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Document of

The World Bank

Report No: ICR00001614

IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-72200)

ON A LOAN

IN THE AMOUNT OF EURO 104.4 MILLION (US$130.3 MILLION EQUIVALENT)

TO THE

REPUBLIC OF TUNISIA FOR AN

EDUCATION PROJECT IN SUPPORT OF THE SECOND PHASE OF THE EDUCATION QUALITY IMPROVEMENT PROGRAM (EQIP II)

March 28, 2011

Human Development Sector

Middle East and North Africa Region

Public Disclosure Authorized

Public Disclosure Authorized

Public Disclosure Authorized

Public Disclosure Authorized

Public Disclosure Authorized

Public Disclosure Authorized

Public Disclosure Authorized

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CURRENCY EQUIVALENTS (Exchange Rate Effective October 1, 2003)

Currency Unit = Tunisian Dinar (TND) TND 1.28 = US$1.00

US$0.78 = TND 1.00 FISCAL YEAR January 1 – December 31

ABBREVIATIONS AND ACRONYMS ANPE Agence nationale pour la protection de

1’environnement (National Environmental Protection Agency)

LCS Least-Cost Selection

APC Approche par compétence (Skills-Based Approach to Teaching and Learning)

MDG Millennium Development Goals A P L Adaptable Program Lending MET Ministry of Education and Training

(Ministre de l’éducation et de la formation)

BEPP Bureau des études, de la planification et de la programmation (Office of

Research and Planning)

MPWH Ministry of Public Works and Housing (Ministre de l’équipement et de l’habitat)

CNIPFG Centre national d’innovation pédagogique et de recherche en éducation (Education Research Center)

NBF Non-Bank Financed

CQ Selection Based on Consultants’ Qualifications

NCB National Competitive Bidding

CREFOC Centre régional de formation continue (Regional In-Service Teacher Training Center)

OED Operations Evaluation Department

DBE Direction des bâtiments et de

l’équipement (Buildings and Equipment Division)

OM Operations Manual

DGSC Direction générale des services communs (General Administration Department)

PCN Project Concept Note

DRE Direction régionale de l’éducation (MET Regional Office)

PIC Public Information Center EQIP Education Quality Improvement Project PID Project Information Document IAPSO Inter-Agency Procurement Services

Office (United Nations)

PSR Project Supervision Report IBRD International Bank for Reconstruction

and Development

QBS Quality-Based Selection

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ICR Implementation Completion Report SBD Standard Bidding Documents ICT Information and communication

technologies

SEC Secondary Education (Grades 10- 13) [lycée]

IFC International Finance Corporation SFB Selection under a Fixed Budget INBMI Institut national de bureautique et de

micro-informatique (National Institute for School Information Technology)

SOE Statement o f Expenditures

INS Institut national de la statistique (National Statistics Institute)

SSS Single Source Selection

ISDS Integrated Safeguards Data Sheet TIMSS Third International Mathematics and Science Survey

LIB Limited International Bidding TND Tunisian Dinar LBE Lower Basic Education (Grades 1-6)

[école primaire]

UBE Upper Basic Education (Grades 7-9) [collège]

Vice President: Shamshad Akhtar Country Director: Simon Gray

Sector Manager/Director: Mourad Ezzine/Steen Jorgensen Project Team Leader: Adriana Jaramillo

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REPUBLIC OF TUNISIA

Education Quality Improvement Program (EQIP) II

CONTENTS

DATA SHEET

A. BASIC INFORMATION B. KEY DATES

C. RATINGS SUMMARY D. SECTOR AND THEME CODES E. BANK STAFF

F. RESULTS FRAMEWORK ANALYSIS

G. RATINGS OF PROJECT PERFORMANCE IN ISRS H. RESTRUCTURING

I. DISBURSEMENT GRAPH

1. PROJECT CONTEXT, DEVELOPMENT OBJECTIVES AND DESIGN ... 1

2. KEY FACTORS AFFECTING IMPLEMENTATION AND OUTCOMES ... 11

3. ASSESSMENT OF OUTCOMES ... 17

4. ASSESSMENT OF RISK TO DEVELOPMENT OUTCOME ... 21

5. ASSESSMENT OF BANK AND BORROWER PERFORMANCE ... 22

6. LESSONS LEARNED ... 25

7. COMMENTS ON ISSUES RAISED BY BORROWER/IMPLEMENTING AGENCIES/PARTNERS . 27 ANNEX 1. PROJECT COSTS AND FINANCING ... 28

ANNEX 2. OUTPUTS BY COMPONENT ... 30

ANNEX 3. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION PROCESSES ... 35

ANNEX 4. SUMMARY OF BORROWER'S ICR AND/OR COMMENTS ON DRAFT ICR ... 37

ANNEX 5. LIST OF SUPPORTING DOCUMENTS ... 39

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A. Basic Information

Country: Tunisia Project Name:

Education Quality Improvement Program (EQIP) Phase 2 Project ID: P082999 L/C/TF Number(s): IBRD-72200 ICR Date: 03/30/2011 ICR Type: Core ICR

Lending Instrument: APL Borrower: GOVERNMENT OF TUNISIA

Original Total

Commitment: USD 130.3M Disbursed Amount: USD 129.0M Revised Amount: USD 130.3M

Environmental Category: B Implementing Agencies:

MINISTERE DE L'EDUCATION ET DE LA FORMATION Cofinanciers and Other External Partners:

B. Key Dates

Process Date Process Original Date Revised / Actual

Date(s) Concept Review: 07/14/2003 Effectiveness: 05/24/2004 05/24/2004 Appraisal: 11/25/2003 Restructuring(s): 06/13/2008 Approval: 03/08/2004 Mid-term Review: 10/10/2006

Closing: 06/30/2008 09/30/2010

C. Ratings Summary

C.1 Performance Rating by ICR

Outcomes: Satisfactory

Risk to Development Outcome: Moderate

Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)

Bank Ratings Borrower Ratings

Quality at Entry: Moderately Satisfactory Government: Moderately Unsatisfactory Quality of Supervision: Satisfactory Implementing

Agency/Agencies: Moderately Satisfactory Overall Bank

Performance: Moderately Satisfactory

Overall Borrower Performance:

Moderately Unsatisfactory

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C.3 Quality at Entry and Implementation Performance Indicators

Implementation

Performance Indicators

QAG Assessments

(if any) Rating

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

Quality at Entry

(QEA): None

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

Quality of

Supervision (QSA): None DO rating before

Closing/Inactive status: Satisfactory

D. Sector and Theme Codes

Original Actual

Sector Code (as % of total Bank financing)

Central government administration 12 12

Primary education 40 40

Secondary education 40 40

Sub-national government administration 8 8

Theme Code (as % of total Bank financing)

Education for all 50 50

Education for the knowledge economy 50 50

E. Bank Staff

Positions At ICR At Approval

Vice President: Shamshad Akhtar Christiaan J. Poortman Country Director: Neil Simon M. Gray Theodore O. Ahlers Sector Manager: Mourad Ezzine Regina Maria Bendokat Project Team Leader: Adriana Jaramillo Jeffrey Waite

ICR Team Leader: Adriana Jaramillo

ICR Primary Author: Juan Manuel Moreno Olmedilla

F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document)

Promote excellence in teaching and learning throughout the school sector, while continuing the push for the inclusion of all children at all levels of the basic education system.

