Completion Report

Project Number: 40368-022 Loan Number: 2777 Grant Number 0257 August 2021

Lao People’s Democratic Republic: Secondary

Education Sector Development Program This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS

Currency unit – Kip (KN)

At Appraisal At Project Completion (24 May 2011) (30 June 2019)

KN1.00 = $0.00012 $0.00011 $1.00 = KN8,001.50 KN8,865.76

ABBREVIATIONS ADB – Asian Development Bank BESDP – Basic Education Sector Development Program DMF – design and monitoring framework EGP – ethnic groups plan EMIS – education management information system GAP – gender action plan GER – gross enrollment ratio GTPS – Graduate Teacher Placement Scheme ICT – information and communication technology Lao PDR – Lao People’s Democratic Republic LSE – lower secondary education M&E – monitoring and evaluation MOES – Ministry of Education and Sports O&M – operation and maintenance PBL – policy-based loan PMU – project management unit PPA – pupil–parent association SDR – special drawing rights SES – secondary education subsector SESDP – Secondary Education Sector Development Program STEP – Secondary Teacher Education Program SY – school year TTI – teacher training institution USE – upper secondary education

NOTES

(i) The fiscal year (FY) of the Government of the Lao People’s Democratic Republic ends on 31 December (until 2017, FY ends on 30 September) .

(ii) In this report, “$” refers to United States dollars unless otherwise stated.

Vice-President Ahmed M. Saeed, Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department, (SERD) Directors Ayako Inagaki, Human and Social Development Division (SEHS), SERD

Sonomi Tanaka, Lao PDR Resident Mission (LRM), SERD Team leader Annika Rachel Lawrence, Education Specialist, SEHS, SERD Team members Khamtanh Chanthy, Senior Project Officer, LRM, SERD Theonakhet Saphakdy, Senior Social Development Officer (Gender), LRM,

SERD Malina Sisavanh, Associate Project Analyst, LRM, SERD Vongphet Soukhavongsa, Environmental Safeguards Officer, LRM, SERD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page

BASIC DATA i

I. PROJECT DESCRIPTION 1

II. DESIGN AND IMPLEMENTATION 1

A. Project Design and Formulation 1 B. Program Outputs 2 C. Program Costs and Financing 4 D. Disbursements 5 E. Program Schedule 5 F. Implementation Arrangements 5 G. Technical Assistance 6 H. Consultant Recruitment and Procurement 6 I. Gender Equity 6 J. Safeguards 7 K. Monitoring and Reporting 8

III. EVALUATION OF PERFORMANCE 8

A. Relevance 8 B. Effectiveness 9 C. Efficiency 10 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 13

IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14

A. Issues and Lessons 14 B. Recommendations 14

APPENDIXES

1. Design and Monitoring Framework 16

2. Summary of Compliance with Policy Actions for Each Tranche 22

3. Project Cost at Appraisal and Actual 30

4. Project Cost by Financier 31

5. Project Cost by Output 33

6. Disbursement of ADB Grant Proceeds 34

7. Contract Awards of ADB Grant Proceeds 36

8. Summary of Gender Equality Results and Achievements 37

9. Summary of Ethnic Groups Equality Results and Achievements 57

10. Status of Compliance with Loan Covenants 65

11. Status of Compliance with Grant Covenants 67

12. Economic Reevaluation 75

13. Financial Reevaluation 82

BASIC DATA A. Loan/Grant Identification

1. Country Lao People’s Democratic Republic 2. Loan number and financing source Grant number and financing source

2777: Concessional Ordinary Capital Resources

0257: Asian Development Fund 3. Project title Secondary Education Sector Development

Program 4. Borrower Lao People’s Democratic Republic 5. Executing agency Ministry of Education and Sports 6. Amount of loan and grant a. Program loan SDR6,314,000 ($10.0 million) b. Project grant $30.0 million 7. Financing modality Sector Development Program

B. Loan Data

1. Appraisal – Date started – Date completed

9 May 2011 24 May 2011

2. Loan negotiations – Date started – Date completed

14 July 2011 15 July 2011

3. Date of Board approval 20 September 2011 4. Date of loan agreement 15 November 2011 5. Date of loan effectiveness – In loan agreement – Actual – Number of extensions

13 February 2012 9 January 2012 0

6. Project completion date a. Program loan

– Appraisal – Actual

b. Project grant – Appraisal – Actual

31 December 2016 31 December 2018 31 December 2018 30 June 2019

7. Closing date a. Program loan

– In loan agreement – Actual – Number of extensions

b. Project grant – In grant agreement – Actual – Number of extensions

31 December 2016 31 December 2018 2 30 June 2019 31 December 2019 1

8. Financial closing date a. Program loan

– Actual b. Project grant

– Actual

18 December 2018 9 July 2020

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9. Terms of Loan – Interest rate – Maturity (number of years) – Grace period (number of years)

1% per annum during grace period and 1.5% per annum thereafter 24 8

10. Disbursements a. Dates

1. Secondary Education Sector Development Program (Loan 2777-LAO)

Initial Disbursement

30 June 2014

Final Disbursement

18 December 2018

Time Interval

54.4 months

Effective Date

9 January 2012

Actual Closing Date

18 December 2018

Time Interval

84.5 months

2. Secondary Education Sector Development Program (Grant 0257-LAO)

Initial Disbursement

30 April 2012

Final Disbursement

22 March 2018

Time Interval

71.7 months

Effective Date

9 January 2012

Actual Closing Date

9 July 2020

Time Interval

103.5 months

b. Amount (SDR and $ million) 1. Secondary Education Sector Development Program (Loan 2777-LAO)

Tranche Number Date Disbursed SDRa $ Equivalent

Tranche 1 30 June 2014 3.157 4.87

Tranche 2 18 December 2018 3.157 4.37

Total 6.314 9.24 a Foreign exchange rate used for Tranche 1: SDR1 = 1.543; Tranche 2: SDR2 = 1.384.

2. Secondary Education Sector Development Program (Grant 0257-LAO)

Category

Original

Allocatio

n (1)

Increased

during

Implementatio

n (2)

Canceled

during

Implementation

(3)

Last

Revised

Allocation

(4=1+2–3)

Amount

Disbursed

(5)

Undisburse

d Balance

(6 = 4–5)

Works 5.578 1.725 0.000 7.303 7.303 0.000

Furniture, equipment 2.619 (0.745) 0.000 1.874 1.874 0.000

Teaching and learning

materials

4.889 (0.734) 0.000 4.155 4.155 0.000

Training and professional

development

4.687 3.604 0.000 8.290 8.290 0.000

Consulting services 5.779 (0.096) 0.000 5.683 5.683 0.008

Stipends and other

grants

1.508 (0.088) 0.000 1.420 1.420 0.000

Project management 1.061 0.214 0.000 1.275 1.725 (0.003)

Unallocated 3.880 (3.880) 0.000 0.000 0.000 0.000

Total 30.000 0.000 0.000 30.000 29.995 0.005

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C. Project Data

1. Grant Cost ($ million)

Cost Appraisal Estimate Actual

Foreign exchange cost 9.12 15.56

Local currency cost 23.24 18.30

Total 32.36 33.86

2. Financing plan ($ million)

Cost Appraisal Estimate Actual

Implementation cost

Borrower financed 2.36 3.87

ADB financed 30.00 29.99

Other external financing 0.00 0.00

Total implementation cost 32.36 33.86

3. Cost breakdown by project component ($ million)

Component Appraisal Estimate Actual

A. Project Components

1. Expanded access to secondary education 9.89 13.23

2. Improved delivery of new secondary education subsector curricula 12.39 15.18 3. Strengthened secondary education subsector management 6.18 5.45

Subtotal (A) 28.46 33.86

B. Contingencies

1. Physical 1.57 0.00

2. Price 2.33 0.00

Subtotal (B) 3.90 0.00

Total 32.36 33.86

4. Project schedule

Item Appraisal Estimate Actual

Date of contract with implementation consultants 17 May 2012 30 August 2012

Civil works contract

Date of award 18 June 2013

Completion of work 30 January 2014

Equipment and supplies June 2015

Dates

First procurement 31 January 2012 24 February 2012

Last procurement 14 August 2018

5. Project performance report ratings

Implementation Period Single Project Ratings

From January 2012 to March 2012 On-track

From April 2012 to June 2012 Potential Problem

From July 2012 to December 2012 On-track

From January 2013 to September 2013 On-track

From October 2013 to December 2013 Potential Problem

From January 2014 to September 2020 On-track

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D. Data on Asian Development Bank Missions

Name of Mission Date

No. of

Persons

No. of

Person-Days

Specialization

of Members

Project fact-finding 9–24 May 2011 6 15 a, c, e, g, h, j Project inception 19–23 March 2012 2 5 a, c, g

Grant review 1 17–24 October 2012 1 7 a

Grant review 2 23–29 May 2013 2 7 a, g

Grant review 3 13–19 November 2013 2 6 a, c

Grant review 4 11–18 August 2014 4 8 a, c, e, g

Midterm review 8–18 December 2015 4 9 a, c, e, g, i

Grant review 5 8–14 February 2017 3 7 a, c, e

Grant review 6 18–26 January 2018 4 9 a, c, e, g, i

Grant review 7 8–12 October 2018 2 4 c, e, g

Grant review 8 27–31 May 2019 3 5 c, e, g

Grant review 9 11–15 November 2019 3 5 c, e, g

Project completion review 8–17 February 2021 6 10 b, c, d, e, f, g

a = international staff/mission leader, b = education specialist/mission leader, c = national project officer/mission leader,

d = principal environmental specialist, e = social and development officer (gender), f = environmental safeguards officer,

g = project analyst, h = social and development specialist (gender), i = social and development specialist (civil society

and participation), j = counsel.

I. PROJECT DESCRIPTION

1. The Lao People’s Democratic Republic (Lao PDR) had achieved near universal access to primary education with gender parity, and gains were increasing in the secondary education subsector (SES). Nevertheless, access to and completion of secondary education remained a constraint to strengthening Lao PDR’s human capital. Supply-side constraints were causing high dropout rates from lower secondary education (LSE) and upper secondary education (USE). These include a severe shortage of quality secondary schools, facilities, and dormitories; a lack of teachers with the required educational background, pedagogy skills, and appropriate incentives; as well as outdated curricula and teaching and delivery methods. Disparities based on gender and socioeconomic and geographic differences added to the problem. Financial and opportunity costs were demand-side constraints upon poor families keeping their children in school. 2. As the lead development partner supporting SES in Lao PDR, the Asian Development Bank (ADB) responded to these challenges and approved the Secondary Education Sector Development Program (SESDP or the program) on 20 September 2011 for a total cost of $40.0 million.1 The program comprised a policy-based loan (PBL) of $10.0 million and a project grant (the project) of $30.0 million. It became effective on 9 January 2012 and c losed on 9 July 2020. The expected impact of the program was improved educational attainment. The outcome was enhanced equity, quality, and efficiency of secondary education. While the program and project components were national in scope, project investments were targeted at 30 districts across 15 provinces classified by the government as both “poorest” and “educationally disadvantaged.”2 3. The PBL supported policy reform actions to expand access to secondary education and improve quality by strengthening teacher preparation, recruitment, and deployment, while equitably distributing revised curriculum materials. It supported SES management by enhancing resource planning for block grants to schools while improving stakeholder mobilization and information and communication technology (ICT) strategy in schools. The efforts complemented the project’s outputs of (i) expanded access to secondary education, (ii) improved delivery of new SES curricula, and (iii) strengthened SES management. The design and monitoring framework (DMF) is in Appendix 1. Appendix 2 summarizes policy actions compliance.

II. DESIGN AND IMPLEMENTATION

A. Project Design and Formulation

4. The program design was consistent with (i) ADB’s Strategy 2020 in supporting higher-quality secondary education and gender equity; (ii) ADB’s country partnership strategy 2012–2016 prioritizing SES and the government’s strategic vision for education to 2020; (iii) the Ministry of Education and Sports (MOES) National Education System Reform Strategy, 2006–2015 and the 7th National Social and Economic Development Plan, 2011–2015 that focused on enhancing both access to and quality of SES; and (iv) the MOES Education Sector Development Framework which provided a plan for operationalizing SES reforms. At completion, the program remained fully consistent with ADB’s country partnership strategy 2017–20203 and the government’s 8th

1 ADB. Lao People’s Democratic Republic: Secondary Education Sector Development Program. 2 This covers all provinces except Champassack and Vientiane. 3 ADB. 2017. Country Partnership Strategy: Lao People's Democratic Republic, 2017–2020─More Inclusive and

Sustainable Economic Growth. Manila.

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Five-Year National Socio-economic Development Plan, 2016–2020,4 both of which prioritize access to quality secondary education as a stepping stone to vocational training and further studies (footnote 3). The program was built on previous ADB support under the Basic Education Sector Development Program (BESDP).5 BESDP served as a model for SESDP, which took on the next level of support for curriculum reform and assisted MOES to introduce a new secondary education curriculum. A minor change in scope was approved in December 2017 to reallocate project grant proceeds at MOES’ request to finance remaining priority activities.

5. A sector development program modality was relevant as the PBL helped finance the cost of key SES reforms catalyzed under BESDP. The PBL component supported reforms complementary to the project interventions (i) ensuring efficacy and targeting to disadvantaged students, particularly for girls and ethnic group children in remote villages, to gain access to secondary schools; (ii) operationalizing the delivery of a new secondary education curriculum, including preservice and in-service teacher training and teacher recruitment and utilization plans; and (iii) enhancing resourcing and planning for education, together with improved stakeholder mobilization and an ICT strategy. Among the PBL policy actions, the government launched an SES stipend program for disadvantaged students, introduced block grants for LSE schools in all 30 districts, and completed nationwide SES school network mapping. This responded to needs to expand access efficiently and equitably, and to guide planning for future capital investment. MOES nominated focal persons from multiple units to engage in formulating policy actions and project implementation, thereby enhancing ownership. B. Program Outputs

6. Output 1: Expanded access to secondary education. This output was achieved. The policy actions under the PBL supported the project interventions by addressing supply and demand issues that constrained equitable access to secondary education. The PBL policy actions (i) introduced needs and merit-based stipends for LSE and USE students to cover costs of attending school, inclusive of an MOES budget line approved for stipends; and (ii) improved management of dormitories for students in villages located far from secondary schools.

7. The project achieved all targets under output 1. It (i) constructed and furnished 30 LSE schools and 15 USE classroom blocks; (ii) constructed 60 sex-segregated dormitories at LSE level and 15 dormitories at USE level with 50% capacity allotted to female students; (iii) provided 1,740 poor LSE students (54% female and 90% ethnic group) and 1,200 poor USE students (50% female and 89% ethnic group) with stipends; (iv) provided access grants to pupil–parent associations (PPAs) for additional dormitory space, expanded remedial support, and school income-generating activities for 60 LSE schools and 15 USE schools; and (v) increased total LSE enrollment in 30 target districts to 65,967 students, surpassing the 44,000 target.

8. Project school dormitories were fully operational but not optimized. In locations where seasonal work is prevalent, students, especially girls and those belonging to ethnic groups, would leave the dormitories and commute daily from home when their families required their support for income generation. Though the variance in dormitory occupancy was due this seasonal economy, the design was also suboptimal. Lessons learned from the design to improve air circulation and requests for safety features such as fences, perimeter lights and toilet facilities attached to the building have been incorporated in the subsequent ADB-supported program, Education for Employment Sector Development Plan. Maintenance was an issue due to low management

4 Government of the Lao People’s Democratic Republic. Ministry of Planning and Investment. 2016. 8th five-year

National Socio-Economic Development Plan (2016-2020). 8th_NSEDP_2016-2020. Vientiane. 5 ADB. Lao People's Democratic Republic: Basic Education Sector Development Program.

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capacity and budget constraints. Access grants were mainly used for improving dormitory life by building kitchens for dormitories and providing remedial classes to lagging students. Schools also used access grants to conduct income-generating activities. Science laboratory equipment and materials were underutilized because teachers lacked the required hands-on training for their proper use. 9. During SESDP’s f inal year, 1,538 LSE students (88% of the stipend recipients) stayed in school, inclusive of 830 females (54%) and 399 ethnic group students (91%). An impact assessment found that the stipend program halved the dropout among LSE grants recipients. By the end of grade 9, the average dropout rate for LSE stipend recipients was 14% compared to 28–31% nationally.6 LSE enrollments between school year (SY) 2009/10 and SY2017/18 grew by about 50% above the DMF target. SESDP contributed 42 new schools and 165 classrooms. It also provided direct support through dormitories and stipends to 55 more schools that had additional classroom blocks funded directly by MOES or other donors. Based on the education management information system (EMIS) enrolment data, since 2012, the average LSE gross enrollment ratio (GER) for schools supported under the project rose from 59% to 92%, a highly noteworthy achievement. 10. Output 2: Improved delivery of new SES curricula. The program’s output was achieved. MOES adopted policy actions supporting implementation of the new SES curricula through the introduction of (i) the Secondary Teacher Education Program (STEP) which supported future SES teachers in achieving a bachelor’s degree, (ii) new textbooks and teacher guides for LSE and USE, (iii) the Graduate Teacher Placement Scheme (GTPS) to support the deployment and retention of newly graduated science and math teachers in remote and disadvantaged areas, and (iv) guidelines and an operational manual for teacher performance monitoring and evaluation to inform performance-based teacher promotions. 11. The project exceeded all targets under output 2. The new LSE curriculum was fully introduced by SY2013/14 and MOES trained 13,227 grades 8–9 teachers (47% female and 14% ethnic group members), surpassing the target of 12,000. The project distributed nationwide 193,000 sets of grades 8 and 9 textbooks against a target of 182,130 sets. This translated to one set per student for grade 8 and one set per three students for grade 9. MOES introduced the new USE curriculum and trained 11,853 grades 10–12 teachers (52% female and 10% of ethnic groups), exceeding the target of 7,500. 12. The MOES developed new grades 10–12 textbooks and teacher guides through a series of workshops in 2012 and approved them in 2013. It printed 1.2 million textbooks and 160,140 teacher guides between 2013 and SY2016/17. Efficient procurement and delivery of textbooks through a logistics company contributed to exceeding the targets. Dissemination was uneven, however, with some schools receiving surplus materials and others not enough. The provincial education and sports services and district education and sports bureaus lacked capacity for effectively monitoring the distribution. 13. The GTPS, as a pilot, provided support, such as allowance for accommodation and travel and other cash and in-kind support to newly graduated math and science teachers serving in poor ethnic and underserved areas. The MOES deployed 65 newly graduated teachers under GTPS, of which 34 (52%) were female and 55 (85%) belonged to ethnic groups. The GTPS continued to serve as a model for teacher deployment after project closing.

6 Independent consultant’s report prepared for Ministry of Education and Sport, Lao PDR. 2019 . Lao PDR: Secondary

Education Sector Development Project (SESDP): Project Impact Assessment. Vientiane.

4

14. Output 3: Strengthened SES management. This output was substantially achieved. The following policy actions supported the project: (i) MOES’ budget allocation for non-salary recurrent expenditure as a share of its total budget rose from 6.5% in 2010 to 12.9% in 2018; (ii) MOES budgeted for the introduction of block grants to LSE and USE schools nationwide; (iii) introduction of nationwide school network mapping to guide future capital investment; (iv) adoption of the Communication Strategy to Support the Education Reform Agenda (2013–2020) to support learning outcomes for poor, disadvantaged students including girls and ethnic group members; (v) revision of a decree on private education to align with the Investment Law and support implementation of the Strategy for Promoting Private Education; and (vi) development of a strategy to implement policy on ICT for Lao education for grades 1–12.

15. The policy action for increasing the education sector’s government budget allocation to 18% was partly met due to a challenging and unforeseen f iscal situation. From the program’s baseline year, MOES’ budget grew more than 2.5-fold due to large increases in teacher salaries. During fiscal year (FY) 2009/10–FY2012/13, however, official development assistance earmarked for education fell sharply, contributing to slower growth in MOES’ budget. Despite significant gains in nominal terms, MOES’ budget declined as a share of the government budget from 16.70% in FY2012/13 to 14.02% in FY2018/19.7 While the aggregate target was missed, the government budgeted for a more rapid growth in education recurrent expenditures. This jumped from 52.8% of MOES’ total budget in FY2009/10 to 81.8% of MOES’ estimated budget in FY2018 /19. This policy action paved the way for the government to introduce block grants to SES and stipends for poor and disadvantaged students in basic education. 16. Two project targets were achieved, and one partially achieved under this output. The project helped schools establish PPAs to identify actions required to get all school-age children in school and to develop proposals for access grants. As of SY2017/18, PPAs were functioning in 75 LSE and 25 USE schools in target districts. Collectively, 844 members belonged to 100 PPAs (exceeding the target of 75), with 50% women and 79% ethnic group members. Members were trained to establish baseline data on feeder primary schools, stipend awards, attendance, and completion rates. Capacity building programs were run for 1,265 staff of central - to district-level education sector offices, exceeding the target of 1,055. Capacity building covered monitoring and evaluation, financial management, and overall secondary education system management. A total of 3,703 SES school principals (56% female) completed training on school improvement and school-based management, but the targeted annual follow-up seminars were not conducted. Instead, priority was given to dorm safety and training to use school equipment. The project organized workshops with private education institutions and nongovernment organizations to spur investment and enhance quality assurance in private education.

C. Program Costs and Financing

17. At appraisal, program cost was estimated at $42.4 million, of which $40.0 million (94.4%) was financed from ADB’s Special Funds resources and $2.4 million (5.6%) from the government’s counterpart contribution. ADB financing comprised a $10.0 million PBL and a $30.0 million project grant. Counterpart f inancing comprised in-kind contributions of land, office space, personnel, utilities, cash running costs, and related contingencies. At completion, the actual total cost was $43.85 million, about 4% higher than the original total program cost of $42.36 million. An increase in land cost for schools from the appraisal estimates resulted in a slightly higher government

7 ADB. 2018. Progress on Tranche Release: Lao People’s Democ ratic Republic: Secondary Education Sector

Development Program. Manila.

5

counterpart fund contribution ($3.87 million). The actual program costs and estimates at appraisal are detailed in Appendix 3 and the cost by financier in Appendix 4. 18. The budget was reassessed during the midterm review. Grant proceeds were reallocated in December 2017 to cover shortfalls in civil works, training, and project management. This enabled support to remaining priority project activities. Costs for civil works rose by 25% from appraisal and costs for consulting services by 5%. At completion, the ADB project grant financed (i) $8.3 million for training and capacity development (27.6% of total cost); (ii) $7.3 million for civil works (24.3%); (iii) $5.7 million for consultant services (19%); (iv) $4.2 million for teaching and learning materials (14%); (v) $1.9 million for furniture and equipment (6%); (vi) $1.4 million for stipends (4.6%); and (vii) $1.7 million for project management (4.3%). D. Disbursements

19. Policy-based loan. ADB disbursed the first tranche of $4.87 million (SDR3,157,000) on 30 June 2014, only 6 months after the original disbursement projections.8 Although the projections were realistic during the project design, to improve progress on key policy actions, the borrower requested that ADB postpone the second tranche release. ADB disbursed the second tranche for $4.37 million (SDR3,157,000 million) on 18 December 2018 after the government completed the policy actions.9 Actual total PBL disbursement was $9.24 million against $10.0 million envisaged at appraisal. The difference was attributed to appreciation of the US dollar against the SDR. 20. Project grant. The grant was financially closed on 9 July 2020, with disbursements totaling $29.995 million (99.98% of the original grant amount). The disbursements and contract awards of ADB grant proceeds are in Appendixes 6 and 7, respectively. E. Program Schedule

21. The PBL was to be utilized from 2013 to 2016. First tranche policy actions were targeted for achievement by end-2013 and those for the second tranche by end-2016. On 31 March 2017, the government requested an 18-month extension to loan closing to 30 June 2018, and a 6-month second extension was requested to 31 December 2018. This was to allow for completing second tranche policy actions and aligning the timeline of actions with the government fiscal year . The government also requested extension of the grant closing date from 30 June 2019 to 31 December 2019 to allow completion of the project impact assessment, training of teachers, and monitoring of principals after consultant recruitment delays. F. Implementation Arrangements

22. ADB’s Southeast Asia Department, Human and Social Development Division administered the PBL until closing and the project grant until it was delegated to the Lao PDR Resident Mission in January 2018. Delegation increased regular monitoring of the project. Implementation arrangements remained consistent throughout implementation. 23. The MOES was executing agency. The deputy director general of the Department of General Education served as director of the project management unit (PMU). The PMU supervised overall project implementation with project implementation units that the Department

8 ADB. 2014. Progress Report on Tranche Release. Lao People’s Democratic Republic: Secondary Education Sector

Development Program (First Tranche). Manila. 9 ADB. 2018. Progress Report on Tranche Release. Lao People’s Democratic Republic: Secondary Education Sector

Development Program (Second Tranche). Manila.

