ASIAN DEVELOPMENT BANK PCR: CAM 27047

PROJECT COMPLETION REPORT

ON THE

BASIC EDUCATION TEXTBOOK PROJECT (Loan 1446-CAM[SF])

IN

CAMBODIA

March 2003

CURRENCY EQUIVALENTS

Currency Unit – riel (KR)

At Appraisal At Project Completion (May 1996) (October 2002) KR1.00 = $0.0004 $0.00025 $1.00 = KR2500 KR4000

ABBREVIATIONS ADB – Asian Development Bank AidMIS – aid management information system BEIP – Basic Education Investment Plan BME – benefit monitoring and evaluation EMAB – Educational Materials Approval Board ESDP – education sector development program ESS – Education Sector Study GEDC – Gender, Ethnic, and Disability Committee MOEYS – Ministry of Education, Youth, and Sports PDH – Publishing and Distribution House PEEC – public enterprise with economic characteristics PIU – project implementation unit p-m – person-month PMMO – Program Management and Monitoring Office PRD – Pedagogical Research Department TA – technical assistance UNICEF – United Nations Children’s Fund

NOTES

(i) The fiscal year (FY) of the Government ends on 31 December. The school year (SY) begins in October. SY before a calendar year denotes the year in which the school year ends. (For example, SY2001 began on 1 October 2000 and ended on 30 September 2001.)

(ii) In this report, “$” refers to US dollars.

CONTENTS

Page BASIC DATA ii

I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 8 D. Disbursements 8 E. Project Schedule 8 F. Implementation Arrangements 9 G. Conditions and Covenants 9 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 10 J. Performance of the Borrower and the Executing Agency 11 K. Performance of the Asian Development Bank 11 III. EVALUATION OF PERFORMANCE 12 A. Relevance 12 B. Efficacy in Achievement of Purpose 12 C. Efficiency in Achievement of Outputs and Purpose 12 D. Preliminary Assessment of Sustainability 13 E. Institutional, Environmental, Sociocultural, and Other Impacts 14 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons Learned 15 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. Organization Chart of Publishing House 19 3. The Publishing House - Institutional Assessment 22 4. Policy Matrix 26 5. Access to Textbooks in Primary and Secondary Schools, 1994-2002 31 6. Cost-Sharing Scheme 32 7. Textbook Prices for Grades 1 to 12, SY2000-2001 33 8. Textbook Printing and Distribution Operations 1996-2002 35 9. Project Cost and Financing Arrangements 38 10. Disbursement Summary 40 11. Implementation Schedule 41 12. Status of Compliance with Loan Covenants 43 13. Consulting Services 48 14. Procurement Packages 49 15. Post-Project Financing Arrangements 50

ii BASIC DATA A. Loan Identification

1. Country Cambodia 2. Loan Number 1446-CAM(SF) 3. Project Title Basic Education Textbook Project 4. Borrower Kingdom of Cambodia 5. Executing Agency Ministry of Education, Youth, and Sports 6. Amount of Loan SDR13.826 million 7. Project Completion Report Number PCR:CAM 737

B. Loan Data

1. Appraisal - Date Started 13 March 1996 - Date Completed 2 April 1996 2. Loan Negotiations - Date Started 15 May 1996 - Date Completed 16 May 1996 3. Date of Board Approval 20 June 1996 4. Date of Loan Agreement 29 July 1996 5. Date of Loan Effectiveness - In Loan Agreement 28 October 1996 - Actual 28 October 1996 - Number of Extensions Nil 6. Closing Date - In Loan Agreement 30 April 2002 - Actual 29 October 2002 - Number of Extensions none 7. Terms of Loan - Interest Rate 1 percent per annum - Maturity 40 years - Grace Period 10 years

iii 8. Disbursements

a. Dates

Initial Disbursement Final Disbursement Time Interval 5 February 1997 4 September 2002 5 years and 7 months

Effective Date Original Closing Date Time Interval

29 October 1996 30 April 2002 5 years and 6 months

b. Amount ($’000)

Category

Original

Allocation

Last Revised

Allocation

Amount

Cancelled

Net Amount

Available

Net Amount

Disbursed

Undis- bursed

Balance 01 Civil Works 240 204 1 203 203 002 Equipment and Vehicles 981 1,147 12 1,135 1,135 0

03A Training and Fellowships: A. Local Training 405 262 (18)

280 280 0

03B B. Study Visits 22 14 0 14 14 0 Consulting Service 04A A. International Consultants 3,650 3,133 25 3,108 3,108 004B B. Research Contracts 106 8 3 5 5 0 Textbook Materials 05A A. Production and

Distribution 11,006 12,486 121 12,365 12,365 0

05B B. Teacher’s Guide 311 326 18 308 308 0 Implementation costs 06A A. Office Equipment 200 105 (2) 107 107 006B B. Administrative Support 179 254 (7) 261 261 007 Service Charge 600 424 0 424 424 008 Unallocated 2,300 12 12 0 0 099 Imprest Fund 0 (4) (4) 0 0 0 Total 20,000a 18,371b 161 18,210 18,210 0

a Equivalent of SDR13,826,000 at appraisal b The exchange rate depreciated during implementation from SDR1=$1.447 at appraisal to SDR1=$1.329 at project completion.

9. Local Costs (Asian Development Bank-Financed) - Amount ($) 0 C. Project Data

1. Project Cost ($ million)

Cost Appraisal Estimate Actual Foreign Exchange Cost Local Currency Cost Total Cost

23.20 6.10

29.30

21.75 6.16

27.91

iv

2. Financing Plan ($ Million)

Appraisal Estimate Actual Item Foreign Local Total Foreign Local Total Implementation Costs Borrower financed ADB financed UNICEF Subtotal IDC Costs Borrower financed ADB financed Subtotal Total

0.00 19.40

3.20 22.60

0.00 0.60 0.60

23.20

6.10 0.00

0.006.10

0.000.000.00

6.10

6.1019.40

3.2028.70

0.000.600.60

29.30

0.00 17.79

3.54 21.33

0.00 0.42 0.42

21.75

4.51 0.00 1.65 6.16

0.00 0.00 0.00

6.16

4.5117.79

5.1927.49

0.000.420.42

27.91

ADB = Asian Development Bank, IDC = interest during construction, UNICEF = United Nations Children's Fund

3. Cost Breakdown by Project Components ($’000)

Appraisal Estimate Actual Item Foreign Local Total Foreign Local Total A. Civil Works B. Equipment and Vehicles C. Training and Fellowships:

1. Local Training 2. Study Visits 3. Teacher Orientation

D. Consulting Services: 1. International Consultants 2. Domestic Consultants 3. Research Contracts

E. Textbook Materials: 1. Curriculum/Manuscripts 2. Textbooks 3. Teacher Guides

F. Implementation Costs: 1. Office Equipment 2. Administrative Support 3. Materials and Office

Supplies 4. Rental Accommodation

G. Physical Contingencies H. Price Contingencies I. Service Charges Total

240981

450101

0

4,5870

105

62212,532

346

200180

00

1,3001,000

600

23,244

160201

11827

0

400102

95

2893,713

38

00

5060

300500

0

6,053

4001,102

568128

0

4,987102200

91116,245

384

200180

5060

1,6001,500

600

29,297

203 1,917

346

35 0

3,723

0 217

1,358

12,731 308

107 261 122

0

0 0

424

21,752

136 9

86 12

1,650

9 0 5

80

4,046 28

0 9

23 62

0 0 0

6,155

3391,926

43247

1,650

3,7320

222

1,43816,777

336

107270145

62

00

424

27,907

v

4. Project Schedule

Item Appraisal Estimate Actual Date of Contract with Consultants Civil Works Contract Date of Award Completion of Work Equipment and Supplies First Procurement Last Procurement Completion of Equipment Installation Start of Operations

April 1997 June 1997 December 1997 April 1997 December 1997 March 1998 March 1998

June 1997 June 1997 March 1999 March 1997 June 2002 March 1999 March 1999

5. Project Performance Report Ratings

Ratings

Implementation Period Development Objectives

Implementation Progress

(i) From 1 Nov 1998 To 31 Dec 1998 Satisfactory Satisfactory (ii) From 1 Jan 1999 To 31 Dec 1999 Highly Satisfactory Highly Satisfactory (iii) From 1 Jan 2000 To 31 Dec 2000 (iv) From 1 Jan 2001 To 31 Dec 2001 Satisfactory Highly Satisfactory

(v) From 1 Jan 2002 To 31 Dec 2002 Highly Satisfactory Highly Satisfactory D. Data on Asian Development Bank Missions

Name of Mission Date No. of

PersonsNo. of

Person-Days Specializationof Membersa

Fact-Finding 14 Nov – 4 Dec 1995 4 66 a, e, g, e Appraisal 13 Mar – 2 Apr 1996 5 83 a, a, c, g, e Inception Review 2 –4 Dec 1996 2 6 a, h Review 1(SLAM*) 9 – 12 Jun 1997 1 4 A Review 2 9 – 16 Jun 1997 1 8 A Review 3 4 – 7 Feb 1998 1 4 A Review 4 3 – 11 Oct 1998 1 9 A Review 5 (SLAM) 22 – 27 Mar 1999 1 6 A Review 6 7 – 9 Jun 1999 1 3 A Review 7 (Midterm) 25 Nov – 3 Dec 1999 2 18 a, h Review 8 23 – 26 May 2000 1 4 A Review 9 15 – 19 Jan 2001 1 5 A Review 10 8 – 14 Sep 2001 2 14 a, h Review 11 (SLAM) 22 – 26 Oct 2001 3 15 a, a Review 12 7 – 13 Feb 2002 1 7 A Project Completion Reviewb 30 Sep – 11 Oct 2002 2 24 a, h

* SLAM = Special Loan Administration Mission a a-education/project specialist; b-financial analyst; c-counsel; d-economist; e-consultant specialist; f-

control officer; g-programs officer; h-assistant project analyst b The mission comprised Y. Ikeda, Mission Leader/Project Specialist; and D. P. Santos, Assistant Project

Analyst.