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(a) PDO Indicator(s)

Indicator Baseline Value

Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years

(b) Intermediate Outcome Indicator(s)

Indicator Baseline Value

Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years

G. Ratings of Project Performance in ISRs

No. Date ISR

Archived DO IP Actual Disbursements (USD millions) 1 07/12/2004 Satisfactory Satisfactory 3.68 2 02/18/2005 Satisfactory Satisfactory 7.88 3 12/16/2005 Satisfactory Moderately Satisfactory 18.77 4 07/22/2006 Satisfactory Moderately Satisfactory 38.47 5 12/27/2006 Satisfactory Moderately Satisfactory 47.19 6 06/19/2007 Satisfactory Moderately Satisfactory 59.96 7 11/02/2007 Satisfactory Moderately Unsatisfactory 72.50 8 06/28/2008 Satisfactory Satisfactory 89.06 9 12/21/2008 Satisfactory Satisfactory 96.05 10 06/26/2009 Satisfactory Satisfactory 104.67 11 12/30/2009 Satisfactory Satisfactory 108.84 12 05/26/2010 Satisfactory Satisfactory 119.62 13 09/23/2010 Satisfactory Satisfactory 122.55

H. Restructuring (if any)

Restructuring Date(s) Board Approved PDO Change ISR Ratings at Restructuring Amount Disbursed at Restructuring in USD millions

Reason for Restructuring & Key Changes Made

DO IP

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1. Project Context, Development Objectives and Design

1. This project was the second phase of the Education Quality Improvement Program (EQIP II), a two-phase Adaptable Program Lending (APL) that was prepared in a stable economic, political and demographic context. The implementation of EQIP I, designed to support the Government of Tunisia’s ambitious national education reform known as “School of Tomorrow,” was satisfactory, and the performance triggers set for the transition to the second phase of the APL were fully met.

2. The “School of Tomorrow” education reform was developed around five main areas: (i) revamping curricula and teaching and learning methods as well as improving the evaluation system of all levels; (ii) professionalizing teaching through a reform of the in-service training of teachers and principals, and revising the roles and responsibilities of teaching personnel; (iii) decentralizing the education system and creating more space for civil society to play a greater role; (iv) making the education system more equitable and inclusive; and (v) modernizing schools by integrating new information technologies into curricula and management.

3. The first phase of EQIP advanced very well the implementation of this ambitious reform, and the triggers for the second phase of EQIP were fully met by 2004 as follows:

(i) Generalization of competency-based learning for grades 3 and 4 in all schools, completed by the beginning of the school-year 2003-2004, including all grade 5 teachers trained.

(ii)Generalization of two-grade sub-cycles in grades 1 through 4 in all schools was completed by the beginning of the 2003-2004 school year.

(iii) Extension of school self-assessments, as defined by school charters in at least 25 percent of schools. This was completed in 90 percent of schools.

(iv)Development of a sector-wide strategy to manage student flows was completed. 4. Among EQIP I achievements, it is important to underline the increased student transition rate from basic into secondary education, mainly because of the abolition of the ‘entrance’ exam into secondary. As a consequence, repetition and dropout rates decreased dramatically in Lower Basic Education (LBE). To monitor learning outcomes, a national exam was introduced at the end of grade 4, to be complemented with results from the Trends in Mathematics and Science Test (TIMSS). However, repetition rates and dropouts in secondary continued to be a problem, and the anticipated expansion of that level of education would clearly increase the size of the challenge. Therefore, the challenge for the Government was to respond to the increasing diversity of secondary education students by widening the range of education opportunities and improving the conditions for teaching and learning.

5. Education expenditure as a share of total public expenditure and GDP was already significant, and that share could not be expected to increase. Given the rapid increase in

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the number of students entering secondary, it was reasonable to expect the Government to look for cost-effective solutions that would guarantee the fiscal sustainability of its ambitious reform program. The second phase of EQIP was designed to support critical parts of the Education Action Plan, and therefore to fit into the Government’s overall education strategy. The project was meant to contribute to a better qualified labor force capable of competing in the global economy, by: (i) developing better links between secondary education, on the one hand, and vocational training and higher education institutions, and the labor market, on the other; and (ii) diversifying the secondary education curriculum in ways that would be more relevant to the needs of the Tunisian society and economy.

1.1 Context at Appraisal

6. Tunisia’s political and economic context had been reasonably stable for many years, and education has been a priority sector for decades. The Bank has a long tradition of support to the sector. At appraisal, the most recent CAS approved in April 2000 proposed Bank support for the Government in three major directions: (a) consolidating long-term development, mainly through human resource development, natural resource management, transport, rural development and municipal development; (b) supporting economic reform to enhance competitiveness and increase employment; and (c) promoting new initiatives that strengthen local institutions, launch new development niches, and mobilize external finance.

7. At appraisal it was already noted that pressure on the labor market would intensify, both as a result of steady demographic growth and as a consequence of stiffer competition faced by Tunisian enterprises due to international trade. Likewise, the education-related challenges were identified, mainly the need to meet the requirements of a diversified student population in secondary education. This, as already discussed, was a result of higher completion rates in primary or LBE. Therefore the emphasis on improving quality of education was at the core of the Government’s Education Strategy 2002-2007.

8. The Government identified the following four main policy goals for the education sector around which the planned education reform and the EQIP II were to be aligned: (a) extending improvements aimed at better learning outcomes to the most vulnerable children, so as to achieve full LBE completion by 2015; (b) responding to the increasing diversity of the secondary education population by widening the range of education opportunities; (c) enabling the secondary school system to be attuned to, and then adapt to, the needs of the Tunisian economy; and (d) taking advantage of the “lull” in the size of the LBE student population by focusing resources in cost-effective ways on quality improvements. These challenges have led the Government to place quality improvement at the heart of its education strategy for 2002-2007.

9. World Bank intervention in the area of quality and inclusion was both timely and critical, as both issues were and still are at the forefront of the Government’s education

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agenda. In the areas of introduction of new technologies, evaluation and research, the Bank could share years of global experience with the introduction of alternative models, as well as access to first-rate expertise in these areas. In other areas, such as secondary education and career information and guidance, the Bank was then undertaking institution-wide work that could greatly benefit the project. Finally, the Bank’s long-term support through a two-phase, flexible APL was particularly valuable given the fiscal constraints, and particularly in light of the major investments needed as a result of rapid enrollment growth in upper basic and secondary education.

1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved)

Development objectives

10. The overall purpose of the Project was to support the Government’s objectives to achieve near-universal completion of basic education, to provide a greater number of students with opportunities for post-basic education; and to modernize the sector in ways that would improve the quality of outputs and the efficiency with which they are produced.