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of General Education charged with implementing policy actions and associated project activities under their remit. Units met quarterly to resolve implementation issues. The PMU received guidance from a steering committee consisting of key officials from MOES (including provincial education services and district education bureaus), the Ministry of Finance, Ministry of Planning and Investment, Ministry of Justice, and the Prime Minister’s Office. The steering committee met biannually to review progress on policy actions. Implementation arrangements were adapted from BESDP and were adequate for delivering outputs and achieving the outcome. G. Technical Assistance

24. Project preparatory technical assistance (TA) was successfully implemented at a cost of $750,000. It supported program design by helping the government (i) review BESDP initiatives and the status of intended system reforms, (ii) prepare an SES situation analysis, and (iii) design and cost detailed SESDP plans. It also helped MOES identify the most appropriate LSE school sites to reduce distance and travel time for students from the poorest communities. 25. The TA allowed full engagement of and consultation with MOES senior management and provincial-level education officials and schools, as well as development partners. The project’s smooth implementation may be attributed to the clarity of the TA that resulted in a high-quality report and recommendation to the President and thorough project administration manual. H. Consultant Recruitment and Procurement

26. The original project design included 151 firm-based international person-months and 340 national person-months of consulting services. MOES recruited the firm using quality- and cost-based selection. The firm-based consultants were mobilized in September 2012 (roughly 8 months after grant effectiveness). Original contract award projections were realistic. Modest adjustments without additional cost implication expanded international consultan t inputs to 175 person-months. The total contract cost remained below the original estimates. For the impact assessment, SESDP mobilized one international and two national consultants (2 person-months each) to conduct an independent impact evaluation as input to the project review. 27. Civil works and equipment were procured by national competitive bidding and awarded as planned. Facilities construction and delivery of textbooks and laboratory materials were delayed 1–3 months due to widespread sites and limitations during the rainy season. All procurement followed government and ADB guidelines and the procurement plan, which was updated annually. Performance of contractors and suppliers was satisfactory. I. Gender Equity

28. The project was categorized as gender equity. The gender action plan (GAP) included 26 activities and 16 targets. GAP implementation is considered not successful with the achievement of 24 activities (92%) and 11 targets (69%) (Appendix 8). The GAP progress was regularly updated and included in quarterly progress reports. Sex-disaggregated data was collected for the performance monitoring and evaluation system. At completion, the project mostly complied with gender-related covenants. The project expanded girls’ access to secondary education by providing the stipend scheme, remedial learning, and dormitories. Factors crucial to achieving GAP targets were consistent monitoring of sex-disaggregated data and ADB’s follow-up on gender dimensions during missions. Stakeholders at MOES, provincial, district, and school levels also took ownership of GAP implementation.

7

29. The survival rate to grade 8 rose only to 81% for girls against a target of 89%, and 80% for boys against a target of 87%. This challenge persists because after grade 7, students must often transition to SES farther from their villages. Costs associated with travel to schools further away, while also supporting family farming activities, have kept students out of school. The target to ensure that all civil works use labor-based technology with 40% female representation among unskilled laborers and men and women receiving equal pay for equal work was not achieved. Although female and male unskilled workers received equal pay for equal work, only 30 (20%) of 150 hired unskilled laborers were female. Cultural practices and traditional gender roles still inhibit women’s participation in construction work, and women preferred jobs such as gardening and husbandry. Lastly, annual seminars for 1,200 principals and 1,200 senior female teachers were not conducted to allocate budget to other project activities. The project achieved 52% female participation in all preservice teacher training for LSE, but women’s participation for USE was only 42% against a 50% target for both. The implementation team faced a target set without baseline data on the numbers of female USE teachers. To address GAP challenges, the project disseminated information on gender requirements through government networks and provincial officers involved with the project. The project implementation unit and ADB should have reassessed the GAP, tracked lagging targets more closely during missions, and devised solutions and/or adjusted GAP targets where required, by the midterm review. J. Safeguards

30. In accordance with ADB’s Safeguard Policy Statement (2009), the program was classified as category C for environment and involuntary resettlement and B for indigenous peoples. Civil works under the project grant were limited to small-scale construction of LSE schools and USE facilities. MOES and local counterparts validated on-site that all sites were on government-owned land, did not require land acquisition, and had no resettlement impacts. 31. Environment. No policy reform action under the PBL resulted in adverse environmental impacts or dismantlement of environmental policies or regulations. Unexploded ordinance clearances were secured prior to constructing any school buildings, including dormitories and sanitation facilities. Given the minor nature of works and minimal safeguards risks, no PMU staff or consultant dedicated to environment, health, and safety was mobilized to supervise the contractors. Construction works were supervised by the relevant district education and sports bureau. Public complaints could be filed through village grievance redress procedures. No major incident resulting in injuries and/or environmental pollution was reported. Environmental management, including site cleanup and restoration by contractors, was satisfactory. The PMU reported a few cases of construction waste not being removed prior to site handover. 32. Indigenous peoples. The project was categorized as B for indigenous peoples because it targeted districts with a large presence of ethnic group communities. In line with the Safeguard Policy Statement and its indigenous people policy requirements, the project grant developed an ethnic groups plan (EGP). The EGP managed potential negative impacts on ethnic groups and maximized benefits to these groups. Broad community consultation was organized during its development. The EGP also ensured the project design fully respected ethnic groups’ identities, dignity, livelihood systems, and cultural practices. Mitigation measures included meaningful and inclusive multi-stakeholder consultations and engagement throughout the project cycle. 33. The EGP achievements included (i) construction of 45 new secondary schools and 75 sex- segregated dormitories in ethnic communities, and (ii) provision of stipends for 1,740 LSE (90% to ethnic group students) and 1,200 USE stipends (89% to ethnic group students). The ethnic group targets were exceeded for key activities. Ethnic group students accounted for 86.6%

8

of LSE dormitory residents and 98% of USE dormitory residents. There were 65 teachers (85%) participating in the GTPS from ethnic groups. Local authorities, organization representatives10 and target communities were engaged to identify the sites for constructing schools and dormitories to ensure they would cause no adverse impacts on their cultural preservation. PPA members, teachers, and school principals from the ethnic communities were engaged in implementing the school grant program and stipend schemes to ensure the guidelines and mechanism were contextualized for implementation. Appendix 9 details further achievements and analysis on ethnic groups. K. Monitoring and Reporting

34. Performance monitoring included quarterly reporting of project activities and outputs for students, schools, communities, and districts, as well as annual performance reporting against the project’s outcome and interventions under all three outpu ts. Performance monitoring and evaluation were well-managed. Quarterly progress reports were of good quality with minor suggestions from ADB. Project progress, including EGP implementation, was regularly updated and reflected in the quarterly progress reports. All loan and grant covenants were complied with except for a grant covenant on gender and development (Appendixes 10 and 11). This remaining grant covenant was partially complied, as the GAP achieved only 69% of its targets (see paras. 28–29). Compliance with four covenants was delayed due to (i) an approval process longer than expected for stipend and school access grant criteria, and (ii) delays in release of counterpart funds for provincial and district education staff to conduct site supervision. 35. The f inancial management assessment conducted at the time of project design found the capacity of the executing agency to be adequate, albeit with a need to increase staff with accounting qualif ications. The Accounting Division under the MOES Department of Finance was expanded with higher qualif ications, and financial management training was provided during the project inception period. Audit reports between 2012 and 2019 were submitted in a timely manner. Auditors provided unqualif ied opinions while noting minor deviations in accounting records, recording of government counterpart funding, and updating information on fixed assets inventory at province and project levels. The final FY2019 audited project financial statements were acceptable, and the overall project financial management rating at completion was on track.

III. EVALUATION OF PERFORMANCE

A. Relevance

36. The program is rated relevant. SESDP’s broad set of interventions supported SES areas in MOES’ Education Sector Development Framework and built on the accomplishments of BESDP. ADB was and remains the only development partner with substantial contributions to SES. SESDP reflected government policies and became even more relevant w ith MOES’ Education and Sports Sector Development Plan 2016–2020, which emphasized increasing the f low of LSE graduates into USE and enhancing USE’s role in producing graduates with advanced skills aligned with priorities of the National Social and Economic Development Plan.11 The design was consistent with ADB’s Strategy 2020 and continues to be relevant in ADB’s Strategy 2030, directly addressing human capital development by expanding access to quality education and

10 Organizations included the Lao Women’s Union, youth organizations, the Lao Trade Union, and the Lao National

Front for Ethnic Groups. 11 Government of Lao PDR. Ministry of Education an d Sports. 2018. Education and Sports Sector Development Plan,

2016-2020: Midterm Review Report. Vientiane.

9

promoting gender equality.12 The DMF was relevant at design, but two outcome indicators could have been more realistic (paras. 38 and 41) and revised to reflect changes in EMIS. 37. The program design was well articulated, with strong alignment between the policy actions and project interventions. To improve educational attainment, expanded access to secondary education depended upon the availability of stipends and dormitories for poor and disadvantaged students. Improved delivery of the new SES curricula was dependent on the delivery of textbooks and teachers trained. Strengthened SES management depended upon building institutional capacity at central, district, and school levels. Government commitment to pursue strategies toward a restructured education system was identif ied as a key driver in achieving program targets. The stipend program, access grants, and school network mapping were innovative and transformative interventions, especially for reaching disadvantaged students inclusive of females and ethnic group members. School network mapping established under the program has also been adopted by MOES to inform future investments in education facilities. 38. Linkages between outputs and the two ambitious outcome indicators measuring survival rates could have been strengthened given the high prevalence of poverty. The program recognized that proximity to secondary school and cost of attending are key factors in student dropout. While the program addressed these through new classroom blocks, stipends, and dormitories, other factors beyond the project’s scope also impact this. The transition to 12 years of schooling required MOES to advocate for families to keep their children in school for an additional year.13 This was previously deemed unnecessary when teenage students could be contributing to family incomes. Survival rate became a less relevant outcome indicator and could have been revised at midterm review stage as the project team was aware of the data mismatch during project design.14 B. Effectiveness

39. The program is rated effective. Outputs were substantially achieved (paras. 6–16), and two of the four outcome targets were met. Two were partially achieved. Against a target of 81%, female primary school graduates entering LSE in the poorest districts reached 91.64%, a gain of 20.6% from the baseline. Policy actions supporting this outcome included MOES’ introduction of a needs-based stipend program with criteria for beneficiaries and guidelines with female and ethnic group student targets. Policies on dormitories ensuring equitable access was also crucial. Project interventions included (i) institutional analysis of the SES and an LSE needs assessment with gender and equity dimensions; (ii) school selection in areas with low female enrolment and construction of separate latrines for girls; and (iii) 50% of dormitory spaces, stipends, and remedial learning opportunities allocated to poor female students from remote areas. 40. The outcome target for at least 75% of secondary teachers qualif ied was exceeded at 88.1%, representing a 30% increase from baseline. A teacher census conducted in SY2017/18 showed that 3,726 (88.1%) from the total 4,230 secondary school teachers held bachelor’s or master’s degrees. Policy actions supporting this outcome included MOES’ approval of the revised national curriculum covering preservice training of LSE and USE teachers at all teacher education institutes and faculties of education. This included procedures for instituting minimum quality standards; accreditation of the first batch of teacher training institutes based on the minimum

12 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific .

Manila. 13 In SY2009/10, Lao PDR shifted LSE from 3 years to 4 years and subsequently added one year, grade 12, in USE. 14 The original DMF stated that Grade 9 and 12 completion targets were to be defined when secondary education

restructuring was completed, however this was not conducted .

10

standards; and deployment of an initial batch of newly graduated teachers to participate in the pilot of GTPS and analysis of the pilot f indings. Project interventions supporting this outcome included the introduction of (i) STEP to support SES teachers to achieve a bachelor’s degree; and (ii) GTPS to support the deployment and retention of newly graduated science and math teachers in remote and disadvantaged areas with a grant to qualify for higher qualif ications. GTPS placed new teachers in remote schools and gave upgrading grants to teachers who went on to support female SES teachers in the classroom as pedagogy advisors. The training of trainers however was not effective as master trainers did not fully understand the content and remained unfamiliar with the student-centered approach. 41. Data on grade-specific survival rates were not available through EMIS due to the SES structural shift (footnote 14). The impact assessment used an alternative approach for modelling dropout in grade progression to assess progress against the two survival rate outcome indicators. The cohort analysis used transition rates through LSE commencing from grade 6 to 8 and from grade 9 to 12 for USE (instead of grade 11 as per the original SES structure) to estimate likelihood of dropout. Findings showed that LSE survival to grade 8 was 81% for girls and 80% for boys, an increase but short of the targets of 89% and 87%, respectively. Survival rates for girls and boys in USE was 55% for those who commenced grade 9 in 2013 and completed grade 12 in 2019 which is above the baseline but short of the targets established prior to the restructuring of LSE and USE.15 The incremental increase in LSE survival rate to grade 8 and in survival rates from grade 6 through grade 12 indicate a higher level of retention and a lower incidence of dropout. 42. Despite SESDP’s achievements, poverty in Lao PDR remains high and a majo r factor in the low survival rate of girls and boys through secondary education. Financial and opportunity costs affect poor students’ completion of secondary education. Despite receiving stipends some students are unable to remain in school due to this opportunity cost. Girls reported needing to stay home to take care of younger siblings. Opportunity costs for boys were mainly contributing to seasonal household income in the agriculture sector. The MOES expects social campaigns around increased opportunities for higher education and training to improve this trend with time. Project interventions that aimed to improve learning opportunities for poor, disadvantaged students included (i) access-enhancing interventions conducted in 60 LSE and 15 USE schools using access grants, and (ii) PPAs functioning in 75 LSE and USE target schools in project target areas. Parents and community members addressed, through the PPAs, the needs of poor and disadvantaged students. Remedial support prioritized poor girls and ethnic students and was provided at dormitories to reinforce learning beyond class hours. 43. The GAP achieved 92% of the GAP activities and achieved meaningful targets in enrolment, however it failed to complete all activities and meet all targets (paras. 28–29). It contributed to the program’s effectiveness and achieving the outcome indicators, particularly by raising the percentage of female primary school graduates entering LSE in the poorest districts. EGP implementation was successful in realizing the program’s inclusive strategy targeting the poorest districts.

C. Efficiency

44. The program is rated efficient. It was implemented within the planned budget, despite the extension of 2 years for the PBL and 6 months for the project grant, and some reallocations and

15 Survival rate is the percentage of a cohort enrolled in the first grade of a given level of education who reach an

expected last grade in that cycle, regardless of repetition; transition rate is the percentage of students admitted to

the first grade of a higher level of education in a given year .

11

delays (paras. 18, 19, 21, 27, and 34). The program resulted in two out of four outcome indicators achieved and two partially achieved due to challenges in measuring the indicators as intended (para. 41) and circumstances beyond the effect of project interventions (para. 42). The impact indicator is likely to be achieved ahead of 2023. The economic analysis at appraisal justif ied the project through qualitative analyses of individual returns to education, gender parity in education, geographic targeting, socioeconomic returns, and beneficiary analysis, due to improved secondary education attributable to the project. The economic reevaluation (Appendix 12) reviewed recent growth in enrolment, reduced repetition, and increased transition, resulting in increased number of graduates. At appraisal, efficiency gains were envisioned in the reduction of repetition rates and student dropouts, as well as the substantial reduction of recurrent costs for MOES. At completion, the project achieved efficiency gains in reduced wastage due to repetition and dropouts. The program’s focus on SES curriculum reform, nationwide teacher training, and distribution of textbooks and teacher guides was appropriate. Improved quality was evidenced by improved learning outcomes (e.g., test scores).16 Approaches to expanding access (e.g., school and classroom construction design and equipment provision, student stipends, and access grants) were deemed cost-effective and well-targeted to address identified key constraints in SES. The program policy and investments had a direct bearing on educational opportunities for poor, disadvantaged, and indigenous students who, in many cases, would not have continued on to their secondary education. D. Sustainability

45. The program is likely sustainable. The sustainability of program achievements is supported by ADB’s subsequent Education for Employment Sector Development Program.17 Some important initiatives to be further developed within the SES include enhancing the quality and relevance of secondary education through continued curriculum reform, results -oriented teacher training, student assessment, and continuing professional development. Restructuring the systems for professional development of instructors as well as management would further enhance sustainability. The financial sustainability of the project was reviewed through a f inancial sustainability analysis of the education sector (Appendix 13). 46. The Education Law stipulates that education’s share of the total government budget shall reach 18%. During the past 5 years, education’s share of the state government’s budget declined from 15.6% in FY2015/16 to 11.3% in FY2019/20. While the aggregate target was missed (para. 7), the disaggregated sector budget indicates that the government rebalanced the MOES budget from capital to recurrent expenditures, leaving minimal budgetary allocations for critical non-salary recurrent expenditures (e.g., school maintenance, teacher and staff capacity development, and teaching and learning materials). These expenditures were passed on to communities and/or forgone, particularly in poor rural areas, undermining education quality and equity. In view of these issues and despite broader fiscal challenges, the government increased the budget for recurrent education expenditures more rapidly than expected. MOES’ recurrent budget grew almost fourfold during FY2009/10–FY2018/19, rising from 52.8% of MOES’ total budget in FY2009/10 to 81.8% of MOES’ estimated budget in FY2018/19. MOES’ budget for non-salary recurrent expenditures likewise rose five-fold during the same period. 47. The fiscal impact analysis considered the capacity for financing overall operation and maintenance (O&M) costs of MOES’ unconstrained asset network inclusive of project assets. It

16 Independent Consultant Report. 2019. Lao PDR, Secondary Education Sector Development Program: Project Impact

Evaluation. Vientiane. 17 ADB. 2019. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Kingdom

of Cambodia for the Education for Employment Sector Development Program. Manila.

12

estimated the government’s annual budget requirement to cover the total unconstrained network of assets managed by MOES after project completion. The projected recurrent expenditures from FY2021 to FY2030 indicate a budgetary shortfall for the O&M unconstrained recurrent budget ranging from 24% to 41%. The fiscal impact analysis showed that the government will require further support to secure the 18% sector allocation and fulfill its financial obligations under the program, as well as improve its budget allocative efficiency. Policy reforms and project interventions aimed at improving internal efficiency in SES have created budget savings because of increased enrolment while reducing repetition and student dropout. 48. The government is committed to expand and efficiently use resources for education. The Education Sector Development Plan, 2016–2020 increased MOES’ budget above 18% of the government budget and prioritized school block grants and other non-salary recurrent expenditure used for school O&M. The government’s current Education and Sports Sector Development Plan prioritizes and commits to SES development for inclusive growth. These increases in the education budget can sustain key project interventions, such as the stipend programs. Recurrent expenditures of operating costs of secondary schools and dormitories and the maintenance of furniture and equipment are covered by additional government funding. In 2020, the government increased the per capita student block grants, which cover school operating costs. 18 Given continued SES reforms and the high priority of SES, these numbers are expected to rise significantly. Amidst fiscal constraints that the government faces, adequate budgeting will remain critical to the longer-term sustainability of gains achieved. E. Development Impact

49. The program’s development impact is satisfactory. It made a substantial and likely sustainable impact on institutional development, gender mainstreaming, and social equity. The DMF impact targets are envisioned to be achieved by 2023. By the end of the project, the share of young adults completing 9 years of schooling grew from 32.2% in SY2012/13 to 68.4%; the gross enrolment rate for girls in LSE rose from 55.5% in SY2009/10 to 81.2%; the ratio of girls to boys enrolled in secondary education increased from 0.81 in SY2009/10 to 0.92 ; and the ratio of total secondary to primary enrollment rose from 0.47 in SY2009/10 to 0.57. 50. Impact level targets were largely achieved because of greater access to LSE facilities. The project’s use of school network mapping resulted in targeting key locations for constructing new schools and dormitories to optimally serve disadvantaged populations. Stipends to disadvantaged students boosted student interest in attending LSE. The PPA management of access grants enabled student needs to be met, especially in terms of remedial learning support and improving quality of dormitory life. The block grants that helped fund school-level recurrent costs are likely to have had a direct positive impact on female and ethnic group students.

51. Institutional impact. The program impacted and strengthened the capacity of the Inclusive Education Center, the Education Statistics and Information Technology Center, provincial and district staff, and school-level members of PPAs. With capacity development trainings, key teams at MOES and at the school-level gained experience in student data collection and analysis in collecting and maintaining baseline data on feeder primary schools. 52. Economic and social impact. The program had a direct bearing on educational opportunities for the poor and disadvantaged, including female and ethnic group students, in the

18 In 2020, per capita student unit cost increased from Kip35,000 to Kip70,000, close to the ideal unit costs as requested

by MOES from the Ministry of Finance. School block grants mainly finance school operating costs.

13

target provinces. The construction of LSE schools and expansion of USE, student dormitories, overall capacity development of teachers, and distribution of new curricular resources to LSE and USE schools have had substantial impacts. The stipends provide safety nets to improve student retention and decrease dropout. The program positively impacted on raising awareness and on efforts to promote gender equity and community involvement in managing schools. F. Performance of the Borrower and the Executing Agency

53. The performance of the borrower and MOES was satisfactory. The Ministry of Finance, Prime Minister’s Office, the Ministry of Planning and Investment, and other key agencies demonstrated strong ownership of SESDP throughout implementation. Strong leadership at the director level facilitated clear communication with ADB on challenges. This was crucial to the program’s smooth implementation, albeit with a need to extend the PBL for 2 years to enable completion of key policy actions. The decision to extend the project grant by 6 months accommodated budget allocation provided to schools and allowed for minor repair of dormitories and other facilities. In annual reviews of ADB’s portfolio, the Ministry of Planning and Investment recognized SESDP with the highest award for its top performance among ADB projects for 3 consecutive years (2013–2016). The assessment of executing agency capabilities at appraisal was accurate and allowed flexibility to gather more information on training needs. This provided a platform for high responsiveness and on-time delivery of capacity development measures. In addition to strong project management, MOES’ strong commitment to inclusiveness and equity across gender, ethnic group, and other dimensions was a clear asset in achieving targets. G. Performance of the Asian Development Bank

54. ADB’s supervision was satisfactory. It f ielded 13 missions (from fact-finding through final review). MOES expressed appreciation for the close dialogue, responsiveness, cooperation, and flexibility throughout implementation. The ADB team was closely engaged on policy, technical, and administrative aspects. The program benefited from strong coordination between ADB headquarters and the Lao PDR Resident Mission, the latter’s solid front -line support, and the relative continuity of the ADB project team. Finally, the executing agency appreciated ADB-provided training on project implementation and procurement during project start-up. H. Overall Assessment

55. The program is rated successful. It was relevant, effective, efficient, and likely sustainable. The program improved access to LSE, especially for girls in the poorest districts, through new LSE schools and dormitories located in areas with low female enrolment, and the provision of stipends to help families offset the costs of going to school. Program interventions improved learning opportunities for poor and disadvantaged students. The program also supported improvement in teacher qualif ications through the introduction of STEP and GTPS.

Overall Ratings Criteria Rating

Relevance Relevant

Effectiveness Effective

Efficiency Efficient

Sustainability Likely sustainable

Overall Assessment Successful

Development impact Satisfactory

Borrower and executing agency Satisfactory

Performance of the Asian Development Bank Satisfactory

Source: Asian Development Bank.

14

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons

56. Low level relevance of secondary education. Despite increased access to school and dormitory facilities and stipends to offset the costs of going to school, staying in school remains a challenge among disadvantaged and poor communities. It was reported that some students dropped out or left dormitories temporarily to support family incomes. The program included key interventions—access grants and PPA engagement—to improve learning opportunities for poor, disadvantaged students by meeting specific needs. Further support is nevertheless required to ensure greater relevance of schooling and to keep students from dropping out. This requires separate assessments that could not be supported under SESDP’s limited scope and implementation period. Greater relevance of schooling would require better curricular and instructional alignment with the skills sets required by the labor market. Strengthening the relevance of school to labor market needs may be an incentive for students to stay in school and complete secondary education to improve their employment prospects and acquire future education and training. Weak learning outcomes preventing students from meeting the demands of academic study also contribute to student dropout. Remedial learning support can address low level achievement which further increases the relevance of schooling. 57. Disjointed monitoring at school level. The PMU needs to be proactive in monitoring project activities. Although the issues around dormitory usage and occupancy rates are regularly reported in quarterly progress reports with focus on numbers of female and ethnic occupants, tracking data at the school level show some dormitory blocks with no occupants and others with overflow. Similarly, the distribution of textbooks and laboratory equipment caused some to remain underutilized. Teachers received training to use laboratory equipment and materials but still lacked confidence to apply the knowledge and skills. Although pre- and post-training assessments were conducted, monitoring of laboratory equipment usage and evaluation of teacher instruction using the laboratory equipment were not performed. 58. Need for follow-up school leadership training. Although the PMU conducted training for school leaders, there were no annual follow-up seminars. Additional funds were necessary to enable travel and other arrangements for such seminars to be conducted, but the PMU did not prioritize funding for the seminars through reallocation of budget. The low priority given to the workshops is due to lack of awareness about the importance of follow-up to school leadership training in the project design. Leadership training requires continuous coaching support to build school leaders’ confidence in applying strategies introduced in training programs. 59. Lack of support for GAP implementation. The PMU gender officer joined review missions only in 2018. Had gender consultants been mobilized earlier on, they might have provided guidance necessary for completing activities and meeting targets that remained. For achievement of the target on women’s participation in construction work, considering baseline practices, measures to challenge the cultural practices should have been integrated in the GAP.

B. Recommendations

60. General. ADB should continue engaging with MOES to support Lao PDR in SES and enable greater relevance of schooling for Laotian youth. More innovative support may be considered such as personalized adaptive learning to allow students to catch up to grade-level expectations and strengthen basic skills for continued study. A personalized approach to skills and knowledge development may be an incentive for regular attendance leading to completion of

15

secondary education. Future projects may include outcome indicators measuring student learning outcomes aligned with this approach. The personalized adaptive learning approach may also be applied to the training of teachers. Support to SES aligns with the ongoing technical vocational education and training and higher education projects and leverage linkages to improve the relevance of SES. Teacher training interventions comprise a large component of ADB support to the country’s education sector. While capacity building of the teacher workforce is crucial, there is little evidence as to the impact on learning using the traditional models. More and continuous professional development support for teachers is needed. In parallel, interventions outside of the education sector should focus on boosting economic diversification in the country in general. Sustained income generating activities for poor households that reduce the opportunity costs of SES children─particularly boys─will help ensure higher retention and completion rates.

