Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: 46824-JO

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED LOAN

IN THE AMOUNT OF US$60 MILLION

TO THE

THE HASHEMITE KINGDOM OF JORDAN

FOR A

SECOND EDUCATION REFORM FOR THE KNOWLEDGE ECONOMY PROJECT

April 21, 2009

Human Development Sector Middle East and North Africa Region

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

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CURRENCY EQUIVALENTS

(Exchange Rate Effective April 9, 2009)

Currency Unit = Jordanian Dinar (JD)

JD 0.71 = US$1

FISCAL YEAR January 1 – December 31

ABBREVIATIONS AND ACRONYMS

ABU Al-Balqa' Applied University JEI Jordan Education Initiative

BOQ Bill of Quantities JICA Japan International Cooperation AgencyBP Bank Procedure LAP Land Acquisition PlanCAS Country Assistance Strategy M&E Monitoring and EvaluationCBJ Central Bank of Jordan MoE Ministry of EducationCIDA Canadian International Development Agency MoHESR Ministry of Higher Education and Scientific ResearchCPI Corruption Perceived Index MoL Ministry of LabourDA Designated Account MoPWH Ministry of Public Works and HousingDBIP Directorate of Buildings and International Projects MoU Memorandum of UnderstandingDCU Development Coordination Unit NCHRD National Center for Human Resources DevelopmentDSP Directorate for Supplies and Procurement OM Operational ManualEC European Commission OP Operational PolicyECC Economic Consultative Council PDO Program Development ObjectiveECE Early Childhood Education PFM Public Financial ManagementEDSS Education Decision Support System PISA Programme for International Student AssessmentEMIS Education Management Information System PIU Project Implementation UnitEMP Environmental Management Plan PO Finance OfficerEMR Economic Monitoring Report ROPB Results-Oriented Planning and BudgetingERfKE Education Reform for Knowledge Economy SBD Standard Bidding DocumentsESW Economic Sector Work SIL Sector Investment LoanETF European Training Foundation SIS School Information SystemFM Financial Management SOEs Statements of ExpenditureGBD Government Building Directorate STC Special Tender CommitteeGoJ Government of Jordan SWAp Sector-wide ApproachGPSC General Policy and Steering Committee TIMSS Trends in International Mathematics and Science StudyICB International Competitive Bidding TVET Technical and Vocational Education and TrainingICT Information and Communication Technology UNRWA United Nations Relief and Works AgencyILO International Labour Organization VTC Vocational Training CorporationIPO Institutional Projects Unit WA Withdrawal ApplicationISA International Standards on Auditing WAJ Water Authority of Jordan

Vice President: Daniela Gressani Country Director: Hedi Larbi

Sector Director Steen Lau Jorgensen Sector Manager: Mourad Ezzine

Task Team Leader: Peter Buckland

FOR OFFICIAL USE ONLY

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

JORDAN Second Education Reform for the Knowledge Economy

CONTENTS

Page

I. STRATEGIC CONTEXT AND RATIONALE............................................................................... 1 A. Country and sector issues................................................................................................................. 1 B. Rationale for Bank Involvement ...................................................................................................... 4 C. Higher Level Objectives to which the Project Contributes.............................................................. 4

II. PROJECT DESCRIPTION .......................................................................................................... 5 A. Lending Instrument.......................................................................................................................... 5 B. Program Objective and Phases......................................................................................................... 5 C. Project Development Objective and Key Indicators........................................................................ 5 D. Project Components ......................................................................................................................... 6 E. Lessons Learned and Reflected in the Project Design..................................................................... 8 F. Alternatives Considered and Reasons for Rejection........................................................................ 9

III. IMPLEMENTATION ................................................................................................................. 10 A. Partnership Arrangements (if applicable) ...................................................................................... 10 B. Institutional and Implementation Arrangements............................................................................ 10 C. Monitoring and Evaluation of Outcomes/Results .......................................................................... 11 D. Sustainability ................................................................................................................................. 11 E. Critical Risks and Possible Controversial Aspects ........................................................................ 12 F. Loan/credit conditions and covenants............................................................................................ 13

IV. APPRAISAL SUMMARY .......................................................................................................... 13 A. Economic and Financial Analyses ................................................................................................. 13 B. Technical........................................................................................................................................ 14 C. Fiduciary ........................................................................................................................................ 15 D. Environment................................................................................................................................... 17 E. Safeguard Policies.......................................................................................................................... 19 F. Policy Exceptions and Readiness................................................................................................... 19

Annex 1: Country and Sector or Program Background ............................................................................ 20 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies...................................... 25 Annex 3: Results Framework and Monitoring.......................................................................................... 27 Annex 4: Detailed Project Description ..................................................................................................... 43 Annex 5: Program and Project Costs ........................................................................................................ 56 Annex 6: Implementation Arrangements.................................................................................................. 57 Annex 7: Financial Management and Disbursement Arrangements......................................................... 59 Annex 8: Procurement Arrangements....................................................................................................... 69 Annex 9: Economic and Financial Analysis ............................................................................................. 82 Annex 10: Safeguard Policy Issues............................................................................................................ 97 Annex 11: Statement of Sector Policy ..................................................................................................... 103 Annex 12: Project Preparation and Supervision ...................................................................................... 111 Annex 13: Documents in the Project File ................................................................................................ 112 Annex 14: Statement of Loans and Credits ............................................................................................. 113 Annex 15: Country at a Glance................................................................................................................ 114 Annex 16: Map IBRD 33424................................................................................................................... 116

JORDAN

SECOND EDUCATION REFORM FOR THE KNOWLEDGE ECONOMY

PROJECT APPRAISAL DOCUMENT

MIDDLE EAST AND NORTH AFRICA

MNSHD

Date: April 21, 2009 Team Leader: Francis Peter Buckland Country Director: Hedi Larbi Sector Manager/Director: Steen Lau Jorgensen

Sectors: Secondary education (35%);Primary education (35%);Pre-primary education (30%) Themes: Education for all (P);Education for the knowledge economy (P)

Project ID: P105036 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan

Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others: Total Bank financing (US$m.): 60.00 Proposed terms: Variable-Spread Loan (VSL), with level repayments for 22 years maturity, including a grace period of 6 years.

Financing Plan (US$m) Source Local Foreign Total

Borrower 31.68 25.92 57.60 International Bank for Reconstruction and Development 27.17 32.83 60.00 US: Agency for International Development (USAID) 63.18 53.82 117.00 CANADA: Canadian International Development Agency (CIDA) 9.18 7.82 17.00 JAPAN: Japan International Cooperation Agency (JICA) 1.35 1.15 2.50 Financing Gap 90.44 63.46 153.90

Total 223.00 185.00 408.00 Borrower: Ministry of Planning and International Cooperation P.O. Box 555, Amman 11118, Jordan Tel: (962-6) 462-9306 Fax: (962-6) 465-8231 Responsible Agency: Ministry of Education Amman, Hashemite Kingdom of Jordan Amman 11118, The Hashemite Kingdom of Jordan Tel: (962-6) 566-5461 Fax: (962-6) 464-6654 moffice@moe.gov.jo

Estimated disbursements (Bank FY/US$m) FY 2010 2011 2012 2013 2014 2015 2016 Annual 0.20 5.30 15.70 22.60 15.80 0.20 0.20 Cumulative 0.20 5.50 21.20 43.80 59.60 59.80 60.00 Project implementation period: Start July 1, 2009 End: June 30, 2015 Expected effectiveness date: July 1, 2009; Expected closing date: December 31, 2015

Does the project depart from the CAS in content or other significant respects? Ref. PAD I.C. [ ]Yes [X] No

Does the project require any exceptions from Bank policies? Ref. PAD IV.G. Have these been approved by Bank management?

[ ]Yes [X] No [ ]Yes [X] No

Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? Ref. PAD III.E. [X]Yes [ ] No

Does the project meet the Regional criteria for readiness for implementation? Ref. PAD IV.G. [X]Yes [ ] No

Project development objective Ref. PAD II.C., Technical Annex 3 The development objective of ERfKE II is to provide students enrolled in pre-tertiary education institutions in Jordan with increased levels of skills to participate in the knowledge economy. Project description [one-sentence summary of each component] Ref. PAD II.D., Technical Annex 4 Component 1: Establishment of a National School-based Development System. The Project will support the creation of an effective, school-based development process as the main vehicle to deliver to Jordan’s young people a quality education focused on developing the abilities, skills, attitudes and values associated with a knowledge-based economy.

Component 2: Monitoring and Evaluation and Organizational Development. The objective of Component 2 is to build upon ERfKE I investments related to policy, planning and M&E, and to ensure that outputs from these activities fully support and inform the adoption of a school centered approach to the delivery of education services. The component has two sub-components: (i) Policy Development, Strategic Planning, Monitoring and Evaluation; and (ii) Organizational Development.

Component 3: Development of Teaching and Learning. This component reviews and develops teacher employment, utilization and professional development policies and practices, fine-tunes a limited range of curriculum and student assessment arrangements, and ensures support for associated new developments. There are two sub-components: (i) Teacher Policies, Training and Professional Development, and (ii) Curriculum, Assessment and Learning Resources.

Component 4: Development of Special Focus Program. The objective of this component is to improve inclusive access to learning for all children in Jordan through special focus on three critical subsectors: (i) Early Childhood Education, (ii) Special Education and (iii) Vocational Education.

Component 5: Improvement of Physical Learning Environments. The objective of this component is improved provision of quality education facilities in a cost effective and sustainable manner so that students have access to environmentally friendly and efficiently operated quality physical learning environments. This component has three sub-components: (i) alignment of MoE standards with international design standards, and the requirement of education reform; (ii) construction and equipment of new schools and provision of extensions and equipment to existing schools; and (iii) establishing a maintenance and management system for school buildings. Which safeguard policies are triggered, if any? Ref. PAD IV.F., Technical Annex 10 The environment rating is B. The safeguard policies on Environmental Assessment (OP 4.01) and Involuntary Resettlement (OP 4.12) are triggered and accordingly, an Environmental Management Plan (EMP) and Land Acquisition Plan (LAP) have been prepared, translated into Arabic and disclosed. Significant, non-standard conditions, if any, for: Ref. PAD III.F. Board presentation: There will be no conditions for Board presentation. Loan/credit effectiveness: Submission to the Bank of the Project Operational Manual satisfactory to the Bank. Covenants applicable to project implementation: None.

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I. STRATEGIC CONTEXT AND RATIONALE

A. Country and sector issues

1. The Hashemite Kingdom of Jordan has averaged 7.7 percent economic growth per year between 2004 and 2007, and an estimated 5.5 percent in 2008, indicating a positive per capita growth [US$1,700 (2006)]. This growth has been broad-based, but mainly supported by export led growth and a construction boom fueled by increasing real estate prices, and has been underpinned by structural reforms and fiscal consolidation. The IMF estimates that the economic growth rate will eventually slow down and further efforts to reduce the external and fiscal debt should be pursued. Performance has been good in terms of human development and the incidence of poverty declined from 21 percent to 14 percent over the 1997-2003 period. However, economic growth coexists with one of the highest population growth rates in the world - about 2.7 percent with a population of 5.4 million people, and a demographic profile in which 70 percent of the population are below the age of 30. As a result, more than 60,000 citizens are entering the labor market every year, posing a major challenge for the government and society at large. Government and government-guaranteed net debt fell from 88.5 percent of GDP in 2004 to 72.5 percent at the end of 2006, with the external debt component falling from 66.2 percent to 51.3 percent over the same period. The external debt burden has decreased from 7.9 percent of GDP in 2004 to 5.9 percent in 2006. The impact of the global economic recession and fluctuations of energy and commodity prices have not yet been fully analyzed, but their consequences for economic growth and the debt burden are likely to be negative.

2. Concurrently, Jordan has a 40 percent labor market participation rate, one of the lowest in the region (67 percent of males and 14 percent of females), totaling a labor force of 1.4 million. Government employment makes up 30 percent. Half of the remaining employment is dominated by micro enterprises (less than 4 persons) representing about 2/3 of all businesses in the private sector. High unemployment at 14 percent, particularly among the young, poses a significant challenge (1/3 of the unemployed are under 24 years old). Concurrently, migrant and foreign labor estimates range between 300,000 and 700,000, or between 20-30 percent of the total labor force. In addition, the issue of “expatriate” workers represents one of the most controversial and recurrent political issues facing the Government in its efforts to create more jobs for Jordanians and increase productivity to further support the diversification and growth of the economy.

3. Education indicators have improved consistently since the mid-nineties. The illiteracy rate is 8.9 percent, the third lowest illiteracy rate in the Arab world; the primary gross enrolment ratio has increased from 71 percent in 1994 to 98.2 percent in 2006; the transition rate to secondary school has increased from 63 percent to 79 percent over the same period; and the transition rate to higher education has varied between 79 percent and 85 percent of secondary school graduates over the past five years. Jordan also ensures a high level of gender parity in access to basic services. As a result, it has achieved 90 percent parity in literacy, full parity in primary and secondary enrollment, and increased life expectancy for both sexes.

4. A substantial education reform program is in place. ERfKE I was designed and implemented under a sectoral approach whereby support and financing were provided by 9 different donors, including the World Bank, under the auspices of the Ministry of Education (MoE) which ensures that the donors’ operations converge towards the set development objective. The ERfKE I project, currently in its final year of implementation, has provided significant outputs, as a basis for further development of the education system. These outputs include: (i) formulating a strategic development plan for the sector with clear goals and objectives; (ii) re-defining the learning outcomes for all subjects from grades 1 to 12; (iii) developing new curriculum, teacher guides, learning resource materials and learning assessment tools for all subjects; (iv) delivering intensive teacher training; (v) equipping schools with ICT infrastructure and

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related e-learning resource materials; (vi) building new schools; and (vii) initiating quantitative and qualitative development of the early childhood development sector.

5. Jordan has a strong tradition of donor coordination in education. The ERfKE I program was supported by nine donors, including the Bank (Islamic Development Bank, Arab Fund, KFW, CIDA, USAID, JICA, DFID and EU) which all financed various activities that were part of the ERfKE program. Coordination at the policy level was achieved through attendance of donors at meetings of the General Policy and Steering Committee, donor representation on the M&E Advisory Committee, and biannual donor meetings convened during each World Bank supervision mission. Day-to-day coordination of activities was managed by the Development Coordination Unit (DCU) through an Integrated Plan that included and aligned all activities in all components implemented by all implementing partners into a single framework report. This practice of coordination at the policy and implementation levels will continue in the Second Education Reform for the Knowledge Economy (ERfKE II) project, with greater donor participation in supervision missions to ensure closer alignment of activities and objectives.

Main Sector Issues

6. The education system made significant advances during this period. Net enrolment in basic education increased from 89 percent in 2000 to 96.5 percent in 2005/6. Transition rates to secondary education have increased from 63 percent to 79 percent in the same period, increasing pressure on the secondary schooling institutional infrastructure substantially. Gross enrolment for the Kindergarten 2 (KG2) age group has risen from 47 percent to over 51 percent at present. The number of privately owned and operated schools has increased steadily, by 12.3 percent in pre-primary, 19 percent in basic and 17 percent in secondary, but remains below 10 percent of total enrolment in basic and secondary education. In the years between 1999 and 2007, Jordan made significant gains on international surveys of student achievement, with a particularly impressive gain of almost 30 points on the science portion of the Trends in International Mathematics and Science Study (TIMSS) over that period. While these gains cannot be attributed solely to the impact of the investment in the ERfKE program, they nonetheless suggest that Jordan has established significant positive momentum in student performance which continued investment should support.

7. Key lessons learned from a review of ERfKE I include: (i) an imperative to focus on the school as the locus of change while continuing to support the enhancement of the institutional framework and capacity building at the central and field directorate level; (ii) the need for a focus on teachers as the key agents of change; (iii) the need for the ministry to serve as a facilitator of change as opposed to being an implementer of change, which was its predominant role during the first phase of the reform; (iv) the need to direct capacity building at the district and school level; and (v) the adoption of a more participatory approach to the reform program, as opposed to a directive approach. This review, together with a recognized need to ensure alignment with the National Agenda, the National Education Strategy, and the MoE Strategic Plan, has identified the following issues that specifically warrant closer attention during the next phase of the reform:

• System Management: While efforts under ERfKE I focused heavily on management at the central level, the challenge in the next phase will be to move down to the school level in order to ensure that learning gains are achieved at the level of the school and the classroom.

• Policy and Strategic Planning Capacity: The MoE management system needs a significantly strengthened policy and strategic planning capacity, including an institutionalized monitoring and evaluation function that will guide the development of a more decentralized system.

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• Quality: In international assessments (TIMSS & PISA), Jordan has performed well in comparison with other countries in the Region, but well below many countries at comparable income and education expenditure levels, and at or below the international averages. National assessments (both of “knowledge economy skills” and more general subject-area competence) have revealed that the majority of students still perform below desired achievement levels. In addition up to 30 percent of students drop out before completion of 12th Grade.

• Teacher Policy: Studies conducted as part of ERfKE preparation revealed that while the majority of teachers are in possession of the required formal qualifications, and the current student teacher ratios do not suggest a significant shortage of teachers, there are significant challenges regarding teacher recruitment, utilization, professional development and morale. There is still a relatively low level of actual use of the new methods and approaches in the classroom, and the new learning materials are often used in a conventional teaching approach. Teacher morale remains low. Teachers in Jordan are not recruited by the MoE but are assigned by the Public Service Bureau on the basis of examination scores. With the exception of early grade primary teachers, most teachers enter the classroom without any sustained training in pedagogical approaches or basic classroom skills.

• Access and Equity: Household survey data indicate that public financing of basic schooling is more pro-poor than that of secondary schooling. Progress has been made in reducing gender differences in access to basic education, and to a lesser extent in secondary education. Subject specialization in secondary and vocational education still tends to reflect traditional gender roles. Completion rates and transition rates to tertiary education are highly correlated with family income: three times as many students in university come from the upper two income quintiles.

• Physical facilities: A recent school utilization study indicates that the number of MoE students is expected to increase by 124,634 between 2008 and 2013. It is estimated that there will be a need to provide an additional 3,360 classrooms over this time period. The same study also reveals a dichotomy in the provision of educational infrastructure in the Kingdom. There exists concurrently considerable excess capacity and wide-scale overcrowding of schools – much of it linked to rented facilities, but not exclusively.

• ECE (Early Childhood Education): Significant achievements in construction, teacher training, curriculum development, teacher professional development, parent involvement and standards setting have helped make this one of the more dynamic elements of Jordan’s education system. The private sector is responsible for 90 percent of provision (down from 95 percent in 2003), and improvements in regulation and guidance regarding standards have helped this subsector mature as it expands. Yet significant challenges remain: continued expansion of access to Kindergarten Year Two (KG2) for the roughly half of children without access to KG2 classes competes with growing demand for greater public investment in Kindergarten Year 1 (KG1) level provision; poor urban communities and children in rural areas compete for access to public provision; quantitative expansion competes with the need for consolidation of quality.

• Technical, and Vocational Education and Training (TVET): Enrollment in secondary vocational education as a share of total secondary enrolment declined from 18 percent in 2000 to 12 percent in 2005, suggesting a critical demand side problem, at a time of growing need for skills for the economic transformation articulated in the National Agenda. This suggests the need for significant realignment of MoE vocational programs to be undertaken based on input from the employer community and deeper analysis of labor market information derived from Al Manar and similar initiatives, in a way that aligns them with the reforms initiated by the Ministries of Labour (MoL) and Higher Education and Scientific Research (MoHESR).

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B. Rationale for Bank Involvement

8. ERfKE II is aligned with the IBRD and IFC Country Assistance Strategy (CAS) for the Hashemite Kingdom of Jordan for the period 2006-2010. The strategy is organized in four cross-sectoral clusters, the first of which is “strengthening the investment environment and building human resources for a value-added, skill-intensive and knowledge-based economy.” With respect to the education sector, the proposed operation builds on the achievements made under ERfKE I and continues to provide support to the Government of Jordan (GoJ) in the implementation of the second phase of the 10 year reform program using a sectoral approach. Preparation of ERfKE II has been undertaken with the full support of the Government, including the Ministry of Planning and International Cooperation (MoPIC) and the MoE. The Royal Consultative Commission on General Education has also been consulted and made inputs in the preparation of ERfKE II.

9. The Bank played a leading role in the development of ERfKE I as a program that included, in the end, nine significant donors who financed programs that were aligned with the reform objectives of the program. Of the US$380+ million donor-mobilized financing, the Bank, with US$120 million, was the largest donor in ERfKE I. At the invitation of the Government, the Bank is playing a similar lead role in the preparation of ERfKE II. The project preparation environment has changed substantially now as a result of two factors: (i) the very high level of ownership of ERfKE by the Government as its flagship reform program; and (ii) the substantial technical capacity of the various implementing partners that has been built up during ERfKE I. Thus, with coordination from the Bank for the purposes of processing the loan as a component of the overall reform program, project preparation has been led by the Government with a more open and participatory process than was possible under ERfKE I. Since February 2008, the MoE has moved rapidly to build on the momentum and process established during the identification mission and has coordinated the work of seven thematic working groups addressing the five proposed project components and some cross-cutting issues. Representatives of MoE officials at HQ and regional directorate level led these working groups which included representation from a wide range of implementing partners and donors active in the country. Where appropriate, representatives of private sector and civil society were involved in preparation working groups, or have made inputs to the process.

10. In addition to the role it played in supporting the conceptualization of ERfKE I, the Bank came to play an important role in monitoring and supervision, and it became a practice to share in some detail the findings of supervision missions, as well as to include representatives of other donors in the supervision missions. While the Government and individual donors conducted their own monitoring and supervision, the Government and donors alike drew heavily on the insights and comments from Bank missions, and took seriously the technical and strategic advice offered. The Bank is well-positioned to continue this role in ERfKE II, and is one of the few implementing partners that bring to the preparation and supervision a combination of technical expertise, relative detachment from the day to day implementation challenges of the program, and involvement with a full range of programs across the sectors.

C. Higher Level Objectives to which the Project Contributes

11. ERfKE II is the second phase of a 10-year reform program. The national Vision and Mission for Education, as developed and endorsed in late 2002, states the desired direction for general education in the country. The two major consultative documents that helped shape the national vision and set directions for educational reform initiatives spanning kindergarten to lifelong continuing education were Jordan Vision 2020 and the 2002 Vision Forum for the Future of Education. The overall strategy proposed by the Forum was endorsed by the Economic Consultative Council (ECC) in October 2002. The national development strategy and the Forum results were consolidated into specific development plans, the Social and Economic Transformation Plan, the General Education Plan 2003-8, the Education Reform for the Knowledge Economy (ERfKE I) Program, and the Jordan Education Initiative (JEI). The National

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Education Strategy was published and disseminated during ERfKE I, and provides the framework for the MoE Strategic Plan 2008-2013, which is the strategic foundation for ERfKE II.

12. The National Agenda (2006-2015) has moved the focus on quality education forward by stressing the importance of kindergarten, basic and secondary education within the overall plan for the development of human resources and also by raising the accountability of the public education sector in terms of its responsibility to address education quality and access issues while enhancing the efficiency and effectiveness of expenditures. With respect to linkages between education, skill development, and employment, the National Agenda identified an imperative to redefine and harmonize the program structures and outcomes from the MoE secondary vocational stream, the Vocational Training Corporation (VTC), and the Community Colleges administered by Al-Balqa’ Applied University (ABU). Initial steps have been taken in this direction through the work of the TVET Council and dialogue relating to the establishment of a National Qualifications Framework. There is a need for alignment with wider developments in technical and vocational training in other ministries. These reforms, which involve the Ministry of Labor (MoL), the Ministry of Social Development (MoSD) and the Ministry of Higher Education and Scientific Research (MoHESR), are still at a relatively early stage in their development. The commitment of the GoJ, however, to two Bank-financed projects supporting these ministries’ reform efforts attests to the Government’s vision of a more coherent, relevant and articulated approach to technical education and vocational training.

II. PROJECT DESCRIPTION

A. Lending Instrument

13. The lending instrument for the Bank financed portion of this program is a Sector Investment Loan (SIL), financed by an IBRD Loan in the amount of US$60.0 million, on standard IBRD terms. The Government counterpart contribution will be US$57.60 million. The project implementation period will be from July 2009 to June 30, 2015

B. Program Objective and Phases

14. The Education Reform for the Knowledge Economy Program (ERfKE) is a 10-year multi-donor sector program designed to deliver on the 2002 Vision Forum for the Future of Education in Jordan: “The Hashemite Kingdom of Jordan has the quality competitive human resource development systems that provide all people with lifelong learning experiences relevant to their current and future needs in order to respond to and stimulate sustained economic development through an educated population and an educated workforce.”

15. ERfKE II is the second phase in the Government’s reform program for education within this overall vision. The first phase ran from 2003-2009, and will close in June 2009 after five and a half years of implementation.

C. Project Development Objective and Key Indicators

16. The development objective of ERfKE II is to provide students enrolled in pre-tertiary education institutions in Jordan with increased levels of skills to participate in the knowledge economy. This will be monitored through the following key indicators:

(a) Increase in scores on national assessments aligned with knowledge economy skills. (b) Increase in enrollment rates.

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D. Project Components

17. The ERfKE II Program consists of the following five components:

Component 1: Establishment of a National School-based Development System (US$13.3 million total cost, none of which will be financed from the loan)

18. Building on the experience of ERfKE I and drawing on international best practice, this component has as its main focus the creation of an effective, school-based development process as the main vehicle to deliver to all young people of the Kingdom a quality education focused on developing the abilities, skills, attitudes and values associated with a knowledge-based economy. In each school, a school self-evaluation process will lead directly to the production of the school’s own school development plan. Local empowerment and ownership will be achieved in the first instance by devolving budgets for Teacher Professional Development (TPD) to schools. The complimentary accountability will be achieved by MoE creating a capacity to engage directly with schools and field directorates in monitoring and evaluating the quality of school development and effectiveness. Investment in the component will be used to develop the required procedural instruments and processes, and to build the professional capacity and institutions within the system to use these instruments and processes effectively. The provision and focus of TPD will be driven directly by schools’ own understanding of needs, drawing on their school development plan. There will be an emphasis on TPD delivered locally and on creating peer learning and support networks. There will also be an emphasis on developing, enabling and supporting strong, capable and effective school leadership. The roll-out strategy will be initiated in a small number of field directorates and associated schools in year 1 (3 Field Directorates and 207 schools). Subsequent phasing will be guided by lessons learned in that process. By the end of the program, all public schools and field directorates in the Kingdom will be involved.

Component 2: Monitoring & Evaluation and Organizational Development (US$13.6 million total cost, of which US$3.0 million will be financed from the loan)

19. The objective of Component 2 is to build upon ERfKE I investments related to policy, planning and M&E, and to ensure that outputs from these activities fully support and inform the adoption of a school centered approach to the delivery of education services. The component has two sub-components: (i) Policy Development, Strategic Planning, Monitoring and Evaluation; and (ii) Organizational Development.

20. Sub-component 2.1: Policy Development, Strategic Planning, Monitoring and Evaluation will include: (i) establishment in the MoE of institutional capacity for policy, strategic planning and monitoring and evaluation; (ii) final implementation of the School Information System (SIS); (iii) linking the EMIS with the GIS and external databases; (iv) developing robust data architecture and integration of ministry systems; (v) development and implementation of innovative approaches to school-based teaching and learning activities (Innovation Fund1); and; (vi) development and implementation of a Monitoring and Evaluation (M&E) Framework for the program that will have an internal element, managed from within the MoE, and an external element, managed by the NCHRD with capacity-building and quality-assurance support through a partnership with an internationally renowned institution.

21. Sub-component 2.2: Organizational Development is to transform the MoE organizational culture, structure and processes for greater accountability in governance and management, in order to ensure effective and efficient delivery of education services focused on the improvement of student

1 As in ERfKE I, procurement of goods and services, financial management and disbursement will be carried out

by DCU, and funds will not be transferred to schools.

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learning outcomes. Starting from a systematic organizational review, ERfKE II interventions designed to achieve this objective will address: (i) organizational structures and functions; and (ii) performance management of financial and human resources systems.

Component 3: Development of Teaching and Learning (US$49.3 million total cost, none of which million will be financed from the loan)

22. This component reviews and develops teacher employment, utilization and professional development policies and practices, fine-tunes a limited range of curriculum and student assessment arrangements made under ERfKE I, and ensures support for associated new developments. There are two sub-components: the first sub-component focuses on teacher policies, training and professional development, and the second concerns curriculum fine-tuning, and the development of assessment and learning resources – including use of ICT and e-learning.

23. Sub-component 3.1: Teacher Policies, Training and Professional Development includes the establishment of the Education Training Centre (ETC) – a body whose primary function is to steer, plan and assure the quality of TPD nationally. It will also, at least initially, oversee and deliver pre-service teacher training, and TPD for teachers, principals and field directorate as part of Component 1. The sub-component will also have a range of specific interventions including: (i) the design and delivery of initial teacher training and accreditation; (ii) refinement of the teacher ranking system linked to TPD; (iii) the design and delivery of school leadership programs; (iv) teacher and principal appraisal; (v) a Trainer Development Program; and (vi) the development of a QA system for ITT and TPD.

24. Subcomponent 3.2: Curriculum, Assessment and Learning Resources will: (i) where necessary review and revise the curriculum, learning materials and teacher guides developed under ERfKE I; (ii) develop a framework for long–term, continuing curriculum review; (iii) support the development of tools and training for assessment activities at the classroom and national levels (NAfKE, TIMSS and PISA will be covered under Sub-component 2.1); (iv) introduce benchmarking and item banking and related training; (v) update ICT equipment for schools and support existing ICT infrastructure; (vi) ensure ICT connectivity available in all schools to permit blended e-learning; (vii) ensure equity in distribution of learning resources across Jordan (Financing for the goods associated with this activity is reflected in Component 5.); and finally (viii) conduct Tawjihi-ERfKE alignment activities.

Component 4: Development of Special Focus Program Development (US$20.6 million total cost, of which US$2.6 million will be financed from the loan)

25. The objective of this component is to improve inclusive access to learning for all children in Jordan through special focus on three critical subsectors: Early Childhood Education, Special Education and Vocational Education.

26. Sub-component 4.1: Early Childhood Development (ECD) will expand access and enhance the quality of the ECD program in order to maximize children’s learning potential. The component will aim for greater equity in access to ECD, improved quality of programs and services, and increased parental and community involvement. The component consists of four areas of intervention: (i) increased institutional capacity; (ii) professional development of KG teachers; (iii) expansion of kindergartens for the poor; and (iv) greater public awareness and understanding.

27. Sub-component 4.2: Vocational Education will provide resources and technical assistance to restructure and realign the MoE secondary vocational education stream with all national policy, program, certification and accreditation initiatives currently being undertaken in the technical vocational education and training sector, guided by the E-TVET Council established under the National Agenda. Activities will

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include: (i) reformulation of the policy and program framework in consultation with the ETVET Council; (ii) development of curriculum and learning resources; (iii) realignment of teacher competency profiles; (iv) rationalization, re-deployment, and procurement of tools and equipment; and (v) facilitation of graduate employment aligned with labor market needs.

28. Sub-component 4.3: Special Education. The objective of this subcomponent is to expand access to quality education programs and services relevant to students with special needs. This subcomponent consists of 5 areas of intervention: (i) review and updating of policies, regulations, procedures and practices; (ii) institutional development of central and field directorates; (iii) development and provision of quality learning programs, services and resources; (iv) teacher training and awareness raising; and (v) updating and supply of facilities and equipment.