11. The PAD indicates that the original project objective was to promote excellence in teaching and learning throughout the school sector, while continuing the push for the inclusion of all children at all levels of the basic education system.

12. Per the Loan Agreement, the objectives of the Project were to assist the Borrower in reinforcing the process of reforming its education sector through: (a) promoting excellence in teaching and learning in an improved pedagogical and physical environment; and (b) ensuring that all children are provided with equitable and adequate opportunities to access quality education at all levels of the Borrower’s school system. 13. For the purpose of this ICR, since the wording of the PDO is different in the PAD and the Loan Agreement, we will be evaluating the one in the PAD.

Key performance indicators

14. Progress against the above-mentioned objectives was to be measured by enrollment and completion rates, disaggregated by gender, and then by the share of non-salary expenditures in the education budget and the ratio of students per computer. The indicators were defined according to principles of relevance, measurability, feasibility and simplicity. Even more importantly, the choice of indicators and targets was suggested by the Government of Tunisia (GOT) in line with their own education reform goals and targets. The enrollment rates were categorized by gender and age groups (6-11 year-olds; 6-16 year-olds; 12-18 year-olds); while the primary education completion rate was classified by gender only. Intermediate targets for each of the outcome indicators were sequenced as follows:

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Base Value 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2003-04 Target Achievement Target Achievement Target Achievement Achievement Achievement Achievement Enrollment rate of 6-11 year-olds

Girls 97,0% 97,2% 97,0% 97,3% 97,1% 97,5% 97,3% 97,4% 98,0% 98,5%

Boys 96,8% 97,0% 96,9% 97,1% 97,0% 97,2% 97,3% 97,3% 97,4% 97,9%

All 97,0% 97,0% 97,1% 97,3% 97,4% 97,7% 98,2%

Enrollment rate of 6-16 year-olds

Girls 91,0% 91,2% 91,0% 91,4% 90,8% 91,6% 91,1% 92,2% 92,4% 92,8%

Boys 90,0% 90,2% 90,0% 90,4% 89,8% 90,6% 90,0% 91,1% 90,4% 91,3%

All 90,5% 90,5% 90,3% 90,5% 91,6% 91,4% 92,1%

Enrollment rate of 12-18 year-olds

Girls 77,5% 78,0% 78,0% 78,2% 77,7% 78,4% 78,7% 79,9% 78,9% 81,4%

Boys 73,5% 74,0% 73,0% 74,2% 72,6% 74,4% 73,5% 74,4% 72,1% 74,7%

All 75,4% 75,5% 75,1% 76,1% 77,1% 75,4% 78,0%

15. Thus, in terms of enrolment performance indicators, considerable progress has been made throughout project implementation, showing unequivocally that the reforms have produced the desired results in that regard. This is particularly the case concerning the expansion of access to the second cycle of basic education and to secondary education as a whole (net enrollment rate reaching over 92% for the former and 78% for the latter). For all three indicators, targets set at the start of the project were exceeded by the time of the revised project closing date.

Base Value 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2002-03 Target Achievement Target Achievement Target Achievement Target Achievement Achievement Achievement Achievement Completion rate of Basic Education

Girls 60,1% 61,3% 62,5% 63,7% 62,8% 66,2% 64,0% 69,5% 65,1% 66,4% 68,6% 69,0%

Boys 42,5% 42,9% 41,5% 43,9% 41,9% 45,5% 42,6% 48,0% 44,3% 46,3% 49,1% 51,0%

All 51,4% 51,9% 53,1% 54,6% 55,8% 58,6% 60,7%

Completion Rates of Secondary

Girls 45,5% 64,7% 66,7% 69,7% 62,2% 69,2% 56,8% 67,9% 56,1% 61,1% 61,6% 60,6%

Boys 42,9% 51,7% 53,0% 56,6% 48,2% 54,3% 42,6% 54,3% 41,9% 46,0% 46,5% 45,3%

All 61,0% 54,8% 50,3% 49,6% 54,3% 54,7% 53,7%

Share of non-salary expenditures

First stage of BE 2,5% 2,5% 2,7% 2,5% 2,6% 2,5% 2,7% 2,5% 2,7% 3,3% 3,4% 3,2%

2nd cycle of BE and Secondar 6,4% 6,4% 5,5% 6,4% 5,3% 6,4% 5,2% 6,4% 4,6% 4,7% 4,5% 4,5% Ratio of students per computer

First stage of BE 129 106 120 83 74 60 46 36 34 29 26 23

Second stage of BE 99 91 109 84 86 76 50 69 49 37 28 23

Secondary 45 38 65 30 60 23 35 15 33 26 20 19

16. Indicators concerning completion rates in both basic and secondary education attest to the improvement of internal efficiency of the education system throughout the

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years of project implementation. However, while the targets set for basic education were comfortably met by project closing, this is clearly not the case with regard to secondary education. Furthermore, the evolution of this indicator appears at first sight extremely volatile, which immediately casts doubt as to whether it can really reflect the impact of project interventions. It is in fact not easy to account for a 20-point increase in the secondary education completion rate only one year after project implementation. And the same goes for the decrease of roughly 10 points over the next two years. Thus, the extreme volatility of this indicator during the first three years of project implementation could only be explained either by the low quality of data collection or by the impact of a variable that was not considered when choosing the indicator. It appears that the latter is the case; i.e., that the changes introduced in the Baccalauréat examination during those years are the key to accounting for the volatility in secondary completion rates during those years, a variable that is clearly unrelated to project investments and interventions. By project closing, though, that volatility had disappeared and, while there had also been progress in secondary completion rates for both boys and girls, the original targets were not met. Yet, progress accomplished in that indicator – both overall and specifically for girls – is very impressive, and proportionally much greater than that achieved in primary education.

17. The overall improvement in internal efficiency also calls for a nuanced analysis with regard to gender: Girls show completion rates exceeding those of boys by 18 percentage points in basic education and over 15 percentage points in secondary education. Even more importantly and more worrying, despite the overall progress in completion rates between 2003 and 2010, the gap between boys and girls has stayed exactly the same in basic education and has increased by two points in secondary education. Thus, the dropout phenomenon in general and that of boys in particular remains a concern in the second cycle of basic education and in secondary education (see section 3.3 on efficiency). This is certainly a challenge in every country in the world where secondary education has been rapidly expanded, which somehow makes Tunisia’s progress in secondary completion rates more impressive.

18. Indicators also show that the share of non-salary expenditures in the operating budgets allocated to the first cycle of basic education has improved from 2.7 percent to 3.2 percent while this ratio has decreased in the second cycle of basic education and secondary education, partly due to the increase in the teacher/student ratio, which inevitably resulted in an increase of the salary share in the budget, and partly due to the fact that the GOT records as “investment” expenditure on ICT equipment and some learning material which should be clearly considered as non-salary operational expenditures. The other indicator that was chosen as a proxy for quality of education was the ratio of students per computer, where targets were by far reached throughout project implementation.