61. Results-oriented training programs and follow-up. A train-the-trainer model was used to train teachers at scale. Teachers who underwent training reported, however, that they could not transfer knowledge and skills through this cascading approach. Given the lack of capacity developed through teacher training programs, it is recommended that MOES adopt a results-oriented training approach. The goals and objectives of training programs may be competency-based with hands-on, experiential learning opportunities to practice skills and understand concepts. Follow-up to training can include monitoring and evaluation at classroom-level, where teachers apply learned skills and concepts, and at school-level, where school leaders reflect on the application of strategies in their schools’ contexts. Future projects may consider funding innovative teacher training approaches to improve learning outcomes. 62. Gender team identified and engaged at project design. Gender or social development officers should be identified and engaged during program design to ensure active involvement. It is also recommended that review missions devote time for stakeholder -wide consultation and review of GAP implementation throughout the life of a project. Follow-up on gender equity issues post-program implementation may be carried forward by the resident mission to ensure continuation of program interventions and to inform future projects.

63. Future monitoring. The PMU may consider a school level evaluation to understand reasons for the imbalance in supply and demand of key interventions (textbooks, dormitories, laboratory, and music equipment) and to revise distribution while better meeting the needs of beneficiaries. The findings would feed directly into strengthening the ongoing Education for Employment Sector Development Program and any future projects. The PMU may also consider evaluating the remedial support interventions used to explore if there are methods now worth scaling to minimize the impacts of intermittent school closings due to COVID-19.

64. Future projects may consider a life-cycle approach to constructing and managing school buildings and dormitories that considers O&M of building assets. This approach can inform strategic decisions regarding capital works investment, building maintenance, and management. It can help determine the costs of owning and operating an asset to ensure service continuity.

65. Timing of the program performance evaluation report. The report may be prepared in 2023 to better measure the project impact. This will also likely result in a more precise and comprehensive assessment as to sustainability of the project and program policy actions.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Indicators and Targets at

Appraisal Achievements at Completion

Impact Improved educational attainment in the Lao PDR

By 2023 Share of young adults 15–24 having completed at least 9 years of schooling rises at least 20% from 2012 levela by 2020

In SY2012/13, 32.2% of young adults 15–24 completed at least 9 years of schooling. Source: Laos Statistics Bureau 2012/13: Laos Expenditure and Consumption Survey

Gross enrolment rate for girls in LSE at least 75.0% (baseline 55.5% in SY2009/10)

Achieved. Gross enrolment rate for girls in LSE is 81.2% in SY2017–18, representing an increase of 46.3%. Source: MOES. Annual School Census 2017–18 Gross enrolment rate for girls in LSE is 81.9% in SY2015–16 SOURCE: MOES Education & Sports Sector Development Plan 2021–2025 SOURCE: MOES Education & Sports Sector Development Plan 2021–2025

Ratio of number of girls to boys enrolled in secondary education at least 1.00 (baseline 0.81 in SY2009/10)

Substantially achieved. Ratio of number of girls to boys enrolled in secondary education is 0.92 in SY2017–18, representing an increase of .11 toward target of 1.0. Source: MOES. Annual School Census 2017–18

Ratio of total secondary to primary enrollment at least 0.60 (f rom baseline of 0.47 in SY2009–2010).

Substantially achieved. Ratio of total secondary to primary enrolment is 0.57 in SY2017–18, representing an increase of 0.10 toward target of 0.60. Source: MOES. Annual School Census 2017–18

Outcome

i. Enhanced equity, quality, and efficiency of secondary education in the Lao PDR

By 2018 Percentage of female primary school graduates that enter LSE in poorest districts at least 81% (baseline 76% in SY2009/10)

Achieved. Percentage of female primary school graduates that entered LSE in poorest districts was 91.64% in SY2017–18, representing an increase of 20.6%. Source: Statistics and Information Technology Center of Education and Sports (MOES). Survival rate in upper secondary education by grade (Public and private). Table 47.

Appendix 1 17

Design Summary Performance Indicators and Targets at

Appraisal Achievements at Completion

At least 75% of secondary teachers qualif ied (baseline 68% in SY2009/10)

Achieved. 88.1% of secondary school teachers are qualif ied, representing an increase of 29.6%. Based on teacher census conducted in SY2017–2018 in 30 poorest districts (this activity supported by SESDP), the data showed that there was a total of 4,230 secondary school teachers, 3,726 teachers with diploma, bachelor degree and master degree covering 88.09% while teachers with qualification lower than diploma were 504, covering 11.91% and 70% of bachelor degree and master degree taught upper secondary classes while both diploma and master degree teachers taught lower secondary classes. Source: SY2017018 Teacher Census

The LSE survival rate to grade 8 rises to 89% for girls and 87% for boys (baseline 79% for girls and 77% for boys in SY2007/08), raising internal efficiencyb

Partially achieved. The MOES conducted cohort analysis to assess LSE survival rate due to unavailability of data following a shif t in the structure of the secondary education system. Based on cohort analysis of transition rate through lower secondary for boys and girls who commenced grade 6 in 2015 and 2016, LSE survival rate to grade 8 in SY2017–2018 was 81% for girls and 80% for boys which are above the baseline yet below the target. Source: MOES. Annual School Census 2017–18

Survival rate f rom grade 6 through completion of grade 11 rises to 66% for girls and 64% for boys (baseline 51% for girls and 49% for boys in SY2007/08)

Partially achieved. The restructuring of LSE and USE precluded precise calculation of transition rates across grades. A proxy indicator was observed through cohort analysis of survival rate from grade 6 through completion of grade 12 as per restructured upper secondary education system: 55% for both girls and boys (SY2018/19) which is above the baseline yet below the target .

Outputs 1. Expanded access to secondary education

Program Stipend selection criteria approved by MOES by 2013

Achieved. Decree No. 5775 on Approval and Utilization of Beneficiary Selection Criteria and Interim Guidelines for Implementing MOES Needs-Based and Merit-Based Stipend Program at all Post Primary Levels approved by MOES on 31 December 2013.

Policy on SES dormitories developed by 2016 (or earlier)

Achieved. Decree No. 8338 on Administration and Management of

18 Appendix 1

Design Summary Performance Indicators and Targets at

Appraisal Achievements at Completion

Dormitories for Secondary Education approved by MOES on 16 November 2016.

The MOE budget line for SES stipends introduced by 2016

Achieved with delay. Decree No. 305 on Stipends for Poor and Disadvantaged Students in General Education approved by Prime Minister on 15 December 2017 was followed by approved FY2018 budget inclusive of a new budget line for the stipend program.

Project In target areas, by end of 2018: 30 new LSE schools and 15 USE classroom blocks built and operational

Achieved. 30 new LSE schools and 15 USE classroom blocks constructed and operational

At least 60 dormitories constructed at LSE level and 15 dormitories at USE level, with at least 50% of spaces for girls

Achieved. 60 sex-segregated dormitories constructed at LSE level and 15 dormitories at USE level with capacity for 26 male and 26 female students

At least 1,740 poor LSE students and 1,200 poor USE students benef it from stipends, with at 50% provided to girls and 80% to ethnic students

Achieved. In SY2014/15, 1,740 poor LSE students (54% female and 90% are from ethnic groups) received stipends and 1,200 poor USE students received stipends, (50% of whom were girls and 89% are f rom ethnic groups).

Access-enhancing interventions completed at 60 LSE schools and 15 USE schools using access grant

Achieved. Access grants provided in three cycles to 60 LSE schools and in 2 cycles to 15 USE schools.

Total LSE enrolment in 30 target districts increases f rom 33,656 in SY2009/10 to 44,000 by SY2017/18

Achieved. Total LSE enrollment in 30 target districts increased to 65,967 in 2017/18, 50% greater than the target of 44,000.

2. Improved delivery of new SES curricula

Program Revised preservice teacher training curriculum approved for LSE (by 2013) and USE (by 2016)

Achieved. Decree No. 3799 on Endorsement and Approval of Secondary School Teacher Education Curriculum Utilization for Bachelors Degree Qualif ication approved by MOES on 9 September 2013 covering preservice teacher training for both LSE and USE teachers.

Pilot test of new rural teacher deployment scheme launched by 2013 and analyzed by 2016

Achieved. Decree No. 4631 on Approval and Deployment of Sciences Teachers to Teach in Lower Secondary Schools in Remote Areas of Target Districts under the program approved by MOES on 23 October 2013. Analytical Report of the Pilot Test of the Placement Scheme for Newly Graduated Teachers Recruited to Remote Areas f inalized by MOES in October 2016.

Appendix 1 19

Design Summary Performance Indicators and Targets at

Appraisal Achievements at Completion

Guidelines for SES teacher recruitment and utilization and for teacher performance M&E (with operational manual) approved by 2013.

Achieved. Decree No. 0047 on Approval and Announcement on the Use of the Guidelines on Annual Teacher Recruitment and Utilization Planning approved by MOES on 7 January 2014.

New curriculum materials introduced in all LSE grades by 2013, and approved for all USE grade by 2016

Achieved. The DSE Memorandum No. 950 on Reporting on the Outcome of M4 Teacher Training [In-service Teachers] on How to Use M4 Textbooks and Teacher Guides dated 11 October 2013 reports MOES nationwide introduction of LSE curriculum into schools.

Project Introduction of new LSE curriculum f inished by SY2013/14, with 12,000 grade 8–9 teachers trained (at least 50% female) and 182,130 textbooks distributed nationwide

Achieved. New LSE curriculum f inished in SY2013/14, with 13,227 grade 8–9 teachers trained. Against a 50% target of 12,000 that is 6,000 female teachers, 6253 teachers were trained. 193,000 sets of Grade 8 and 9 textbooks distributed nationwide. (i.e., one set per student for Grade 8 and one per 3 students for Grade 9).

Year-by-year, starting in 2013, new grade 10–12 textbooks and teacher guides developed and approved

Achieved. New grade 10–12 textbooks and teacher guides developed yearly from 2013 to SY2016–17.

Introduction of new USE curriculum f inished by SY2016/17, with 7,500 grade 10–12 teachers trained (at least 50% female) and 52,590 textbooks distributed nationwide

Achieved. New USE curriculum f inished in SY2014/15, with 11,853 grade 10–12 teachers trained inclusive of 6,217 female teachers (52%) and 379,579 Grade 12 textbooks distributed nationwide.

3. Strengthened SES management

Program Education share of national budget increases f rom 15.5% in 2010 to 18.0% by 2016

Partly Achieved. The 18% budget share target was not met. MOF reported that the estimated share of the total budget allocated to education for FY2010 was just above 14%. Although the aggregate target was missed, the government has signif icantly increased and rebalanced the MOES budget. From the baseline year FY2009/10 to FY2018, (i) MOES’ total budget has increased 2.5-fold; (ii) MOES’ recurrent budget has increased 3.8-fold; and (iii) MOES’ nonsalary recurrent budget has increased 5.1-fold.

The MOE budget allocation for nonsalary recurrent expenditure as a share of MOE total budget rises f rom 6.5% in 2010 to 11.0% by 2016

Achieved with delay. The MOF and MOES’ Department of Finance confirm that non-salary recurrent expenditures represent a 12.9% share of the total MOES budget for FY2018.

Policy for introducing block grants and a manual for their management approved by

Achieved.

20 Appendix 1

Design Summary Performance Indicators and Targets at

Appraisal Achievements at Completion

2013, with LSE block grants budgeted for and released in 30 selected districts by 2016

Decree No. 2423 on Approval of the Utilization of the Manual on the Management and Utilization of the School Block Grant approved by MOES on 29 July 2011. Decree No. 1293 on Abolition of School Fees per Provision of School Block Grants approved by MOES on 6 September 2012. The MOES began releasing block grants to both LSE and USE schools nationwide in SY2012/13. Figures certif ied by MOES’ Department of Finance confirm that total block grants released to SES schools reached KN31.9 billion in SY2017/18.

The SES school network mapping completed by 2013, to guide planning for future capital investment

Achieved. The MOES completed a nationwide school network mapping in 2013 as summarized in Report on Nationwide School Network Mapping Exercise in Lao PDR. Decree No. 1842 on Minister’s Instruction and Order Directing on the Use of School Network Mapping to Guide Planning for Future Capital investment approved by MOES on 31 December 2013.

The MOE communication strategy developed, approved, and launched by 2013

Achieved. Decree No. 5775 on Approval and Utilization of the Communication Strategy approved by MOES on 31 December 2013.

Revised decree on private education approved by 2016

Achieved. Revision to the 1995 decree originally released by the PMO (Minister’s Decree No. 1775 on Private Education Institutions) approved by MOES on 8 May 2018.

Policy (2013) and strategy (2016) for ICT as tool to promote grade 1–12 education objectives approved

Achieved with delay. Decree No. 5776 on Approval and the Utilization of the Policy on ICT for Lao Education approved by MOES on 31 December 2013. Decree No. 1909 on Endorsement and Promulgation for Utilization of the Manual on Operationalizing the Policy on ICT for the Lao PDR Education for General Education approved by MOES on 17 May 2018.

Appendix 1 21

Design Summary Performance Indicators and Targets at

Appraisal Achievements at Completion

Project The PPAs functioning in 75 LSE and USE schools in target areas, each with at least 40% female representation

Achieved The PPAs functioning in 75 LSE and USE schools in target areas, with 150 PPA members trained inclusive of 69 female members (46%) and 87 members (58%) belonging to ethnic groups.

Capacity building programs completed for 1,055 staf f of central-to district-level education sector offices

Achieved. Capacity building programs completed for 1,265 staf f of central- to district-level education sector of fices in 30 target districts and 15 provinces.

1,200 (all) SES school principals complete 5-day training on school improvement, followed by annual seminars for 1,200 principals and 1,200 senior female teachers

Partly Achieved. Total of 1,563 SES school principals, inclusive of 2,059 (56%) females, completed 5-day training on school improvement. Annual seminars were not conducted. PMU indicated that they required more funding for the follow up annual seminars to cover the costs of travel and other related expenses. The gender performance indicator was not achieved.

DSE = Department of Secondary Education , GER = Gross enrolment rate, Lao PDR = Lao People’s Democratic Republic, LSE = lower secondary education, MOES

= Ministry of Education and Sports, MOF = Ministry of Finance, MOJ = Ministry of Justice, MTR = midterm review, MOU = memorandum of understanding, PMO =

Prime Minister’s Office, SES = secondary education subsector, SESDP = Secondary Education Sector Development Program, USE = upper secondary education a ADB. 2011. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Grant to Lao People’s Democratic Republic: Secondary

Education Sector Development Program. Manila

22 Appendix 2

SUMMARY OF COMPLIANCE WITH POLICY ACTIONS FOR EACH TRANCHE

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

Output 1: Expanded Access to Secondary Education Stipends for disadvantaged students

T1.(i).1 The Ministry of Education (MOE) shall have approved criteria for benef iciary selection as well as an interim guidelines for implementing MOE-administered stipends for disadvantaged students at all post-primary levels, including targets for female and ethnic group students

Completed. The MOES approved on 31 December 2013 (Decree No. 5775 on Approval and Utilization of Benef iciary Selection Criteria and Interim Guidelines for Implementing MOES Needs-Based and Merit-Based Stipend Program at all Post Primary Levels) the noted selection criteria and interim implementation guidelines, which include targets for female and ethnic group students. .

T2.(i).1 The MOE shall have resourced and launched an expanded secondary education stipend program for disadvantaged students, including targets for female and ethnic group students

Completed. The Prime Minister approved on 15 December 2017 the introduction of a new government-budgeted, needs-based stipend program (Decree No. 305 on Stipends for Poor and Disadvantaged Students in General Education). The MOES approved on 5 March 2018 the release of stipend payments to 1,000 LSE grade 6 benef iciaries, of whom 663 are female and 985 are f rom ethnic groups (Decree No. 968 on Stipends for M1 Poor and Disadvantaged Students in General Education, 2018). The program is expected to cover 4,000 grade 6–9 students by SY2020/21).

Dormitories to enhance equitable access

T1.(i).2 The MOE shall have completed a review of existing dormitories for secondary

Completed. In 2013, MOES completed a Review of Existing Dormitories for Secondary

T2.(i).2 The MOE shall have adopted a policy on dormitories for secondary education, including

Completed. The MOES approved on 16 November 2016 the

1 First policy loan tranche was released on 30 June 2014. Delays were due to MOES approval of policy on block grants (T1.(iii).1), as well as due to MOES

consultation with other development partners on policies related to their support. 2 Second policy loan tranche was released on 18 November 2018. Delays were due to MOES securing necessary intergovernmental approvals for timely stipend

release and for adding new budget line to national budget and allocating actual budget (T2.(i).1 and T2.(iii).1).

Appendix 2 23

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

education and their impact on equitable access

Education and Their Impact on Equitable Access, and disseminated this to MOES departments and centers, provincial education offices, and universities on 25 December 2013 (MOES Cabinet Notice No. 6529).

guidelines on ensuring their impact on equitable access

policy, which includes guidelines on ensuring that dormitories promote equitable access (Minister’s Decree No. 8338 on Administration and Management of Dormitories for Secondary Education). To support school-level operationalization of the policy, MOES promulgated on 19 March 2018 a manual to be used by SES schools (MOES Cabinet Notice No. 1080 on the Promulgation and Use of the Manual for School-Level Management of Secondary Education Dormitories).

Output 2: Improved Delivery of New Secondary Education Subsector (SES) Curricula Pre-service teacher training, recruitment, deployment, and utilization planning

T1.(ii).1 To align with the new SE curricula in schools, MOE shall have approved a revised national curriculum for higher diploma programs for pre-service training of lower secondary education (LSE) teachers at all teacher education institutes (TEI)

Completed. The MOES approved on 9 September 2013 (Minister’s Decree No. 3799 on Endorsement and Approval of Secondary School Teacher Education Curriculum Utilization for Bachelor Degree Qualif ication [to Teach From M1–M7] Structure 12+4) a revised national curriculum covering pre-service training of both LSE and upper secondary education (USE)

T2.(ii).1 The MOE shall have (i) approved a revised national curriculum for bachelor’s degree programs for pre-service training of upper secondary education (USE) teachers at all faculties of education (FOE); and (ii) minimum quality standards for all TEIs and FOEs

Completed. The MOES approved on 9 March 2016 procedures for instituting minimum quality standards for all TEIs and FOEs (Minister’s Decree No. 1195 on Approval to Pilot/Trial the Guidelines Manual for the Establishment of Centers of Development and Centers of Excellence in Teacher Education). MOES approved on 6 April 2018 accreditation of

24 Appendix 2

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

teachers at all TEI as well as faculties of education.

f irst batch of TTIs based on the minimum standards (Minister’s Decree No. 1375 on Accrediting Luang Prabang, Savannakhet, and Bankeun Teacher Training Institutions [TTIs] to Of fer Selected STEP Majors from SY2018/19).

T1.(ii).2 The MOE shall have commenced pilot testing of a placement scheme for newly graduated teachers recruited to remote areas

Completed. The MOES approved on 23 October 2013 (Minister’s Decree No. 4631 on Approval and Deployment of Sciences Teachers to Teach in Lower Secondary Schools in Remote Areas of Target Districts under the program) the deployment of an initial batch of 26 newly graduated teachers to participate in the pilot test of the Graduate Teacher Placement Scheme.

T2.(ii).2 The MOE shall have completed implementation and analysis of the pilot test of a placement scheme for newly graduated teachers recruited to remote areas, and approved operational guidelines to implement a nationwide placement scheme in accordance with Decree #389/PM dated 9 September 2010

Completed. The MOES f inalized in October 2016 analysis of the completed pilot test (Analytical Report of the Pilot Test of the Placement Scheme for Newly Graduated Teachers Recruited to Remote Areas). The MOES approved on 19 April 2018 operational guidelines that span all new teachers and include in-kind incentives and other mechanisms to promote the placement and retention of newly graduated teachers in remote areas (Minister’s Decree No. 1478 on Approval and Announcement for Use of the Guidelines on the Selection and Recruitment of Newly Graduated Teachers for

Appendix 2 25

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

Preschool and General Education).

T1.(ii).3 The MOE shall have approved a guidelines for use by provincial education services (PES), district education bureaus (DEB), and concerned institutions in developing annual teacher recruitment and utilization plans

Completed. The MOES approved on 7 January 2014 (Minister’s Decree No. 0047 on Approval and Announcement on the Use of the Guidelines on Annual Teacher Recruitment and Utilization Planning) the noted guidelines, and disseminated these for use by relevant MOES departments and all provincial education and sports services (PESS) and district education and sports bureaus (DESB) nationwide in developing annual teacher recruitment and utilization plans.

Improving in-service teacher performance

T1.(ii).4 The MOE shall have approved a guidelines and adopted an operational manual for teacher performance monitoring and evaluation

Completed. The MOES approved and adopted on 5 December 2013 (MOES Directive No. 1811 on Civil Servant Teachers Performance Monitoring and Evaluation and Salary Grade-level Promotion) the consolidated Guidelines and Operational Manual for Teacher Performance Monitoring and Evaluation.

SES curriculum reform

T1.(ii).5 The MOE shall have completed the cohort-based introduction of the new LSE curriculum, including

Completed. In school year (SY) 2013/14, MOES successfully introduced the new fourth

T2.(ii).3 The MOE shall have approved new textbooks for all USE grades, ensuring

Completed. The MOES approved on 25 April 2014 new grade 10–12 textbooks as well

26 Appendix 2

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

nationwide textbook and teacher guide distribution and related teacher training for fourth year LSE in SY2013/14

year LSE (M4) curriculum into schools nationwide, following completion of teacher training in August 2013, as reported by the Department of Secondary Education (DSE) to the MOES minister on 11 October 2013 (DSE Memorandum No. 950 on Reporting on the Outcome of M4 Teacher Training [In-service Teachers] on How to Use M4 Textbooks and Teacher Guides).

these are sensitive to gender, ethnicity, and disability

as teacher guides, which are sensitive to gender, ethnicity, and disability (MOES Cabinet Notice No. 985 on the Use of Textbooks, Teacher Guides, and Instructional Materials for Upper Secondary Education Developed under the New Curriculum). Introduction of the new materials nationwide was completed during SY2014/15–SY2016/17.

Output 3: Strengthened Secondary Education Subsector Management Enhanced resourcing and planning for education

T2.(iii).1 The Government of Lao PDR shall have allocated to the education sector a share of the total Government budget not less than 18.0%

Partially Completed. The 18% budget share target was not yet been met. The MOF, via a 1 June 2018 letter signed by the minister, requested the waiver of this policy action, and reported to ADB that the estimated share of the total budget allocated to education for FY2010 was just above 14%. Although the aggregate target was missed, the government has significantly increased and rebalanced the MOES budget. From the baseline year FY2009/10 to FY2018, (i) MOES’ total budget has increased 2.5-fold; (ii)

Appendix 2 27

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

MOES’ recurrent budget has increased 3.8-fold; and (iii) MOES’ nonsalary recurrent budget has increased 5.1-fold.

T2.(iii).2 The MOE’s budget allocation for non-salary recurrent expenditure (excluding salaries and allowances) shall be not less than 11.0% of MOE’s total budget

Completed. Figures certif ied by MOF and MOES’ Department of Finance confirm that nonsalary recurrent expenditures represent a 12.9% share of the total MOES budget for FY2018.

T1.(iii).1 The MOE shall have approved (i) a policy for introducing block grants to cover recurrent costs for all schools and education institutions at all levels within the MOE system; and (ii) a supporting block grant management manual

Completed. Following MOES’ approval on 29 July 2011 (Decree No. 2423 on Approval of the Utilization of the Manual on the Management and Utilization of the School Block Grant [Government Budget]) and other policy documents, MOES promulgated on 6 September 2012 (MOES Decree No. 1293 on Abolition of School Fees per Provision of School Block Grants) and extended block grant implementation to cover all schools and education institutions under MOES by SY2012/13, with the introduction of block grants for preschools and LSE and USE schools nationwide.

T2.(iii).3 The MOE shall have budgeted for and released block grants to cover recurrent costs in LSE schools in all districts def ined as poorest and educationally disadvantaged districts as of May 2011

Completed. The MOES began releasing block grants to both LSE and USE schools nationwide in SY2012/13. Figures certif ied by MOES’ Department of Finance conf irm that total block grants released to SES schools reached KN31.9 billion in SY2017/18.

28 Appendix 2

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

T1.(iii).2 The MOE shall have (i) completed a nationwide SES school network mapping; and (ii) issued a decree directing PES and DEBs on use of the school network mapping to guide planning for future capital investment

Completed. In 2013, MOES completed a nationwide school network mapping, as summarized in a Report on Nationwide School Network Mapping Exercise in Lao PDR submitted to ADB. Subsequently, MOES approved on 31 December 2013 (Decree No. 1842 on Minister’s Instruction and Order Directing on the Use of School Network Mapping to Guide Planning for Future Capital investment).

Improved stakeholder mobilization and ICT strategy

T1.(iii).3 The MOE shall have developed, approved, and initiated implementation of a communication strategy within the MOE system and to the general public

Completed. The MOES approved on 31 December 2013 (Minister’s Decree No. 5775 on Approval and Utilization of the Communication Strategy [2013–2020] to Support the Education Reform Agenda), to commence implementation of the noted communication strategy.