1

I. PROJECT DESCRIPTION 1. The basic education system in Cambodia had been characterized by low quality and poor internal efficiency associated with high dropout and repetition rates. One of the reasons for the low quality was lack of textbooks in primary and lower secondary schools. In collaborations with the United Nations Children’s Fund (UNICEF) as a co-financier on a parallel basis, the Basic Education Textbook Project (the Project) aimed at improving the quality of basic education by (i) building institutional capacity of the country’s textbook publishing within a sustainable operational framework and (ii) improving the aid management and monitoring system in the Ministry of Education, Youth, and Sports (MOEYS). At appraisal it was anticipated that the Project would provide primary and lower secondary schools with 28 million textbooks and 0.5 million teacher guides for core subjects during the implementation period.1 The Project had three components: (i) institutional development, including establishment of an autonomous publishing house and staff development; (ii) textbook supply, including curriculum and textbook development, production, distribution, and impact monitoring and evaluation; and (iii) the introduction of aid planning, management, and monitoring systems.

II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation 2. As a major contributor to the rehabilitation effort in Cambodia since 1992, the Asian Development Bank (ADB) has been supporting the Government’s efforts to reduce poverty in the country. Support for basic education, together with support for primary health care and skills development, has been a key activity in human resource and social development, one of the development priorities of ADB as well as the Government for poverty reduction.2 3. Based on its education policy framework articulated in 1988,3 ADB provided a series of technical assistance (TA) including the Education Sector Study (ESS) in 19934 and preparation of the Basic Education Investment Plan (1995-2000) (BEIP) in 19955 to assist the Government in preparing policy and strategic frameworks for education sector development, especially at the basic education level. The BEIP identified the need for policy reforms for the improvement of basic education as well as investment priorities. The ESS and BEIP presented an immediate and medium-term objective for education sector development in Cambodia that was to improve the quality of a 9-year basic education system (6 years for primary and 3 years for lower secondary education). Based on the ESS and BEIP, MOEYS prepared the Textbook Master Plan 1996-2001 with a priority on organizational reform for establishing an autonomous textbook publishing agency for producing and distributing textbooks and teacher guides for core subjects of primary and lower secondary schools. The master plan, having been developed under ADB’s assistance, was consistent with the education policy framework, which focused on the quality, access, and institutional capacity of basic education. The Government requested ADB’s assistance to implement the master plan.

1 ADB. 1996. Report and Recommendations of The President to The Board of Directors on a Proposed Loan to the

Kingdom of Cambodia for the Basic Education Textbook Project. Manila. Paragraphs 10, 38-41 2 ADB. 1995. Country Operational Strategy Study for Cambodia. Manila; and ADB. 2000. Country Operational

Strategy for Cambodia. Manila. 3 ADB. 1988. Education and Development in Asia and the Pacific. Manila. 4 ADB. 1993. Technical Assistance to the Kingdom of Cambodia for Emergency Training for Teachers. Manila. 5 ADB. 1995. Technical Assistance to the Kingdom of Cambodia for Basic Education Management and Coordination,

Manila.

2

4. The project formulation process, through step-by-step policy dialogue and following a participatory approach since 1994, had created a sense of ownership in the Government. This ownership was later demonstrated by the Government’s commitment in policy and legal formulation, counterpart fund disbursements, and counterpart staff allocations to ensure the effective transfer of skills from international consultants during implementation. This formulation process also enabled ADB to design the Project commensurate with the Government’s capacity, particularly that of MOEYS as the Executing Agency. 5. For designing the Project, the project preparatory TA6 effectively synthesized what had been achieved under the previous assistance programs for incorporation in the project design, which was relevant and ready for implementation. The TA provided a comprehensive package for establishing sustainable textbook provision for 9-year basic education in the country by incorporating the key development priorities of the education policy framework as well as the Textbook Master Plan. The design included provisions for technical and functional aspects such as authoring and printing but also policy arrangements to institutionalize the system. The project appraisal also took note of important lessons learned from ongoing or previous projects in its design, thus attempting to avoid such weaknesses as (i) inappropriate institutional framework for continued textbook supply and distribution, (ii) limited logistical support for textbook distribution, (iii) weak supply and procurement system for printing paper, (iv) lack of curriculum acknowledged by concerned agencies and individual donors, and (v) poor aid coordination within MOEYS. 6. At completion, by (i) achieving a 1 to 1 textbook-pupil ratio in the country for primary and lower secondary education and (ii) establishing the Publishing and Distribution House (PDH) as an autonomous textbook publisher-cum-distributor as envisaged in the Textbook Master Plan 1996-2001, the Project realized the expected outputs as anticipated at appraisal. During implementation, ADB approved two changes to enhance the benefits and relevance of the Project: one in 1999 for extending textbook publishing and distribution to upper secondary students, and the other in 2000 to produce supplementary textbooks for sale. The commencement of ADB’s Education Sector Development Program (ESDP) 7 at the time of completion of the Project further enhanced the relevance and sustainability of the Project to ADB’s overall sector development objectives. The Project’s achievements are summarized in the project framework in Appendix 1. B. Project Outputs

1. Institutional Development

a. Development of an Autonomous Publishing House 7. Organization Development. The Project assisted the Government in setting up an autonomous textbook publishing system through the reorganization process of the educational publishing functions in MOEYS. Following the reorganization plans developed with the ADB assistance, 8 the reorganization intended to integrate textbook authoring, production, and 6 ADB. 1994. Technical Assistance to the Kingdom of Cambodia for Preparation of a Basic Education Textbook

Project. Manila. 7 ADB. 2001. Report and Recommendations of The President to The Board of Directors on a Proposed Loan to the

Kingdom of Cambodia for the Education Sector Development Program. Manila. 8 ADB. 1996. Technical Assistance to the Kingdom of Cambodia for Textbook Publishing, Planning, and

Management. Manila

3

distribution functions. The key milestones for creating the autonomous publishing house were fully met within the scope anticipated at appraisal. The process started with the establishment of the Textbook Board in 1996, chaired by the secretary of state, MOEYS, as part of the conditions for loan effectiveness. The Textbook Board coordinated the authoring, production, and distribution process during the reorganization. The reorganization process included transfer of key functions (editorial, design, and typesetting) with 16 editorial staff from the Research Institute to the Publishing House during the first quarter, 1998. Then, in 1999, PDH was established by merging MOEYS’ Publishing House with its Distribution Center. Finally, in 2002, PDH was reclassified as public enterprise with economic characteristics (PEEC) in 2002. Appendix 2 compares the organizational framework of publishing and distribution operations before and after the Project. 8. Institutional Achievements. Targets for improving the management system, operational structure, value system, leadership, and strategy and policy formulation process were set at appraisal. Initial assessment of the targets indicates that the Project’s focus of introducing market-oriented publishing and distribution operations has been achieved, as summarized in Appendix 3. In support of the policy dialogue during the appraisal, (i) the Textbook Board and the Educational Materials Approval Board (EMAB) were established in 1996 and 2001, respectively; (ii) social dimensions such as gender and ethnic balance criteria for bias-free textbooks were introduced by the Gender, Ethnic, and Disability Committee (GEDC) in 1998; and (iii) recommendations from the policy studies on publishing and distribution in 1999 and 2001 (para. 21) have been incorporated into PDH’s operations. The recommendations of the studies included increased public/private partnership, streamlined procurement system, cost sharing through the sale of textbooks, and cost sharing between the schools and the Government through the decentralization process of the national education system. GEDC, with core members who had been active already prior to their official appointment, contributed to improved incorporation of social dimensions into the new textbooks; for instance, topics in the social study textbooks introduced the history and lifestyles of different groups of people in a more balanced manner to mitigate social and gender bias. The policy matrix in Appendix 4 compares the policy targets set at appraisal with the achievements reached by project completion.

b. Staff Development 9. The staff development component was implemented with the support of the international consultants to institutionalize a market-oriented textbook development and production system within the scope envisaged at appraisal. The training covered skills and knowledge required for staff in the editorial bureau of the Pedagogical Research Department (PRD) in MOEYS, and in the printing, distribution, and administration divisions in former Publishing House and Distribution Center of MOEYS that were later united to form PDH. At completion, the Project had created a skill mix required for institutional development and sustainable post-project operation. The skill mix included technical skills for textbook planning, manuscript development and illustration, editing, and design of textbooks, and operation of publishing and production equipment. It also covered administrative skills for (i) planning of textbook titles and series, procurement methods, external production arrangements, warehousing, and distribution; (ii) financial management; and (iii) factory management. 10. Most of the domestic training was implemented on-the-job, or on a short-term, intermittent basis by international consultants to keep abreast of the progress of reorganization and systems development in the Publishing House, MOEYS and its successor, PDH. This arrangement effectively minimized staff absence from the implementation sites that is often

4

caused by longer term off-the-job training programs and it has also reduced implementation costs. Individual overseas training and study visits were also organized as short-term programs and implemented only if such training was really needed. UNICEF supported four short-term study tours to Malaysia/Singapore, Thailand, India, and Vietnam. Although it is difficult to measure the amount of on-the-job training input by person-month (p-m), considering the individual consultants’ period on site, it is estimated that 10 to 12 p-m equivalent on-the-job training for about 100 PDH staff was provided. In addition to the on-the-job training, short-term training, and off-the-job training, the in-house training for 190 p-m for 120 PDH staff and 60 PRD staff was provided. In total, training comprising more than 1,200 p-m was provided during the implementation period.