19. In addition to the indicators discussed so far, the PAD also referred to the “National School Quality Monitoring for Grade 4,” which was about to be piloted in 2004 and which was obviously the only chance to have an external systematic and

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rigorous measure of quality of education. The PAD stated that data from that national assessment would be considered as part of the overall monitoring and evaluation system, although no target value would be set, for obvious reasons. The grade 4 national assessment was eventually implemented but the data was never made available by the GOT, which prevented its use for project monitoring and evaluation purposes.

20. While there is no doubt about the relevance of the proposed indicators, it can be claimed that the considerable gap between projected outputs of the project and the expected outcomes (with its indicators) is a major shortcoming of this project’s results framework. All the selected indicators are broad system-level ones, which makes it difficult to claim any kind of attribution of project interventions to the accomplishment – or lack thereof– of the target values. The attribution issue was definitely not as important back in 2003 as it is now in the Bank, but it is still surprising that the project’s Monitoring and Evaluation system did not contemplate the need to evaluate, for instance, the levels of use of the equipment procured under Components A or D, the special needs program in disadvantaged areas, the kindergarten program, or the priority school program (PEPE), especially given the fact that many of these programs turned out to be very successful. The Bank team, aware of this shortcoming early during project implementation, proposed on many occasions to add to the original framework a number of results indicators that would better fit specific interventions supported by the project. These included both output and outcome indicators, related to the levels of use and implementation progress of the different programs financed by the project, including the competency approach curriculum reform (APC), the introduction of ICTs or the priority school program. While all this was reflected in detail in the Mid-term Review aide-memoire, the Borrower did not accept the proposed results indicators and the results framework reamined unchanged.

1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification

21. The project development objective was not revised. 1.4 Main Beneficiaries

22. The main beneficiaries of this project were:

1. Students aged 6 to 18 (basic education and secondary education) and their families; 2. By focusing on PEPE schools (schools in disadvantaged areas), a major beneficiary

group was school-aged children from poor families. 3. Another target group was children with mild disabilities;

4. Teachers, school managers, and district education officers were also a beneficiary group.

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23. EQIP II was comprised of four components (10 subcomponents). The first two components directly tackled the topic of quality in the classroom, while the third one aimed at updating the school sector management, and the fourth one at improving the performance of the core systems. The fourth component played an important role in the implementation of the three first components.

Component A: Inclusive Basic Education

Sub-component A1 (Teaching for Improved Learning Outcomes) US$8.70 Million

24. The objective of this sub-component was to generalize the skills-based approach methodologies; modernize the teaching of languages and science; and introduce an optional studies program in basic education. The activities were: (a) provide technical support to teams responsible for developing basic education curricula using Approche par

Competences (APC); (b) provide technical support to teams responsible for developing

basic education textbooks and teaching materials using APC methodologies; (c) develop a learning assessment system for Upper Basic Education (UBE) that fits with APC methodologies; (d) provide primary schools with copy machines that enable them to implement child-centered teaching and formative assessment; (e) train UBE teachers in APC methodologies; (f) provide primary schools with equipment for teaching science; (g) provide primary schools and colleges with audio-visual equipment; (h) provide regional in-service teacher training centers (CREFOC) with language laboratories for training and upgrading English teachers in primary schools; and (i) strengthen training for LBE and UBE teachers in languages and science.

Sub-component A2 (Equal Schooling Opportunities) US$3.80 Million

25. The objective of the sub-component was to integrate and mainstream vulnerable children into regular schools, and to enhance the quality of teaching in schools performing below regional and national averages, in parallel with the creation of new kindergarten programs. The activities to be carried out under this sub-component were: (a) implement a program to progressively integrate disabled children into mainstream schools; (b) extend and strengthen the Priority Schools Program (PEPE) in primary schools; (c) establish a pilot program to transfer funds to schools in PEPE to enable them to implement their School Improvement Scheme; (d) extend and strengthen the PEPE in colleges; (e) extend and strengthen PEPE in lycées; and (f) establish new kindergarten classes and disadvantaged areas.

Component B: Diversity in Secondary Education

Sub-component B1 (Diversifying the Secondary Education Curriculum) US$5.60 Million

26. The objective of this sub-component was to ensure that the secondary education programs covered the increasingly diverse student population. The activities concerned were: (a) develop curricula for technology programs; (b) provide technical support to

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teams responsible for developing textbooks for technology programs; (c) implement new subject programs; (d) strengthen the teaching capacity of lycées by providing documentation and training equipment; and (e) evaluate the use of science and technology teaching materials in UBE and secondary education.

Sub-component B2 (Career Information and Guidance) US$0.06 Million

27. The objective of this sub-component was to implement a system that would help students have access to information regarding career paths and education programs. The activities involved were: (a) establish an Information and Guidance Center to provide information and guidance on school programs, tertiary education programs and careers; and (b) develop schools’ capacity–human and physical–to provide career information and guidance.

Component C: School Sector Management

Sub-component C1 (School-Level Management) US$0.08 Million

28. The objective of this sub-component was to extend a decentralized and modern management system for schools and institutions to be able to do their tasks in accordance with the principles of subsidiarity and efficiency. The activities related to the sub-component were: (a) set up School Improvement Schemes in schools and Regional Improvement Schemes in regional MET offices; and (b) establish a regional system of monitoring, evaluation and support for the School Improvement Scheme.

Sub-component C2 (System-Level Management) US$0.50 Million

29. The objective of this sub-component was to implement an integrated information system for management and oversight of the school sector. It was composed of six activities, as follows: (a) install the EduServ software in schools, to support management of teaching and administrative tasks; (b) install the MET’s information system in regional offices and extend the range of functionalities in use in central and regional units; (c) install a security system in the MET’s EduNet (on-line administrative network) and extend its functionalities; (d) train EduServ users, as well as other administrators and technicians using ICT; (e) develop a system for monitoring and evaluating ICT training programs; and (f) strengthen project monitoring by improving project monitoring software, developing a training program for project managers, and providing vehicles for monitoring at the regional level.

Component D: Strengthening Core Systems

Sub-component D1 (Training and Communication) US$1.00 Million

30. The objective of the sub-component was to launch a strategy to restructure the teacher training system in order to better fit the Tenth Development Plan training

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requests; and create a communication strategy to inform both the population and teachers about the education reforms. It consisted of four activities: (a) modernize and decentralize teacher training through a study on the development of an in-service training system (including monitoring and evaluation of training) and implementation of the results of the study; (b) establish a system of pre-service professional training for supervisory staff; (c) establish a system of in-service professional training for supervisory staff; and (d) develop a communications strategy covering the main themes of school reform (including the PEPE and the integration of disabled children into mainstream schooling), aimed at teachers and the general public.

