicators. While this is a large number of indicators, they were included in the framework at the request of DepEd to ensure that important project and reform activities would be continuously monitored. In addition, the indicators were included to ensure that other partners, both local and international, would provide technical and financial resources to support the achievement of the BESRA results indicators. The design also included support for: (i) a web-based Enhanced Basic

9 The missions included SBM specialists, teacher development experts, quality assurance practitioners, and data management experts when appropriate for review of project activities.

11

Education Information System (e-BEIS) to enable performance reporting in real-time as well as to inform planning, resource allocation, and performance reporting; and (ii) a Quality Assurance and Accountability Framework (QAAF) to lay the foundation for redefining school input standards including textbooks, school infrastructure, teacher training materials, etc. 29. Implementation and Utilization of Monitoring and Evaluation. The roll out of the e-BEIS nationwide has allowed central offices to upload the school data they receive onto the website, allowing schools to access the information directly or for divisions to download and share the information with their respective schools. This has had the intended impact of being able to provide real-time information at all levels of the education system. In 2010, the government adopted the QAAF, along with the roll-out of the Philippines Accreditation System for Basic Education (PASBE). PASBE is a unified schools standards assessment tool that is applicable to both elementary and high schools, and facilitates measuring their level of compliance with service standards. The QAAF and PASBE did lay the foundation for re-defining school input standards and all schools are now using these standards. DepEd, with support from AusAID, developed a learner information system (LIS) that includes a learner reference number for each student irrespective of whether enrolled in the formal or non-formal education system. This system currently holds information on approximately 20 million learners and is providing DepEd with valuable information on each learner and allows it to make informed decisions for the planning and budgeting process. 30. Under the BESRA as a whole, the M&E system includes: (i) a learning resources materials development system that is being used to upload learning materials; (ii) an asset management system which is operational at the central level and will be expanded down to the regional and division levels; (iii) a Training and Development Information System (TDIS) being piloted in Regions 6, 7 and 8 and which includes an inventory of training, research and development activities conducted at the regional levels; (iv) the ongoing development of a project monitoring system being developed under the Philippines’ Response to Indigenous Peoples’ and Muslim Education (PRIME) program, which created a system of providing demand-driven grants to respond to indigenous people (IP) education needs; and (v) the ongoing development of a human resources information system, which has been put on hold pending the government’s plan to roll out a government human resources information system (GMIS). 31. The DepEd provided Bank missions with data and information that allowed the teams to make judgments on progress toward achieving the PDO and the project’s implementation progress. This information was regularly reported on by the Bank in aides-memoire and ISRs. As mentioned, the targets for the PDO level indicators were adjusted and are being used to measure project achievement. It should also be noted that 26 intermediate indicators were monitored and reported on over the life of the project. 2.4 Safeguard and Fiduciary Compliance 32. Safeguards. The environmental rating of the project was “C” based on the fact that no environmental risks were foreseen and construction would comply with national

12

environmental laws for environmental impacts. Therefore, OP 4.01 Environmental Assessment was not triggered and no environmental assessment tools were developed as part of the project. The project did, however, conduct a review of the environmental safeguards at mid-term and determined that there was compliance with local regulations. At the time of project closing, again all environmental safeguards were in compliance with local regulations. 33. The project did trigger the Indigenous Peoples OP 4.20 because the reform agenda was to address both quality and equity especially for the poor and disadvantaged groups, including indigenous peoples. The project was satisfactorily carried out in accordance with the Indigenous Peoples Planning Framework – IPPF and the government’s Philippines Indigenous People’s Rights Act – IPRA. Although encountering initial delays, the government approved and disseminated the National Indigenous Peoples Education Policy Framework in August 2011. The framework is to ensure that IP’s basic education concerns and needs are taken into consideration as part of BESRA implementation. DepEd supported several activities related to the promotion of indigenous peoples education, which were: (i) piloting MTB-MLE in 20 languages; (ii) dissemination of the National Indigenous People’s Education Policy Framework; (iii) issuance of guidelines on the use of PRIME grants, which created a system of providing demand-driven funding to respond to IP education needs; (iv) creation of an indigenous peoples education office (IPsEO); and (v) with AusAID support, conducting a baseline survey on the educational situation in IP and Muslim households in PRIME priority divisions and regions. The other IP activities included: (i) review of standards for the recognition and accreditation of private schools for IPs; (ii) development of a national curriculum framework on IP education for kindergarten, elementary and high school levels; (iii) guidelines and standards for the development of indigenous learning materials; and (iv) an IP education training plan for teacher and education managers. School visits have shown that interventions through the school SIPs to support IP students are designed but are often separate rather than an integral part of the plans. The next steps are to fully integrate them into the SIPs. Safeguards compliance is rated satisfactory. 34. Financial management. As discussed previously, the project was designed to use the government accounting system. In October 2001, the Commission on Audit (COA) introduced the new government account system (NGAS) that followed international public sector accounting procedures. The bookkeeping segment of NGAS was computerized and was referred to as eNGAS. The NGAS updated and replaced the government accounting and auditing manual, which had been in use since the 1940s and was viewed to be a milestone in the government accounting procedures. While the system was viewed as a significant step forward, the implementation of the system proved to be problematic for project implementation and financial management (FM) performance. The FM challenges were: (i) establishment of an Internal Audit Service (IAS), which only became fully operational in early 2011; (ii) DepEd central, regional and division offices had to be adequately staffed and trained to carry out the high volume of FM transactions, which took time; and (iii) the eventual roll-out of the eNGAS after it was suspended in December 2008 in an effort to harmonize the Philippines general accounting standards with the international public sector accounting standards. This led

13

DepEd to consider developing its own web-based financial management information system (FMIS), which is being finalized with AusAID support. Since all the computerized systems were either put on hold or are still being finalized, the project FM activities were carried out manually. 35. Manual accounting for the central office staff was a challenge because they were understaffed for such a large task. Given the large volume of financial transactions, weak capacity and inadequate staff, the central office was unable to cope with the work load. This led to: (i) delays in meeting loan covenants (i.e. timely submission of financial reports, SBM validation reports or supporting documentation for auditing purposes); (ii) timely liquidation of cash advances; (iii) the absence of physical inventory reports and non-maintenance of “Property, Plant and Equipment Ledger Cards” in the case of school construction; and (iv) funds having to be returned due to non-compliance with procurement or disbursement rules. In addition, COA re-instituted a selective pre-audit of cash advances and school construction expenditures in 2009, which added to the transaction processing delays. 36. Despite these difficulties, DepEd was able to, after a slow start: (i) significantly increase disbursement levels from 11 percent in March 2008 to 54 percent by November 2009 and 100 percent by project closing; (ii) encode a substantial number of 2004 – 2010 financial transactions in eNGAS once COA lifted its suspension in 2011; (iii) partially mitigate the staffing issue by using FM staff from the division offices to assist with FM responsibilities; and (iv) by 2011, significantly improve its compliance with time-bound financial statement submissions, submitting all outstanding audit reports and school grant validation reports. Efforts on DepEd’s part to address COAs comments on the 2007 Agency financial statements led the COA to modify its opinion from “adverse” to “qualified” in 2010. While DepEd worked to improve their FM, they were not able to fully address COA’s recommendations on FM staffing issues. This, coupled with the overall weak record keeping and the qualified audit for CY2011, resulted in a final project rating of moderately unsatisfactory for financial management. Despite the unresolved staffing issues and MU rating, DepEd still exerted its best effort towards the application deadline date to collate all disbursement documents for submission to the Bank resulting to full disbursement of the loan proceeds. 37. Procurement. Procurement performance of the project is considered satisfactory. Shortly after effectiveness, the project had been able to contract US$26 million for school construction, and conducted a school-mapping exercise to ensure schools are built/rehabilitated in the most critical areas. One of the most remarkable achievements was the use of the “principal led approach” to construction, where the school principal oversaw progress of classroom construction or rehabilitation.10 This procurement method was consistently rated satisfactory due to the fact that construction was of better quality to other government led construction programs. The approach was so successful that it required an increase of funds allocated to school construction from US$26 million to

10 Prior to each construction/rehabilitation, DepEd would sign a “Statement of Interest” with the LGU that established the level and type of contribution to the works (cash or in-kind), and ensured community buy-in.

14

US$97.5 million in July 2009. By August 2010, all civil works had been completed and dedicated funds disbursed, leading to the rehabilitation of 13,659 classrooms and construction of 4,813 new ones. The project was also able to purchase and distribute approximately 16.5 million textbooks. However, there were delays in procuring some of these books due to the quality/completeness of bidding documents and some books not meeting the required technical specifications (i.e. paper weight, etc.). There were also minor infractions for civil works (i.e. incomplete record keeping, inclusion of small ineligible activities, etc.) but overall, the project carried out its procurement according to the legal agreement and operations manual. 2.5 Post-completion Operation/Next Phase 38. A new lending operation and a series of analytical works are currently being prepared. The Learning, Equity, Accountability Program Support (LEAPS) provides a US$300 million loan to continue to support the gains made under BESRA and NPSBE. LEAPS is expected to: (i) look at ways to improve teaching and learning in early grade reading and math through teacher capacity building, and develop and use mother-tongue based reading and math assessment tools; (ii) strengthen accountability, which is a major part of the SBM approach, especially at the school level while also strengthening DepEd’s financial management capacity; and (iii) improve program designs targeting disadvantaged groups by expanding the knowledge base on selected programs targeting disadvantaged groups, such as ALS, and improve program design and implementation capabilities. Furthermore, LEAPS will use disbursement-linked indicators, which will reduce the number of required financial transactions and documentation and help with project implementation. 39. A proposed series of analytical works will support the CAS objective of improving access to quality education services. The analysis will be centered around the following strategic pillars: (i) Efficiency and Equity of Education Finance and School Funding, analyzing DepEd’s education finance policies for more equitable and better quality of service delivery; (ii) Quality of Service Delivery Analysis, which aims to take a comprehensive look at the determinants of effective education service delivery; (iii) School to Work Transition: Skills Demand and Supply in order to shed light on skills gaps/mismatches as well as the strengths and weaknesses of the basic education system; and (iv) Basic Education Reforms Dissemination and Communication. The result of these pieces of analysis is expected to provide DepEd with valuable information and facilitate their efforts to sustain and expand the BESRA goals. 3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation 40. Relevance of Objectives. The project development objectives were highly relevant to the country’s sectoral needs when the project was developed. The objectives fit squarely into the government’s BESRA, MTPDP and the Bank’s 2006-2008 CAS. They shared the common objectives of fostering economic growth and promoting social cohesion. Like the 2006-08 CAS, the new CAS (2010-12) also focuses achieving more

15

inclusive growth by supporting the Philippines increased access to better public services for the poor by deepening the reform agendas in key public services sectors and expanding basic service delivery directly to the poor. The project and BESRA continued to fit into the 2010-2012 CAS objectives. There is a new CAS currently under preparation that is expected to continue the focus on supporting the Philippines reform agendas in key public services sectors. In addition, it is expected that the government will continue its education reform agenda through the BESRA. 41. Relevance of Design. The relevance of the project design is substantial. The project was appropriately aligned with the BESRA PDO and PDO indicators, and it included appropriate activities to assist the government in reaching their reform agenda goals. The mainstreaming of project implementation was also appropriate to foster improved capacity within the system. Furthermore, the project risks and mitigation measures were also appropriate given the government systems in place at the time of design. While the PDO level indicators were appropriate, the targets for the indicators proved to be overly ambitious. The preparation team discussed this issue during the QER however, as indicated earlier, the decision was made to keep the DepEd targets since they were based on the 2000 census and the government made a strong request to keep the project targets the same as the government targets. Achieving the targets year over year presented challenges for the project and it was not until 2011 that targets were revised downward.

42. Relevance of Implementation. The relevance of project implementation is judged to be substantial. As indicated above, implementation of the majority of project activities was highly successful: SBM has been institutionalized, system-wide monitoring systems are in place and will continue to be expanded, NCBTS has been institutionalized, and MOOE allocations have been institutionalized. The substantial rating is mainly based on the persistent FM implementation issues. While the project was able to disburse 100 percent of the project funds, DepEd still has to produce required FM documentation and reports manually. This is a slow and cumbersome process and the project audit reports reflected these problems. Since DepEd could not resolve these issues in a timely enough way to satisfy the COA audit, they issued a final qualified audit and the project completed with an MU rating for financial management. 3.2 Achievement of Project Development Objectives 43. The overall achievement of the project development objectives is moderately satisfactory. The project contributed to a number of positive outcomes for the Philippines education system. As indicated, the targets were revised downward, which is new information provided at the time of the ICR. Therefore, this section evaluates the outcomes against the results based on the new targets. The project development objective was to improve quality and equity in learning outcomes for all Filipinos in basic education and the PDO level indicators selected to monitor achievement of the PDO were as follows: 44. Elementary participation. The participation rate for 6-11 year increased from the baseline of 88.58 percent in 2003/04 to 97.3 in 2011/12 percent exceeding the revised

16

target of 90.09 percent. The overall enrollment numbers have also increased from 13 million to 14.4 million from 2003/04 to 2011/12. These are both substantial increases for the system. Although the 2010 census reports a decline in population growth over the period 2000-2010, the increase in enrollments seems to be attributed to the fact that more children of elementary school age are going to school even though population growth has declined. Enrollment increases have also been larger for the poorest households. For example, between 2004 and 2011 attendance rates for 6 to 11 year old children increased by 7.5 percentage points for the poorest 10 percent of households compared to a less than 1 percentage point increase for children in the wealthiest 30 percent of households.11 Increases in enrollment may be attributed to: (i) improvements in the alternative delivery modes which are allowing children, particularly boys, to participate even though they have to work and (ii) the conditional cash transfer (CCT) program that provides resources directly to poor households to enable their children to attend school and avail of health services. The CCT program currently covers children ages 6-14. Cohort survival rate increased from 63.57 in 2003/04 to 73.46 in 2011/12 percent, missing the 2011/12 revised target of 76.46 percent. Although the cohort survival rates did not meet the targets, the rates did improve which implies that the system has been able to sustain a level of quality even under such a rapid expansion. Completion rate increased from 62.06 percent in 2003/04 to 70.96 percent in 2011/12 missing the revised target of 75.13 percent. Again, the completion rates did not meet the targets, but improvements overtime implies that the system has been able to sustain a level of quality even under rapid expansion.12 This is a substantial achievement. The dropout rate has declined from 8.9 percent in 2003/04 to 6.38 percent in 2011/12. While this is an appropriate trend, the original target of 4.3 percent was missed. 45. High school participation. The participation rate for 12-15 years increased from the baseline of 61.16 percent in 2003/04 to 64.8 in 2011/12 percent slightly missing the revised 2011/12 target of 65.16 percent. The overall enrollment numbers for high school have increased from 6.3 million to 7 million between 2003/04 and 2011/12. While these numbers do not mirror the increases in elementary enrollments, there have been some improvements in equity in school attendance between poor and wealthy households. For example, between 2007 and 2011, school attendance among 12-14 (15-18) year olds increased by 5.5 (5.1) percentage points for the poorest 10 percent of households compared to only 1.1 (0.6) percentage points for the wealthiest 10 percent of households (Reyes, Tabuga, Mina and Asis, 2013). However, gaps between older children aged between 15 and 18 widened slightly over the same period. The government continues to

11 Reyes, Tabuga, Mina and Asis, 2013.

12 The completion rate in the Philippines is measured by the percentage of first year entrants in a level of education who complete the level in accordance with the required number of years. However, the completion rate formula being used by the Bank and UNESCO, which measures the grade/year level of all completers, shows that elementary completion rates have already reached 91 percent at the elementary level. The achievement of this indicator is attributed to the improvements in the delivery system and the increase in the demand-side interventions to improve participation of children from poor households.

17

develop policies to try and improve the enrollment numbers. As of 2013, the government is finalizing its policy to extend the CCT program coverage to children up to age 18. This policy change is being made in an effort to provide over-aged children entering the system with the means to continue their education through high school as well as to respond to the additional years of schooling in high school as a result of the implementation of the K-12 program. Cohort survival rate increased from 63.11 percent in 2003/04 to 78.83 in 2011/12 percent barely missing the revised target of 79.35 percent. Completion rate increased from 58.22 percent in 2003/04 to 74.23 percent in 2011/12 again, barely missing the revised target of 74.25 percent. Drop-out decreased from 14.3 percent in 2003/04 to 7.82 percent in 2011/12. Again, this trend is positive. 46. Quality and efficiency. The measure of quality at the elementary level was measured based on the Grade 6 achievement test for mathematics, Filipino, English and science, for both elementary and high school.