T2.(iii).4 The Prime Minister’s Off ice (PMO) shall have approved a revised decree on private education that is in alignment with the Investment Law and supports implementation of the Strategy for Promoting Private Education

Completed. Following extensive reviews by the PMO and MOJ, MOJ delegated approval authority to the MOES minister. MOES approved on 8 May 2018 a revision to the 1995 decree originally released by the PMO (Minister’s Decree No. 1775 on Private Education

Appendix 2 29

Output and Policy Area

Policy Actions by end 20131 Monitoring Indicators for Tranche 1

Policy Actions by end of 20162

Monitoring Indicators for Tranche 2

Institutions). T1.(iii).4 The MOE shall have

approved a policy on appropriate information and communication technology (ICT) to support school education (grades 1–12), which is dictated by educational objectives and clearly prioritizes equity and sustainability

Completed. The MOES approved on 31 December 2013 (Minister’s Decree No. 5776 on Approval and the Utilization of the Policy on ICT for Lao Education) the Policy of the Ministry of Education and Sports on Information Communication Technology for Lao Education (ICT4LE) for Grades 1–12 and ordered its use, effective immediately. The noted policy stresses the need for ICT-related investments in primary and secondary education to be dictated by educational objectives, as well as the need to prioritize equity and sustainability.

T2.(iii).5 The MOE shall have approved a strategy for implementing the policy on appropriate ICT to support school education (grades 1-12), which is dictated by educational objectives and clearly prioritizes equity and sustainability

Completed. The MOES approved on 17 May 2018 guidelines detailing MOES’ strategy for fully operationalizing the policy, including implementing directives on ensuring that any ICT-related investments in primary and secondary education will be screened in terms of impacts on educational objectives, equity, and sustainability (Minister’s Decree No. 1909 on Endorsement and Promulgation for Utilization of the Manual on Operationalizing the Policy on ICT for the Lao PDR Education for General Education).

30 Appendix 3

PROJECT COST AT APPRAISAL AND ACTUAL ($ million)

Appraisal Estimate Actual

Item

Foreign

Exchange

Local

Currency Total Cost

Foreign

Exchange

Local

Currency Total Cost

A. Investment Costs 1. Civil Works and Land

a. Civil works 0.28 4.76 5.04 5.11 2.19 7.30

b. Land 0.00 1.43 1.43 0.00 2.81 2.81

2. Furniture and equipment 1.55 0.67 2.22 1.12 0.75 1.87

3. Teaching and learning materials 1.84 2.43 4.28 2.08 2.08 4.15

4. Training and professional development 0.06 4.63 4.69 0.00 8.29 8.29

5. Consultant services

a. International 3.16 0.00 3.16 2.88 0.72 3.59

b. National 0.00 1.12 1.12 1.67 0.00 1.67

c. Professional-level local contract staff 0.00 0.37 0.37 0.41 0.00 0.41

6. Stipends and other grants 0.00 1.51 1.51 1.42 0.00 1.42

7. Taxes and duties 1.47 1.20 2.67 0.00 0.00 0.00

Subtotal (A) 8.36 18.13 26.49 14.69 16.83 31.52

B. Recurrent Cost

1. Logistical support and miscellaneousa 0.00 0.65 0.65 0.21 0.49 0.70

2. Monitoring and evaluation 0.20 0.21 0.41 0.58 0.00 0.58 3. Office spaceb 0.00 0.73 0.73 0.06 0.01 0.07

4. Utilities and running costs 0.00 0.18 0.18 0.02 0.00 0.02

5. Staff salary 0.00 0.97 0.97

Subtotal (B) 0.20 1.77 0.97 0.87 1.47 2.34

C. Contingencies

1. Physical 0.51 1.06 1.57 0.00 0.00 0.00

2. Price 0.05 2.28 2.33 0.00 0.00 0.00

Subtotal (C) 0.56 3.34 3.90 0.00 0.00 0.00

Total (A+B+C) 9.12 23.24 32.36 15.56 18.30 33.86

Source: Asian Development Bank estimates. a Included Asian Development Bank-financed secretarial staff and drivers for the Project Management Unit (PMU), PMU and Implementation Unit (IU) travel and

related costs for field inspection, and PMU and IU office supply b In-kind contributions.

Appendix 4 31

PROJECT COST BY FINANCIER

Table A4.1: Project Cost at Appraisal by Financier ($ million)

ADBa

Governmentb Total Cost

Amount

% of Cost

Category Amount

% of Cost

Category Amount

Taxes and

Duties

Item

A. Investment Costs

1. Civil works and Land

a. Civil works 5.58 100.0 0.00 0.0 5.58 0.0 b. Land 0.00 0.0 1.43 100.0 1.43 1.43

2. Furniture 2.62 100.0 0.00 0.0 2.62 0.0 3. Teaching and learning materials 4.89 100.0 0.00 0.0 4.89 0.0

4. Training and professional development 4.69 100.0 0.00 0.0 4.69 0.0

5. Consultant services 0.0

a. International 3.91 100.0 0.00 0.0 3.91 0.0

b. National 1.40 100.0 0.00 0.0 1.40 0.0

c. Professional-level local contract staff 0.47 100.0 0.00 0.0 4.47 0.0

6. Stipends and other grants 1.51 100.0 0.00 0.0 1.51 0.0 Subtotal (A) 26.06 94.60 1.43 5.4 26.49 1.43

B. Recurrent Costs

1. Logistical support and miscellaneousc 0.65 100.0 0.00 0.0 0.65 0.0 2. Monitoring and evaluation 0.41 100.0 0.00 0.0 0.41 0.0

3. Office space and staff (in-kind) 0.00 0.0 0.73 100.0 0.73 0.73 4. Utilities and running costs 0.00 0.0 0.18 100.0 0.18 0.18

Subtotal (B) 1.06 53.9 0.91 46.1 1.97 0.91 Total Base Cost (A+B) 26.12 91.80 2.34 8.2 28.46 2.34

C. Contingencies

1. Physical 1.57 99.5 0.01 0.5 1.57 0.01

2. Price 2.31 99.3 0.02 0.7 2.33 0.02

Subtotal (C) 3.88 99.40 0.02 0.3 3.90 0.02 Total Project Cost (A+B+C) 30.00 92.7 2.36 7.3 32.36 2.36

ADB = Asian Development Bank.

Source: ADB estimates. a Includes taxes and duties of $2.67 million financed by the ADB grant. b Includes (i) in-kind contribution of land, office space, and personnel (estimated at $2.16 million); (ii) utilities and other cash running costs ($0.18 million); and (ii)

related contingencies on cash costs ($0.02 million). C Includes ADB-financed secretarial staff and drivers for the Project Management Unit (PMU), PMU and Implementation Unit (IU) travel and related costs for field inspection and PMU and IU office supplies.

32 Appendix 4

Table A4.2: Project Cost at Completion by Financier

($ million) ADB

Government Total Cost

Amount % of Cost Category Amount

% of Cost Category Amount

Taxes and Duties

Item

A. Investment Costs

1. Civil works and Land

a. Civil works 7.30 100.0 0.00 0.0 7.30 0.73 b. Land 0.00 0.0 2.81 100.0 2.81 0.00

2. Furniture 1.87 100.0 0.00 0.0 1.87 0.19

3. Teaching and learning materials 4.15 100.0 0.00 0.0 4.15 0.42

4. Training and professional development 8.29 100.0 0.00 0.0 8.29 0.00

5. Consultant services 0.00 a. International 3.59 100.0 0.00 0.0 3.59 0.00

b. National 1.67 100.0 0.00 0.0 1.67 0.00

c. Professional-level local contract staff 0.41 100.0 0.00 0.0 0.41 0.00

6. Stipends and other grants 1.42 100.0 0.00 0.0 1.42 0.00 Subtotal (A) 28.72 91.10 2.81 8.9 31.53 1.33

B. Recurrent Costs

1. Logistical support and miscellaneous 0.70 100.0 0.00 0.0 0.70 0.00 2. Monitoring and evaluation 0.58 100.0 0.00 0.0 0.58 0.00

3. Office space (in-kind)a 0.00 0.0 0.07 100.0 0.07 0.00 4. Utilities and running costs 0.00 0.0 0.02 100.0 0.02 0.00

5. Staff salary 0.00 0.00 0.97 100.0 0.97 Subtotal (B) 1.28 54.7 1.06 45.3 2.34 0.00 Total Base Cost (A+B) 30.00 88.60 3.86 11.4 33.86 1.33

C. Contingencies

1. Physical 0.00 0.00 0.00 0.0 0.00 0.00

2. Price 0.00 0.00 0.00 0.0 0.00 0.00 Subtotal (C) 0.00 0.00 0.00 0.0 0.00 0.00

Total Project Cost (A+B+C) 30.00 88.6 3.86 11.4 33.86 1.33

ADB = Asian Development Bank.

Source: ADB estimates.

Appendix 5 33

PROJECT COST BY OUTPUT ($ million)

Total

Output 1

Output 2 Output 3

Amount % of item Amount % of item Amount % of item

Item

A. Investment Costs

1. Civil works and Land

a. Civil works 7.30 7.30 100.0 0.00 0.0 0.00 0.0 b. Land 1.47 1.47 100.0 0.00 0.0 0.00 0.0

2. Furniture 1.87 0.56 30.0 1.16 62.0 0.15 8.0

3. Teaching and learning materials 4.15 0.00 0.0 4.15 100.0 0.00 0.0

4. Training and professional development 8.29 0.17 2.0 7.13 86.0 0.99 12.0

5. Consultant services

a. International 3.59 0.36 10.0 1.44 40.0 1.80 50.0

b. National 1.67 0.53 32.0 0.62 37.0 0.52 31.0

c. Professional-level local contract staff 0.41 0.00 0.0 0.04 10.0 0.37 90.0

6. Stipends and other grants 1.42 1.42 100.0 0.00 0.0 0.00 0.0 7. Taxes and duties 1.33 1.00 75.0 0.33 25.0 0.00 0.0

Subtotal (A) 31.52 12.82 41.0 14.88 47.0 3.83 12.0

B. Recurrent Costs

1. Logistical support and miscellaneous 0.70 0.00 0.00 0.00 0.0 0.70 100.0 2. Monitoring and evaluation 0.58 0.07 12.0 0.09 15.0 0.43 73.0

3. Office space (in-kind) 0.07 0.00 0.0 0.00 0.0 0.07 100.0 4. Utilities and running costs 0.02 0.00 0.0 0.00 0.0 0.02 100.0

5. Staff salary 0.97 0.34 35.0 0.21 22.0 0.42 43.0 Subtotal (B) 2.34 0.41 17.0 0.30 13.0 1.63 70.0 Total Base Cost (A+B) 33.86 13.23 39.0 15.18 45.0 5.45 16.0

C. Contingencies

1. Physical 0.00 0.00 0.0 0.00 0.0 0.00 0.0

2. Price 0.00 0.00 0.0 0.00 0.0 0.00 0.0

Subtotal (C) 0.00 0.00 0.0 0.00 0.0 0.00 0.0 Total Project Cost (A+B+C) 33.86 13.23 39.0 15.18 45.0 5.45 16.0

Source: Asian Development Bank estimates.

34 Appendix 6

DISBURSEMENT OF ADB GRANT PROCEEDS

Table A6.1: Annual and Cumulative Disbursement of ADB Grant Proceedsa ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount % of Total Amount % of Total

2012 3.96 13.20 3.96 13.21

2013 5.58 18.61 9.54 31.81

2014 7.38 24.61 16.92 56.42

2015 6.96 23.22 23.88 79.63

2016 3.74 12.46 27.62 92.10

2017 1.67 5.56 29.29 97.66

2018 0.70 2.34 29.99 100.00 2019 0.00 0.00 29.99 100.00

2020 0.00 0.00 29.99 100.00

Total 29.99 100.0 29.99 100.00

ADB = Asian Development Bank.

Source: Asian Development Bank. a Disbursement projections are from S-curve baseline projections. Changes in projections included (i) AM of grant

review mission 814 February 2017 and SERD’s memo dated 24 November 2017–revision in contract award and

disbursement projections for 2017 and beyond; (ii) SERD’s memo dated 5 February 2019–reallocation of grant

proceeds reflecting the approved 6-month extension of the grant closing date from 30 June 2019 to 31 December 2019;

(iii) SERD’s memo dated 16 December 2019 reallocation of grant proceeds adjust based on utilization of saving to cover consulting services, teaching and learning materials, logistic support and M&E, and (iv) financial closure,

cancellation of unused grant proceeds.

Figure A6: Projection and Cumulative Disbursement of ADB Grant Proceeds

($ million)

Source: Asian Development Bank.

2012 2013 2014 2015 2016 2017 2018 2019 2020

Projection 2.90 7.90 12.00 17.20 22.00 26.50 29.00 30.00 30.00

At Completion 3.96 9.54 16.92 23.88 27.62 29.29 29.99 29.99 29.99

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Disbursement

Projection At Completion

Appendix 6 35

Table A6.2: List of Contract Awards and Disbursement Projections Version Date Comment

1 9 January 2012 Project Effectiveness

2 31 December 2013 Actualized (annual)

3 25 March 2014 PPFD-led unlocking

4 31 December 2014 Actualized (annual)

5 31 December 2015 Actualized (annual)

6 26 April 2016 PPFD/SERD-led unlocking (eOps clean-up)

7 31 December 2016 Actualized (annual)

8 17 April 2017 Revised projections (L2777)

9 31 December 2017 Actualized (annual)

10 18 January 2019 Adjusted (Product Closing)

11 31 December 2018 Actualized (annual)

12 31 December 2019 Actualized (annual)

13 26 August 2020 Adjusted (Project Closing)

eOps = eOperations, PPFD = Procurement, Portfolio, and Financial Management Department, SERD = Southeast

Asia Department.

Source: Asian Development Bank.

36 Appendix 7

CONTRACT AWARDS OF ADB GRANT PROCEEDS

Table A7: Annual and Cumulative Contract Awards of ADB Grant Proceedsa ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount % of Total Amount % of Total

2012 6.81 22.72 6.81 22.72

2013 4.71 15.69 11.52 38.41

2014 7.01 23.36 18.53 61.77

2015 3.46 11.55 21.99 73.33

2016 2.61 8.72 24.60 82.04

2017 1.47 4.90 26.07 86.94

2018 1.98 6.59 28.05 93.53 2019 1.89 6.30 29.94 99.83

2020 0.05 0.17 29.99 100.00

Total 29.99 100.0 29.99 100.00

ADB = Asian Development Bank.

Source: Asian Development Bank. a Contract Award projections are from S-curve baseline projections. Changes in projections included (i) AM of grant

review mission 8–14 February 2017 and SERD’s memo dated 24 November 2017–revision in contract award and

disbursement projections for 2017 and beyond; (ii) SERD’s memo dated 5 February 2019–reallocation of grant

proceeds reflecting the approved 6-month extension of the grant closing date from 30 June 2019 to 31 December 2019;

(iii) SERD’s memo dated 16 December 2019 reallocation of grant proceeds adjust based on utilization of saving to cover consulting services, teaching and learning materials, logistic support and M&E, and (iv) financial closure,

cancellation of unused grant proceeds.

Figure A7: Projection and Cumulative Contract Awards of ADB Grant Proceeds

($ million)

Source: Asian Development Bank.

2012 2013 2014 2015 2016 2017 2018 2019 2020

Projection 8.30 12.00 16.20 20.40 24.00 27.50 29.50 30.00 30.00

At Completion 6.81 11.52 18.53 21.99 24.60 26.07 28.05 29.94 29.99

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Contract Awards

Projection At Completion

Appendix 8 37

SUMMARY OF GENDER EQUALITY RESULTS AND ACHIEVEMENTS

I. PROJECT DESCRIPTION 1. The Secondary Education Sector Development Program (SESDP) was approved by the Asian Development Bank (ADB) on 20 September 2011 and became effective on 9 January 2012. The SESDP consists of (i) a program component, f inanced as policy-based lending (PBL), Loan 2777-LAO of special drawing rights SDR6,314,000 (roughly equivalent to $10 million); the program loan was originally scheduled to be closed by 31 December 2016, but the actual closing was December 2018; and (ii) a grant project (Grant 0257-LAO) of $30.0 million which was scheduled to be completed by 31 December 2019, but was extended to close on 31 December 2020. The SESDP directly supports national education reforms in the Lao People's Democratic Republic (Lao PDR), and in particular the government’s reform agenda for the secondary education subsector (SES). 2. The expected impact is improved educational attainment in the Lao PDR and the expected outcome is enhanced equity, quality, and efficiency of secondary education. The project has 3 outputs: (i) Output 1 is expanded access to secondary education; (ii) Output 2 Is improved delivery of new secondary education subsector curricula; and (iii) Output 3 is strengthening second education sector management. The SESDP covers 30 poor and rural districts in 15 provinces across the country. The project is categorized as gender equity as a theme (GEN).

II. GENDER ANALYSIS AND PROJECT DESIGN FEATURES A. Gender Issues and Gender Action Plan features

3. Girls are disproportionately represented among children never attending school, and gender gaps are larger at higher grade levels. In school year SY2009/10 enrolment rates in primary schooling were 91.7% for girls and 93.7% for boys, but the rates for lower secondary education (LSE) were only 55.5% for girls and 64.4% for boys, and for upper secondary education (USE) the rates were 30.4% for girls and 37.3% for boys. Challenges span many dimensions and include physical access, quality of teaching, language of instruction for non-Lao-speaking groups, safety and quality of school environments and facilities, and traditional norms regarding girls’ education and early marriage. 4. The key gender actions, targets and indicators included: (i) institutional analysis of the SES and in-depth LSE needs assessment to include gender and equity dimensions; (ii) site selection focused on areas with low female enrolment and all construction and upgrading of schools to include separate latrines for girls in separate locations; (iii) 50% of dormitory spaces, stipends, and remedial learning opportunities are allocated to poor female students from remote areas; (iv) targeting of 50% female participants in all preservice and in-service teacher training for LSE and USE teachers; (v) quotas of at least 50% provision of new graduate teacher placement scheme support, teacher upgrade grants, and secondary pedagogical advisor support to females, especially from ethnic groups; (vi) prioritizing female representation in all management training programs and support strategies for recruitment, training, and mentoring programs to increase women in school management positions; and (vii) developing a social marketing campaign for parents and community leaders to increase understanding of the benefits of schooling for girls and promoting female education in science as well as a strategy to provide recognition awards for districts with good practices in gender awareness raising and increasing access of females, especially from ethnic areas.

38 Appendix 8

B. Overall Assessment of Gender-Related Results/Achievements

5. Implementation of the project’s gender action plan (GAP) is rated not successful in delivering gender equality results. An international gender and social development specialist (10.9 person-months) and a national gender and social development specialist (30 person-months) were recruited to support the executing agency in implementing and monitoring the GAP. The GAP progress was regularly updated and included in quarterly progress reports. Sex-disaggregated data was collected for the performance monitoring and evaluation (M&E) system. 6. This assessment did not include gender indicators at the impact level. The project had two gender indicators at the impact level, but the time frame of two those indicators was beyond project implementation: (i) by 2023, gross enrollment rate for girls in LSE at least 75% (baseline: 55.5% in SY2009–10); and (ii) by 2023, ratio of number of girls to boys enrolled in secondary education at least 1.00 (baseline: 0.81 in SY2009–10). 7. At completion, the project mostly complied with gender-related covenants, but gender targets were not fully achieved. The GAP included 26 activities and 16 targets. Twenty-four (92%) out of 26 activities and 11 (68%) out of 16 targets were achieved. The activities and targets not achieved include:

(i) Activity number 22: Include within the social marketing strategy a campaign for parents and community leaders to increase understanding of the positive benefits of schooling for girls, especially from ethnic areas. The project did not develop a strategy to award recognition for districts with good practices in gender awareness raising and increasing access to girls from ethnic and rural areas. This was clearly indicated in the GAP but not reflected in the project document and not integrated in the government policy and structure;

(ii) Target number 2: by 2018 LSE survival rate to grade 8 rises to 89% for girls and 87% for boys. The project achieved 70.1% for girls and 66.8% for boys because after completing grade 7, the students must move to other schools which are often far from their villages. Costs associated with attending schools that are further away as well as need for farming labor on family farms have kept students at home upon completing grade 7;

(iii) Target number 4: ensure that all civil works uses labor-based technology, with 40% female representation among unskilled laborers and men and women receiving equal pay for equal work. While female and male unskilled workers received equal pay for equal work (for example, men and women who worked as furniture polishers and woodworkers received 50.000 kip per day), only 30 (20%) out of 150 hired unskilled laborers were female. Limited women’s employment was provided as local cultural beliefs inhibiting their participation in construction work;

(iv) Target number 8: Ensure 50% female participants in all pre-service teachers training for LSE and USE. Total number of participants in these trainings was 47%; and

(v) Target number 13 Conduct the annual seminars for 1,200 principals and 1,200 senior female teachers. This target, which is also in the design and monitoring framework (DMF) was not carried out due to budget limitations.

Appendix 8 39

C. Gender Equality Results

1. Participation, access to project resources and practical benefits

8. Areas in which the project supported gender equality include the stipend scheme, remedial learning, and dormitories, which were publicized to pupil–parent association members and teachers in the 30 districts during the bi-annual conference which was organized each year 2014–2017. The stipend scheme and remedial learning were also advertised and broadcast on television, radio, and community speakers in Lao language. To expand access to secondary education, the project provided stipends to disadvantaged students to reduce their families’ burden. The stipends were provided to 1,700 lower secondary students, of which 940 (55%) were female and 1,564 (92%) were from ethnic groups, as well as to 1,200 upper secondary students of which 605 (50%) were female and 1,068 (89%) were from ethnic groups. Most of the recipients used the stipends to buy their food, uniforms, shoes and learning materials. The remedial program rosters indicated a total of 1,686 LSE attending the remedial classes, of which 877 (52%) were female and 1,567 (93%) were ethnic group students. In the USE, 250 students attended the remedial classes, of which 153 (61%) were female, and 245 (98%) were ethnic group students. 9. The project built 75 dormitories. Each dormitory can accommodate 52 students, and 50% of the spaces were reserved for poor female and ethnic students. The dormitories have separate toilets and facilities for males/females including a facility for dormitory supervision. The project supported 25,080 person-times (M3-M7 teachers) who attended in-service training for LSE and USE, of which 12,470 (50%) person-times were female. Twelve (36%) out of 33 master trainers were female, nominated from the center level. All 12 (100%) female master trainers were trained; 939 (29%) out of 3,228 Secondary Pedagogical Advisors (SPA) (M3-M7) were female, nominated from 17 provinces. All 939 (100%) female SPA were trained. 10. The Department of General Education (DGE) and Department of Personnel (DOP) piloted the Graduated Teachers Placement Scheme (GTPS) by placing 65 new teachers in remote schools, inclusive of 34 (52%) new female teachers; and 55 (85%) new teachers representing ethnic groups. Teacher upgrade grants were received by 30 teachers in 29 districts, inclusive of 17 (57%) female teachers and 24 (80%) teachers representing ethnic groups. All 30 teachers were assigned to be secondary pedagogy advisors to support female teachers, especially those representing ethic groups. Capacity building programs were completed by 1,265 staff, exceeding the target of 1,055 of central- to district-level education sector offices in 30 target districts and 15 provinces. The project strengthened the capacity of school principals. A total of 3,703 (exceeding the target of 1,200) school principals from all secondary schools across the country received 5 days training, of which 2,059 (56%) were women. 464 (55%) out of 844 pupil–parent associations members were female. 11. Finally, the project provided transport, accommodation, and allowances for pupil parent associations to attend bi-annual conferences to discuss and share lessons on school and dormitory management, stipends, and school grants. The project supported gender equality by contributing to the high percentage of female primary school graduates that enter LSE in poorest districts (91.64% in SY2017–2018 against targeted 81%).

2. Strategic changes in gender relations

12. The project had a strategy to select the poorest districts. This strategy provided more opportunities for poor and ethnic children to access to education, especially for girls from rural areas. Furthermore, setting up quotas for the stipends and remedial learning opportunities for

40 Appendix 8

poor female students and ethnic students provided them with increased access to education, and a potential to break away from traditional gender roles in their communities. The project reformed the curriculum and introduced a gender-sensitive curriculum, textbooks, and teacher guides, thereby mainstreaming gender considerations into the secondary education sector. The gender mainstreamed curriculum and teaching tools are a way to introduce gender equality concepts to children, which can have a positive impact on gender relations in their lives as they grow older and become adults. The project supported teachers as positive role models for boys and girls who might aspire to become teachers themselves. Setting quotas for women’s participation is a good strategy to increase women’s capacity and provide more opportunities for women to have their voices heard and feel empowered. The project had the strategy to provide dormitories, which is very helpful for students who live in the remote areas.

My knowledge about education is very minimal. I could not teach well because my qualif ication was not enough to teach upper secondary, I am not confident to teach, and I felt embarrassed whenever I couldn’t answer or explain to my students when they asked dif ficult questions. I just wished if I could have had studied further at a university to boost my qualification. And now, it was like a dream came true when I was selected an upgrading grant f rom Ministry of Education and Sports. I gained more and new knowledge and experiences f rom my studies with Teacher Upgrade Grant (TUG) program, I’ve learned peer learning among our TUG friends, we learned about new teaching methods, using

understanding by design (UbD) approach to prepare lesson plan, learner centered approach and my impressive experience was the experiment of Chemistry and Biology such as dissecting a mouse. I have applied what I have learned during TUG program such as using UbD in preparing lesson plan, learner centered approach by stimulating the motivation of students to f ind the answers and more questions and encouraging them to participate in the activities. I also lead my students to do experiment especially in Chemistry and demonstrate the students how to make simple instructional materials by using the materials available in local area. The upgrading helps me to teach better as I have gained more confidence from studies and feel more comfortable to teach upper secondary classes with learner centered approach by following upper secondary education curriculum and I can see that with this method, it is more interactive in class during discussion as students participates well in the class. I will still teach my current school; I will encourage my colleagues within my school to prepare lesson plan by using UbD. I will disseminate and explain to my colleagues on how to prepare lesson plan using UbD and raise the benefit to them so that we think and find the most suitable answer to the problems. Moreover, I will provide more instruction materials to be used in my teaching. Ms. Tounkham Xayyaket, a 29-year-old mathematics teacher, who stays in the dormitory with the students in Ladhor school, Sepon district, supervises female students who are staying in the dormitory. The first day of the school opening, the school’s principal called all students and all teachers getting together and disseminated rules/regulations of the school. Ms. Tounkham provided briefing on safety and protection and reporting mechanisms to all students. The school management continued to repeat briefing rules/regulations every Monday, Ms. Tounkham follows up with daily life of female students who stay in dormitory.