Sub-component D2 (Information and Communication Technologies) US$16.00 Million

31. The objective of this sub-component was to integrate information and communication technologies (ICT) in the learning experience. The activities concerned were: (a) integrate ICT into the learning process by: (i) strengthening the importance given to ICT in curricula at all levels of the school system; (ii) developing ICT guides for teachers and school management; (iii) integrating ICT into subject-based and interdisciplinary studies; and (iv) introducing an ICT certification system for students; (b) ensure that teachers master the use of ICT in their teaching by: (i) developing ICT training programs; (ii) strengthening the training of ICT teachers trainers; (iii) developing ICT distance training tools; and (iv) introducing an ICT certification system for teachers; (c) strengthen the information system infrastructure and network by: (i) extending the EduNet network at the regional level; (ii) developing educational and cultural sites on EduNet; (iii) installing and networking computers in schools; and (iv) upgrading and decentralizing the services of INBMI to better respond to schools’ requirements; (d) establish a distance learning and training system by: (i) strengthening distance learning and training platforms; (ii) diversifying the range of distance learning and tutoring services; and (iii) monitoring and evaluating the activities offered by “virtual schools”; and (e) increasing the range of appropriate teaching and learning material available in digital form by: (i) producing multimedia digital teaching and learning material; and (ii) purchasing multimedia digital teaching and learning material.

Sub-component D3 (Assessment and Evaluation) US$0.60 Million

32. The objective of this sub-component was to ensure regular assessment of learning achievement as well as to strengthen education research and innovation. Six activities were involved, as follows: (a) organize and manage regular national assessments, by implementing the assessment test item bank (developed in part under EQIP I) and establishing a system for analyzing and interpreting the results; (b) organize and manage regular international assessments, namely PIA and TIMSS: (c) set up the Observatory of Teaching and Learning Innovation CNIPRE, within the Education Research Institute; (d) strengthen and modernize the CNIPRE (e) develop publications aimed at the teaching community (especially the “Bulletin pédagogique” and the “Bulletin de liaison” “Kifayat”; and (f) promote education research and innovation, through participation in international meetings.

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Sub-component D4 (Infrastructure) US$94.00 Million

33. The objective of this sub-component was to anticipate the increase in the number of students in primary and secondary education and therefore enhance the studying conditions in LBE. Four activities were involved: (a) improve learning conditions in LBE by building, renovating and equipping multipurpose classrooms in primary schools; (b) increase infrastructure capacity in UBE by building and equipping new colleges, and by building and equipping science and technology classrooms in existing colleges; (c) increase infrastructure capacity in secondary education by building and equipping new lycées, and by building and equipping science and technology classrooms in existing lycées; and (d) implement a program of maintenance and rehabilitation for primary schools, colleges and lycées.

1.6 Revised Components

34. The components were not revised.

1.7 Other significant changes

35. By Mid-term Review, it became clear that additional resources in Tunisian Dinars would be available due to appreciation in the exchange rate of the Euro against the local currency. It was thus agreed to use the extra resources to increase the number of buildings in primary and secondary schools to be rehabilitated.

36. A first extension and fund reallocation of the project was approved by the Bank in June 2008. This first extension was justified first by the savings generated by variations in the exchange rate and second by delays in project implementation. Procurement was experiencing severe delays at that particular point, due to the absence of a project coordinator as well as the rather cumbersome procurement practices in Tunisia. The Government requested this first reallocation of funds to support its priority to scale up the ICT program, which basically entailed increasing the number of schools to be equipped with computers. Along the same lines, in order to fully implement the language curriculum in schools, the equipment of language labs was deemed necessary. . In addition, the project also financed the development of an education portal, EDuNet, with teaching and learning resources available for teachers and students. Therefore, an extension was granted for 12 months, until June 30, 2009. Since the reallocation of funds involved more than five percent of project costs, a Project Paper was prepared and approved by the Bank’s Regional Vice-President (RVP) as a third order restructuring. 37. After reviewing the project’s implementation progress during the supervision mission in May 2009, delays in the implementation of several activities were again identified. A review of the procurement plan for goods, works and services showed that some equipment purchases could not be completed prior to the revised closing date. In particular, large language laboratories and other IT equipment contracts (amounting to

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about US$25 million) were in the process of being delivered or being signed and it was evident that a second extension and reallocation of funds to support the IT school infrastructure and small rehabilitation works for schools was required. Thus, this second extension for another 12 months (until June, 30, 2010) and reallocation allowed the full execution of a number of contracts that were crucial to the accomplishment of the project development objective. Also in this case, a Project Paper was prepared by the team and approved by the Bank’s RVP.

2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry

38. Preparation and design: The project was designed on the basis of the lessons learned from the implementation of EQIP I. However, the ICR for EQIP I was prepared only after EQIP II had been appraised and approved by the Board. At the time of preparation of EQIP II, it was estimated that the first phase was well managed and coordinated on the Borrower’s side, so the same organizational structure and implementation arrangements were kept for the second phase of the APL. Although this was the case, a more analytical and objective assessment of weaknesses observed during the implementationof EQIP I could have benefitted the project design of EQIP II.

39. Bank intervention in the area of quality and inclusion was critical, as both issues were at the forefront of the challenges faced by the education system, and had Government ownership. The Bank’s long-term support through a two-phase, flexible APL was particularly valuable given the fiscal constraints, and particularly in light of the major investments needed as a result of rapid increases in enrollment in upper secondary education.

40. Although the approved minutes of the Concept Review meeting state that since the Government was well prepared for the implementation of this type of project, it could be argued that the complexity of the four components of the project called for a wide range of actors and institutions within the education system to work in a collaborative and coordinated way, which was not, and is still not, a practice observed in the Tunisian context.

41. As already discussed above, the results framework and the overall monitoring and evaluation system were probably the weakest aspect of the project design. The indicators chosen were too broad and, while relevant for monitoring progress of the general education reform, were simply not sufficient to properly follow up on the implementation of project interventions. This was an even more acute problem with regard to quality of education indicators, which was to be measured and monitored only in terms of the share of non-salary expenditures in the budget and the student/computer ratio. Broadly speaking, the project design did not sufficiently emphasize the need to use of results monitoring to provide meaningful feedback to decision makers in the Government. This was compounded, all through project implementation, with the reluctance on the part of

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the Borrower to collect and/or share information and data. To be fair, though, it should be acknowledged that Tunisia became one of the very first countries in the region that decided to participate in both TIMSS and PISA, and this happened during the implementation of EQIP II. Moreover, the GOT also supported specific evaluation studies of some of the key project interventions, although it never agreed to add new indicators to the results framework or to share the results of the 4th grade test pilots. 42. Concerning quality at entry, the high level of ownership and the alignment with the overall education reform program of the Borrower have already been stressed. Probably the best indication that all this was the case lies in the fact that the project became effective only two months after Board approval, a short time lapse that is certainly not very common in the region. Further, implementation was off to a very good start during the first couple of years, with very solid project management and quick disbursement.

43. Assessment of risks: Five risks were identified at preparation stage, four of which were assessed as moderate (M) and one as negligible (N).