Component 5: Improvement of Physical Learning Environments (US$310.8 million total cost, of which US$54.4 million will be financed from the loan)

29. The objective of this component is improved provision of quality education facilities in a cost effective and sustainable manner so that students have access to environmentally friendly and efficiently operated quality physical learning environments. A detailed planning analysis has assessed the current situation regarding access to and utilization of physical facilities, and has revealed the need for further substantial investment in construction and rehabilitation to reduce overcrowding and accommodating projected enrolment increases, while facilitating more efficient utilization of underutilized schools. This component has three sub-components: (i) alignment of MoE standards with international design standards, and the requirement of education reform; (ii) construction of new schools and provision of extensions to existing schools; and (iii) establishment of a maintenance and management system for school buildings.

E. Lessons Learned and Reflected in the Project Design 30. The areas where the greatest progress was made in ERfKE I were in system changes that could be more easily directed by the centralized authority of the Ministry without impacting significantly on organizational change (curriculum development, teaching and learning materials, ICT and physical infrastructure). Areas where progress was slower were those that involved significant organizational change (decentralization, institutionalization of strategic planning) and those that required a change in behavior of teachers and officials (new pedagogy and classroom practices, new management roles). This is a fairly predictable outcome with a system reform of this magnitude – it is easier to bring about changes to documents, procedures and policies than it is to transform organizational structures or human behavior. These observations lead to the following conclusions regarding the lessons that should guide development of ERfKE II: (i) an imperative to focus on the school as the locus of change while continuing to support the enhancement of institutional framework and capacity building at the central level; (ii) the need for a focus on teachers as the key actors in change; (iii) the need for the ministry to serve as a facilitator and driver of change as opposed to being an implementer of change, which was its predominant role during the first phase of the reform; (iv) the need to direct capacity building at the decentralized level; and (v) the adoption of a participatory approach as opposed to a directive approach. This review of lessons identified the following issues that specifically warrant closer attention during the next phase of the reform:

31. The use of a Development Coordination Unit (DCU) staffed largely by public officials and located in the MoE itself resulted in stronger ownership and leadership of the project than an externally located PIU. The DCU played a strong coordination and monitoring role for this very complex program and in many ways became the driving force behind implementation of the program. A challenge for ERfKE II is to strengthen the leadership and coordination of the MoE senior managers in driving program planning and implementation, with a clearer progress monitoring and reporting role for the DCU.

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32. Monitoring and evaluation also provided some challenges in ERfKE I, with lack of clarity in the respective roles and responsibilities for internal and external monitoring and evaluation, and its links to policy and strategy development, as well as the need for capacity-building and institutional strengthening in technical aspects of M&E. Other general lessons learned include the following:

(a) Education reform takes time and major results are not immediate: the implementation process requires patience and precise monitoring and evaluation for feedback and further planning.

(b) Sound strategic planning within the Ministry guides the design of investment initiatives and is particularly important for major areas of expenditure such as ICT where large-scale investments are required to support quality in teaching and learning and improvements in student achievement.

(c) Clear and logical investment program planning guides the sequencing of activities and timing of interventions to reach desired outcomes.

(d) Strong leadership and ownership from the MoE executive and senior management staff supports and strengthens reform and improves the potential for success.

(e) Leadership development and targeted training for work management and continuous system improvement are cornerstones for building capacity for performance management and improvement.

(f) The MoE must extend its capacity to monitor and evaluate the pace, extent, and quality of change.

(g) To direct and manage change, the management and operational structure of the MoE must be built on principles of efficiency and effectiveness.

(h) Support for Ministry leadership through donor technical assistance and other measures, must focus on capacity building through training and collaborative working; prioritizing knowledge-transfer and building skills for system management in Ministry staff.

(i) Public communication and greater awareness increase stakeholder understanding, commitment and active participation.

(j) Communication and coordination between all partners (especially with respect to similar, linked or intersecting initiatives) are essential for long-term positive outcomes and eventual impact.

(k) Better results occur when there is a shift in focus from an activity-based approach to a results-based approach; and from an emphasis on activities and inputs to outputs and outcomes measured by key performance indicators.

F. Alternatives Considered and Reasons for Rejection

33. A Specific Investment Loan (SIL) is proposed as the most suitable instrument to support the Government’s program. Three other options were considered by the team but were rejected. First, a Sector-wide Approach (SWAp) was not supported by the Government as it was concerned that uneven progress in reforms in other education subsectors (higher education and vocational training) could slow implementation of the ERfKE II reforms within a SWAp framework. Second, an adaptable program loan was rejected as not well-suited to the nature and time horizon of the proposed development interventions that are well-defined and can be implemented within a 6-year period. The last option, a Technical Assistance (TA) loan, was rejected on the grounds that in addition to TA (or “know how”), the government reform program requires substantial expenditure in hard investments (schools and equipment) to accommodate expansion requirements and enhance quality of education through provision of learning resources such as computers, science lab equipment, and vocational equipment.

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III. IMPLEMENTATION

A. Partnership Arrangements (if applicable)

34. ERfKE II will use essentially the same implementation arrangements that proved successful in ERfKE I, in which the Bank-financed loan was implemented in parallel with other loans and a mixture of grant and project support from other donors. This did not involve any formal partnership between the Bank and any other donor, and donor coordination was managed at the policy level by MoPIC and at the implementation level by MoE through the DCU. ERfKE II is expected to garner similar support for the program that ERfKE I has enjoyed. Indications of intentions to support ERfKE II have been received. Almost all the TA in the program will be financed from grants support. USAID grant is committed. CIDA grant still to be finalized. The first year of CIDA financed activities are already covered from the existing grant. The current financing gap of US$153.6 million applies largely to school construction activities. In addition, donor interest exists from the Islamic Development Fund and the Arab Fund.

B. Institutional and Implementation Arrangements

35. Most of the implementation arrangements in effect under the ERfKE I Project will be used by ERfKE II. However, one noteworthy difference is that ERfKE II will have two implementing agencies: (i) the MoE will be responsible for the overall implementation of the project, and (ii) the Government Buildings Directorate (GBD) of the Ministry of Public Works and Housing (MoPWH) will be responsible for the implementation of the civil works component, as described in Annexes 6, 7 and 8. Leadership for component committees will be provided by senior managers in the MoE, under the leadership of the Minister and overseen by the General Policy and Steering Committee (GPSC), with representation at very senior levels from MoE, MoPIC, NCHRD and, for ERfKE II, GBD. The DCU will serve as the Secretariat for the GPSC. More specifically, the DCU will assist the GPSC in its technical and administrative functions and to supplement its capacity in education reform execution.

36. The DCU will continue to: (i) facilitate the formulation of an integrated implementation plan; (ii) monitor and report on implementation progress; and (iii) provide information to support coordination of implementation by the MoE management. DCU will also provide an important coordination link with other development partners to ensure that parallel financed activities are synchronized with overall program implementation. The DCU staff are drawn from staff in the employ of the MoE, or staff under long-term contractual arrangements with the MoE (none of which are financed from the loan or donor proceeds). It is anticipated that, as was the case for ERfKE I, regular capacity building and technical assistance for the DCU will be provided through donor support or through a capacity-building trust fund similar to the CIDA-financed grant that was managed by the MoE and administered by the World Bank from 2004 to 2009.

37. With regard to financial management (FM), the Finance Officer following on ERfKE I has been appointed, on full time basis, to follow on ERfKE II accounts and finances. The FM experience gained during the implementation of the ERFKE I project on Bank guidelines and procedures will allow him to follow on the ERFKE II project. GBD has assigned a Finance Officer, on a part-time basis, from its own financial staff to be part of the team implementing and managing Component 5 of the project.

38. To ensure that funds are readily available for project implementation, two Designated Accounts (DAs) will be opened, one for MoE and one for GBD, at the Central Bank of Jordan (CBJ). These accounts will be managed separately by each agency. An independent external auditor will be hired to audit annually the project financial statements. FM arrangements are detailed in Annex 7.

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C. Monitoring and Evaluation of Outcomes/Results

39. One of the lessons from ERfKE I was the need to strengthen arrangements for monitoring and evaluation of program implementation, both in terms of internal monitoring and evaluation and external formative and summative evaluation. The major changes that will be introduced are: (i) a stronger institutionalization of an internal M&E function in the program design, so that internal M&E are more systematically incorporated into the management system; (ii) clearer delineation between internal and external evaluation, so that the independence of the external evaluation is not compromised by internal dynamics within MoE; and (iii) clearer institutional location within the MoE of the policy and strategic planning function, so that policy analysis conducted as part of the M&E activities will be incorporated more systematically into policy development within the MoE. In addition, more resources will be directed to support institutional development and capacity-building in the NCHRD, the institution responsible for the external M&E to ensure that this well-established national institution develops the professional expertise and capacity to meet the additional requirements of ERfKE II. The primary mechanism under consideration to provide this capacity-building is a partnership between NCHRD and an internationally renowned institution (to be supported through parallel financing provided by USAID) that would provide support for institutional development and quality control.

40. The day-to-day monitoring of program implementation remains the responsibility of the respective senior managers responsible for each component and sub-component, with DCU providing regular integrated monitoring reports to managers and facilitating, where necessary, meetings or coordination arrangements with other implementing partners. The program M&E will be based on an M&E Framework currently under preparation, and new governance arrangements for the M&E process will provide for stronger coordination and clearer accountability for M&E results. The M&E Advisory Committee, established under ERfKE I, will be replaced by an M&E Steering Committee with a clearer mandate and greater authority.

D. Sustainability

41. The ERfKE II program is the investment component of the overall government reform effort to improve the way education is delivered and supported and the way resources are deployed, from teacher utilization to school construction, attendance, and planning. The increased costs to the Government associated with the proposed program in ERfKE II are modest compared to the overall costs of the government reform program, and these program costs are achievable with far less ambitious efficiency and effectiveness gains than those anticipated in the teacher utilization and financing preparation studies.

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E. Critical Risks and Possible Controversial Aspects

Risk Risk Mitigation Measures Risk Rating

with Mitigation

To Project Development Objective

Vulnerability to external shocks, due both to the fragility of the regional political environment and to the volatility of some key economic parameters could impact negatively on the GoJ’s ability to finance the investments.

Jordan has maintained a policy of stable macroeconomic management, addressing the macroeconomic vulnerabilities stemming from declining external grants and rising oil prices through fiscal adjustment and tight monetary policy.

Implementation will be phased with clear priorities to ensure that key components and activities are sustained. Use could be made of the new financing parameters that permit 100% financing, so that key program investment will not be delayed by local fiscal constraints.

Moderate

Some donor parallel financing may not materialize, or may be withdrawn due to fiscal constraints in donor countries.

Donors have been involved in program development and have strong commitment to the program. Activities will be prioritized and coordinated to limit impact on key components.

Low

Some risk of disruption of sector governance if there is a change of senior leadership, and a change of strategic direction.

The development of the program will include close collaboration with all levels of Government, including the Royal Court, which has already expressed support for the general direction of ERfKE II planning.

Components 1 and 2 will provide guidance to the required institutional change. MoE recognizes that additional human resources having strong change management skill sets will be required.

Low

To Component Results

The operation introduces a school- and community-centered approach to the delivery of education that requires not only a realignment of roles and responsibilities of a centralized system but also an adoption of a culture of participation by the population.

Lack of authority at the school level and limited participation in the reform at community level could limit implementation.

The Minister has made a strong commitment to decentralization, and the project designs provides for support of international consulting firm in the restructuring of the Ministry.

The operation will benefit from the program reform communication strategy undertaken under ERfKE I and will continue to support communication for reform.

Moderate

The scale and complexity of the reforms that impact directly on teachers, principals and field directorate officials could prove overwhelming to the system and result in reform fatigue and resistance to change.

The pace of introduction of the school development planning and the professional development will be adjusted to accommodate absorptive capacity. Regular evaluation, monitoring and communication will help MoE to adjust the pace of reform.

Moderate

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Risk Risk Mitigation Measures Risk Rating

with Mitigation

Program activities will be executed by the different technical units within the Ministry, with overall coordination undertaken by the actual Development Coordination Unit (DCU). The staffing profile and capacity of the present DCU needs to be strengthened in order to oversee an enhanced operation with new axes of intervention, notably the school-based program and the broadening of program development into vocational education and special education.

The lack of strong and effective DCU to provide overall coordination could hamper implementation.

The capacity of the DCU will be assessed and recommendations made to staff the Unit with personnel having the appropriate qualifications and skill sets.

Low

This is a repeat project of ERFKE I and its procedures will be applied to ERfKE II. ERfKE I was all centralized and included civil works, while ERfKE II consists of a TA component that has an impact on the schools in the field directorates.

Well-defined procedures will be agreed upon between all parties including the flow of information between the field and the center. The TORs of the auditor will be customized to deal with such risk.

Low

The foreseen risk of moving the Department of Buildings, in charge of Civil Works contract management, from MoE to the Government Tender Department at the Ministry of Housing and Public Works.

Defining at appraisal the documents flow and their approvals, through a chart of responsibilities, to involve MoE in approval of design and reception of works.

Low

Overall Risk Rating Low

F. Loan/credit conditions and covenants

42. Board Presentation: There are no conditions of Board presentation.

43. Loan Effectiveness: A condition of effectiveness is receipt of the Project Operations Manual satisfactory to the Bank.

44. Condition for Disbursement: There are no conditions of disbursement.

IV. APPRAISAL SUMMARY

A. Economic and Financial Analyses

45. Worldwide and in Jordan, investments in education generate positive labor market outcomes. The annual rate of return to investment in a year of schooling in Jordan is calculated to be above 9 percent. The returns to schooling rise much faster beyond secondary education (12% compared to 6%). The Government's goal is to expand access to, and enrollment in, secondary education and improve the quality of basic and secondary schooling, through investments in proven inputs, school-based management and teacher development, early childhood education, among other interventions, thus giving students the opportunity to realize higher returns to schooling.

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46. Jordan has been investing in improving the quality of education in the past decade. This investment has been having a noticeable impact on student learning since the early 1990s. In the 1991 International Assessment of Educational Progress (IEA), out of 20 participating countries, Jordan finished ahead of only Brazil and Mozambique in the mathematics and science tests for 13-year-olds. By the late 1990s, there was a marked change as seen in the 1999 Third International Mathematics and Science Study (TIMSS), where out of 38 countries, Jordan finished ahead of six (Iran, Indonesia, Chile, Philippines, Morocco and South Africa) in mathematics and ahead of eight (Iran, Indonesia, Turkey, Tunisia, Chile, Philippines, Morocco and South Africa) in science (bearing in mind that TIMSS is not strictly comparable to IEA). However, the progress does not stop there. In 2003, Jordan improved its TIMSS science score to 475 from 450 in 1999, an increase of 25 points, or 0.25 standard deviations, which is a significant increase, equivalent to about a whole year of learning. In 2007, Jordan continued to improve, surpassing several countries which had a similar or slightly higher performance in 1999. In fact, between 1999 and 2007, no other country improved as much in science as did Jordan.

47. ERfKE I began a reform process that is paying dividends, and ERfKE II will continue to support improvements in the quality of education over a sustained period of time. ERfKE II has a very significant and clear focus on quality, thus promoting access and attainment in a quality school system, with increased non-personnel recurrent spending particularly in professional, curricular and pedagogical development; committing to using assessments of cognitive skills development as the primary outcomes and indicators of success; investing in early childhood development, improving the under-performing vocational secondary track; and a school-based management strategy designed to empower and support the school.

48. The development objective of ERfKE II is that students enrolled in all streams of pre-tertiary education in Jordan will have increased levels of skills necessary for participation in the knowledge economy. To support this objective, the program focuses on the improvement of education quality. Currently, Jordan’s share of recurrent educational expenditure dedicated to personnel and salaries, while falling, is still high (89%). ERfKE II is supporting the development and deployment of teaching and learning resources, with a specific focus on teacher development and curriculum, assessment and learning resources, which are directly related to improvements in education quality. The non-personnel recurrent expenditures portion of the budget has been growing under ERfKE I and will increase further under ERfKE II.

49. The ERfKE II program will contribute to increased student test scores on national assessments aligned with knowledge economy skills; increased completion and decreased dropout rates; and increases in enrollment rates. To achieve the goals of reform program, Jordan must spend close to US$408 million over the next 6 years. Additional recurrent costs are manageable at less than 1%, and justifiable given the nature of the activities to be financed.

B. Technical

50. The lessons learned from the implementation of ERfKE I, and recent international experience led the MoE and the World Bank to have a project design that places the schools as the locus of change, thus the design of Component 1. However, recognizing that a shift towards a school-based approach requires a re-orientation of the role, mandate, and capacity of the MoE, Component 2 is designed to support the organizational development and realignment of the MoE to ensure implementation of Component 1. Component 3 continues to build teacher capacity and provision of learning resources required for the transition from the center to the school-level. Component 4 emphasizes expansion of the KG programs in Jordan, which is a stated policy, and is highly consistent with international best practices. The focus on vocational programs and special education are also consistent with Jordan’s policies to provide better options for students at all levels and abilities. Finally, Component 5 has been designed to take into

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account the access requirements and the need to provide a safe physical learning environment to all students in Jordan. Design standards follow international practices, including planning for environmental management. These observations have led to the design of ERfKE II, incorporating the following features: (i) a focus on the school as the locus of change while continuing to support the enhancement of the institutional framework and capacity building at the central level; (ii) a focus on teachers as the key actors in change; (iii) changes to ensure the ministry serves as a facilitator of change as opposed to being an implementer of change, which was its predominant role during the first phase of the reform; (iv) directing of capacity building to the decentralized level; and (v) the adoption of a participatory approach as opposed to a directive approach.

C. Fiduciary

Procurement 51. The implementation of the project procurement will be handled partially by the MoE for procurement of goods and consulting services and by the GBD for Works and related consultancy services. The compilation of reports and monitoring of progress will be the responsibility of the MoE.

a. Ministry of Education: Unlike other ministries housing procurement under the financial department, MoE has an established separate directorate for procurement and supplies. It is composed of the following: Technical Specifications and Costing, established in 2006 (5 engineers and technical people), International Projects Department including the coordinators of bids (10 staff), and Monitoring Department which is also handling procurement of consultants (6 staff). The overall yearly procurement envelope carried out by MoE is JD7M (US$10 million) funded by the Government budget and JD14 million (US$20 million) by international funding.

b. Ministry of Public Works and Housing: Procurement is managed by the Secretary General of MoPWH and comprises three departments staffed with approximately 350 people: GTD [procurement processing before contract signature] is composed of 23 engineers and 8 support staff, GBD is composed of 320 field engineers (centrally and in directorates), and financial and accounting (15 staff). The overall yearly procurement envelope carried out by MoPWH is JD 250 million (US$350 million).

c. Special Tender Committee (STC): The mandate of the current STC at MoE will have its mandate extended to cover ERFKE II. STC will be operational after project effectiveness and will handle procurement processed by the MoE related to goods and consultants services.

Financial Management 52. The Project Components 1 through 4 will be implemented by the DCU housed at the MoE while Component 5 will be implemented by GBD which is mandated to manage the construction of schools. The Finance Officer following on ERfKE I has been appointed, on full time basis, to follow on ERfKE II accounts and finances. The FM experience gained during the implementation of the ERFKE I project on Bank guidelines and procedures will allow him to follow on the ERFKE II project. GBD has assigned a Finance Officer, on a part-time basis, from its own financial staff to be part of the team implementing and managing Component 5 of the project. Adequate training by the Bank and also through cooperation with the existing DCU will be provided to the GBD Finance Officer to ensure that he understands and can apply World Bank Policies and Procedures. The Finance Officers at both entities (DCU and the GBD) are and will remain public sector employees.

53. The Project overall FM risk was assessed as moderate mainly due to: (i) possible limited coordination between MoE and GBD that might affect the implementation pace of the Project, thus

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causing delays; (ii) limited knowledge of GBD about World Bank guidelines and procedures and limited staff capacity; and (iii) lack of adequate accounting software at GBD to facilitate the generation of timely financial reports to be used for monitoring and decision making.

54. Measures mitigating the above risks have been defined and agreed upon with the Borrower. These measures include: (i) clarifying the roles and responsibilities of MoE and GBD as well as the communication flow and reporting mechanisms which is defined in the Operational Manual (OM); (ii) GBD assigning a designated Finance Officer from its own financial staff and on a part-time basis, to be part of the team implementing and managing Component 5 of the project; (iii) delivering training workshops to staff involved in the Project on Bank guidelines and procedures; and (iv) installing at the GBD the same accounting software used by the DCU during the implementation of the ERfKE I project.

55. Although the Project will follow the government applied controls set in the local laws, there will be supplementary controls in place for monitoring Project activities through the DCU where additional verification of the invoices will take place and periodical financial reports will be consolidated and generated.

56. To ensure that funds are readily available for project implementation, two US Dollar Designated Accounts (DAs) will be opened by the MoE and GBD, respectively. Both accounts will be opened at the Central Bank of Jordan. An independent external auditor will be hired to audit on annual basis the Project financial statements and payments made on SOE basis (FM arrangements are detailed in Annex 7).

Social

57. In contributing to the reform of the pre-university education system in Jordan, ERfKE II – the preparation of which benefited from a participatory process involving MoE officials, implementing partners, donors, members of the private sector and civil society – is intended to achieve several important social development outcomes. These include increasing access and equity to students in the poorer quintiles, further closing the gender gap, enhancing educational opportunities for early childhood education in poor areas, and addressing the situation of students with special needs. These measures will be carried out in an increasingly more participatory environment, where schools, teachers, and parents play a more active role in the process of learning, and where new systems, tools and schools are put in place to provide a more conducive and accountable learning environment.

58. These reforms will better prepare students in Jordan to compete in the global economy and enhance their employability. This is of particular concern to the young population of labor entrants, who compete for a few jobs. Unemployment in mid-2008 was 13.3 percent according to the latest Economic Monitoring Report (EMR), with one-third of the unemployed being under 24. As for the gender gap, women in Jordan have a very low labor market participation rate – currently at below 15 percent – which is at odds with their achievement of full parity in secondary enrollment and their high enrolment rates in tertiary (41 percent for females and 37 percent for males). Against a high fertility rate of 3.4 births per woman and the domestic impact of regional conflicts, the issue of economic diversification and job creation is key.

59. Aligning the skills and abilities of labor market entrants to the job market is one of the concerns of ERfKE II, with the GoJ seeking to restructure its vocational education sector around knowledge economy skills. The reform effort under ERfKE II will seek to make vocational education more relevant to both labor market entrants and employers, reversing a declining trend in secondary vocational education enrollment. Females, whose subject specialization still tends to reflect traditional gender roles, and males would be equipped with the skills needed to find opportunities for suitable employment in the principal employment sectors in Jordan.

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60. The promotion of greater equity in distribution of and access to learning resources across Jordan is one of the pillars of the reform program, both under ERfKE I and II. The focus on early childhood education as well as special education will have a lasting impact on the inclusion of students from poorer and more remote areas and students with special needs, much as the Government’s previous reforms helped narrow the gender gap in basic education.

61. In the case of early childhood education (EDC), ERfKE II will seek to tackle the issues of access children in poor urban communities. Despite tight resources and competing demands, the Government has and will continue to support early childhood education for all children in Jordan, as its policy of granting admission to public schools for children of displaced Iraqis has shown. Earlier reform efforts have improved public access to EDC in rural areas, but this has not been matched in poor urban areas where the private sector has been a major provider of EDC.

62. The educational needs of vulnerable and/or excluded groups will be addressed in the special education sub-component. The objective is to increase access to quality education programs and services relevant to students with special needs. This objective was outlined in the National Education Strategy, developed under ERfKE I, and will aim at teacher training, awareness-raising, and construction and renovation of facilities and equipment, among other things.

63. Having learned from past projects, and taking lessons from the on-going ERfKE I, the proposed project will adopt an approach that seeks to put the school and community at the center of the education delivery process, an important change from the centralized system that has dominated Jordan’s education sector. This approach prioritizes the involvement of parents and the community. Drawing on the successful pilots under ERfKE I -- Parent Involvement Program and the Better Parenting Program – parent and community involvement in early childhood education will be further rolled out as a way of increasing public awareness of the importance of early childhood development. Likewise, a school-based approach will help provide schools with the flexibility to make the necessary pedagogical and other changes needed to effectively improve the learning environment and learning outcomes.

64. Like participation, accountability plays an important role in the reform of the education sector, with ERfKE II seeking to institute processes that increase accountability, including a performance-based management system. This involves changing the organizational culture at the central level by instituting new management and governance processes, including of the financial and human resources systems.

65. Land Acquisition/Resettlement. The project triggers OP 4.12 on Involuntary Resettlement as it includes new construction of schools that will involve land acquisition of two land parcels for which the location is known. To address this issue, a Land Acquisition Plan (LAP) has been prepared and lays out the process for land acquisition in both cases, including the consultations held, relevant legal framework, and implementation and monitoring arrangements. Details of the LAP can be found in Annex 10.

D. Environment

66. Project Environmental Classification: The project is classified as Category B, according to the World Bank’s Operation Policy on Environmental Assessment (OP 4.01). The project includes new construction as well as extension and rehabilitation of existing schools. Activities are expected to be associated with minor adverse environmental impacts. Potential negative environmental impacts are expected to be site-specific and temporary in nature and can be mitigated with the implementation of mitigation measures outlined in an Environmental Management Plan (EMP).

67. Public Consultation: Concerned municipalities have been consulted during the site selection process for new schools. Sites for new construction were selected according to various criteria, including

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several environmental specifications such as geographic and topographic characteristics, suitability of soils and sub-soils, slope of land, presence or absence of important natural habitats, vulnerability to natural hazards, historic characteristics, access to electricity, sewer and water supply, and land ownership. Additionally, the Ministry of Environment, Jordan Water Authority and the Department of Antiquities were consulted to determine the specific requirements related to access roads and streets, availability of basic infrastructure services and requirements, and possible proximity to areas of cultural significance.

68. Environmental Management Plan (EMP): A generic EMP was prepared by the MoE and satisfactorily implemented during the ERfKE I project. This EMP will be used as a guide for ERfKE II. The EMP was updated to reflect the proposed project by revising project description; project components; implementing arrangements; capacity of implementing agency; monitoring and reporting arrangements; EMP implementation costs; and consultation and disclosure. In addition to the generic EMP, site-specific environmental measures will be included in bidding documents for contractors by GBD. In Jordan, it is required that any construction work that is carried out should also comply with national regulations governing environment, public health and safety. The Bank was informed that Jordan is a member of FIDIC (Fédération Internationale Des Ingénieurs-Conseils) and the relevant clauses and sub-clauses will also be included in the bidding documents. Therefore, any projects with planned civil works will apply not only the project EMP, but also the FIDIC (International Federation of Consulting Engineers) guidelines as conditions of contract for construction. These guidelines include clauses and stipulations for the contractor which relate not only to environmental protection, but also to social issues relating to staff and labor (wages, conditions of labor, laws, working hours, health and safety, etc.). Furthermore, the Architectural and Engineering Guidelines dated September 2008 that was undertaken by ERfKE II will be applied during implementation of all civil works relating to Component 5. These guidelines contain the required specifications for school design, including number of classrooms, sanitation facilities, drinking and water fountains required depending on the students. They also define the ratios of students-classroom, classrooms-sanitation facilities and students-drinking water fountains, in both urban and rural schools. Accordingly, standard school designs have been prepared by MoE - Directorate of Buildings and International Projects (MoE-DBIP) for ERfKE II that has taken all of the above into consideration.

69. Monitoring and Reporting: Effective implementation of the EMP and required clauses from FIDIC will ensure incorporation of environmental management measures during design and construction. However, it is essential that routine supervision of ongoing civil works is carried out by the implementing agency (through consultants) and compliance with environmental measures should be recorded and included in progress reports that are submitted to the Bank. As GBD is responsible for all civil works contracts under ERfKE II; it will ensure effective application of environmental and social measures (Environmental Management Plan and Land Acquisition Plan). It is therefore responsible for undertaking routine supervision of ongoing civil works. The GBD will apply the EMP as well as relevant FIDIC clauses and sub-clauses during implementation. The Bank has prepared a monitoring checklist to help GBD with supervision and monitoring, and for providing input into the monthly progress reports that it will submit to the DCU. In the monthly progress reports, it will include details such as water supply and sanitation, drinking water, waste disposal, physical cultural resources and issues encountered in implementation of the EMP, if any. The DCU will use this information to assess compliance with environmental and social measures; and include a section on EMP progress update in reports that it will submit to the Bank on a bi-annual basis.

70. Disclosure of Safeguards Reports: The safeguard policies on Environmental Assessment (OP 4.01) and Involuntary Resettlement (OP 4.12) are triggered and accordingly, an Environmental Management Plan (EMP) and Land Acquisition Plan (LAP) have been prepared by MoE. Both documents have been translated into Arabic. Both English and Arabic versions are disclosed on specific government websites and other relevant places in-country, including project governorate offices. These documents have also been disclosed at the World Bank Infoshop.

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E. Safeguard Policies

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment (OP/BP 4.01) [X] [ ]

Natural Habitats (OP/BP 4.04) [ ] [X]

Pest Management (OP 4.09) [ ] [X]

Physical Cultural Resources (OP/BP 4.11) [ ] [X]

Involuntary Resettlement (OP/BP 4.12) [X] [ ]

Indigenous Peoples (OP/BP 4.10) [ ] [X]

Forests (OP/BP 4.36) [ ] [X]

Safety of Dams (OP/BP 4.37) [ ] [X]

Projects in Disputed Areas (OP/BP 7.60)* [ ] [X]

Projects on International Waterways (OP/BP 7.50) [ ] [X]

F. Policy Exceptions and Readiness

71. The project is consistent with Bank policy and no exceptions are requested. Most of the applicable readiness criteria, detailed component activities, budgets, output and outcome indicators, implementation plan and schedule, procurement plan, and FM plan have been finalized during appraisal and will be included in the draft Operational Manual which will be finalized before loan effectiveness. Bidding documents for goods and civil works, as well as terms of reference for consultants’ services to be financed in the first year of project implementation, will be ready by loan effectiveness.

* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on

the disputed areas

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Annex 1: Country and Sector or Program Background

JORDAN: Education Reform for the Knowledge Economy II 1. The Hashemite Kingdom of Jordan averaged 7.7 percent economic growth per year between 2004 and 2007, and an estimated 5.5 percent in 2008, indicating a positive per capita growth [US$1,700 (2006)]. This growth has been broad-based, but mainly supported by export led growth and a construction boom fueled by increasing real estate prices. This growth has been underpinned by structural reforms and fiscal consolidation. The IMF estimates that the economic growth rate will eventually slow down and further efforts to reduce the external and fiscal debt should be pursued. Performance has been good in terms of human development and the incidence of poverty declined from 21 percent to 14 percent over the 1997-2003 period. However, economic growth coexists with one of the highest population growth rates in the world - about 2.7 percent with a population of 5.4 million people, and a demographic profile in which 70 percent of the population are below the age of 30. As a result, more than 60,000 citizens are entering the labor market every year, posing a major challenge for the Government and society at large. In addition, an estimated 500,000 displaced Iraqis entered Jordan during 2006-2007.