Appendix 8 41

My name is Metta Senthavong, I am eighteen years old, and I’m studying at Xuang lower secondary school, Nong district, Savannakhet Province. We’re 6 siblings and I am the 2nd child of the family. Unfortunately, my older sister doesn’t have any chance to study in school because of poverty. My parents can’t af ford to send all of us in school. the stipend that I received helps me to continue my studies in secondary. Without this, I might not able to go to school and study because my parent cannot afford to send me to school and sustain all my needs in school. I was so lucky to have this opportunity to continue my schooling. The money that was given to me, I spend it to buy all my things, f rom uniform, school supplies and all necessary things I need in school. Without this

support I might not able to finish even up to year 10.

3. Contribution of gender equality results to overall loan outcomes and

effectiveness 13. The gender loan covenant was only partially achieved, as the GAP’s implementation was rated not successful. Out of the 26 GAP activities, 24 which is a 92% achievement rate. The project did not achieve two out of three gender performance targets at the outcome level. Out of the 16 GAP targets, 11 were met which is a 68% achievement rate. However, the implementation of the project GAP did contribute to the achievement of broader objectives. All M&E and the impact evaluation study on stipends, including reporting on sex and ethnicity disaggregated data related to access, learning outcomes and other SES indicators have contributed to the narrowing of gender gaps in other dimensions. They helped to identify women’s constraints, needs, which facilitated planning. The project helped bring about an important gender equality result as the percentage of female primary school graduates that enter LSE in poorest districts reached 91.64% in SY2017–2018, against the target of 81%. The project also facilitated an increase in girls’ enrollment in LSE from 55.5% in SY2009–2010 to 81.9% in SY2019–2020, against the target of 75%.

III. LESSONS LEARNT AND RECOMMENDATIONS 14. The crucial factor of success in achieving GAP targets was strong ownership by the Ministry of Education and Sports (MOES) of the gender and other dimensions of equity. The implementing agency had experience implementing GAPs from a previous Asian Development Bank (ADB) financed project. Other interlinked key factors included strong and consistent monitoring of sex-disaggregated data throughout the project, and ADB follow-up on gender dimensions during missions and periodic support from the gender specialis t at the Lao PDR Resident Mission. 15. The project had multiple challenges, including physical access, quality of teaching, language of instruction for non-Lao-speaking groups, safety and quality of school environments and facilities, gender-based motivations of families to keep children at home, and traditional norms regarding girls’ education and their parents’ need of labor for farming work. The awareness raising on project gender requirements was important and able to reach all school management teams and all pupil–parent association members. To address these challenges, the project disseminated information on gender requirements through government networks, including provincial education officers who were involved with the project. Stakeholders at all leve ls - MOES, provincial, districts and school - took ownership of project implementation and paid attention to GAP implementation. They also understood how gender equality can lead to a more equitable and sustainable access to education.

42 Appendix 8

16. Several interventions were found to be effective in addressing high drop-out rates among female and/or ethnic minority group children. Parents are often unable to see the value of their children’s education, even if they receive a stipend. MOES social campaigns aimed at parents promoting increased opportunities for higher education and training were an effective way to address this issue. Additional project interventions that aimed to improve learning opportunities for poor and disadvantaged students, therefore keeping them in school, included access-enhancing interventions (via access grants) and ensuring functioning PPAs. Prioritized for poor girls and ethnic students, remedial learning support (i.e., homework support) was provided at dormitories to reinforce learning during students’ time out-of-school. 17. Recommendations for future projects in the sector:

(i) Emphasize the project gender requirements from early stages, including engagement of a gender / social development officer under the PMU;

(ii) To ensure sustainability, the project must strengthen the capacity of government staff to implement the GAP and any required reporting, especially if the project gender consultant is recruited on an intermittent basis;

(iii) To ensure that all gender indicators are realistic, stakeholders involved in project design should pay more attention to the design of the GAP; and

(iv) To ensure all information related to project gender requirements is collected and recoded, and to avoid this burden during the PCR period, the ADB project team leader should ensure that the ADB gender specialist is regularly involved in review missions.

Appendix 8 43

Table A8.1: GENDER ACTION PLAN ACHIEVEMENTS MATRIX GAP Activities and Targets Achievements at Project Completion

Outcome: Enhanced equity, quality and efficiency of secondary education in the LAO PDR Target 1 By 2018: Percentage of female primary school graduates that enter LSE in poorest districts at least 81% (baseline 76% in SY2009/10)

(From DMF)

Achieved. Percentage of female primary school graduates that enter LSE in the poorest districts 91.64% in SY2017–20181 Source of data: Government project completion report (PCR) page 32

Target 2 By 2018: LSE survival rate to grade 8 rises to 89% for girls and 87% for boys (baseline 79% for girls and 77% for boys in SY2007/08), raising internal efficiency2

(From DMF)

Not achieved. Cohort analysis was conducted to assess LSE survival rate due to unavailability of data following a shif t in the structure of the secondary education system. Based on cohort analysis of transition rates through lower secondary for boys and girls who commenced grade 6 in 2015 and 2016, LSE survival rate to grade 8 in SY 2017–2018 was 81% for girls and 80% for boys which are below the target indicators of 89% and 87%, respectively.

Target 3 Survival rate from grade 6 through completion of grade 11 rises to 66% for girls and 64% for boys (baseline 51% for girls and 49% for boys in SY2007/08)

(From DMF)

Not achieved. A proxy indicator was observed through cohort analysis of survival rates f rom grade 6 through completion of grade 12 as per the restructured upper secondary education system: 55% for both girls and boys for boys (SY2018/19)

Output 1: Expanded Access to Secondary Education. Activity 1 Ensure that all civil works are based on site selection prioritizing areas with low female enrolment.

Completed. School site selection were agreed among Provincial Education and Sports Services (PESSs), District Education and Sports Bureaus (DESBs) and concerned local authorities, with the following criteria:

(i) Existing primary schools without a secondary school nearby, prioritizing areas with low female enrolment;

(ii) Based on the 30 poorest districts as defined by Lao government in 2011;

(iii) Did not cause any resettlement of villagers or any environmental impact; and

(iv) Low female enrollment rate and ethnic and overcrowded student per classroom; and

Certif ied as non-UXO (unexploded ordnance) area.

1 Data source from ESSC. 2 Grade 9 and 12 completion targets to be defined when secondary education restructuring comp lete.

44 Appendix 8

GAP Activities and Targets Achievements at Project Completion Activity 2

Ensure that all civil works include separate toilets for girls in separate locations and ensures accessibility for disabled girls and boys (e.g., ramps).

Completed.

Civil works included 30 LSS and 15 USS school blocks, and 75 dormitories were constructed under SESDP; all had separate toilets for girls in separate locations and included ramps to ensure accessibility for disabled girls.

Target 4 Ensure that all civil works uses labor-based technology, with 40% female representation among unskilled laborers and men and women receiving equal pay for equal work.

Not achieved. Under the construction of school and sanitation facilities, and water supply, the contractor employed 30 (20%) female workers out of 150 total workers to polish furniture and as woodworkers. Limited women’s employment was due to local cultural beliefs inhibiting their participation in construction work. Female unskilled workers received equal pay for equal work. For example, men and women who worked as furniture polishers and wood workers received 50.000 kip per day.

Activity 3 Ensure that all civil works will not use child labor.

Completed. No child labor was engaged under the construction. The contract agreement clearly specified that “child labor will not be allowed” in accordance with the Lao PDR law. The contractors had to agree before the contracts were signed.

Target 5 Publicize stipend schemes, remedial learning accommodation support, etc., provided by the project to promote female enrolment in 30 target districts.3

Achieved. The stipend manual was developed and approved in September 2014. The project publicized the provision of stipends, remedial learning, and accommodations through several channels. MOES issued an official announcement on the provision of stipends to provincial, and district officials, school principals and teachers, targeted communities, education development village committee and pupil parent associations.

3 30 target districts are located in 15 provinces that cover all provinces except Champassak and Vientiane.

Appendix 8 45

GAP Activities and Targets Achievements at Project Completion Provision of the stipend scheme, remedial learning and dormitories were publicized to inform pupil–parent association members and teachers in the 30 districts during the bi-annual conference which was organized each year 2014–2017. The stipend scheme and remedial learning were also advertised and broadcast on television, radio, and community speakers in Lao language, not in ethnic language.

Target 6 Ensure that 50% of the stipends and remedial learning opportunities are allocated for poor female students, and 80% to ethnic students (From DMF output 1)

Achieved. Stipend Scheme. To expand access to secondary education, the project provided stipends to disadvantaged students to reduce their families’ burden, for:

(i) 1,700 lower secondary students (LSS), of which 940 (55%) were female and 1,564 (92%) were f rom ethnic groups; and

(ii) 1,200 upper secondary students (USS), of which 595 (50%) were female and 1,068 (89%) were f rom ethnic groups.

Most of the recipients used the stipend to buy their food, uniforms, shoes and learning materials. Remedial learnings

(i) The remedial program rosters indicated a total of 1,686 LSE attend the remedial classes of which 877 (52%) were female and 1,567 (93%) were ethnic group students; and

(ii) USE: 250 students attended the remedial classes, of which 153 (61%) were female, and 245 (98%) were ethnic group students.

Activity 4 Under the access grant program, ensure that the guidelines, capacity building for pupil–parent associations (PPAs), proposal submission and review procedures, and monitoring provide for clear prioritization of support for access and learning outcomes for girls and other disadvantaged children.

Completed. The guideline for accessing grant program was developed and included selection criteria. Guidelines for accessing grants provided PPA members with directions for conducting school and student needs assessments and prioritizing activities based on needs affecting student life. The implementation process, including details on monitoring and reporting was developed.

46 Appendix 8

GAP Activities and Targets Achievements at Project Completion The project provided capacity building to school principals, teachers, pupil–parent association members and education village development committee members to understand the importance of secondary education, girls’ access to secondary education, and remedial classes to improve learning outcomes for girls and disabled children. Access grants enabled schools to use funds to generate school income to support improved school and residential facilities, and to improve the quality of student life in terms of remedial support to help students to bridge skill and knowledge gaps. All the project schools have used the school grants to raise animals, f ishing, and vegetable plantation to generate income to cover (i) expenses for remedial classes; (ii) building any needed facilities such as rice storage or a kitchen; (iii) expansion of student dormitories; and (iv) gardening or f ishing for dormitory residents.

Target 7 Ensure that at least 50% of dormitory spaces are reserved for poor female students and dormitories have separate toilets and facilities for males/females.

Achieved. The project built 75 dormitories. Each dormitory can accommodate 52 students, 50% of the spaces were reserved for poor female and ethnic students. The dormitories have separate toilets and facilities for males/females, including facility for dormitory’s supervision.

Activity 5 Provide briefing on safety and protection and reporting mechanisms to all students in SESDP- supported schools.

Completed. All the project schools established safety protection and reporting mechanisms. The school director would brief all students annually on the f irst day of school, and then every Monday remind students on key points in an assembly. All 75 dormitories assigned male and female dormitory managers and students to oversee management and support dormitory residents with problems or unexpected incidents such as illnesses or accidents. These lead teachers were regularly informed in weekly meetings to mitigate any concerns for female students around safety. The project also developed a module on safety protection and reporting, especially for girls, and life skills training, including rules and regulations of living in a dormitory for dormitory managers in 2014–2015. The dormitory manager is a direct supervisor for dormitory students. (Life skills training materials is available at DSE and SESDP Office).

Activity 6 Completed.

Appendix 8 47

GAP Activities and Targets Achievements at Project Completion Develop Code of Conduct training and integrate in training programs for PES/DEB officials, school managers, teachers, pupil/parent association, dormitory management/ staff, and surrounding communities.

The project developed a Code of Conduct and integrated it into the provincial and district education program. The training on the Code of Conduct was provided to provincial and district education of ficials, school principals, teachers, students, pupil–parent associations, and surrounded communities bi-annually. The dormitory management manual emphasized the roles and responsibilities of the students, parents, and the local community. The Code of Conduct is available at DSE and SESDP Office

Output 2: Improved delivery of new secondary education curricula Activity 7 Ensure that the annual TTI reports include analyses of female and ethnic group staff and student achievement.

Not completed. The annual teacher training institutions (TTI) reports include enrollment statistics disaggregated by sex, but not by ethnicity. The reports highlight achievements by subject areas, not by sex and ethnicity. For example, the number of TTI students enrolled in Secondary Teacher Education Program (STEP) curriculum developed under SESDP is only disaggregated by sex.

No. School Year Number of TTI

students enrolled

Total Female 1 2014-2015 1,785 1,002 2 2015-2016 2,590 1,464 3 2016-2017 3,714 2,005 4 2017-2018 4,571 2,510 Total 13,660 6,981

Activity 8 Ensure TTI pre-service SES curriculum addresses issues of Codes of Conduct including health and safety, counseling, reporting, and monitoring procedures related to gender issues.

Completed. The new Secondary Teacher Education Program addressed the Code of Conduct including health and safety, counseling, reporting, and monitoring procedures related to gender issues.

48 Appendix 8

GAP Activities and Targets Achievements at Project Completion TTIs developed monitoring and reporting procedures and a mechanism to report gender issues and problems to enable counselling to be provided to students. Teachers were trained how to handle conf lict in classes and advise students how to seek guidance and help. TTI also established a unit to provide career guidance to students, particularly students f rom rural and ethnic areas. For example, indicators were set up in the Secondary Teacher Education Program, bachelor’s degree (12+4) that teachers should: (i) Be able to distinguish the difference of learners: gender, ethnicity,

the poor, the disadvantaged and encourage them to play their roles in and out of classrooms (page 3);

(ii) Be able to promote good hygiene practice, keep clean and have good nutritional status (page 3);

(iii) Be able to create a healthy learning environment in and out of schools (page 3); and

(iv) Have a quick response to problems, and actively do his/her job with ethics (page 4).

Source: Secondary Teacher Education Program, bachelor’s degree (12+4) dated 9 Sept.2013

Activity 9 Ensure that all institutional plans include strategies for increasing the number of female and ethnic group students and teaching staff, including female teachers for science subjects.

Completed. All institutional plans include strategies for increasing the number of female and ethnic group students and teaching staff, including female teachers for science subjects. All sub-sectors within MOES expanded the Education and Sports Sector Development Plan (2016–2020), issued in December 2015. This development plan stated that the following:

(i) Aim to achieve compulsory primary education and expand it up to lower secondary level by ensuring everyone has access to education (page 7);

(ii) Improved teaching of Lao to ethnic students who do not have Lao as their mother tongue through new learning approaches and new resources (page 12);

(iii) To ensure that all primary graduates have a basic knowledge of natural and social sciences, English language; are able to read and write Lao language correctly and know how to do basic calculations at a certain level. Improve mathematics and science teaching (page 41); and

Appendix 8 49

GAP Activities and Targets Achievements at Project Completion (iv) Expansion of student enrolment and graduation in priority sectors:

education, teaching, engineering, science, technology, and agriculture according to national and local needs (page 67).

Target 8 Ensure 50% female participants in all pre-service teachers training for LSE and USE.

Not achieved. SY2017–18 Total number of LSE pre-service teachers participating in training program was 619,320, inclusive of 322,046 (52%) female teachers. Total number of students who participated in the pre-service teacher training program for USE was 650,276, of which 279,619 (42%) were female. Total number of female participants in both trainings was 601,665 (47%).

Target 9 Ensure 50% female participants in all in-service teachers training for LSE and USE teachers.

Achieved. Under the project, 25,080 person-times (M3-M7 teachers) attended in-service training for LSE and USE, of which 12,470 (50%) person-times were female. Detail:

(i) M3-M4: 6,253 (47%) out of 13,227 were female; and (ii) M5-M7: 6,217(53.5%) out of 11,852 were female.

Target 10 Ensure that all female master trainers and SPAs are trained.

Achieved. 12 (36%) out of 33 master trainers were female, nominated from center level. All 12 (100%) female master trainers were trained. 939 (29%) out of 3,228 Secondary Pedagogical Advisors (M3-M7) were female, nominated f rom 17 provinces. All 939 (100%) female SPAs were trained. Source: SESDP data base 2020

Activity 10 Ensure that all TTI pre-service and in-service teacher training programs and guidelines for quality/performance assessment are gender sensitive.

Completed. All TTI pre-service and in-service teacher training programs were gender sensitive. They acknowledged safety issues faced by female teachers and provided them assistance with transport and/or accommodation.

50 Appendix 8

GAP Activities and Targets Achievements at Project Completion The content of the textbooks and instruction materials followed RIES Guidelines for Textbooks which promote gender equity and the roles of ethnic groups in social and economic development. For example, ethnic group representatives were nominated to promote the successful businesses and images of girls and women were integrated in non-stereotypical roles. The performance assessment data was sex disaggregated. Source: Guidelines for Textbooks, and Teacher Guides Writing, No. 870/RIES dated 4/5/2011

Activity 11 Ensure school and teacher training curricula integrate strategies to reduce gender gaps in student attendance and achievement.

Completed. Teacher training curricula was developed to align with the MOES’ strategy to promote education equality, expand opportunities for girls’ access to education at all levels.

Target 11 Target at least 50% of graduate teacher placement support, teacher upgrade grants, and SPA support to female teachers and SPAs, especially from ethnic groups.

Achieved. Department of General Education (DGE) and Department of Personnel (DOP) piloted the Graduated Teachers Placement Scheme (GTPS) by placing 65 new teachers in remote schools, inclusive of 34 (52%) new female teachers; and 55 (85%) new teachers representing ethnic groups. Teacher upgrade grants were received by 30 teachers in 29 districts, inclusive of 17 (57%) female teachers and 24 (80%) teachers representing ethnic groups. All 30 teachers were assigned to be secondary pedagogy advisors to support female teachers, especially those representing ethic groups.

Activity 12 Ensure that all M3-M7 textbooks, teachers guide, student assessment techniques and information and communication technology (ICT) multi-media resources are gender and disability sensitive and include positive images and role models of females (as well as those with disability) from various ethnic groups.

Completed. All M3-M7 textbooks and teacher guides, student learning outcome assessment, communication and ICT tools were developed with gender and disability sensitive and positive images. Textbooks encouraged girls to become engineers and architects, disabled students to become IT staff, and ethnic teachers to become doctors. ICT multi-media resources could be found at https://www.facebook.com/sesdp.TIME/

Activity 13 Include gender brief ing in capacity building workshops for curriculum developers, including ICT.

Completed. Gender brief ing was included in capacity building workshops for curriculum developers and Research Institute for Educational Science.

Appendix 8 51

GAP Activities and Targets Achievements at Project Completion The f irst capacity building workshop was organized for both the editors and writers. The workshop focused on developing the standards for quality including user-friendliness and responsiveness to gender, ethnic minorities, and disadvantaged groups. The product was a Quality Matrix and Guidebook (TB/TG Development Manual).

This was followed by a series workshops for the content of each subject

(Sciences, Math, Languages, MAPEH), and a workshop on Quality Assessment (QA) for designers, which referred to the Guide in determining age-appropriate and gender balanced illustrations/graphics support. The f inal QA workshop was organized for the CACIM (Committee for Approval of Curriculum and Instructional Materials) who was the f inal screen for quality, including political correctness, technical content, and gender/cultural sensitivities (illustrations, photos, stories, real life examples in Science, Civics, History) Source: A Quality Matrix and Guidebook (TB/TG Development Manual

Activity 14 Ensure that rules and regulations for national examinations and preparation of ASLO for M4 and M7 incorporate gender issues, including safety of female students, transport/ accommodation assistance.

Completed. Rules and regulations for preparing national examinations of ASLO for M4 and M7 incorporated gender issues. The instruction included safety for female students by providing safe transport and accommodation. For example, at the Navang Lower Secondary school in Nakai district, Khammouane province, when national examination is conducted, teachers need to travel with students to Nakai district to ensure their safety since they need to travel by boat to take the examination in the central district.

Activity 15 Ensure that gender and ethnic group analysis is undertaken as part of assessment of national examinations and ASLO.

Completed. Gender and ethnic group analysis were undertaken as part of assessment of national examinations and ASLO in 2014.

52 Appendix 8

GAP Activities and Targets Achievements at Project Completion Analysis identified several constraints for female students, including lack of transportation and accommodations when participating in provincial and national education competitions. ASLO identified dif ferences in student performance: (i) learning outcomes of Trans-Himalayan and Hmong students were worse than those of Lao-Tai and Mon-Khmer students; and (ii) students in remote and ethnic areas scored lower in science subjects than students in urban and peri-urban areas. To address the constraints, MOES modified the national exam guidelines and regulations regarding student safety, especially for female students and ethnic groups. Source: ASLO report, August 2019

Activity 16 Ensure institutional analysis of SES and in-depth LSE needs assessment includes gender and equity dimensions.

Completed. The Secondary Education Subsector (SES) institutional analysis and in-depth needs assessment included gender and equity dimensions, and identified the need to increase the recruitment of female and ethnic teachers who will be deployed in remote school sites, as well as af f irmative action to admit more women and ethnic groups youth into pre-service teacher training. Source: Institutional Analysis of the Secondary Education Sub-Sector and In-depth LSE Needs Assessment report, Nov.2014

Activity 17 Include gender and ethnic group criteria in school network mapping procedures and data analysis and presentation strategies.

Completed. The school network mapping included student and teacher statistics by sex, ethnicity, and the educational qualification of teachers. The statistics have been updated annually. The school network mapping is used for project preparation, planning, budgeting, and monitoring. The statistics are available for public access by request through the Education Management Information System (EMIS) at http://www.dataforall.org/profiles/laoeduinfo/.

Activity 18 Prioritize female representation in all management training programs (to be measured as share of female participation vis-à-vis females in those positions).

Completed. Total number of management staff positions PESS and DESB is 181, including 161 males and 20 females. Education Management Training was organized for PESS and DESB staf f, the contents of the training included preparing work plans, budgeting, monitoring, and reporting. The training prioritized female

Appendix 8 53

GAP Activities and Targets Achievements at Project Completion participation, as mentioned in the official invitation letter, and considered a suitable time for female staff. As a result, all 20 (100%) women in management positions attended the management training (Source: SESDP database).

Activity 19 Capacity building programs for education sector staff at all levels, including principals, teachers, and pupil–parent associations to include training on gender issues in education, including strategies to promote access to and completion of secondary education.

Completed. The PPTA studies have shown that girls have many obstacles to education due to a traditional culture mindset which assigns women the obligation to do household work, take care of children and as such dismisses the need for women’s higher education. Another problem for girls attending school is related to school being too far away for them to travel to, and no safe dormitories to accommodate them. Thus, the SESDP developed and implemented its strategies to promote access to and completion of secondary education by: constructing new LSE schools that are in the areas with low female enrolment; by ensuring that civil works at all LSE and USE sites include sex-segregated toilets; ensuring that poor girls receive 50% of dormitory spaces, stipends, and remedial learning opportunities; conducting advocacy campaigns on the benef its of girls’ schooling and promoting their education in science. The gender issues in education and GAP, including strategies to promote access to and completion of secondary education were included in the capacity building programs for education sector staff at all levels, including principals, teachers, and pupil–parent associations. Source: SESDP resources materials

Target 12 Annual seminars for 1,200 principals and 1,200 senior female teachers (DMF)

Not achieved. No annual seminars principals and senior female teachers were held under this project due to budget limitations.

Activity 20 Development of ICT policy and pilot to incorporate gender and ethnicity issues, including content of materials, access, relevance to users, etc.

Completed. The ICT policy was developed for Lao Education (Grade 1–7) with attention paid to socio-economic, social-cultural, gender and ethnic diversity or disparity. ICT training and publication materials included positive images, for example: School base management (Laos) Video (https://www.youtube.com/watch?v=zJscTlsCVnU)

54 Appendix 8

GAP Activities and Targets Achievements at Project Completion The policy encourages both male and female students to develop ICT skills for technology-related careers and professional development. It also promotes life-long learning, via SESDP-established DSPAs Facebook group: (https://www.facebook.com/groups/ICT.Development.TE/), and organized Video contest to promote learning and teaching. MOES ICT Policy for Lao Education (ICT4LE) (Grade 1–7), October 2013 is available.

Activity 21 Within the manual of recruitment and utilization of teachers (ATRUP), include strategies: recruitment, training, and mentoring programs for increasing women in school management positions.