Risk Risk Rating

Mitigation Measure ICR Assessment of the Risks

From Outputs to Objectives Applying a skills-based

teaching methodology might have triggered resistance from upper basic education teachers

M Curriculum development and teacher training were prepared accordingly

Although the mitigation measures were correctly identified and, to a certain extent, also implemented, the time needed to introduce changes in teacher’s practice was underestimated. Diversifying the secondary

school curricula to 9 sections might have oriented pupils to choose a track according to their gender and socio-economic status

M The Government’s reforms set up opportunities to change tracks, and thanks to internal monitoring of pupils, they can be better guided to appropriate subject tracks. Further, number of tracks was reduced to 6.

Reforms introduced by GOT certainly increased flexibility and mitigated the effects of early student selection. Yet, more should be done in this regard.

Teachers might refuse to involve communities into school management

M The Government created two structures within schools – a professional-only Academic Council and a mixed School Council – to reassure teachers that they remain in control of academic issues

The reluctance of the Teachers Union was underestimated, and this clearly delayed the implementation of the School Councils. Further, the role and the entrenched position of Teacher Unions was also neglected with regard to the school improvement plans (projet

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d’établissment), a critical element of the quality of education-oriented reforms.

Communities, especially in disadvantaged areas, might not have the necessary skills to participate in the management of a school

M EQIP II encompassed a grant for pilot schools participating in the Priority Schools Program which could fill in the need for training

This program was very well implemented and yielded more results than anticipated.

Despite what MET had shown through the implementation of EQIP I, it was feared that the project might be too complex for the MET to implement

N MEF’s capacity to

implement this project was put under test, and although the

performance related to inputs was satisfactory, MEF showed weakness in articulating in a coherent manner all aspects of the reform, its links to the project, and the use of M&E data for decision making. 2.2 Implementation

44. The first two years of implementation went well, and important progress was observed in the implementation of activities such as school construction, teacher training, support to PEPE schools and integration of children with disabilities. However, there were activities in which slow implementation was observed, such as the curriculum reform in secondary schools, activities related to school and system-level management, introduction of ICT, and assessment and evaluation. By the Mid-term Review, the conclusion was that those activities in which the Ministry had good experience in implementation were on schedule. However, activities that required consulting services, or introduction of new know-how, such as school and system management, assessment and evaluation, or the use of ICT, were all experiencing delays.

45. One critical element that contributed to those implementation delays was that, for a period of 18 months, the project did not have a Project Coordinator. As a result, day-to-day project management tasks and responsibilities such as searching for appropriate consultants, drafting TORs or preparing bidding documents were significantly delayed. Moreover, poor coordination between the Director of Buildings and Equipment (DBE), who was the interim Project Coordinator during that period and technical departments became acute. Given the amount of activities envisaged, and the need to articulate them within each component, the project called for close coordination during implementation. Further, the interdependence of the different components and the importance of articulation to achieve results in terms of better student learning outcomes demanded strong leadership and coordination of all the different actors and responsible units.

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46. Thus, although progress was observed in school construction, teacher training and, after the Mid-term Review, procurement of equipment and labs for schools, CREFOC and Regional Offices (DRE), the lack of coordination did not allow for a comprehensive vision of the project, i.e., how specific interventions were to contribute to improving quality and equity in education. Once a Project Coordinator was appointed in May 2008 (one month before the original project closing date), positive signs were immediately felt, although the delays observed in procurement, in particular related to consulting services, continued to hinder the achievement of project outcomes. In any case, implementation progress improved substantially after the first extension of the closing date was granted, also due to the assignment of several staff to the various types of procurement (construction, rehabilitation, equipment and selection of consultants), an issue that had been raised repeatedly by the Bank in several supervision missions. Project management in general, processing and monitoring of contract execution, and reporting all improved substantially. As a result, while disbursement was just slightly over 50 percent by 2008, the project finally closed in June 2010, with 93 percent of the funds disbursed.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 47. As suggested above, key performance indicators were relevant but too broad. At the time of the Mid-term Review, the Bank team stressed that more output indicators were needed in order to better establish a link between project interventions and monitorable indicators. In addition, given the importance of the ambitious education reform that was being implemented and the many elements that it envisaged, it was proposed to develop a more comprehensive framework to monitor improvements in quality, equity and progress in reform implementation. The Mid-term Review aide-mémoire suggested indicators such as the percentage of teachers following the APC, or the number of schools with an active School Council. Likewise, it noted that the national grade 4 evaluations should be used as a way to monitor progress in learning outcomes (even if the original agreement that it was not necessary to define any particular target value continued to make sense). However, the MET was not keen on introducing these changes, as it is acknowledged in the aide-mémoire of the following supervision mission. Thus, the necessary revamping of the results framework for the project was not pursued any further.

48. Although the PDO was clearly related to equity and inclusion, and the project had important activities to promote them, such as the PEPE and the integration of children with disabilities, there were no specific indicators in the results framework to follow up on them. Thus, also as a result of the Mid-term Review, indicators to monitor integration of handicapped students as well as progress made in PEPE schools were agreed upon, although they were not formally incorporated in the M&E system, again due to the reluctance of the GOT, which was adamant about keeping the original results framework, because of its consistency and alignment with its own education reform strategy. The lack of specific quality and equity indicators also made it difficult to focus on learning outcomes, clearly the most appropriate way to monitor quality improvements.

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Unfortunately, this also hindered the possibility of providing evidence and showcasing major project achievements in the area of inclusiveness and equity.

49. Despite all of the above, monitoring and evaluation was upgraded to satisfactory by the end of 2008 on the basis of the improvements in the monitoring and reporting of progress on implementation activities. This was possible thanks to the appointment of the project coordination director in May 2008, who submitted timely progress reports to the Bank, thus enabling the Bank team to better assess the progress on the monitoring indicators and provide quantitative information related to specific project outputs. It was noted then that data on repetition and dropout rates for schools in underserved areas (PEPE schools) were reported for the first time since the project became effective, thus making it possible to monitor equity indicators that, as already pointed out, were not part of the original results framework designed for the project.

50. MET used project indicators to monitor progress of the overall education reform. For instance, the observation of continuous and invariably high repetition and drop-out rates triggered the decision to commission a study to analyze their underlying causes. Likewise, a study to measure improvement of learning outcomes in PEPE schools funded by UNICEF demonstrated the benefits of the program, and led the MET to consider generalizing the idea of allowing schools to manage additional funds on the basis of a School Improvement Fund. These two studies made the M&E system for the project more relevant, allowing for a better and more ambitious use of data for policy making. 51. Although it can be said that MET produces and uses data for policy making, and that information on project key performance indicators was always available, given how broad and system-wide these were, a tight monitoring of impact of all project interventions was not really carried out during the life of the project. Finally, although there was timely reporting on system indicators such as enrolment, completion rates and the share of the non-salary expenditures, data from the grade 4 national examinations was never made available, which entailed the absence of a national indicator on quality of education which could go beyond weak proxies such as the computer/student ratio or the share of non-salary expenditures. In general, it could be said that there is still room for improvement regarding transparency and active dissemination of data, and on translating analytical information into policy action.