Table 1: National Achievement test scores, Grade 6 and Year 2

SY 2003/04 Actual 2011/12 Grade 6 Achievement* 54.66% 66.90% Mathematics 53.66% 66.47% Filipino 61.70% 69.15% English 54.05% 66.27% Science 46.77% 66.11% Hekasi-Social Studies 59.50% 65.97%

SY 2006/07 Actual 2010/11**

Year 2 Achievement* 46.66% 47.93% Mathematics 39.06% 42.00% Filipino 48.91% 58.39% English 51.81% 46.45% Science 42.00% 39.35% Hekasi-Social Studies 51.51% 52.30%

*The National Education Testing and Research Center test equated to allow valid comparisons across years. **The 2010/11 scores are being used for actuals due to the fact that for SY 2011/12 the high school test was administered to year 4 students. Since 2011/12, the national achievement test has assessed Year 4 high school students instead of Year 2 students. In order to provide a meaningful time trend at the high school level, 2010/11 scores for Year 2 students are compared with 2006/07 test scores.

47. Test results at the elementary level have shown improvement in all subjects. In the case of high school, test results have shown improvements in mathematics, Filipino, and Hekasi (social science) with some declines in English and science. These improvements are impressive considering the elementary and high school net enrollment rates increased and approximately 2.2 million more children were attending school in 2011 than in 2005. In addition, a large proportion of these children are likely to have come from poorer households where support for education is more limited and factors associated with dropout and repetition more prevalent. This could explain why there was some decline in the English and science test scores. Additional evidence for improved achievement come from the recent SBM impact evaluation, which confirms the

18

significant and positive impact of SBM on education performance (World Bank and AusAID 2013). The study measured the impact of SBM on learning outcomes by looking at the differences in the roll-out of SBM and associated grants between 2006 and 2009.13 The study found that, over three years, the introduction of SBM and the provision of grants improved scores on the National Achievement Tests (NAT) by 4 to 5 percentage points (approximately 0.25 standard deviations). In that the NPSBE provided considerable support to the roll-out of SBM, this is a significant impact for the project and the BESRA. 48. Project efficiency indicators selected were measured using the inter-quartile ratio of pupil to teachers, using the school as the unit of analysis.14 The inter-quartile ratio for elementary schools decreased from 2.05 in 2003 to 1.95 in 2011 missing the target of 1.50. The inter-quartile ratio for high schools also decreased from 2.53 in 2003 to 2.19 in 2011 missing the target of 2.00. 49. Although the targets were missed, a study estimated that there were 83,000 excess teachers in the basic education system (68,000 at elementary and 15,000 at high school) in 2003/04 (Department of Education, 2005). A follow up study, using 2009/10 data and the same methodology, showed that the number of excess teachers had declined to around 35,512 basic education teachers (Department of Education, 2012). Assuming this had the effect of reducing the need for new teachers by an equivalent amount, this would have reduced the overall salary bill by approximately 10 percent or PHP 12.4 billion.15 While there is no current study available to assess improved distribution of teachers, there is some evidence that suggests that the allocation of the hardship allowance provided for multi-grade teachers has ensured that these teachers remain in hardship posts. In addition, all the new teaching items for multi-grade teachers were the first to be filled by DepEd. This seems to imply that the hardship pay is having the intended effect of keeping teachers in remote or difficult-to-reach rural schools as well as encouraging new teachers to take positions in these ‘hardship’ areas. All these factors combined show the system has made substantial progress in dealing with the rational distribution of teachers. 50. Despite reductions in the number of excess teachers, increases in enrollment have meant that teacher shortages remain. The rapid growth, since 2005, of basic education enrolment has given rise to an increased need for new teachers. This growing demand has been filled by shifting excess teachers to schools with deficits as well as by recruiting additional teachers. These measures have managed to keep student-to-teacher ratios in elementary and public high schools relatively stable over the NPSBE implementation

13 Propensity score matching techniques are used to develop an appropriate control group for the study. 14 This indicator was defined as the proportion of teachers available to most favored 25 percent of students among individual schools/proportion available to least favored 25 percent. This indicator is based on the assumption that Improvements in the efficiency of the system can arise if excess teachers are redeployed to deficit schools or are used to accommodate increased student numbers in new schools/classrooms. This was to not have any effect on the national student teacher ratio but the expectation was that differences in school level student teacher ratios would narrow. 15 This assumes the average teacher salary of PHP 261,376 reported in the latest medium term expenditure framework (Department of Education, 2012).

19

period. However, student-to-teacher ratios remain above the level associated with existing staffing norms. Coupled with rising enrollment, this has meant that the absolute size of teacher shortages has grown. In 2005, it was estimated that schools had a deficit of approximately 38,000 teachers but this had grown to 122,000 by 2009. Much of the increase in the deficit of teachers was at the high school level, where 84,000 teachers were estimated to be needed to ensure that existing staffing norms were met. 3.3 Efficiency 51. The reform program introduced in 2006 was underpinned by significant increased public education spending. Prior to the introduction of BESRA in 2006, public education spending had been on a downward trend. In real terms, overall spending on education declined from PHP 155 billion in 2003 to PHP 140 billion in 2005 (constant 2011 prices). Over the same period, per student spending at the basic education level also fell by 10 percent in real terms (from PHP 7,998 (US$185) to PHP 7,285 (US$168)). However, in 2006, significant increases in public education investment began to reverse these declines. Between 2005 and 2013, public education spending almost tripled in real terms while spending per basic education student increased by around two-thirds. This increased investment had some positive effects on education outcomes; elementary and high school net enrollment rates increased and approximately 2.2 million more children were attending school in 2011 than in 2005. 52. The NPSBE encouraged increased investment in areas that were important to the success of the reform agenda (e.g. the rolling out of school based management reforms, classroom construction and textbook provision). As intended, the budget lines that NPSBE focused on showed significant increases over the implementation period. For example, maintenance and other operating expenses provided to schools more than doubled between 2005 and 2012. The analysis reported in Annex 3 shows that support provided to school based management (e.g. SBM grants) raised learning outcomes in a cost-effective way. Evidence also shows that the efficiency of the education system is likely to have been improved through better teacher deployment. In particular, NPSBE implementation was associated with a decline in the number of ‘excess’ teachers which reduced system costs. The program also provided significant cost savings in the provision of textbooks. School construction costs under the program were comparable with other government-led programs but project construction was assessed to be of higher quality. Based on the overall efficiency analysis in Annex 3, project efficiency is rated substantial. 3.4 Justification of Overall Outcome Rating Rating: Moderately Satisfactory 53. An overall outcome rating of the project is moderately satisfactory based on the analysis above, which shows that: (i) the relevance of design and implementation was substantial; (ii) the PDO was achieved as measured by the significant improvements related to PDO level indicators and overall upward trends in the education system; and (iii) the project was implemented efficiently.

20

Table 2: Project ratings

Project Relevance

Achievement of PDO (Efficacy)

Efficiency Overall Rating

Substantial Moderately Satisfactory Substantial Moderately Satisfactory

3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 54. Education participation among poor households in the Philippines lags behind wealthier households significantly. For example, in 2007, high school net enrollment rates for children from the poorest 10 percent of households were 87 percent compared with near universal enrolment for the wealthiest 10 percent. Elements of the program sought to address these inequalities by expanding access to basic education in underserved, poor and remote areas. The program also sought to improve the distribution of teachers to ensure that schools serving poorer sections of the community are adequately staffed. While the school feeding program, improved during NPSBE, is still small, it focuses on areas where levels of malnutrition are high. Other efforts by government are also addressing education deficits of poor households. An impact evaluation of the national CCT program showed that elementary enrolment and attendance rates of poor children had improved significantly as a result of the program. However, the program had a more limited effect on older children partly because its age limit prevented high school aged children from being supported fully. Efforts are now underway to raise the age limit to ensure a better fit with high school enrolment patterns. The overall outcome of these efforts has been a more rapid improvement in school attendance for the poorest. For example, between 2004 and 2011 attendance rates for 6 to 11 year old children increased by 7.5 percentage points for the poorest 10 percent of households compared to a less than 1 percentage point increase for children in the wealthiest 30 percent of households.16 55. As mentioned, there was a study that found that, over three years, the introduction of SBM and the provision of grants improved scores on the National Achievement Tests (NAT) by 4 to 5 percentage points (approximately 0.25 standard deviations). Interestingly, the mathematics score is more responsive to the education reform than are other subjects. The analysis also finds that textbooks, instructional training of teachers, and new classroom construction particularly contributed to these outcomes. The study also compared students who graduated from schools located in adjacent treatment and control areas before and after a school intervention, which showed significant differences in subsequent schooling investments, migration, and labor market earnings between

16 Reyes, C., Tabuga, A., Mina, C. and Asis, D (2013). Promoting Inclusive Growth Through the 4Ps. PIDS Discussion Paper Series No. 2013-09

21

females and males. That is, females study more (relative to males) and tend to migrate and earn more if they receive high-quality educational investments at an early stage. The above results are consistent with females’ greater incentives to study, driven by their higher returns to schooling, especially after high school completion, observed in the labor market. 17 The NPSBE has had a positive impact with its support for the institutionalization of SBM. (b) Institutional Change/Strengthening 56. The institutional changes have all been discussed within the document. (c) Other Unintended Outcomes and Impacts (positive or negative) Not applicable.

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops Not applicable. 4. Assessment of Risk to Development Outcome Rating: Moderate 57. There were six issues identified as risks during project preparation with an overall rating of moderate. The ratings primarily were related to the reform process sustainability and commitment; capacity constraints in a decentralized environment and governance. These risks remain pertinent. Positive developments to mitigate these risks include the following: (i) DepEd with support from various stakeholders was able to strengthen capacity, improve overall school-based management and institutionalize a decentralized system; (ii) government commitment has remained strong as evidenced by continued improvements to and expansion of the BESRA as well as increased budget allocations for basic education in support of the reforms; (iii) significant increases within the education budget for existing programs such as the MOOE, which are critical for supporting SBM and improved school functioning; (iv) financial management performance and good governance have improved by the end of the project and are expected to continue to improve with the introduction or extension of the various financial, materials and human resource management systems; and (v) stakeholder, donor and private-sector participation in support of the BESRA continues which is a clear indication of their support to the reform agenda. 58. The government remains committed to continuing the BESRA reforms through the consolidation of the lessons learned and expansion of the system with the K to12 program. The Bank will continue to support the BESRA, at the request of the government, with a new loan, the Learning, Equity and Accountability Program Support (LEAPS)

17 Yamauchi, F. and Y. Liu (2012). School Quality, Labor Markets and Human Capital Investment: Long-term Impacts of an Early Stage Education Intervention in the Philippines. Policy Research Working Paper Series Number 6247.

22

project. The LEAPS project will build on the successes of the NPSBE by providing resources to further support the government’s efforts to improve reading and math skills with a focus on disadvantaged groups. The main risk for future operations remains the financial management system. While the government has made progress by re-instituting the eNGAS, the institutionalization of the program will take time. To mitigate the risk, the project will reimburse based on achievement of results (Disbursement-Linked Indicators or DLIs) and not SOEs. Based on these factors, the risk to the development outcome is rated moderate. 5. Assessment of Bank and Borrower Performance

5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Moderately Satisfactory 59. The project preparation team ensured that the project design was closely aligned with the BESRA (2006-2010), MTPDP and the Bank’s 2006-2008 CAS. Project preparation started with a pre-identification mission in February 2005, followed by two additional missions prior to the project’s approval in June 2006. During preparation the Bank team also used a PHRD grant to conduct studies to inform project design which included: (i) a review of the SBM framework implemented in earlier projects, (ii) an assessment of FM, and (iii) a review of teacher competency standards. The PHRD grant was also used to inform the BESRA by supporting several analytical pieces including: (i) a Medium Term Spending Plan; (ii) four Education Policy Notes on improving quality, improving teacher development, SBM, and improving equity; and (iii) a retrospective on education reform – which looked at why education reforms failed in the past that were eventually incorporated as lessons learned in the BESRA. BESRA was also supported by the Bank’s extensive AAA work such as the Retrospective Analysis on Philippine Education Reforms and the Education Policy Notes which analyzed major issues in the sector and undertaken in collaboration with key stakeholders. Key innovations like SBM and systemic reforms including procurement also provided the base for the formulation of the system wide reform program. The design team organized a series of workshops for and with the Government (including DepEd, DBM, NEDA and DOF) to formulate the BESRA. Once BESRA was finalized, the NPSBE components were then selected based on the BESRA key reform thrusts, hence the project was aligned with the BESRA components. 60. The Bank team included the appropriate technical specialists to develop the project. The team also actively engaged the Technical Coordinating Team of DepED through workshops and discussions on the design, content, and implementation arrangements of the project. Consultations were held with oversight agencies of the government as well as other donors, who expressed interest in re-aligning their projects with the BESRA and explore opportunities for co-financing and technical assistance. The development objectives, monitoring indicators and line items to be financed by the project were also discussed and agreed upon, and were in line with the overarching objectives of the BESRA. The Bank, working with the government, incorporated mainstreaming of project implementation into the daily responsibilities of DepEd’s

23

central, regional and division staff. It also incorporated the use of country systems of procurement and financial management, which was initiated in our SEMP projects. These projects were implemented by DepEd using regular/organic staff and DBM ensuring the institutionalization and mainstreaming of policies/programs, and building implementation capacity and management oversight of implementing agencies. The project underwent a thorough QER process and the project team included the recommendations. The results framework was aligned with the BESRA but the initial targets established were too ambitious. (b) Quality of Supervision Rating: Satisfactory 61. As previously mentioned, there were nine Bank review and implementation support missions from the period September 2007 through March 2012, with a final BESRA review mission in August 2012. The project team was actively engaged in supporting the government in its efforts to implement the project. The country-based team comprised the appropriate technical experts and missions always included fiduciary and safeguards staff, as well as civil works, data management, teacher development and school-based management consultants when appropriate. 62. In July 2007, AusAID gave an AUD 41 million trust fund (Support to Philippine Basic Education Reforms – SPHERE), in support of BESRA and to complement the NPSBE activities. The trust fund was to be administered by the Bank. Once the trust fund was provided, all subsequent missions were conducted jointly with AusAID representatives and technical experts. Other donors such as GTZ, ADB, JICA, UNICEF and USAID also participated in select missions. This attests to the efforts made by the Bank supervision team to implement the project in a participatory and inclusive way, and which ultimately helped streamline donor interventions in the education sector in support of the BESRA. The team also used the SPHERE trust fund and the Bank’s programmatic budget to help the Government address challenges in implementing the NPSBE components as well as the BESRA through several just-in-time technical assistance and analytical work. Key to the project’s ultimate achievements is the task team’s presence on the ground, which allowed for a constant and open dialogue with government counterparts and donors. The access to the Bank’s expertise and technical assistance was repeatedly mentioned by the government as having had an important impact on their day-to-day work. The Bank team based in the country proved particularly crucial to resolving bottlenecks and accelerating implementation during project start-up and led to the project being 100 percent disbursed by the closing date. (c) Justification of Rating for Overall Bank Performance Rating: Moderately Satisfactory 63. Based on the Bank’s quality at entry, the supervision discussion, and project outcomes above, overall Bank performance is rated moderately satisfactory.