2. Textbook Supply 11. The new basic education system introduced in 1996 comprises 6 years for primary education, 3 years for lower secondary education, and 3 years for upper secondary education. Under this 6-3-3 system, textbook-pupil ratio with new textbooks achieved 1 to 1 for students in grades 1 to 9, and 1 to 2 for students in grades 10 to 11 by the end of the Project (Appendix 5). These results had a substantial impact on the quality of primary and secondary school education as indicated by parameters such as rates of promotion, pass, dropout, and repetition. Based on the lessons from past projects—which often took the shape of ad hoc textbook provision without considering teacher orientation, contract and procurement systems for continued reprinting and updates, and distribution support—MOEYS replaced old textbooks with new-quality textbooks, offered extensive teacher-orientation programs with the assistance of UNICEF, and streamlined contract/procurement and distribution systems under ADB assistance.

a. Curriculum and Textbook Development 12. In response to the introduction of the 6-3-3 system in 1996, the Government undertook major curriculum reform, including new curriculums for 4 core subjects in grades 1–6, comprising Khmer, mathematics, social studies and science; for 6 core subjects in grades 7–9; and for 10 core subjects in grades 10–12. UNICEF provided about $1.12 million for the curriculum and textbook development and about $1.65 million for a teacher orientation program. To improve cost effectiveness and efficiency in the preparation of manuscripts, UNICEF and later PDH adopted an output-based system for payments to the writers for products delivered within agreed timeframes, replacing the previous input-based payment. To institutionalize quality-control functions, the Textbook Board was incorporated into EMAB at the end of the reorganization process, which was chaired by the director general of general education. The Textbook Board is responsible for all aspects including the education materials approval process and the appointment of evaluators. EMAB reports to the secretary of state, MOEYS, for final endorsement of education materials. GEDC guidelines to incorporate social dimensions into educational materials play an important role in the preparation of bias-free textbooks (para. 8).

b. Production 13. Production Volume. Compared with 28.5 million copies envisaged at appraisal, about 30.5 million copies of new textbooks and teacher guides were produced under the Project by the end of 2001. This number includes 27.9 million copies of textbooks and teacher guides produced for free distribution to grades 1–9, 1.0 million copies of books for sale to grades 1–9, 1.2 million copies of books for sale to grades 10–12, and 0.4 million copies of supplementary

5

books for grades 1–12. This production figure represents more than 180 titles of textbooks, which include 24 titles of textbook and corresponding teacher guides for grades 1–6, 18 for grades 7–9, 30 for grades 10–12, and 37 supplementary book titles. The number of copies of teacher guides is substantially smaller as they are distributed only to teachers, and are assumed to last 5 years before replacement, while textbook use assumes 3 years before replacement. Based on the publishing and printing capacity study under the phase I policy studies in 1999, the full-scale production capacity of PDH is estimated at 7 million copies per year (assuming printing for 12 months). Empirical observation during implementation suggests that total printing capacity in Cambodia is about 8-9 million copies per year, which includes PDH and private printers contracted under the Project. However, these estimates should be taken as indicative only, and should be updated carefully to take account of economic and physical feasibility, and bearing in mind the peak / non-peak demand cycle of schoolbook printing (para. 16). 14. Production Cost. Although the production cost of each textbook and teacher guides depends on the number of pages, colors, and quality of papers, the average unit cost of production is $0.46 per copy compared with the appraisal estimate of $0.59. Total production cost for grades 1–12 was about $3.02 million ($3.45 million, including cost of distribution) in FY2002, representing 6.3% of the annual budget in MOEYS under the ongoing cost-reduction system. The cost-reduction system requires the reuse of a textbook for 3 years before a new copy is delivered for replacement so that the annual production requirement would be about one third of the total number of students (with some allowance for increased enrollments). 15. Cost Sharing. To further help the operation of textbook publishing, textbook financing studies were undertaken as part of the policy studies in 1999 and 2001 with different pilot schemes of cost sharing as envisaged at appraisal. Based on the recommendations of the studies, the Government adopted a cost-sharing system that textbooks are given free of charge to students in grades 1–9, while the cost of textbooks for grades 10–12 will be equally shared by the Government and students, as summarized in Appendix 6. Additional textbooks and all supplementary books will be sold to the students and schools at cost. A list of retail prices is in Appendix 7. The discretionary school budget introduced in 2000 under the Government decentralized budget framework is expected to broaden the scope of cost sharing. Appendix 8 summarizes the annual printing, production, and delivery activities with related costs and revenues from book sale proceeds for textbooks of grades 1-12 in core subjects. 16. Physical Facilities. The Project provided civil works of $0.2 million through local competitive bidding for construction and renovation of publishing house facilities, including a provision of hard-surfaced area of about 300 square meters (m2) for smooth material flow between the printing shop and the warehouse; four vehicles for $0.08 million through international shopping; and publishing and production equipment amounting to about $1.05 million through international shopping/direct purchase. The facilities are highly utilized with two shifts (16 hours a day) or three shifts (24 hours a day) operating to meet the delivery schedule during the peak periods of January to July. During non-peak period, one-shift operation is utilized.

c. Distribution 17. Logistics. ADB and UNICEF supported improvements to the distribution system. ADB financed a textbook distribution study as part of the policy studies implemented under the Project in 1999 and 2001 (para. 21). Under the study, various forms of partnership with private transporters and deliverers were sought; however, it was difficult to attract the private sector to

6

textbook distribution mainly due to the bad road conditions to rural schools and the high risk of empty loads on the returns to Phnom Penh. PDH is utilizing two 3-ton four-wheel drive vehicles and one 10-ton truck provided by UNICEF for long-distance delivery with contracted small-scale entrepreneurs at provincial and district levels. As a result, the cost of delivery per a book is about $0.075 compared with $0.05 estimated at appraisal. To meet the growing enrollment in primary and secondary schools, it is imperative to strengthen the distribution network together with the administrative capacity at the provincial level, particularly for accurate stock management and school information. Under the Project, MOEYS reviewed the quality of enrollment statistics prepared by the departments of primary and secondary education and planning figures by the Department of Planning, and introduced textbook order sheets so that PDH can capture the realistic demand and establish a feedback loop system with schools. 18. Book Sales. PDH opened a bookshop in its premises as a showroom of textbooks, teacher guides, supplementary books, and textbook campaign posters. This is not only to disseminate the product information to students and school staff as main clients, but also to demonstrate the skills and quality of printing to potential clients. To strengthen the textbook distribution network, PDH has been expanding its book wholesalers’ network by contracting with private booksellers in each province. Starting with relatively poor provinces where the awareness of education is still low or the access to educational information including textbooks is otherwise limited, the network has already covered 15 provinces out of 24.

19. Ban of Illegal Sale. The illegal sale of textbooks had been conducted openly in bookshops all over the country. The Government acted on this issue by drafting a copyright law, which was approved by the Council of Ministers in early 2002 for finalization in the next National Assembly in 2003. An information campaign about illegal books through radio, television, posters, and information to schools has been launched. PDH also began to print “National Property” and “Not for Sale” marks on the covers of the free textbooks to prevent leakage to the illegal copy market. MOEYS also works with the Ministry of Interior (police) for assistance to curb the illegal trade by forfeiting the illegal copies from bookshops. Illegal sales have been greatly reduced.

d. Impact Monitoring and Evaluation 20. The research component received about $0.2 million from UNICEF for implementation of various studies through consulting services. The actual implementation was initially delayed because MOEYS tried to implement the studies by itself at the outset; however, after delays incurred due to its limited capacity, MOEYS agreed to subcontract the studies as envisaged at appraisal. 21. Policy Studies. Policy studies were conducted in two phases, the first phase in 1999 and the second phase in 2001. Phase I study comprised (i) publishing and printing capacity in Cambodia, (ii) publishing rights and other legal issues, (iii) textbooks financing, and (iv) distribution capacity and textbook availability. Phase II comprised (i) commercialization of educational publishing and (ii) textbook financing. Results of these studies were synthesized into the proposal of incorporating PDH into a PEEC, which was one of the key achievement targets under the Project. The prime minister approved the incorporation in February 2002. 22. Impact Studies. Impact studies comprised a textbook availability and utilization study and a textbook impact study. Under the textbook availability and utilization studies conducted from 1999 to 2001, textbook user satisfaction was assessed continuously and feedback was incorporated into the annual corrections and minor revisions of the textbooks. PRD and PDH

7

are considering a reduction in the number of pages, especially for primary school textbooks, in view of the limited and uneven classroom hours among schools of different locations; and the higher cost of book printing. The textbook impact study carried out achievement testing to assess the overall impact on student performance generated by the introduction of new textbooks and the improved access to textbooks. 23. The results indicated that the promotion rate in grade 6 has increased from 75.0% in SY1998 to 78.0% in SY1999 and 83.1% in SY2001. The grade 9 examination pass rate had also increased from 40.4% in SY1997 to 43.85% in SY1999. Dropout rates and repetition rates of grades 1–6 students indicate remarkable declines. For instance, the dropout rate of grade 6 students fell from 10% in SY1997 to 1.5% in SY2001. The repetition rate of grade 6 dropped from 15% in SY1997 to 3.2% in SY2001. These results may indicate that the Project’s intervention through the provision of new textbooks, together with other elements such as curriculum reform by UNICEF, effectively benefited low-performing students who were struggling before the Project. 24. Benefit Monitoring and Evaluation (BME) System. The Project provided hands-on training in research skills for more than 25 MOEYS (mostly PRD) staff. The primary responsibility of BME is given to PRD as envisaged at appraisal. MOEYS is acting on the remaining tasks to integrate individual research functions to improve the management of information, which is currently still fragmented in various offices in different formats, leaving information overlaps as well as gaps. MOEYS will (i) continue BME studies for at least an initial period of 3 to 5 years after the completion of the Project, or at least until the next major curriculum review; and (ii) strengthen research and knowledge management in MOEYS.

3. Aid Planning, Management, and Monitoring Systems 25. The Program Management and Monitoring Unit was established in 1995 in MOEYS as an advisory unit to the minister to assist MOEYS in program review, project identification, appraisal, monitoring, and evaluation at the central level. Under the Project, MOEYS strengthened the unit by institutionalizing its functions within regular MOEYS operations to better coordinate aid agencies and non-government organizations to maximize the potential synergies, efficacy, and efficiency of individual assistance programs. Following its upgrade to the Program Management and Monitoring Office (PMMO), PMMO developed an annual aid management and monitoring system and implemented training for 10 PMMO staff in related areas as well as computer operations and English language during 1998. PMMO also developed a provincial aid management and monitoring system, along with an aid management information database (AidMIS) in 1999. Since 2000, PMMO has been a part of the Planning Department of MOEYS. 26. Following the development at the central level, MOEYS provided staff training under the Project for rehabilitating the provincial aid management capacity, which deteriorated seriously when the aid management and monitoring function declined in the late 1990s due to a drastic reduction in external assistance. It was also imperative for the Government to strengthen management and monitoring function at the provincial level for implementing the newly introduced decentralized budget and expenditure framework (para. 15) since 2000. Most of the officers trained under the Project have remained at post and are integrated into provincial planning departments. They have been involved in the planning and monitoring for the new budget and expenditure framework since 2000. The provincial capacity built up under the Project provides a planning and communication network for the Planning Department, particularly the PMMO, for collection and analysis of impact and progress monitoring data.