2.4 Safeguard and Fiduciary Compliance

52. Fiduciary: Financial management generally was globally acceptable. EQIP II had adequate staff capacity, accounting, internal control system and satisfactory annual audit program. No particular fiduciary issue was noted; EQIP II, as well as other projects, were implemented with the same management structure and supervised. The Project Management Unit (PMU) prepared the financial statements (commitments and disbursement by components, sub-components and category and also by financing sources).

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53. Audits were conducted annually by Contrôle Général des Finances, delivered to the Bank, and revealed no particular significant accounting issues.

54. Procurement was rated moderately satisfactory considering that there were no serious fiduciary issues but rather issues of non full compliance with agreed procedures, particularly with regard to the selection of consultants, and delays in procurement processing. During the period in which there was no Project Coordinator, the project was rated as moderately unsatisfactory. However, after a new Project Coordinator was appointed, it was rated satisfactory.

55. Environment protection: The only safeguard policy triggered by the project was the environmental assessment (OP/BP/GP 4.01). The Bank’s safeguards team concluded that EQIP I was not an at-risk project, and therefore EQIP II was supervised on the same basis. In order to comply with OP 4.01, an environmental assessment review was carried out for EQIP I, as a result of which the Bank only financed schools cleared under the agreed procedure. The Government carefully selected the places where schools needed to be built or renovated. In addition, every new construction site had to be cleared on the basis of the environmental assessment in order to get the authorization to start the works. 56. Land acquisition: No issues related to other safeguards, in particular involuntary resettlement and land acquisition were noted. The results of applying the land acquisition assessment procedure in EQIP I showed that private owners in fact benefited from donating land for school construction. For each site acquired via donation, a land acquisition assessment was conducted prior to construction to ensure that it would cause no negative impact on persons or groups, nor create issues related to OP/BP 4.12.

2.5 Post-completion Operation/Next Phase

57. During the last year of implementation, the Bank team and the Government engaged in a dialogue to analyze lessons learned from the implementation of the reform with the aim of identifying ways forward for a follow-up project. The MET identified four critical areas for this analysis:

 the use of ICT to improve school management and teaching and learning;

 integration of children with disabilities;

 the experience of PEPE schools and the use of School Improvement Plans to improve school performance; and

 decentralization, Regional Education Plans, and School Management Committees. 58. For all these topics, MET officials prepared analytical reports that were discussed with the relevant organizational units and shared at a half-day workshop that took place during the last supervision mission. As a result, a new education sector operation has been identified and agreed to in the context of the recently approved Country Partnership Strategy. Lessons learned from EQIP II will be integrated into this new operation. The timing and content of the new project are being discussed between the MET and the Bank.

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3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation

59. The Development Objectives were perfectly in line with the MDGs, and consistent with the country’s social and economic development goals.

60. The GOT education reform goals were: (a) to extend improvements of learning outcomes to the most vulnerable children, so as to achieve universal LBE completion by 2015; (b) to respond to the increasing diversity of the secondary education population by widening the range of education opportunities; (c) to enable the secondary school system to be attuned to, and then adapt to, the needs of the Tunisian economy; and (d) to take advantage of the ‘lull’ in the size of the LBE student population by focusing resources in cost-effective ways on quality improvements. These challenges led the Government to place quality improvement at the heart of its education strategy for 2002-2007. The whole APL was prepared as a key instrument for the implementation of that education strategy. Therefore, the relevance of the objectives and project design is clearly very solid. Moreover, the fact that the policy areas selected by the Government for a follow-up education operation fit squarely with those supported by EQIP I and II could also be read as strong evidence that the interventions implemented by EQIP II were highly relevant. 3.2 Achievement of Project Development Objectives

61. The Development Objectives of this project were achieved, and all through project implementation, progress towards their accomplishment was rated as satisfactory. Investments in infrastructure, curriculum reform, teaching and learning materials and ICTs clearly contributed to modernizing schools in Tunisia and therefore to “promoting excellence in teaching and learning”. Even if the results of the 4th grade national test were not made available by the GOT, Tunisia´s results in TIMSS 2007 and PISA 2006 and 2009 show sustained improvement. In terms of ensuring equal access to education opportunities, the PDO was fully accomplished – which includes lower secondary – as far as basic education was concerned–which includes lower secondary–and was only partially achieved when it comes to the target set for upper secondary education. The most importance nuance that needs to be raised to this general conclusion is that the gap between boys and girls has stayed unchanged despite evident progress in the overall indicator. On the other hand, the success of the PEPE schools and the programs related to expanding kindergartens and integrating students with special needs, also attests to important progress in ensuring equal access to education.

62. The success of the PEPE schools led MET to emphasize the role of the community and the participation of parents in the life of schools. It was also a critical way to demonstrate the importance of allowing schools to manage supplemental resources based on the preparation of school development plans. This led CNIPRE to

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prepare manuals and guidelines for primary and lower and upper secondary schools to help them reestablish School Councils, which, coupled with the assistance provided to School Districts in the preparation of Regional Education Plans, were important steps towards the decentralization of the system. In this regard, however, both the Government and the Bank probably underestimated the resistance and reluctance of teacher unions, principals, and regional administrators towards school-based improvement plans, curriculum development and management.

Project Development Objective Outcome Indicators

63. The overall primary education completion rate increased from 51 percent in 2004 to 60 percent in 2010. By gender, the completion rate of girls increased from 62 to 69 percent, reaching the target set at appraisal. For boys, completion rates went from 41 to 51 percent, slightly ahead of the target set at appraisal of 48 percent. However, completion rates in secondary education went through a quite volatile evolution which has already been discussed above. Changes in the Baccalauréat examination seem to account for the steep changes in that indicator during the first two or three years of project implementation. Besides, the persistence of high repetition and drop-out rates among boys would also explain that the target values for secondary school completion were not met, despite evident progress made both in terms of absolute numbers and percentage of completers.

64. Regarding quality and sector management, a key performance indicator was to increase the share of MET operational budget allocated to non-salary expenditures disaggregated by level. Between 2004 and 2010, this allocation increased for primary education from 2.7 to 3.2 percent, thus meeting the indicator target. For secondary education it went from 6.4 to 4.5 percent, partly due to the dramatic change in the student/teacher ratio, which went from 20.4 to 13.4 resulting in an increase in the salary mass and therefore its relative share in the budget, and partly due to the prevailing practice of categorizing as “investment” the expenditures on ICT equipment and some teaching and learning materials.

65. The project made important contributions regarding introducing ICT to improve the management of the system, as well as to modernize schools and to allow teachers and students to use new technology in their teaching and learning activities. A key performance indicator used to measure this was the ratio of student/computers by level. This went from 129 students per computer to 23 in primary education, reaching above the target of 36; from 99 to 23 in upper primary reaching above the target of 69; and from 45 to 19 in secondary, slightly below the target of 15.

66. It is also worth mentioning that the software EduSERV was launched and is being used by all schools and the EduNet intranet portal is used by schools and stakeholders (students, parents and Ministry) to monitor learning outcomes and as the data collection mechanism for the EMIS.