2. Jordan has a 40 percent labor market participation rate, one of the lowest in the region (67 percent of males and 14 percent of females), totaling a labor force of 1.4 million. Government employment makes up 30 percent. Half of the remaining employment is dominated by micro enterprises (less than 4 persons) representing about 2/3 of all businesses in the private sector. High unemployment at 14 percent, particularly among the young, poses a significant challenge (1/3 of the unemployed are under 24 years old). Concurrently, migrant and foreign labor estimates range between 300,000 and 700,000, or between 20-30 percent of the total labor force. In addition, the issue of “expatriate” workers represents one of the most controversial and recurrent political issues facing the government in its efforts to create more jobs for Jordanians and increase productivity to further support the diversification and growth of the economy.

3. Education indicators have improved consistently since the mid-nineties. The illiteracy rate is 8.9 percent, the third lowest illiteracy rate in the Arab world; the primary gross enrolment ratio has increased from 71 percent in 1994 to the 98.2 percent in 2006; the transition rate to secondary school has increased from 63 percent to 79 percent over the same period; and the transition rate to higher education has varied between 79 percent and 85 percent of secondary school graduates over the past five years. Jordan also ensures a high level of gender parity in access to basic services. As a result, it has achieved 90 percent parity in literacy, full parity in primary and secondary enrollment, and increased life expectancy for both sexes.

4. A substantial education reform program is in place. Building on the output from the 2002 Vision Forum for the Future of Education in Jordan, the Government of Jordan (GoJ) entered into an agreement in 2003 with the World Bank and other partners to initiate and implement the first phase of a reform program entitled Education Reform for the Knowledge Economy (ERfKE I) having the development objective “to support the Government of Jordan to transform the education system at the early childhood, basic and secondary levels to produce graduates with the skills necessary for the knowledge economy.” ERfKE I was designed and implemented under a sectoral approach whereby support and financing were provided by 12 different donors, including the World Bank, under the auspices of the Ministry of Education (MoE) which ensures that the donors’ operations converge towards the set development objective. The ERfKE I project, currently in its final year of implementation, has provided significant outputs as a basis for the evaluation of the education system. These outputs include: (i) formulating a strategic development plan for the sector with clear goals and objectives; (ii) re-defining the learning outcomes for all subjects from grades 1 to 12; (iii) developing new curriculum, teacher guides, learning resource materials and learning assessment tools for all subjects; (iv) delivering intensive teacher training; (v) equipping schools with ICT infrastructure and related e-learning resource materials; (vi) building new

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schools; and (vii) initiating quantitative and qualitative development of the early childhood development sector.

Main Sector Issues

5. Delivery of KG, basic and secondary schooling is split between four providers: MoE, other government ministries such as the Ministry of Defense; United Nations Relief and Works Agency for Palestinian refugees in the Near East (UNRWA); and private providers. The private sector dominates the provision of kindergarten education: in 2007/08 it accounted for 90 percent of student enrolment. Four years previously, it enrolled 95 percent of the total. This substantive shift is due to the rapid expansion of MoE provision, whereby enrolment in MoE kindergartens has more than doubled over this period. The government is the main provider of both basic and secondary education: 72 percent of basic students, and 90 percent of secondary students, were enrolled in government schools in 2007/08. These shares are slightly lower than they were four years ago, reflecting the fact that growth in private sector students has outpaced public student growth in both basic (24 percent versus 3 percent) and secondary (21 percent versus 7 percent) cycles.

6. The education system made significant advances during in the first half of this decade. Net enrolment in basic education increased from 89 percent in 2000 to 96.5 percent in 2005/6. Transition rates to secondary education have increased from 63 percent to 79 percent in the same period, increasing pressure on the secondary schooling institutional infrastructure substantially. Gross enrolment for the KG2 age group has risen from 47 percent to over 51 percent at present. The number of privately owned and operated schools has increased steadily, by 12.3 percent in pre-primary, 19 percent in basic and 17 percent in secondary, but remains below 10 percent of total enrolment in basic and secondary education. In the years between 1999 and 2007, Jordan made significant gains on international surveys of student achievement, with a particularly impressive gain of almost 30 points on the science portion of the Trends in International Mathematics and Science Study (TIMSS) over that period. While these gains cannot be attributed solely to the impact of the investment in the ERfKE program, they nonetheless suggest that Jordan has established significant positive momentum in student performance which continued investment should support.

7. Despite this positive progress, the education system still needs to continue to accelerate the pace of reform of basic and secondary education in order to support the Government’s aspirations for employment creation, stimulation of economic diversification, income generation and reduction of poverty through increased regional and global competitiveness. While very significant strides have been made with regard to developing and implementing systemic reforms of the curriculum, learning materials, learning assessment, and introduction of information and communication technologies into both learning and management, there is not sufficient evidence yet of impact of many of the most important innovations at the level of the school and the classroom. In addition, the institutional framework and capacity to manage the reforms needs to be further strengthened to sustain the gains made in ERfKE I, and embed the reforms into the system at every level down to the school and classroom. Measures taken in governance and decentralization need to be consolidated by further clarifying the roles and responsibilities of various actors and by enhancing the capacity of the field directorates to effectively support the decentralization process. Furthermore, taking into account the initiatives that are on-going at the field directorate and the school level to modernize the overall administration and establish a performance-based management system, there is a need to increase accountability in school management, to empower communities, and to create more effective partnerships with civil society.

8. In February 2008, workshops were held with MoE and all ERfKE I partners, to identify lessons learned from ERfKE I, and identify themes, key areas of intervention, and expected outcomes that would lead to achievement of the mission statement outlined in the Vision Forum. Key lessons learned include: (i) an imperative to focus on the school as the locus of change while continuing to support the enhancement of institutional framework and capacity building at the central and field directorate level; (ii)

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the need for a focus on teachers as the key actors in change; (iii) the need for the ministry to serve as a facilitator of change as opposed to being an implementer of change, which was its predominant role during the first phase of the reform; (iv) the need to direct capacity building at the decentralized level; and (v) the adoption of a more participatory approach as opposed to a directive approach. This process identified the following issues that specifically warrant closer attention during the next phase of the reform.

9. System Management: While efforts under ERfKE I focused heavily on management at the central level, the challenge in the next phase will be to move down to the school level in order to ensure that learning gains are achieved at the level of the school and the classroom. Greater school autonomy is required so that schools have the flexibility to implement pedagogic reforms, effectively manage teachers and teacher professional development and respond to the specific needs of their communities. One significant element in ERfKE I was a series of pilot initiatives, focusing on school and district level reform, school development units and various approaches to teacher professional networks. One project started with an intensive program of self-assessment by teachers, principals and managers, and led on to development of school and district development plans and implementation programs. Initial evaluations suggest high levels of teacher, parent and pupil engagement in setting targets and developing strategies to reach them. The Ministry managed a series of pilots of School Development Units as an alternative approach to school level reform, and this has strengthened the commitment in the Ministry to make decentralization of the reform to the level of the district and the school a central pillar of ERfKE II.

10. Decentralization: The review of ERfKE I progress and challenges carried out by the MoE, key stakeholders and the Bank in February 2008 also assessed the extent to which the ministry, as currently structured and functioning, is positioned to support the process of devolving authority to the level of the school. There was early consensus that the present management system, established as it was for a highly centralized system, had proven helpful to implement the ERfKE I reforms across the system, but should now be transformed to address reallocation of responsibilities and accountabilities to facilitate decision-making at lower levels of the system. It was also recognized that the management system needs significantly greater policy and strategic planning capacity, including better institutionalized monitoring and evaluation. It was agreed that the second phase of this reform should be shaped around a principle of school and district focus, so that reforms at the central level will be premised on the changing role that the central ministry will play in a system that is focused on school and district level delivery of learning programs to build the kind of participatory, outcome-based and student-centered learning that is required.

11. Quality: Jordan has now participated in three rounds of the Trends in International Mathematics and Science Study (TIMSS) and one round of the Programme for International Student Assessment (PISA). In both cases, Jordan performed well in comparison with other countries in the Region, but well below many countries at comparable income and education expenditure levels, and at or below the international averages. As part of ERfKE I, MoE introduced a national assessment program using a PISA-like approach but focused specifically on the knowledge economy aspects of the national curriculum. It also conducted a series of more “traditional” national assessments of learning achievement in key subjects. Establishing and implementing these systems is a major stride forward in its own right and a significant achievement of the ERfKE I reform. However, these assessments have revealed that the majority of students still perform below desired achievement levels and that a significant number of students drop out of the system. The overall completion rate of secondary education is about 70 percent, with almost 30 percent of students dropping out after the 10th grade. The monitoring and evaluation processes established under ERfKE I are now beginning to relate this performance to a range of different education and non education variables to determine what mix of inputs and processes has yielded the greatest improvements in terms of quality learning outcomes. Quality remains a significant challenge for Jordan, but some mechanisms have been put in place to permit more systematic and rigorous evaluation of which investments are most likely to yield impact on learning outcomes.

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12. Teacher Policy: Teachers constitute the most important and heaviest cost item in the education process. As attested by a recent OECD report, “of those variables which are potentially open to policy influence, factors to do with teachers and teaching are the most important influences on student learning. In particular, the broad consensus is that ‘teacher quality’ is the single most important school variable influencing student achievement.” Teacher salaries consume 75 percent of the education budget. Almost all teachers are in possession of the required academic qualifications (over 70 percent have a bachelors degree or higher), but fewer than half have certification in teaching methods and practice. The current student teacher ratios do not suggest a significant shortage of teachers. Teachers were identified as a key target group in ERfKE I, but mainly for in-service training and development of skills, especially those related to ICT. Pre-service teacher education, which is largely provided by the universities, was not the focus of a significant initiative in the program, and the focus was on aligning content of pre-service education of teachers with the new knowledge economy-oriented curriculum and pedagogy. Important teacher policy reforms were introduced regarding a national framework of teacher standards, and a new graduated salary scale was introduced with incentives for completion of training courses.

13. One issue that emerged during the implementation of ERfKE I was the significant additional burden that the reform process placed on teachers, from additional training to the much more demanding assessment and management processes that accompanied the implementation of the reform. This led the ministry to conduct a number of surveys of teacher perspectives, and more recently of the extent to which the new pedagogical approaches and learning materials are being used in classrooms. This work indicates that while teachers are showing an increasing understanding of the purpose and nature of the ERfKE reform, there is still a relatively low level of actual use of the new methods and approaches in the classroom, and the new learning materials are often used in a conventional teaching approach. Teacher morale, moreover, has not improved significantly. Teachers in Jordan are not recruited by the MoE, but assigned on the basis of examination scores by the Public Service Bureau. With the exception of early grade primary teachers, most teachers enter the classroom without any systematic training in pedagogical approaches. Many have to wait four or more years between graduation and assignment to a teaching post, even subject knowledge is often in need of refreshment and updating. The teacher utilization study undertaken as part of the preparation process for ERfKE II illustrated how teacher recruitment, selection, induction, deployment, utilization, compensation and incentives require further attention if the teacher corps is to play the role that is required of it in changing the teaching and learning practices in classrooms throughout Jordan.

14. Access and Equity: As indicated above, progress has been made in reducing gender differences in access to basic education, and to a lesser extent in secondary education. Subject specialization in secondary and vocational education still tends to reflect traditional gender roles. Completion rates and transition rates to tertiary education are highly correlated with family income: three times as many students in university come from the upper two income quintiles. ERfKE I included a number of measures to address gender differences in education administration, but most reforms have focused on the management and leadership levels, with the result that gender gaps have closed only marginally. Socioeconomic factors still remain the most important factors influencing equity in access and performance, but it is only with the increasing focus on M&E that it is now becoming possible to more systematically extract the factors that are more directly amenable to education interventions, and this creates the possibility for a more targeted approach to addressing equity issues in the next phase of the reform. Initial steps taken under ERfKE I toward more systematic inclusion of learners with special needs indicate the need for a more systematic and sustained approach.

15. Under ERfKE I, with financing from the World Bank and multiple partners, 214 new schools were constructed, and extensions for 612 schools were completed. In addition, 64 schools underwent urgent rehabilitation for safety reasons. During the preparation of ERfKE I, the extent and nature of the present and future demand for expansion of physical accommodation was an issue of considerable debate,

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and the scale of school construction was reduced on the basis of a study undertaken during preparation. The purpose of most of the new construction was intended to be reduction of the number of rented facilities, and replacing unsafe schools rather than the establishment of new institutions. A number of demographic developments have required an update of this approach. The implementation of ERfKE I was accompanied by a shift from private to public schools, and the influx of displaced Iraqis have placed a significant pressure on facilities in some areas. The number of rented facilities has actually increased since 2000. However, initial evidence suggests that school utilization rates remain uneven, with many schools underutilized and little progress in the consolidation of small rural schools. As part of the series of preparation studies, the MoE has commissioned a study of the current and future demand for school facilities, and provides good systematic data to target investments that address utilization, access and equity problems.

16. ECE (Early Childhood Education): Early childhood education emerged as an area in which significant successes have been achieved during the implementation of ERfKE I. The program has already surpassed its original target of attaining a 51 percent gross enrolment rate of KG2 age children. Significant achievements in teacher training, curriculum development, teacher professional development, parent involvement and standards setting have helped make this one of the more dynamic elements of Jordan’s education system. The private sector is responsible for some 90 percent of ECE places, and improvements in regulation and guidance regarding standards have helped this subsector mature as it expands. Yet significant challenges remain. There is a growing demand for greater public investment in KG1 level provision. The focus on government provision in remote areas under ERfKE I has helped to improve access for children in rural areas, but reliance on private providers in urban areas has left cohorts of children from poor urban communities with few opportunities for access. The need to deepen the reform in terms of quality and consolidate the gains achieved to date competes for resources with pressures to expand the system both horizontally, to include all KG2 age children, and vertically to reach down to younger age groups.

17. Technical, and Vocational Education and Training (TVET): Enrollment in secondary vocational education as a share of total secondary enrolment declined from 18 percent in 2000 to 12 percent in 2005, suggesting a critical demand side problem, at a time when the need for skills for the economic transformation that the Government envisages is increasing rapidly. With respect to linkages between education, skill development, and employment, the National Agenda identified an imperative to redefine and harmonize the program structures and outcomes from the MoE secondary vocational stream, the Vocational Training Corporation (VTC), and the Community Colleges administered by Al-Balqa’ Applied University (ABU). Initial steps have been taken in this direction through the work of the TVET Council and dialogue relating to the establishment of a National Qualifications Framework. Under ERfKE I, which initially excluded vocational schools as a component of the program, some rationalization of current programs offered in the MoE vocational schools has resulted in a reduction in the number of streams, and the beginning of alignment of these programs with the reform vision of ERfKE. However, these initiatives have largely involved tinkering with the existing mechanisms in isolation from the wider developments in technical and vocational training in other ministries. These reforms, which involve the MoL, and MoHESR, are still at a relatively early stage in their development. The commitment of the GoJ, however, to two Bank-financed projects supporting these ministries’ reform efforts attests to the Government’s vision of a more coherent, relevant and articulated approach to technical education and vocational training. This suggests the need for significant realignment of MoE vocational programs to be undertaken based on input from the employer community and deeper analysis of labor market information derived from Al Manar and similar initiatives, in a way that aligns them with the reforms initiated by the other two reform programs.

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Annex 2: Major Related Projects Financed by the Bank and/or other Agencies

JORDAN: Education Reform for the Knowledge Economy II 1. Related Bank Group Activities Higher Education Development Project (US$34.7 million); Approval Date: 02/29/2000; Status: Closed. The project objective is to initiate improvements in the quality, relevance and efficiency of Jordan's higher education, and to support the Kingdom's program to reform sector governance. Education Reform for Knowledge Economy I (US$120.0 million); IP: S; DO: S; Approval Date: 05/08/2003; Status: Under implementation. The Project objective is to transform the education system at the early childhood, basic and secondary levels to produce graduates with the skills necessary for the knowledge economy. Employer Driven Skills Development Project (US$7.5 million): IP: S; DO: S. Approval Date: 06/03/2008; Status: Under implementation. The Project objective is to realign policy formulation with E-TVET operational mechanisms through the development of employers’ participation in: (i) sector policy formulation; (ii) institutional development and reform; and (iii) skill development program design and delivery. Social Protection Enhancement Project (US$4 million): IP: MS; DO: MS. Approval Date: 06/03/2008; Status: Under implementation. The project objective is to improve the management and operations of the cash social assistance and to improve access to and quality of social care services. Higher Education for the Knowledge Economy (US$25 million). Status: Under Preparation. The Government’s HERfKE sector program aims to support the development of a higher education system that is financially and institutionally sustainable, with incentives to improve the equity, quality, relevance and student life/culture for tertiary education students in Jordan. 2. Other Donors in the ERfKE I and II Projects Islamic Bank, US$23 million and European Investment Bank, US$45 million, support: Component 3 of ERfKE I (construction of new schools). Arab Fund, US$34 million and Kreditantalt fur Wiederaufabu (KfW), US$11 million, support: Component 3 of ERfKE I (construction and equipment of new schools). CIDA (Trust Fund), US$4.2 million, supports: The implementation of Components 1 &2 of ERfKE I and the preparation of ERfKE II. CIDA US$20 million, supports: Component 1 (Result-based management, district development program) and Component 2 (Item Banking, ICT infra structure and education, TA for curriculum development) for ERfKE I. USAID, US$75 million, supports: Component 4 (i) building capacity of ECE trainers, supervisors and teachers); (ii) refurbishment of ECE classroom; (iii) enhancing the national interactive ECE curriculum; (iv) parent community participation; Component 2: Development of curriculum and learning assessment (MIS), professional development, learning resources, school to career and ICT (Data Center) of ERfKE I.

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JICA, US$1.5 million, supports: Component 2, Science Education Enhancement and Development (SEED). DFiD, US$1.8 million, supports: Component 1, Organizational change (decentralization). EU, US$45 million, supports: Budget to Jordan’s Education Reform. WEF US$27 million, support to Jordan Education Initiative to pioneer ERfKE reforms in Discovery Schools. 3. Other Donor Activities in the Labor Sector Canadian International Development Agency (CIDA) (CDN$3.0 million): CIDA has been involved primarily in the education sector of Jordan. Main activities focus on developing an electronic employment service system, including a web-based Professional Career Counseling system. These systems will link demand with supply, and help the higher education sector respond to market demands and development of labor market tools with a capacity building program focus. The activities generated under this program link with the proposed Project’s E-TVET and VTC components. The Project is running from 2004 to 2008. Canadian CIDA has recently signed a new Project totaling US$6.0 million in support of the TEF Development (Component 3) and the MoL restructuring. Japan International Cooperation Agency (JICA) (US$3.0 million): JICA is focusing on strengthening the training management capacity of the VTC, with the objective of establishing autonomy, decentralization, and management/administration strengthening. The Project will develop the above tools and new curriculum through pilot model centers. The duration is from 2006 to 2010. The European Commission (EC) (Euro 382,358): The Project will focus on improving the vocational education in the MoE, by improving teacher training, capacity building for vocational directorate staff, and inclusion of vocational education for students with special needs. The Project timeframe is from 2007 to 2008. In addition, the EC is providing technical assistance to the MoL in view of strengthening organizational restructuring. The European Training Foundation (ETF): ETF has been contracted by the EC to undertake feasibility assessments for E-TVET orientation, program support, technical assistance to the MoL, support for a human resources information system (observatory function development), and the development of a national qualification framework. The implementation timeframe is from 2007 to 2009 for an estimated Euro 515,000. USAID: USAID is financing the Sustainable Achievement of Business Expansion and Quality (SABEQ) to support the reform process by transforming the VTC system into model vocational education training centers using internationally recognized standards, and building the regional capacity of the MoL’s Regional Employment Offices. The Project is being implemented from 2007 to 2008 for an amount of US$786,000. International Labor Organization: The ILO has been closely involved in the development of a “decent workplace program” and development of a policy unit inside the MoL.

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Annex 3: Results Framework and Monitoring

JORDAN: Education Reform for the Knowledge Economy II

Results Framework

PDO Project Outcome Indicators Use of Project Outcome Information

To provide students in pre-tertiary education institutions in Jordan with increased levels of skills to participate in the knowledge economy.

Increase in scores on national assessments aligned with knowledge economy skills (Target: an average increase of 3 score points for Math, Science and Arabic) Increase in enrollment rates. (Target: maintain current high NER (97.6%) for Basic Cycle, and increase NER to 63% for the Secondary Cycle.

These indicators will be used to monitor overall progress under ERfKE II and to inform general project implementation and refinement. Performance on these indicators will be reviewed through supervision missions and through discussions with GOJ and other stakeholders.

Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring

Establishment of a National School-based Development System: National education reform is being delivered through local school development processes focused on improving student learning outcomes and supported by community, field directorates, and the central administration.

Development and implementation of enabling policies, guidelines, and procedures.

Number/percentage of schools that are implementing improvement plans. (Target: 100%)

A single School Evaluation Instrument, focused on ERfKE outcomes, agreed and being used for school self-evaluation and for public and professional accountability.

Stakeholder views on extent to which decision-making authority and associated resources are being allocated and utilized to enable implementation of school improvement plans.

Stakeholder views on extent to which mechanisms for professional and public accountability, linked to the school improvement cycle, have been established and are functioning.

School principals’ and teachers’ views on quality of field directorate and central administration support toward achievement of school development plans.

External stakeholder assessment of graduate knowledge economy skills.

These indicators will be used to monitor progress on the National School-based Development System component of ERfKE II and to inform project implementation and refinement specifically in relation to this component. Data will be disaggregated by gender and location with a strong focus on equity. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GoJ and other stakeholders.

Policy, Planning, and Organizational Development: Organizational realignment has taken place in order to support

Review and realignment of mandate and responsibilities of MoE organizational structures relevant to the school improvement process.

Number of non-school staff participating

These indicators will be used to monitor progress on the Policy, Planning, & Organizational Development component of ERfKE II and to inform project implementation

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a school-based approach to improving the delivery of education services. Organizational effectiveness at all levels of the system has been improved by the adoption of a results-based approach to policy, planning, accountability, incentives, and M&E.

in ongoing professional development programs to support the delivery of the school improvement program. (Target: 1,100)

Review and development of mechanisms for professional and public accountability. (Target: 80 % of schools)

Stakeholder perceptions of relevance of M&E reports for informing policy and planning.

Stakeholder views on extent to which SIS/EMIS is producing data for continuous monitoring of the 32 key performance indicators.

and refinement specifically in relation to this component. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GOJ and other stakeholders.

Teaching & Learning Resource Development: Student learning outcomes relevant to the acquisition of knowledge economy skills have been improved through realigned curriculum, authentic assessment, appropriate teaching and learning resources, and interactive classroom practices.

Teacher policies revised to support application of national teacher standards.

Percentage of newly appointed teachers completing post-recruitment initial training. (Target: 80%)

Number/percentage of subjects by grade reviewed and fine-tuned to ensure alignment with knowledge economy skills. (Target: All subjects in all grades)

The present Tawjihi examination reviewed in the context of the ERfKE II curriculum and knowledge economy skills.

The content and design of NAfKE is reviewed for overall technical soundness and alignment with the ERfKE curriculum, and arrangements put in place for any necessary revisions.

Extent of e-Learning/ICT utilization in the teaching and learning process (by subject, grade) as revealed by nationally representative classroom observation studies. (Target: increase from 67% to 73%)

These indicators will be used to monitor progress on the Teaching & Learning Resource Development component of ERfKE II and to inform project implementation and refinement specifically in relation to this component. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GoJ and other stakeholders.

Special Focus Program Development: Early Childhood Education: Access to quality early childhood education has been increased through further development of facilities, learning resources, and parental and community involvement.

Percentage of eligible children enrolled in KG. (Target: Increase from 51.8% to 60%)

Percentage of KG teachers/supervisors successfully completing prescribed training program for early childhood education. (Target: 100%)

Number of parents of KG students enrolled in volunteer programs.(Target: increase from 2,000 to 3,500)

These indicators will be used to monitor progress on the Early Childhood Education component of ERfKE II and to inform project implementation and refinement specifically in relation to this component. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GOJ and other stakeholders.

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Vocational Education:

Programs and resources have been rationalized and improved to establish a quality secondary-level program that is consistent with, and aligns to, demand-driven service provision in the technical and vocational sector and further education and training.

Percentage of programs aligned with vocational/technical guidelines/standards for curriculum, equipment, and facilities. Completion rates for vocational/technical programs. (Target: 100%)

Increase in employer satisfaction with the skills and abilities of labor market entrants holding vocational education certificates awarded by the MoE.

These indicators will be used to monitor progress on the Vocational Education component of ERfKE II and to inform project implementation and refinement specifically in relation to this component. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GoJ and other stakeholders.

Special Education: Access to quality education programs and services relevant to students with special needs has been increased.

Revision and approval of policies to support special education programs and services.

Number of teachers trained and qualified according to national standards for special education. (Target: 300 for teachers of gifted students; 300 teachers of disabled students)

Number of students enrolled in special education programs. (Target: 6,500 gifted students; 15,500 disabled students)

These indicators will be used to monitor progress on the Special Education component of ERfKE II and to inform project implementation and refinement specifically in relation to this component. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GoJ and other stakeholders.

Physical Learning Environment: School buildings are provided and maintained in a cost-effective manner so that more students have access to learning in safe and well-managed physical environments.

Number of students with access to learning in a safe and well-managed physical environment. (Target: Increase from 859,867 to 920,000)

Decrease in number of underutilized classrooms in all field directorates (Target: decrease by 20 schools)

Decrease in number of overcrowded classrooms in all field directorates. (Target: decrease by 20 schools)

Number of additional classrooms/lab spaces for science and ICT. (Target: 1,000 classrooms; 120 ICT Labs; 120 Science Labs)

Policies for continuous building maintenance in place.

These indicators will be used to monitor progress on the Physical Learning Environment component of ERfKE II and to inform project implementation and refinement specifically in relation to this component. The indicators will be reviewed through supervision missions and also used as focal points for discussion with GOJ and other stakeholders.

Arrangements for Results Monitoring

The program design provides for systematic processes for both internal and external M&E. Internal M&E will be undertaken as an integral element of the management system in place for the implementation by MoE teams of the program activities. The DCU will develop the monitoring and reporting tool building on experience gained with the ERfKE I “Integrated Plan”, and the DCU will consolidate monitoring reports for review by senior management and by the General Policy Steering Committee. This will be supported by evaluation studies commissioned by the MoE and undertaken either by staff within the units responsible for research and policy and strategic planning or by specially-hired consultants.

30

External M&E will be undertaken by the NCHRD on the basis of a plan that is currently under development. Building on lessons learned in ERfKE I, the program also provides for the further institutional development of the NCHRD, primarily through a partnership with a recognized international organization. The partnership and related institutional capacity-building and quality assurance will be supported through parallel financing provided by USAID.

The MoE EMIS system is now fully populated with data and functional, and this will provide core data on 32 key performance indicators determined by the MoE as critical to system development. The MoE will continue to update and refine the EMIS system. The M&E Framework will include provision for the stakeholder surveys that provide a basis for many of the key results areas, and these will be financed through donor support provided to the M&E component. The program provides for support for capacity-building both within the MoE, in the unit responsible for policy and strategic planning, and for the NCHRD, which will provide the external M&E.

31

Arr

ange

men

ts fo

r R

esul

ts M

onit

orin

g

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

1. 1

. Inc

reas

e in

sc

ores

on

natio

nal

asse

ssm

ents

alig

ned

with

kno

wle

dge

econ

omy

skill

s.

Gra

de 5

M

ath

29

Scie

nce

50

Ara

bic

60

Gra

de 9

M

ath

39

Scie

nce

46

Ara

bic

55

Gra

de 1

1 M

ath

29

Scie

nce

41

Ara

bic

61

An

aver

age

incr

ease

m

easu

red

from

the

base

line

year

of

1 sc

ore

poin

t fo

r M

ath,

Sc

ienc

e an

d A

rabi

c

An

aver

age

incr

ease

be

twee

n ye

ar 4

and

ye

ar 2

of

1 sc

ore

poin

ts f

or

Mat

h,

Scie

nce

and

Ara

bic

An

aver

age

incr

ease

be

twee

n ye

ar 6

and

ye

ar 4

of

1 sc

ore

poin

ts f

or

Mat

h,

Scie

nce

and

Ara

bic

Yr

2 an

d Y

r 4

and

Yr

6 (N

AfK

E

test

yea

rs)

NA

fKE

N

CH

RD

2. E

nrol

lmen

t rat

es:

mai

ntai

n cu

rren

t hi

gh n

et e

nrol

lmen

t ra

tes

Bas

ic C

ycle

, an

d in

crea

se N

ER

in

Seco

ndar

y C

ycle

Bas

ic c

ycle

2

(1-1

0)

97.6

%

Sec.

Cyc

le

61.5

%

97.8

%

61.6

%

98.0

%

61 8

%

98.2

%

62.0

%

98.4

%

62.3

%

98.6

%

62.6

%

98.8

%

63.0

%%

Ann

ual

EM

IS

Dir

ecto

rate

of

Edu

catio

nal

Plan

ning

(D

EP)

2 T

he b

asel

ine

for

the

enro

llmen

t rat

es b

ased

on

the

EM

IS d

ata

for

the

year

200

7/20

08

32

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

Inte

rmed

iate

Out

com

e In

dica

tors

1. E

stab

lishm

ent o

f a N

atio

nal S

choo

l-ba

sed

Dev

elop

men

t Sys

tem

1.1

Dev

elop

men

t an

d im

plem

enta

tion

of e

nabl

ing

polic

ies,

gu

idel

ines

, and

pr

oced

ures

.

Nil

Dra

ft

Fina

l

Ann

ual (

firs

t 2

yrs)

D

CU

Pro

gres

s R

epor

ts

DT

QS/

Sch

ool

and

Dir

ecto

rate

D

evel

opm

ent

Plan

ning

and

M

onito

ring

1.2

Num

ber/

perc

enta

ge

of s

choo

ls th

at a

re

impl

emen

ting

impr

ovem

ent p

lans

.

* N

il

Nil

207

28%

22

77

85%

3318

10

0%

Ann

ual

ER

fKE

Pr

ogre

ss

repo

rts

DT

QS

* E

xclu

ding

the

6 D

irec

tora

tes

pilo

ted

unde

r SJ

E P

roje

ct

1.3

A s

ingl

e Sc

hool

E

valu

atio

n In

stru

men

t, fo

cuse

d on

ER

fKE

out

com

es,

agre

ed a

nd b

eing

us

ed f

or s

choo

l sel

f-ev

alua

tion

and

for

publ

ic a

nd

prof

essi

onal

ac

coun

tabi

lity.

Nil

Dra

ft

Fina

l

A

nnua

l (fi

rst

2 yr

s)

DC

U P

rogr

ess

repo

rts

DT

QS/

Sch

ool

and

Dir

ecto

rate

D

evel

opm

ent

Plan

ning

M

onito

ring

and

33

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

1.4

Sta

keho

lder

vi

ews

on e

xten

t to

whi

ch d

ecis

ion-

mak

ing

auth

ority

and

as

soci

ated

res

ourc

es

are

bein

g al

loca

ted

and

utili

zed

to

enab

le

impl

emen

tatio

n of

sc

hool

impr

ovem

ent

plan

s.