Completed. The manual for the ATRUP was completed in close collaboration with the Gender Expert and incorporates strategies favoring women for recruitment, training, and mentoring programs. It states that “The Department of Teacher Education (DTE), Department of Vocational Education (DVE), Department of Higher Education (DHE), and Department of Physical and Art Education (DPAE) have the duty to provide statistical data and forecast TRP disaggregated by subject, sex and ethnicity /ethnic language spoken; and to send the TRP to the Department of Planning to consolidate with the National Teacher Pre-service Training for the education sector.” The pilot Graduate Teachers Placement Scheme (GTPS) which embodies the recruitment, training and mentoring programs includes provisions such as: (i) “To enhance the existing hiring and deployment policies of the MOES towards ASEAN-level teaching competency standards, including the promotion of ethnic and gender equity principles”; (ii) “If a replacement is needed, the PESS must ensure that replacement of a female candidate must be with a female candidate only, while replacement of a male candidate could be with male or female candidate. The same rule has been applied to ethnicity of the candidates; thus, ethnic candidate can only be replaced by another ethnic candidate, but non-ethnic candidate maybe replaced by a non-ethnic or ethnic candidate. This is to ensure compliance to the 50% female and 80% ethnic requirement of SESDP”; (iii) “Applicants who are willing to teach in remote ethnic areas and who speak the ethnic language will be given preference to 80 % of the posts. The chosen applicants will be at least 50 % female or based on the reality of the area.”

Appendix 8 55

GAP Activities and Targets Achievements at Project Completion Activity 22 Include within the social marketing strategy a campaign for parents and community leaders to increase understanding of the positive benefits of schooling for girls, especially from ethnic areas.

Not completed. Social marketing strategy and campaign was developed to promote access to secondary education with special focus on girls’ participation and those from ethnic groups. The campaign to promote access to secondary education paid special attention to girls and girls from ethnic groups. For example, it explained the importance and benefits of secondary education to encourage pupil- parent associations, and communities to support their children to pursue secondary education. The campaign also presented positive messages and images of female teachers, and ethnic groups in dif ferent occupations in the public and private sector. The campaigns were broadcasted on local radio, television, and over community speakers. The project did not develop a strategy to award recognition for districts with good practices in gender awareness raising and increasing access to girls f rom ethnic and rural areas. This was clearly indicated in the GAP but was not ref lected in the project document and it was not integrated in the government policy and structure.

Activity 23 Include within the social marketing strategy a campaign for parents and community leaders to promote female education in science.

Completed. The social marketing campaigns promoted girls’ education, not only in science, but in all subjects. The campaigns were launched during training for provincial pedagogy advisors, training on management for school principals, and the bi-annual conference for pupil–parent associations to share experiences in promoting access to education, provision of stipends, access, school grants and support to the pilot of teacher placement scheme. Part of the campaign messages were for girls to stay in school to have better career opportunities, and encouraging them to study Physics, Chemistry and Biology so that they can become engineers, medical doctors, scientists, university professors rather than being secretaries, cashiers, accountants, or assistants.

Activity 24 Social marketing strategy includes a provision of recognition awards for districts with good practices in gender awareness raising and increasing access of female, especially from ethnic areas.

Completed. SESDP included social awareness campaigns on the importance of girls’ participation in school as one of its key messages and has used video to emphasize this message with stakeholders at different levels: (https://www.youtube.com/watch?v=LvXc2TenL4s).

56 Appendix 8

GAP Activities and Targets Achievements at Project Completion A social marketing strategy is presented in the Q4 2017 highlighted assistance to girls’ education were recognized.

Target 13 Ensure 50% female representation in pupil–parent associations and provide appropriate transport/ accommodation assistance, where necessary, to support participation.

Achieved. 464 (55%) out of 844 pupil–parent associations members were female. The project supported transport, accommodation, and allowances for pupil parent association members to attend the bi-annual conference to discuss and share lessons on school and dormitory management, stipends, and school grants.

Activity 25 Train all PMU staf f on gender/ethnicity issues, including gender analysis.

Completed. The project trained all PMU staff (12 staff) including 7 women (58%) and two ethnic staff 2 (17%) on gender/ethnicity issues, including gender analysis.

Activity 26 All M&E and impact evaluation study on stipends to report on sex and ethnicity disaggregated data related to access, learning outcomes and other SES indicators.

Completed. The M&E monitoring included sex and ethnicity disaggregated data and was ref lected in progress reports. The project impact assessment took place in September-October 2019 and the draft report has already been submitted to the PMU and ADB for review. SESDP-PMU submitted the impact assessment report to ADB on 7 November 2019, before the closing of SESDP.

The project had 26 activities and 16 targets. The project completed 24 (92%) of the activities and achieved 11 (68%) of targets. The first three targets (T1, T2 and T3) were not part of the GAP but were under outcome indicators in the DMF.

Table A8.2: GENDER ACTION PLAN ACTIVITIES AND TARGETS Achieved/Completed Not achieved/Not completed

26 activities 24 (92%) 2 (A7, A 22)

16 targets 11 (68%) 5 (T2, T3, T4, T8 and T12)

Appendix 9 57

SUMMARY OF ETHNIC GROUPS EQUALITY RESULTS AND ACHIEVEMENTS

I. PROJECT DESCRIPTION

1. The Secondary Education Sector Development Program seeks to support the Government of the Lao People's Democratic Republic (Lao PDR) in enhancing access, quality, and efficiency of secondary education. The program includes a (i) policy loan that will support reforms to enhance secondary education access and equity, quality and relevance, and subsector governance; and (ii) an investment grant that will focus on LSE delivery in 30 poorest and educationally disadvantaged target districts, to improve the educat ional outcomes of disadvantaged groups. Both the policy loan and project grant focus on addressing access and equity issues related to children from poor ethnic groups, particularly girls. Of the 30 districts targeted under output 1 of the project, 20 have a majority of ethnic group population.2 2. The impact of the program was to improve educational attainment in the Lao PDR. The outcome aimed to enhance equity, quality, and efficiency of secondary education in the Lao PDR. While the program and some projects’ activities principally covered national in scope, project investments to expand access was targeted to 30 poor and remote villages and communities with low enrollment and high drop-out in secondary education. The project outputs were (i) expanded Access to Secondary Education; (ii) Improved Delivery of New Secondary Education Subsector Curricula; (ii) improved Delivery of New Secondary Education Subsector Curricula; and (iii) Strengthened Secondary Education Subsector Management.

II. ETHNIC GROUPS ANALYSIS

3. The project’s targets to improve quality and expand opportunities for poor and ethnic groups students access to both lower secondary education (LSE) and upper secondary education (USE) in 30 poor districts with enrollment and high drop-out in LSE and USE. The 30 districts are mostly populated by people who belong to various ethnic groups and are heavily dependent on forests, rivers, upland agricultures, and other natural resources for both their subsistence and income. Ethnic groups are often small and isolated from one another along the rivers and mountains, making harder for the government to develop and adequately provide services. The economic activities of these villages vary from cultivation of swidden farming, extensive commercial cropping to predominantly upland, and livestock such as goats, pigs, and chicken. The project schools are mostly located in villages vary from district centers. Improvement of education facilities and quality is challenging because the road and communication network is not reliable. 4. The project records indicates that the project school area is located at 18 of the 50 officially recognized ethnic groups in Lao PDR. The ethnic groups include Leu, Phouan, Phoutai, Taideng, Hmong, Akha, Laen Taen, Khmu, Katang, Lamed, Makong, Kaleung, Ta Oi, Katou, Alak,Triang and Pako, each group has its own dialect, customs and cultural characteristics, but all the ethnic groups share common territory and have lived together peacefully. With the promotion of basic and post- basic education, parents have to send their children in dormitories where their children have to take care of themselves and share common ethnic groups knowledge, cultures and ways of living if assigned teachers is not active and supportive. The project records shows that the majority of the ethnic groups belong to the Mon-Khmer as these ethnic groups are widely lived in central and southern provinces.

58 Appendix 9

III. OVERALL ASSESSMENT

5. The project developed an Ethnic Groups Plan to outline the potential impacts of the project on ethnic groups. The plan also specified actions to address the impacts and help to improve the distribution of benefits to ethnic groups. This was to ensure that ethnic groups could benefit equally to the rest of society. The project ethnic group plan was prepared to expand access for female and ethnic students in all project activities, particularly the stipend scheme, dormitories, education facilities and female ethnic teachers’ access to in-service teacher training programs, teacher upgrading programs and other management training programs. 6. As primary education has expanded, the SES has become a key bottleneck. The LSE gross enrollment ration (GER) was 60.2% for school year (SY) 2009/10. The GER enrollment rate in the project provinces, where the density of ethnic groups, was between 37.4 % to 57.6 % significantly below the GER of 60.2%. Similarly, national GER for upper secondary education (USE) was 53.3% in SY2009/10, the enrollment in the project provinces was between 20.3% to 29.0% in the same period. The main reasons included (i) weak school network coverage of remote areas; (ii) f inancial and opportunity costs; (iii) cultural factors, girls married at an early age and being a core labor for taking of their siblings; and (iv) no external support to secondary education as most of international and bilateral organizations focused their assistance to primary education only. With the government investment and project intervention, increases of GER of LSE varied. The MOES’s statistics showed that the GER of LSE in two southern provinces significantly increased. For example, the GER in Savannakhet province increased from 45.1% in SY2009/2020 to 51.1% in SY2019/202, while the GER of females increased from 45.2% to 53.5% in the same period. For Saravane province, the GER rose from 37.4% to 47.5%, and similarly, the female GER increased from 32.7% to 49.1% in the same school year. 7. The Ethnic Groups Plan consisted of 22 measures to mitigate impacts, and 19 out of 22 measures were achieved (87%). Two measures were partly achieved, and one measure was not achieved. Although there is no clear guideline to assess the achievement, the project is rated successful in implementing the ethnic groups plan.

Update on Ethnic Group Plan

(as of December 2019) Anticipated Effects

Proposed measures to mitigate impact

Status

Output 1: Expanded access to secondary education

Positive: Better access of ethnic groups to

SESDP. Negative: Ethnic

groups excluded due to lack of knowledge on

SESDP and stipend/grant funding

opportunities, and a lack of targeting.

1A. Ensure that site location for all LSE construction prioritizes

areas with low ethnic group enrollment.

Achieved. During the PPTA, 30 districts were selected based on selection criteria which included poor and remote areas,

low enrollment in LSE, particularly low ethnic enrollment. This was backed up by an analysis of disaggregated district’s enrollment data. The DGE and the project team

validated the information prior construction. The project built new education facilities and equipped

dormitories and sanitation facilities in 30 LSE, 15 USE, and provided dormitories and sanitation facilities to 30 existing LSE schools that were located in ethnic-

dominated communities with low ethnic group enrollment.

Appendix 9 59

Anticipated Effects

Proposed measures to mitigate impact

Status

1B. Ensure that a rigorous baselines study

is conducted in all target districts, including analysists of ethnic group issues.

Achieved. The baseline study conducted in the 30 target districts in

2012/2013. Ethnic groups issues were incorporated in the study.

1B. Publicize stipends

schemes, remedial learning, accommodation support,

etc., provided by the project to promote enrollment of children

f rom ethnic groups; disseminate information in ethnic language and

through local media and channels accessed by ethnic groups.

Partly achieved. The project publicized the stipend,

remedial learning, accommodation support, etc. through several channels. (i) MOES issued an of ficial announcement on the

provision of stipends to provincial, and district of ficials, school principals and teachers, targeted communities, education development village

committees and pupil parent associations. (ii) The captioned information was also advertised and

broadcast on television, radio and community

speakers, school news board in Lao language. The information was not, however, broadcast in ethnic language as not all ethnic languages are available in writing.

1B and 1C. Ensure that

ethnic students are given preferential access for SESDP- constructed

dormitory spaces, with at least 80% of dormitory spaces are reserved for

poor ethnic students in areas where ethnic group are a majority.

Achieved.

Ethnic groups accounted for 86.6% of the capacity of LSE dormitories, and 98% of the capacity of USE dormitories provided by the project.

1C. Ensure that 80% of each LSE and USE

stipends and remedial learning opportunities are allocated for poor

ethnic students.

Achieved. The project provided stipends to 1,700 disadvantaged

students. 940 (54%) female and 1566 (90%) ethnic groups.

The project provided stipends to 1,200 USE disadvantaged students. 600 (50%) were female and 1,068(89%) ethnic groups.

1,095 out of 1,200 stipend beneficiaries made it to grade 12 and completed their USE.

The project schools conducted remedial classes to support slow learning students. 1,686 remedial classes

were organized. 1399 LSE and 1,005 USE students attended remedial classes and all of them were ethnic groups.

The project printed and distributed information to the provinces and the district education office, school and

60 Appendix 9

Anticipated Effects

Proposed measures to mitigate impact

Status

pupil–parent associations. This was followed by training on how to use and monitor the school grant.

1C. Under the access

grant program, ensure that the guidelines, capacity building for

pupil–parent associations (PPAs), proposal submission and

review procedures, and monitored provide for clear prioritization of

support for access and learning outcomes for poor and ethnic

students.

Achieved.

Guidelines for the school grant, including submission of proposals, review procedures, and monitoring systems were prepared in consultation with pupil parent

associations. The school grant is used to implement activities including plantation, animal raising, and f ishing to generate income. The incomes are used for remedial

classes, school operations and minor maintenance.

Output 2: Improved delivery of new secondary education curricula

Ethnic groups

benef ited by increased quality of

SESDP training and curriculum development.

Ethnic groups excluded from

SESDP due to lack of quality of knowledge and interest; lack of

sensitivity of curriculum and f rom teacher

training development initiative

2A. Ensure that annual TEI report included ethnic group analyses of staf f enrollment and student achievements; and all institutional review plans include strategies to increase ethnic group grade 12 graduates entering teacher training

Achieved.

The DTE keeps and makes available data on the enrollment of students in the STEP program in TEIs. The data is segregated by gender and ethnicity. Based on enrollment in the STEP program for school year 2017–2018, total enrollment was 1,041, comprised of 578 female (56%), and 413 ethnic students (40%). For school year 2018–2019, the total enrollment in TTC was 1,026, comprised of 570 female (56%) and 351 ethnic students (34%).

2A. Ensure ethnic

teachers received preferential access to in-service teacher training,

with at least 50% of ethnic LSE and USE teachers nationwide receiving at least 1 round

of training during the project period.

Not achieved. Due to budget constraints, at least three

teachers for grades 6–12 per secondary schools across country received one round in-service training on the use of new textbooks and teachers’ guide. Ethnic teachers

accounted 27.23% of total teacher across the country.

2A. Target at least 80% of graduate teacher

Achieved.

Appendix 9 61

Anticipated Effects

Proposed measures to mitigate impact

Status

placement support (25) and teacher upgrade

grants (10) ethnic teachers

The project piloted the graduate teacher placement scheme in 19 districts. 55 out of 65 benef iciaries (85%)

were f rom ethnic groups and 34 (52%) were female teachers. They all still teaching in their assigned schools. The Teacher Upgrade Grant (TUG) supported 30 science

teachers f rom remote LSE schools to attain bachelor degrees, of which 24 (80%) were f rom ethnic groups.

2B. Ensure that all grades 8–12 textbooks,

teachers’ guides, students assessment techniques, and

information and communication technology (ICT) multi-

media resources (e.g., radio, TVE and DEDs) are sensitive to ethnicity (and disability), including

positive images.

Achieved. The MOES issued a generic criterion for quality of

textbooks and the teachers guide includes measures to prohibit discrimination and a criterion requiring the projection of positive messages appreciating ethnic

diversity and images of ethnic groups (e.g., economic, and cultural activities). These were applied in revising all textbooks for grades 8–12 and teacher guides.

This criterion also applied to the development of ICT for educational materials. Ethnic groups are presenting positive images.

2B. Include module to build awareness on ethnic groups issues in

education in capacity building workshops for curriculum developers,

including ICT-based materials.

Achieved. A module to raise awareness on ethnic group issues in education was organized for curriculum developers and it

also included in the ICT based material. For example, ethnic issues and cultural practices were presented in DVD and emphasized in the education program which

was broadcast on local radio.

2E. Ensure ethnic group analysis of national examination and

assessment of student learning outcomes (ASLO) results is

conducted.

Achieved. Assessment of student learning outcomes for grade 9 was conducted in May 2014 for the 1st round and in 2018 for

the 2nd round, which incorporated ethnic group dimensions. The results indicated Trans-Himalayan and Hmong learning outcomes were worse than Lao-Tai and

Mon-Khmer. Include the results of ASLO grade 9 and 12.

Output 3: Strengthened secondary education subsector management.

Ethnic groups

benef itted by increased social marketing and decentralized

training of education managers, and

school principals.

3A. Ensure institutional

analysis of SES and in-depth LSE needs assessment and school network mapping

procedures include ethnic group issues and criteria.

Achieved.

The secondary education sector institutional analysis report and in-depth needs assessment included ethnic groups and other equity dimensions including; (i) identifying the need to increase the recruitment of female

and ethnic teachers who will be deployed in remote schools, and (ii) af f irmative action to admit more female students and ethnic groups youth in pre-services teacher

training. SNM procedures and tools include data on enrollment disaggregated by ethnic groups.

62 Appendix 9

Anticipated Effects

Proposed measures to mitigate impact

Status

Increased community

representation and participation,

3b. Prioritize ethnic group participation in all

management training programs (to be measured as share of ethnic group

participation vis-à-vis ethnic group in those positions).

Achieved. Capacity building programs covered 1,265 staff (with 415 female ethnic teachers or 33%) provided capacity building for central-to district-level education sector offices.

Capacity building

programs for education sector staff at all levels, principals, teachers, and

pupil–parent associations to build awareness and include

strategies to promote ethnic groups access to and completion of secondary education.

Achieved.

The project conducted several training programs for sector staff at all levels to raise awareness of gender and ethnic groups issues in education and to include a

strategy to promote the access of ethnic groups to complete secondary education.

Training to school principals was tracked by the number of participants by gender and ethnicity. Training was provided to pupil- parent associations

through bi-annual conferences. The total f pupil–parent association roster was 844, of which 422 (50%) were female, and 667 (79%) were ethnic group members.

Development of ICT-for

education policy and strategy to incorporate gender, ethnicity and

disability issues.

Achieved.

The approved ICT for education policy incorporated ethnicity and gender issues and called for any projects and action related to ICT for education to be proceeded

by a careful evaluation of equity aspects, paying attention to socio-economic, socio-cultural, gender and ethnic diversity and disparity. The operational plan to implement

ICT for education policy was developed and implemented. Materials for ICT for education were developed including sensitivity to ethnic group dimensions. This was supported by MOES Manual no. 583/DGE dated 8 May 2018, and

the Manual on establishing the Policy in ICT4LE for General Education signed by DGE Director General, MOES.

3B. Within the multi-

modal capacity building program for education sector staf f, include

advocacy and interventions to increase ethnic group

representation in school management positions.

Substantially achieved.

The project helped the Department of Personnel revise and f inalize the institutional analysis report which identified a capacity building program. A phased and

multi-model capacity program for education sector staff at all levels was developed. (i) Training related quality assurance for which there

were total 40 participants – 19 females and 6 ethnic participants (15%);

(ii) Training on monitoring and evaluation for which there were total 64 participants – 17 females and 15 ethnic

participants (23.43%);

Appendix 9 63

Anticipated Effects

Proposed measures to mitigate impact

Status

(iii) Training on f inancial management for which there were total 167 participants – 29 females and 66

ethnic participants (39.52%); (iv) Training on secondary education system

management at the central, provincial and district levels for which there were total 259 participants – 79

females and 84 ethnic participants (32.43%); and (v) Training on school planning and instructional

leadership for 1200 secondary school principals.

There were a total of 3,703 participants for the training; 1,563 principals attended (against a target of 1,200) f rom all secondary schools across the

country and they received 5 days of training on school improvement. Of this total, 2,059 (56%) were women who participated in the training while 343

female principals attended.

Include within the social marketing strategy campaign for parents and community leaders

f rom ethnic group to increase understanding of the positive benefits of

secondary education.

Achieved. The project developed a social marketing strategy and campaigns to raise awareness and promote positive benef its of continuing study and complete secondary

education. The key messages include (i) female participation in secondary education is a must, (ii) zero drop out is my responsibility, (iii) education quality is my

responsibility, and (iv) I am an ACE teacher”. The project supported the distribution of the materials

through various channels including (i) a video contest on promoting the use of the learner-centered approach for teaching; (ii) and using Facebook to establish groups

(i)Teacher Education Group, and (ii) District Secondary Pedagogical Advisor (DSPA) group. This latter group served as the platform for teachers to share insights on

how to promote equitable access to secondary education, improve the quality of education and pedagogical techniques; raise awareness and share information to the pupil- parent association through bi-annual conference.

3C. Prioritize ethnic

group participation in all pupil–parent associations, with, at

least 50% ethnic group representation in community with ethnic

majority.

Achieved.

The total membership of the pupil–parent association was 844, of which 422 (50%) were female, and 667 (79%) were ethnic group members.

3D. The project monitoring and evaluation f ramework will incorporate M&E for

ethnic group plan.

Achieved. The project monitoring and evaluation f ramework includes the ethnic group action plan, and it was updated on quarterly basis.

64 Appendix 9

Anticipated Effects

Proposed measures to mitigate impact

Status

3D. All M&E and impact evaluation study on

stipends to report on sex and ethnicity disaggregated data related to access,

learning outcomes and other secondary education indicators.

Achieved. (Extracted f rom the Project Assessment Report) Empirical modelling of the LSE stipend program has demonstrated a highly significant impact. It has halved the dropout rate for stipend recipients compared with the matched comparison cohort. The average dropout rate for LSE stipend recipients was 14.3% by the end of the M4 school year. Without the stipend program, the dropout rate for the same students would have been between 14 to 17 percentage points higher (i.e., between 28 and 31%). This equates to an additional 244 to 296 LSE school completions – students who were destined to drop out early if not for the SESDP intervention.

Description

Lower Secondary Education

Upper secondary education

Total Female Total Female

Total number of stipend recipients

1,740 940 1,200 600

Total ethnic group recipients

1,566 846 1,068 523

Total number of survival recipients

1,494 807 1,095 555

Total number of ethnic survival recipients

1,340 729 1010 516

3E. Train all PMU staff

on ethnicity issues.

Partly achieved.

12 PMU staff were trained on ethnicity issues, including 7 females and two ethnic staff (17%).

Appendix 10 65

STATUS OF COMPLIANCE WITH LOAN COVENANTS

No.

Covenant

Reference in Loan

Agreement

Status of Compliance

1. In the carrying out of the Program, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement.

Article IV. Sec. 4.01

Complied. The executing agency complied with the 5 implementation arrangements indicated in Scheduled 5.

2. The Borrower shall maintain, or cause to be maintained, records and documents adequate to identify the Eligible Items financed out of the proceeds of the Loan and to record the progress of the Program.

Article IV. Sec.4.02 (a)

Complied. The executing agency maintained a f iling system to record all documents related policy and financing management to facilitate the annual audit. The executing agency welcomed ADB’s representatives to inspect records as needed.

3. The Borrower shall enable ADB’s representatives to inspect any relevant records and documents referred to in paragraph (a).

Article IV. Sec.4.02 (b)

Complied. The executing agency welcomed and assigned staff to facilitate ADB’s representative to inspected when needed.

4. As part of the reports and information referred to in Section 6.05 of the Loan Regulations, the Borrower shall furnish, or cause to be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the counterpart funds and the use thereof ; and (ii) the implementation of the Program, including the accomplishment of the targets and carrying out of the actions set out in the Policy Letter.

Article IV. Sec.4.03 (a)

Complied. Documentation of completed policy actions provided to support ADB preparation of Progress Reports and release of tranche 1 on 30 June 2014 and release of tranche 2 on 18 December 2018.

5. Without limiting the generality of the foregoing or Section 6.05 of the Loan Regulations, the Borrower shall furnish, or cause to be furnished, to ADB semiannual reports on the carrying out of the Program and on the accomplishment of the targets and carrying out of the actions set out in the Policy Letter.

Article IV. Sec.4.03 (b)

Complied. Quarterly and annual reports on implementation progress provided to ADB. Reported included appendixes tracking policy actions and GAP, and agreed actions identified during missions. Updated EGP update was also included.

6. Policy Actions and Dialogue. The Borrower shall keep ADB informed of policy discussions with other multilateral and bilateral aid agencies that may have implications for the implementation of the Program and shall provide ADB with an opportunity to comment on any resulting policy proposals. The Borrower shall take into account ADB’s views before f inalizing and implementing any such proposal.

Schedule 5, para. 3

Complied. Consultations with other development partners held on key policy issues in common with those supported under SESDP (e.g., a national education block grant policy, textbook policy, etc.). ADB reviewed and provided feedback on draf t policy-related documents.

66 Appendix 10

No.

Covenant

Reference in Loan

Agreement

Status of Compliance

The MOES shared all minutes of

discussions on the program policies with the Education

Working Group (including multilateral and bilateral aide

agencies and INGOs). ADB also met with the Education Working

Group to confirm the policies and their implementation during

review missions.

7.

Use of Counterpart Funds. The Borrower shall ensure that the Counterpart Funds are used to f inance the local currency costs relating to the implementation of the Program and other activities consistent with the objectives of the Program and shall provide necessary budget appropriations to f inance the structural adjustment costs relating to the implementation of relevant reforms under the Program.

Schedule 5, para. 4

Complied. Counterpart funds were provided

but of ten delayed. Annual

budgets were provided but often delayed. Funds were disbursed

according to the government procedures, which

sometimes were delayed.

8. Governance and Anticorruption. The Borrower and MOE shall (a) comply with ADB’s Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, f raudulent, collusive, or coercive practice relating to the Program; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation.

Schedule 5, para. 5

Complied.

The MOES and the PMU took very ef fective and appropriate action in identifying an instance of potential conflict of interest, promptly reporting this to ADB. ADB confirmed MOES’ view and issued a sanction of the individuals and f irm in question. ADB received one other complaint, which was reviewed by ADB’s Office of Anticorruption and Integrity (OAI), per ADB procedures and was deemed by OAI as unfounded.