8

C. Project Costs 27. At appraisal the total project cost was estimated at $29.3 million equivalent, of which $23.2 million equivalent was for foreign exchange cost and $6.1 million equivalent for local currency cost. The foreign exchange cost was to be financed by ADB’s loan of $19.4 million equivalent and UNICEF’s $3.2 million grant, comprising 68% and 11%, respectively, of the total project cost. The Government was to provide $6.1 million equivalent in counterpart funds to finance local currency costs under the Project. 28. The Project was completed without any cost overruns or significant reallocations of the loan proceeds between foreign exchange cost and local currency cost. The actual project cost was $27.9 million, comprising $21.7 million of foreign exchange cost and $6.2 million equivalent of local currency cost. ADB financed $18.2 million including service charges; UNICEF, $5.2 million; and the Government, $4.5 million equivalent. In addition to its original provisions, UNICEF provided $1.7 million for teacher orientation activities, which reduced the contribution by the Government. The reduction of $1.2 million in ADB financing is due to the depreciation of special drawing rights against US dollars, which resulted in a decrease in the value of the loan proceeds from $20.0 million at appraisal to $18.4 million at project completion. The project cost by category and financing source is summarized in Appendix 9. D. Disbursements 29. The first disbursement of $0.5 million was made in February 1997 as an advance to the imprest fund, and the final disbursement of $0.037 million was made in September 2002. The proportion of loan funds disbursed for each category was generally within the original allocation. Total disbursements amounted to $18.2 million including service charge and the undisbursed balance of about $0.2 million was canceled on 29 October 2002, the loan closing date. The breakdown of yearly disbursements from the ADB loan is shown in Appendix 10. An imprest account was established at the National Bank of Cambodia with an initial deposit of $500,000 as indicated in Schedule 3 of the Loan Agreement. The imprest fund was efficiently utilized and liquidated with an average annual turnover of 1.4 compared with the country average of 1.25. E. Project Schedule 30. The loan was approved on 20 June 1996 and became effective on 28 October 1996. Although there were some delays, the Project was completed by 30 April 2002 as envisaged at appraisal. Civil works, followed by installation of factory equipment, were completed 1 year later than the original plan, and additional minor works continued every year. This initial delay was due to the (i) extra time taken for the review and approval of factory and warehouse design, equipment specification, and construction cost; and (ii) extra time taken for procurement of the printing press (para. 39). At the beginning of the Project, the staff in the Project Implementation Unit (PIU) and officials in concerned divisions in MOEYS and other agencies needed more time to understand ADB’s procurement guidelines and procedures. Nevertheless, this delay did not affect the textbook distribution significantly because during the period of delay most of the time was used for staff training, textbook authoring, and other preparation for printing. 31. The research component for policy and impact studies was delayed by about 21 months because it was first agreed that MOEYS would implement the studies. However, due to MOEYS’ limited human resource, the studies had to be implemented by consultants and follow-up research was conducted intermittently to clarify comments. Despite the delays, Phase I studies were completed prior to the midterm review as anticipated at appraisal and core part of

9

findings were presented in time. Introduction of the aid management information system was smooth; however, because of its late start due to the integration process of PMMO in the Department of Planning, the work was completed 18 months after the original plan. Appendix 11 compares the implementation schedule at appraisal with the actual achievement. F. Implementation Arrangements 32. The implementation arrangements at appraisal were generally appropriate to deliver the project outputs and achieve the project purpose without requiring any major change in implementation arrangements. MOEYS was the Executing Agency for the Project. The PIU was established with seven regular staff in the Publishing House on full-time basis, including procurement officers, finance officer, accountant, administrative officers, and the project manager. After the completion of the Project, these staffs continue serving for the PDH with ample experience and skills as envisaged in the project design as a key arrangement for sustainable post-project operation. The secretary of state, MOEYS, was the project director. The director of the Publishing House, which was converted to PDH in 1999 under the Project, served as the project manager. G. Conditions and Covenants 33. The Project has 33 loan covenants in the Loan Agreement, comprising 18 general covenants in the Article IV, including covenants for financial audits and project accounts, progress reporting, and the Borrower’s project completion report; 1 in Schedule 3 for the imprest account; and 14 in Schedule 6 for the project specific assurances. Except for the submission of audited financial statements for the fiscal year (FY) 2001 and 4-month period in FY2002, submissions of audited financial statements for previous years, progress reports up to the first quarter of 2002, and the project completion report were timely and all other general covenants had been complied with. The covenant for the timely opening and maintenance of the imprest fund account had been complied with. Out of 14 project-specific covenants in Schedule 6, 13 covenants had been complied with. The covenant for establishing standards for neutrality in gender and ethnicity/equalization of education had been complied with after almost 10 months delay due to extra time for MOEYS to conduct field studies. 34. A covenant in Schedule 6 for increasing school hours in primary and lower secondary school has been complied with in urban areas. In the province, the achievements of the target school hours are still uneven despite the official regulations on longer hours issued by MOEYS. This is mainly due to the physical constraints such as classroom space, teachers’ availability and salary level; and the regional life customs, hard living conditions, and vulnerability to floods in lowland areas or severe climate in the mountainous regions. MOEYS is considering the introduction of flexible classroom management to achieve full compliance of the covenant prior to the next major curriculum revision in 2006. 35. There was no covenant that had been modified, suspended, or waived. Appendix 12 summarizes the status of compliance with covenants. H. Consultant Recruitment and Procurement 36. Consultant Recruitment. Selection and engagement of the consulting firm were carried out by the quality-based selection method in accordance with ADB’s Guidelines on the Use of Consultants. No major difficulties were encountered with procedures, and the contract was successfully negotiated with the international consulting firm providing the first-ranked technical

10

proposal. During the contract negotiation, the bid evaluation committee of the Executing Agency had planned to negotiate the contract as a lump sum contract, as it did for the consulting services under the Basic Skill Project,9 while the firm had assumed a cost-plus-fee contract, based on actual services provided. Finally the contract was negotiated as a cost-plus-fee contract in view of the long-term engagement and nature of service to assist an institutional development process where the direct output of the consultants is difficult to measure. The consultants were mobilized within the agreed 30 days and provided services by annual work plans agreed upon between the Executing Agency and the consultants. 37. Under the Project, consulting services for textbook publishing management, textbook development for social studies, designing, authoring, and editing skills, procurement process, and aid management system were provided with input of 235 p-m of international consultants and 28 p-m of domestic consultants, compared with the appraisal estimates of 229 p-m and 18 p-m, respectively. UNICEF provided 54 p-m of consulting services for developing textbooks for Khmer, mathematics, and science as estimated at appraisal. The policy and impact studies and BME activities were subcontracted as envisaged at appraisal utilizing 369 p-m of 31 domestic consultants and enumerators. The detailed breakdown of consulting services is summarized in Appendix 13. 38. Procurement Process. The indicative procurement plan envisaged at appraisal included: two civil work packages for paving 1000 m2 hardstanding and office renovation, and one package for service vehicles by local competitive bidding; seven equipment packages by international shopping or direct purchase, except one by international competitive bidding or international shopping for binding equipment; an international competitive bidding package for procurement of printing papers; and one direct purchase package for office furniture. Actual procurement was carried out in accordance with this indicative plan at appraisal and ADB’s Guidelines for Procurement. UNICEF funded the procurement of a 10-ton truck for textbook distribution and materials for textbook preparation following its procurement guidelines and procedures. In addition, the Ministry of Economy and Finance was invited to send a representative to all bid openings by the PIU. This arrangement made the procurement process transparent and allowed the Ministry of Economy and Finance to approve procurement on a fast-track basis. Appendix 14 compares the actual procurement with the indicative procurement plan at appraisal. There were no significant problems with procurement during implementation. I. Performance of Consultants, Contractors, and Suppliers 39. Helped by the Government’s commitment to the implementation, the performance of the consultants was highly satisfactory in particular with their work organization, timeliness, output, work relationship with the counterpart staff, which facilitated an effective technical transfer process as well as timely and accurate billings. As indicated by the actual p-m, the contract variations were kept to a minimum. Domestic contractors for civil works had technical difficulties in completing hardstanding in the Publishing House premises due to the surface fissures and subsidence caused by heavy load and rainfall against soft soil. Installation of equipment and deliveries of printing paper mainly from Indonesia and some from Thailand were mostly on time. One exception was the procurement of the printing press. During protracted issuance of performance bond and issues related to the letter of credit, the machine originally proposed was taken out of production. However, after negotiation with the supplier, a machine with better

9 ADB. 1995. The Report and Recommendations of the President to the Board of Directors on a Proposed Loan to

the Kingdom of Cambodia for the Basic Skill Project. Manila.