Nil

Mid

Ter

m

Fina

l

Surv

ey

cond

ucte

d m

id-t

erm

&

Yr

6

Surv

ey o

f st

akeh

olde

r vi

ews

As

will

be

iden

tifie

d in

the

M&

E f

ram

ewor

k

1.5

Stak

ehol

der

view

s on

ext

ent t

o w

hich

mec

hani

sms

for

prof

essi

onal

and

pu

blic

ac

coun

tabi

lity,

lin

ked

to th

e sc

hool

im

prov

emen

t cyc

le,

have

bee

n es

tabl

ishe

d an

d ar

e fu

nctio

ning

.

Nil

Mid

Ter

m

Fina

l

Surv

ey

cond

ucte

d m

id-t

erm

&

Yr

6

Surv

ey o

f st

akeh

olde

r vi

ews

As

will

be

iden

tifie

d in

the

M&

E f

ram

ewor

k

34

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

1.6

Scho

ol

prin

cipa

ls’

and

teac

hers

’ vi

ews

on

qual

ity o

f fi

eld

dire

ctor

ate

and

cent

ral

adm

inis

trat

ion

supp

ort t

owar

d ac

hiev

emen

t of

scho

ol d

evel

opm

ent

plan

s.

Nil

Mid

Ter

m

Fi

nal

Surv

ey

cond

ucte

d m

id-t

erm

&

Yr

5

Surv

ey o

f st

akeh

olde

r vi

ews

As

will

be

iden

tifie

d in

the

M&

E f

ram

ewor

k

1.7

Ext

erna

l st

akeh

olde

r as

sess

men

t of

grad

uate

kno

wle

dge

econ

omy

skill

s.

Nil

Mid

Ter

m

Fina

l

Surv

ey

cond

ucte

d m

id-t

erm

&

Yr

6

Surv

ey o

f st

akeh

olde

r vi

ews

As

will

be

iden

tifie

d in

the

M&

E f

ram

ewor

k

2. P

olic

y, P

lann

ing

and

Org

aniz

atio

nal D

evel

opm

ent

2.1

Rev

iew

and

re

alig

nmen

t of

man

date

and

re

spon

sibi

litie

s of

M

oE o

rgan

izat

iona

l st

ruct

ures

rel

evan

t to

the

scho

ol

impr

ovem

ent

proc

ess.

Nil

Rev

iew

co

mpl

eted

R

ealig

nmen

t co

mpl

eted

Y

ear

1, Y

ear

6 M

oE R

epor

ts

Hum

an

Res

ourc

es

Dir

ecto

rate

(H

RD

)

2.2

Num

ber/

pe

rcen

tage

of

non-

scho

ol s

taff

Nil

100

20

0 20

0 20

0 20

0 20

0 A

nnua

l M

oE P

rogr

ess

repo

rts

DT

QS

35

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

part

icip

atin

g in

on

goin

g pr

ofes

sion

al

deve

lopm

ent

prog

ram

s to

sup

port

th

e de

liver

y of

the

scho

ol im

prov

emen

t pr

ogra

m. *

*

Thi

s in

clud

es D

irec

tora

tes’

sta

ff o

nly

2.3

Rev

iew

and

de

velo

pmen

t of

mec

hani

sms

for

prof

essi

onal

and

pu

blic

ac

coun

tabi

lity.

Nil

Rev

iew

co

mpl

eted

M

echa

nism

s de

velo

ped

20%

of

Sc

hool

s 50

% o

f sc

hool

s 70

% o

f Sc

hool

s 80

% o

f sc

hool

s A

nnua

l M

oE R

epor

ts

DT

QS/

Sch

ool

and

Dir

ecto

rate

D

evel

opm

ent

Plan

ning

M

onito

ring

and

2.4

Stak

ehol

der

perc

eptio

n on

ext

ent

to w

hich

im

plem

ente

d st

udie

s ar

e re

spon

sive

to th

e M

&E

fra

mew

ork

and

the

appr

oved

im

plem

enta

tion

plan

.

Nil

M

id-t

erm

re

view

Fi

nal

eval

uatio

n

Mid

-ter

m &

Y

ear

6

NC

HR

D &

M

oE

NC

HR

D/ M

&E

A

dvis

ory

Com

mitt

ee

2.5

Stak

ehol

der

perc

eptio

ns o

f re

leva

nce

of M

&E

re

port

s fo

r in

form

ing

Nil

Mid

Ter

m

Fina

l

Surv

ey

cond

ucte

d m

id-t

erm

&

Yr

6

Surv

ey o

f st

akeh

olde

r vi

ews

NC

HR

D/ M

&E

A

dvis

ory

Com

mitt

ee

36

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

polic

y an

d pl

anni

ng.

2.6

Ext

ent t

o w

hich

SI

S/E

MIS

is

prod

ucin

g da

ta f

or

cont

inuo

us

mon

itori

ng o

f th

e 32

ke

y pe

rfor

man

ce

indi

cato

rs.

10

indi

cato

rs

12

indi

cato

rs

20

In

dica

tors

32

Ind

icat

ors

Yrs

1, 3

and

6

Ext

erna

l as

sess

men

t of

EM

IS

Dir

ecto

rate

of

Edu

catio

nal

Plan

ning

(DE

P)

3. T

each

ing

and

Lea

rnin

g R

esou

rce

Dev

elop

men

t

3.1

Tea

cher

pol

icie

s re

vise

d to

sup

port

ap

plic

atio

n of

na

tiona

l tea

cher

st

anda

rds.

Nil

Polic

ies

iden

tifie

d

50%

targ

et

polic

ies

revi

sed

100%

of

targ

et

polic

ies

revi

sed

Yrs

1, 3

and

6

MoE

Rep

ort

DT

QS/

PSPS

3.2

Num

ber/

pe

rcen

tage

of

new

ly

appo

inte

d te

ache

rs

com

plet

ing

post

-re

crui

tmen

t ini

tial

trai

ning

in E

TC

.

Nil

6%

30%

50

%

60%

70

%

80%

A

nnua

l M

oE R

epor

ts

DT

QS/

ET

C

3.3

Num

ber/

pe

rcen

tage

of

new

te

ache

rs a

ppoi

nted

us

ing

a co

mpe

tenc

y-ba

sed

mod

el.

Nil

6 %

30

%

50%

60

%

70%

80

%

Ann

ual

MoE

Rep

orts

D

TQ

S/E

TC

37

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

3.4

Num

ber/

pe

rcen

tage

of

subj

ects

by

grad

e re

view

ed a

nd f

ine-

tune

d to

ens

ure

alig

nmen

t with

kn

owle

dge

econ

omy

skill

s.

Nil

Gen

eral

fr

ame

wor

k kg

-12

revi

ewed

an

d fi

ne-

tune

d

All

subj

ects

fo

r gr

ades

1-

3 re

view

ed

and

fine

-tu

ned

All

subj

ects

fo

r gr

ades

4-

8 re

view

ed

and

fine

-tu

ned

All

subj

ects

fo

r gr

ades

9-

10

revi

ewed

an

d fi

ne-

tune

d

All

subj

ects

fo

r gr

ades

11

-12

revi

ewed

an

d fi

ne-

tune

d

Y

rs 1

, 3 a

nd

5 M

oE R

epor

ts

DC

T

3.5

Taw

jihi

exam

inat

ions

re

view

ed a

nd

arra

ngem

ents

put

in

plac

e fo

r ha

rmon

izat

ion

with

th

e go

als

of th

e E

RfK

E c

urri

culu

m

Nil

Ext

ent o

f Pr

ogre

ss a

t m

id-t

erm

H

arm

oniz

ed

exam

inat

ions

in

pac

e

Mid

-ter

m

and

Yr

6 M

oE r

epor

ts

Dir

ecto

rate

of

Exa

min

atio

n an

d T

estin

g (D

ET

)

3.6

Ext

ent o

f e-

Lea

rnin

g/IC

T

utili

zatio

n in

the

teac

hing

and

le

arni

ng p

roce

ss (

by

subj

ect,

grad

e) a

s re

veal

ed b

y na

tiona

lly

repr

esen

tativ

e cl

assr

oom

ob

serv

atio

n st

udie

s.

Perc

enta

ge

of

clas

sroo

m

usag

e of

IC

T in

av

erag

e is

67

%

70%

.

73

%

Mid

-ter

m

and

Yr

5

Cla

ssro

om

Obs

erva

tion

Stud

ies

As

will

be

iden

tifie

d in

the

M&

E f

ram

ewor

k

38

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

3.7

Num

ber/

pe

rcen

tage

of

scho

ols/

cla

ssro

oms

mee

ting

basi

c st

anda

rds

for

lear

ning

tool

s an

d re

sour

ces.

TB

D

Ann

ual

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Dir

ecto

rate

of

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catio

nal

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ning

/EM

IS

3.7

The

con

tent

and

de

sign

of

NA

fKE

is

revi

ewed

for

ove

rall

tech

nica

l sou

ndne

ss

and

alig

nmen

t with

th

e E

RfK

E

curr

icul

um, a

nd

arra

ngem

ents

put

in

plac

e fo

r an

y ne

cess

ary

revi

sion

s.

Non

e

Rev

iew

co

mpl

eted

, re

visi

ons

in

plac

e

Mid

-ter

m

Stud

y co

mm

issi

oned

N

CH

RD

4. E

arly

Chi

ldho

od E

duca

tion

4.1

Num

ber/

pe

rcen

tage

of

elig

ible

chi

ldre

n en

rolle

d in

KG

2 in

th

e al

l aut

hori

ties.

51.8

%

54%

55

%

57%

58

%

59%

60

%

Ann

ual

EM

IS

Dir

ecto

rate

of

Edu

catio

nal

Plan

ning

/EM

IS

4.2

Num

ber/

pe

rcen

tage

of

KG

te

ache

rs/s

uper

viso

rs

succ

essf

ully

93%

94

%

96%

97

%

98%

99

%

100%

A

nnua

l M

oE R

epor

ts

DT

QS

39

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

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2 Y

R3

YR

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R5

YR

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eque

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and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

com

plet

ing

pres

crib

ed tr

aini

ng

prog

ram

for

ear

ly

child

hood

edu

catio

n.

(Nat

iona

l C

urri

cula

/Wor

king

w

ith y

oung

chi

ldre

n)

4.3

Num

ber/

pe

rcen

tage

of

pare

nts

of K

G s

tude

nts

enro

lled

in v

olun

teer

pr

ogra

ms.

2000

22

00

2800

30

00

3200

33

00

3500

A

nnua

l M

oE R

epor

ts

Gen

eral

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duca

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Dir

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rate

(GE

D)

4.4

*Num

ber/

perc

enta

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of K

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lass

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s th

at m

eet M

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qual

ity a

ssur

ance

st

anda

rds.

TB

D

Ann

ual

EM

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Dir

ecto

rate

of

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catio

nal

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ning

/EM

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Qua

lity

Ass

uran

ce s

tand

ards

are

bei

ng d

evel

oped

, exp

ecte

d to

be

com

plet

ed in

Oct

ober

200

9

5. V

ocat

iona

l Edu

cati

on

5.1

Num

ber/

pe

rcen

tage

of

prog

ram

s al

igne

d w

ith v

ocat

iona

l/ te

chni

cal g

uide

lines

/ st

anda

rds

for

curr

icul

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equi

pmen

t, an

d

Nil

50%

of

prog

ram

s at

m

id-t

erm

100%

of

prog

ram

s

Mid

-ter

m

and

Yr

5 In

depe

nden

t R

evie

w

Voc

atio

nal

Edu

catio

n D

irec

tora

te(V

ED

)

40

Tar

get V

alue

s D

ata

Col

lect

ion

and

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orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

faci

litie

s.

5.2

Com

plet

ion

rate

s fo

r vo

catio

nal/t

echn

ical

pr

ogra

ms.

A

ve n

ow

50

% o

f pr

ogra

ms

100%

of

prog

ram

s A

nnua

l M

oE R

epor

ts

Voc

atio

nal

Edu

catio

n D

irec

tora

te(V

ED

)

5.3

Incr

ease

in

empl

oyer

sa

tisfa

ctio

n w

ith th

e sk

ills

and

abili

ties

of

labo

r m

arke

t ent

rant

s ho

ldin

g vo

catio

nal

educ

atio

n ce

rtif

icat

es

awar

ded

by th

e M

oE.

Bas

e lin

e su

rvey

10%

in

crea

se in

ov

eral

l sa

tisfa

ctio

n

20%

in

crea

se in

ov

eral

l sa

tisfa

ctio

n

Bas

elin

e,

Mid

-ter

m

and

Yr.

6

Em

ploy

er

Surv

eys

As

will

be

iden

tifie

d in

the

M&

E f

ram

ewor

k

6. S

peci

al E

duca

tion

6.1

Rev

isio

n an

d ap

prov

al o

f po

licie

s to

sup

port

spe

cial

ed

ucat

ion

prog

ram

s an

d se

rvic

es.

Nil

Polic

y fr

amew

ork

com

plet

ed

Po

licie

s ad

opte

d

Po

licie

s im

plem

ente

d Y

rs 1

, 3 a

nd

6 M

oE r

epor

ts

Dir

ecto

rate

of

Spec

ial

Edu

catio

n (D

SE)

Nil

teac

hers

for

G

St.

50

50

50

50

50

50

6.2

Num

ber/

pe

rcen

tage

of

teac

hers

trai

ned

and

qual

ifie

d ac

cord

ing

to n

atio

nal s

tand

ards

fo

r:

- G

ifte

d st

uden

ts

- D

isab

led

stud

ents

Nil

Tea

cher

s fo

r D

St.

50

50

50

50

50

50

Ann

ual

EM

IS

Dir

ecto

rate

of

Spec

ial

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catio

n (D

SE)

41

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

3875

G. S

t.

4000

45

00

5000

55

00

6000

65

00

6.3

Num

ber

of

stud

ents

enr

olle

d in

sp

ecia

l edu

catio

n pr

ogra

ms.

-

Gif

ted

stud

ents

-

Dis

able

d st

uden

ts

1389

4 D

. St

. 14

194

1449

4 14

794

1509

4 15

394

1550

0

Ann

ual

EM

IS

Dir

ecto

rate

of

Spec

ial

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catio

n (D

SE)

3875

gi

ft.s

t.

4000

45

00

5000

55

00

6000

65

00

6.4

Num

ber

of

spec

ial e

duca

tion

stud

ents

with

acc

ess

to s

ervi

ces

rele

vant

to

thei

r in

divi

dual

ne

eds.

-

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ted

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-

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ial e

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238

dis.

st.

(with

whe

el

chai

r an

d st

. with

he

arin

g ai

ds)

348

458

568

678

788

850

Ann

ual

EM

IS

Dir

ecto

rate

of

Spec

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catio

n (D

SE)

Phy

sica

l Lea

rnin

g E

nvir

onm

ents

7.1

Num

ber/

perc

enta

ge

of s

tude

nts

with

ac

cess

to le

arni

ng in

a

safe

and

wel

l-m

anag

ed p

hysi

cal

envi

ronm

ent.

(MoE

sc

hool

s).

8598

67

8718

67

8838

67

8958

67

9078

67

9198

67

9200

000

Ann

ual

EM

IS

Dir

ecto

rate

of

Edu

catio

nal

Plan

ning

/EM

IS

7.2

Dec

reas

e in

nu

mbe

r/pe

rcen

tage

of

und

erut

ilize

d sc

hool

s in

all

fiel

d di

rect

orat

es.

Nil

2 sc

hool

s

8 sc

hool

s 4

scho

ols

4 sc

hool

s 4

scho

ols

2 sc

hool

s A

nnua

l E

MIS

D

irec

tora

te o

f E

duca

tiona

l Pl

anni

ng/E

MIS

7.3

Dec

reas

e in

N

il 2

scho

ols

4 sc

hool

s 4

scho

ols

4 sc

hool

s 4

scho

ols

2 sc

hool

s A

nnua

l E

MIS

D

irec

tora

te o

f

42

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

orti

ng

Proj

ect O

utco

me

Indi

cato

rs

Bas

elin

e Y

R1

YR

2 Y

R3

YR

4 Y

R5

YR

6 Fr

eque

ncy

and

Rep

orts

Dat

a C

olle

ctio

n In

stru

men

ts

Res

pons

ibili

ty

for

Dat

a C

olle

ctio

n

num

ber/

perc

enta

ge

of o

verc

row

ded

scho

ols

in a

ll fi

eld

dire

ctor

ates

.

Edu

catio

nal

Plan

ning

/EM

IS

Nil

200

Cla

ssro

oms

200

Cla

ssro

oms

200

Cla

ssro

oms

200

Cla

ssro

oms

200

Cla

ssro

oms

Nil

30 I

CT

L

abs

30

IC

T L

abs

30 I

CT

L

abs

30 I

CT

L

abs

30 I

CT

L

abs

7.4

Num

ber

of

addi

tiona

l cl

assr

oom

s/la

b sp

aces

for

sci

ence

an

d IC

T.

N

il 30

Sc.

Lab

s 30

Sc.

Lab

s 30

Sc.

Lab

s 30

Sc.

Lab

s 30

Sc.

Lab

s

Ann

ual

EM

IS

Dir

ecto

rate

of

Edu

catio

nal

Plan

ning

/EM

IS

7.5

Polic

ies

for

cont

inuo

us b

uild

ing

mai

nten

ance

in

plac

e.

Nil

Polic

ies

in

Plac

e

Polic

ies

revi

ewed

Yr1

and

m

id-t

erm

M

oE r

epor

ts

Dir

ecto

rate

of

Bui

ldin

g an

d In

tern

atio

nal

Proj

ect (

DB

IP)

43

Annex 4: Detailed Project Description

JORDAN: Education Reform for the Knowledge Economy II

1. The Program Development Objective (PDO) for ERfKE II reads “ to provide students enrolled in pre-tertiary education institutions in Jordan with increased levels of skills to participate in the knowledge economy”. This builds on the objective of ERfKE I, which focused on the system changes necessary for the shift to learning for a knowledge economy, and reflects a deliberate focus on ensuring that the system changes (curriculum and assessment reform, teacher development, policy and strategy capacity) are manifested in changes in learning outcomes in schools and classrooms. This requires a system-wide reorientation to fully support the planned change in the effectiveness of schools: through improved instruction for enhanced achievement with particular regard to the skills and competences required for learning and living in a knowledge economy.

Component 1: Establishment of a National School-based Development System (US$13.3 million total cost, none of which will be financed from the loan) 2. The objective of this component is to establish a well functioning, school-based development process as the main vehicle to deliver to all pre-tertiary students in the Kingdom a quality education focused on the ideas, skills, attitudes and values associated with a knowledge based economy. ERfKE II, building on the experience and achievements of ERfKE I and guided by international best practice will have as its strategic focus the delivery of an enhanced student learning experience through strengthened local school improvement and development processes. Investment in the component will finance development and implementation of the required procedural frameworks, mechanisms and instruments, and local and national structures and processes. It will link with Component 3.1 to progressively build professional capacity in the use of these tools within the system at all levels. By the end of the five years of the program, it will have involved all field directorates and all public schools in the Kingdom.

3. The central core of the component is the establishment in each school of a process of school improvement through annual cycles of school-self evaluation linked to school development planning. The component recognizes the importance of the complementary processes of empowerment and accountability in enabling and steering and driving forward the process. To enable empowerment, schools will be given increasing control over resources for, and processes of, teacher professional development. To ensure accountability, MoE will create a capacity to engage with schools and Field Directorates in directly monitoring and evaluating the quality of their development and the quality of educational experience they offer to their young people and the communities which they serve.

4. In each school, the School Development Cycle will begin with a self-evaluation process using a national Jordanian School Self-evaluation Instrument, and guidelines for its use. This self-evaluation will involve all school staff as participants and will seek inputs from students, parents and community. Drawing on the outputs from this process, each school will produce their own School Development Plan setting out the school’s own development priorities and the steps which it proposes to take to pursue these. Other interventions of the ERfKE II program (Component 2), will ensure that the required decision making capacity and associated resources are distributed to the school level to enable this process to function effectively – for example, the local identification and provision of demand driven professional development.

5. The main effort in Component 1 will be directed at providing the initial training and continuing support that will enable teachers, principals and schools to develop the skills, attitudes and values to engage in the school improvement process successfully. A priority in this will be the delivery of the

44

training and support directly at school level and in a way which encourages the formation of effective teacher learning networks. The key role of school principals in leading, enabling and driving forward the processes of school improvement is well recognized within the program and a very significant proportion of the effort and resources will go towards their training, development and support. Taken together, these processes present a very demanding and challenging agenda. To accomplish this:

• There will be three overlapping implementation phases, beginning in the first year of the program.

• In order to establish the feasibility of the roll-out strategy – particularly the training and support measures – Phase 1 will include three field directorates (chosen to ensure a coverage of urban/rural, large small); and around 207 schools, chosen in these directorates to enable the cluster/networking school development and support strategy to be implemented and refined.

• The pace and scale of roll out in Phases 2 and 3 will be adjusted and planned on the basis of the lessons learned in Phase 1.

6. To steer the development program a School Development Planning and Monitoring Team (SDPMT) will be established within MoE. The team will have as a priority the development of the Jordanian School Self-evaluation Instrument and guidelines to support its use, and the generation of the consequent school development plan. The national team will also link with similar SDPM teams at field directorate level and, with them, work collaboratively with teachers, principals and community representatives to finalize the National School Development Framework document. A detailed Common Operational Framework Document will also be developed to serve as the guide for consistency, equity and sustainability in planning and implementation of initiatives and activities. Within each Field Directorate, training and technical support will be provided for the members of SDPMT teams to enable them to support schools, principals and teachers through their school improvement cycles. All of these processes will draw heavily on experienced individuals from the pilots contained in ERfKE I. In parallel with this school improvement process, in each of the field directorates, the Director and staff will also be engaged in their own processes of structured self-evaluation and development planning analogous to that taking place at the school level, but focused on their own directorate functions and operations. Participation in the process at this level will be also be sought from all staff and from key stakeholders in schools, communities and other representatives of civil society.

7. A School Development Clearing House will be established under the leadership of the School Development Planning and Monitoring Team to enable:

o the distribution of all policy, program and related resource materials to the schools and field directorates;

o easy access by schools to a catalogue of professional development materials and courses; and,

o effective networking between schools for the exchange of good practice (including documents prepared by field directorates and schools on their experiences and successes).

8. An important enabling measure will be the adaption of existing regulatory frameworks to allow schools to gain significant local control over appropriate financial resources, and the development of ways to link the allocation of these resources to needs as identified in individual School Development Plans. This will take time to develop fully. As an interim measure, it is anticipated that the MoE will initially use external funding sources to set up a school grant mechanism to support the implementation of the School Development Framework at the school level. Interventions and activities in Component 1 will enable funding of this process, in concert with a modified version of the Innovation Fund (designed to support innovative school-based teaching and learning activities) as implemented in ERfKE I. In addition,

45

on approval of a school’s development plan, the school may be provided with professional development vouchers that enable them to select specific and tailored professional development programs (and courses) for their staff that most closely fit the needs identified in their school development plan. The existence of this voucher scheme – or some administrative equivalent – will also ensure that school needs will drive and shape the TPD offered by, or through, the ETC. The Education Training Center will, as the program develops, increasingly focus on responding to schools’ and field directorates’ expressions of need, and on ensuring the delivery of the resultant TPD in, or close to, schools, using peer-supported, participative learning and building teacher networks and communities of learning.

9. In the first year of the program, the MoE will develop policies, processes, and an institutional capacity which will enable schools and field directorates to be supported and steered by a process of public and professional accountability. The details of how this is to be achieved will be established as a product of studies to be carried out in the first year of the program. It is already clear that, however accountability is to be pursued, the processes must be characterized by a co-operative approach, integrity, transparency, the highest level of evaluative skills, and a willingness to address difficult issues matched by a sensitivity to context and the potential impact of public reporting. The body and the individuals carrying out this process must have the highest professional standards and command the respect of all participants. Appropriately set up, such a process of accountability will offer MoE valuable intelligence about what is happening in the schools, within a timeframe which will allow them to respond appropriately. Importantly, it will also provide a powerful dynamic to steer and drive forward national policies and priorities and the quality of the school improvement processes within an otherwise devolved system.

Component 2: Monitoring & Evaluation and Organizational Development (US$13.6 million total cost, of which US$3.0 million will be financed from the loan)

10. The objective of Component 2 is to build upon ERfKE I investments related to policy, planning and M&E, and to ensure that outputs from these activities fully support and inform the adoption of a school centered approach to the delivery of education services. The component has two sub-components: (i) Policy Development, Strategic Planning, Monitoring and Evaluation; and (ii) Organizational Development.

Sub-component 2.1: Policy Development, Strategic Planning, Monitoring and Evaluation 11. ERfKE I was designed to strengthen the capacity of MoE to undertake evidence-based policy and planning through: (i) the development of an integrated Education Decision Support System (EDSS); (ii) the establishment of organizational capability to formulate policy and strategic development plans based on outputs from the EDSS; (iii) the adoption of a results based approach to planning and budgeting; and (iv) performance monitoring and evaluation (M&E).

12. Key achievements in this work include: (i) development of an Education Management Information System (EMIS) which became operational in 2007; (ii) the publication in 2007 of the National Education Strategy for the period 2009 to 2013, and, (iii) the development of a program based budget structure that is currently being piloted in parallel with the existing budget process. Studies undertaken during the course of project preparation identify the need to further strengthen the organizational and operational aspects of both policy, planning and M&E and to realign practices in a manner that would effectively serve the needs of school focused delivery of education services. ERfKE II will provide support to address these issues as follows:

46

Policy and Planning 13. Policy and planning initiatives will commence with the institutionalization and professional development of the Policy and Strategic Planning Secretariat (PSPS) which will be responsible for the preparation of a policy framework and process for strategic planning, policy development and implementation, including the development and dissemination of a comprehensive policy manual and the delivery of a related awareness program. Professional development for the PSPS will focus on the development of an integrated policy-oriented research and planning capacity in MoE together with the establishment of appropriate links between the central ministry and field directorates. Operational guidelines will be developed and key staff will be trained in policy research, writing and reporting, sector planning and performance monitoring. This institutional capacity will be supported by donor-provided Technical Assistance which could involve an institutional partnership.

14. The policy and planning capacity will be supported by completion and expansion of the ministry’s management information systems: (i) final implementation of the School Information System (SIS) to incorporate financial/budget information as well as physical resources; (ii) linking the Education Management Information System (EMIS) with the GIS and external databases; (iii) the delivery of training in the use of the EMIS for policy analysis, strategic and operational planning; and (iv) developing robust data architecture standards and integration of ministry system within a common platform. An internal and external communication plan will be launched to ensure the awareness and understanding of all stakeholders with respect to national priorities for the education sector.

Monitoring and Evaluation

15. Internal and external M&E under ERfKE II will focus on three areas: clarification and institutionalization of M&E functions and structures; conduct of M&E activities/studies that inform ERfKE II implementation and provide evidence of impact on learning; and capacity building of staff.

16. Internal M&E activities were carried out under ERfKE I, but without systematic linkages to implementation and policy. ERfKE II will clarify, systematize and institutionalize these activities in order to provide a more effective structure for carrying out M&E focused on ensuring program delivery and real-time feedback to stakeholders, and the translation of data into information for MoE policy and planning. Activities will include: (i) the identification of appropriate internal M&E structures, functions, operational processes, and linkages to central and field directorates; (ii) development of an internal M&E Framework, guidelines and manuals, and the delivery of related training/capacity building; and (iii) the development and implementation of a monitoring, evaluation, and reporting system of student performance against desired learning goals.

17. NCHRD was the main implementing agency for external M&E under ERfKE I and will retain the same role under ERfKE II. External M&E studies will include TIMSS, PISA and NAfKE together with specific studies relevant to ERfKE II program implementation. ERfKE II will focus on strengthening the governance and management arrangements for the conduct of external M&E including: (i) ratification of the mandate and operating procedures of a joint M&E steering body and a wider advisory committee; (ii) linking the data systems between MoE and NCHRD; and (iii) the development of the external M&E framework for the conduct of studies. ERfKE II also will include institutional development activities for NCHRD in order to better equip it to carry out its M&E role under ERfKE II and in the MENA region more generally. These institutional development activities will be supported through parallel financing provided by USAID and will include a partnership with an international organization, provision of software and equipment, and an organizational assessment. The international partner will assist NCHRD in four key areas: development of TORs for M&E studies, approving study designs, reviewing draft reports, and capacity building.

47

18. A consultant will be hired to assist with designing the overall M&E framework for the project. The framework will be grounded in the Results Framework for ERfKE II as well as in the theoretical model underpinning the program design. It will encompass internal and external M&E activities; outline the key M&E questions to be addressed, data to be gathered and analyses to be conducted; provide strategies for reporting and use of results; and suggest appropriate evaluation models and designs. The framework will draw on evaluation models/designs that allow for M&E of processes as well as outputs; are both formative and summative in nature; allow for real-time feedback so that corrective measures may be taken during program implementation; and are in harmony with ERfKE II’s philosophy of school-based development. Appropriate evaluation models/designs might include formal impact evaluations as well as theory-based models, case studies and empowerment evaluation approaches. The M&E framework also will outline plans for the use of student test scores (e.g., NAfKE, TIMSS, PISA) for determining progress and impact under ERfKE II.

Innovation Fund3

19. The project will support the development and implementation of innovative approaches to school-based teaching and learning activities including management, curriculum development and teacher training through a competitive Innovation Fund. This is a continuation of the existing innovation fund financed under ERfKE I. why bold?

Sub-component 2.2: Organizational Development 20. The objective of this component is to transform the MoE organizational culture, structure and process for greater accountability in governance and management, in order to ensure effective and efficient delivery of education services focused on interventions designed to improve student learning outcomes. ERfKE II will achieve this objective by addressing: (i) organizational structures and functions; and (ii) performance management of financial and human resources systems.

Organizational Structures and Functions 21. Work on the component will commence with review of the MoE organizational structure, managerial, and technical operations against the objectives of the Strategic Plan and the adoption of a school centered approach to the delivery of education services. This will be followed by the development of revised operational procedures, service standards, and guidelines to support progressive implementation of the school development framework within the revised organizational structure and a results-based management format. Decision-making authorities will be distributed consistent with the school based management approach outlined in Component 1 together with related staff training. The revised organizational structure will be supplemented by: (i) incorporation and utilization of the SIS into the school development cycle; (ii) development and implementation of a national system of accreditation based on national management service standards; and (iii) implementation of a gender mainstreaming program in the central and field directorates.

Results-Based Management of Financial and Human Resources Systems 22. In accordance with national policy directions, MoE will adopt a results-oriented approach to planning and budgeting. Work will commence with the completion of Operational Policy Guidelines for the application of Results-Oriented Planning and Budgeting (ROPB) together with procedure manuals.

3 Although termed a “fund”, this facility will not disburse funds to any school or other account for expenditure. Goods and services in line with successful schools’ development plans will be procured, funds managed and disbursements made by the DCU using the standard arrangements for the program.

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This will be followed by delivery of staff training and implementation of ROBP procedures as agreed with the Ministry of Finance. With respect to Human Resource Systems, MoE will initiate the development and implementation of an MoE recruitment, retention, promotion and succession plan, linked to Component 3 activities relating to teacher employment policies. In addition, MoE will develop and implement a MoE Performance Appraisal System built on a review and revision of the current administrative and academic classification system.

23. Investment program resources for Component 2 will be required for technical assistance, training and software acquisition.