Appendix 11 67

STATUS OF COMPLIANCE WITH GRANT COVENANTS

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

1. In carrying out of the project and operation of the project facilities, the Recipient shall perform, or cause to be performed, all obligations set for the in Schedule 4 to this Grant Agreement.

Article IV. Sec. 4.01

Complied. The Recipient delegated MOES

to be the executing agency who took full responsibility to

implement the project

2. The Recipient shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related f inancial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualif ications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 9 months af ter the end of each related f iscal year, certif ied copies of such audited accounts and f inancial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Grant proceeds and compliance with the f inancial covenants of this Grant Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and f inancial statements and the audit thereof as ADB shall from time to time reasonably request.

Article IV. Sec. 4.01

Complied

Auditor’s opinion was unqualified, with minor deviations noted in accounting recording, recording of government counterpart funding, and recording of f ixed assets from provincial level.

3. The Recipient shall enable ADB, upon ADB’s request, to discuss the Recipient’s f inancial statements for the Project and its f inancial af fairs related to the Project f rom time to time with the auditors appointed by the Recipient pursuant to subsection (a) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized of ficer of the Recipient unless the Recipient shall otherwise agree.

Article IV. Sec. 4.02

Complied. The MOF and MOES agreed to engage the State Audit Authority to audit the project. The Audited Project Financial Statement and Report for each year was timely submitted.

4. The Recipient shall enable ADB’s representative to inspect the Project, the Goods and Works, and any relevant records and documents.

Article IV.Sec. 4.03

Complied. The executing agency welcomed and assigned staff to facilitate ADB’s representative to inspected when needed.

5. The Recipient shall ensure that the project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become ef fective only after approval of such change by

Schedule 4, para.1

Complied. The executing agency strictly followed the details arrangements indicated in the PAM. The request for extension of project closing

68 Appendix 11

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

the Recipient and ADB. In the event of any discrepancy between the PAM and the Grant Agreement, the provisions of this Grant Agreement shall prevail.

date and reallocation was approved through memo and signed by the Country Director.

6. Imprest Account and Statement of Expenditures. Except as ADB may otherwise agree, the Recipient shall establish immediately af ter the Ef fective Date, an imprest account at the Bank of Lao PDR. The imprest account shall be established, managed, replenished and liquidated in accordance with the Loan Disbursement Handbook, and detailed arrangements agreed upon between the Recipient and ADB. The imprest account shall only be used for the purposes of the Project. The currency of the imprest account shall be the Dollar. The ceiling for the imprest account shall not exceed the lower of (i) the estimated expenditure to be f inanced f rom the imprest account for the coming 6 months of Project implementation, or (ii) the equivalent of 10% of the Grant amount.

Schedule 2, para. 5 (a)

Complied. Imprest account established and maintained at Bank of Lao PDR. Due to increased turnover and liquidity constraints, In November 2014, ADB approved an increase in the imprest account ceiling to $4,325,087. The account was regularly liquidated and replenished.

7. The statement of expenditures procedure may be used for reimbursement of eligible expenditures and to liquidate advances provided into the imprest account, in accordance with the Loan Disbursement Handbook and detailed arrangements agreed upon between the Recipient and ADB. Any individual payment to be reimbursed or liquidated under the statement of expenditures procedures shall not exceed the equivalent of $50,000.

Schedule 2, para. 5 (b)

Complied The PMU responded to requests for further documentation/ clarif ication in a timely manner. The statement of expenditures procedure was used in accordance with the Loan Disbursement Handbook.

8. The Recipient shall keep ADB informed of policy discussions with other multilateral and bilateral aide agencies that may have implications for the implementation of the Program and shall provide ADB with an opportunity to comment on any resulting policy proposals. The Borrower shall take into account ADB’s view before f inalizing and implementing any such proposal.

Schedule 5. para 3.

Complied. The MOES shared all minutes of discussion on the program policies with Education Working Group (including multilateral and bilateral aide agencies and INGOs). ADB also met with Education working groups to conf irm the policy and its implementation during review missions

9. Conditions for disbursement from Grant Account. Notwithstanding any other provision of this Grant Agreement, (a) no disbursement shall be made for SAGP unless the guidelines

Schedule 2, para. 6

Complied Both guidelines were reviewed by ADB and f inalized to incorporate ADB comments, followed by MOES approval. The SAGP and SSSP were both launched for LSE and USE at start of SY2014/2015.

Appendix 11 69

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

as set forth in paragraph 10 of Schedule 4 to this Grant Agreement shall have been prepared in consultation with ADB and approved by MOE; and (b) no disbursement shall be made for SSSP unless the guidelines as set forth in paragraph 13 of Schedule 4 to this Grant Agreement shall have been prepared in consultation with ADB and approved by MOE.

10. Environment. The Recipient, through MOE, shall ensure that the site selection, design, construction, replacement work and operation of Project facilities are implemented in accordance with the Recipient’s relevant regulations and standards as well as the Safeguard Policy Statement.

Schedule 4, para. 2

Complied The DSE organized on-site validation (completed for 60 LSE sites and 15 USE sites) certified compliance for all sites prior to contracting. MOES will continue to ensure facility operation adheres to national requirements and ADB’s SPS.

11. Land Acquisition and Involuntary Resettlement. The Recipient, through MOE, shall ensure that (a) construction of new schools and additional classrooms are carried out on vacant land owned by the Recipient, f ree from all encumbrances, habitation, dispute, or controversy; and (b) only subprojects categorized as “C” as defined by the Safeguard Policy Statement and meeting the eligibility criteria for the selection of sites for Works, as agreed between the Recipient and ADB, are selected. In the event of unforeseen land acquisition or involuntary resettlement, the Recipient shall immediately inform ADB and prepare the necessary planning documents in compliance with the Safeguard Policy Statement.

Schedule 4, para. 3

Complied The program did not involve

involuntary resettlement. All schools were constructed in the

state land, land title of each plot was provided before the

construction started. The project site was identified in consultation

with the provincial and district authorities, and village authority

and elderly representatives.

12. Ethnic Groups. The Recipient shall ensure that the preparation, design, construction, implementation and operation of the Project and all Project facilities comply with (a) all applicable laws and regulations of the Recipient relating to ethnic groups; (b) provisions related to Indigenous Peoples’ Safeguards under relevant ADB policies; and (c) all measures, and requirements set forth in EGP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

Schedule 4, para. 4

Complied The EGP was implemented. Measures taken to ensure compliance on 2 actions: (i) ensuring that remedial program target learning needs of ethnic group and other disadvantaged students; and (ii) ensuring at least 50% ethnic group participation in PPAs in communities with majority ethnic populations was taken.

13. Human and Financial Resources to Implement Safeguards Requirements. The Recipient shall make available necessary

Schedule 4, para. 5

Complied The MOES assigned its staff and gender consultant to implement the EGP.

70 Appendix 11

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

budgetary and human resources to fully implement EGP.

14. Safeguards-Related Provisions in Bidding Documents and Works Contracts. The Recipient shall ensure that all bidding documents and contracts for Works contain provisions that require contractors to: (a) Comply with the measures relevant to the contractor set forth in EGP (to the extent they concern impacts on affected people during construction), and any corrective or preventative actions set forth in a Safeguards Monitoring Report; and (b) Make available a budget for all such social measures.

Schedule 4, para. 6

Complied. The contractors strictly complied with the local and ethnic culture practice requirements as indicated in the bidding documents. The provincial education department allocated budget for its staff to implement and monitor all social and measures to ensure that ethnic students benef ited the project activities and ethnic elderly were consulted.

15. Gender and Development. The Recipient, through MOE, shall ensure that the Gender Action Plan is fully implemented and that all Project activities are designed and implemented in accordance with the principles of ADB’s Policy on Gender and Development (1998). Such measures shall include (a) 50% of dormitory spaces, stipends and remedial support are reserved for poor female students f rom remote areas; (b) at least 50% of participants in all pre-service and in-service teacher training for lower and upper secondary teachers are female; (c) at least 50% participation in the new graduate teacher placement scheme, teacher upgrade grants, and secondary pedagogical advisor support by female teachers, especially those f rom ethnic groups; (d) the Project supports strategies for increasing women in school management positions; (e) the Recipient shall develop social marketing campaign for parents and community leaders to increase understanding of the positive benef its of secondary education for female students; (f) the Project includes gender inclusive design of physical facilities such as separate toilets and dormitories for females and males; and (g) all monitoring and evaluation are disaggregated by sex and ethnicity, and the Project provinces shall report annual M4 and M7 National Examination results disaggregated by gender and science/mathematics, with analysis by the respective provinces linked to future target setting for the entire Project implementation period.

Schedule 4, para. 7

Partially Complied Gender Action Plan (GAP) was not fully implemented. Out of the 26 GAP activities, 24 were completed at 92% achievement. The two activities that were not completed include: Activity 7 - Ensure that the annual TTI reports include analyses of female and ethnic group staff and student achievement; and Activity 22 - Include within the social marketing strategy a campaign for parents and community leaders to increase understanding of the positive benef its of schooling for girls, especially from ethnic areas.

Appendix 11 71

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

Out of the 16 GAP targets, 11 were met at 68% achievement. The f ive targets that were not met include: Target 2 - By 2018: LSE survival rate to grade 8 rises to 89% for girls and 87% for boys (baseline 79% for girls and 77% for boys in SY2007/08), raising internal ef f iciency (f rom DMF); Target 4 - Ensure that all civil works uses labor-based technology, with 40% female representation among unskilled laborers and men and women receiving equal pay for equal work; Target 8 - Ensure TTI pre-service SES curriculum addresses issues of Codes of Conduct including health and safety, counseling, reporting, and monitoring procedures related to gender issues; and Target 13 - Annual seminars for 1,200 principals and 1,200 senior female teachers (DMF)

16. UXO Clearance. For any works supported under the Project, the Recipient shall not issue a notice to proceed with such works, until the Recipient has confirmed that the related construction site is free from any UXOs.

Schedule 4, para. 8

Complied During project implementation, there was one case where it was discovered that UXO clearance was certif ied only by the community itself, and the PMU took steps to ensure that this and other sites received certif ication f rom the mandated UXO authority prior to issuance of notice-to-proceed or earlier (before bidding).

17. Teacher Deployment. The Recipient shall ensure adequate and timely employment of qualif ied teachers for the new schools and additional classrooms to be constructed under the Project.

Schedule 4, para. 9

Complied Some schools and USE classroom blocks supported under the project did not received a full contingent of qualified and salary teachers, which was a prerequisite to school/classroom block opening. The MTR agreed on remedial action (led by DOP) to address this.

18. School Access Grant Program. By end of 2012, guidelines for SAGP shall have been developed in consultation with ADB, and approved by MOE. In particular, such guidelines shall provide:

Schedule 4, para. 10, 11

Complied Given modest delays in consultant recruitment, launch of SAGP was deferred until FY2014/15 to allow adequate time for preparation and capacity

72 Appendix 11

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

(a) Eligible criteria for schools able to access the grant; (b) Eligible expenditures including, but not limited to, (i) construction of low-cost dormitories, (ii) provision of remedial support and school materials to poor and ethnic group children, and (iii) support for income generating activities; (c) Decision-making mechanism on the use of the grant; (d) Transparent mechanism of fund f low to the pupil–parent associations and its monitoring; (e) The amount of the grant received, description of the activities supported by such grant and related expense reports to be posted on the respective school news board; and (f ) The provincial education services to monitor and audit the grant on an annual basis. MOE shall ensure that SAGP is managed and implemented in accordance with the guidelines as describe in the above paragraph and shall not amend such guidelines without prior consent from ADB.

development. ADB comments were incorporated in the f inal guidelines, which includes elaborated text on fund management, audits, and other requirements. MOES ensured appropriate management throughout the SAGP’s duration. Support to PPAs was strengthened to enhance their role in the SAGP and school management.

19. Support for Teaching Staff. The Recipient shall ensure that schools and communities, where dormitories are constructed in connection with the Project, assign, and provide necessary support for teaching staff to reside in or adjacent to such dormitories. Such teaching staff shall provide remedial support and other activities to children living in the dormitories and maintain security of the dormitories at all times.

Schedule 4, para. 12

Complied Generally sound management of dorms (with resident teachers, etc.) at sites visited during missions. Support for remedial programs to ensure ef fectively targeting of learning needs of disadvantaged boarders was implemented to minimize repetition of in-class lessons.

20. Secondary Student Stipend Program. By end of 2012, guidelines for SSSP shall have been developed in consultation with ADB and approved by MOE. In particular, such guidelines shall provide: (a) Selection criteria for eligible students, including (i) Eligible students come f rom eligible secondary schools in rural and poor areas selected under the Project; (ii) Eligible students have successfully completed grade 5 examination f or lower secondary education stipend and grade 9 for upper secondary education stipend; (iii) At least half of the eligible students are female students including those f rom poor and disadvantaged ethnic groups; and (iv) Priority is given to students f rom ethnic groups. (b) The stipends are granted to disadvantaged students on a need basis, subject to their having completed the prior grade level, ability to maintain, and

Schedule 4, para. 13, 14

Complied The DGE and project draf ted a stipend guideline to include (a) to (f ). The draf t was shared and discussed to ref lect the local culture and social practice. The guideline was launched in SY2014/2015, followed trainings to district education officials and schoolteachers to the selection criteria, implement and report the stipend program.

Appendix 11 73

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

satisfactory attendance and performance; (c) Transparent mechanism of fund f low to benef iciary students and its monitoring; (d) Attendance and performance of such students shall be evaluated by the respective student-parent association at the end of each school semester and be reported to the provincial education service; (e) The stipends shall be terminated in cases where a student is unable to maintain a satisfactory level of performance and/or has been absent f rom school for and extended amount of time, and is unable to improve within a notified period, as may be determined by the respective student-parent association; and (f ) The list of the beneficiaries are made public at each primary school and forwarded to the provincial education service for information. The MOE shall ensure that SSSP is managed and implemented in accordance with the guidelines above, and shall not amend such guidelines without prior consent from ADB

21. Counterpart Funds. The Recipient shall ensure that (a) counterpart funds required during the Project implementation period are provided on time; (b) annual budgetary appropriation requests are submitted in a timely manner; and (c) appropriated funds are disbursed promptly when needed for Project implementation purposes.

Schedule 4, para. 15

Complied Counterpart funds were provided but of ten delayed. Annual budgets were provided but often delayed. Funds were disbursed according to the government procedures, which sometimes were delayed.

22. Governance and Anticorruption. The Recipient shall (a) comply with ADB’s Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, f raudulent, collusive or coercive practice relating to the Project; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation.

Schedule 4, para. 16

Complied The MOES and PMU had been very ef fective and appropriate in identifying an instance of potential conflict of interest, promptly reporting this to ADB, which confirmed MOES’ view and issued a sanction of the individuals and f irm in question. ADB received one other compliant, which was reviewed by ADB’s Office of Anticorruption and Integrity (OAI), per ADB procedures. OAI concluded that the allegations were unfounded: OAI’s assessment found no evidence of misrepresentation or corrupt practice.

23. The Recipient and MOE shall ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts,

Schedule 4, para. 17

Complied

74 Appendix 11

No.

Covenant

Reference in Grant

Agreement

Status of Compliance

including provisions specifying the right of ADB to audit and examine the records and accounts of the executing and implementing agencies and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

All the project bidding documents included clauses on anticorruption.

24. The Recipient shall maintain a website to disclose information about procurements related to the Project. For each contract, the website shall include information on, among others, the list of participating bidders, name of the winning bidder, basic details on bidding procedures adopted, amount of contract awarded, and the list of goods/services procured. In addition to the web-based disclosure, stakeholders, which include civil society and non-governmental organizations, shall be provided detailed information on procurement on public notice boards in their respective provinces. The Recipient shall also ensure that criteria and procedure for selection of candidates for stipends is similarly posted on the website

Schedule 4, para. 18

Complied The DGE and the project develop the project website, (www.sesdlaos.weebly.com) to include procurement information, which is periodically updated.

Appendix 12 75

ECONOMIC REEVALUATION

A. Introduction 1. In assessing the efficiency of Asian Development Bank (ADB) financing and the project, the economic reevaluation of the Secondary Education Sector Development Program (SESDP, the program) was carried out in accordance with ADB guidelines.1 At completion, this reevaluation updates the economic assessment using the same parameters as at appraisal. Cost-benefit analysis was not undertaken at appraisal or completion. B. Economic Justification 2. Macroeconomic and Sector Context. Following economic reforms and increased external orientation, the economy of the Lao People's Democratic Republic (Lao PDR) has experienced strong growth during the past decade, driven by the leveraging of natural resources and closer regional integration. Booming foreign direct investment in hydropower, minerals, and other products resulted in real gross domestic product (GDP) growth averaging 7.3% annually from 2010 to 2019. The Lao PDR met two out of the three United Nations (UN) eligibility criteria, i.e., per capita Gross National Income and Human Asset Index, for graduation from Least Developed Country (LDC) status for the first time in 2018. Lao PDR is recommended to graduate in 2026 from the Least Developed Country Category with an extended preparatory period. 2 Despite this growth, structural transformation from primary sector to industry and services has been slow. In 2018, services accounted for 48% of value added and 30% of employment, while industry accounted for 34% of value added and 10% of employment. Around 60% of the workforce remains employed in the low-paying agricultural sector, which accounts for only 18% of value added. The shift in the employment structure remains limited because of the capital -intensive nature of natural resource exploitation, weak infrastructure, and low employability of the labor force.3 3. Based on the latest Lao Expenditure and Consumption Survey conducted in 2018/19, the country’s poverty rate declined from 27.6% in 2007 to 18% in 2019 – mirroring rapid GDP growth.4 Labor force participation in 2017 was about 94%, with participation rates almost identical for women and for men. Unemployment fell over the same time period, from 0.4% to 0.2%.5 However the COVID-19 outbreak contracted GDP by -2.5% in 2020 and is expected to rebound to 4.5% growth, suggesting a slow recovery.6 The unemployment rate rose to over 23.4% in 2021.7 The pandemic’s impact on economic growth will exacerbate fiscal deficit and increase public debt services pressure. 4. The Ministry of Education and Sports (MOES) achieved many of the targets in the Education and Sports Sector Development Plan (ESSDP) 2016–20208 in collaboration with

1 ADB. 2017. Guidelines for the Economic Analysis of Projects. Manila 2 The United Nations Committee for Development Policy (CDP) announced on 26th February that having conducted

the triennial review of all Least Developed Countries (LDCs), Lao PDR has been reco mmended for graduation with

an extended 5-year preparatory period effectively setting the graduation to 2026 3 Lao PDR’s heavy reliance on the resources sector, particularly hydropower and mining, offer limited jobs and lack

industrial linkages to the rest of the economy. 4 Lao Statistics Bureau. World Bank. 2020. Lao PDR Poverty Profile and Poverty Assessment 2020. Vientiane.

5 World Bank. 2016. The Labor Impact of Lao Export Growth. Vientiane. 6 ADB. 2020. Asian Development Outlook 2020. Manila 7 UNDP. 2020. Socioeconomic Impact Assessment of COVID-19 in Lao PDR. Page 12. Vientiane 8 Ministry of Education and Sports. 2015. Education and Sports Sector Development Plan (ESSDP) 2016–2020.

Vientiane.

76 Appendix 12

development partners and other stakeholders, including the private sector. These achievements include increasing equitable access to education services at all levels; growing opportunities for children and youth in disadvantaged and remote areas to enroll at all levels; strengthened governance; improved quality and relevance of education; strengthening teachers’ and school management capacities; block grants for recurrent spending; and other safety net programs for poor students and teachers. Despite the progress that had been made, Lao PDR’s education sector is faced with several key challenges. Large disparities remain in access and quality between regions, ethnicity, income groups, and males and females. Shortfall in budget allocation and ineffective teacher deployment has adversely impacted the quality of teaching and student learning outcomes, particularly in rural, remote, and disadvantaged areas. Transition rates remain low and dropout rates are still high in secondary school, impeding progression to higher education. Engagement with private sector and adequate use of data will contribute to improved relevance of SES (aligned with National Socio-Economic Development Plan needs) and employability of graduates. 5. Enrolment in lower secondary education (LSE) improved, with the gross enrolment rate (GER) from 55.5% in 2009/10 to 81.2% in 2017/18. In 2017/18, GERs for girls (81.2%) are however lower than that of boys (84.9%). LSE survival rate to grade 8 in SY2017/18 was 81.0% for girls and 80.0% for boys in SY2017/18 (SY2007/08 baseline 79% for girls and 77% for boys).9 Upper secondary education (USE) GER reached 53.3% in 2017/18 from 33.9% in 2009/10. The

USE survival rate was 55.4% combined for girls and boys,10 SY 2017/18 (2007/08 baseline 51% for girls and 49% for boys). Despite these achievements, dropout rates for LSE and USE are still high due to other factors such as poverty, distance to school, ethnicity, and a lack of qualif ied and trained teachers on student-centered methods. The number of LSE teachers has increased steadily from 20,534 in SY2009/10 to 37,739 in SY2019/20. Critical quality improvement measures enabled MOES to outline further reform programs, including maintaining protected programs such as school block grants and textbook replenishment, improving the teaching and management profession, curricula reform, school network mapping, and strengthening Information and Communication Technology (ICT) in education. 6. The Lao PDR Government ascribed a high priority to education as a prerequisite for sustained economic growth and poverty reduction under the Seventh National Social and Economic Development Plan 2011–2015 (NSEDP). The priority on education is the basis for sustained economic growth and poverty reduction as central to the goal of progressing out of its least-developed country status. The MOES’ Education and Sports Sector Development Program 2021–202511 reaffirms its high prioritization of and commitment to secondary education subsector (SES) development for inclusive growth. Specific LSE priorities include: (i) expansion of LSE must be affordable and realistic but benefits of access will not occur until primary students have much improved numeracy and literacy skills; and (ii) enhanced learning outcomes and reduced disparities through efficient use of resources through targeting. The USE priorities include: (i) enhanced learning outcomes and reduced disparities through more effective and efficient management of resources through targeting improved education performance across the sector and in particular in the 40 most disadvantaged districts; and (ii) a review of the USE curriculum to determine the feasibility of implementing a dual stream curriculum and providing enhanced post-basic education to support the priorities of the 9th NSEDP.

9 Lao PDR has achieved near universal access to primary education with gender parity. 10 The restructuring of LSE and USE precluded precise calculation of transition rates across grades. Proxy indicator

was observed through cohort analysis of survival rate from grade 6 through completion of grade 12 as per

restructured USE system. 11 Ministry of Education and Sports. 2020. Education and Sports Sector Development Plan (ESSDP) 2021–2025.

Vientiane

Appendix 12 77

7. Economy-level benefits of secondary education. The economic returns of secondary education are high, particularly in developing economies. Lao PDR’s structural transformation from a subsistence (agrarian) to an integrated regional economy requires strong support from the education sector. Human capital accumulation through education are crucial dete rminants of labor market participation, job security, and earnings of individuals. Secondary education plays a vital role in promoting growth and development, as it supplies skilled work essential for Lao PDR’s shift to a more technologically advanced economy, attracting foreign direct investment, and increasing productivity and trade competitiveness created by shifting markets. While higher education generally yields the highest returns in advanced economies, the returns to primary and secondary schooling are particularly high in low-income countries.12 The secondary education subsector (SES) will make an increasingly vital contribution to inclusive growth as the Lao PDR transforms. The Lao PDR‘s reforms of LSE and USE curricula under the program explicitly targeted enhanced relevance to the labor market. Investments in expanding access to quality secondary education have an important redistributive effect, helping ensure that the population in less-developed poor areas can participate in, and benefit from, rapid national economic growth. 8. Individual-level returns to secondary education. At appraisal, empirical data indicated that the wage13 (i) returns to schooling were 10% per year of schooling; (ii) the returns to schooling were higher for women than for men; (iii) the returns to tertiary education were higher than the returns to primary or secondary schooling; and (iv) there was a declining trend over time, meaning that as schooling levels rise, the returns tend to decline, but only modestly. 14,15 Using the Lao PDR Expenditure and Consumption Survey data, returns to secondary education have been estimated to be at least 6% and appear considerably higher for ethnic group youth and among entrepreneurs.16 At completion, empirical studies indicated that the size of economic return is inversely related to the level of education. Hence on average, private returns to education were estimated at 25.4% for primary level, 15.1% for secondary level and 15.8% for tertiary level (average of 18.8%), while social returns were 17.5%, 11.8%, 10.5% (overall average return of 13.3% for all education levels). Disaggregating further by world region, private returns to schooling are highest in Latin America (11.0%) and Sub-Saharan Africa (10.5%) and lowest in the Middle East and North Africa 95.7%) vis-à-vis world region of 8.8%. The Middle East and North Africa is an outlier, given the relatively low average level of schooling. Returns are higher in low-income countries.17 The returns for those working in the private sector is higher than those working in the public sector. Returns to education are high to those who have access to good

12 G. Psacharopoulos and H.A. Patrinos. 2018. Returns to Investment in Education: A Decennial Review of the Global

Literature. 13 Returns to education have been estimated using two main methods – the full discounting method (provides private

and social returns) and the Mincerian earnings function (provides only private returns). The returns gave been

estimated based on a database of 1,120 estimates in 139 countries. Source: G. Psacharopoulos and H.A. Patrinos.

2018. Returns to Investment in Education: A Decennial Review of the Global Literature. 14 Returns to education have been estimated using two main methods – the full discounting method (provides private

and social returns) and the Mincerian earnings function (provides only private returns). The returns gave been

estimated based on a database of 1,120 estimates in 139 countries. Source: G. Psacharopoulos and H.A. Patrinos.