11

specifications was delivered and installed at the original price. This incurred a delay of almost 7 months altogether. J. Performance of the Borrower and the Executing Agency 40. The Executing Agency met its responsibility in implementing the Project in a timely manner without extension or reduction of scope despite some initial delays. Compliance with loan covenants, including submission of progress reports and audited financial statements had been satisfactory. The PIU, in close collaboration with the Executing Agency and the Borrower, was able to utilize resources provided under the Project efficiently and effectively; particularly for the consulting services in developing textbooks within the given timeframe and budget, and for institutionalizing the textbook publishing and distribution system with PDH. The record of annual turnover of the imprest fund also indicates the PIU’s efficient financial management performance. The Government, including the Borrower, the Executing Agency, the PIU, and other agencies concerned, worked together for the incorporation of PDH within the project period. Thus, the assessment provided at appraisal for the Executing Agency’s implementation capacity and commitment was reasonably accurate. 41. Following project completion in April 2002, the Borrower allocated a budget of $3.5 million for FY2003 to support the continued textbook publishing and distribution in the country. Including this initial budget, a financing plan prepared by the Government for future operations is summarized in Appendix 15. 42. The Executing Agency, MOEYS, has changed the corporate value system in PDH from a traditional supply orientation to a market orientation as envisaged at appraisal. It has also achieved physical change in integrating and incorporating fragmented textbook publishing and distribution functions into a PEEC. The key remaining work for completing this institutional process is the introduction of a corporate accounting and costing system in PDH, and the review of procurement and bidding procedures for PDH to fully utilize its capacity in a timely manner to ensure a constant nationwide supply of textbooks. 43. Overall, the performance of the Borrower and the Executing Agency, including the PIU, was highly satisfactory. The good performance is attributable to the step-by-step preparation of the Project in a manner consistent with the Education Sector Study (footnote 4) and project provisions for institutional development based on the adequate institutional assessment at appraisal, which identified concrete achievement targets and monitoring indicators. K. Performance of the Asian Development Bank 44. During project implementation, from October 1996 to April 2002, ADB dispatched 13 review missions, including inception and midterm review missions, and 2 to 3 review missions annually. The Project Completion Review Mission was advised that the review missions were effective and instrumental in resolving various implementation issues at their early stages. It was also pointed out that the only procedural difficulties encountered were related to tracking down of disbursements; it has not always been clear to the PIU staff how balances are calculated, particularly with regard to how fluctuations in currency exchange rate between special drawing rights and US dollars are accounted for in the loan status reports. The performance of ADB was satisfactory. The project manager and concerned officials attended the Project Implementation and Administration Seminar held in 1998 in Phnom Penh.

12

III. EVALUATION OF PERFORMANCE A. Relevance 45. The Project was highly relevant. As detailed in paras. 2–6, including ADB’s advisory TA prior to the appraisal, the Project’s design and formulation was carried out following a step-by-step participatory approach, which enabled due conformity of the Project with ADB’s education policy framework and the Government’s Textbook Master Plan 1996-2001. The Project successfully implemented the main components of the master plan, which consisted of (i) institutional development, (ii) access to the quality textbook with teacher training, and (iii) policy studies. At completion, the relevance of the Project to ADB’s latest education policy10 is still valid because the project output is, as intended at appraisal, realizing three key dimensions in development of the education sector in Cambodia: improvement of quality, access, and institutional capacity, particularly at basic education level.11 46. ADB approved two changes of scope during and after the midterm review to add to the original scope provisions of (i) textbooks for upper secondary schools (grades 10–12), and (ii) supplementary teaching and learning materials. These changes enhanced the anticipated development impact of the Project as evidenced by the commendable improvements in key monitoring parameters such as dropout and repetition rates. Encouraged by this achievement, the Government developed the Textbook Master Plan for the next planning period of 2001-2005 during the final stage of the Project. The new master plan will be implemented based on what the Project has achieved with assistance from ADB’s ongoing ESDP (footnote 7). B. Efficacy in Achievement of Purpose 47. The remarkable improvements in students’ performance in promotion, pass, dropout, and repetition rates prove the efficacy of the Project, which aimed to improve the quality of basic education by providing better access to textbooks. Through the Project, access to quality textbooks by more than 2.8 million primary and secondary students has been made possible. The textbook-pupil ratio for core subjects in basic education has reached 1 to 1 at the national level. UNICEF complemented this physical achievement by providing extensive teacher orientation programs. Over 66,000 teachers can better prepare for their lectures using the teacher guides that were provided for each core subject. The Project has set in motion a process toward the wider development goal of improving general education in Cambodia. The Project was highly efficacious. C. Efficiency in Achievement of Outputs and Purpose 48. With the appropriate design process and the satisfactory performance of the Executing Agency during its implementation, the Project efficiently utilized resources provided under the loan and achieved the anticipated outputs. Moreover, the Project realized the institutional efficiency required for cost-effective textbook publishing and distribution as envisaged at appraisal. The Project was very efficient. 49. The Appraisal Mission pointed out inefficiencies caused by, for instance, fragmented core functions for textbook publishing and rigid financial provisions that had made the publishing function unresponsive to demand from the teaching/learning sites. At completion, an institutional

10 ADB. 2002. Policy on Education. Manila. 11 ADB. 2002. Policy on Education. Manila. Paragraph 2, page 1, and page 19.

13

diagnosis exercise comparing the status before and after the Project proved that the establishment of PDH effectively reduced institutional inefficiencies in textbook publishing and distribution. In terms of physical efficiencies, by creating a public/private partnership for printing through the conversion of PDH into a PEEC and streamlined procurement systems, the Project has effectively maintained the cost of textbooks at a sustainable level. The production and distribution statistics and detailed annual figures report average unit costs of textbook printing and distribution for grades 1–9, 10–12, and 1–12 in SY2002 at $0.50, $0.73, and $0.52, respectively, or average unit costs for textbook printing alone at $0.43, $0.70, and $0.46, respectively, compared to the unit cost of $0.59 per copy for grade 1–9 estimated at appraisal. D. Preliminary Assessment of Sustainability 50. Financial Commitment. Disbursement of the Government’s counterpart funds during implementation was smooth. The amount of counterpart funds net of tax and duties at completion of the Project was $4.50 million compared with $5.97 million estimated at appraisal. Major reasons for the lower counterpart fund figure were the increase in UNICEF input from $3.24 million at appraisal to $5.19 million, and the depreciation of the riel. 51. The Project had financed major recurrent costs for international procurement of printing paper since the early stage of the reorganized production operation. During the Project, the total amount financed for the purchase of paper was $5.74 million, which represents a large part of the production cost. The Borrower’s special attention to generating its own funds for the cost of paper upon completion of the Project was a key element to the sustainable operation of PDH. Based on an analysis of estimated enrollment, (which is equivalent to the level of textbook demand in schools), number of copies to be delivered under the reuse system, and production cost for each year up to 2005, MOEYS requires about $3.5 million annually for post-project operation. Upon completion of the Project, the Government had already allocated KR14.0 billion (equivalent to $3.5 million) for operation of the project facilities during FY2003. With this allocation, MOEYS has already contracted out the textbook publishing and distribution work to PDH. Despite minor delays in contracting and disbursement, PDH has started the operation for distributing textbooks for the next school year. 52. Policy and Legal Commitment. The proposal for incorporating PDH into a PEEC was approved within the original implementation period. The Council of Ministers has approved the copyright law to prohibit informal business. The Government has been promoting the decentralization of the national education system, and the establishment of PDH as a PEEC was carried out following this principle. The reliable distribution function of PDH is closely dependent on the improved administrative capacity in the provincial offices and schools. MOEYS has been working on the improvement in provincial education administration under the country’s public administration reform activities. The Government will continue capacity building at the provincial level, including strengthening of the distribution network. 53. Institutional Arrangement. To complete the corporatization process under the Project, PDH, although at its infant stage, has been undertaking administrative arrangements, including corporate management system developed for PEEC operations. A corporate management system introduced to PDH under the Project adopted an accrual-based accounting system to incorporate depreciation for the presentation of appropriate profit/loss and cost figures during each period of operation; it also set up a reserve account for major repairs and replacement of machinery. The impact study indicated that secured delivery of textbooks to students is a key factor in achieving the national goal of higher quality education in Cambodia. However, the findings of the policy studies indicated that private partnership activities in the transport sector

14

for smooth delivery of textbooks could not achieve the anticipated results, mainly because the transport market is still narrow in Cambodia. Therefore, to ensure smooth delivery of textbooks, MOEYS has already established hub stations for textbook distribution (bookshops) in 15 out of 24 provinces to support the distribution network for educational materials. 54. Relevance to the Educational Needs. The textbook publishing and distribution function of MOEYS is integrated within the autonomous client-oriented PEEC so that textbook provision in the country will be more responsive to the needs of teachers and students at site. PDH, in collaboration with PRD which is responsible for curriculum revisions, will continue to revise the textbooks prepared by the Project taking into consideration the feedback from schools through the textbook order sheets (para. 17). No such regular feedback loop existed before the Project. 55. Follow-Up Assistance. ADB started implementing ESDP in April 2002 and is currently considering a follow-up loan. UNICEF, the European Union, and other multilateral and bilateral sources of assistance are also keen to provide continued support to the sector. UNICEF continues to be a partner of the Government in the area of curriculum development. The PMMO established under the Project will be able to coordinate these inputs under the priorities set in the second Textbook Master Plan and Education Sector Study. 56. Sustainability. The Project at its completion is most likely sustainable. This conclusion is based on its relevance to the needs of beneficiaries; policy, legal, and financial commitments of the Government; institutional arrangements already in place; and the Government’s demonstrated capacity to make the most of a favorable assistance environment. E. Institutional, Environmental, Sociocultural, and Other Impacts 57. The Project promoted market-oriented publishing and distribution operations by the incorporation of PDH. Throughout the process of integration and incorporation of publishing and distribution functions, institutional indicators in the key areas such as management system, organizational structure, values system, leadership, and strategy and policy formulation have achieved the targets set at appraisal. ADB consistently strove to reduce sociocultural bias from the general education through the work of the GEDC (para. 8). Loan covenants included the establishment of the GEDC and adoption of gender and ethnic balance criteria not only for the textbook authoring but also for the entire policy formulation process in MOEYS. To ensure implementation, ADB financed the publishing of social study textbooks. There was no adverse impact by the Project on the environment. In summary, the institutional development and other impacts are considered substantial.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment 58. The Project is rated highly successful. It was implemented as conceived at appraisal. Key criteria given in the ADB guidelines, including project relevance, efficacy, efficiency, sustainability, and institutional development and other impacts as well as the indicators summarized in the project framework and other performance parameters support the rating.12

12 Staff estimates by the Guidelines for the Preparation of Project Performance Audit Reports, September 2000. The

details are provided in supplementary appendix A, available upon request.