Component 3: Development of Teaching and Learning (US$49.3 million total cost, none of which million will be financed from the loan) 24. This component reviews and develops teacher employment, utilization and professional development policies and practices, fine-tunes a limited range of curriculum and student assessment arrangements made under ERfKE I, and ensures support for associated new developments. There are two sub-components: the first sub-component focuses on teacher policies, training and professional development, and the second concerns curriculum fine-tuning, and the development of assessment and learning resources – including use of ICT and e-learning.

25. There are two sub-components: the first sub-component focuses on teacher policies, training and professional development, and the second concerns curriculum fine-tuning, and the development of assessment and learning resources – including use of ICT and e-learning.

Sub-Component 3.1: Teacher policies and Teacher Professional Development 26. Outputs from ERfKE I and Project Preparation Studies have identified issues of teachers’ terms and conditions of employment, teacher recruitment and selection, and teacher deployment and utilization as important to the success of the Project. In parallel with Component 2, this Component will address these issues by moving to a competency based recruitment process, and by developing effective procedures for controlling teacher utilization and deployment based on national policies on school and class size, multi-grade classrooms, and the relationship between teacher specializations and subject assignments at specific grade levels. 27. An Education Training Center (ETC) will replace DTQS as a department within the MoE. It will guide, oversee and ensure the quality delivery of TPD across the public education system. Initially it will also have responsibility for the courses planned, as an interim measure, for newly appointed teachers, but will takes steps to ensure that, by the end of the program, Initial Teacher Training (ITT) is increasingly delivered by other bodies. ETC will be steered by a Board containing a wide range of stakeholders and, guided by an agreed policy framework, will undertake strategic and operational planning for the TPD to be offered to all public schools. Initially, it will also have a major role in delivering that TPD. From inception, however, ETC will have as a priority the establishment and development of strategic partnerships with other potential provider bodies in the Kingdom (university education faculties, QRTA, etc.) and will aim, over the period of the program, to build up the role of these bodies as providers of TPD, thus allowing ETC to disengage, where possible, from actual delivery and concentrate its efforts on its strategic and operational planning role, its role in the licensing and grading of teachers, and its role in quality assuring the whole ITT and TPD process. During the first year of the program, technical assistance will be provided to assist ETC in the development of appropriate policies and effective planning processes, a appropriate staffing and reporting structure matched to the balance of tasks it will undertake, and a mode of operation reflecting the nature of the TPD needs being met.

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28. The component also supports further development of the following range of specific inter-related interventions that were initiated under ERfKE I and require completion or further refinement: (i) a system and arrangements which will enable accreditation and licensing of teachers; (ii) a teacher ranking system linked to TPD; (iii) the development of a QA system for the M&E of ITT and TPD; (iv) the refinement of teacher and principal performance assessment procedures; and (v) in due course, and as other major developments allow, the implementation of teacher and principal appraisal systems.

29. There are also specific actions within this sub-component aimed at: (i) the provision of training needs arising from the fine-tuning of the ERfKE II curriculum described in Sub-component 3.2; (ii) the development and provision of a School Leadership Program (implemented as part of Component 1); and (iii) institutional capacity building and professional development training for central and field directorates to enable effective support of school-based development in Component 1.

Sub-Component 3.2: Curriculum, Assessment and Learning Resources 30. A wide range of curricula and support materials were developed as part of ERfKE I. The processes of implementation have revealed the need to review or supplement some of these. These needs take the form of fine-tuning, rather than wholesale reworking. This fine-tuning will also generate training needs. Planned actions focus on: (i) the development of a framework for long term continuing curriculum review; (ii) specific reviews of the curricula in subjects Grades 1-10 with a special focus on learner focused instructional renewal, literacy and numeracy skills in early grades, and reviews of outcomes and resources; (iii) parallel curricula reviews and development for Secondary Education especially core subjects of Math, Sciences, Arabic and English, and MIS and Health; (iv) the review and development of appropriate resources for learning across all ECE, basic and secondary education sectors; and (v) a number of specific cross-curriculum projects, and the establishment of knowledge centers. This sub-component will provide the resources and technical assistance for the development of these reviews, resource creation and for their delivery.

31. Assessment of student attainment of knowledge economy skills will be an important part of ERfKE II. This sub-component will provide resources for designing and carrying out learning assessment activities at the classroom and national levels. (Support for NAfKE as well as for Jordan’s participation in TIMSS and PISA will be covered under Sub-component 2.1). Funding also will be directed toward improving the technical quality and information value of assessment activity through the introduction of benchmarking and item banking, and through the training of staff at the school, directorate and central levels in assessment methodologies and use of results. Finally, technical assistance will be provided to the Department of Testing and Examinations to explore and develop methods and institutional capacity to harmonize the Tawjihi with ERfKE goals, and to explore the possibility of establishing parallel vocational strands within the Tawjihi system.

32. The provision of additional and replacement ICT equipment for schools will be undertaken and arrangements made for system operational and support requirements. ICT connectivity will be available in all schools and will allow all students to benefit from blended e-learning in at least core subject areas through local e-learning and on-line supplementary and enrichment resources. ERfKE II will also finance replacement of obsolete ICT hardware and related infrastructure while promoting equity in distribution of learning resources across Jordan. E-content development for blended learning will also continue to be a focus in ERfKE II. The Ministry will continue to collaborate with its partners to develop new e-Learning material and will increase its capacity to develop e-content under the leadership of the Ministry’s Queen Rania Center for Technology through targeted staff training for in-house development and appropriately determined outsourcing of specific areas of content.

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Component 4: Development of Special Focus Program (US$20.6 million total cost, of which US$2.6 million will be financed from the loan) Sub-component 4.1: Early Childhood Development

33. The objective of this component is to further expand access and enhance the quality of the ECD program in order to maximize children’s learning potential and is directly related to and linked with Second Plan of Action of the National Strategy for Early Childhood Development (2009-2013). The component will aim for greater equity in access to ECD, improved quality of programs and services, and increased parental and community involvement. The component consists of four areas of intervention: (i) increase institutional capacity; (ii) professional development of KG teachers; (iii) expansion of kindergartens for the poor; and (iv) greater public awareness and understanding.

34. The institutional arrangements in the MoE to direct and supervise the provision of ECD will be reviewed and adjusted to promote greater institutional efficiency in line with the organizational review conducted under Component 2.2. In addition, ongoing review and revision of policies will be undertaken to ensure better alignment with developments in basic education, including licensing, accreditation and quality assurance systems.

35. Professional development of teachers, curriculum and resources will be strengthened through introduction of a comprehensive training and performance assessment system for early childhood professionals and paraprofessionals, and curriculum development to achieve greater alignment between learning outcomes of Kindergarten and early Primary Grades.

36. The program will support refurbishment of existing kindergartens, and construction of additional KGs selected on the basis of the needs identified in the School Planning Study using criteria that include targeted location of KGs in female basic schools (all female staff) and in areas where private KGs are not available.

37. The sub-component will support expansion of the Parent Involvement Program and the Better Parenting Program, introduced during ERfKE I. These two initiatives were both evaluated as having very favorable impact on parental involvement, and on increasing household knowledge and understanding of the importance and key principles of early childhood care in the home and the community.

Sub-component 4.2: Vocational Education

38. Reformulation of the Policy and Program Framework. Building on directions established by the National Agenda, an initial Policy Framework for the reform of the Secondary Vocational Education stream has been developed. This Framework will be expanded under the project to guide the restructuring of the vocational education stream in a manner that reflects the occupational requirements of the primary economic sectors in the country. Building on these directions, the Secondary Vocational Program Framework will be reformulated with rigorous attention paid to the following elements: (i) inclusion of a set of core knowledge economy skills, including literacy, numeracy, communications and ICT applications; (ii) building of occupational awareness, skills and competencies relating to the principal employment and economic sectors in the Kingdom; (iii) opportunities for community and work-based learning for vocational students; (iv) elements of career education, including enterprise and entrepreneurship education; (v) courses and curriculum built upon a foundation of strong relationships with the employer community; and (vi) a secondary vocational education certificate with identified pathways for further education and/or employment. Recognizing the scope of the proposed reform, and depth of required interaction with the E-TVET Council, the component will also make provision for

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capacity development of the Managing Directorate. This will be accomplished through the appointment of a policy and planning advisor who will provide guidance to restructuring of the Vocational Education Stream in alignment with all other E-TVET system stakeholders. In addition, given the intended, and essential, strong focus on community and employer involvement in program, curriculum, and out-of school work experiences, together with the large amount of work involved in this initiative, the component will include the appointment of an Employer Community Coordinator to enhance the capacity of the Vocational Education management and leadership team, and facilitate an effective program of employer community linkages.

39. Development of Curriculum and Learning Resources. Following endorsement of the revised policy and program framework, all curriculum and associated learning resources will be revised as follows: (i) establishing general learning outcomes for Vocational subject groupings; (ii) establishing specific learning outcomes for vocational courses based on program group outcomes; (iii) development of texts, manuals and learning resources; (iv) developing curricular initiatives for entrepreneurship and employability skills; and (v) designing an assessment system for improved student assessment of academic and vocational skills, including authentic practical performance assessments.

40. Realignment of Teacher Competency Profiles and Training. This sub-component will build on the National Professional Standards for Teachers, and will establish teacher competencies associated with the revised learning outcomes associated with the respective vocational education program clusters. The competency indicators will be based on an assessment of qualifications and experience profiles for teachers and will be used to develop continuity of training through a teacher competency upgrading program. This will allow training programs to be developed that link competencies directly to the instructional practices that will be most useful in implementing new curriculum outcomes, revised learning resources and student assessment. Given the need to plan teacher utilization within the context of program rationalization (move, eliminate, modify and change) for programs groups and courses, the sub-component will include a program of retraining as well as preparatory and regular in-service training programs. Vocational teacher training will be delivered in collaboration with the Training of Trainers Institute operated by Al Balqa’ Applied University or through other MoE training centers.

41. Rationalization, Re-deployment and Procurement of Tools and Equipment. Revision of the program framework will trigger the need for a fundamental realignment of vocational education facility and equipment investments and utilization patterns. The work will commence with a comprehensive planning exercise to determine future needs in order to make the decisions and take the actions necessary to ensure effective and efficient long-term allocation and distribution of assets. The exercise will be guided by the use of workshop facility and equipment standards by occupational grouping, the preparation of a complete equipment inventory (for utilization, redeployment and acquisition), and will involve the relocation of all occupation-specific vocational training programs, together with their associated facilities and equipment, to the VTC. The planning exercise will also include consideration of the benefits to be gained, by the clustering of a lesser number of more well-equipped schools and the cost implications of student movement to local and regional workshop ‘centers’ for workshop-based activities. Final output from the planning exercise will include: (i) vocational education facility and equipment realignment plan; (ii) equipment standards for specialized workshop functions; (iii) procurement plan for equipment by program group; (iv) facility and equipment maintenance program; and (v) workshop health and safety guidelines for students and teachers. Recognizing that realignment of facility and equipment utilization will be an ongoing program and that costs can not be determined until other elements of the sub-component have been completed, a not-to-exceed provision has been made for expenditures committed during the implementation of ERfKE II.

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42. Facilitation of Graduate Employment Aligned with Labor Market Needs. Recognizing that revisions to the secondary vocational education stream will include greater emphasis on practical student-oriented learning within the school programs, the sub-component will extend this mode of learning to work experiences through community-based partnerships to the field of employment. In this context, the role of the school guidance/career counselor becomes crucial for local implementation in terms of information services and support to all vocational students, including work experience organization and supervision for individual vocational students. In order to build these directions, the sub-component will include the following activities: (i) the development of employment related information systems and services for schools; (ii) the design and delivery of employment-oriented training programs for school guidance and career counseling staff; and (iii) facilitating the establishment of collaborative linkages with local communities and employers.

Sub-component 4.3: Special Education

43. The objective of this subcomponent is to expand access to quality education programs and services relevant to students with special needs. ERfKE I did not focus resources specifically on the issue of children with special needs. The National Education Strategy, developed under ERfKE I, explicitly states the intent of the MoE to “make provision for students with special needs, including those with physical or mental difficulties as well as gifted students through diagnostic testing, specialized programs and resources for support.” This was echoed in the National Agenda discussions which made recommendations for development of a national strategy for special education, and expansion and improvement of programs. Moreover, the interventions are directly linked to and aligned with the National Strategy for the Disabled (2008).

44. This subcomponent consists of 5 areas of intervention: (i) review and updating of policies, regulations, procedures and practices; (ii) institutional development of central and field directorates; (iii) development and provision of quality learning programs, services and resources; (iv) teacher training and awareness raising; and (v) construction and renovation of facilities and equipment.

Component 5: Improvements of Physical Learning Environments (US$310.8 million total cost, of which US$54.4 million will be financed from the loan) 45. The objective of Component 5 is the improved provision of quality education facilities in a cost effective and sustainable manner so that students have access to environmentally friendly and efficiently operated quality physical learning environments. Population growth coupled with external factors results in a need to continue to expand the school construction and rehabilitation program in order to ensure expanded access for KG, primary, and secondary education. Similarly, infrastructure related to building learners’ knowledge economy skills need to be expanded and enhanced to provide access to a rich and quality physical learning environment for all children. A detailed planning analysis has assessed the current situation regarding access to and utilization of physical facilities, and provides the basis for a civil works program that addresses rehabilitation, extensions and new construction some of which are replacing existing facilities. This component has three sub-components: (i) Alignment of MoE standards with international design standards, and the requirements of education reform; (ii) efficient construction of new schools and provision of extensions to existing schools; and (iii) maintenance and management of school buildings.

Sub-component 5.1: Alignment of MoE Standards with International Design Standards, and the Requirements of Education Reform

46. Over the past five years and within ERfKE I, the MoE has made good progress building new schools wherever needed or adding extensions to existing ones. Not only has the Ministry expanded the number of schools, but it has also initiated the programs necessary to improve the quality of the education

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system to meet the requirements of the new knowledge economy. To ensure that the school construction program follows MoE and international standards for design, ERfKE II will support technical assistance to finalize and put into effective implementation these standards. Technical assistance will be provided for: (i) development of standards and guidelines for MoE schools and extensions, as well as furniture and equipment; and (ii) a rationalization plan for existing facilities (both owned and rented). The Directorate of Buildings and International Projects (DBIP) has the role of providing the design standards for educational spaces to serve the learning needs of learners. DBIP will accomplish this in direct coordination and liaison with the Government Buildings Department (GBD) under the Ministry of Public Works and Housing (see details in Annex 6, Implementation Arrangements).

Sub-component 5.2: Efficient Construction of New Schools and Provision of Extensions to Existing Schools 47. The work in this component builds upon the substantial progress made in ERfKE I in the provision of new schools to accommodate growth, and ensure a safe quality physical learning environment. Under ERfKE I, with financing from the World Bank and multiple partners, 214 new schools were constructed, and extensions for 612 schools were completed. In addition, 64 schools underwent urgent rehabilitation for safety reasons. These are major accomplishments, yet more work is needed to ensure that student population growth is addressed, and to continue the program to address overcrowded and unsafe schools. Drawing on a preparation study that identified the extent of the physical space requirements and the strategies required to reduce under-utilized and eliminate overcrowded schools, the MoE has developed a priority list of works that are needed under this program. The highest priority is given to the following three categories: (i) primary schools’ expansion and extension; (ii) KG classrooms to meet enrollment targets (going from the current figure of 51 percent to 56 percent in five years); and (iii) special education schools. Within the first category, the following priority will be followed: (i) unsafe schools, overcrowded rented and/or double-shift schools; and (ii) classroom extension to meet requirements of knowledge economy learning requirements.

Addressing Overcrowding and Expansion 48. Within the MoE planning process, and based on data from the School Planning Study, a total of 70 new schools have been identified for replacement. In addition, to achieve better efficiency, a number of schools will have vertical and horizontal extensions. The following tables show the total requirements for new schools and classroom extensions.

Table 1: New School Construction

2010 2011 2012 2013 2014 2015

18 New Schools

18 New Schools

5 New Schools

10 New Schools

12 New Schools

7 New Schools

49. In terms of extensions to support enrollment projections, the allocation of new classroom extensions for MoE-owned schools is based on the specific overcrowding needs and level of utilization of respective schools. For example, extensions will first be allocated to MoE-owned, double-shift and overcrowded schools; second to double-shift schools; third to single-shift and overcrowded schools; fourth to MoE-owned schools with rented annexes, and; finally to single shift schools.

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Table 2: Extension Requirements

2010 2011 2012 2013 2014 2015

57 255 190 200 100 198 KG Expansion 50. A total of 275 schools have been identified that meet the criteria for KG2 classrooms, and the expected expansion to meet an enrollment rate of 56 percent for KG2. Each of these schools, all located in rural areas, should have two KG2 classrooms constructed as horizontal extensions. This gives a total of 600 KG2 classrooms in MoE schools over the next six years. When these new classrooms are added to those to be nominated by each directorate (50 per year), the total will come close to the target number of classrooms and to the target number of KG2 students (gross enrolment ratio) in rural and more isolated areas in Jordan.

Table 3: KG Expansion Requirements

2010 2011 2012 2013 2014 2015

27 105 168 100 100 100

Special Education Requirements

51. In order to address the requirements articulated in Component 4.3 of ERfKE II, new schools are needed to provide access to special education students. The priority construction is given to the King Abdullah II Schools of Excellence (Gifted Programs), and to special education classroom construction for hearing and visually impaired students.

Table 4: Special Education Requirements

2010 2011 2012 2013 2014 2015

King Abdullah II Schools for Excellence 0 2 1 1 2 0

Special Education Schools 1 1 2 1 1 0

Specialty Classroom and Laboratory Extensions

52. While good progress has been made within the ERfKE I program to provide computer laboratories and general science workshops, there remain a significant number of MoE schools (both basic and secondary) that lack these resources for effective learning. The provision of these resources within the ERfKE II program will make further significant inroads into supporting effective learning in MoE schools.

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Table 5: Specialty Classrooms, Laboratories and Workshops

2010 2011 2012 2013 2014 2015

Science Lab 6 13 46 30 25 30

Computer Classrooms 6 13 46 30 30 25

Sub-component 5.3: Maintenance and Management of School Buildings 53. The infrastructure of educational facilities includes buildings, grounds, and related systems and equipment that are critical to daily operations and support of the educational process. These systems, which include civil, mechanical, electrical, plumbing, data, telecommunications, and lighting systems, serve as the “functional arteries” of any modern educational facility. Maintaining these systems in an efficient manner presents a series of significant technical challenges for any maintenance administrator. The fact that most school directorates are comprised of old and new buildings suggests that the requirements for maintaining different infrastructure components will vary widely. As educational buildings continue to evolve and incorporate technical innovations, virtually every aspect of school facility infrastructure is likely to be affected. In addition to basic checklist procedures, administrators and supervisors should put in place more specific guidelines and procedures for properly maintaining all aspects of a facility’s infrastructure.

54. The key result of this subcomponent is that the MoE will have implemented a comprehensive and appropriately funded preventative maintenance system for buildings, facilities, and related infrastructure. The key activities to be financed include: (i) training for maintenance based on the Maintenance Process Manual; (ii) development of guidelines for school-based management and maintenance; (iii) training for field and school management; and (iv) M&E for quality assurance. ERfKE II will also finance a computerized maintenance database that includes maintenance logs and schedules for all MoE schools in Jordan, maintenance items, and prices. This subcomponent will address requirements at both MoE (DBIP) as well as GBD.

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Annex 5: Program and Project Costs

JORDAN: Education Reform for the Knowledge Economy II

Program Cost By Component and/or Activity Local

US$ million Foreign

US$ million Total

US$ million

1. Establishment of a National School-based Development System 9.6 3.5 13.2

2. Monitoring &Evaluation and Organizational Development

2.1. Policy Development, Strategic Planning and M &E 5.5 5.1 10.6

2.2. Organizational Development 0.6 1.5 2.2

3. Development of Teaching and Learning Resources

3.1. Teacher Policy and Professional Development 15.4 3.5 18.9 3.2. Curriculum, Assessment, and Learning Resources 5.6 21.7 27.3

4. Development of Special Focus Program

4.1. Early Childhood Development 7.1 1.7 8.8 4.2. Vocational Education 1.7 5.6 7.4 4.3. Special Education 2.1 0.8 2.9

5. Improvement of Physical Learning Environments 157.8 126.4 284.3

Total Baseline Cost 205.5 169.8 375.4 Physical Contingencies 7.1 5.7 12.8 Price Contingencies 10.6 8.9 19.5

Total Program Costs1

223.2

184.4

407.7

Interest during construction Front-end Fee 0.1 0.1

Total Financing Required 407.8

Totals may not add up due to rounding. 1 Identifiable taxes and duties are US$55.3M, and the total project cost, net of taxes, is US$352.4M. Therefore, the share of project cost net of taxes is

86.4%.

Cost Incl. Contingencies IBRD Financing Project Components

-------------------- US$ million ------------------- 1. Establishment of a National School-based Development System 13.3 2. Monitoring &Evaluation and Organizational Development 2.1. Policy Development, Strategic Planning and M &E 11.3 2.3 2.2. Organizational Development 2.3 0.7 Subtotal 13.6 3.0 3. Development of Teaching and Learning Resources 3.1. Teacher Policy and Professional Development 19.6 3.2. Curriculum, Assessment, and Learning Resources 29.7 Subtotal 49.3 4. Development of Special Focus Program 4.1. Early Childhood Development 9.7 4.2. Vocational Education 7.9 2.6 4.3. Special Education 3.1 Subtotal 20.6 2.6 5. . Improvement of Physical Learning Environments 310.8 54.4

Total Project Costs 407.7 60.0

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Annex 6: Implementation Arrangements

JORDAN: Education Reform for the Knowledge Economy II 1. Most of the implementation arrangements in effect under the first Education Reform for Knowledge Economy Project (ERfKE I) will be used by ERfKE II. The Ministry of Education (MoE) will be the lead implementing agency of the project, while the Government Buildings Directorate (GBD) of the Ministry of Public Works and Housing (MoPWH) will be responsible for the procurement processing and implementation of the civil works financed by ERfKE II. As described in Annex 7 (Financial Management and Disbursement Arrangements), there will therefore be a Designated Account (DA) managed by each of the two implementing agencies.

Oversight

2. The General Policy Steering Committee (GPSC) will provide policy direction and advice for all reform efforts, in alignment with the National Education Strategy and the MoE Strategic Plan. The GPSC is chaired by the Minister of Education and is composed of two Secretary Generals, representatives of MoPIC, and representatives of the National Center for Human Resources Development (NCHRD). Donor representatives are also invited to attend GPSC meetings. The main functions of the GPSC are to:

• set the overall policy guidelines and direction of the ERfKE II Project; • oversee implementation and act as the central coordinating body for education reform efforts; • ensure support for education reform from all stakeholders and relevant constituencies; • ensure coordination among the various departments involved in education reform

implementation; • approve the ERfKE II Project’s annual work plans, including operations and budgets; • act as the main liaison between education reform efforts and all local and foreign entities; • act as the delegated Government of Jordan (GOJ) counterpart to the World Bank on all matters

related to the Project, at the policy, technical and financial levels; • review and assess performance indicators agreed to during the Project’s appraisal, and arrange for

regular independent evaluations of the education reform outcomes and impacts; • review progress reports prepared by the DCU and supervise the preparation of the mid-term

review reports and the implementation of reform project completion reports; • review all reports submitted by the DCU to relevant agencies, including the World Bank and

donor agencies.

Project Management

3. Component Sub-Committees, headed by one of the two MoE Secretary Generals, are composed of relevant Managing Directors (MDs). Donors may also be invited to participate or to nominate representatives of executing agencies. Component Committees are responsible for overseeing the implementation of individual components. They are responsible for preparing and monitoring annual workplans.

Management of Civil Works Financed by ERfKE II

• The MoE Directorate of Education Planning will be responsible for site selection and identification of the needs.

• The MoE Directorate of Buildings and International Projects (DBIP) is responsible for providing the design standards for educational spaces to serve the learning needs of learners. DBIP will accomplish this in direct coordination and liaison with the GBD.

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• The GBD will be fully responsible for the implementation of all civil works and civil works-related consultant services contracts under the project, including the preparation of bidding documents, procurement and contract management. In addition, the GBD will be responsible for payments and manage a DA for all contracts related civil works. It will use Financial Management (FM) software with network interface that will allow the DCU to view the DA financial situation and payments against contracts at any time. In addition, it will provide to the DCU monthly progress report. A matrix of responsibilities for MoE and GBD, will be recorded in the Project Operational Manual (POM). These arrangements are referred to in the Legal Agreement.

4. All other procurement will be handled by the Directorate for Supplies and Procurement (DSP). DSP is led by a Managing Director and is made up of three Directorates, namely: Tenders Directorate; Supplies & Transportation Directorate; and Books & Warehouses Directorate. Within the Tenders Directorate, there are three divisions: Furniture & Equipment Tenders Division; Books Tenders Division; and Building Division. Details on procurement arrangements can be found in Annex 8 (Procurement Arrangements).

5. More detailed procurement arrangements are provided in Annex 8 and will be recorded in the Project Operational Manual.

Coordination, Fiduciary, Project Planning and Reporting

6. The DCU serves as the Secretariat for the GPSC. More specifically, the DCU has been established to assist the GPSC in its technical and administrative functions and to supplement its capacity in education reform execution. The unit is responsible for overall coordination of all development projects related to the reform implemented by the Ministry. The DCU reports directly to the Minister of Education and is led by an Executive Director. The DCU consists of 12 members: the Executive Director; the Procurement Officer, the Finance Officer, the Monitoring and Coordination Officer, the Administrative Officer, the Information Technology Coordinator, five component coordinators, and a Team Assistant. The DCU is responsible for:

• the day-to-day coordination of the implementation of all education reform projects; • preparing consolidated annual work plans, including operations and budget for education reform

efforts; • supporting beneficiary departments within the MoE in carrying out tasks assigned under reform

projects; • guiding and assisting the MoE in all procurement and contracting arrangements according to

World Bank and other donor agency guidelines for procurement of goods and services; • assisting the Ministry in the management of the DA and all related financial transactions, and

handling disbursement of funds for all components in reform projects; • liaising among the various project stakeholders, domestic and foreign; • regular liaison with GBD on all matters related to Component 5; • preparing and submitting quarterly progress reports to the GPSC; • ensuring that the MoE maintains project accounts in sufficient detail to the satisfaction of the

GOJ and the various contributing donor agencies; • consolidating project financial reporting on education reform efforts; • acting as the Secretariat to the GPSC.

7. The DCU will manage a DA for all payments, with the exception of those related to the civil works contracts under Component 5 of the Project.

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Annex 7: Financial Management and Disbursement Arrangements

JORDAN: Education Reform for the Knowledge Economy II I. Executive Summary 1. A financial management (FM) assessment was conducted in November 2008 for this Project in accordance with the requirements established in the “Financial Management Practices in World Bank-financed Operations” manual issued by the FM Sector Board in 2005. This manual requires that a risk assessment summary be prepared to assess the adequacy of the Borrower’s FM arrangements during the preparation of each operation and requires the Borrower to undertake appropriate measures, including institutional capacity strengthening, to mitigate risks posed by weaknesses that are identified. The results of this assessment are documented in the FM Assessment report which is available in the Project files.

2. The Project will be implemented by the DCU located at MoE and by the GBD as an entity under the MoPWH which is mandated to manage the construction of schools. The Project will have Components 1 through 4 implemented by the DCU while Component 5 will be implemented by GBD. The same Finance Officer of ERfKE I has been appointed, on a full-time basis, to follow on ERfKE II accounts and finances. This FO has gained good experience with the World Bank’s policies and procedures. GBD has designated a Finance Officer, on a part-time basis, from its own financial staff to be part of the team implementing and managing Component 5 of the project. Adequate training by the Bank and close cooperation with the existing DCU will be provided to the GBD Finance Officer assigned to work on the project.

3. The ring fenced accounting system is currently installed at the DCU and will be installed at the GBD. The previous experience under ERfKE I showed that the software that is currently used by the DCU is capable of generating the Project financial reports. The two systems at the DCU and GBD will be linked via a network. The DCU will have read–only access to GBD data that would enable the DCU to perform its oversight function and generate financial reports on an ad hoc basis, when needed. The main database will be kept at the DCU.

4. To ensure that funds are readily available for Project implementation, two US Dollar Designated Accounts (DA) will be opened at the Central Bank of Jordan. These accounts will be managed separately by the MoE and GBD.

5. The Project, through the DCU and GBD, will be required to issue quarterly interim un-audited financial reports (IFRs). These reports will reflect the project sources and uses of funds, contracts expenditures as well as uses of funds by project component and by financier. These reports, which will be required by the Project’s Loan Agreement, shall be submitted to the Bank 45 days following the end of each calendar quarter starting from the quarter where the first loan disbursement took place. The Finance Officer at the DCU will be responsible for compiling the IFRs for both entities in one package and sending the IFRs on a timely basis to the World Bank.

6. The Project financial statements will be compiled by the DCU Finance Officer. An external independent auditor with international experience, acceptable to the Bank, will be engaged to perform the Project audit and issue an independent opinion on the Project compiled financial statements. The audited report with audited financial statements should be submitted to the Bank no later than six months following the closing date of each fiscal year being audited. The MoE will recruit the external auditor and the audit costs will not be financed by the Bank loan.

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7. An FM action plan covering the Project’s FM activities for the first 9 months was developed and agreed with the client. The Bank will intensively support and supervise the Project in its first year to ensure successful implementation of this plan.

Action Due Date

1. Finalize the FM manual as part of Operational Manual Done

2. Open the Designated Account for DCU and GBD. To be opened upon Project effectiveness

3. Purchase and install a copy of the accounting software at GBD and renew the license of the accounting software at MoE.

1 month after effectiveness

4. Issue the first set of Quarterly interim un-audited financial reports.

45 days after the first quarter end during which the first disbursement did take place.

5. Contract an external auditor. The auditor TOR as well as the selected auditor should be acceptable to the Bank.

9 months before year end.

II. Financial Management Risk 8. Country Financial Management Risk. The most recent Jordan ESW4 indicates that the country’s fiduciary risk is rated moderate. There has been significant progress in Jordan’s public FM where it has been able to: (i) improve its budget process through implementing a results based budget for the year 2008; (ii) advance the full implementation of a single treasury account with the Central Bank; and (iii) modernize the spending procedures and accounting through adopting a new chart of account and developing the GFMIS for implementation by the MoF, government departments and other spending units. So far, the GFMIS is still a work in progress and most of the ministries (including MoE and GBD) still do not have an accounting and reporting system in place that can be used for reporting on the project accounts. In addition, Jordan’s Corruption Perceived Index (CPI) as per Transparency International has improved from 4.7 in 2007 to 5.1 in 2008, ranking Jordan 5/20 regionally and 41/180 internationally. 9. The Project will be implemented through opening budget lines under MoE (for counterpart funds) and MoPIC (for the Bank loan) and funds will be allocated accordingly. MoE has already opened a budget line under its 2009 budget. 10. Project FM Risk. MoE and GBD’s FM arrangements were assessed based on the World Bank’s FM Guidelines, to determine if the FM arrangements for the Project are acceptable to the World Bank. Detailed FM questionnaires were completed for MoE and GBD and are included in the Project’s files. The risks identified and the mitigating measures addressing theses risks are detailed in the table below:

4 The Institutional Financial Management Assessment (IFMCA) for the Education and Social Sectors – June 2006.

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Risk Risk Rating

Incorporated Risk Mitigating Measures (MM) Risk rating after MM

Inherent Risk (IR)

Country Level

Moderate According to the recent ESW, the financial risk in the Hashemite Kingdom of Jordan is moderate.