24

5.2 Borrower Performance (a) Government Performance Rating: Moderately Satisfactory 64. The government, through its various departments and commissions, provided the necessary technical and financial support to DepEd to ensure implementation, and showed its commitment to and comprehension of the project’s objectives. The Department of Budget and Management, through the General Appropriations Act, maintained the budget line items of SBM, the school accreditation program, hardship allowance, ALS, and policy formulation, program planning and standards development for elementary education. The COA reviewed DepEd’s financial statements regularly and provided its opinions in a transparent way. The National Economic and Development Authority prepared the 2011-2016 “Philippine Development Plan” that included support for ALS and CCT. While the various government agencies supported the NPSBE and BESRA, some decisions hampered project performance such as: (i) delays in implanting eNGAS after its development in 2001, culminating in a temporary suspension in 2008; (ii) re-institution of selective pre-audits of cash advances and school construction; and (iii) delays in Special Allotment Release Orders or Notice of Cash Allowance for some key budget items. Based on this, the government’s performance is rated Moderately Satisfactory. (b) Implementing Agency or Agencies Performance Rating: Moderately Satisfactory 65. DepEd, through its various bureaus and technical working groups, continued its support for the implementation and operationalization of the project and the BESRA. As mentioned previously, DepEd was able to address bottlenecks that hampered implementation and reached 100 percent of disbursement by project closing. As part of the BESRA, it was able to roll out and institutionalize school-based management, promote teacher quality and standards development, significantly increase the teacher workforce to deal with the influx of new students, and promote all-inclusive education for minorities (see Annex 2 for complete list of achievements). These are impressive accomplishments. However, throughout implementation financial management and procurement issues slowed implementation, and adherence to reporting requirements was delayed during the first half of project implementation. Based on these implementation issues, DepEd’s performance is rated moderately satisfactory. (c) Justification of Rating for Overall Borrower Performance Rating: Moderately Satisfactory 66. Based on the implementation analysis above, overall Borrower performance is rated moderately satisfactory. 6. Lessons Learned Lesson 1. The institutionalization of reforms requires a long-term commitment on the part of government and the donor community to support the reform agenda.

25

DepEd has remained committed to BESRA for eight years. The sustained commitment has allowed for the key areas of decentralization, professional development, learning strategies, access to education and organizational development to move forward. It addition, it has allowed the government to coordinate donor support around the BESRA which has also contributed to the continuation of the reform agenda. DepED has gathered lessons learned from implementation of the reform programs related to the five KRTs and is now integrating those lessons into the BESRA. These lessons are now paving the way for DepEd to take a more integrated approach to the reform agenda outlined within the BESRA. Lesson 2. SBM is an important tool for decentralizing an education system and improving learning outcomes. SBM has had a substantial impact on the improvements at the school level throughout the Philippines. Schools are now systematically preparing SIPs, schools have governing councils and school report cards; and they have been oriented to simplified accounting procedures. There is solid evidence from the recent SBM impact evaluation that schools with SBM experience improved achievement. While SBM systems are in place there is still some work to be done in terms of the strengthening of the roles of the governing councils specifically as they relate to accountability as well as increasing community participation. Lesson 3. Public private partnerships are important for ensuring the long-term availability of adequate resources to support community schools. The introduction and institutionalization of school-level planning and decision making has had positive effect on their ability to raise funds from the private sector in support of their school needs. Especially in cases where government assistance is not sufficient to address all the needs of a school, securing additional funds to leverage government assistance can have a positive effect on school functioning and performance. Schools now have their SIPs to keep communities informed of school needs. Again, it will take more time for the private sector to become fully engaged but systems are now in place through the support of the NPSBE. Lesson 4. Solid analytical studies on system reforms during the implementation period are essential for making appropriate decisions on the elimination of bottlenecks to the reform agenda. With support from the NPSBE, SPHERE, Bank, AusAID and other donors, there was an on-going attempt to provide real time evaluations and studies to inform the implementation of the BESRA. Joint supervision missions identified problems and then mobilized the resources to study the issues and provide recommendations to DepEd on needed policy changes to improve the system. In many instances DepEd made the needed changes that led to improved implementation. Lesson 5. Strong financial management systems are critical for ensuring the efficient use and accounting of resources. Lack of a fully functioning financial management system led to reporting delays and audit problems for the BESRA and NPSBE. Once the eNGAS is fully institutionalized the reporting problems should improve. However, there is still need for increased utilization of the eNGAS system.

26

Lesson 6. A report-based disbursement system is more efficient than a Statement of Expenses disbursement system for a large education bureaucracy. The DepEd covers approximately 46,000 schools, 500,000 teachers, 19 million students, and 200 divisions. The use of statements of expenditures for withdrawal application was cumbersome and slowed implementation. The new Bank-supported LEAPS project will use disbursement linked indicators in an effort to reduce the number of required financial transactions. Lesson 7. Bank support can play an important role in leveraging money for government policy reforms. The NPSBE project was a small percentage of the overall education however, it was very important for leveraging other donor assistance for the BESRA and moving the reform agenda forward. The drawback to developing projects that support a national level program is that often the projects need to adopt the national targets which could be too ambitious for an individual project. This was the case for the NPSBE. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies See Annex 7 for Borrower portion of the ICR. (b) Cofinanciers Not applicable (c) Other partners and stakeholders Not applicable

27

Annex 1. Project Costs and Financing

(a) Project Cost by Component (in USD Million equivalent)

Components Appraisal Estimate

(USD millions)

Actual/Latest Estimate (USD

millions)

Percentage of Appraisal

Component 1: Strengthen school-based management

71.00 54.26 76.42

Component 2: Improved teaching effectiveness

23.00 8.23 35.78

Component 3: Enhanced quality & equity trough standards, assessment and support

96.00 136.51 142.20

Component 4: Effective resource mobilization.

2.00 0.50 25.00

Unallocated 7.50 Total Baseline Cost 199.50 199.50 100.00

Physical Contingencies 0.00 0.00 0.00 Price Contingencies 0.00 0.00 0.00

Total Project Costs 199.50 199.50 Front-end fee IBRD 0.50 0.50 100.00

Total Financing Required 200.00 200.00 100.00 (b) Financing

Source of Funds Type of

Cofinancing

Appraisal Estimate

(USD millions)

Actual/Latest Estimate

(USD millions)

Percentage of Appraisal

Borrower 0.00 0.00 0.00 International Bank for Reconstruction and Development

200.00 200.00 100.00

28

Annex 2. Outputs by Component Component 1: Strengthened School-Based Management (SBM) (US$71 million). 1. This component is designed to support the implementation of school-based management (SBM), legislated in The Governance of Basic Education Act of 2001 (known as RA 9155), with the primary target group being the school and its community. Four subcomponents were developed to support component 1: (i) develop school-community partnerships; (ii) establish a structure of support and accountability; (iii) capacity building; and (iv) ensure quality and equity at the school-level. 2. Sub-component 1.1: Develop school-community partnerships. The following activities were to be supported: (i) fostering mechanisms for forming school-community partnerships18 for all schools/school clusters; (ii) developing corresponding policies and guidelines to support the new mechanisms; (iii) providing School First Initiative grants19 to help schools establish SBM; and (iv) establishing mechanisms to pursue enhanced school representation on local school boards with the intention of influencing and monitoring the use of the Special Education Fund (SEF).20 3. The following indicators were used to track progress: (i) schools/clusters with a SIP; and (ii) schools/clusters meeting SBM criteria, which were both exceeded. Schools/clusters with SIP stand at 90.76 percent compared to the 80 percent target, while 81 percent of schools meet SBM criteria compared to the 75 percent target. The achievement of the outputs is as follows: (i) the government has put in place an effective way to establish a participatory mechanism that involves School Governing Councils, Parent-Teacher Associations, local government officials (i.e. Barangay captains, mayors, municipal counselors etc.) and student council members; (ii) school first grants were provided for the establishment of SBM and now 90.76 percent of schools use SIPs, which is an indication of the institutionalization of SBM; and (iii) SEF funds are collected and allocated to schools albeit with uneven practice. The SEF funds are to be distributed 100 percent to schools to fund activities included in the SIPs. However, local governments and communities are not completely active in the development of SIPs, which limits their understanding of school needs and impacts the distribution and use of the funds. Local governments also have, in some cases, not distributed the funds only to schools. To clarify the utilization of SEF funds, an inter-agency committee, which included DepEd, drafted a joint memorandum circular on the proper use of SEFs which should remedy this issue. Furthermore, the SBM approach continues to be strengthened and is expected to improve over time, leading to increased proper use of SEFs. In 2011, 13,025 schools had received SBM grants and by project closing, 100 percent of the US$25 million allocated

18 For instance School Governing Councils or Parent-Teacher-Community Associations, use of School Improvement Plans (SIPs), schools reporting to their communities, etc. 19 “School First Initiative” grants were renamed after project approval to become “SBM grants”. 20 The SEF funds are earmarked for education from the local taxes. This fund is designed to be 1 percent of the annual taxes collected at the local level.

29

for SBM had been disbursed. Further achievements under this sub-component included the establishment of the SBM mechanism and SIP implementation. 4. Sub-component 1.2: Establish a structure of support and accountability. This sub-component focused on: (i) supporting a guaranteed School-level Maintenance and Other Operating Expenses (MOOE) allocation to schools with progressive increases based on school needs, equity, and performance 21 against SIPs. To be eligible to manage MOOE funds schools had to meet prescribed readiness criteria.22 Indicators to track progress were: (i) proportion of schools receiving an MOOE allocation at the school level; (ii) schools/clusters eligible to receive school grants; and (iii) schools/clusters with adequate FM systems. 5. The targets for the outputs were exceeded: (i) all high schools considered to be implementing units (i.e. who have FM staff) and all elementary schools and the rest of the high schools (released through the divisions) received the school MOOEs. In an effort to make the MOOE allocation more equitable, in 2012, DepEd implemented an equity-based formula formulated in 2011.23 At the same time, the DepEd allocation for MOOEs had more than tripled. In 2013 alone, the MOOE allocations have increased from Php 9 billion to Php 12 billion. This was the result of the project having successfully mobilized additional analytical support that showed the importance of MOOE to schools. Beneficiaries indicate that MOOEs are a critical element to ensuring proper functioning of their schools. There are a small number of schools that have indicated they are not collecting their MOOE allocations. To mitigate any potential distribution issues related to MOOE, DepEd is now listing MOOE allocations on its webpage for full transparency.24 Other indicators show that 76 percent of schools/clusters are eligible to receive school grants, exceeding the target of 65 percent. Furthermore, 88 percent of school heads have been trained in Simplified Accounting Procedures (SAP), and have adequate financial management systems in place, exceeding the 65 percent target. In additional to these achievements, DepEd received technical assistance and financial support from AusAID to develop a Financial Management Information System (FMIS). This system had to be put on hold pending the development of the government wide FMIS.

21 This statement does not reflect the reality on the ground: MOOE were never allocated based on school performance, but could be utilized to finance activities included in the SIP. Therefore, the ICR is not including the project’s compliance with “MOOE allocation based on school performance” in its analysis. 22 For instance, a mechanism for partnership and shared decision-making with the community, a functional SIP, an acceptable system for financial accountability, a school head trained in SBM, and a strategy for reporting to the community. 23 The study on the equitable allocation of MOOE considered the variables that will capture the size of the student clientele (i.e., school population), the socio-economic status of the locality (e.g., the level of SEF extended to basic education) where geographical and income concerns can be taken into account, and the education performance of the locality (e.g., a composite index of participation, completion and achievement) 24 Beneficiaries have reported a few reasons for not collecting or receiving the MOOEs. These include: (i) capacity constraints with the liquidation of funds, (ii) insufficient MOOE allocations for small schools making travel to collect the funds more expensive than the actual MOOE allocation; (iii) divisions resistant to decentralizing funds management to schools; etc.

30

6. Sub-component 1.3: Capacity building. Funding was meant for: (i) training to develop the capacity of school heads to operate effectively in a decentralized and self-managing school environment; and (ii) capacity building at regional and divisional levels through formal and on-the-job training. 7. Progress was measured through the indicator “schools/clusters where school heads have been trained on SBM”. The target was exceeded with DepEd reporting that 96.61 percent of school heads were trained on SBM surpassing the target of 85 percent. Capacity building activities on SBM implementation have been successfully carried out at the different levels of the education system through trainings and orientations to strengthen their ability to effectively play their respective roles in a decentralized environment. This is a remarkable achievement. However, there exists a need to continue to clarify the SBM approach and provide technical assistance to all school heads, teachers and other stakeholders to maximize the benefits of this tool, and to avoid it becoming just another processing step. 8. Sub-component 1.4: Ensure quality and equity at the school-level. This sub-component aimed to: (i) devising a mechanism (e.g., a School Report Card - SRC) for the school to report to its community on levels of inputs and outputs/outcomes and help ensure progress toward nationally defined standards; (ii) tracking and assisting students at risk, based on strategies developed and tested in the Philippines by UNICEF’s Child Friendly School (CFS) Program; and (iii) using feedback on national assessment data to improve teaching and learning. 9. The indicators used to track progress were: (i) schools/clusters using SRCs and (ii) divisions engaged in tracking students at risk. These indicators have also been exceeded, with 97.85 percent of schools using the revised SRCs against the 75 percent target, and 90.21 percent of divisions tracking students at risk compared to the 33 percent target.25 In addition, the National Achievement Test is being used to inform teaching and learning practices through in-service teacher training, classroom observations and the Teacher Strengths and Needs Assessment (TSNA). 10. Although the targets have been exceeded, there are still some areas for improvement as DepEd begins to consolidate lesson learned from implementation of SBM. SBM components are interlinked with schools developing a SIP, a SRC and receiving training in SAP. While SBM has made great progress, some schools still have a limited understanding of how these components are interlinked. Without the SIP and SRC, schools experience limitations in their ability to respond to the community and stakeholders about school performance. It also affects their capacity to make well-informed, evidence-based school management decisions. It will take more time for the full institutionalization of SBM and its components, however, as the indicators show, there has been much progress under the NPSBE. There has also been an increase in the

25 The indicator combines “students at risk of dropping out – SARDO” and “pupils at risk of dropping out – PARDO” to capture both formal and non-formal learners.

31

number of schools tracking students and pupils at risk of dropping out. This improved system has provided the government with relevant information to allocate appropriate resources to schools and programs that support at-risk students and pupils. This process is expected to be greatly facilitated by the government’s introduction of the “Learner Reference Number”, a unique number assigned to each learner whether enrolled in formal or non-formal education programs. Component 2: Improved Teaching Effectiveness (US$23 million) 11. This component focused on improving teaching effectiveness by refining current work on teacher competency standards, and then applying the standards to performance appraisal, training needs, promotion, hiring practices, pre-service training and licensing. A second aspect was to achieve a more equitable distribution of teachers by applying principles identified by DepEd for their deployment. The target group for Component 2 comprises basic education teachers, including those working in the Alternative Learning System Program (ALS). Two sub-components were developed: (i) pilot implementation of professional standards for teachers and (ii) teacher deployment. 12. Sub-component 2.1: Professional standards for teachers. A framework for defining national competency-based teacher standards had been developed by the DepEd’s Teacher Education and Development Program (TEDP). The NPSBE was to support: (i) the trial of these professional standards for teachers and their application to performance appraisal at a local level; and (ii) the application of professional standards to division hiring practices, and to bring pre-service teacher training into line with competency-based standards. 13. Indicators to track progress included: (i) percent of teachers by division meeting defined competency-based standards; (ii) teacher performance standards developed and agreed; (iii) divisions where CBTS is used in at least 50 percent of schools; (iv) CBTS applied to pre-service training; (v) CBTS used in promotion and hiring; and (vi) number of training materials delivered to schools and numbers of in-service programs delivered by region to achieve competency-based standards for teachers. This sub-component has been partially achieved: (i) 100 percent of teachers have been assessed against competency-based standards, and assessment results used to develop the “Individual Plan for Professional Development” (IPPD) and the School Plan for Professional Development (SPPD); (ii) teacher performance standards have been developed, agreed and rolled out, including a three-year training and development plan for all regions; (iii) 175 divisions or 38,033 schools reported that they actively apply NCBTS-TSNA as well as the IPPD toolkit; (iv) approximately 90 percent of teacher education institutions have included NCBTS in their curriculum; and (v) DepEd has issued an order mandating the use of NCBTS for hiring and promotion purposes, including recognition of on-the-job experience by Mobile and ALS teachers. 14. To facilitate the collection and analysis of competency data in the future, DepEd has piloted the “Competency-based Performance Appraisal System for Teachers – CB-PAST”. Even though no specific data exists on the number of training materials and in-service programs having been delivered, field interviews and discussions with local

32

DepEd officials confirm that numerous trainings have been carried out and materials provided. 26 Given the recent introduction of NCBTS and TSNA, the utility and application of these two tools is yet to be fully institutionalized. Some teachers are still not preparing individual professional development plans based on the competencies and some school development plans do not include teacher training needs. While the NCBTS has been developed, there is a need to ascertain the extent to which teacher training institutions follow the competency-based approach in their classrooms. At the time of the ICR, the national information system that could track resources and trainings provided has yet to be put in place. This hampers DepEd’s ability to track activities and collect valuable information resulting from such trainings. DepEd, with AusAID support, has piloted a “Training and Development Information System” (TDIS) in Regions 6, 7 and 8, which includes an inventory of training, research and development activities conducted at the regional levels and features an e-consolidation tool to align the TSNA with this new information system. 15. Sub-component 2.2: Teacher deployment. This component aimed at addressing factors that hinder equitable deployment of teachers especially to hard-to-reach areas and limited mobility in the education system. Despite DepEd’s efforts to remedy the deployment issue through specific orders, significant imbalances remained and more aggressive deployment decisions were needed. The project sought to: (i) develop guidelines for five-year rolling plans for staffing within divisions (including the option of using a refined formula-based GAA teacher allocation system); (ii) finance hardship allowances (already in the DepEd budget) for teachers required to move to designated hard-to-staff schools; (iii) eventually cover transfer costs or support incentive schemes to attract teachers to hard-to-staff locations and also to attract teachers in hard-to-staff subjects such as Mathematics and Science; and (iv) support the development of policy changes so that new teacher appointments and transfers are no longer tied to schools. 16. Indicators to track this component were: (i) 5-year staffing plan devised for allocation and redeployment of teachers; (ii) percent reduction of teachers in excess and percent reduction in schools with teacher shortage, by division; (iii) improved equity in pupil/teacher ratios; and (iv) strategies devised for teachers’ compensation, incentives and benefits. This sub-component has been partially achieved: (i) a 5-year staffing plan has not been developed; (ii) no data was available at the time of the ICR but overall number of excess teachers have decreased (see paragraph 18); (iii) the mean pupil/teacher ratio in SY2011/12 was at 37:1 for public schools, and data shows an improvement of the pupil-teacher ratio of the top 25 percentile point of the respective distribution, which showed a decreased pupil-teacher ratio from 43:1 to 40.37:1 in elementary and from 45:1 to 42.03:1 in high school; and (iv) incentive schemes have been developed, including the revision of hardship allowance guidelines and amounts.