15

B. Lessons Learned 59. Most of the staff development activities under the Project were implemented on the job, and on a short-term or intermittent basis by international consultants to keep abreast with the progress of reorganization and systems development in the Publishing House and later in its successor, PDH. This arrangement effectively minimized staff absence from the implementation sites, which is often caused by longer term off-the-job training programs that may lead to implementation delays, and it has reduced the implementation cost compared with the formal off-the-job training programs (para. 10). 60. The Project has addressed the importance of textbook distribution, which most of the previous textbook projects seem to have overlooked. This focus on delivery mechanism is a key to the Project’s sustainability, and, therefore, needs to be incorporated in future ADB operations dealing with social services and provision of public necessities (paras. 17 and 18). C. Recommendations

1. Project-Related 61. Submission of audited financial statements for FY2001 and 4-month period in FY2002 is in progress. Staff in charge for the Project in Social Sectors Division, Mekong Department, will monitor the compliance. It is also recommended that future ADB missions of the ongoing ESDP monitor several aspects through discussions with officials and collection of annual reports of MOEYS and PDH. The results of such monitoring should be briefly mentioned in the aide memoire or memorandum of understanding of such missions for the attention of the Borrower, the Executing Agency, and other concerned agencies. Specific aspects requiring further monitoring include:

(i) longer school hours to fully cover the new textbooks; (ii) continued supply of textbooks in accordance with school calendar; (iii) key parameters for education sector performance included in the project

framework; (iv) status of illegal sale; and (v) establishment of corporate management in PDH until PDH regularly prepares the

audited financial statement of its operation. In particular, item (i) relates to a loan covenant that is not yet fully complied with. This item needs to be closely followed up under the ESDP. 62. A mission for the project performance audit report, if it is considered necessary by the relevant ADB department, could be fielded shortly after the next major curriculum reform currently anticipated around 2005.

2. General 63. The success of this Project owes a great deal to the systematic, participatory preparation process and continual efforts to build ownership and meet both intermediate and long-term development goals. The continued and consistent assistance toward maximizing the benefits and development impacts as demonstrated by the Project should be considered as a model for future assistance.

Appendix 1 16

PROJECT FRAMEWORK

Design Summary Project Targets (Verifiable Indicators) Achievements

Sector/Area Goal

1.1 1.1

Grade 6 and 9 student performances improved by 20% by 2000

Grade 6 promotion rate increased from 75.0% in SY1997 to 78.0% in SY1999 and 83.1% in SY2001; Grade 9 exam pass rate increased from 40.4% in SY1997 to 43.85% in SY1999 and to 50.1% in SY2001

1.2 1.2

Wastage rates reduced by 2%0 by 2000

Grades 1 and 6 Dropout rates: Repetition rates SY1997 6.8% and 10%; 38.9% and 15%a SY1999 5.8% and 9.0%; 30.0% and 13%a SY2000 2.94% and 8.17%;24.0% and 6.2%b SY2001 1.65% and 1.5%; 12.0% and 3.2%b

1.3 1.3

1. Contribute to improvements in the quality, efficiency, and sustainability of basic education services

Nonsalary/salary recurrent budget ratios raised by 10% by 2000

Education share of national budget 11.82% in 1996; 13.7% in 1999 and 15.0% in 2001. Non-salary recurrent budget 24.7% of total Ministry of Education, Youth and Sports (MOEYS) budget in 1996, 23.7% in 1999 and 29% in 2001.

Objective/Purpose 1.1 1.1

Book per student ratio of 1:1 in core subjects from 1997

Book:pupil ratios close to 1:1 in each core subject in most schools in grades 1-9

1.2 1.2

Cost-effective book production systems in place from 1997

Average unit cost for production and distribution $0.50 per copy for gr.1-9, $0.73 for gr.10-12, and $0.52 for gr.1-12 Average unit cost for production only is $0.43 per copy for gr.1-9, $0.70 for gr.10-12, and $0.46 for gr.1-12

1.3 1.3

Increased parent/Govemment cost-share ratio from 1999

Govt. /parent cost-sharing mechanisms in place for grades 10-12 (c.50:50) and supplementary books. Not instituted for grades 1-9, but commercial editions also available for sale.

1. Improve availability, quality, equity, efficiency, and sustainability of core textbook provision in primary and lower secondary schools through publishing sector reform

1.4 Improved textbook user satisfaction

Textbook user satisfaction assessed under Availability and Utilization Studies 1999-2001

Project Outputs 1.1 1.1

Public/private publishing output doubled by 1998

Public educational books publishing output more than doubled. Private sector publishing now significant though small-scale and often ad-hoc.

1.2 1.2

Restructured publishing organization functioning by the end of 1999

Publishing and Distribution House (PDH) restructured in SY1999.

1.3 1.3

Increased autonomy of operational and financial management decisions by the end of 2000

Steady progress maintained. Operational planning greatly improved under the Project because of stable budget platform for planning. New financially and operationally autonomous organizational status as Public Enterprise with Economic Characteristics prepared and expected operational in February 2002.

1.4 1.4

1. Expanded, more autonomous, market-oriented textbook provision system

Increased public/private partnership in production and sales

Private sector heavily involved in production (67% of printing in 1997 and 1998, 58% in 1999, 46% in 2000, 37% in 2001. No cost-effective private interest in distribution functions at national level. Small-scale entrepreneurs employed at provincial and district levels. Private sales agents and booksellers involved in textbook marketing and selling since 2000.

a = Education Management Information System data (reflect mid-year status in schools) b = Primary Dept. data (reflect end-of-year status in schools)

Appendix 1 17

Design Summary Project Targets (Verifiable Indicators) Achievements

2.1 2.1 2. Improved publishing staff development systems

90 professional staff trained by 2000

Training provided to all levels of staff during project period (over 120 PDH staff, as well as c.60 PRD staff under the research program).

3.1 3.1

28 million textbooks and 0.5 million teacher guides supplied by 2001

Total 30,455,000 copies of textbooks and teaching manuals produced by end 2001 (27,859,000 grades 1-9 free distribution, 1,000,000 grades 1-9 for sale, 1,149,000 grades 10-12 part free part sales, and 447,000 copies of supplementary books for sale). Sustainability of operations ensured through management development as well as institutional capacity (technical and human resources) building. Sustainability of provision now mainly dependent on sustainability of financing from government budget (about 93% of needs intended to be provided to schools using government funds and 7% of needs funded by parents and communities in 2002).

3.2 3.2

Textbook financing studies carried out by 1998

Policy studies Phase 1 completed June 1999, Phase 2 to be completed February 2002, including Textbook Financing Handbook.

3.3 3.3

School-based cost-sharing pilot schemes started in 1999

3.4 3.4

3. Sustainable textbook supply systems

Textbook sales mechanisms in place by 1999

Govt. /parent cost-sharing mechanisms tested in SY2000 (Grade 10) and now in place for all grades 10-12 (c.50:50) and supplementary books. Not instituted for grades 1-9, but commercial editions also available for sale. Decentralized school budgets expected to broaden scope of cost-sharing.

4. 4.1 4.1

20 research institute staff trained by 1998

Approximately 60 Pedagogical Research Department (PRD) staff trained under the research program. All PRD staff also received training under United Nations curriculum component, as well as training in book evaluation and approval systems.

Improved textbook impact monitoring and evaluation system

4.2 4 evaluation study reports completed by 2001

4.2 Re-use study in 1997. Small-scale re-use/availability study in 1999. Main Research Component: Availability and Utilization Studies in 1999, 2000 and 2001; Impact Studies in 1999/2000 and 2000/2001. Midterm review and associated benefit monitoring and evaluation and progress studies in 1999.

5. 5.1 5.1

4 policy studies completed by 1998

Composite report on all aspects (Policy Studies Phase 1) satisfactorily completed in 1999. Phase 2 to be completed in February 2002.

5.2 5.2

New publishing legislation and regulatory framework

Intellectual property and contracting laws and regulations in place by 2000

Recommendations for action in Policy Studies Phase 1. Assistance provided to drafting of new Copyright Law, which is expected to go to National Assembly in 2002. Legislative framework for commercial environment continues to progress.

6. 6.1 6.1

12 Project Management and Monitoring Unit (PMMU) staff trained by 1999

10 Program Management and Monitoring Office (PMMO) staff trained, though 6 left to other departments. Staffing requirement revised to total of 7.

6.2 6.2

Consolidated and diversified aid management and monitoring systems

Annual aid management and monitoring systems in place by 1998

Provincial level aid management and monitoring operations set up by 1999. Aid management information system (AidMIS) database established and distributed in May 1999.

Appendix 1 18

Design Summary Project Targets (Verifiable Indicators) Achievements

7. Improved mechanism to screen textbooks for gender and other bias

7.1 Editorial staff trained by 1998 7.1 PRD Committee established October 1998; guidelines and criteria developed; pilot review and training carried out; full review in 2000. Educational Materials Approval Board (EMAB) established in 2000, and gender/ethnic/disability criteria

incorporated in approval criteria.

Activities Inputs 1. 1.1 1.1 1.2

Implementation of publishing organization plan

Consulting services, MOEYS resource personnel, minor refurbishment, and publishing and printing equipment

Efficient project implementation unit established within PDH (using mainly PDH staff), including Procurement Office. Management and technical assistance (TA) performance reviewed during midterm review and annual review missions as highly satisfactory. TA in post by July-August 1997; procurement of equipment and materials mainly to schedule.

2. 2.1 2.1

Staff training needs assessment. program design, and implementation, both domestic and international

Consulting services, local workshops, on-the-job-training, and study tours

Most training on-the-job; skills training by TA; supplemented by domestic companies for computer/language training. 4 study tours carried out.

3. 3.1 3.1

Development of camera-ready copy, printing, binding, and distribution of books to schools, including public/private joint activities

Consulting services for technical support and training; paper and other printing materials and distribution costs

Textbook development, production, and distribution mainly on schedule every year, using public and private printers; some use of private entrepreneurs for transportation at district and school levels

4. 4.1 4.1

Detailed design, implementation, and dissemination of evaluation studies

Consulting services for technical support and training; survey and dissemination costs

Research component delayed by 1 year. Availability and utilization studies satisfactorily completed for 1999, 2000, 2001; Impact studies satisfactorily completed for 2000, and 2001 report to be handed over in February 2002.