Mitigating measures:

� Ring fence the Project’s implementation and flow of funds arrangements.

� Hire an independent qualified private audit firm acceptable to the Bank to audit the Project annually.

Moderate to low

Entity and Project Level

High

Possible limited coordination between MoE and GBD that might affect the implementation of the Project and cause delays in issuing the quarterly IFR and the yearly audit report. GBD does not have previous experience with the Bank guidelines and its current FM arrangements do not allow it to adequately handle the FM arrangements of the Project.

Mitigating measures:

� The roles and responsibilities of MoE and GBD as well as communication and reporting mechanisms are spelled out in the Operational Manual.

� The Project’s accounting, reporting and auditing arrangements will be ring fenced.

� A Finance Officer is designated, on part time basis, seconded from the Finance Department at GBD.

� Hire an independent qualified private audit firm acceptable to the Bank to audit the Project annually.

� FM and disbursement workshop will be conducted during Project launching to build capacity at GBD.

� GBD will purchase a ring fenced accounting system (the same system used by MoE under ERfKE I) to follow up and report on Project’s activities.

� A separate designated account will be opened and managed by GBD.

Moderate to High

Overall IR High Moderate

Control Risk (CR)

Budgeting Moderate MoE 2010 annual budget will include a budget line for counterpart funds, whereas, MoPIC annual budget will include a budget line for World Bank loan.. Additional measures:

� The Finance Officer at the PDU will be responsible for preparing a detailed Project budget.

� The Finance Officer of the Project at GBD will be responsible for preparing a detailed Project budget.

� The Project’s accounting system (used by the DCU for ERfKE I and will be installed in GBD) have a separate screen that allows posting and

Low

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revision of the Project’s annual budget by implementing entity.

Risk Risk Rating

Incorporated Risk Mitigating Measures (MM) Risk rating

after MM

Accounting Moderate Lack of an appropriate accounting system at GBD level. Mitigating measures:

� GBD will purchase a ring fenced accounting system (the same system used by DCU for ERfKE I) for the Project before its effectiveness. This system will be governed by its own detailed chart of account.

� The Project’s chart of account will be broken down by financier, category, component and activity.

Low

Funds Flow High Bank’s and counterpart funds needed for the Project may not be timely available. Mitigating measures:

� The Project will open 2 separate DAs for MoE and GBD for Bank funds in the CBJ.

� The Project will be implemented through opening budget lines under MoE (for counterpart funds) and MoPIC (for World Bank loan) and funds will be allocated accordingly. MoE has already opened a budget line under its 2009.

� The flow of funds process is included in the financial management chapter of the Operational Manual developed for the Project.

Moderate

Financial Reporting

High GBD’s system may not adequately report on the Project’s activities and automatically generate quarterly financial reports. Mitigating measures:

� The format and details of the report have been discussed during appraisal and included in the Operational Manual..

� The ring fenced Project accounting system (the same system used by the DCU for ERfKE I) is able to generate the needed reports.

Moderate

Auditing Moderate MoE and GBD’s accounts are post audited by the Government’s Audit Bureau that has limited independency.

Additional measure:

� The Project will engage a qualified independent private auditor acceptable to the Bank in accordance with agreed upon TORs to audit the Project on an annual basis.

� The auditor will issue a Project audit report with audited compiled financial statements and will issue an opinion on such statements.

Low

Overall CR High Moderate

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III. Project Arrangements

Implementation Entities and Staffing

11. The Project will be implemented by two Government agencies: (i) MoE will be responsible for the overall implementation of the project, and (ii) GBD will be responsible for the implementation of the civil works component. The DCU’s finance staff at MoE has prior experience with the Bank’s policies and procedures through implementing ERfKE I, whereas GBD’s finance staff lack the sufficient knowledge of World Bank guidelines and procedures. The DCU has appointed, on a full-time basis, the same Finance Officer of ERfKE I to support ERfKE II. This officer has gained good experience with World Bank policies and procedures through implementing ERfKE I. At GBD, a financial officer has been identified and assigned, on a part-time basis, from the GBD financial staff to be part of the team implementing Component 5 of the project. The GBD has no prior experience with World Bank policies and procedures. Accordingly, adequate training by the Bank and also through cooperation with the existing DCU will be provided for the GBD Finance Officer. The Finance Officers at both the DCU and GBD are and will remain public sector employees.

Internal Controls

12. The Loan and the Government shares are considered public money and payment procedures at MoE and GBD are subject to the controls specified in Jordan’s financial bylaws which include: (i) technical approval of department involved; (ii) MoE and GBD Finance staff checking and approval; (iii) Ministries’ resident Internal Auditor; and (iv) MoF’s Financial Controller who validates the accuracy of the payment and its compliance with the applicable laws in Jordan and with the Bank procurement and FM procedures as well as the loan terms and conditions.

13. Although the Project will follow the government applied controls set in the local laws, there will be supplementary controls in place for monitoring Project activities to ensure that reports are issued regularly. The Project’s financial controls are documented in the Operational Manual (OM) that was prepared by a consultant appointed by MoE. The OM needs to be finalized prior to effectiveness.

Accounting

14. The Project will follow the cash basis of accounting where resources and uses of funds are recorded when cash is received or when payments are made.

15. As the current MoE accounting system, operated by MoE Finance Department, is not capable of generating the required reports as per World Bank requirements, MoE will continue using the stand alone accounting software utilized by the DCU for ERfKE I. This system is capable of generating the Project reports, including the required IFRs.

16. GBD uses a manual system to account for its expenditures. Plans are underway in MoF to develop and implement a GFMIS that will also be implemented in all the ministries. In the meantime and in order to allow the Directorate to separately record and report on the Project’s accounts, the same accounting software of DCU will be installed at GBD. The two systems at the DCU and GBD will be linked via a network. The DCU will be granted read-only access to GBD’s database but no access will be granted to GBD to access the DCU database. This would enable the DCU to perform its oversight function and generate financial reports when needed.

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17. A detailed chart of accounts was developed for ERfKE I where expenditures are broken down by category, component and implementing entity while sources of funds are broken down by financing source. This chart of accounts will be used for ERfKE II.

Flow of Funds

18. To ensure that funds are readily available for Project implementation, two US Dollar Designated Accounts (DA) will be opened at the Central Bank of Jordan (CBJ) for each of MoE (DA - A) and GBD (DA – B). Each DA will be managed separately by each agency in order to facilitate implementation, to expedite the flow of funds process and to enhance accountability for the implementing entities. Each account will be dominated in US Dollar and will be opened at the CBJ. Deposits into and payments from the DA will be made in accordance with the disbursement letter. The DCU and GBD will each prepare withdrawal applications with the related supporting documents, signed by the designated signatories.

19. All Project-related invoices in MoE, whether for advance payments or for expenses incurred, will be subject to the government applicable controls and procedures which stipulate the following process: (i) invoices and supporting documents are received by the DCU and then the Finance Officer, and checked technically by the relevant DCU staff; (ii) invoices are checked for their accuracy, eligibility and validate of payment before the Finance Officer prepares a payment voucher; (iii) the internal auditor performs an ex-ante compliance check regarding the expenditure’s compliance with the financial by laws; (iv) the MoF Controller checks the accuracy of the payment voucher against the financial by laws, signs and stamps the payment voucher; (v) once approved, the expenditure is recorded in the accounting books of the MoE, finally; and (vi) the Finance Officer prepares a check. A flow of funds chart is part of this annex. For the Innovation Fund, no funds will be transferred to the accounts of schools. On the basis of successful schools’ proposals, goods and services will be procured, finances will be managed and funds disbursed by the DCU in accordance with the above process.

20. Payments made under GBD part will follow the same steps mentioned above, excluding the role of the DCU.

Flow of Information

21. The implementation of the program will involve 11 different directorates and one unit within the MoE: Managing Director (MD) of Curricula and Textbooks, MD of MoE: Department Curriculum and Textbooks, Department of Training, Qualifications and Supervision, MD of Examinations and Tests, MD of Vocational Education and Production, MD of Buildings and International Projects, MD of Supplies and Procurement, MD of Information and Communications Technology, MD of Educational Planning, MD of Educational Research and Development; Human Resources; and Monitoring, Inspection and Quality Assurance and the DCU. The information flows will be defined, agreed upon and documented in the Project Financial Manual. To facilitate the compilation of the Project financial information and progress, each department should provide the DCU, on a monthly basis, with the following required data:

a. Listing of all signed contracts, detailing amounts paid to date and the disbursement forecast under each for the coming six months.

b. Activities that will be committed during the next six months and the disbursement forecast under each.

c. Physical progress report detailing the progress of the activities being implemented.

Budgeting

22. The Project’s Finance Officers at the DCU and GBD need to prepare annual budgets and disbursement plans per quarter. These will be developed based on the initial procurement plan,

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implementation schedules and estimated payments cycles, and revised as needed. They will be used as monitoring tools to analyze budget variances and manage cash.

Financial Reporting

23. In line with the Bank Guidelines, the following reports will be required under this Project:

Quarterly: The Project will be required to generate quarterly Interim un-audited financial reports (IFRs) and submit them to the Bank as part of the Project’s progress report or separately. These reports will consist of the following:

a. Statement of sources and uses of funds, indicating sources of funds received and Project expenditures, showing quarterly, yearly and cumulative balances;

b. Statement of uses of funds classifying Project expenditures by component, showing quarterly, yearly and cumulative balances;

c. DAs reconciliation statements reconciling period-opening and end balances; d. Statement of Project commitments, i.e., the unpaid balances under the Project’s signed

contracts.

These reports will be system-generated and should be remitted to the Bank within 45 days from the end of the quarter as per the Project’s Loan Agreement. The proposed format of the reports will be agreed upon during Negotiations.

The Finance Officer at the DCU will be responsible for compiling the quarterly interim reports for both implementing entities in one package and sending it on a timely basis to the Bank.

Annually: The Finance Officer at the DCU will prepare, on an annual basis, the Project compiled Financial Statements (PFS). The compiled PFS will follow the cash basis of accounting and will be audited and submitted to the Bank within six months from year end. The compiled PFS will include:

a. Statement of sources and uses of funds, indicating sources of funds received and Project expenditures, showing yearly and cumulative balances;

b. Statement of uses of funds classifying Project expenditures by component, showing yearly and cumulative balances;

c. DAs reconciliation statements reconciling opening and year-end balances; d. Statement of payments made using Statements Of Expenditures (SOEs) procedures as

defined in the legal agreement; and e. Statement of Project commitments, i.e., the unpaid balances under the Project’s signed

contracts.

f. List of fixed assets purchased by the project.

Auditing

24. The Project’s compiled financial statements will be audited by an independent private-sector auditor. The external independent auditor should be acceptable to the Bank and his TOR will be prepared and submitted for the Bank’s no objection at least nine months prior to the end of the Project fiscal year. The external auditor report (in English) shall encompass all the Project components and activities under the Loan Agreement and shall be in accordance with internationally accepted auditing standards, e.g., International Standards on Auditing (ISA). The audit report and opinion will cover the Project’s financial

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statements, reconciliation and use of the Designated Account (DA), use of direct payments, and withdrawals based on Statements of Expenditure (SOEs). In addition, the auditor is required to prepare a “management letter” indentifying any observations, comments and deficiencies in the system and controls that the auditor considers pertinent, and shall provide recommendations for their improvements. The MoE will recruit the external auditor who will perform the audit at MoE and at the GBD premises and the audit costs will not be financed by the Bank loan.

25. The Project’s auditor will be requested to prepare the following audit reports and to meet the due date specified below:

Audit Report Due Date 1) Project Specific Financial Statements Annually by June 30

2) Special Opinions

� SOE, if applicable Annually by June 30

� Designated Account Annually by June 30

� Other specific audit reports Upon request

Disbursement Arrangements

26. The proceeds of the loan will be disbursed in accordance with the Bank's disbursements guidelines as outlined in the Bank Disbursement Guidelines for projects. Transaction based disbursement will be used under this Project. Accordingly, requests for payments from the loan account will be initiated through the use of withdrawal applications (WAs) either for Direct Payments, Reimbursements, Replenishments to the DAs, or Issuance of Special Commitments. All WAs will include appropriate supporting documentation, including detailed SOEs for reimbursements and replenishments to the DAs.

27. Authorized signatories, names and corresponding specimens of their signatures will be submitted to the Bank prior to the receipt of the first replenishment application.

Allocation of Loan Proceeds

Category

Amount of the Loan Allocated (expressed in

USD

Percentage of Expenditures to be financed*

DA – B (1) Works 45,960,000 84% DA – A (2) Goods and equipment 9,000,000 84% DA – A (3) Consultants’ Services and Training 2,660,000 84% DA – A (4) Innovation Fund 230,000 84% (5) Front-end Fee 150,000 Amount payable pursuant

to Section 2.03 of this Agreement in accordance with Section 2.07(b) of the General Conditions

(6) Unallocated 2,000,000 Total Amount 60,000,000

* As agreed with the Government of Jordan to allow its contribution to a broader range of activities, the loan will not finance taxes which are estimated at 16% on all goods, works, and services.

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Statement of Expenditures (SOE)

28. During implementation, SOEs will be used for all expenditures relating to: (i) works under contracts costing less than US$1,100,000; (ii) goods under contracts costing less than US$350,000; (iii) consulting services under consulting firm contracts costing less than US$100,000 equivalent each and under individual consultant contracts costing less than US$50,000 equivalent each; and (iv) training and innovation fund, under such terms and conditions as the Bank shall specify by notice to the Borrower. The supporting documentation will be maintained at MoE/GBD and will be made available for review by the Bank supervision missions upon request. Documentation relating to SOEs would be retained for up to one year from the date the Bank receives the audit report for the fiscal year in which the last WA from the Loan was made.

Designated Accounts

29. Two Designated Accounts (DAs) will be opened at the Central Bank of Jordan for each of MoE (DA - A) and GBD (DA - B). The DAs will be used to hold Project funds from which disbursements to contractors, consultants, and other Project vendors will be made. No payments for goods or services other than those related to the Project will be made from the accounts. An authorized allocation of US$1,000,000 (representing approximately four months of eligible expenditures financed by the loan) will be granted to DA – A. An authorized allocation of US$1,500,000 (representing approximately four months of eligible expenditures financed by the loan) will be granted to DA – B. Authorized signatories, names and corresponding specimens of their signatures will be submitted to the Bank prior to the receipt of the first replenishment application.

World Bank Supervision

30. Financial management of the Project will be supervised by the Bank in conjunction with its overall supervision of the Project. Initially, this supervision will be performed on a semi-annual basis and will review the adequacy of Project FM arrangements of the DCU and GBD.

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MOECash & Documents flow

Document flowCash flow

sends WA to WB

Send payment request & supporting documents

Direct payment &

Special Commitment

Bank replenishes DA

Replenishment request

Transfer Request

and checks

Replenishment

Consultants / Suppliers

MOE Technical Units, International Projects Directorate, Internal

Audit and MOF Controller

Accounting Entry - Project system

Interim Un- Audited Financial

Reports(IFRs)

Project local account

(counterpart funds)

Consultants / Suppliers

IBRD Loan Account

Project DA at CBJ

MOE reviews and authorizes W/A and

payment request

MOF

Document flowCash flow

sends WA to WB

Send payment request & supporting documents

Direct payment &

Special Commitment

Bank replenishes DA

Replenishment request

Transfer Request

and checks

Replenishment

Government Building DirectorateCash & Documents flow

Consultants / Suppliers

Government Building Directorate

Technical Unit, Finance Officer, MOF Financial Controller and Internal

Auditor

Accounting Entry - Project system

Interim Un- Audited Financial

Reports(IFRs)

Project local account

(counterpart funds)

Consultants / Suppliers

IBRD Loan Account

Project DA at CBJ

Government Building Directorate reviews and

authorizes W/A and payment request

MOF

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Annex 8: Procurement Arrangements

JORDAN: Education Reform for the Knowledge Economy II

A. General 1. Procurement for the proposed project would be carried out in accordance with the World Bank’s "Guidelines On Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants" known as the "2006 Anti-Corruption Guidelines’, and the "Guidelines: Procurement under IBRD Loans and IDA Credits" published by the Bank in May 2004, and revised October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, revised October 2006, and the provisions stipulated in the Legal Agreement, and the accompanying standard bidding documents for any new procurement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

2. Procurement of Works: Works procured under Component 5 of this project would include: construction of new schools, special education new schools, and extensions to provide computer rooms, science laboratories, kindergartens and additional classrooms. The procurement will be done using the National SBD agreed with or satisfactory to the Bank. No International Competitive Bidding is anticipated for procurement of Works.

3. Procurement of Goods: Goods procured under this project would include: Purchase of information systems and other related equipment, more specifically furniture and equipment of new schools and extensions. The procurement will be done using the Bank’s SBD for all ICB and National SBD agreed with or satisfactory to the Bank.

4. Procurement of non-consulting services: Non-consulting services may be procured following the same guidelines for procurement of goods.

5. Selection of Consultants: Consulting firms and individual consultants shall be appointed under the different components of the projects. Appointment of firms that manage international education assessment such as TIMSS and PISA are foreseen under M&E areas of assessment. These appointments will be made using single sourcing procurement method. Government-owned universities and research institutes shall be eligible under the circumstances set out in paragraph 1.11 (c) of the Guidelines even if they cannot meet the test for eligibility set out in paragraph 1.11(b). The same rule applies to Government-owned university professors or scientists from research institutes who can be contracted individually. Nevertheless, the eligibility of the Government-owned universities or research institutes shall be determined and cleared by the Bank on a case-by-case basis. Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

6. Operating Costs: The Loan will not finance Operating Costs expenditures.

7. Others: The Loan will be introducing an Innovation Fund5 at the school level. The Operational Manual (OM) will define the selection process for the proposals and will include procurement requirements and guidance.

5 Although termed a “fund”, this facility will not disburse funds to any school or other account for expenditure. Goods and

services, in line with successful schools’ development plans, will be procured, funds managed and disbursements made by the DCU using the standing arrangements for the program.

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8. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are presented in the Project OM. The manual will have a matrix outlining the roles and responsibilities of the two implementing agencies in coordinating, managing, implementing, and reporting on Component 5 related to construction of new schools and extensions. B. Assessment of the Agency’s Capacity to Implement Procurement

9. The implementation of the project procurement will be handled partially by MoE for procurement of goods and consulting services, and by GTD and GBD (MoPWH) for Works and related consultancy services. The compilation of reports and monitoring of progress will be the responsibility of the MoE.

• Ministry of Education: Unlike other ministries housing procurement under the Financial Department, MoE has established a separate Directorate for Procurement and Supplies. It is composed of the following: Technical Specifications and Costing, established in 2006 (5 engineers and technical people), International Projects Department, including the coordinators of bids (10 staff), Monitoring Department which is also handling procurement of consultants (6 staff). The overall yearly procurement envelop carried out by MoE is JD7 million (US$10 million) funded by the government budget and JD 14 million (US$20 million) by international funding.

• Ministry of Public Works and Housing: Procurement is housed by the Secretary General of MoPWH and composed of three departments staffed with approximately 350 people: GTD [procurement processing before contract signature] is composed of (23 engineers) and (8 support staff), GBD [contract signature and management] is composed of 320 field engineers (centrally and in directorates), financial and accounting (15 staff). The overall yearly procurement envelope carried out by MoPWH is JD 250 million (US$350 million).

• Special Tender Committee: The mandate of the current STC at MoE shall have its mandate extended to cover ERFKE II. STC shall be operational after project effectiveness and will handle procurement processed by the MoE related to goods and consultant services.

10. An assessment of the capacity of the Implementing Agencies to implement procurement actions for the project has been carried out by the World Bank Procurement Specialist and the report was finalized on October 15, 2008. The assessment reviewed the organizational structure for implementing the project and the interaction between the project Procurement Officer and the Ministry’s relevant Central Unit for Administration and Finance. 11. The key issues and risks concerning procurement for implementation of the project have been identified as well as the corrective measures which have been agreed with the Government, as following:

Risks:

• Foreseen risk of lacks of coordination and flow of information by moving the Department of Buildings, in charge of Civil Works contracts management, from MoE to the GBD. (SUBSTANTIAL);

• Delays of processing the transactions imputable to administrative bureaucratic bottlenecks (MODERATE);

• Availability and commitment to the project objectives of the Special Tender Committee in charge of approving the procurement activities at different stages (MODERATE);

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• Lack of consistency between the Government’s different agencies regarding incentives to procurement civil servants staff (SUBSTANTIAL).

Mitigation

• To ensure that both implementing agencies develop and maintain a sound and robust coordination mechanism necessary for meeting component and project development objectives, the matrix of roles and responsibilities of the agencies shall be incorporated in the Project OM. To ensure that all parties provide periodic reporting of progress and results, the Legal Agreement will reference the Project Operational Manual and the coordination procedures within.

• At the MPWH, assign a procurement and contract management as focal point for coordination purposes with MoE.

• Use of the procurement plan as a monitoring tool for processing the activities.

• Initiate the electronic archiving at MoE.

• Specialized training and incentives for GBD/GTD (MoPWH) and MoE public servants. 12. The overall project risk for procurement is MODERATE. The assessment of the procurement capacity of the implementing agencies conducted in October 2008 rated the risk of implementing procurement as “Substantial” as per the World Bank new defined rating system) due to the procurement arrangements. This rating was upgraded to “Moderate” subject to the proposed mitigating measures. Also, ERFKE II is building on ERFKE I successful implementation. Significant improvements in the procurement organization have been brought to MoE Department and GBD/GTD (MoPWH) to mitigate encountered challenges as those related to technical specifications and contract management. C. Procurement Plan 13. At appraisal, for project implementation, the procurement plan providing the basis for the procurement methods was developed. It was based on unit costs agreed during the mission. Packaging of the activities was based on the information gathered on the private sector structure and absorption capacity. For coordination purposes and consistency, each agency will maintain its own Procurement Plan, with the DCU providing the procurement plans to the World Bank for approval. During appraisal, these plans were agreed between the Borrower and the Project Team. The procurement plan will also be available in the project’s database and in the Bank’s external website. The procurement plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

D. Frequency of Procurement Supervision 14. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended a supervision mission once every 6 months and a yearly visit to the field to carry out a post-review of procurement actions. E. Details of the Procurement Arrangements Involving International Competition 15. As a consequence of the assessed project procurement risk, and on the basis of good procurement processing during ERfKE I, and in line with Bank policies, the prior review thresholds have been increased. By negotiations, the Bank will review the first bidding documents for national competitive bidding on Goods and Civil Works; and for Shopping contracts. If found satisfactory, they will be

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approved for use as Standard Bidding Documents in the project subsequent Bank-financed goods and civil works procurement, and for Request for Quotations in the case of Shopping. 1. Goods, Works, and Non Consulting Services (a) Prior Review Thresholds: Procurement Decisions subject to Prior Review by the Bank as stated in

Appendix 1 to the Guidelines for Procurement:

Procurement Method Prior Review Threshold

1. ICB (Goods) >=US$3,000,000 2. NCB (Goods) Standard Bidding Document 3. ICB (Works) Not Applicable 4. NCB (Works) Standard Bidding Document 5. Shopping (Goods) Standard Bidding Document 6. Shopping (Works) Standard Bidding Document 7. Direct contracting All 8. Innovation Fund As defined by the operational manual thresholds

(b) Methods Thresholds:

Procurement Method Method Threshold

1. ICB (Goods) No threshold 2. NCB (Goods) <= US$500,000 3. ICB (Works) Not applicable 4. NCB (Works) <= US$4,500,000 5. Shopping (Goods) <= US$50,000 6. Shopping (Works) <= US$50,000 7. Direct contracting No threshold 8. Innovation fund As defined by the operational manual thresholds

(c) Prequalification. NA (d) Procurement Plans of Goods and Works

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75

76

77

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2. Consulting Services

(a) Prior Review Threshold: Selection decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines Selection and Employment of Consultants:

Selection Method Prior Review Threshold

1. Competitive Methods (Firms) > = US$1,000,000

2. Government-owned universities and research institutes

All

3. Single Source (Firms) All

4. Individual Consultants > = US$300,000

5. Governed-owned university professors or scientists from research institutes

All

6. Single Source (Individual) All

7. Innovation fund As defined by the operational manual thresholds

(b) Methods Thresholds:

Selection Method Method Threshold

1. QCBS (Firms) No threshold 2. CQS, FBS, LCS <200,000 3. Single Source (Firms) No threshold 4. Individual Consultants No threshold 5. Sole Source (Individual) No threshold 6. Innovation fund As defined by the operational manual thresholds

(c) Procurement Plans for Selection of Consultants

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82

Annex 9: Economic and Financial Analysis

JORDAN: Education Reform for the Knowledge Economy II 1. The potential returns to investment in education are now very well-established in myriad studies both inside and outside the Bank (See Hanushek and Wößmann 2007 for, perhaps, the most prominent and definitive work but there are many more). Increasingly, there is consensus that these returns are most closely linked to improvements in educational quality (most often measured in terms of testable cognitive skills development). The quality of a country’s education system is viewed increasingly as an investment in human capital—one that can pay large dividends in terms of lifetime outcomes for individuals and economic growth and social stability for a country. However, there is also a growing consensus that the returns to simply increasing years of attainment are negligible if the schooling associated with that attainment does not enhance the cognitive skills demanded by the labor market. 2. The country of Jordan provides a case that, in part, supports these general trends, while also presenting some confounding underlying conditions and results (as discussed below). However, several overarching points are critical: the quality of education must improve while the returns to quality education must also improve. ERfKE I began reform processes that appear likely to pay dividends and ERfKE II appears well-tailored to address the continuing need to improve the quality of education over a sustained period of time (a decade or more). 3. This Economic and Financial Analysis explores and examines the plausible impacts of ERfKE II on the improvement of educational quality, the increase in educational attainment, the potential returns to both the individual (e.g., higher earnings) and the country (e.g., higher growth), and sustainability and financial viability. After setting the comparative context for educational attainment and quality in Jordan, the analysis performs some of the most common economic analyses (e.g., returns to schooling etc.). The review then discusses why, in the Jordanian context, such analyses lend important, though possibly limited, insights into the likely impacts of ERfKE II. However, combined with other recent studies on various aspects of education reform in Jordan (e.g., a series of eight project preparation studies commissioned by GoJ and analytic work in the Bank and by Al Manar in Jordan), additional conclusions regarding the value of the ERfKE II investments are made. 4. The over-arching conclusion is that, given the best available data and analytic work, the proposed ERfKE II program is both financially sustainable and economically sound, provided that some achievable gains in efficiency (to which the GoJ seems committed) are realized. Comparative Context for Educational Attainment and Quality in Jordan 5. In terms of attainment in a comparative context, Jordan has traditionally faired well by key comparisons. For instance, controlling for Jordan’s level of economic development, secondary enrollment is higher than might be expected (see arrow for Jordan, above the regression line, in Figure 1, near Bolivia, Jamaica and Guyana). In addition, UNESCO (2007) reports that secondary enrolment rates in Jordan are more than 20 points higher than Arab states in general. Educational attainment is not by any means irrelevant and the aspects of ERfKE II that support continued improvements are indeed important for reasons discussed later in this section.

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Figure 1: Secondary GER Relative to Per Capita GDP

6. However, it is the package of ERfKE II reforms aimed at enhancing education quality (largely Components 1 through 4 but also including some aspects of Component 5) that are most critical to assess for Jordan. As shown in Figure 2, there appears to be little relationship between increased educational attainment and economic growth if the education obtained is not of high quality. The comparative results for Jordan are striking in that it is the country with the lowest return for increased years of attainment alone (i.e., in the absence of improvements in quality). Jordan is, however, making significant progress in improving student learning – a main indicator of quality improvement. Its performance in international assessments has been increasing since the early 1990s. In fact, in the 1991 International Assessment of Educational Progress, out of 20 participating countries, Jordan finished ahead of only Brazil and Mozambique in the mathematics and science tests for 13-year-olds. There was a marked change in the 1999 Third International Mathematics and Science Study (TIMSS), where out of 38 countries, Jordan finished ahead of six (Iran, Indonesia, Chile, Philippines, Morocco and South Africa) in mathematics and ahead of eight (Iran, Indonesia, Turkey, Tunisia, Chile, Philippines, Morocco and South Africa) in science – although TIMSS is not strictly comparable to IEA. Jordan demonstrated continued improvements in quality as evidenced in 2003, where its TIMSS science scores improved to 475 from 450 in 1999, an increase of 25 points, or 0.25 standard deviations, which is a significant increase, equivalent to about a whole year of learning. In 2007, Jordan continued to improve, surpassing several countries which had a similar or slightly higher performance in 1999. In fact, between 1999 and 2007, no other country improved as much in science as did Jordan (Figure 3).

Zimbabwe

Zambia

Yemen, Rep.

Vietnam

Venezuela, RB

Vanuatu

Uzbekistan

Uruguay

United States

Uganda

Trinidad and Tobago

Tonga

ThailandTajikistan

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MoldovaMexico

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Lao PDR

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Jordan

Japan

Jamaica

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Hong Kong, China

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Guatemala

Greece

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Gabon

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Ethiopia

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Equatorial Guinea

El SalvadorEcuador Dominican Republic

Dominica

Denmark

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Colombia

China

Chile

Chad

Cameroon

Cambodia

Burundi Burkina Faso

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MoldovaMexico

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Kenya

Jordan

Japan

Jamaica

ItalyIsrael

Ireland

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Hong Kong, China

Guyana

Guatemala

Greece

Ghana

Germany

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Gabon

France

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Equatorial Guinea

El SalvadorEcuador Dominican Republic

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Denmark

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Colombia

China

Chile

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Panama

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New Zealand

Netherlands

Nepal

Morocco

Mongolia

MoldovaMexico

Mali

Malaysia

Malawi

Macao, China

Luxembourg

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Kyrgyz RepublicKorea, Rep.