26 DepEd did carry out an inventory of in-service training programs having been provided but no detailed information was available at the time of the ICR.

33

17. Although a 5-year staffing plan was not developed, DepEd continues to use a color-coded scheme and the results of the NCBTS-TSNA to identify staffing needs and hire additional teachers. In fact, all teacher positions provided by the DBM in 2012 have been filled and an additional 61,000 have been allocated for the 2013 fiscal year. Furthermore, the project helped mobilize support to identify causes for deployment delays, which found political interferences and non-DepEd related administrative delays as some of the main reasons. This analysis led to policy changes and ultimately a reduction in the time it takes to send a teacher to his/her posting from a maximum of two years to six months, which is a substantial efficiency gain. However, some regions continue to report difficulties in filling teacher vacancies. To address these issues, the government has increased the hardship allowance amounts, and introduced a transfer allowance on a pilot basis. As a result, the percent of excess teachers has decreased from approximately 78,000 in SY 2003/04 to 35,500 in SY 2009/10. Another step was the revision of its incentives schemes, which included merit increase criteria, performance incentives and hazard pay. These revisions, together with the CBTS, have positively contributed to the application of merit-based hiring, promotions and compensation; facilitated the transfer of teachers; and promoted the application of quality standards. Component 3: Enhanced quality and equity through standards, assessment and support (US$96 million). 18. First, the NPSBE aimed to support the development of nationwide standards for key learning areas based on the Revised Basic Education Curriculum (RBEC). Standards would also be set for inputs (such as classrooms, textbooks, student readiness, community participation, and MOOE). Second, under the Quality Assurance framework, support was to be provided to assist achievement of the standards through financing teacher in-service training, key textbooks, teaching materials and classroom construction and rehabilitation. Third, a comprehensive Information Communications Technology (ICT) framework was to be developed to encompass, for example, teaching and learning, management information, financial accounting, human resource management and results of student assessment. 19. Sub-component 3.1: National Standards Framework: National strategies would be developed and implemented to support the teaching of English, the Filipino language, and mathematics and science, and standards developed based on the Revised Basic Education Curriculum. These standards were to be incorporated into existing teacher support materials, teacher professional development, and the national assessment. 20. Indicators used to measure progress were: (i) national strategies and action plan (including teaching materials) implemented; (ii) English proficiency for teachers improved; (iii) student achievement standards defined; and (iv) schools receive feedback from the national assessment. This sub-component has been met: (i) the government has developed teaching and learning strategies in English, mathematics and science as well as introduced the following three major strategies affecting basic education: (a) the universalization of Kindergarten through the introduction of the “Kindergarten to Grade 12 Program (K to 12)”, making it officially part of the basic education cycle, hiring and training teachers and the development of a Kindergarten curriculum; (b) the revision of

34

the entire basic education curriculum content and framework to accommodate the K to12 and revised ALS programs, the grades 1 – 10 learning competencies, and the development of an assessment framework; (c) the piloting of MTB-MLE in 20 national languages in 921 schools nationwide, accompanied by the development of supporting materials for teaching and learning in the 12 main languages, basic literacy materials for indigenous peoples as well as training programs for 2,557 Kindergarten and grade 1 teachers in MTB-MLE teaching methodology; and (d) the distribution of approximately 16.5 million textbooks and teachers manuals for high school English, mathematics, social sciences and science and technology (financed under sub-component 3.2); (ii) the administration of the “English Proficiency and Process Skills” for teachers to inform in-service teacher training and strengthen their English language skills; (iii) a policy is in place that defines student achievement standards, which was revised as part of the K to 12 program to include the additional two years of high school; and (iv) schools receive feedback through their division offices or can access the results of the National Achievement Test (NAT) on the National Educational Testing and Research Center’s (NETRC) website. The different test results and assessment outcomes are also used to adjust DepEd’s annual in-service teacher training programs, adjust teachers’ TSNA results as well as update/complement instruction materials. 21. In addition to these achievements, the government introduced a unified schools standards assessment tool that is applicable to both elementary and high schools (Philippines Accreditation System for Basic Education – PASBE), facilitating the level of compliance with service standards by schools nationwide. The government has also increased financial and technical support for its equity-based interventions (Alternative Learning Modes and Alternative Learning Systems) to keep at-risk children from dropping out. 22. Although school feedback is being provided, there still exist some difficulty in fully aligning test results with teacher improvement and capacity strengthening activities. 23. Sub-component 3.2: Quality Assurance Framework: The NPSBE was to finance the development of explicit national standards for (a) inputs including physical infrastructure, staffing (see 2.2), curriculum, textbooks, instructional materials, school management, student readiness, community partnership, and financial support; and (b) outcomes including participation, completion and student achievement as measured by national assessment tests. 24. Indicators to track progress were: (i) all regions monitor performance and report to DepEd on performance improvements; (ii) annual report from regional offices summarizing their work with divisions and supervisors to support schools not achieving outcome targets; (iii) national standards framework developed for inputs (minimum service standards) and outcomes (participation, completion, achievement); and (iv) divisions and schools received feedback from EMIS.

35

25. This sub-component has been met: (i) performance reporting is made available in real-time through the enhanced Basic Education Information System (e-BEIS), which includes school-level data;27 (ii) all 17 regions provide progress reports to DepEd on their regional performance as well as technical assistance provided to their own divisions;28 (iii) the adoption of the “Quality Assurance and Accountability Framework – QAAF” in 2010, along with the roll-out of PASBE, laid the foundation for re-defining school input standards (including textbooks, school infrastructure, teachers, teaching materials etc.). Output standards have also been developed as part of the Education for All National Plan for Action and the Millennium Development Goal commitments of the government, and revised during the preparation of the 2011-2016 Philippine Development Plan; and (iv) the roll out of the e-BEIS nationwide has allowed central offices to upload the information they received from schools on enrollment, dropouts, graduates etc., allowing schools to access the information directly or for divisions to download and share the information with their respective schools. This exceeds the target of 75 percent of divisions receiving EMIS feedback. Furthermore, the project has supported the rehabilitation of 13,659 classrooms and constructed 4,813 new ones, and financed the acquisition and distribution of approximately 16.5 million textbooks and teachers’ manuals in social science, English, mathematics and science and technology.

26. To support the tracking of adherence to the established standards, DepEd29 is setting up a harmonized monitoring and evaluation system to combine the different systems that were developed by different donors and government agencies. The government, with AusAID support, has also embarked on an effort to harmonize the different performance frameworks to come up with a unified outcomes framework to facilitate DepEd’s ability to evaluate its products and services and lead to a “National Policy for Monitoring and Evaluation”. In addition to the e-BEIS, the government is developing additional information systems30 in the areas of human resource management, learning materials and financial management, which is expected to further support the government’s ability to make informed policy and resource allocation decisions. 27. Sub-component 3.3: ICT Policy. The NPSBE aimed to support the further development, communication, and application of the framework to cover uses of ICT in

27 Regions use “Budget Execution Documents – BEDs” and Budget Accountability Reports (BARs), which report on the financial versus physical outputs of each government entity, and is used to inform/adjust financial and physical targets (as reported in the annual Agency Performance Monitoring Framework). 28 A mechanism for systemizing the provision of technical assistance by regional offices to divisions has been established and is expected to contribute to the improvement of the “Regional Education Development Plan – REDP. Three pilot regions (Region 6, 7 and 8) have institutionalized a “Regional Monitoring Evaluation and Adjustment – RMEA” process, which feeds into REDP and which is expected to be rolled out nationwide. 29 The World Bank provided training to 48 DepEd central office staff in impact evaluation and 181 DepEd central and regional staff on how to set up a proper M&E system. 30 The additional systems are: (i) “School Information System”, which will be integrated into the “Learner Information System” and which currently holds information on 20 million learners nationwide; (ii) “Human Recourses Information System”, currently on hold due to plans to roll out a different system; (iii) “Learning Resource Materials Development System”, (iv) “Asset Management System” and (v) “Project Monitoring Information System”

36

ways that promote the BESRA, including teaching and learning; student assessment and feedback; professional development including e-learning modules for school heads and teachers; management information; human resource management; communication including e-mail, DepEd orders and other DepEd website information; QA monitoring; document tracking; and financial monitoring. 28. Progress was measured by: (i) ICT policy framework developed; and (ii) policy implemented. This sub-component has been met: an ICT policy was developed and in place by year 1 of the project, and subsequently updated in 2011. This was done as part of DepEd’s push to maximize the potential of ICT for attaining the country’s basic education goals (teaching and learning, student assessment, human resource management, professional development, etc.). Part of the revised ICT framework is the development/implementation of the information systems mentioned under sub-component 3.2, as well as the “ICT for Governance” system to facilitate collecting, archiving and analyzing data for a more transparent and efficient bureaucracy. 29. Component 4: Effective Resource Mobilization (US$2 million). NPSBE provided support to policy development on strategic budget planning through multi-year estimates for a simplified budget encompassing' fixed and recurrent costs plus financing for key sector-wide reforms. 30. Sub-component 4.1: Financing framework and budget process. The NPSBE supported: (i) a follow-up of work already completed under the Spending Plan to provide a rational and realistic appraisal of education system needs in line with the BESRA reform agenda; (ii) the promotion of strategies to expand the LGU contribution to basic education and to link it with local priorities and assessed needs as defined by schools and their communities in their SIPs. 31. This sub-component was tracked through the following sub-components: (i) percent increase in SEF and increased proportion flowing to school-led priorities; (ii) cost sharing between GOP and LGU applied to classroom construction, including equity factors; and (iii) financing framework developed. This sub-component has been met: (i) even though no recent data was available, 2001 – 2008 information shows that SEF funds have steadily increased by an average of 8.5 percent annually, and beneficiary feedback confirms that funds are being transferred to schools to finance school improvement activities; (ii) project-financed classroom construction was done with buy-in and contributions (in-kind or cash) by the local stakeholders and based on the “Statement of Interest”; and (iii) in line with the BESRA/K to12 Program, the 2012-2017 “Medium-Term Spending Plan for Basic Education” was finalized, which provides a realistic initial assessment of the education system needs and includes an analysis on cost requirements for the K to 12 program. As part of its financial management strengthening initiative, the development of a “Financial Management Information System” (FMIS), was initiated and is being funded by AusAID. 32. Although there is evidence that SEFs are being transferred to most schools, some report these funds are not always being provided in full or in line with the school’s priorities. Therefore, an inter-government agency circular in 2011 was formulated and is

37

currently being discussed, which would provide for the use of the SIP as basis for resource allocation and reporting on the utilization of the SEF. This would also represent an important addition to the support already being provided through SBM grants and MOOE. Furthermore, delays in developing the FMIS and Financial Management Operations Manual have hampered improvements in the control environment of DepEd. 33. Sub-component 4.2: Demand-side financing. DepEd currently administers a few national programs to support needy communities and to encourage student participation, retention and completion in basic education. In other cases, local communities respond to demand-side financing through corporate, NGO or other support. The project aimed at supporting: (i) a review of current schemes on demand-side financing; (ii) development of guidelines for effective demand-side financing of basic education in the Philippines; and (iii) finance school feeding programs or similar initiatives at a later stage. 34. The following indicators tracked progress of this sub-components: (i) demand-side financing mechanisms introduced to support needy students and their families; and (ii) percent of schools by division providing assistance for needy students from (a) national programs; and (b) local sources.

35. The sub-component has been met: (i) the government, with donor support, conducted reviews of several of its demand-side financing schemes, which led to: (a) the elimination of the “Food for School” program;31 and the subsequent development of a revised, government-led school feeding program, which was approved for reimbursement under the project and which provided guidelines for all future school feeding programs; (b) the expansion of the “Education Service Contracting - ESC” scheme – see sub-component 4.3; and (c) the introduction of new programs such as the “Conditional Cash Transfer - CCT” program32, which is the government’s flagship program in terms of demand-side financing and provision of support to needy students and families; and (ii) 42 percent of public schools participate in the CCT program.

36. The project also ensured a strong link and coordination existed between the demand-side interventions provided under the CCT program and the supply-side

31 In its place, the NPSBE supported a small school feeding program pilot that worked through schools and supported school based management reforms. The pilot, in 3 provinces, provided grants to schools to organize a school feeding program and was focused on areas where levels of malnourishment were high. The pilot gradually expanded and the number of beneficiaries increased from approximately 23,000 in 2010 to 40,000 in 2013. 32 The program is also referred to as the Pantawid Pamilya Pilipino Program, or “4Ps program”, which provides financial incentives for students to stay in school and also includes a school-feeding component as well. The age eligibility criterion to benefit from the 4Ps program has been adjusted upwards to reflect the fact that many beneficiaries include overage children and therefore graduate at a later age. The program was developed on the basis of extensive Bank technical assistance to the government and analysis, leading to the piloting and subsequently nationwide expansion of the CCT program. DepEd has also committed Php 988 million for 2012 for the construction of 1,452 classrooms and the hiring of 600 teachers in the 4Ps areas.