200420042018. Returns to Investment in Education: A Further Update. Education Economics 12(2). pp. 111–35.

H.A. Patrinos. 2015. 50 years of "Returns to Education" studies.Decennial Review of the Global Literature. 15 G. Psacharopoulos and H.A. Patrinos. 2004. Returns to Investment in Education: A Further Update. Education

Economics 12(2). pp. 111–35. H.A. Patrinos. 2015. 50 years of "Returns to Education" studies. 16 P. Onphanhdala and T. Suruga. 2009. Entrepreneurial Human Capital and Micro and Small Business in the Lao

PDR. The Developing Economies 48(2). pp. 181–202. 17 G. Psacharopoulos and H.A. Patrinos. 2018. Returns to Investment in Education: A Decennial Review of the

Global Literature.

78 Appendix 12

quality educational opportunities.18 In LAO PDR, the actual returns for women goes with international findings, which show female education exceed that of males by about two percentage points returns to the private returns to female education exceed that of males by about two percentage points. It is noted that the program has effectively supported MOES in addressing gender equality of SES in terms of access, quality, and management. 9. Broader socioeconomic returns. Academic literature confirms that investment in education has positive macroeconomic impacts, in that it increases national productivity, accelerates growth, and supports a structural and transformational shift in the economy. It has been estimated that a one-year increase in average education is found to raise the level of output per capita by between 3% and 6% according to augmented neo‐classical specifications, while leading to an over one percentage point faster growth according to estimates from the new‐growth theories. Education’s role is deemed vital in developing economies like Lao PDR, where it expands the supply of skilled workers to allow the economy to transition to more technologically advanced economy, attract foreign direct investment, and increase trade competitiveness.19 In Lao PDR and other developing countries, secondary education has a strong gender equalizing effect conveys especially large socioeconomic benefits to the poor, ethnic groups, and other disadvantaged groups by allowing them to fully participate in society and the economy. Such social benefits have had positive externalities, confirming justification for investment in SES. C. Efficiency Gains of The Program

10. The program design was cost-effective and enhanced equity. The comprehensive package of interventions supported under SESDP’s PBL and project grant provided a key backbone for continuing SES efforts. The program design provided a combination of interlinked initiatives to tackle key challenges related to low quality and low completion rates in secondary education that constrain the Lao PDR’s human capital formation. Program and project interventions addressed an array of demand- and supply-side constraints, including: (i) school network coverage; (ii) SES curriculum reform; (ii) f inancial and opportunity costs, through policy and project support for LSE and USE stipend programs and school block grants; (ii) student access grants and targeted remedial support; (iii) extensive learning resource materials distribution, nationwide communication strategy, and advocacy campaigns in targeted districts; and (iv) teacher and management professional development. Program features that were cost-effective and contributed to enhancing the efficiency of the SES education system included: (i) policy actions for directing resources to schools through block grants to meet school recurrent cost needs; and (ii) project interventions for building school management and the pupil–parent associations’ (PPAs’) capacity for developing and implementing the school access grants, addressing issues affecting students at risk of dropping out, and the piloting of Graduate Teacher Placement Scheme (GTPS) to support student-centered curriculum in the target districts. 11. Geographic targeting. While the program was nationwide in scope, directly supporting critical sector reforms, project interventions (particularly access-related investments under output 1) were geographically targeted to 30 districts classified as both the poorest and most educationally disadvantaged. Table A12.1 shows SES enrolment at appraisal (school year SY2009/10) for three types of areas: (i) the Lao PDR as a whole; (ii) 48 districts classified as poorest; and (iii) a further subset of 30 geographically targeted districts. Comparison between

18 G. Psacharopoulos and H.A. Patrinos. 2018. Returns to Investment in Education: A Decennial Review of the Global

Literature. 19 E.D. Peet, G. Fink, and W. Fawzi. 2015. Returns to Education in Developing Countries: Evidence from the Living

Standards and Measurement Study Surveys. Economics of Education Review, 17 (C), pp. 69–90.

Appendix 12 79

these groups shows the influence of socioeconomic factors (gender gaps, enrolment, average school size) that have implications on both quality and efficiency.

Table A12.1: Secondary Enrolment, Teachers, and Mean School Enrolment,

At Appraisal and Completion

LSE=lower secondary education, SES=secondary educatio n subsector, USE-upper secondary education

Sources: Ministry of Education and Sports (MOES); ADB. 2008. Report and Recommendation of the President to the

Board of Directors: Proposed Loan and Grant Lao People’s Democratic Republic: Secondary Education Sector

Development Program. Manila. 12. At appraisal, student dropout was deemed most problematic in the geographically targeted 30 districts, and hence their strategic importance for program support. The lack of multiyear district data (further complicated by the recent restructuring of LSE and USE) precludes precise calculation of transition rates across grades and dropout. However, rough estimates were generated using Education Management Information System (EMIS) data for SY2009/10. The analysis confirmed that constraints on access are particularly acute in the target districts, especially considering that a much smaller share of children in these areas will have graduated from primary school. The continued downward trend suggests that dropouts are particularly prevalent in the 30 target districts, with only 40% of primary school graduates reaching the final year of LSE (grade 9) (compared with 60% nationwide) and only 25% entering USE (grade 10) (48% nationwide). EMIS estimates show that less than 50% of children who enter LSE in the 30 districts will complete grade 9, implying a very high level of wastage in education investments by both the government and households. 13. As shown in Table A12.2, the program at completion achieved the following at national level: (i) GER for girls in LSE increased by 46.3% from 55.5% in SY2009/10 to 81.2% in SY2017/18; (ii) USE GER reached 53.3% in 2017/18 from 33.9% in 2009/10; (iii) survival rate to grade 8 grew from 77.0% (male) and 79.0% (female) in SY2009/10 to 80.0% (male) and 81.0% (female) in SY2017/1820; (iv) survival rate of grade 6 to grade 11 (12) completion grew from 49.0% (male) and 51.0% (female) in SY2009/10 to 55.4% (combined) in SY2017/18; and (v) ratio of girls to boys enrolled in secondary education increased from the 0.81 in SY2009/10 to 0.92 in SY2017/18. In the target districts, the program at completion achieved the following: (i) total LSE enrollment in 30 target districts was 65,967 in SY2017/18, doubling enrolment dur ing SY2009/10; and (ii) the average dropout rate for LSE stipend recipients was 14% compared to 28 -31% nationally.21 Despite these achievements, dropout rates for LSE and USE are still high due to

20 Statistical deterioration resulted due to the restructuring of the SES which precluded precise calculation of transition

rates across the grades. Baseline values were based on pre-reform restructuring of the secondary education system.

EMIS survival data was unavailable due to the extension of LSE by the MOES from 3 years to 4 years and the

subsequent addition of USE grade 12. Data was tracked based on a restructured system. 21 Lao PDR: Secondary Education Sector Development Project (SESDP): Project Impact Assessment. Independent

consultant’s report prepared for Ministry of Education and Sport, Lao PDR (November 2019)

Total

(Grade

6,7,8,9)

Female

Total

(Grade

10,11)

Female Number Female Number

Avg.

Class

Size

Total (Grade

6,7,8,9)Female

Total

(Grade

10,11)

Female Number Female Number

Avg.

Class

SizeLao PDR 335,388 44.8% 98,039 44.3% 20,534 47.3% 1,174 369 447,757 48.0% 155,812 46.8% 38,171 51.0% 1657 364

48 poorest districts 76,006 41.9% 16,178 39.5% 4,218 35.3% 302 306 172,864 48.3% 57,026 47.6% 12,526 52.1% 529 435

30 target districts 33,656 40.8% 6,640 39.4% 2,017 36.7% 159 253 65,967 46.0% 17,811 44.1% 4,738 55.1% 307 273

SES SchoolsArea

At Appraisal (SY2009/10)

LSE Enrolment USE Enrolment SES Teachers SES Schools LSE Enrolment USE Enrolment SES Teachers

At Completion (SY2017/18)

80 Appendix 12

other factors such as poverty, distance to school, ethnicity, and a lack of qualif ied and trained teachers on student-centered methods.

Table A12.2: Selected Education Indicators at National Level and 30 Target Districts (At Appraisal, Program Targets, and Completion)

GER = gross enrolment rate, LSE = lower secondary education, SES = secondary education system, SY= school year,

USE = upper secondary education a 2019/20 b The restructuring of LSE and USE precluded precise calculation of transition rates across grades. Proxy indicator was

observed through cohort analysis of survival rate from grade 6 through completion of grade 12 as per restructured USE

system

Sources: Ministry of Education and Sports (MOES); ADB. 2008. Report and Recommendation of the President to the

Board of Directors: Proposed Loan and Grant Lao People’s Democratic Republic: Secondary Education Sector

Development Program. Manila. 14. At completion, all policy and project interventions were substantially achieved. On the policy side, only one policy tranche condition was not achieved, as education budgetary as a percentage of state budget did not reach the target of 18%. Cost overruns of around 25% in the civil works component due primarily to cost escalation of construction materials. Project interventions met or exceeded most targets with cost savings from appraisal estimates. Increased enrolment, and improved dropout, cohort survival, and completion rates in the 30 disadvantaged areas connotes efficiencies in project investments. While diff icult to quantify, the program has generated substantial gains in system-wide allocative efficiency. D. Beneficiary Analysis 15. The program provided subsector-wide support for the SES through reforms under the program loan and nationwide project investments covered in the three project outputs of access, quality and relevance, and management. The main program beneficiaries of the program were LSE and USE students. Table A12.3 provides a summary of the number of LSE and USE

LSE USE LSE USE LSE USE LSE USE

National Level

GER (overall) - 33.9% - - 83.1% 53.3% - 57.2%

GER (male) - - - - 84.9% 50.8% - -

GER (female) 55.5% - 75.0% 81.2% 55.7% 46.3% -

Survival rate (overall) 78.0% 50.0% - - 80.5% 3.2%

Survival rate (male) 77.0% 49.0% 87.0% - 80.0% 3.9%

Survival rate (female) 79.0% 51.0% 89.0% - 81.0% 2.5%

Ratio of male to female in SES 0.81 - 13.6% -

Dropout rates of stipend receipients - - - - 28%-31% - - -

30 Target Districts -

Enrolment (30 districts) 33,656 - 44,000 - 65,967 - 96.0% -

Transition rate NA - - - 83.3% 78.3% - -

Dropout rate (male) NA - - - 11.0% 8.6% - -

Dropout rate (female) NA - - - 10.9% 9.4% - -

Repetition rate (male) NA - - - 1.3% 0.6% - -

Repetition rate (female) NA - - - 0.4% 0.1% - -

Dropout rates of stipend receipients NA - - - 14.0% - -52.5% -

1.0 0.92

Indicators

At Completion

(SY2017/18)

Program Targets

(SY2009/10)

At Appraisal

(SY2009/10)

55.4%

(+/-)

10.8%

Appendix 12 81

students reached by program interventions. The summary also includes the number of LSE and USE students reached who belong with ethnic minority groups.

Table A12.3: Summary of Program Beneficiaries

a Additional dormitory space, expanded remedial support and school income generating activities b PPA members trained in community supervision of stipend awards, attendance, and completion rates

GTPS = Graduate Teacher Placement Scheme, LSE = lower secondary education, PPA = pupil–parent association, SES

= secondary education system, SPA = Secondary Pedagogical Advisors, STEP = Secondary Teacher Education, USE

= upper secondary education

Program LSE USE Ethnic

Minority Total

Stipend program (students) 1,740 1,200 1,566 2,940

Access grants to PPAsa

(schools) 60 15 75

Remedial classes 1,686 150 1,715 1,836

Textbooks-Grades 8-9 2,040,000 1,200,000 3,240,000

Teachers' guides and

textbooks 127,793 150,140 277,933

Master's trainers 33 33

SPA training 3,228 3,228

Teachers training 13,227 11,853 25,080

STEP bachelors' degree 37,739

GTPS deployment 65 65

SES school principals training 1,563

Central/district education

offices management training 1,265

PPA members' trainingb 50

Block grants (student/year) 429,150 205,574 634,724

School network mapping

(schools) 967 34 1,001

37,739

1,563

82 Appendix 13

FINANCIAL REEVALUATION

A. Introduction 1. A financial reevaluation was conducted for the Secondary Education Sector Development Program (SESDP) and was prepared in accordance with the guidelines of the Asian Development Bank (ADB).1 The financial reevaluation includes (i) an assessment of the education sector financing vis-à-vis the overall macroeconomic trends; and (ii) a sustainability analysis. The financial reevaluation of the program was undertaken based on updated budgetary data, actual project investment costs, and incremental operation and maintenance (O&M) costs. B. Education Sector Finance

2. Education budget and components. Following economic reforms and increased external orientation, the economy of the Lao People's Democratic Republic (Lao PDR) has sustained rapid growth in recent years. The gross domestic product (GDP) grew at an average of 7.3% during the past decade. The government has continued to prioritize education. Lao PDR's actual expenditure on education as a percentage of its GDP has decreased from 3.1% in 2015/16 to 2.5% in 2019/20, a level of spending still lower than Organization for Economic Co-operation and Development (OECDs) average of 5.8%. As a percentage of total government expenditures, Ministry of Education and Sports (MOES) actual recurrent spending decreased from 15.6% in 2015/11 to 11.3% in 2019/20. With the official development assistance (ODA) component of the total budget,2 government financing for education was maintained at an average of $0.47 million annually between fiscal year FY2015/16 and FY2019/20. During the period 2015/16 to 2019/20, total government expenditure increased by an average of 0.4% and are projected to increase post-pandemic (Education and Sports Sector Development Plan 2021–2025)3. As can be gleaned from the table, budget realization decreased from 95.1% in 2015/16 to 65.5% in 2017/18 and rose again to 95.7% in 2018/19. Table A13.1 shows trends in education expenditure in Lao PDR.

Table A13.1: Budgetary Allocations in the Education Sector, 2015/16 to 2021/22

Sources: MOES financial data for FY2015/16 to FY2019/20 and Asian Development Bank estimates.

1 ADB. 2019. Financial Analysis and Evaluation: Technical Guidance Note. Manila 2 In the Lao PDR, ODA allocated to education is included in the official education sector budget. 3 Ministry of Education and Sports (MOES). 2020. Education and Sports Sector Development Plan, 2021–2025.

Vientiane.

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

GDP ($ Billion) 15.91 17.06 18.14 18.17 17.50 19.90 20.40

GDP (Kip Billion) 129,279 140,698 152,414 155,263 154,788 176,016 180,438

GDP growth 7.0% 6.9% 6.2% 5.0% -2.5% 4.5% 7.3%

GDP per capita growth 5.5% 5.3% 5.3% 2.7% 1.1% 3.9% 4.0%

Exchange rate 8,124 8,245 8,401 8,545 8,845 8,845 8,845

Gov't expenditure (Kip Billion) 28.47 29.55 29.47 31.54 31.44 35.75 36.65

Gov't expenditure ($ Billion) 3.50 3.58 3.51 3.69 3.55 4.04 4.14

MoES expenditure (Kip Billion) 4.02 4.04 4.15 4.04 3.97 4.52 4.63

MoES expenditure ($ Billion) 0.49 0.49 0.47 0.45 0.43 0.49 0.50

% MoES to GDP 3.1% 2.9% 2.6% 2.5% 2.5% 2.5% 2.5%

% MoES to Govt expenditure 15.6% 13.0% 12.7% 12.2% 11.3% 12.2% 12.1%

Budget Realization (%) 95.1% 89.5% 65.5% 95.7% 95.7% 95.7% 95.7%

Actual BudgetResource Estimate

Appendix 13 83

3. Unsustainable and rising public debt necessitated the endorsement of a fiscal consolidation framework to stabilize the public debt. Public outlays were rationalized through tighter control of the public wage bill and downward adjustment of non-wage current spending. Hence, since 2015/16, the education sector faced the strict budgetary constraints as the Government has given priority to containing the recurrent budget, and to increasing capital investment in major infrastructure projects. Anticipated increases in the education budget have not yet materialized. While ODA allocated to the education sector has provided critical support to sector growth, these has fallen in recent year which has averaged only 13.2% of education sector budgets. Support for evidence-based planning and rationalization of post-primary education is envisioned to improve the allocative efficiency of education sector financing by directing resources toward the most critical constraints. Table A13.2 indicates the limited fiscal space in education spending.

Table A13.2: Education Sector Budget, 2015/16 to 2019/20 (Kip Billion)

ODA=official development assistance

Sources: MOES financial data, 2015/16 to 2019/20 and Asian Development Bank estimates 4. Government finance and education expenditure. The Education Law stipulates that education’s share of the total government budget shall reach a benchmark target of 18%, which the government has targeted for achievement by FY2016.4 The program directly supported the government’s commitment to reach and maintain that target.5 However, due to tight fiscal constraints, the education sector share of the budget has remained consistently below this target. The Education and Sport Sector Development Program (ESSDP) 2016–2020 called for simultaneous education system expansion and quality improvement. To finance this policy, it called for an increased share of the State Budget from 13% to 18% and for increased ODA to cover the financing gap. The ESSDP 2016–2020 identified the low level of non-wage recurrent spending as a major constraint to improving quality of teaching and learning and strengthening governance. It therefore prescribed an increase of the share of non-salary recurrent expenditures to 25% of the total education budget by 2015, notably with the introduction of school block grants for operational expenditures. However, priority was clearly on system expansion (school construction and recruitment of teachers) and salary increases. As shown in the table above, the

4 Budget share calculations use the accepted definition in the Lao PDR which expresses total budget allocation to

the education sector as a proportion of the government budget, inclusive of ODA and net of debt servicing. 5 Achieving 18% allocation to education by FY2016 was a policy condition for the program loan.

2015/16 2016/17 2017/18 2018/19 2019/20

Education as % of National budget 15.63% 13.00% 12.69% 12.24% 11.25%

Budget Plan 3,847 3,749 4,499 4,090 4,540

Actual Budget Allocation 4,024 4,037 4,148 4,038 3,972

Official Development Assistance (ODA) 605 511 512 478 556

% ODA to Actual Budget Allocation 15.0% 12.7% 12.3% 11.8% 14.0%

Actual Expenditure 3,253 3,155 2,381 3,408 3,352

Non-Salary Recurrent Expenditures 974 739 510 929 1,083

% Non-Salary Recurrent Expenditure 29.9% 23.4% 21.4% 27.3% 27.3%

State Budget, including ODAItem

84 Appendix 13

share of non-wage operational expenditures ranged from 21.1% to 29.9% of the total education budget from 2015/16 to 2019/20. The shortfall in budget allocation for the education sector in the last few years will need to be reversed. The ESSDP 2021–2025 aims to enhance the quality and efficiency of education spending, including strengthening the linkage between planning and budgeting as well as coordination between central and local levels on financial data collection. Fiscal constraints will remain at least until the post-pandemic era. Therefore, the sector needs to determine how to use its human and financial resources more efficiently while reducing disparities. The priority will be to maintain sufficient financing for ongo ing ‘protected’ programs (e.g., school block grants, stipends, and school access grants, etc.). C. Sustainability 5. Policy reforms and project interventions aimed at improving quality, relevance, access in Secondary Education Sector (SES), have resulted in increased enrolment, and reduced repetition and dropout rates. Education expenditure in Lao PDR from 2015/16 to up 2021/22 indicates an increasing trend, particularly for non-salary recurrent budget. Planned increases yield sufficient resources for sustaining the positive outcomes envisaged under the program at appraisal. The MOES projected budget (ESSDP 2021 to 2025) indicates sufficient allocation of resources for sustaining the positive outcomes envisaged under the program. The adoption of a revised unit cost for school block grants have increased the overall budget allocations to SES to ensure sustained efforts toward improved student progression and completion rates. The program and project interventions has contributed to reducing the disparity between urban and remote areas. Public recurrent funding of SES in Lao PDR has been increasing with government commitment to further increases. The government endeavors to increase the education budget to 18% of the total state budget. 6. Incremental Fiscal Impact Analysis. The program consisted of activities designed to support the MOES in the implementation of SES subsector plans. The fiscal impact analyses was based on a total program cost of about $45.5 million, consisting of the PBL of $10.0 million and project loan of $35.5 million. The fiscal impact of the SESDP is shown in Table A13.3, which presents: (i) the projected total annual government education budgetary expenditures; (ii) the funding needed to maintain incremental unconstrained O&M of the network of assets managed by MOES; (iii) inflation-linked increase in O&M, and (iv) incremental requirement for the ADB project. Costs for continuing the implementation of activities related to following project interventions are likely to be absorbed by the MOES budget: professional development of teachers and school management, textbook and teaching guide distribution, school access grants, school block grants, stipends, curriculum reform, integration of school network mapping, and strengthening of pupil–parent associations (PPAs). Maintenance of civil works under the program such as the newly constructed and expanded SES schools and dormitories, along with equipment and furniture, is likely to be absorbed by school block grants which are designed to cover the cost of basic maintenance for school buildings and associated physical facilities.

Appendix 13 85

Table A13.3: Ministry of Education and Sports Fiscal Impact Analysis (Kip Billion)

ADB = Asian Development Bank, GDP = gross domestic product, MOES = Ministry of Education and Sports, O&M =

operation and maintenance

Source: Asian Development Bank estimates. 7. Table A13.3 provides a summary of the incremental recurrent cost analyses of SESDP. The fiscal impact analysis considered the overall O&M cost requirements of MOES’ unconstrained asset network (inclusive of project assets) against the financial capacity of MOES. Education budgetary expenditure from FY2021 to FY2030 (based on inflation) is expected to increase based on historical trends and on planned budgets as per the MOES sector plan. 6 An allocation of 25% to non-salary recurrent expenditure is mandated by government (para 18). Based the sector plan, the annual unconstrained O&M requirements of MOES is projected to increase around 1.7 times during the 10-year projection period. The incremental recurrent cost analysis shows that the government, as the end-borrower, will incur continuous O&M shortfalls in its unconstrained requirements and allocations. This shortfall is expected to decrease from 41% in 2021 to 24% by 2030, which will be largely due to the country’s expected fiscal space post-COVID 19 pandemic. Table A13.3 indicates that O&M funding or execution can adversely affect the sustainability of SESDP. 8. In alignment with the National Socio-Economic Development Plan (NSEDP), securing the stipulated 18% share of the State budget for the education sector (para 18) is a key education expenditure policy to ensure the sustainability of the education system. The share of education sector share budget allocated to the non-wage recurrent expenditure is expected to significantly increase. The government is committed to improve the quality and efficiency in education spending. Improving efficiency of budget allocation will be done through the development of a budget prioritization framework to be applied during the central and sub-national budget

6 Footnote 3. The estimated financial scenario of the ESSDP 2021-2025 is based on 2 scenarios: (i) “steady-state”

budget scenario, and (ii) an enhanced quality scenario that will require higher levels of funding. The projections in

Table A13.3 for the MOES’ O&M unconstrained recurrent cost are based on scenario (ii).

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

GDP 180,438 189,460 198,933 208,880 219,324 230,290 241,804 253,894 266,589 279,919

Education Budget Allocation 4,367 4,891 5,478 6,026 6,628 7,291 8,020 8,662 9,355 10,103

Non-Salary Recurrent Budgetary Expenditures 1,092 1,163 1,236 1,506 1,657 1,823 2,005 2,165 2,339 2,526

Non-Salary Recurrent Budgetary Exp Execution 1,045 1,113 1,183 1,442 1,586 1,744 1,919 2,072 2,238 2,417

Budget execution (%) 95.7% 95.7% 95.7% 95.7% 95.7% 95.7% 95.7% 95.7% 95.7% 95.7%

% Non-Salary Recurrent Expenditure 25.0% 23.8% 22.6% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%

MOES Unconstrained O&M Requirements 1,767 1,807 1,862 1,917 1,994 2,094 2,198 2,418 2,660 2,926

MOES Allocation 4,367 4,891 5,478 6,026 6,628 7,291 8,020 8,662 9,355 10,103

MOES Execution (95.7%) 4,179 4,681 5,242 5,767 6,343 6,978 7,675 8,289 8,952 9,669

Percentage of unutilized budget 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3%

Other Information

Increase in budget 8.0% 12.0% 12.0% 10.0% 10.0% 10.0% 10.0% 8.0% 8.0% 8.0%

Annual Inflation 2.0% 1.8% 1.8% 2.5% 1.8% 1.8% 3.0% 1.8% 1.8% 2.5%

Inflation linked increase in O&M 44 44 49 75 60 66 120 78 84 126

Incremental requirement for ADB project/year 35 36 38 40 42 44 46 48 50 53

Coverage of MOES' budget of unconstrained

O&M requirements 59% 62% 64% 75% 80% 83% 87% 86% 84% 83%

Total Shortfall with ADB Project 41% 31% 29% 26% 25% 24% 23% 23% 24% 24%

Indicator

Projection

86 Appendix 13

formulation and revision process. Such measures include: (i) introducing Medium Term Budget Framework with sector ceilings; (ii) maintaining protected programs/budgets-school block grants, textbooks, non-salary recurrent budgets); and (iii) reducing provincial/district disparities (poverty, remoteness, number of schools and students. etc.), among others. Policy reforms and project interventions of ADB’s and development partners’ projects aimed at improving sector efficiency are likely to create future budget savings. Government will continue to shift resources from capital to recurrent spending, hence, ensuring non-salary recurrent budgets to increase further. 9. The project cost and financing estimates include O&M of facilities, which will also be included in MOES budget request. MOES’ capacity to monitor budget allocations and utilization will help meet O&M recurrent costs of its network of facilities. The government is committed to provide the necessary recurrent funds following project completion to ensure the continued benefits of the investment. This commitment was also reflected in the loan agreement for SESDP, between the Borrower and ADB.