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Jordan

Japan

Jamaica

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Guyana

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Germany

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El SalvadorEcuador Dominican Republic

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Figure 2: Educational Attainment and Growth With Quality Control

Source: Hanushek and Wößmann (2007)

Figure 3: TIMSS Science Scores for Select Countries, 1999-2007

TIMSS Science

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Iran

Romania

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7. Nevertheless, analysis of recent PISA results (World Bank, 2008)6 indicate that given its endowments (such as school, student, and household characteristics), Jordan should likely be performing even better in terms of cognitive skill development. By Jordan’s own internal assessment systems, there is significant need for quality enhancing reforms. Pass rates on the general secondary certificate GSC (essentially the secondary school exit exam also known as the Tawjihi) are quite low (about 55 percent of regular track students and under 35 percent of students from “irregular” tracks), as are results on Jordan’s own national achievement tests which indicate the majority of 8th and 10th grade students are not proficient in any of the subjects (Science, Math, English, and Arabic.) In addition, the Tawjihi, like many exams of its kind, does not measure the same kinds of cognitive skills as does PISA, and therefore it creates a strong incentive against education quality. ERfKE II directly addresses this need to transform the exams, and it is not insignificant that increasing scores on school, national, and international assessments is the first ERfKE II project development objective and key indicator, before completion rates and enrolment rates. In addition, the MoE is well aware of the challenges, having commissioned some comprehensive analyses of the assessments (Tognolini, 2006), and Tawjihi reform is explicitly referred to in the results framework. 8. But understanding the importance of educational quality and understanding how to foster education quality in a specific country context are quite different. How can education reforms effect changes that are likely to improve education quality? This is a fundamental question and one for which the research on the relationship between education quality and economic growth (and other economic research) yields only suggestive, even somewhat dissatisfying answers.7 Nevertheless, after first examining traditional returns to schooling, the analysis turns to the potential for ERfKE II to promote quality enhancement later. Traditional Economic Analyses of Education in Jordan 9. Figure 4 presents result of analyzing wages for Jordanians by the level of their educational attainment, relative to those who have not completed any level of schooling but are able to read and write.8 Education is a worthwhile investment in Jordan; however, the results are confounding in an international context. Those who complete preparatory and secondary schooling have wages about 25 to 30% higher than those who can only read and write. While there appears to be little differential for those completing primary schooling, this may be due to the fact that the Jordanian system defines primary schooling differently from the international standards used in the surveys upon which Figure 4 is based. In fact, the figure for completing preparatory schooling is quite possibly most accurately interpreted in Jordan as completing “basic education” (up to approximately age 15), especially since enrollment rates are so high (essentially universal) and dropout rates so low in primary schooling.

10. Those with vocational education earn hardly any more than those who can only read and write, as found in previous studies (e.g., ERfKE I PAD) indicating that the returns to vocational education are particularly low. This speaks to the clear need to improve the quality of vocational education in Jordan, as

6 “Using PISA to Understand the Determinants of Learning in the Middle-East and North Africa Region,” HDNED. 7 For whatever reason, the research has tended to focus on institutional aspects and components that, it is claimed, tentatively

appear to hold promise for improving quality: Centralized exams, Accountability, Choice, School autonomy, Performance incentives, Supply side interventions, and Demand side interventions, teacher preparation and training, to name a few. Each of these strategies or policies may hold promise, but the evidence thus far is not universally compelling and in and of themselves they provide few useful insights for policymakers looking to design reforms likely to improve classroom practices that will improve learning.

8 Note that one would normally do the comparison compared to illiterates; however, the household survey did not capture any illiterates and thus we are unable to perform that comparison. Later, we consider the implications given our best guess as to what accurate data on wages for illiterates would tell us.

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well as the match with the demand-side needs of the labor market. In this sense, ERfKE II’s focus in Component 4 on vocational education is important.9 But the most dramatic wage differentials are for those who complete university and post-graduate studies who earn, respectively, 98 percent and over 240 percent more.10 These differentials for those attaining higher education have in fact grown during the period of ERfKE I and indicate that the primary benefits of completing the basic and secondary education cycle continue in Jordan to be the access to higher education it enables. This result is undesirable and thus one of the primary goals of ERfKE II is to bridge this gap. 11. The study also included somewhat typical Mincerian analyses of returns to schooling, and the results support the above analysis. The results are shown first in Table 1, which shows overall a return to educational attainment (i.e., the expected increase in the wage from an additional year of schooling) of 6.3 percent per year, which is quite respectable and justifies general investment in the education sector even if it were only to achieve increased educational attainment as opposed to quality improvements. Naturally, both the Bank (and other donors) and GoJ expect to achieve far more with ERfKE II than simply increased educational attainment, but the point is worth making as a benchmark, especially since a large proportion of the program is devoted to school construction (Component 5) and a significant portion of that construction is to address the needs of a growing school-age population.11

Figure 4: Wage by Level of Education (compared to being able to read and write)

0%

50%

100%

150%

200%

250%

elementary preparatory vocational

apprenticeship

secondary B.A., B.Sc. M.A., M.Sc.

Level of Education

Source: Authors calculations from 2006 Household Income and Expenditure Survey

9 Although we cannot say that the proposed reforms will have the intended effects (including a positive impact on wages), the

reforms appear to be based on international best practice and given the modest level of investment in that component, it seems clearly justifiable.

10 While not shown in the figure, it is interesting to note that those attaining an intermediate diploma after secondary school earn 50% more, and those earning a Ph.D. earn 540% more.

11 In addition, the reason why one normally wants to make these comparisons to those who are illiterate as opposed to those who are able to read and write is to get a basic idea of what educational attainment add compared to, essentially, no educational attainment. As stated above, due to the data in the survey, we are unable to make this comparison. However, if we assume that the wage differential between those who are illiterate and those who are able to read and write is the same now as it was when the ERfKE I PAD analysis was done, that differential would be about 10%, and each of our wage differentials reported in figure 4 would be that much larger.

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12. However, this analysis restricts the results on the returns to schooling to a linear relationship across all levels of education that is constant returns to schooling across basic and higher education. As indicated by the wage differentials reported above, this assumption seems quite restrictive, in fact unlikely, and in the Jordanian case particularly misleading with respect to an investment in basic education. Table 2 presents results in which the model allows the returns to schooling to differ across the years of basic/secondary and higher education (i.e., during the first 12 years and the years beyond). These results indicate a large differential between the returns to basic/secondary and higher education: The return to schooling is 3.8 percent during the years of basic education, and 9.3 percent during the years beyond.

Table 1: Mincerian Returns to Schooling Regression Results, ln (wage) = independent variable

Coefficient Standard Error t-statistic P>t Age 0.73 0.00036 200.33 0.0 Age Squared -0.00066 4.90e-06 -134.44 0.0 Years of Schooling 0.063 0.00021 307.34 0.0 Constant 5.26 0.0063 828.39 0.0 N=1,009,509 Adj R2 = 0.22

Table 2: Returns to Schooling Regression Results, Basic and Higher Education Disaggregated, ln (wage) = independent variable

Coefficient Standard Error

t-statistic P>t

Age 0.73 0.00036 200.81 0.0 Age Squared -0.00067 4.89e-06 -137.82 0.0 Years of Schooling up to 12 Years 0.38 0.00037 105.01 Total Years of Schooling > 12 0.93 0.00042 221.32 Constant 5.5 0.007 786.5 0.0 N=1,009,509 Adj R2 = 0.22

13. These results are consistent with those presented above as well as with a relatively large literature documenting similar results in the Jordanian context. They have several implications for the analysis of the ERfKE II investment program. First, investment in pre-university education that is simply “more of the same” has positive returns of nearly 4 percent; however, these are considerably lower than the linear average of 6.3 percent and the 9.3 percent of higher education. Thus, the ERfKE II investment program is on target in allocating a large amount of funds (about one-third of the total) to activities devoted explicitly or implicitly to increasing the returns to basic education and, thus, closing the gap with higher education (Components 1 through 4). In addition, as discussed in more detail below, parts of Component 5 can also be considered in this category. Second, since it is clearly impossible to attend university without finishing secondary, the typical Mincerian equation understates the benefits to finishing primary and secondary schooling. 14. It is worth reviewing some of the factors underlying these results that make Jordan different from many other countries with respect to returns to schooling. One important factor is the nature of the labor market, which is after all the primary source of demand for education and graduates with valued cognitive and non-cognitive skills: it is a force that “pulls” students through the school system and helps determine key decisions along the way. Assaad and Amer (2008)’s study for the Al Manar project summarizes aptly the anomalies in the labor market: (i) wages in the public sector are higher than those in the private sector, which skews educational and labor market decisions and outcomes, including contributing to the high

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rates of return to university education; (ii) unemployment levels are high, and although there is demand for low-skill labor, Jordan “imports” much of this labor despite having an ample supply of unemployed Jordanian nationals who could seemingly fill such jobs; (iii) female educational attainment and cognitive skill development is generally higher than males, on the one hand, but female labor participation is among the lowest in the world and females earn less than males; and (iv) the public sector employs a disproportionate share of the work force (especially females) and pays wages that surely do not correspond to marginal productivity. 15. The education sector is profoundly impacted by these underlying labor market conditions, even though many are beyond the MoE’s (or ERfKE’s) sphere of influence. Nevertheless, the MoE must deal with some of the repurcussions, such as the increasing exit of males to enter the labor force after secondary education. In addition, many aspects of the reforms articulated in the ERfKE II program (especially Components 2, 3, and parts of 4) seem well suited to building better bridges between the supply-side of educated citizens and the demand-side of the labor market (discussed more below). But as mentioned elsewhere in the PAD, the very complex processes of improving both education and labor-market outcomes will require coordination with and concomitant (and complementary) reforms by MoL and others. Some might argue that, due to these factors, pre-university education is not a so-called “binding constraint” to development in Jordan; however, as Nobel Laureate Economist Michael Spence (2005) made abundantly clear, one may not always be able to show unequivocally that education is a binding constraint, but we know that countries that do not consistently and efffectively invest in education do not grow as well as those that do. The Value of Selected ERfKE II Investments 16. As mentioned, Jordan’s generally high enrolment rates, low repetition rates, and low dropout rates (at least up to the final years of secondary school) make the standard economic valuations less relevant for judging the soundness of the ERfKE II investment program than in countries where educational attainment and efficiency rates are much lower. The “low hanging fruit,” so to speak, has been picked in Jordan, much of it during the past two decades. However, as part of the development of the ERfKE II program, the MoE with the support of the Bank, commissioned a series of eight very detailed preparation studies that, along with other analytic work at the Bank, provide considerable insights into the potential value-added and returns from the various components of the ERfKE program components. The analysis concentrated on findings from three preparation studies and one piece of Bank analytic work in particular: Education Finance (Georgina Rawle, 2008); School Planning (Bruno Parolin, 2008); Teacher Utilization (Rawlinson and Allak, 2008); and “Using PISA to Understand the Determinants of Learning in the Middle-East and North Africa Region,” (World Bank, HDNED, 2008).12 Investing in Non-personnel Recurrent Expenditures likely to Enhance Quality 17. Component 3 is the second largest of the five ERfKE II program components (about US$50 million) as well as a component with aspects clearly related to the improvement of education quality in a manner supported by both the international literature on investing in education quality and the assessment, albeit suggestive, by Rawle (2008) for Jordan. As Rawle (2008: 42) discusses, Jordan’s share of recurrent educational expenditure dedicated to personnel and salaries, while falling, is still high (compared, for example, to the OECD average of 20 percent). Recurrent expenditure overall is also low compared to infrastructure investment. Table 3 shows that across all education programs and levels personnel expenses (mostly salaries) account for about 14 percent of total recurrent spending, less than half of which is devoted explicitly to quality related activities. Component 3 focuses on Teaching and

12 To a lesser extent, we used the preparation studies on Decentralization, Pre-Service Teacher Training, Vocational Education

Reform; and Early Childhood Education.

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Learning Resources, with specific focus on Teacher Policy & Professional Development and Curriculum, Assessment, and Learning Resources, which have been shown internationally to be related to improvements in education quality. The non-personnel recurrent expenditures portion of the budget has been growing under ERfKE I and promises to increase further under ERfKE II. In fact, as mentioned, the non-infrastructure portion of the ERfKE II is about a third of the overall program, compared to about 20 percent in ERfKE I.

Table 3: Per Student Public Recurrent Spending on Education by Program, 2007 (JD)

KG Basic Secondary Vocational All Programs

Total 331 317 504 630 376 Personnel expenses 275 277 434 560 325 Operating costs 5 5 5 5 11 Textbooks 10 10 10 10 10 School feeding 18 10 - - 9 Quality related activities 22 15 55 55 21

Share of total expenditure

Personnel expenses 83% 87% 86% 89% 86%Operating costs 1% 2% 1% 1% 3%Textbooks 3% 3% 2% 2% 3%School feeding 5% 3% 0% 0% 2%Quality related activities 7% 5% 11% 9% 6%

Sources: Rawle (2008) Education Finance Preparation Study

Addressing Secondary School Dropout Rates

18. One area where efficiency gains can be made is in the dropout rates from the final years of secondary schooling. Rawle (2008), for instance, asserts that at present it costs 20 percent more than is hypothetically necessary and Figure 5 shows the drop off in Grade-specific enrolment rates—which capture both the effects of dropouts and repetition – in the later years of schooling along with a growing gender gap favoring girls. However, even improvements in this area are likely to be closely related to educational quality. For instance, in one of the only examples of its kind for a developing country (Egypt), Hanushek, Lavy, and Hitomi (2006) show that those students are highly sensitive to education quality which impacts their enrolment decisions. They furthermore assert that “because of this behavioral linkage, there is an achievement bias such that common estimates of rates of return to years of school will be overstated.” These results dovetail with Murnane et al (2000) and others in the U.S. and other developed countries that the increase in quality, as proxied by good assessments of cognitive skills, seems to positively impact decisions regarding years of attainment, creating in a sense an additional “bonus” in the returns to education, growth and increased human capital.

19. The problem is particularly acute in vocational secondary where low quality and poor labor market prospects lead to dropout rates as high as 18 percent. And at the same time, unit costs are the highest of all pre-university tracks. While that is not unusual, the level of disparity (nearly double what is spent on KG and primary school students and almost 40 percent higher than the regular secondary students) seems high. ERfKE II addresses the issue of revamping this sector though Component 4 and articulates a reform vision in line with international best practice. In particular, relationships with the demand side (employers) must be established to foster the proper matches between skills development and labor market needs. If successful, the reform should pay dividends.

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Figure 5: Grade Specific Enrolment Rates1, 2004/05 (%)

50

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80

90

100

110

1 2 3 4 5 6 7 8 9 10 11 12

Grade

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de-

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Source: Rawle (2008) Note: (1) The grade specific enrolment rate for a particular grade is calculated by dividing the number of non-repeating students enrolled in that grade by the number of children in the population of the relevant age for that grade.

Central MoE Planning, Policy, M&E and Organizational Development

20. In addition, Component 2 addresses sector policy development through enhancing and supporting Policy, Planning, M&E, and Organizational Change. This investment (approximately US$17 million) should, thus, help mitigate the risk that Component 3 might not be implemented effectively. Of course, Component 2 itself, if properly implemented, should have a positive impact on education quality in both the short and medium terms, but these impacts are virtually impossible to quantify and there is no reliable, systematic international evidence to support how or how likely these reforms are to enhance quality. On the other hand, it seems clear that countries that do not perform such activities effectively are unlikely to have high-quality education systems, and thus one could argue that the overall investment seems small and likely to pay dividends given the MoE’s clearly stated commitment to these reforms and the foundation laid and “buy in” secured through at least two high profile previous strategic planning documents. But further analysis of this Component lies outside the realm of this Economic Analysis.

Expanding and Improving Early Childhood Education

21. Early Childhood Education (ECE), or Kindergarten (KG) is provided under Components 4 and 5 which will finance and investment of about US$50 Million for an expansion of the KG GER from 51% to 60% via construction while improving quality, alignment with primary education, and fostering parental involvement (which has been shown to be important for poor parents of young children [Al-Hassan and Obeidat, 2008]). While the construction costs dominate, the support services under Component 4 seem well-suited for quality enhancement at both the KG and primary levels. The ERfKE I PAD (pp. 47-49) did an extensive review of the international literature which provides strong support for ECE and expansion of KG. We will not, thus, repeat that review here. The returns are myriad and virtually unassailable, from better health outcomes to improved school performance. In fact, the ERfKE I PAD asserted that “KG attendance is a strong determining factor of school performance, more so than any classroom related factors”; that “the impact of severe disadvantages in early childhood on schooling outcomes cannot be significantly improved through any other alternatives, such as increased resources or remedial programs,” and that “well-targeted ECE programs cost less – and produce more dramatic and lasting results—than education investments at any other level.” The results accrue even more to the poor.

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Al-Hassan and Obeidat (2008) provide results that this is particularly true for Jordan’s public KG schools; that is, the country’s (albeit too small) public sector has been successful in targeting the poor with reasonable quality KG services. Thus, ECE investments in Jordan are likely to be equity-enhancing as well as quality enhancing. It is unnecessary to explore further the likely returns to this portion of the ERfKE II investment program, except perhaps to lament that it is not even larger and more ambitious.

School Construction, Repair and Maintenance

22. Component 5 provides for the lion’s share of the construction and/or expansion of new schools, laboratories and workshops as well as of repairs and maintenance. Again, the generally good enrolment, dropout and repetition rates make economic analysis justifying the investment more challenging using traditional techniques given the data constraints. However, some key insights from World Bank (HDNED, 2008) and other sources provide support for the potential for the investment and reform component to pay economic dividends in terms of quality enhancement, cognitive skill development and, thus, economic growth.

23. For instance, in estimates of the determinants of the most recent PISA scores in Jordan World Bank (HDNED, 2008) finds a significant and positive association with the number of hours of instruction in a subject. In fact, the effect appears to be relatively large (e.g., regression coefficients on the order of 8.5 to 10 points per hour). These results are robust with respect to different model estimations, comparisons of high and low achieving students, and probability of students achieving at a higher proficiency level—in most cases for Math, Reading, and Science.

24. One of the stated goals of the ERfKE II reforms is to eliminate double shifting. Eliminating double-shifting is popular with policy makers and some education analysts, but given that it involves lowering the overall use of infrastructure investments rather than raising them, it is often difficult analytically to make an economic case since sufficient outcome data are not usually available. However, we can deduce from Parolin’s (2008) school planning study that eliminating double shifting can add about 4 hours per week of instruction.13 In addition, we can isolate the costs of eliminating double shifting. The estimated construction cost of eliminating double-shifting is in the order of 31,505,000 JD; if soft costs are calculated as well the figure is in the order of 4,070,952 JD; the total costs over the six-year time period are therefore estimated to be 35,575,952 JD. The approximate number of students that would take from double-shift to single shift schools is 28,872, or approximately 1220JD per student—a one time investment that eventually brings a dividend in hours of instruction (and presumably cognitive skill development) for nearly 29,000 students each year far into the future. Presumably there would also be additional benefits to the elimination of double shifting aside from the isolated effect of the added hours of instruction, and thus in sum this portion of Component 5 seems defensible on economic and education quality grounds.

25. Maintenance and repair funding is currently below what is necessary to preserve the value of the capital investments. Currently the school planning preparation study estimates that about US$50 million dollars is needed over the program period simply to protect the overall stock of investments in school infrastructure from wasting inefficiently. ERfKE II allocates approximately US$25 million to such efforts, which is clearly likely to be worthwhile and pay for itself through lower cost for major rehabilitation in the future, not to mention the potential (if immeasurable) positive effects on learning from fostering a positive, safe, and comfortable learning environment.14

13 Conceivably these could be used at least to add an hour each of instruction in the three PISA subjects—Reading, Math, and

Science—especially given the MoE’s goal to improve teacher utilization and increase teacher work loads. 14 Similarly, the JD3.65 Million to replace or repair unsafe buildings does not require sophisticated cost-benefit analysis to

know that it is a worthwhile investment. Of course this is a small amount of funds but it is over 1 percent of the total program.

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ICT Investment and Incorporation in the “Knowledge Economy” Classroom 26. Unsurprisingly, given the proclivities of most governments for such investment, and especially in Jordan with the stated aim of fostering a “knowledge economy,” ICT investment plays a significant role in the ERfKE II reforms, largely through Component 3. There is little doubt that ICT used well can enhance instruction, but very little evidence that many developing countries have managed to use it well. Jordan is no exception. In fact, World Bank (HDNED, 2008) provides a cautionary tale about the potential returns to such investment in Jordan. While having a computer available for student schoolwork in the home is often positively associated with cognitive skill development, the study finds no evidence that Jordan’s flagship ICT-oriented schools (Discovery Schools) enhance learning above and beyond the family and other characteristics and endowments of the students. Rawle (2008), too, reports results from a recent evaluation of the discovery schools finding them to use ICT inefficiently. For instance “only 20% of surveyed teachers...have their students use ICT once a month or more.” Given these results, it is imperative that the ICT related investment in Component 3 be implemented effectively. This is true for both the explicitly ICT related investments and those related to curricular reform and professional development that must have implicit positive effects on ICT use in schools if the investment in the hardware and software are to pay off.

Decentralization, School-Based Management, and Accountability

27. One common policy strategy for translating educational investment into learning outcomes is to ensure “accountability,” often in conjunction with some form of decentralization, school-based management, and community and parental participation. Indeed, such strategies are highlighted in the prominent policy proposals in ERfKE II through both Component 1, aspects of Component 2, and the ECE strategies in Component 4. While there is little doubt that education quality is unlikely to improve in the absence of strong accountability and well-aligned incentives, there is also increasing doubt that accountability and incentives (as they have been broadly conceived by policymakers in many country contexts over the past two decades) are sufficient for translating educational investments into improved educational quality and improved cognitive skills for students. The assumption, for instance, that most teachers, administrators or bureaucrats know how to improve learning and will do so quickly and efficiently when faced with the proper incentives turns out to be incomplete, at best, and wrong at worst.15

28. Nevertheless, it is also increasingly clear that the school is the most relevant unit of production of education and cognitive skills development within an education system. It stands to reason, then, that a government that cannot even empirically or budgetarily treat or examine schools as units of production (a fact that Rawle, 2008, makes clear is true for Jordan) will be inefficient in educational production. Under the current budget process (which ERfKE II will seek to reform) schools have no real budget at all, except for locally raised funds from parental contributions. Districts officially play a role in developing the initial budget but Rawle (2008) argues that “the absence of soft budget ceilings circulated to each organizational level encourages the transfer of decision-making to the central level.” Thus, successful decentralization and school-based management strategies guided by the principles of subsidiarity and accountability hold promise for quality enhancement and efficiency gains, though the manner and extent to which this happens is very difficult to analyze vis-à-vis economic returns.

15 Elmore (2007) develops two very useful principles for such reforms: the first is the “reciprocity of capacity development”

where every dollar of responsibility decentralized to the school or community level (and these responsibilities could also include incentives for performance, accountability and evaluation systems) must initially be matched with a dollar of capacity development and training (of which no decentralization or accountability reform ever seems to have enough) ; the second is the concept of “backward mapping” in which one recognizes the need to understand how top-down reforms (which decentralization and accountability reforms almost always are) are received in the classroom and then work one’s way backward through the hierarchy to understand how and why it might or might not have the intended effect.

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29. On the other hand, such decentralization also raises concerns for equity by throwing regions and schools more at the mercy of their endowments. There is, for instance, some empirical evidence that well-functioning sub-national units can benefit from decentralization reforms while weaker, generally poorer, jurisdictions may not fare as well (Galliani et al 2008). Thus, significant support and capacity building for more poorly endowed jurisdictions and schools, combined with compensatory programs, are imperative for the long-term success of such reform strategies.

30. Indeed there are considerable regional disparities in a range of important characteristic such as private household expenditure on education, access to higher education, and (according to the economic analysis of the HERfKE PAD) probably in quality of basic education and, thus, performance on the Tawjihi and other national assessments. On the other hand, the TIMSS results reported in World Bank (2007) show that the disparities between high performers and low performers in Jordan, while both significant and worse than the international average, are among the best in the MENA region. Nevertheless, inequities, always a concern, require re-doubled and in some cases new efforts to address in a decentralizing context, especially given that to date public educational expenditures in Jordan have been somewhat pro-poor and political participation (given the nature of the state as a Kingdom) is incipient. And after all Hanushek and Wößmann (2007) and others have shown that inequality of educational quality fosters income inequality, which may impede economic development.

Financial Sustainability and Viability of MoE Reform Agenda

31. The overall program costs for ERfKE II (US$430 million) amount to approximately on average 8% of the total MoE budget over the 6 years period (Table 4). The overall recurrent costs associated with the ERfKE II program are estimated to be less than 1 percent, and are similar to that estimated for ERfKE I. These recurrent costs implications are reasonable even with the increased emphasis on activities requiring resources and support (from maintenance of ICT, to teacher development and training, to school-based management and capacity building). Taking into account the Government’s 3 year Medium Term Expenditure Framework (MTEF), and expected contributions from donors, the financing gap for the 6 years of the reform program amount to approximately US$153.6 million (to be confirmed by negotiations).

Table 4: Program Cost and Financing of the MoE Reform Agenda

EDUCATION REFORM FOR THE KNOWLEDGE ECONOMY II PROGRAMProgram Costs and Financing ($US millions), 2009-2015

Cash Flow

Scenario 1: 6 Years TOTAL 2009 2010 2011 2012 2013 2014 2015

ERfKE II Program Costs 407.7 30.0 64.4 78.7 75.9 77.0 45.3 36.4

WB 60.0 0.2 5.3 15.7 22.6 15.8 0.2 0.2USAID 117.0 25.5 36.0 30.0 12.5 9.0 4.0 0.0CIDA 17.0 0.0 3.0 4.0 4.0 4.0 2.0 0.0JICA 2.5 0.0 1.0 1.5 0.0 0.0 0.0 0.0

Government Counterpart Funds 1 57.6 4.3 4.9 8.6 11.9 12.8 7.9 7.3

Financing Gap 153.6 0.0 14.2 18.9 24.9 35.4 31.2 28.9

1 20% of Non-Grant Program Cost; 2009 Government counterpart based on actual 2009 budget allocation

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Opportunities for Cost-Savings Supported by ERfKE II 32. In addition to: (i) those portions of ERfKE II investment likely to raise quality, cognitive skills, and public and private returns; and (ii) the major cost saving policy goals, there are many potentially achievable cost savings opportunities articulated in considerable detail in the preparation studies commissioned by the MoE in support of the ERfKE II program. These cost saving opportunities may not improve quality per se but if they can save costs without hurting quality, that both helps justify the investment program and frees up resources for other quality enhancing activities, thus improving both the economic justification and the financial sustainability of the program. A few examples include: Explore additional increases of STR’s to reverse the worrisome trends in Figure 6.

Figure 6: Teachers and STR in MoE Schools, 2003/04-2007/08

• Reduce the proportion of non-teaching personnel, which will mean reversing current trends

toward less efficient administration during a period of enrolment expansion. • Modify the secondary curriculum to reduce the number of “specialist” teachers and provide

teachers the capacity to be more flexible and able to teach a wider range of subjects. • Eliminate rented schools because doing so generally allows for higher STR’s since many of the

rented spaces are small. ERfKE II and the school planning study discuss the elimination of rented schools on the basis of improved learning environments and reducing overcrowding, but in addition, while rented schools are often overcrowded, they also often have low STR.

• Explore more multi-grade classes in remote areas with low enrolments and STRs. • Explore other means to increase the currently low teacher workload and increase STR, which is

relatively low by regional standards. (This might, but need not necessarily increase class size.) In fact, the simulations in the Teacher Utilization preparation study show that achieving the MoE’s own stated policy goals for increasing STR’s gradually across all levels of schooling (at different rates) would save JD84 Million by 2012/13 and JD 97 Million 6 years later. This proposed scenario also includes investing some of these savings in teacher incentives which are virtually non-existent now but would grow to 18 percent of recurrent expenditures in 2013.

48,000

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000

2003/04 2004/05 2005/06 2006/07 2007/08

num

ber

of te

ache

rs

16.0

16.5

17.0

17.5

18.0

18.5

19.0

19.5

20.0

20.5

STR

teachers STR

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Improve school location and construction

• Examine the underlying drivers of the high costs of school construction, among the highest in the region, which includes KG classes (US$83,000) costing twice what other classes do (US$43,000).

• Continue to develop better school mapping and GIS capacity to locate schools where they are most needed.

• Develop a better system of student transportation, in particular to mitigate the phenomena of over- and under-utilized schools. Many underutilized schools are located in the same catchment area as over-utilized schools and remarkably about three quarters of overcrowded schools are within 1km of and under-utilized school, and about half are within 500 meters. In addition, the problem of school location seems to be worse with newer schools; that is, newer schools are closer to under-utilized than to over utilized schools. (Parolin, 2008)

Other potential cost saving opportunities

• Explore cost savings in textbook provision through reducing the number of required texts and studying the overall cost efficiency of the development, design, publishing and distribution system.

33. Overall, while some are difficult to predict and quantify precisely there are quite a number of cost saving reform options the MoE could pursue through ERfKE II that would improve the financial sustainability and, consequently, perhaps the economic returns as well. In Conclusion: Coming Back to a Focus on Quality, Human Capital Development and Growth 34. Hanushek (2005) makes the point that education reform is a long process, and this is especially true if enrolment and dropout rates are already strong. He demonstrates how a reform that improves cognitive skills by 0.5 standard deviations, even if it took 20 years to do so, would, after 35 years increase economic growth enough for the growth dividend from the reform itself to pay for all of a country’s basic education sector. Alternatively a full standard deviation improvement brings a full 1 percent gain in GDP and even if it took 50 years would raise incomes by 64 percent. Will ERfKE II improve PISA scores by 23 points (0.5 standard deviations) in 20 years? By 47 points in 30 years or even 10 years, or will it fail to improve quality at all. Will it improve the satisfaction of key stakeholders with the education system? It is, of course, impossible or at least inappropriate to say with full confidence. As Hanushek (2005) points out:

“Unfortunately, reforming school policies and improving performance are not just a matter of will, or of providing extra resources to schools. If the effectiveness of different resources – or combinations thereof – were known, it would be straightforward to define an optimal reform strategy. The problem is that we do not currently have enough credible knowledge about how best to use new resources.”

35. Given the nature of the economy, the labor market, the culture toward work and gender differences, the state of the school system, and data and time constraints, the analysis explored how plausible it is that ERfKE II is a good investment and contains a good set of policy reforms for Jordan. This analysis indicates it is a good economic investment for Jordan, one that is affordable and that, while

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not without risks, will pay dividends for its present and future citizens under a range of possible scenarios, some under the control of the MoE and some not. Additional References Al-Hassan, Suha and Osama Obeidat (2008) Evaluation Study of the Early Childhood Development ProgramUnder the Education Reform for Knowledge Economy (ERfKE) Project, Amman, Jordan: The National Center for Human Resource Development (NCHRD) Assaad, Ragui and Mona Amer (2008). “Labor Market Conditions in Jordan,” NCHRD and CIDA. Elmore , Richard F.: School Reform from the Inside Out: Policy, Practice, and Performance. Cambridge, MA: Harvard Education Press, 2007 Galiani, Sebastian ,Paul Gertler, and Ernesto Schargrodsky (2008). “School decentralization: Helping the good get better, but leaving the poor behind” Journal of Public Economics, Volume 92, Issues 10-11, October 2008, Pages 2106-2120 Hanushek, Eric A. (2005) “Why Quality Matters in Education,” Finance and Development, June 2005 , Volume 42, Number 2 Hanushek, Eric A. Victor Lavy, and Kohtaro Hitomi (2006). Do Students Care about School Quality? Determinants of Dropout Behaviour in Developing Countries, NBER Working Paper Series,, NBER WORKING PAPER SERIES, WORKING PAPER 12737 Hanushek, Eric A. and Ludger Woessmann (2007). THE ROLE OF SCHOOL IMPROVEMENT IN ECONOMIC DEVELOPMENT, NBER WORKING PAPER SERIES,Working Paper 12832 Spence, Michael (2005) “Rethinking growth.” The World Bank, Keynote address, Poverty Reduction and Economic Management (PREM) Conference, PREM Week, available at http://info.worldbank.org/etools/BSPAN/PresentationView.asp?PID=1425&EID=711 (accessed 1/7/09) Murnane, Richard J., John B. Willett, Yves Duhaldeborde, and John H. Tyler (2000). "How Important Are the Cognitive Skills of Teenagers in Predicting Subsequent Earnings?" Journal of Policy Analysis and Management, Vol. 19, No. 4 (Fall), pp. 547. Tognolini, Jim (2006) Ways in Which the Effectiveness of the National Assessments and the National Final Examinations (Tawjihi) Might be Enhanced. Report prepared by the Australian Council for Educational Research (ACER) for the Ministry of Education of the Hashemite Kingdom of Jordan. UNESCO (2007). Global Monitoring Report. Paris: UNESCO World Bank (2002). Hashemite Kingdom of Jordan: Cost Efficiency and Education Spending, Human Development Group, MENA. World Bank (2007) Arab Republic of Egypt—Improving Quality, Equality, and Efficiency in the Education Sector: Fostering a Competent Generation of Youth, Human Development Group, Middle East and North Africa Region World Bank, (HDNED, 2008) “Using PISA to Understand the Determinants of Learning in the Middle-East and North Africa Region,” The World Bank, HDNED

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Annex 10: Safeguard Policy Issues

JORDAN: Education Reform for the Knowledge Economy II Introduction

1. The development objectives of the overall ERfKE Program are to transform the education system at the basic and secondary levels to produce graduates with the skills necessary for the knowledge economy.