38

interventions provided under the project. Although no information is available on the percentage of schools supporting needy students from local sources, DepEd has expanded the use of SBM grants for school-feeding purposes if included in their SIPs. Furthermore, DepEd has reintroduced its own school-feeding program targeting food-poor schools through the “Vegetable Gardening in the School - Gulayan sa Paaralan”33 program. Although no new guidelines for effective demand-side financing of basic education were developed during the life of the project, existing ones such as the ESC were reviewed and subsequently improved. 37. Sub-component 4.3: Private sector participation. This sub-component focused on private sector participation in basic education initially through expansion of the existing Education Service Contracting (ESC) scheme at the high school level, and subsequently through extension of the scheme or an alternative option to include elementary schooling, pre-schooling, and Alternative Learning System (non-formal education) for those who have not completed a full cycle of basic education. The project was to support: (i) the financing of a review of Government Assistance to Students and Teachers in Private Education (GASTPE) and alternatives; (ii) assistance with the development of a policy and regulatory framework for local private sector involvement; and (iii) expansion of PPP schemes of various types, including ICT partnerships 38. Only one indicator was used to track progress: “private sector participation policy reviewed”, which was achieved: A “Roadmap for Basic Education” was developed by the private sector led by the League of Corporate Foundations in collaboration with the DepEd and the WB which has helped align private sector support for basic education with the BESRA key reform thrusts. This is an organic document and being reviewed and refined on a regular basis. Furthermore, the ESC scheme, which is under the “Public-Private Partnership” (PPP) umbrella, was reviewed in 2010 and found to be cost effective. This resulted in an increase of the ESC program budget allocation from Php 5.8 billion in 2010 to Php 6.3 billion in 2011 to Php7 billion in 2013, and an increase in the subsidy of Php 6,500 (up from Php 5,000) per student in high school for SY 2012-2013. Based on M&E data, DepEd was able to assess the effectiveness and cost-efficiency of its service contracting programs in the different levels and adjust funding for less effective and cost-efficient programs. 39. Furthermore, support was mobilized for: (i) the government to review the Education Service Contracting Program under the GASTPE, which guided the formulation of a new DepEd order on GASTPE for SY 2010-2011 and 2011-2012; (ii) the expansion and/or improvement of some of the Alternative Delivery Mode schemes including the “Open High School Program” (an alternative learning program) for SY 2012-2013, (iii) the government to establish a regulatory framework on private sector involvement; and (iv) the expansion of the number of PPP such as the “Adopt a School Program” for Php 921 million worth in pledges, the “Ten Moves!” program to help build 10,000 classrooms and the “PPP for School Infrastructure Project” to build 9,332 new

33 This program was developed by DepEd and in partnership with the Department of Agriculture.

39

classrooms under a Build-Lease-Transfer program. Apart from infrastructure PPPs, DepEd is currently working with the Asian Development Bank on schemes to support the delivery of the Senior High School program. These PPPs are ongoing and have resulted in a very significant increase in resources available for schools.

40

Annex 3. Economic and Financial Analysis 1. The economic rationale for the NPSBE is based on the expected payoffs of support to BESRA reforms in terms of accelerated economic and social development, improved efficiency and lower inequality. These payoffs will result from increased access to good quality basic education which has been shown to raise economic growth rates and improve other development outcomes. The NPSBE contributes to the broader BESRA reform agenda by supporting a number of measures to increase basic education access and quality as well as strategies aimed at making public education investments more cost-effective. 2. The economic and financial analysis in the original PAD did not contain a calculation of the overall project economic rate of return. The economic and financial analysis of the ICR focuses on assessing the extent to which public investment in education increased and how the efficiency of the system has changed. It also compares project costs with a number of alternatives and where possible assesses the cost-effectiveness of the reforms that were supported. 3. The reform program introduced in 2006 was underpinned by significant increased public education spending. This reversed a decline in public education investment in the early 2000s and supported a significant expansion in basic education enrolments. 4. The NPSBE encouraged increased investment in areas that were important to the success of the reform agenda (e.g. the rolling out of school based management reforms, classroom construction and textbook provision). The analysis reported in this annex shows that support provided to school based management (e.g. SBM grants) raised learning outcomes in a cost-effective way. Evidence also shows that the efficiency of the education system is likely to have been improved through improved teacher deployment. In particular, NPSBE implementation was associated with a decline in the number of ‘excess’ teachers which reduced system costs. The program also provided significant cost savings in the provision of textbooks. School construction costs under the program were comparable with other government-led programs but project construction was assessed to be of higher quality. 1. Trends in public education spending, 2002-2013 5. The education system in the first half of the 2000s was characterized by declining access to basic education and falling levels of public investment. Between 2002 and 2006, elementary net enrollment rates (NERs) fell by 7 percentage points and the number of children attending elementary school stagnated. Drop-out rates remained high particularly in the first grade where 15 percent of students dropped out annually (World Bank and AusAID 2010). Over the same period, high school NERs remained relatively stable and enrollment increased in line with population growth (World Bank and AusAID 2010; Department of Education, 2012). Poor education performance was partly the result of underinvestment in the education sector (Figure 1). In real terms, overall spending on education declined from PHP 155 billion in 2003 to PHP 140 billion in 2005 (constant

41

2011 prices). Over the same period, per student spending at the basic education level also fell by 10 percent in real terms (from PHP 7,998 (US$185) to PHP 7,285 (US$168)). Figure 1: Public education spending, 2002 – 2013

Total public spending on education Real spending per basic education student

Note: Data between 2003 and 2011 are actual obligations. Data for 2012-2013 are based on approved appropriations. Public and private enrolments used to calculate per-student spending. Estimates of enrolment in 2012 and 2013 calculated based on enrolment growth between 2009 and 2012. Source: Department of Budget Management (2013). GDP data and GDP deflator used for constant price series from World Development Indicators online database. 6. In 2006, significant increases in public education investment began to reverse the declines in the education sector seen in the first half of the decade. In 2006, the Basic Education Sector Reform Agenda (BESRA) was developed and at the same time public investment into the education sector began to increase. Between 2005 and 2013, public education spending almost tripled in real terms while spending per basic education student increased by around two-thirds (Figure 1). This increased investment had some positive effects on education outcomes; elementary and high school net enrollment rates increased and approximately 2.2 million more children were attending school in 2011 than in 2005. Test results at the elementary level have also shown improvement across all subjects. At the high school level, trends in achievement have improved in mathematics, Filipin, and Hekasi (social studies) with some declines in English and science(World Bank and AusAID 2010; Department of Education, 2012). 2. Cost savings arising from changes in internal efficiency 7. Internal efficiency. Improvements in the internal efficiency of the basic education system have the potential to realize significant cost savings over time. For example, reductions in repetition rates can reduce the time children take to complete elementary schooling and hence reduce the costs of elementary provision. BESRA and NPSBE were designed to raise the quality of basic education and improve the efficiency of the education system through reductions in drop-out and improvements in overall school completion. However, internal efficiency indicators did not change significantly over the period of NPSBE and as result did not lead to any significant cost savings. Table 1 provides information on trends in the main internal efficiency indicators of elementary and high schools. While efficiency has remained relatively stable at the elementary level

42

there have been some minor improvements at the high school level. For example, dropout rates have fallen by approximately one percentage point and have improved the survival and completion rates. However, these trends are unlikely to have resulted in significant cost savings over the period of NPSBE implementation. Table 3: Internal efficiency indicators (%), selected years 2006-2011

2006/07 2009/10 2011/12 Elementary

Repetition rate 2.6 2.4 2.5 Drop-out rate 6.4 6.3 6.4 Cohort survival rate 73.4 74.4 73.5 Completion rate 71.7 72.0 71.0

High school Repetition rate 3.5 3.2 3.3 Drop-out rate 8.6 8.0 7.8 Cohort survival rate 77.3 78.4 78.8 Completion rate 72.1 73.6 74.2

Note: The cohort survival rate is the percentage of a cohort of students in the first grade in a given school year that are expected to survive to the last grade. Completion rate is the percentage of first year entrants who complete/finish their full term. Repetition rates are for public schools only. Source: Repetition rates calculated from BEIS-NT. All other data from Department of Education (2012). 8. These relatively minor efficiency improvements need to be seen in light of NPSBE objectives to increase access and narrow inequality. Approximately 2.2 million additional children have enrolled in basic education since 2005. A large proportion of these children are likely to have come from poorer households where support for education is more limited and the factors associated with dropout and repetition more prevalent. A survey conducted in 2004 showed that completion rates for the poorest household quintile were half those of the wealthiest quintile. This would suggest that as poorer children entered school for the first time the efficiency of the system would deteriorate. It is striking therefore that internal efficiency indicators remained relatively steady over this period. 9. Cost savings associated with better teacher deployment. A key aspect of the project was to improve teacher deployment to:

Ensure that all schools had the required number of teachers according to staffing norms

Speed up the establishment of new teaching positions to fill school teacher deficits

Establish effective systems (e.g. hardship allowances and transfer policies) to redeploy existing teachers away from schools that had too many teachers

10. Improvements in the efficiency of the system can arise if excess teachers are redeployed to deficit schools or are used to accommodate increased student numbers in new schools/classrooms. This will not have any effect on the national student-teacher

43

ratio but there would be an expectation that differences in school level student-teacher ratios would narrow. 11. Calculations based on reductions in the number of excess teachers point to large cost savings. In order to understand fully whether the distribution of teachers has improved, analysis of teacher surpluses and deficits at the school level is required. A study estimated that there were 83,000 excess teachers in the basic education system (68,000 at elementary and 15,000 at high school) in 2003/04 (Department of Education, 2005). A follow up study, using 2009/10 data and the same methodology, showed that the number of excess teachers had declined to around 35,512 basic education teachers (Department of Education, 2012). Assuming this had the effect of reducing the need for new teachers by an equivalent amount this would have reduced the overall salary bill by approximately 10 percent or PHP 12.4 billion.34 12. Despite reductions in the number of excess teachers, increases in enrollment have meant that teacher shortages remain. The rapid growth, since 2005, of basic education enrolment has given rise to an increased need for new teachers. This growing demand has been filled by shifting excess teachers to schools with deficits as well as by recruiting additional teachers. These measures have managed to keep student-to-teacher ratios in elementary and public high schools relatively stable over the NPSBE implementation period (Figure 2). 35 However, student-to-teacher ratios remain above the level associated with existing staffing norms. Coupled with rising enrolment, this has meant that the absolute size of teacher shortages has grown. In 2005, it was estimated that schools had a deficit of approximately 38,000 teachers but this had grown to 122,000 by 2009. Much of the increase in the deficit of teachers was at the high school level, where 84,000 teachers were estimated to be needed to ensure that existing staffing norms were met. Figure 2: Teacher numbers and student teacher ratios, 2005-2010

Elementary High School

Note: Teacher and student teacher ratios are only for public schools. Source: BEIS Quick Count Data

34 This assumes the average teacher salary of PHP 261,376 reported in the latest medium term expenditure framework (Department of Education (DepEd) 2012). 35 The pattern of regional student teacher ratios have also not changed significantly over time.

44

3. Efficiency/cost effectiveness of project spending on key components 13. The program did not provide additional financing but helped guarantee the delivery of budgeted items crucial to the reform agenda. The budget line items are listed in Table 2. Table 4: Budget lines supported under NPSBE

Budget line Appraisal estimate ($m)

Actual/latest estimate ($m)

Comments

Component 1: Strengthened school based management

School First Initiative (SFI) grants 25 25 Grants were later renamed as School Based Management Grants

Maintenance and Other Operating Expenses (MOOE)

20 27

School feeding 4 1 Component 2: Improved teacher effectiveness

Hardship allowances 7 5 Training 47 4 Includes training under other

components Component 3: Enhanced quality and equity through standards, assessment and support

Textbooks, teaching and learning materials including e-materials

47 38

Building and/or rehabilitation of classrooms

26 97

Component 4: Effective resource mobilization

Policy development 10 2 Includes policy development under other components

Government Assistance to Students and Teachers in Private Education (GASTPE)

- This is not financed directly but support is supposed to finance policy formulation around this area

Sub-total of financing for specific budget lines

186 199

Other project financing (e.g. hardware)

14 1

Total project financing 200 200 Source: Original Project Appraisal Document and DepEd Status of Loan Drawdown as of 23 May 2013.

14. The remainder of this section assesses the extent to which public investment increased in these areas. It also explores the potential effect, efficiency and cost effectiveness of the major items of spending supported by NPSBE.

45

3.1 Component 1: Strengthening school based management 15. Public education spending on strengthening school based management increased significantly after the start of NPSBE (Figure 3). Maintenance and other operating expenses (MOOE) allocated to elementary and high schools doubled in real terms between 2005 and 2012. This also translated into significantly more resources per student; MOOE at elementary (high school) increased from PHP 153 (PHP 447) in 2005 to PHP476 (PHP 772) in 2012 (constant 2011 prices). Overall allocations to grants for school based management grants introduced as part of NPSBE doubled in size in 2011. In contrast, allocations to the school feeding program have remained relatively low and constant in nominal terms. Figure 3: Trends in public spending on school based management, 2005-2013

Source: Department for Budget Management budget documents Note: These figures are appropriations and are different to final annual expenditure on these budget lines. Annual figures are deflated using the GDP deflator (World Development Indicators) 16. School based management grants and maintenance and other operating expenses. School based management is expected to lead to improvements in school performance by placing decision-making authority and control over resources in the hands of schools and the communities they serve. It is expected that this will raise performance because local actors have better information to base their decisions on and that the participation of local communities will improve transparency and strengthen existing accountability mechanisms that govern resource use. 17. World Bank studies of an earlier pilot of SBM demonstrated the potential benefits of school based management in the Philippines. The Third Elementary Education Project (TEEP) piloted the implementation of school based management in 6,000 elementary

46

schools in the Philippines in 2003 to 2005. A study of this initial pilot showed that schools that had introduced school based management had been successful at raising levels of learning at a faster rate compared to control group schools (Khattri, Ling et al. 2010). Another study also pointed to the importance of textbooks, instructional training of teachers and new classroom construction in explaining these improved learning outcomes (Yamauchi and Liu 2013). Improvements in education quality brought about through school based management and associated interventions have also been shown to have positive long-term development impacts for women. The improved levels of learning associated with the earlier TEEP project were found to have significant pay-offs for women relative to men in terms of increased educational attainment, a greater chance of migration and higher earnings (Yamauchi and Liu 2012). 18. NPSBE expanded the coverage of school based management and a recent impact evaluation confirms its significant and positive impact on education performance (World Bank and AusAID 2013). To assess the impact of SBM on learning outcomes the study exploited differences in the roll-out of SBM and associated grants between 2006 and 2009.36 The study found that, over three years, the introduction of SBM and the provision of grants improved scores on the National Achievement Tests (NAT) by 4 to 5 percentage points (approximately 0.25 standard deviations). 19. Simple comparisons with other common interventions to improve education quality tentatively suggest that the SBM reforms have been cost effective. The impact evaluation estimated simple education production functions using the same sample of schools. For rural schools, reductions in pupil-classroom and student-teacher ratios were both associated with better student performance on national achievement tests and these results were statistically significant (see Appendix 2 World Bank and AusAID 2013).37 The point estimates suggest that a reduction of 10 students in each classroom would lead to an average improvement in test scores of approximately 0.5 percentage points. Using NPSBE costs, an improvement of this magnitude would cost around PHP 140,000.38 Given the size of SBM grants are considerably smaller (PHP 50,000 per school) and their impact on learning much higher (i.e. 4-5 percentage points) it seems as though they are more cost-effective. Similar conclusions can be made by comparing the cost-effectiveness of reducing student teacher ratios with SBM reforms. These calculations are not intended to give precise estimates but they do suggest that SBM reforms are cost-effective when compared with some other common interventions. 20. SBM grants have covered approximately a quarter of all basic education schools (Table 3). The criteria used to select schools for SBM grants have varied across the years. Findings from a small and non-representative survey of schools suggested that it was more likely for grant recipients to be in poorer municipalities. However, the indicators laid out in DepED guidelines to select schools for inclusion in the program (e.g. drop-out

36 Propensity score matching techniques are used to develop an appropriate control group for the study. 37 Coefficients for urban schools were not statistically significantly different from zero. 38 This assumes that classrooms have an average of 45 students.