5. 5.1 5.1

Detailed design, implementation, and dissemination of policy studies

Consulting services for technical support and training;, survey and dissemination costs

Phase 1 of policy studies (composite report of 4 policy aspects) satisfactorily completed June 1999. Phase 2 to be handed over in February 2002.

6. 6.1 6.1

Design and implementation of PMMU development plan, including provincial-level operations

Consulting services, training workshops, equipment, and logistical support

Implementation of plan at provincial levels and for AidMIS satisfactory. At central level, delays were caused by slow recruitment and high turnover of staff, late fielding of TA, and uncertainties over institutional location and demarcation of tasks and responsibilities.

7 . 7.1 7.1

Gender etc. screening criteria for textbook design formulated and used in manuscripts development

Consulting services, local resource personnel, support for MOEYS screening committee activities

PRD committee established October 1998; guidelines and criteria developed; pilot review and training carried out; full review in 2000. Criteria used in generation of new titles beginning with Grades 5 and 11. EMAB established in 2000, and gender/ethnic/disability criteria incorporated in approval criteria.

Appendix 2 19

Publishing House, 1996 Ministry of Education, Youth, and Sports (MOEYS)

Deputy

Editorial Section 4+16

Head DTP Section

6

Pre-Press Section 4

Press Section 15

Director Vacant

TotaWo

Director

Head Administration

9

Maintenanc2

Bindery Section36

PrintinDepu

l Staff: 74 men: 33%

g House ty Chief

e Section

Note: Editorial Section relocated from Research Insitute in 1998 and staff numbers rose from 4 to 16 at that time.

Appendix 2 20

MOEYS Distribution Center, 1996

Vice Chief Didactic materials

planning development 1

Production Section

5

Development Section

4

Director Distribution

Warehousing 1

Chief of Office Distribution

- warehousing -distribution

1

planVice Chief

warehousing and transport

Vice Chief ning and evaluation

Clerks

Senior Clerks

1

Foreman Transport

Fork-lift driver

Workers

Lorry drivers

Lorry co-drivers

Foreman Warehouse

1

Publishing and Distribution House as a Public Enterprise with Economic Characteristics, 2002

Director General 1

Internal audit

Publishing Department

1

Didactic Materials

1

Product Department

1

General Affairs 1

Deputy Director General

Editing 10

Design Layout

9

Research & Development

3

Production

BOARD OF DIRECTOR 5 members

Administration Department

1

Marketing and Sales Department

1

Warehouse 1

Printing House

1

Marketing 1

Accounting1

Cashier 1

Distribution 1

General Affairs1

1 Planning

Staffing andInventory

2

Legal and Disciplinary

2

Procurement 1

Finance 1

Supplies 1

Warehouse1

Market research

2

Sales 3

Books allocation

4

Data 2

Stock 7

Delivery 5

Administration1

Pre-press 6

Press 12

Finishing 32 Appendix 2 21

Appendix 3 22THE PUBLISHING HOUSE - INSTITUTIONAL ASSESSMENT

Diagnostic Criteria 1996 Baseline 2002 Target Achievements

A. Systems (i) Operations Highly fragmented Integrated All writing, publishing, printing,

sales, and distribution functions now integrated within one organization: the Publishing and Distribution House (PDH).

(ii) Personnel functions

Bureaucratic; rigid Task-oriented; flexible

Under the organizational reform process initiated by the Project to integrate editorial functions of the pedagogical research department (PRD) of the Publishing House and Distribution Center personnel functions are redefined by the output and competency based job descriptions. Once the transformation of PDH to public enterprise and economic characteristics (PEEC) is initiated, the corporate management system developed under the Project will reinforce the implementation of the revised personnel functions by linking to the personnel evaluation system.

(iii) Information/ feedback

Top-down Collegial; top-down/bottom-up

The vertically divided information flows that had hampered the information and knowledge sharing have been removed to some extent through the process of integrating the publishing, production, and distribution functions. Through the ongoing decentralization process of the national education management systems, as well as the cost sharing and recovery measures introduced by the Project, the planning and decision-making system for textbook production and distribution has begun to incorporate information and feedback from individual schools.

(iv) Financial Short-term; reactive Long-term; proactive Transformation process of PDH to more autonomous PEEC under the Project introduced proactive and long-term approach to the PDH financial management system, including 3-year medium-term planning and budgeting.

Appendix 3 23Diagnostic Criteria 1996 Baseline 2002 Target Achievements

B. Structure (i) Accountability Blurred;

project-oriented; external aid-driven

Clearly defined; performance- oriented; driven by Ministry of Education, Youth, and Sports (MOEYS)

Under the Project, improved aid management and coordination by the program monitoring and management unit (PMMU); the integration of publishing and distribution functions into PDH; and the transformation process of PDH to PEEC has made investment decision making in the education sector more accountable, less aid-driven, and more performance based. PDH demonstrated a catalytic role in this process with subsector planning, allowing MOEYS to actively seek funding (both government and external) including counterpart funds of KR14 billion for textbooks in 2002 national budget. The Project created the initial momentum for the upcoming education sector development program.

(ii) Reporting Adhoc; financed focused

Regular; management- focused

The process for transforming PDH to a PEEC, including the corporate management system developed under the Project has changed reporting style to activity and output focused for effective management control, where PDH production, sales, and distribution monthly output reports are provided as inputs into monthly, quarterly, and annual Project progress assessment reports.

(iii) Coordination Highly fragmented; horizontal

Integrated; task-oriented

All writing, publishing, printing, sales, and distribution functions now integrated within one organization: the PDH.

C. Value System (i) Quality consciousness

Mechanistic; function-based

Professional-adaptive; process-based

The introduction of output and competency based job descriptions and their linkage to the personnel evaluation system under the forthcoming PEEC autonomous management, the feedback system from schools, and cost sharing and recovery measures are changing the traditional mechanistic and function-based work styles to those which value output quality at each level of operations in textbook production and distribution. Under the Project, shift of PDH management focus from quantity

Appendix 3 24Diagnostic Criteria 1996 Baseline 2002 Target Achievements

to quality introduced quality control systems to actively incorporate feedback on how the products are accepted in schools.

(ii) Client orientation

Aid agency-driven MOEYS / beneficiary-driven

Less aid-driven operation created by the improved aid management and coordination by PMMU; the integration of publishing and distribution functions into PDH; and the transformation process of PDH to PEEC has made textbook production and distribution more responsive to demand and commensurate with the capacity of MOEYS compared to the situation prior to the Project. Client focus enabled the MOEYS to provide training in book management in schools, establish textbook wholesale agents in 16 provinces and open its own bookshop in Phnom Penh for textbooks and didactic materials.

(iii) Teamwork Consensus-oriented Action-oriented The output and competency-based job descriptions and their linkage to the personnel evaluation system under the forthcoming PEEC management requires action- oriented teamwork.

(iv) Innovation Unrewarded Rewarded New reward system needs to be introduced following the output and competency-based job descriptions linked to the personnel evaluation system.

(v) Openness to change

Limited; command-driven

Adaptive; market-driven

Entire process of transformation to PEEC requires greater openness to change by both individuals and organization. Progress is being made, though greater adaptability expected with PEEC. All management and supervisor posts redefined with performance-related job descriptions as part of management development process. Offices more market-driven, though market still in its infancy: Distribution Office is now school-oriented, and has improved services to schools (e.g. provides training in book management, has established chain of book agents and sellers, has opened own bookshop); Printing House actively seeks

Appendix 3 25Diagnostic Criteria 1996 Baseline 2002 Target Achievements

contracts (though government

constraints will continue to restrict this activity until the PEEC is established); Editorial, Marketing and Didactic Materials Offices beginning to plan output on the basis of market factors.

D. Leadership (i) Management style

Mechanistic Adaptive Entire process of transformation to PEEC requires greater openness to change by both individuals and organization. Progress is being made, though greater adaptability expected with PEEC. Management more market-focused, but room for further change (C (v)).

(ii) Motivation Immediate; financial; non- work related

Medium-term; financial and job-related; performance satisfaction

In the Cambodian economic context, the greatest motivation will continue to be financial and immediate for the foreseeable future. However, the management culture within PDH has always been motivated by duty and responsibility. Improved financial conditions (e.g. overtime and incentives payments) as a result of regular turnover have also permitted better focus of energy on the PDH, greater job-satisfaction and higher outputs. Over 100% publishing and distribution targets achieved because of high managerial and staff motivation.

(iii) Stakeholder relations

Centralized; authority-focused

Decentralized; beneficiary-focused

C (ii). Focus of all activities now decentralized.

E. Strategy/Policy (i) Clarity of goals and objectives

Short-term; narrow Long-term; broader institutional

Presently only short and medium-term goals and objectives defined with any degree of detail. Long-term goals dependent on development of commercial and macro-economic environments. Further improvements are expected once PEEC is in operation.

(ii) Client responsiveness

Aid agency/authority- driven

Pupil/teacher-driven see C (ii)

Appendix 4 26

POLICY MATRIX

Policy Direction Strategic Options Project Activities

Anticipated at Appraisal

Achievements

a. a.

Formal mechanisms (e.g., Textbook Board)

Textbook publishing advisory technical assistance (TA) in 1996

TA on textbook publishing planning and management completed March 1997

b. b.

1. Improved curriculum and textbook consistency and quality control

Informal mechanisms (e.g., publishing committees)

Project Coordination Committee (PCC)1 directions 1997-2001

Reporting continues to PCC; however, policy direction is already internal to Ministry of Education, Youth and Sports (MOEYS) or at Cabinet of Ministers level. Smooth physical progress and institutionalization process require little direct intervention from PCC at the end of the Project.

Textbook Board handles operational issues.

Educational Materials Approval Board established 2000.

a. a.