2. The development objective of ERfKE II is “Students enrolled in all streams of pre-tertiary education in Jordan will have increased levels of skills necessary for participation in the knowledge economy.” This will be monitored through the following key indicators:

• Increase in scores on national assessments aligned with knowledge economy skills. • Increase in completion rates/decrease in dropout rates. • Increase in enrollment rates.

Environmental Safeguards

3. The project is classified as environmental category B and the World Bank safeguard policy on environmental assessment (OP 4.01) is triggered. No irreversible environmental impacts are anticipated from the proposed ERfKE II Project. Project activities that could have site-specific and temporary minor impacts would be relating to Component 5 due to construction, rehabilitation and extension of schools. Regarding the construction of schools, most of the works are related to rehabilitation (minor repairs) and expansion (addition of classrooms) of existing schools and construction of replacement schools to reduce overcrowding and replacement of unsafe buildings. During ERfKE I, the MoE had developed design and construction guidelines to address social, environmental and cultural heritage issues that may be encountered during the implementation of school construction programs. An architectural guidelines study was also prepared which included environmental aspects.

4. A generic Environmental Management Plan (EMP) was prepared and implemented during ERfKE I. This EMP establishes the guidelines (included in this annex) for the preparation of site-specific EMPs, which will be done as part of the design and implementation of such facilities. The decision to select a given site would depend to a great extent on the feasibility of including mitigation measures to properly address environmental, vulnerability to natural hazards, social and cultural heritage issues that may be encountered during the design and implementation of the proposed project.

5. Subcomponent 5.3 on Maintenance and Management of School Buildings will include an oversight on the satisfactory implementation of environmental measures. It will also include a comprehensive and appropriately funded preventative maintenance system for buildings, facilities, and related infrastructure, including the provision of adequate training for relevant authorities.

6. Experience gained in the implementation of First and the Second Human Resources Development Sector Investment Projects (HRDSIL I and II) as well as ERfKE I which included construction of new buildings, will benefit ERfKE II. This experience has shown that three types of impacts could be possible, namely, sewage disposal, solid waste disposal and increased vehicular traffic in the vicinity to the schools. Other impacts, such as those associated with construction, topographical and geological conditions at the sites would be mitigated by the proper selection of sites following environmental criteria which will be included in the Project Operational Manual (POM). Additionally, MoE has prepared an Architectural and Engineering Guidelines dated September 2008 which includes environmental considerations for site selection criteria such as: slope of site; soil and sub-soil conditions; access to electricity; sewer and water supply; and natural habitats. It also includes a section on hygiene safety

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environment in schools. A recent school utilization study indicates that the number of MoE students is expected to increase by 124,634 between 2008 and 2013. It is estimated that there will be a need to provide an additional 3,360 classrooms over this time period.

Institutional and Regulatory Set-up Relative to Environmental Management

7. Environmental management in Jordan falls under the responsibility of the Jordan Ministry of Environmental Policy and Enforcement. However, construction permits for schools in urban areas are issued by the concerned municipalities and the Water Authority of Jordan (WAJ). WAJ deals with permits for connections to water and sewerage services, where they exist, or permits to provide in-situ water wells and sewage disposal facilities. Municipalities issue building permits for compliance with zoning and building codes, review off-site drainage and access roads, and review requirements for the provision of solid waste disposal services.

Identification and Role of Stakeholders and Implementation Arrangements

8. The main stakeholders are the MoE and the Government Buildings Directorate (GBD) of the Ministry of Public Works and Housing, the concerned municipalities, concerned NGOs, the community at-large and beneficiary population.

9. MoE will be responsible for the overall implementation of the project, and GBD will be responsible for the implementation of the civil works component. Directorate of Planning under MoE will be responsible for site selection and identification of needs. Directorate of Buildings and International Projects (DBIP) under MoE will be responsible for providing standard school designs. DBIP will accomplish this in direct coordination with GBD, that will be fully responsible for the implementation of all civil works contracts under the project.

10. MoE had provided relevant training to its staff in proper administration of environmental and social concerns, both in terms of addressing environmental and social issues as well as the welfare of beneficiary communities during ERfKE I. These trained engineers from MoE have been transferred to GBD for the life of ERfKE II, which also helps with continuity of implementation. GBD will further enhance the capacity of its staff, as required on a need basis. The MoE has preparing a school mapping plan to identify the location of replacement schools. During the course of such studies, the concerned municipalities and concerned stakeholders were consulted. Similarly, the Ministry of Environment, the Department of Antiquities and WAJ were consulted, as needed, to determine the specific requirements related to access roads and streets, availability of basic infrastructure services and requirements, and the possibility of proximity of historical and cultural heritage sites. The consultation process consisted of a joint review of the proposed sites, and upon approval of the sites, specific design documents were submitted for the review by the municipalities and WAJ. The proposed sites have been published in local newspapers to inform the public, and MoE will follow up on inquiries and complaints through the Development Cooperation Unit (DCU).

11. Reporting: In the monthly progress reports that GBD submits to DCU, it will include issues encountered in implementation of the EMP, if any. On a bi-annual basis, the progress report will include a section outlining EMP implementation progress update. GBD will be responsible for undertaking routine supervision of ongoing civil works.

Main Environmental and Social Impacts due to Project Interventions

Direct

12. ERfKE II will finance about 1000 classroom extensions to existing schools, and the construction of about 82 replacement schools in urban and rural communities in Jordan. A school mapping study was

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carried out to determine the location of 82 replacement schools. The MoE has identified that 80 of the 82 replacement schools will be located on government land and two schools will be on privately owned land that will be acquired in accordance with the Land Acquisition Plan. Government policy also requires the development of a LAP once the school mapping exercise is completed and the acquisition of privately owned land has been identified. The private landowners will be compensated before the start of civil works and there will not be any issues of involuntary relocation of people.

13. Regarding the issues of water supply and waste water disposal, such services will be provided by the WAJ. Priority in site selection is given to sites with existing water and wastewater services. In the remote cases where there is no piped water supply or central wastewater services, the potential issues would be associated with the provision of such services in-situ, if feasible. In the latter case, provisions will be made in the design of such services to protect the environment from pollution.

14. Regarding the disposal of solid wastes, no major issues are anticipated as schools do not generate large quantities of wastes. Therefore, criteria for locating new schools will include assurances from concerned municipal authorities to provide environmentally sound collection and disposal services.

15. Regarding the possibility of encountering cultural heritage sites during the excavation works for replacement schools or major expansions to existing schools, provisions will be included in the construction contracts establishing procedures to manage such chance finds. These provisions are already provided for in the Antiquities Law. Such provisions require halting the works in cases of chance finds and to notify the Department of Antiquities in the Ministry of Tourism, which is required to take the necessary actions to protect and preserve the sites. In such cases, the works will stop altogether and new sites would have to be identified.

Indirect

16. Indirect impacts of the proposed facilities would be those associated with the construction works and the additional vehicular traffic during the peak hours of school days. Regarding the impact during construction, it is considered temporary and will be abated through measures included in the contracts to control traffic of construction vehicles, as well as dust, noise and waste material generated during construction. The GBD will supervise these contracts to ensure compliance with these provisions. Regarding the impact of vehicular traffic, the criteria for the selection of sites will take into consideration the availability of suitable access roads and streets to such sites to minimize the impact of the increased vehicular traffic in the local neighborhoods.

Mitigation Measures to be implemented

Mitigation of Direct Impacts

17. MoE-DBIP will be responsible for providing school design guidelines for new school construction. DBIP will accomplish this in direct coordination with GBD, as it is the responsible party for the implementation of all civil works contracts. All schools will have access to water supply and sanitation. The construction of replacement schools and rehabilitation of existing facilities will be designed taking into account the following aspect:

• identification and selection of replacement school sites and the final solution will be reached with the participation of key stakeholders indicated above (paragraphs 8-10);

• wastewater disposal would address both the health hazards as well as the land and water pollution abatement aspects. Wastewater disposal would include on-site and off-site alternatives. Wastewater streams should be handled separately from rainwater;

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• on-site disposal would be feasible as long as it would not contaminate an existing ground water source or would not pose an environmental threat to the school facilities and adjacent properties. Such facilities would consist of septic tanks for sewage with compartments for separation of solid from liquids and percolation pits or perforated pipes for infiltration of clear wastewaters. The solids compartment in septic tanks would be designed with means for easy cleaning with suction equipment or manually. Septic sludge thus removed would be disposed of at municipal or community facilities where proper sludge drying beds and filtrate evaporation ponds. Dried sludge would then be disposed of at the same municipal or community facility site. The on-site disposal would consist of percolation pits or perforated pipes built to adequate depths to ensure deep percolation. In the cases where on-site percolation is not feasible, either due to environmental conditions or poor soil permeability (such as rocky soils), the off-site disposal option should be considered;

• off-site disposal would consist of transporting the wastewater retained in holding tanks on-site to designated places in the communities. At these places, either evaporation ponds or wastewater treatment lagoons designed as stabilizations ponds would be considered. The detention time at these stabilization ponds shall be in accordance with WHO design standards. To the extent feasible, treated effluents would be reclaimed for irrigation of approved lands in accordance with WHO guidelines. Options for final disposal of treated wastewaters would be: (i) infiltration for groundwater recharge; (ii) evaporation ponds; and (iii) land disposal for irrigation of approved crops and plants; and

• waste management would take into account the option of contracting out such services to the private sector for ensuring that the proper funding and accountability for adequate disposal are provided for under the project.

18. Regarding monitoring and evaluation of environmental management, provisions will be made in the design of construction and rehabilitation programs to ensure the required protocols, procedures, resources, awareness and capacity building is provided to the concerned people and organizations responsible for supervisory roles.

Mitigation of Indirect Impacts

19. Anticipated indirect impacts, as described earlier, are expected to be minor. Such impacts are related to construction works. Mitigation measures will be included as part of the construction design and complemented during construction management. In this regard, adequate provisions will be included in the construction contracts to ensure compliance with such mitigation measures.

Table 1: Cost of the Mitigation Measures, Source of Funding and Implementing Parties

Mitigating Action Cost (US$) of investment and Source of funding

Cost (US$) – O & M Source of funding

Implementing Party

On-Site wastewater disposal

$15,000 large school X 82 schools = 1,230,000

TBD % IBRD and TBD% GOJ funded

$130/school/year X 82=10,660

100% GOJ funded

MoE

Off-site wastewater disposal

To be provided by WAJ To be provided by WAJ MoE

Solid waste disposal To be provided by municipality Included in school operational budget

MoE

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Table 2: Supervision and Monitoring

Mitigating Action Party responsible of monitoring

Party responsible of supervision

Frequency of monitoring

Frequency of supervision

On-site waste management

MoE School management Monthly Weekly

Off-site waste management measures

Municipality/WAJ/ MoE

School management. Field Directorate

Monthly Monthly

Monthly Monthly

Social Safeguards

20. The project has also triggered the World Bank Operational Policy on Involuntary Resettlement, OP 4.12. as it includes the construction of new schools. Under the project, 82 schools will be built, 22 of which will be financed by the IBRD loan and built on land owned by the GoJ. The remaining sixty schools will not be financed by the IBRD loan. Nevertheless, the GoJ will be required to meet the requirements of OP4.12 regarding land acquisition for all 82 sites. Of the 60 non IBRD-financed schools, 58 will be built on land owned by the MoE while 2 will be built on sites that will involve land acquisition, and a Land Acquisition Plan (LAP) has been prepared in this context. Prepared by MoE, the LAP lays out the process for land acquisition for both sites, including the consultations held, relevant legal framework, and implementation and monitoring arrangements. The LAP will substitute for a Resettlement Action Plan (RAP). The LAP was reviewed for consistency with Bank Policy, and has been translated and disclosed both in-country and at the Infoshop.

Description of Land Acquisition Plan (LAP)

21. Component 5 of the project involves the replacement of unsafe buildings and the upgrading of facilities to support the education reform initiatives for transformations in learning for the knowledge economy and additional schools and extensions to deal with significant population growth. This will help provide quality physical learning environments for kindergartens, basic and secondary schools, alleviating overcrowding, and reducing rented and doubles-shift facilities.

22. To this end, a school mapping exercise (GIS) was implemented by the Directorate of Educational Planning in the MoE and provided the information necessary for a rationalization of existing enrolment disparities and the selection of sites for the allocation of additional student places (both new schools and school extensions). As a result of this exercise, the Ministry was able to identify the needs of newly constructed schools and extensions that will be implemented during ERfKE II and based on specific site selection criteria. The Ministry has an annual allocation for the acquisition of lands. During the last five years the Ministry has acquired the necessary lands that will be used for the construction of schools and extensions under ERfKE II as well as for construction of other MoE buildings. This secures the lands for 80 identified schools out of 82 schools that would be constructed during ERfKE II.

23. For the remaining two sites, both of which have been identified, land will need to be acquired. The two sites are located in the Governorates of Zarqa and North Ghor, and both are privately owned. The owners of the two sites have been identified and approached by MoE, which briefed them on the project and the need to construct more schools due to overcrowding and demand. They were briefed about the school mapping study as well as selection of suitable sites for new school construction based on site selection criteria. Both owners have expressed their agreement to sell each of their land for compensation. The North Ghor property is vacant, and no person(s) are occupying either land or drawing their livelihood from this site. The Zarqa site is occupied by a small school that is rented by MoE, and will be demolished and replaced by the new school. The students attending the rented school will be moved temporarily to the closest school, which the MoE confirms can accommodate the students until the new school is constructed. No other persons are either occupying this land or drawing their livelihood from it. No

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disbursements from the loan on works on the Zarqa and North Gor sites will be authorized unless the Bank has the confirmation that land acquisition has been carried out according to the Land Acquisition Plan and compensation paid in full to the concerned land owners.

24. The legal framework for the acquisition of land for public utility as well as on the compensation regulation is reflected in Law of Acquisition No. 12 for the year 1987 and its Addendum. The main clauses in the law that are directly relevant to the project’s land acquisition process are outlined in paragraphs 7 - 9 below. The process of acquisition involves a number of steps:

• Announcement by the Land Authority Department (LAD) of the plan to acquire for public utility purposes for the benefit of the MoE. This is advertised in two local newspapers.

• Fifteen days after the announcement date, the LAD requests the approval from the Prime Ministry to acquire the land.

• A committee with representatives from MoF, MoE, and the Land Acquisition Authority determines the value of compensation. Compensation is determined taking the following considerations:

- Cost estimate is based on the market price for the total area of the land at the day of the announcement for acquiring the land in the newspaper.

- The price of the nearby sites. - The price should consider the cost of using and benefiting from the site if any. - If the owner disagrees with the cost estimated by the committee, he can take his grievance to

another committee with a different set of members from MoF, MoE and the Land Acquisition Authority; and all efforts will be made to resolve the issue. If the owner is still in disagreement with the cost, he has the right by law to appeal to the court to make the cost estimate. The court will then intervene and define a cost, which both parties will have to agree to. Once this issue is taken to the court, it is to be resolved within 3 months.

- After a decision has been made on the price, either by agreement or by court decision, the MoE pays the cost of the land to the LAD, who in turn pays the owner and finalizes the registration of land for the Ministry.

25. The LAD is the responsible body in the country to oversee the acquisition, payment, registration, etc. The MoE will issue a check in the agreed amount to the LAD which in turn will pay it to the seller.

26. Monitoring Arrangements

• The process requires approval from the prime ministry. With this request, the plan of land, cost estimate, and the financial ability of the ministry should be annexed to the request as evidence. The prime ministry has the right to approve the acquisition for public utility, otherwise it will be rejected.

• The cost estimate recommended by the committee should be approved by the General Director of LAD and endorsed by the Minister of Finance.

• The LAD invoices the ministry with the approved cost. The payment process is handled based on the financial regulations which require several reviews by the MoF representative and the auditing bureau department.

27. The table below provides a timetable for the acquisition of the two aforementioned sites. As is clear from the plan, the two sites will be acquired and registered before the start of the ERfKE II project.

Site (Governorate)

Announcement for Acquisition

Approval from the Prime Ministry

Cost estimate by the established committee

Payment and registration of the land

Zarqa Feb 2009 March 2009 April 2009 May 2009

North Ghor Feb 2009 March 2009 April 2009 May 2009

103

Annex 11: Statement of Sector Policy

JORDAN: Education Reform for the Knowledge Economy II

104

105

106

107

108

109

110

111

Annex 12: Project Preparation and Supervision

JORDAN: Education Reform for the Knowledge Economy II

Planned Actual PCN review 05/28/2008 05/27/2008 Initial PID to PIC 06/16/2008 Initial ISDS to PIC 12/20/2007 06/16/2008 Appraisal 02/08/2009 02/08/2009 Negotiations 04/06/2009 04/09/2009 Board/RVP approval 05/19/2009 Planned date of effectiveness 07/01/2009 Planned date of mid-term review 09/01/2011 Planned closing date 12/31/2015 Key institutions responsible for preparation of the project: Ministry of Planning and International Cooperation Ministry of Education Bank staff and consultants who worked on the project included: Name Title Unit Mourad Ezzine Peter Buckland Haneen Sayed Ghassan Alkhoja Lianqin Wang Marguerite Clarke Roger Pearson Dung-Kim Pham Celine Gavach Cameron Harrison Alec Gershberg Lina Fares Robert Bou Jaoude Mona El-Chami Jad Raji Mazahreh Diana Masri Kenneth Mwenda Hyacinth Brown Laila Al-Hamad Banu Setlur Sibel Kulaksiz Afifa Alia Achsien

Education Sector Manager Lead Education Specialist/TTL

Lead Operations Officer Sr. Operations Officer

Sr. Education Specialist Sr. Education Specialist

TVET Specialist/Consultant Operations Officer Operations Analyst

Consultant Education Economist/Consultant

Procurement Specialist Sr. Financial Management Specialist Sr. Financial Management Specialist

Financial Management Specialist Financial Management Specialist

Sr. Counsel Disbursement Officer

Social Development Specialist Operations Analyst/Environment

Sr. Economist Sr. Program Assistant

MNSHD HDNED MNSHD MNSHD MNSHD HDNED MNSHD MNSHD MNSHD MNSHD MNSHD MNAPR MNAFM MNAFM MNAFM MNAFM LEGEM LOAFC MNSSD MNSSD MNSED MNSHD

Bank funds expended to date on project preparation:

1. Bank resources: US$340,790 2. Trust funds: US$0 3. Total: US$340,790

Estimated Approval and Supervision costs:

1. Remaining costs to approval: US$80,000 2. Estimated annual supervision cost: US$85,000

112

Annex 13: Documents in the Project File

JORDAN: Education Reform for the Knowledge Economy II 1. World Bank Documents

Adult Education & Literacy in the MENA Region (Background Note for Regional Education Flagship Report)

Anticorruption in Transition 3 – Who is Succeeding …. And why? James Anderson and Cheryl Gray, July 2006

Education Reforms and Education Process in the Middle East and North Africa: What has changed in the classroom?

Employment for Young Female Graduates, Concept Note (Draft), November 24, 2008 “Guidelines: Procurement under IBRD Loans and IDA Credits”, May 2004 and revised in October 2006 “Guidelines: Selection and Employment of Consultants by World Bank Borrowers”, May 2004 and

revised in October 2006 Jordan – Agency’s Capacity Assessment to Implement Procurement (still in draft for approval by RPM) Jordan - Country Assistance Strategy, April 2006 Jordan - Country Financial Accountability Assessment, October 2001 Jordan - Economic Monitoring Note, Spring 2008 Jordan - Poverty Update Volumes I and II, June 2008 Jordan - Report on the Observance of Standards and Codes (ROSC) Teacher Policy in the MENA Region: Issues and Options, September 2005 Vocational Education Reform in the Middle East and North Africa: Improving Relevance and Expanding

Opportunities 2. Others

ERfKE II Progress Report, prepared by the DCU, March 2008 ERfKE II Progress Report, prepared by the DCU, April 2008 3. Consultants’ Reports Funded by the CIDA Grant TF053276 School Planning, by Dr. B. P. John Parolin Teacher Utilization, by Dr. R. Rawlinson and Dr. M. Allak Education Sector Finance, by Ms. G. Rawle Vocational Education, by Mr. Andre Kirchberger Decentralization of Ministry Process, by Thomas Welsh School-Based Management Improvement and Development Design and Planning, by ….

113

Annex 14: Statement of Loans and Credits

JORDAN: Education Reform for the Knowledge Economy II

Original Amount in US$ Millions

Difference between expected and actual

disbursements

Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d

P104960 2009 JO-Amman Solid Waste Management 25.00 0.00 0.00 0.00 0.00 25.00 0.00 0.00

P100546 2008 JO - Social Protection Enhancement 4.00 0.00 0.00 0.00 0.00 3.99 0.38 0.00

P100534 2008 JO - Employer Driven Skills Dev. 7.50 0.00 0.00 0.00 0.00 6.98 -0.47 0.00

P081823 2007 JO-Cultural Heritage, Tourism & Urban Dev.

56.00 0.00 0.00 0.00 0.00 52.40 4.35 0.00

P070958 2007 JO-Regional and Local Dev. 20.00 0.00 0.00 0.00 0.00 18.61 6.91 0.00

P081505 2004 JO-Amman Dev. Corridor 71.00 0.00 0.00 0.00 0.00 42.09 9.09 0.00

P075829 2003 JO-Education Reform for Knowledge Econ.I

120.00 0.00 0.00 0.00 0.00 7.62 7.62 0.00

Total: 303.50 0.00 0.00 0.00 0.00 156.69 27.88 0.00

JordanCommitted and Disbursed Outstanding Investment Portfolio

As of 12/31/2008(In USD Millions)

Committed Disbursed Outstanding

FY Approval Company Loan Equity**Quasi Equity *GT/RM

Partici pant Loan Equity

**Quasi Equity *GT/RM

Partici pant

2008 Adp jordan 70 0 50 48.94 160 17.29 0 9.88 47.56 39.512003 Al-hikma 4.04 0 0 0 0 4.04 0 0 0 02001 Boscan jordan 1.5 0 0 0 0 1.5 0 0 0 01997 Btc 0.45 0 0 0 0 0.45 0 0 0 02008 Capital bank jor 0 23.58 20 0 0 0 23.57 20 0 02006/09 Cti 20.84 0 7 0 0 11.84 0 0 0 00 Hikma uk 0 0.85 0 0 0 0 0.85 0 0 01999 Maico 0 0.25 0 0 0 0 0 0 0 02002 Meren 0 0.25 0 0 0 0 0.24 0 0 02000/08 Sgbj 0 2.99 0 0 0 0 1.96 0 0 01996/08 Zara 40 2.97 0 0 0 37 2.97 0 0 0

Total Portfolio: 136.83 30.89 77 48.94 160 72.12 29.59 29.88 47.56 39.51

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Partic.

Total pending commitment: 0.00 0.00 0.00 0.00

114

Annex 15: Country at a Glance

JORDAN: Education Reform for the Knowledge Economy II

M . East Lo wer-P OVER T Y and SOC IA L & N o rth middle-

Jo rdan A frica inco me2007Population, mid-year (millions) 5.7 313 3,437GNI per capita (Atlas method, US$) 2,850 2,794 1,887GNI (Atlas method, US$ billions) 16.3 876 6,485

A verage annual gro wth, 2001-07

Population (%) 2.5 1.8 1.1Labor force (%) 4.1 3.6 1.5

M o st recent est imate ( latest year available, 2001-07)

Poverty (% of population below national poverty line) 14 .. ..Urban population (% of to tal population) 78 57 42Life expectancy at birth (years) 72 70 69Infant mortality (per 1,000 live births) 21 34 41Child malnutrition (% of children under 5) 4 .. 25Access to an improved water source (% of population) 98 89 88Literacy (% of population age 15+) 91 73 89Gross primary enro llment (% of school-age population) 97 105 111 M ale 96 108 112 Female 98 103 109

KEY EC ON OM IC R A T IOS and LON G-T ER M T R EN D S

1987 1997 2006 2007

GDP (US$ billions) 6.5 7.2 14.1 15.8

Gross capital formation/GDP 23.3 25.7 26.8 26.4Exports o f goods and services/GDP 34.2 49.2 54.6 57.8Gross domestic savings/GDP -2.2 3.5 -10.7 -8.7Gross national savings/GDP 15.1 26.2 14.3 13.4

Current account balance/GDP -5.4 0.4 -12.5 -13.7Interest payments/GDP 4.1 4.3 1.4 ..Total debt/GDP 96.0 100.9 56.7 ..Total debt service/exports 23.6 15.8 6.1 ..Present value of debt/GDP .. .. 54.0 ..Present value of debt/exports .. .. 67.7 ..

1987-97 1997-07 2006 2007 2007-11(average annual growth)GDP 3.7 5.5 6.3 6.0 6.2GDP per capita -1.2 3.0 3.9 2.6 3.7Exports o f goods and services 3.6 6.9 6.7 4.1 8.5

ST R UC T UR E o f the EC ON OM Y

Jordan

Lower-middle-income group

D evelo pment diamo nd*

Life expectancy

Access to improved water source

GNIpercapita

Grossprimary

enro llment

Jordan

Lower-middle-income group

Eco no mic rat io s*

Trade

Indebtedness

Domesticsavings

Capital formation

1987 1997 2006 2007(% of GDP)Agriculture 7.3 3.3 3.1 3.1Industry 23.9 25.8 29.5 31.8 M anufacturing 11.4 14.0 19.2 20.7Services 68.8 70.8 67.4 65.1

Household final consumption expenditure 75.6 71.0 88.7 89.3General gov't final consumption expenditure 26.6 25.5 21.9 19.5Imports o f goods and services 59.8 71.5 92.0 92.9

1987-97 1997-07 2006 2007(average annual growth)Agriculture 2.7 4.6 0.9 -1.1Industry 4.8 7.6 8.1 3.6 M anufacturing 5.8 9.6 9.5 2.8Services 2.4 5.2 6.7 6.8

Household final consumption expenditure 0.9 6.3 -2.9 -0.3General gov't final consumption expenditure 0.5 2.8 13.6 25.0Gross capital formation 4.4 5.2 13.8 -2.3Imports o f goods and services 0.1 6.3 -0.2 0.0

Note: 2007 data are preliminary estimates.This table was produced from the Development Economics LDB database.

* The diamonds show four key indicators in the country (in bo ld) compared with its income-group average. If data are missing, the diamond will be incomplete.

-20

0

20

40

02 03 04 05 06 07

GCF GDP

Gro wth o f capita l and GD P (%)

-10

0

10

20

30

02 03 04 05 06 07

Exports Imports

Gro wth o f expo rts and impo rts (%)

115

Jordan

P R IC ES and GOVER N M EN T F IN A N C E1987 1997 2006 2007

D o mestic prices(% change)Consumer prices -0.2 3.1 6.2 5.1Implicit GDP deflator -0.8 1.3 5.2 6.0

Go vernment f inance(% of GDP, includes current grants)Current revenue 35.6 34.0 34.3 34.4Current budget balance 8.3 4.3 3.5 0.9Overall surplus/deficit -4.0 -3.1 -3.9 -5.5

T R A D E1987 1997 2006 2007

(US$ millions)Total exports (fob) 933 1,871 5,147 5,432 Food and live animals 100 256 534 723 Phosphates 180 190 154 216 M anufactures 353 757 1,879 2,133Total imports (cif) 2,705 4,099 11,561 13,127 Food 460 761 1,439 1,675 Fuel and energy 440 541 2,638 3,149 Capital goods 481 1,148 2,246 2,415

Export price index (2000=100) 79 114 144 171Import price index (2000=100) 89 101 164 187Terms of trade (2000=100) 89 113 88 91

0

5,000

10,000

15,000

01 02 03 04 05 06 07

Exports Imports

Expo rt and impo rt levels (US$ mill.)

0

2

4

6

8

02 03 04 05 06 07

GDP def lator CPI

Inf lat io n (%)

B A LA N C E o f P A YM EN T S1987 1997 2006 2007

(US$ millions)Exports o f goods and services 2,226 3,572 7,702 9,160Imports o f goods and services 3,698 5,186 12,987 14,728Resource balance -1,472 -1,613 -5,285 -5,568

Net income -221 -209 581 738Net current transfers 1,343 1,851 2,943 2,664

Current account balance -349 29 -1,761 -2,166

Financing items (net) 334 415 3,057 2,737Changes in net reserves 16 -444 -1,296 -571

M emo :Reserves including gold (US$ millions) 625 2,401 6,985 7,585Conversion rate (DEC, local/US$) 0.3 0.7 0.7 0.7

EXT ER N A L D EB T and R ESOUR C E F LOWS1987 1997 2006 2007

(US$ millions)Total debt outstanding and disbursed 6,262 7,314 8,000 .. IBRD 427 749 897 868 IDA 80 65 42 39

Total debt service 761 864 688 .. IBRD 57 116 123 128 IDA 2 3 3 3

Composition o f net resource flows Official grants 504 296 505 .. Official creditors 134 230 -63 .. Private creditors 350 -133 -12 .. Foreign direct investment (net inflows) 39 361 3,219 .. Portfo lio equity (net inflows) 0 0 144 ..

World Bank program Commitments 38 62 0 121 Disbursements 97 94 43 39 Principal repayments 28 72 80 80 Net flows 69 23 -38 -41 Interest payments 31 47 46 50 Net transfers 38 -24 -83 -91

Note: This table was produced from the Development Economics LDB database. 9/24/08

-20

-10

0

10

20

01 02 03 04 05 06 07

C urrent acco unt balance to GD P (%)

G: 699 A: 897

D: 1,021

C: 158

B: 42F: 429

E: 4,754

A - IBRDB - IDA C - IM F

D - Other mult ilateralE - BilateralF - PrivateG - Short-term

C o mpo sit io n o f 2006 debt (US$ mill.)

Jabal RamJabal Ram(1,734 m) (1,734 m)

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A r d a s S a w a a n

Jabal Ram(1,734 m)

34°N

33°N

32°N

31°N

30°N

29°N

34°N

33°N

32°N

31°N

30°N

35°E 36°E 37°E 38°E 39°E

35°E 36°E 37°E

38°E 39°E

JORDAN

0 0

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50 Kilometers

IBRD 33424

JANUARY 2005

JORDANSELECTED CITIES AND TOWNS

GOVERNORATE CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

GOVERNORATE BOUNDARIES

INTERNATIONAL BOUNDARIES

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