47

rates, NAT scores etc.) were not strong predictors of grant receipt (World Bank and AusAID 2013). Table 5: Characteristics of SBM grants

2006 2007 2008 2009 2010 2011 2012 Grant amount 50,000 50,000 50,000 50,000 50,000 50-

200,000 50-200,000

Appropriation (PHP millions)

500 500 500 500 500 1,000 1,000

Approximate number of schools covered

10,000 10,000 10,000 10,000 10,000 5,000 – 20,000

5,000 – 20,000

% of basic education schools

23 23 22 22 22 11-40 11-40

Note: 2011 data for the number of schools used for 2012 21. Grants provided as part of the school based management reform have also raised overall levels of school financing. The impact evaluation found that SBM grants did not displace other sources of funding. Schools receiving SBM grants were found to improve their overall resource position and were successful at raising more resources from parent teacher associations than in previous years. 22. Recent improvements in the size and financial management of maintenance and operating expenses have also contributed to a rise in the share of education resources controlled at the school level. A small survey of 150 schools in 3 provinces showed that the resources available at the school level had increased significantly since 2005 (World Bank and AusAID 2013). For example, average per student resources managed at the school-level had increased, in real terms, from under PHP 200 in 2007 to nearly PHP 400 in 2010 (constant 2005 prices). These increases have partly been the result of increased DepEd funding in the form of MOOE but also in improvements in the ‘downloading’ of funds to schools. In 2007, only 13 of the 150 surveyed schools reported receiving DepEd funding while in 2011, 115 schools reported receiving this funding. These trends are encouraging given that better school financing in combination with the implementation of school based management is associated with better learning outcomes. 23. Despite recent increases, overall resources that flow to the school level are still very low and efforts to target these resources more effectively have only just begun. School based management grants and MOOE at the school level represented only 4 percent of the overall DepEd budget in 2013. This is equivalent to approximately PHP495 ($11.4) per student and is very low in comparison to programs in other East Asian countries. For example, the national school grants program in Indonesia that supports school operating expenses has provided approximately $65 per elementary and junior high school student since 2012. During the lifetime of NPSBE, operating expenses have been allocated to divisions on a per student basis which has the potential to reinforce existing inequalities in education performance. However, a new funding formula developed during NPSBE has recently been introduced and addresses differences in school need across the different regions and divisions of the Philippines.

48

24. School feeding program. School feeding programs have the potential to increase education access and improve health and education outcomes (Bundy, Burbano et al. 2009). In the Philippines, recent analysis showed that a key factor in explaining school dropout was poor health pointing at a need to raise levels of nutrition to raise education outcomes. Prior to 2010, the largest school feeding program was the nationwide school for food program which provided 1 kilogram of rice to poor children in school. A review, undertaken under the auspices of the NPSBE, highlighted considerable weaknesses in the program and it was discontinued in 2010. 25. In its place, the NPSBE supported a small school feeding program pilot that worked through schools and supported school based management reforms. The pilot, in 3 provinces, provided grants to schools to organize a school feeding program and was focused on areas where levels of malnourishment were high. The pilot gradually expanded and the number of beneficiaries increased from approximately 23,000 in 2010 to 40,000 in 2013. 26. The unit costs of the school feeding program are similar to the costs of programs in other countries. The costs of providing school feeding to one child amounted to PHP 1,920 (US$45) per year which is similar to the average cost ($40) of programs in a sample of other countries (see Bundy, Burbano et al. 2009).39 However, the costs of the government’s school feeding program appeared to be higher than programs run by local non-governmental organizations and private foundations. Average costs for these programs were around PHP 1,320 (US$31) although direct comparison is difficult because they tend to be smaller in scale and frequently focus only on the early grades where the costs of providing adequate nutrition are smaller. In the absence of detailed analysis of the benefits associated with school feeding it is not possible to compare the cost effectiveness of school feeding with other interventions. However, school feeding costs are currently much higher than levels of school funding provided through SBM grants or MOOE (e.g. approximately PHP 495 per student). 3.2 Component 2: Improved teacher effectiveness 27. Spending on teacher training has increased substantially since the introduction of NPSBE in 2006 (Figure 4).40 Relatively little teacher training was centrally funded before the development of BESRA and NPSBE which raised public spending on training to an average of PHP 1.1 billion a year. Overall allocations to hardship pay have increased but remain small.

39 These costs are based on PHP 16 (PHP 15 for commodities, PHP 1 for management) per day and the program running for 120 days. Information provided by the Health and Nutrition Center, Department of Education. 40 The appropriations covered for teacher training are in-service training and Human Resources Training and Development including Teacher's Training, Scholarship & Fellowship Grants and Capacity Building for Non-Teaching Personnel. This does not fully encompass all publicly funded training conducted in the education sector as other budget lines are also likely to include training. It does not also include efforts by the government to mobilize private sector support for training (e.g. Adopt a school program).

49

Figure 4: Trends in public spending on improving teacher effectiveness, 2005-2013

Source: Department for Budget Management budget documents Note: These figures are appropriations and are different to final annual expenditure on these budget lines. Annual figures are deflated using the GDP deflator (World Development Indicators)

28. Increases in the size of hardship pay were incorporated into NPSBE to improve the distribution of the teaching force by encouraging teachers to teach in remote areas. Evidence on whether hardship pay has had this effect appear at best mixed. A new transfer policy has been developed which provides teachers with funds to cover the costs of transfer but implementation has only just begun. In addition, overall allocations of hardship pay and per-teacher allowances seem at odds with the scale of the challenge. For example, in 2013 hardship pay could be paid up to a maximum of 25 percent of a teacher’s basic pay. Only 3 thousand teachers, less than 1 percent of total basic education teachers could be covered at this maximum level of hardship pay. Alternatively, if 20 percent of all basic education teachers received hardship pay the average payment per teacher would be approximately PHP 1,700 which is only 1 percent of the average annual teacher salary.41

3.3 Component 3: Enhanced quality and equity through standards, assessment and support 29. Investments in classroom construction and rehabilitation have risen rapidly since the middle of the 2000s (Figure 5). These investments have led to a considerable increase

41 Average teacher salary taken from Department of Education (2012).

50

in classrooms allowing for greater levels of access to basic education (see below). Between 2007 and 2013, on average 6 percent of the overall Department of Education budget was devoted to classroom construction and rehabilitation. In line with government commitments to eliminate all classroom shortages by the end of 2013, there has also been an uptick in spending on classrooms since 2011. Textbook purchases also increased with the introduction of BESRA and since then have remained relatively stable. Figure 5: Trends in public spending on enhancing the quality and equity of education, 2005-2013

Source: Department for Budget Management budget documents Note: These figures are appropriations and are different to final annual expenditure on these budget lines. Annual figures are deflated using the GDP deflator (World Development Indicators) 30. Textbooks and teacher guides. Textbooks and teacher guides are a vital input into the teaching and learning process. Prior to NPSBE there had been significant efforts to improve the supply of textbooks. For example, between 1999 and 2002, the Second Social Expenditure Management Project provided 110 million basic education textbooks and 67 million teacher manuals. This provided a set of core textbooks to nearly all elementary school children and improved the high school student textbook ratio significantly (World Bank 2008). 31. The NPSBE continued these improvements in textbook provision and between 2007 and 2011 purchased 30 million elementary and 16.5 million high school textbooks in a range of subjects (see Table 4). This is equivalent to approximately 1.5 textbooks per student at the elementary level and 2 textbooks per high school student. In many cases, this new provision allowed schools to eliminate the use of multiple textbooks in a single class and removed significant challenges faced by teachers from the need to teach to more than one textbook in a class. The NPSBE also purchased approximately 900 thousand teacher guides to support the use of these textbooks.

51

Table 6: Characteristics of NPSBE textbook purchases and key comparators

NPSBE Social expenditure management project

(SEMP) Elementary High School Elementary High

School Number of subject/level textbooks 14 18 Total number of textbooks produced 29,993,070 16,466,582 91,150, 752 18, 493,

911 Average unit textbook cost to supply and deliver (to schools)

32 (0.70) 48 (1.03) 74 (1.60) 90 (1.95)

Highest unit cost (PHP) 23 109 - - Lowest unit cost (PHP) 39 32 Average cost per page to supply and deliver

0.14 (0.003) 0.14 (0.003) - -

Years of purchase 2007, 2011 2007, 2009, 2011

1999-2003 1999-2003

Source: NPSBE information provided by DepEd, Instructional Materials Council Secretariat. SEMP data from World Bank (2008). Notes: US$ costs in parentheses – 2007 exchange rate from WDI used for NPSBE. Textbook costs for elementary and high school are based on weighted averages of all textbooks procured. Textbook costs include copyright costs. SEMP unit costs inflated to 2007 prices. Costs include copyright and distribution to high schools and education offices in divisions for elementary schools. 32. The unit costs of textbooks purchased under NPSBE appear to have been low compared with previous projects in the Philippines (see Table 4). While the structural costs of textbook provision may have changed significantly over time this provides some indication that the costs of textbook provision were relatively low under NPSBE. Simple calculations suggest that savings in the order of PHP 2 billion (US$ 42 million) were made under NPSBE when compared with previous projects. 33. Market prices of textbooks in Manila were approximately 10 times higher than books procured under the NPSBE. Textbooks purchased in the market also had a life of one year compared to the five year life of NPSBE procured books.42 34. Classroom construction. Increasing the number of classrooms and improving the quality of the existing stock was central to the NPSBE objective of improving the quality and equity of basic education. Previous research in the Philippines showed the importance of reducing the pupil classroom ratio for improved learning outcomes (World Bank and AusAID 2010; World Bank and AusAID 2013; Yamauchi and Liu 2013). As part of the program, 4,813 new classrooms were constructed and 13,659 classrooms were repaired and refurbished at a total cost of US$97.5 million. 35. Classroom construction has facilitated the expansion in education access that has occurred since 2005. Between 2005 and 2010, an additional 41,000 classrooms were

42 The average costs of textbooks have been estimated to range between US$2 and US$8 by two relatively recent reviews (World Bank 2008; DFID 2010)

52

constructed (11 percent of the total stock in 2005) and this allowed the accommodation of an additional 1.6 million basic education students (Figure 6). Figure 6: Classroom construction and student classroom ratios

Elementary Schools High Schools

Source: BEIS-NT 36. Despite a significant amount of construction over the last few years, pupil-classroom ratios declined only marginally between 2005 and 2010 (Figure 6). This small decline may point to a rather limited impact on the overall quality of the education system from the NPBSE classroom construction. However, at this level of aggregation it is not possible to assess the extent to which the declines have led to smaller class sizes and improved learning environments. The rehabilitation of approximately 4 percent of the existing stock of classrooms, undertaken as part of NPSBE, is likely to have improved the learning environment and led to improvements in access and learning in existing schools. Table 7: Classroom construction costs

Type DepEd managed, Principal-led Department of Public Works and Housing

PHP US$ PHP US$ 7mx7m Cost per classroom 640,330 14,198 541,967 12,017 Cost per m2 13,079 290 11,050 245 7mx9m Cost per classroom 588,104 13,040 590,539 13,094 Cost per m2 10,508 233 10,553 234

Note: PHP figures converted using US$ exchange rate for 2010 of 45.1 from World development indicators. Figures for Sub-Saharan Africa are in 2006 prices. Source: Philippines data from Government Watch (2010) and based on a sample of 24 principal-led and 24 DPWH construction programs. 37. The costs of classroom construction carried out as part of the NPSBE were comparable to the costs of the public works department construction contracts (Table 5). NPSBE largely built large classrooms of 63m2 and costs of the principal-led construction

53

were similar to the costs of public works construction.43 While not strictly comparable the costs of classroom construction are higher in the Philippines compared with a study that reviewed the costs of classroom construction in Sub-Saharan Africa (Theunynck 2009). 38. The NPSBE utilized the principal-led classroom construction and rehabilitation approach which had some significant benefits beyond cost savings. Constructing and rehabilitating classrooms in this way put control of the process in the hands of the school principal and had the effect of reinforcing ongoing school based management reforms. Evidence from a small monitoring study of school building projects also suggests that principal-led construction were of better quality than public works construction. For example, a greater proportion of public works projects had discrepancies with the program of works than the principal-led projects reviewed (Government Watch 2010). The review also visited two construction projects developed through the KALAHI community driven development program. Classrooms built under community programs were generally not comparable with government programs. For example, classrooms built through the KALAHI program were generally of smaller size. While it is not possible to draw general conclusions the review found that the two community construction projects were the highest quality and most cost efficient of the various programs reviewed. 3.4 Component 4: Increased resource mobilization 39. The main budget line that was supported under this component was policy development. Spending by the government on policy development in the education sector has remained relatively stable between 2005 and 2013. On average, the DepEd has spent approximately PHP 47 million per year on policy development. Many of the studies underpinning the reforms undertaken as part of BESRA were underpinned by studies and evaluation work that was supported by DepEd policy resources as well as additional development partner financing. 40. NPSBE has provided resources for policy analysis that have contributed to the introduction or adjustment of major policy reforms. Analytical work has supported the implementation of school based management reforms which have been an effective way of raising learning achievement despite their infancy. Policy analysis also supported the evaluation and subsequent dropping of the inefficient food for school program saving considerable resources for the Philippines government. 41. An evaluation of the government’s Education Service Contracting under the GASTPE program, which is intended to support students and teachers in private education (GASTPE), led to a significant expansion of the program and subsequently to levels of high school enrollment. The 2011 study found that the ESC program was effective at raising high school enrollment and generated considerable cost savings for the government (World Bank 2011). In 2009, approximately 9 percent of all high school

43 Costs were comparable to the earlier Second Social Expenditure Management Program (see World Bank 2008)

54

students and a third of all private school students were part of the program. The study also found that the unit costs to the government of the grants were considerably less than the unit costs associated with public high school provision. It concluded that the program was cost-effective and generated considerable cost savings. Partly as a result of these findings government support to the program has increased between 2005 and 2013 from PHP 1.8 billion to PHP 7 billion in real terms (2011 constant prices). These increases have financed both an expansion in coverage as well as a higher grant per-student.

55

Annex 4. Bank Lending and Implementation Support/Supervision Processes

(a) Task Team members

Names Title Unit Responsibility/

Specialty Lending Dominic Reyes Aumentado Senior Procurement Specialist EASR1 Ernesto Diaz Consultant EASHD Dingyong Hou Senior Education Specialist ECSH2 Parivash Mehrdadi Temporary MNC05

Maria Loreto Padua Senior Social Development Specialist

EASPS

Lynnette Dela Cruz Perez Senior Education Specialist EASHE Niel Baumgart Education consultant EASHE Norman Larocque Education Finance Consultant EASHD Rosario Manasan Economist Consultant EASPS Josefo Tuyor Senior Operations Officer EASPS Mei Wang Senior Counsel LEGAM Michel Welmond Lead Education Specialist HDNED

Supervision/ICR Preselyn Abella Senior Finance Officer CTRLN Kristine May San Juan Ante Program Assistant EACPF Dominic Reyes Aumentado Senior Procurement Specialist EASR1 Corinne Bernaldez Team Assistant EACPF Cesar Palma Banzon Program Assistant GSDCS Aisha Lanette N. De Guzman Financial Management Specialist EASFM Ernesto Diaz Consultant EASHD Rene SD. Manuel Senior Procurement Specialist EASR1 Parivash Mehrdadi Temporary MNC05

Maria Loreto Padua Senior Social Development Specialist

EASPS

Gerardo F. Parco Senior Operations Officer EASPS Lynnette Dela Cruz Perez Senior Education Specialist EASHE Rozanno E. Rufino E T Consultant EASHE Fe Timonera E T Consultant CTRLA Josefo Tuyor Senior Operations Officer EASPS Nicholas Tenazas Education Consultant EASHE Maria Adoracion Fausto M&E Consultant EASHE Sandra Beemer Senior Operations Officer EASHE Samer Al-Samarrai Operations Officer EASHE Franco Russo Senior Education Economist EASHE Maryse Gautier Operations & Portfolio Manager EACPF Philip Cohen Consultant EASHE Nidhi Khattri Sr. Evaluation Officer WBIEG Cristina Marosan Ling Evaluations Officer WBIEG

56

Marifer Cumigad Fagela Civil Works Consultant EASHE Romeo Guce Civil Works Consultant EASHE Honesto Nuqui Data Management Consultant EASHE Sally Pritchard Education Consultant EASHE Victoria Catibog Financial Management Consultant EASHE Maria Cynthia Bautista SBM Consultant EASHE Nelson Ireland Education Consultant EASHE Vicente Paqueo Education Consultant EASHE Gerardo Parco Environmental Specialist EASPS Harry Patrinos Sector Manage HDNED Rozanno Rufino Education Specialist EASHE Ismael Tabije Civil Works Consultant EASHE Xiaoyan Liang Senior Education Specialist EASHE Alfonso de Guzman Textbook Consultant EASHE Rebecca Aquino Temporary EASHE (b) Staff Time and Cost

Stage of Project Cycle Staff Time and Cost (Bank Budget Only)

No. of staff weeks USD Thousands (including travel and consultant costs)

Lending FY05 24.06 132.80 FY06 68.25 281.37 FY07 7.04 7.44

Total: 99.35 421.63 Supervision/ICR

FY07 36.40 121.21 FY08 26.35 106.63 FY09 24.70 97.41 FY10 14.85 68.60 FY11 22.35 76.48 FY12 11.51 49.11 FY13 7.64 76.60

Total: 143.80 596.04

57

Annex 5. Beneficiary Survey Results Not applicable

58

Annex 6. Stakeholder Workshop Report and Results Not applicable

59

Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR Introduction and Background

1. NPSBE provided assistance to the Department of Education in its implementation of the Basic Education Reform Agenda (BESRA) by financing priority initiatives within the budget items of the Government. The over-arching objective of NPSBE is to improve quality and equity in learning outcomes for all Filipinos in basic education.