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3.3 Efficiency

67. During the period 2004-2010, a decline in enrollment in primary and secondary education has been recorded subsequent to a demographic trend that began with the decline in primary education total enrolments since the mid-1990s and then continued to secondary school enrolment from 2005 onwards. This decrease was 17 percent in primary and 5 percent in secondary, while enrollment in higher education increased by about 20 percent. During this same period, total public funding for education and its distribution between sub-sectors did not change: the share of the education sector in the state budget increased from 21 to 22 percent, while the distribution among sub-sectors remained unchanged (70 percent is allocated to primary and secondary education, 25 percent for higher education and 5 percent for vocational training). The budget of MET allocates 41 percent for primary education and 59 percent for secondary education; these proportions were 46 percent and 54 percent in 2004, respectively. Unit costs at primary and secondary education increased in real terms by 48 percent and 57 percent, respectively, between 2004 and 2010, reflecting the policy goal of improving quality of education during this "demographic window" period. Unit costs in higher education rose by only 5 percent. In terms of proportion of GDP per capita, unit costs for primary education changed from 15.6 percent in 2004 to 18.8 percent in 2010; in secondary education from 20.8 to 26.5 percent; and in higher education from 28.3 to 19.1 percent.

68. The internal efficiency of primary education has improved: the dropout rate was significantly reduced in 2009 – down to 1.3 percent from 1.7 percent in 2004 and 2.9 percent in 2000. Similarly, the repetition rate went down to 6.5 percent in 2009, from 8.3 percent in 2004 and 13.8 percent in 2000. However, there appears to be a consistent trend of higher repetition and dropout rates in tertiary education: 17.2 percent and 11.4 percent, respectively, in 2008 compared to 23.4 percent and 9.4 percent in 1998. Concerning secondary education, internal efficiency in the last decade has stagnated: the repetition rate exceeds 15 percent and dropout rate is about 11 percent. Low internal efficiency in secondary schools is particularly acute in the 7th grade, where about one student in four repeats. Expressed in absolute numbers, the problem of school dropouts comes across as even more striking: in 2008, 15,966 cases of dropouts were recorded in primary education, 65,631 cases in cases in lower secondary and 58,634 in high schools, a cumulative total of 140,231 cases. This can be explained by the growing heterogeneity of students and the lack of appropriate pedagogical support in dealing with that diversity in the classroom. Further, the absence of a national assessment system replacing the former access exam to lower secondary education and the lack of appropriate supportive measures in the transition from primary to lower secondary education, also account for structurally high repetition and dropout rates in secondary education.

3.4 Justification of Overall Outcome Rating Rating: Satisfactory

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69. There is no doubt as to the relevance of the indicators that were used, although more specific education quality and equity indicators were needed and could have been introduced after the Mid-term Review. The PDOs were nonetheless almost fully accomplished, and the exception regarding the targets set for secondary education completion rates is at least partially related to changes in the secondary graduation examination system, which should obviously not be attributed to the project. Persistent repetition and drop-out rates among boys in secondary education continue to be a critical challenge in Tunisia, as they are in most developing and developed countries, despite all the project investments in curriculum reform, priority schools, technology, teaching materials and improvement of physical infrastructure. Other than this exception, it has been shown that internal efficiency in both primary and secondary education has improved significantly over the period of project implementation.

3.5 Overarching Themes, Other Outcomes and Impacts

(a) Poverty Impacts, Gender Aspects, and Social Development

70. The emphasis on equity proposed in this project clearly yielded results. On the one hand, the PEPE schools targeting poor populations were successful in raising student learning outcomes. The study financed by UNICEF in 2007 compared learning outcomes between PEPE and mainstream schools showing that 16 percent of the lowest performing PEPE schools in 2000 were performing among the top performing schools in the country seven years later; and 47 percent were obtaining results around the national average. An impact evaluation of PEPE was launched recently, in order to evaluate the program after 10 years of implementation, encompassing the entire duration of EQIP I and II. If that study were to confirm that the earlier results in learning outcomes have been sustained between 2007 and 2010, PEPE may end up being regarded as one of the most effective programs of its kind. Raising outcomes of low performing schools is one of the most elusive goals in the education sector of any country, developed or developing, and one that always requires much more than just resources being thrown at it.

71. Furthermore, the successful integration of disabled children into normal schools gave a good example of inclusion and prompted MET officials to analyze how the pedagogical changes that were required to integrate students with disabilities were instrumental to develop innovative pedagogical solutions that could work well for all students, including those more at risk of failure, repetition and drop-out.

72. On gender, girls are outnumbering boys in both primary and secondary education. The difference in enrollment in primary is small, just 1-2 percent, but in secondary it is quite high, with 81 percent of girls enrolled, compared to 74 percent of boys. When it comes to learning outcomes, girls are clearly outperforming boys at all levels, a phenomenon that has become global and that is also turning to be the norm in the MENA region. As for completion rates, which have been thoroughly discussed above, the gap

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between girls and boys in both primary and secondary education and how it has remained unchanged throughout the whole period of project implementation is indeed alarming.

(b) Institutional Change/Strengthening

73. The Task Team was proactive and innovative when it put in place mechanisms to facilitate decision-making and implementation coordination among several parties involved during the most critical period regarding project management and coordination, i.e., the 18-month lapse where there was no Project Coordinator. After a new Project Coordinator was eventually appointed, project implementation was supported by a strong team in charge of the various aspects of project management and coordination. For new school construction, the MET relied on the support that was provided by the Ministry of Works, which proved to be the best way forward. In the long term, and considering the impact of demographic shift, it is clear that there will be less new school construction at UBE and even less at LBE. Thus, in the near future, the role of the DBE of MET will also shift to focus on the improvement and maintenance of the assets (buildings and equipment) resulting from the investments made in the last decades. A critical element will be how to develop ownership of school buildings by their communities. For this task the DBE will have to be self reliant at central level but also will have to develop capacity at the regional and local levels, which will definitely entail deepening the still relatively timid process of administrative decentralization. The budget allocation should also follow this trend and shift resources to maintenance – which is as of now well below the demand and needs. The allocation of resources should also be supported by a shift in managing the government assets. Maintenance should become a programmatic activity fully integrated in the institutions life. For this to succeed, it is necessary to have staff adequately trained and provided to institutions, routines established, budget and responsibility decentralized. The institutionalization of the School Development Plans and the empowerment of School Councils, probably the least successful undertaking of the reform and therefore of this project, are clearly a tool to achieve these objectives, in addition to being key to a more transparent and accountable school system.

(c) Other Unintended Outcomes and Impacts (positive or negative)

74. Not applicable.

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops (optional for Core ICR, required for ILI, details in annexes)

75. Not applicable.

4. Assessment of Risk to Development Outcome Rating: Modest

76. Risk to development outcome should be considered as modest because of the very strong foundation that has been laid in the context of a system-wide reform ongoing for

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