2. The total Loan proceeds of US$200 million was spread across three major categories of the Project which directly funds specific BESRA Key Reform Thrusts (KRTs).

Table 8: Loan Proceeds Allocation Schedule

PROJECT COMPONENTS

ALLOCATION US$

(Original) US$

(Revised) PhP

CATEGORY I 29,000,000 26,000,000 1,196,000,000 Component I: Strengthened SBM

(SBM Grants and School Feeding)

29,000,000 26,000,000 1,196,000,000

CATEGORY II 156,000,000 168,500,000 7,751,000,000 Component I: Strengthened SBM (Included support to Schools MOOE and Trainings/Workshops on SBM)

42,000,000 28,500,000 1,311,000,000

Component II: Improved Teaching Effectiveness (Included support to Teachers Education and Development, National Learning Strategies and QAA/ME through conduct of Trainings/Workshops)

16,000,000 3,250,000 149,500,000

Component III: Enhanced Quality and Equity (Included support to Classroom Construction and Textbooks)

96,000,000 136,250,000 6,267,500,000

Component IV: Effective Resource Mobilization

2,000,000 500,000 23,000,000

CATEGORY III (Included support to Hardship/Transfer Allowance)

7,000,000 5,000,000 230,000,000

Front End Fee 8,000,000 500,000 23,000,000 TOTAL 200,000,000 200,000,000 9,200,000,000 The amount reflected by component is based on FY 2010 approved revised allocation of Loan Proceeds. 3. NPSBE took effect on 01 January 2007 with 31 December 2011 as the original closing date. Project implementation was extended for one year or until 31 December 2012 to complete the printing and delivery of remaining textbooks in Science, English and Mathematics. The Project was successful in achieving its targets on time for classroom construction (completed in 2011) and Schools MOOE (100 percent loan drawdown in 2010).

4. The implementation arrangements of NPSBE and other foreign-assisted projects of the Department directly supporting the Basic Education Sector Reform Agenda (BESRA) was used as the mechanism to regularly discuss progress, issues and concerns and recommendations to improve the implementation of the reform agenda as well as the FAPs supporting the thrusts of the Department.

60

5. This report provides a summary of overall performance of the Project in terms of key outcome indicators, immediate results and physical and financial accomplishments by component.

6. Five years after the implementation of NPSBE, the Department substantially achieved its targets with moderate to significant improvement in the delivery of basic education resources and performance outcomes. This is based on the specific Project Development Objectives (PDOs) and component targets of NPSBE.

7. Significant contributions of the Project was funding classroom construction (US$97.5 million) for 4,813 new classrooms and repair of existing 13,659 classrooms; and, purchase of textbooks and teacher guides (US$ 38 million) or 30 million elementary and 16.5 million high school textbooks.

8. The Department was successful in communicating and advocating BESRA to stakeholders at all levels and initiated efforts to fully operationalize the reform agenda especially at the school level funded through NPSBE’s project components on policy formulation and trainings. There is visible integration of reform initiatives and practices across BESRA KRTs such as school accreditation (PASBE)44 in the assessment of SBM level of practice and teacher education and development (through capacitating NEAP-Regions 2) in the formulation of the schools’ SIP.

9. In terms of the financial accomplishments of NPSBE, the Department posted 100 percent Loan Drawdown. Overall accomplishment viz. Project targets across major components of the project were either achieved or exceeded. In June 2009 and 2010, the World Bank approved the Department’s proposal for a budget re-allocation of the Project’s funds to favor the fast-moving components of NPSBE such as the Civil Works (School Building Program) and SBM Grants.

I. Detailed Progress in NPSBE Implementation

10. The objectives of the National Program Support for Basic Education (NPSBE) contribute to the accomplishment of the Basic Education Sector Reform Agenda (BESRA). Specifically, it aims to contribute to the improvement of the quality and equity in learning outcomes for all Filipinos. Progress for each component is measured through a set of key performance indicators.

44The Philippine Accreditation of Schools for Basic Education (PASBE) is a BESRA initiative under the sub-TWG on QAA/M&E (DO # 64, s. 2012). It is an accreditation process which looks into the operations of public and private elementary and high schools if they meet the quality standards as established by stakeholders of basic education. 2 Supported by DO issuances numbers 32, s. 2011 on the adoption of the guidelines of the Training and Development System; 30, s. 2009 mandated NEAP in the operationalization of the T&D system; and, 111, s. 2009 on the establishment of NEAP in the Regions.

61

A. Outcome Indicators: Progress Against Targets

11. Based on the set objectives of NPSBE, six performance indicators are being used to measure progress towards improvements in the education system such as: (i) Participation Rate (PR); (ii) Cohort-Survival Rate (CSR); (iii) Completion Rate (CR); (iv) Drop-Out Rate (DR); (v) Achievement Rate (as mentioned by the NAT MPS); and (vi) Inter-Quartile Ratio (IQR) which compares the proportion of teachers available to the most favored 25 percent learners. 12. Elementary: The participation rate for elementary posted modest improvement based on the revised target value of 90.09 percent to actual value achieved – 97.3 percent. Completion rate, however, is below the revised target value of 75.13 percent viz. actual data of 70.97 percent. This is even below 3.3 percent points as reported in the Department’s Mid-Term implementation report in 2009 for NPSBE. Drop-out rate posted 6.38 percent as compared to 6.02 percent in 2009. The CSR in 2009 was reported as 75 percent as against the current result of 73.46 percent.

13. High School: For secondary education, participation rate modestly improved from 60.7 percent in 2009 to 64.8 percent in 2012. Completion rate posted 74.23 percent for 2012 while drop-out rate was reported 7.82 percent compared with 7.45 percent in 2009.

14. The Department in its efforts to reduce the rate of drop-out and increase the rate of completion continues to implement the Drop-Out Reduction Program (DORP) which tracks Pupils at Risk of Dropping-Out (PARDOs)/Students at Risk of Dropping-Out (SARDOs). The total number of schools implementing this program has reached 26,609 or 87.86 percent as against the current total number of schools. Region XI registered 100 percent implementation. B. Progress by Component

15. To measure progress of the various components of NPSBE, nine intermediate indicators are being monitored regularly. In general, the progress towards the attainment of the intermediate outcomes is varied across all components. Component 1. School-Based Management

16. This component aims to achieve higher quality and greater equity in the outcomes of basic education by enabling school/schools clusters to be more effective in taking responsibility for learning outcomes through School-Based Management. In 2011 government recognized the value and impact of SBM Grants for schools to achieve its desired change and improvement by increasing the Department’s SBM budget to PhP1 billion. To achieve this objective, the following are the sub-components implemented with the corresponding accomplishments: 17. Sub-component 1.1: Developing School-Community. Mechanisms for forming school-community partnerships (e.g. School Governing Councils or Parent-Teacher-

62

Community Associations use of SIPs and schools reporting to their communities) in all schools/schools clusters were supported under the Project.

a. Schools/Schools Clusters with SIPs. The School Improvement Plan is the blueprint for reform actions at the school level. By 2012, a total of 36, 044 schools (Elementary – 30,230 and high schools – 5,814 have approved SIPs. Region XI posted 100 percent implementation. SIP formulation continues to encourage visible participation of external stakeholders (SGC and the local school board). To ensure 100 percent support of the schools’ improvement the policy issuance on Schools MOOE in 2011 (DO no. 60) allowed as eligible expenditure activities in the school’s approved SIP.

b. Schools/Clusters of Schools Meeting SBM Criteria. A review of a policy issuance on the SBM assessment framework (DO no. 83, s. 2012- Implementing Guidelines on the Revised SBM Framework, Assessment Process and Tool) by members of the Technical Working Group for SBM, SBM Secretariat (OPS) and the Core group for the Philippine Accreditation System for Basic Education (PASBE) was completed in 2012. As a result, a simplified SBM assessment tool using a scoring matrix for SBM is currently implemented. All SBM stakeholders nationwide were trained on Document Analysis-Observation-Discussion which is a process to determine a school’s level of SBM practice.

18. Sub-component 1.2: Structure of Support and Accountability. NPSBE funded a portion of the Department’s allocation for School-level Maintenance and Other Operating Expenses (MOOE) with progressive increases in line with (i) equity based on school needs; and, (ii) incentives based on performance against SIPs. In 2010, the Project’s allocation for Schools MOOE was increased and allowed 100 percent of all schools nationwide to directly receive their MOOE allocation (compared with 70 percent in 2009). 19. The Department was able to secure support from the Executive Branch for the increase in the budget for Schools MOOE to PhP3.0 billion in the FY 2013 National Expenditure Program. The 30 percent increase in school MOOE was derived using the partial application of the equity-based formula (developed by the team of former Secretary Emilia Boncodin), which takes into account not only enrollment but also factors affecting school effectiveness such as availability of classrooms and teachers. The equity-based formula assumes a minimum fixed amount based on average historical spending of public elementary and high schools or PhP20,000 per year for elementary schools and PhP40,000 per year for high schools.

a. Schools/Schools Clusters eligible to receive school grants. A total of 29,153

elementary and high schools nationwide received SBM Grants supported by NPSBE.

20. In 2012, the policy issuance on a multi-year approach for allocating and distributing SBM grants was issued (DO no. 69, s. 2012 Multi-Year Guidelines for SBM Grants FYs 2011-2013). Under the multi-year SBM Grant guidelines, the same set of schools will receive the same allocation for three years. This approach was to ensure continuity of approved activities based on the school’s approved SIP. Prioritization of school recipients based on the income class of its Division and a set of performance indicators

63

(Participation Rate, Cohort Survival Rate, Completion Rate, School Leaver Rate, and National Achievement Rate) was the mechanism adopted.

b. School clusters with adequate Financial Management System. To support the

policy on downloading of funds to schools (MOOE and SBM Grants) especially schools without separate book of accounts or non-implementing units, the Department of Education in collaboration with the Commission on Audit (COA) has adopted the Simplified Accounting Procedures for Non-Implementing Units. DepEd has trained trainers in all Division Offices and 37,102 or 88 percent of school heads were trained on the said Simplified Accounting Procedure (SAP) for Non-Implementing units. This surpasses the target of 40 percent.

21. Sub-component 1.3: Capacity-Building. In effectively implementing SBM capacity building among the primary change agents (school heads and community members) was required. NPSBE financing under this sub-component covered trainings of school heads to operate effectively in a decentralized and self-managing school environment.

a. Schools/Schools Clusters where School Heads have been trained on SBM. A total of 38,988 or 96.61 percent of (exceeded target of 65 percent) School Heads were trained by NEAP on the Basic Courses for SBM. In prior years of Project implementation trainings on SBM practice and SBM assessment separately conducted by the SBM TWG has totaled to 4,752 School Heads in 31 Divisions. These figures however, do not include the training programs conducted by the regions and division funded through local funds and other foreign-assisted projects (TEEP, SEDIP, BEAM, Project STRIVE, GOS-IQPE). NEAP has yet to establish the database of SBM training programs as part of the full operationalization of the Training and Development System.

22. Sub-component: 1.4 Quality with Equity at the School Level. To ensure progress toward nationally defined standards, a mechanism such as a School report Card was devised for the school to report to its community on levels of inputs and outputs/outcomes, assisted by comparative feedback to the division, region and national norms drawn from the BEIS database. This report card will the school’s barometer of its accountability in terms of student outcomes as against targets set in the school’s approved SIP.

a. Schools/Schools Clusters Using School Report Card. The use of the School Report Card has been linked with the implementation of PASBE. A review and further refinement of SRC were jointly initiated and conducted by the TWGs of SBM and PASBE prior to pilot-testing of the school accreditation in 12 schools within 11 regions. Total number of schools implementing the use of School Report Card reached 40,149 or 97.97 percent (exceeded target of 40 percent).

b. Divisions engaged in tracking students at risk. As of the Project’s closing, 25,630 schools or 73 percent of schools in 75 Divisions (or 37 percent of Divisions) are using the Student Tracking System (STS).

23. Component 2: Improved Teaching Effectiveness. The objective of this component is to improve teaching effectiveness through the implementation of two policy

64

interventions: I) refine current work on teacher competency standards and apply them to performance appraisal, training needs, promotion and hiring practices, pre-service training and licensing; and ii) achieve a more equitable distribution of teachers across schools through the application of principles identified by DepED for improved teacher deployment. NPSBE financed the development of policy on refining and using competency-based standards for teachers through: (i) trainings on the use of such standards; (ii) provision of hardship allowance to teachers transferred to hard-to-staff schools; and, (iii) provision of transfer allowance for teachers required to move and other incentives to enhance equity in deployment. To attain the objectives of this component, the following are the progress of the two sub-components, to date: 24. Sub-component 2.1: Professional standards for teachers. Teacher qualifications and teacher appraisal was based in terms of competency-based performance. The Teacher Education and Development Program (TEDP) a standards framework was developed through extensive consultation and involvement of key stakeholders such as teacher representatives, CHED, teacher education institutions, principal and division superintendent associations. NPSBE supported the trial of these professional standards for teachers and the use of these standards in performance appraisal at the sub-national level.

a. Teacher performance standards developed and agreed. The National Competency-Based Teacher Standards-Teachers Strengths and Needs Assessment (NCBTS-TSNA) and the Individual Performance and Professional Development (IPPD) Toolkit were adopted both by DepED (through DepED Order No. 32, s. 2009) and CHED as basis for reforms in teacher education and development. Results of this Teachers’ self-assessment toolkit went through validation at the sub-national level to determine specific training needs of the teachers.

b. Divisions where CBTS is used in at least 50 percent of schools. Through the issuance of DepED Order No. 32, s. 2009 the NCBTS-based T&D System and the use of the TSNA and IPPD templates for teachers have been adopted. The TED TWG spearheaded the training of trainers in all regions and selected divisions in the use of the NCBTS-based TSNA and IPPD templates as part of the school improvement planning process. All Regions and Divisions were oriented and provided with NCBTS-TSNA (funded under SPHERE). Out of 203 total Divisions only 175 or 86 percent reported use of the NCBTS-TSNA and IPPD toolkit to more than 50 percent of its schools (No data available from ARMM).

c. CBTS applied to pre-service training. As reported by the Teacher Education Council through the TED TWG, 90 percent of the public Teacher Education Institutions (TEIs) have implemented the NCBTS-enriched pre-service curriculum and the Experiential Learning Courses.

d. CBTS used in hiring and promotion. The Department issued several policy issuances on the hiring of teacher position/items that have been based on the NCBTS-TSNA. There are on-going discussions on the adoption of the draft Central Office-performance and professional development assessment tool at the sub-national level.

65

25. Sub-component: 2.2 Teacher Deployment. To correct the lack of equity in staffing specifically for those schools in remote locations, DepED issued several policies to deploy teachers in hard-to-staff schools as well as subjects like Mathematics and Science.

a. 5-Year Staffing Plan devised for allocation and redeployment of

teacher. While the OPS has continued to monitor the deployment of teacher items through the Basic Education Information System (BEIS) using the color-coded scheme, the five-year projections for teacher staffing have yet to be prepared.

b. Improved equity in pupil/teacher ratios. The overall national level pupil-teacher IQR remained 1.95 as reported in 2009 while high school-teacher IQR was reported 2.19. Based on the latest data, the national elementary PTR is 40:1 while high school STR registered at 42:1.

c. Strategies devised: Teachers compensation , incentives and benefits. Strategies to address teachers’ compensation, incentives and benefits have been formulated. Specifically, the teacher localization policy and provision of hardship allowances, including additional hardship allowance for multi-grade teachers have been adopted.

26. Component 3: Enhanced Quality and Equity through Standards, Assessment and Support. The component aims to reduce inequities in the outcomes of basic education, ensuring all learners are provided with a standard quality of basic education. To attain this objective, the following are the progress of sub-component: 27. Sub-component 3.1 National Standards Framework for Learning Outcomes National strategies will be developed and implemented to support the teaching of English, Filipino, Mathematics and Science. Standards will be developed based on the Revised Basic Education Curriculum and will be incorporated into existing teacher support materials, teacher professional development, and national assessment.

a. National Learning Strategies and Action Plan. Target policy issuances and implementation strategies were met such as adopting the MTB-MLE standards, LRMDS implementation and more recently with the enactment of K to 12.

b. English Proficiency for Teachers. Prior years implementation (until 2010) showed that NEAP trained 5,446 teachers in certificate programs in English proficiency for Regions IX, X, XI and ARMM through the implementation of the National English Proficiency Program (NEPP) trainings.

c. Student Achievement Standards defined. DepED revised the Basic

Education Learning Competencies which is measured through the National Achievement Tests for elementary and high school education levels for the recent enactment of K to 12.

d. Schools receive feedback from national assessments. NETRC continues to provide each school through the Division Offices results of the national assessments for elementary and high school. Processed results of NAT are used as basis for

66

implementing interventions from central to school levels to address the least mastered skills.

28. Sub-component 3.2: Quality Assurance Framework. The Project financed the development of explicit national standards for (i) inputs including physical infrastructure and staffing; (ii) curriculum, textbooks, instructional materials, school management, student readiness, community partnership, and financial support; and, (iii) outcomes including participation, completion and student achievement as measured by national assessment tests.

a. National Standards Framework for Inputs and Outcomes.

Target policy issuances on the National Assessment Framework and QAA Framework were issued in prior years.

b. Divisions (with schools) Receive Feedback from EMIS. The Enhanced BEIS (e-BEIS) database was implemented nationwide. Schools are now able to access their school data via the Department’s website.

29. Sub-component 3.3: Enhanced Access to Information through ICT Policy Implementation. The Department implemented an ICT master plan which supported its MDG/EFA commitments. Currently, this ICT policy is being implemented and actively reviewed in line with the continuous development or improvement of ICT systems.

30. Component 4: Effective Resource Mobilization. This component aims to improve budget planning and management and resource mobilization. To date, the progress of the following sub-components are: 31. Sub-component 4.1: Financing Framework and Budget Process. Currently the Department developed a Budget Monitoring System as part of its continuing bid to improve its budget preparation process. The Bank provided training assistance with the on-going development of an electronic financial management information system through DBM. 32. Financing Framework developed. With World Bank’s technical assistance a Medium-Term Expenditure Framework was developed for 2011-2016. Prior to MTEF a Medium-Term Expenditure Plan or MTEP was developed which already covered cost estimates for the implementation of key K to 12 Reform initiatives such as Universal Kindergarten Education and the Senior High School Program.

a. Cost-sharing between the GOP and LGU applied to classroom construction, including equity factors. A statement of interest is drawn up between DepED and the concerned LGU prior to classroom construction, to obtain the latter’s commitment and support. Over 100 LGUs were given recognition for actively initiating the building of new public classrooms. These LGU-initiated SBPs, which were completed in 2011 and 2012, had an estimated cumulative total of PhP9.4 billion or equivalent to 5,000 new classrooms built.

67

33. Sub-component 4.2: Demand-Side Financing. Under this sub-component, NPSBE financed a review of current schemes on demand-side financing and the development of guidelines for effective demand-side financing of basic education in the Philippines.

a. Demand-side financing mechanisms introduced to support needy students and their families. The Project funded (US$1 million) the successful implementation of the

Breakfast Feeding Program initiated by the School Health and Nutrition Council. Currently, the School Feeding Program is implemented (based on the best practices of BFP) at the school level.

About 42 percent of elementary schools are participating in the 4Ps Program. For CY 2012 about PhP 988 million is committed for the construction of 1,452 classrooms and the hiring of 600 new teachers in the 4Ps areas. Initial analysis of the program’s impact showed positive improvement in school enrollment - in 4Ps schools increased by 2.2 percent and in non-4Ps schools increased by 0.77 percent.

34. Private Sector Participation. This sub-component focused on private sector participation in basic education initially through expansion of the Education Service Contracting (ESC) scheme at the high school level, and subsequently through extension of the scheme or an alternative option to include elementary, pre-school and Alternative Learning System. 35. Government Assistance to Students and Teachers in Private Education (GASTPE), Improvements in the implementation of the GASTPE were applied in School Year 2011-2012. The tuition subsidy for students outside the National Capital Region (NCR) was increased from PhP 5,000 to PhP 6,500 per student per year. There was also an improvement in the computation of the amount of teacher salary subsidies, i.e. for PRC-licensed teachers handling Education Service Contracting and Education Voucher System classes. Each teacher now receives PhP 12,000 per year, when previously the subsidy was computed based on PhP 250 per student per year. 36. In School Year (SY) 2012-2013, DepEd increased the GASTPE ESC tuition subsidy for non-Metro Manila Gr.7 students from PhP5,500 to PhP 6,500 per year. The increase will be applied progressively, with Gr.7 and Gr.8 students enjoying a tuition subsidy increase in SY 2013-2014, Gr.7 to Gr.9 students in SY 2014-2015 and Gr.7 to Gr.10 students in SY 2015-2016.

37. The Department also introduced an Open High School Program under GASTPE for SY 2012-2013 to expand access to high school education. A full tuition subsidy of PhP6,500 per year will be awarded to students under this program (Private high schools are not allowed to impose additional tuition fees to these students).

Education Service Contracting (ESC) is implemented based on existing

laws/guidelines and has covered 2,655,614 students in 1,948 participating schools and a total grant amount of PhP13.677 billion.

68

Education Voucher System (EVS) The Department provided PhP2.192 Billion to a total of 418,730 students nationwide.

Tuition Fee Subsidy (TFS) was provided to 1,574,527 grantees with a total cumulative grant of PhP586.962 million.

38. Other Initiatives. The Department successfully bid out the Private-Public Participation for School Infrastructure Project (PSIP) which seeks to provide 9,301 classrooms (with toilets and seats) in Regions I, III and IV-A under a Build-Lease-Transfer contract for 10 years. It is now proceeding with the next phase of the PSIP, which will be implemented in the Visayas-Mindanao regions. 39. Apart from infrastructure PPPs, the Department is working with ADB on other PPP schemes for the delivery of the Senior HS Program.

C. Lessons Learned and Recommendations

Continuous strengthening and re-defining/improving the support system (M&E processes on both financial and physical inputs of basic education services) from division, regional and central levels so that schools continue to improve their performance is also imperative.

It is recommended that a separate report on the Department’s implementation of BESRA be commissioned to gauge and assess the reform program’s levels of intervention.

The BESRA Implementation and Accountability and Advocacy and Communications Plans was re-formulated and finalized in 2010. However, this should be re-visited to integrate K to 12 thrusts in the reform agenda.

69

Annex 8. List of Supporting Documents Bundy, D., C. Burbano, et al. (2009). Rethinking school feeding: social safety nets, child development, and the education sector. Washington D.C., The World Bank. Department of Budget and Management (2013). 2013 People's Budget. Department of Education (DepEd) (2005). A Multi-Year Spending Plan for Philippine Education: Enrolment Projections and Cost Simulations under Alternative Growth and Reform Scenarios. Department of Education (DepEd) (2012). Fact sheet. Department of Education (DepEd) (2012). Medium term expenditure framework for basic education 2012-2017: enrollment projections and cost simulations under alternative scenarios. DFID (2010). Learning and teaching materials: policy and practice for provision. Guidance Note. Government Watch (2010). G-Watch monitoring of school building projects: consolidated report. Khattri, N., C. Ling, et al. (2010). The Effects of School-based Management in the Philippines: An Initial Assessment Using Administrative Data. Policy research working paper series. No. 5248, The World Bank. Theunynck, S. (2009). School Construction Strategies for Universal Primary Education in Africa: Should Communities Be Empowered to Build Their Schools? Washington D.C., The World Bank. World Bank (2008). Implementation and completion results report on the second social expenditure management project. World Bank (2008). Textbooks and School Library Provision in High School Education in Sub-Saharan Africa. World Bank (2011). Philippines. Private Provision, Public Purpose: A review of the Government's Edducation Service Contracting Program. World Bank and AusAID (2010). Philippines Basic Education Public Expenditure Review. World Bank and AusAID (2013). School Based Management in the Philippines: An Empirical Investigation.

70

Yamauchi, F. and Y. Liu (2013). "Impacts of an Early Stage Education Intervention on Students' Learning Achievement: Evidence from the Philippines." Journal of Development Studies 49(2). Yamauchi, F. and Y. Liu (2012). School Quality, Labor Markets and Human Capital Investment: Long-term Impacts of an Early Stage Education Intervention in the Philippines. Policy Research Working Paper Series Number 6247. Reyes, C., Tabuga, A., Mina, C. and Asis, R (2013). Promoting Inclusive Growth Through the 4Ps. Philippines Institute for Development Studies.

IliganIligan

PasigPasigQuezon Quezon

GeneralGeneralSantosSantos

LucenaLucena

ViracViracBatangasBatangas

BoacBoacMamburaoMamburao

RomblonRomblon

Santa CruzSanta Cruz

AntipoloAntipolo

BalerBalerPalayan Palayan

TarlacTarlacIbaIba

MalolosMalolosBalangaBalanga

Trece MartiresTrece Martires

Laoag CityLaoag City

ViganViganBanguedBangued

TabukTabuk

IlaganIlagan

CabarroguisCabarroguis

BontocBontocLagaweLagawe

BayombongBayombongLa TrinidadLa Trinidad

LingayenLingayen

KabugaoKabugao

BascoBasco

Puerto PrincesaPuerto Princesa

PiliPili

SorsogonSorsogon

DaetDaet

MasbateMasbateCatarmanCatarman

BoronganBoronganCatbaloganCatbalogan

NavalNaval

MaasinMaasin

BacolodBacolod

DumagueteDumaguete SiquijorSiquijor

TagbilaranTagbilaran

MambajaoMambajao

SurigaoSurigao

San JoseSan Jose

TandagTandag

Tubod Tubod

ProsperidadProsperidad

TagumTagumNabunturanNabunturan

MatiMatiKidapawanKidapawan

DigosDigosIsulanIsulan

Marawi Marawi

MalaybalayMalaybalay

OroquietaOroquietaDipologDipolog

IpilIpil

IsabelaIsabelaCityCity

JoloJolo

KaliboKaliboRoxas CityRoxas City

San Jose deSan Jose deBuenavistaBuenavista

JordanJordan

AlabelAlabel

PanglimaPanglimaSugalaSugala

ZamboangaZamboanga Shariff AguakShariff Aguak(Maganoy)(Maganoy)

San FernandoSan Fernando

TuguegaraoTuguegarao

BaguioBaguioSan FernandoSan Fernando

LegaspiLegaspi

TaclobanTacloban

CebuCebu

ButuanButuan

DavaoDavaoCotabatoCotabato

CagayanCagayande Oro de Oro

IloiloIloilo

PagadianPagadian

KoronadalKoronadal

CalapanCalapan

CalambaCalamba

MANILAMANILA

MALAYSIAMALAYSIA

Iligan

PasigQuezon

GeneralSantos

Lucena

ViracBatangas

BoacMamburao

Romblon

Santa Cruz

Antipolo

BalerPalayan

TarlacIba

MalolosBalanga

Trece Martires

Laoag City

ViganBangued

Tabuk

Ilagan

Cabarroguis

BontocLagawe

BayombongLa Trinidad

Lingayen

Kabugao

Basco

Puerto Princesa

Pili

Sorsogon

Daet

MasbateCatarman

BoronganCatbalogan

Naval

Maasin

Bacolod

Dumaguete Siquijor

Tagbilaran

Mambajao

Surigao

San Jose

Tandag

Tubod

Prosperidad

TagumNabunturan

MatiKidapawan

DigosIsulan

Marawi

Malaybalay

OroquietaDipolog

Ipil

IsabelaCity

Jolo

KaliboRoxas City

San Jose deBuenavista

Jordan

Alabel

PanglimaSugala

Zamboanga Shariff Aguak(Maganoy)

San Fernando

Tuguegarao

BaguioSan Fernando

Legaspi

Tacloban

Cebu

Butuan

DavaoCotabato

Cagayande Oro

Iloilo

Pagadian

Koronadal

Calapan

Calamba

MANILA

1

2

4

6

7

11

14

17

18

19

20

2122

16

23

2425

27

31

39

42 46

47

49

54

75

59

62

65

66

71

73

74

76

80

79

77

78

63

3

5 9

10

8

12

13

15

28

29

30

26

32

33

34

35 36

37

38

40

41

43

44 45

48

50

51

52

53

55

56

58

61

64

68

69

70

60

67

72

57

ZAMBOANGA CITY

ICAR II

III

IV-A

V

IV-B VI VII

VIII

IX X

XIII

XI

XII

ARMM

NCR

MALAYSIA

Celebes Sea

Moro

Sulu Sea

Leyte Gulf

Visayan

Sea

Mindoro Strait

SibuyanSea

Phi l ippine

Sea

Babuyan Channel

Luzon Strai t

Gulf

DavaoGulf

MindanaoSea

BatanIslands

BabuyanIslands

PolilloIslands

LubangIslands

Catanduanes

TicaoSibuyanTablas

Busuanga

SemiraraIslands

CuyoIslands

Culion

Linapacah

Dumaran

Bugsuk

Balabac

Cagayan Sulu

Tawi-Tawi

Sulu

Basilan

Mindanao

CamiguinSiquijor

Negros

Panay

Bohol

Cebu Leyte

SamarMasbate

Marinduque

BuriasMindoro

Palawan

Luzon

Dinagat

Siargao

Sarangani

20ºN

10ºN

5ºN125ºE

120ºE

125ºE

IlocosIlocos NorteIlocos SurLa UnionPangasinan

Cordillera Admin. Reg.AbraApayaoBenguetIfugaoKalingaMountain Province

Cagayan ValleyBatanesCagayanIsabelaNueva VizcayaQuirino

Central LuzonAuroraBataanBulacanNueva EcijaPampangaTarlacZambales

National Capital Reg.

CALABARZONBatangasCaviteLagunaQuezonRizal

MIMAROPAMarinduqueMindoro OccidentalMindoro OrientalPalawan*Romblon

BicolAlbayCamarines NorteCamarines SurCatanduanesMasbateSorsogon

Western VisayasAklanAntiqueCapizGuimarasIloiloNegros Occidental

Central VisayasBoholCebuNegros OrientalSiquijor

Eastern VisayasBiliranEastern SamarLeyteNorthern SamarSamarSouthern Leyte

Zamboanga PeninsulaZamboanga del NorteZamboanga del SurZamboanga SibugayZamboanga City

I1234

CAR56789

10

II1112131415

III16171819202122

NCR

IV-A2324252627

IV-B2829303132

V333435363738

VI394041424344

VII45464748

VIII495051525354

IX555657---

Northern MindanaoBukidnonCamiguinLanao del NorteMisamis OccidentalMisamis Oriental

Davao Reg.Compostela ValleyDavao del NorteDavao del SurDavao Oriental

SOCCSKSARGENNorth CotabatoSaranganiSouth CotabatoSultan Kudarat

CaragaAgusan del NorteAgusan del SurDinagat IslandsSurigao del NorteSurigao del Sur

Autonomous Reg. inMuslim MindanaoBasilanLanao del SurMaguindanao**SuluTawi-Tawi

X5859606162

XI63646566

XII67686970

XIII7172737475

ARMM

7677787980

**Shariff Aguak (Maganoy) andSultan Kudarat serve as co-capitalsof the province.

*Executive Order 429, May 23, 2005,provides for the transfer of Palawanprovince (#31) from Region IV toRegion VI; Administrative Order 129holds EO429 in abeyance until animplementation plan is approvedby the President.

PHILIPPINES

0 50 100

0 50 100 Miles

150 Kilometers

IBRD 33466R4

NOVEMBER 2012

PHIL IPPINESSELECTED CITIES

PROVINCE CAPITALS

REGION CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

PROVINCE BOUNDARIES

REGION BOUNDARIES

INTERNATIONAL BOUNDARIES

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, o r any endo r s emen t o r a c c e p t a n c e o f s u c h boundaries.