Establishment of MOEYS Ethnic/Gender Screening Committee

Formulate screening criteria in mid-1996

Gender screening criteria were proposed in 1997 and adopted together with ethnicity and disability criteria in 1998-1999. Screening of gr.10-12 books completed in 2001

2. Bias-free textbook design

b. Establishment of nongovernment screening group

b. Establish committee and provide training in early 1997

Nongovernment screening group was not established. MOEYS Working Group was established during TA on textbook publishing planning and management in 1996, and reconstituted as gender/ ethnicity/ disability committee in 1998. Training seminars were held in March 1998 and 2nd and 3rd quarters 1999, involving all research institute staff and editors. Further training was provided with United Nations support. Gender/ethnic group/disabilities criteria

1 ADB. 1996. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the

Kingdom of Cambodia for the Basic Education Textbook Project. Manila, para. 62.

Appendix 4 27

Policy Direction Strategic Options Project Activities

Anticipated at Appraisal

Achievements

were incorporated into Educational Materials Approval Board procedures in 2000. Committee reviewed textbooks in 2000 and guidelines were used in generation of new titles for grades 5 and 11.

a. a.

Rationalization and optimum use of existing MOEYS textbook publishing system

Textbook publishing TA from mid-1996

TA on textbook publishing planning and Management completed March 1997. Publishing house efficiency was improved through the consulting services under the loan. Installation of sheeting machine and web-press in 1999 further improved cost effectiveness of in-house production

3. Cost-effective textbook production

b. Market-oriented publishing system

b, Public/private publishing sector study in late 1997

Publishing sector capacity study (Policy Studies Phase 1) completed in June 1999.

a. a.

Subcontracting of selected functions (e.g., printing, distribution)

Development of operational plans, including the private sector in 1997

Operational planning greatly improved under the Project because of stable budget platform for planning. Private sector heavily involved in production (67% of printing in 1997 and 1998, 58% in 1999, 46% in 2000, 37% in 2001 (target is approx. 50% private:50% PDH). No cost-effective private interest in distribution functions at national level. Small-scale entrepreneurs employed at provincial and district levels. Private sales agents and booksellers involved in textbook marketing and selling since 2000.

b. b.

4. Increased public/private partnerships

Liberalized, competitive textbook market

Public/private policy study in late 1998

Publishing sector policy study (Policy Studies Phase 1) completed in June 1999, recommends further moves toward liberalization of market.

a. a.

5. Enhanced devolution of operational decisions

Limited delegation of authority to the publishing house (e.g., administration)

Management development plan provided under advisory TA, mid-1996

Plans redefined and focused as progress made toward PEEC status for the publishing house.

Appendix 4 28

Policy Direction Strategic Options Project Activities

Anticipated at Appraisal

Achievements

b. Complete delegation of authority to the publishing house

b. PCC deliberations on policy studies in late 1999

Some policy study recommendations adopted in late 1999, including establishment of publishing house as a public enterprise with economic characteristics. Progress to achieve this has been slow for various reasons, but final transformation is expected in February 2002.

6. Strengthened legal and regulatory framework for publishing

a. Implementation of existing limited frameworks

a. Promotion of and incentives for selected subcontracting from 1997

Subcontracting of private printers began in 1997, using pre-qualification and competitive bidding procedures: private sector heavily involved

in production (67% of printing in 1997 and 1998, 58% in 1999, 46% in 2000, 37% in 2001). Attempted tendering of distribution was unsuccessful because low private sector interest and high cost gave no cost-effective private interest in distribution functions at national level. Small-scale entrepreneurs employed at provincial and district levels. Private sales agents and booksellers involved in textbook marketing and selling since 2000.

b. b.

Foundation and regulation of new frameworks

Policies studies and partial implementation of new plan from mid-1999

Publishing sector policy study (Policy Studies Phase 1) completed in June 1999, recommends frameworks for further liberalization of market. Decentralized school budget allocations will permit more rapid progress from 2002.

Draft Copyright Law now being handled by Council of Jurists prior to submission to Council of Ministers and National Assembly in 2002.

Establishment of commercial legislation, including contract law

Appendix 4 29

Policy Direction Strategic Options Project Activities

Anticipated at Appraisal

Achievements

progressing. Contracts in place between the publishing house and writers for grades 11 and 12 textbook development. All textbook production and distribution now based on signed contracts.

7. Enhanced cost-sharing

a. Revolving funds and rental schemes

a. Cost-sharing study from 1998 and piloting from 1999

Publishing sector policy study (Policy Studies Phase 1), completed in June 1999, recommends frameworks for cost-sharing. These have been adopted for grades 10-12 and for supplementary books. Schools operate rental schemes, mainly based on small contribution (KR100-300 per year) to help with book

maintenance. Textbook financing handbook to be completed in February 2002 as part of Policy Studies (Phase 2). Books sales piloted with Project-funded sales of grades 10-12 books starting in 2000. From 2001, also grades 1-9 books (commercial editions) available for purchase through book-selling systems.

b. Promotion of private purchases

b. PCC consideration of the recommendations of the cost-sharing study in 1998; textbook sales from 1999

Cost-sharing recommendations have been applied since 2000 for grades 10-12 and for supplementary books. Schools operate rental schemes, mainly based on small contribution (KR100-300 per year) to help with book maintenance. Text- book financing handbook to be completed in February 2002 as part of Policy Studies (Phase 2).

8. Improved publishing system; performance monitoring

a. Occasional studies and reviews

a. BME and reviews from end 1997

BME database developed in1998-1999 to monitor availability. Textbook availability and utilization reports available for 1999,

Appendix 4 30

Policy Direction Strategic Options Project Activities

Anticipated at Appraisal

Achievements

2000, and 2001, and textbook impact study report available for 1999 and 2000. 2001 report to be completed in February 2002.

b. b.

Establishment of benefit monitoring and evaluation system

Benefit monitoring and evaluation system in program management and monitoring unit and research institute from end 1998

Capacity building for research was incorporated within the Project’s research component beginning 1999, and capacity for research design, sampling, data collection, and statistical analysis is now in place.

Aid monitoring system, including computerized aid management system established and operational in program management and monitoring office (formerly unit) from beginning 1999.

9. Enhanced equity in textbook access

a. Nationwide public subsidies

a. Nationwide provision, 1997-2001

Nationwide provision was effected at 1:1 book:pupil ratio in all core subjects in 1997 (by 1999 for Social Science), though some distribution and allocation problems still remain, particularly in relation to new schools, and to schools badly affected by flooding

b. Targeted subsidies; private purchase

b. Policy studies to examine long-term options

Publishing Sector policy study (Policy Studies Phase 1) completed in June 1999, and Phase 2 to be completed in February 2002.

OLD CURRICULUM AND TEXTBOOKS FIRST YEAR OF CURRICULUM REFORM and Book:Pupil Ratios

RRP Actual Enrolment

Textbook Circulation

B:P Ratio RRP Actual

EnrolmentTextbooks in Schools

B:P Ratio RRP Actual

EnrolmentTextbooks in Schools

B:P Ratio RRP Actual

EnrolmentTextbooks in

SchoolsB:P

Ratio1 602,362 596,856 530,539 0.22 581,015 638,434 1,360,782 0.53 552,508 678,863 1,198,900 0.44 528,826 666,737 1,811,274 0.682 414,221 414,774 368,688 0.22 421,912 433,757 1,125,606 0.65 428,086 453,136 742,900 417,827 458,930 1,504,000 0.823 282,277 280,548 249,376 0.22 331,635 311,640 897,726 0.72 352,449 331,109 592,499 359,299 335,330 391,0504 215,526 213,227 189,535 0.22 238,857 221,506 714,078 0.81 275,968 240,121 671,042 296,890 253,833 442,8875 197,911 197,911 175,921 0.22 219,085 200,294 1,092,544 1.36 212,143 150,019 870,818 313,444 183,212 574,7406 N/A N/A N/A N/A N/A N/A N/A N/A 98,588 65,737 400,000 1.52 141,212 113,730 264,000 0.587 76,197 76,197 101,596 0.22 116,060 84,069 67,053 0.13 96,391 115,934 194,750 0.28 75,184 55,675 604,535 1.818 83,275 83,275 111,033 0.22 72,401 62,121 73,282 0.20 106,447 77,485 48,366 92,129 95,950 582,000 1.019 86,726 86,726 115,635 0.22 96,971 88,965 76,319 0.14 90,518 72,476 50,371 111,124 77,477 33,24510 29,30011 26,17612 18,373

Total 1,958,495 1,949,514 1,842,323 2,077,936 2,040,786 5,407,390 2,213,098 2,184,880 4,769,645 2,335,935 2,240,874 6,207,730

Re-use calculated at 66% 0.66

RRP Actual Enrolment

Textbooks in Schools

B:P Ratio RRP Actual

EnrolmentTextbooks in Schools

B:P Ratio RRP Actual

EnrolmentTextbooks in Schools

B:P Ratio RRP Actual

EnrolmentTextbook

CirculationB:P

Ratio1 543,208 681,007 2,675,441 0.98 548,243 719,300 2,953,791 1.03 550,782 742,704 3,149,502 1.06 554,000 787,034 2,988,671 0.952 406,062 452,195 2,192,640 1.21 450,448 474,969 2,163,142 1.14 463,094 544,333 2,227,674 1.02 470,000 595,921 2,270,265 0.953 357,085 349,655 1,370,000 0.98 344,069 358,374 1,648,200 1.15 397,873 405,300 1,807,812 1.12 419,000 476,954 1,913,156 1.004 308,647 263,505 292,306 312,983 280,499 1,179,000 1.05 315,169 298,330 1,378,140 1.15 320,000 361,920 1,429,572 0.995 346,524 200,779 379,328 362,389 212,791 250,357 285,271 237,454 1,140,000 1.20 290,000 258,172 1,312,400 1.276 215,390 146,859 174,240 251,181 165,805 786,998 353,127 179,988 519,419 280,000 209,480 850,000 1.017 103,248 88,174 518,993 0.98 157,534 116,591 666,535 0.95 185,703 131,385 849,913 1.08 244,000 153,582 980,943 1.068 72,393 44,888 488,120 1.81 96,268 69,573 322,159 0.77 146,174 92,095 748,625 1.35 170,000 111,411 854,093 1.289 102,018 92,995 440,000 0.79 82,854 47,114 434,400 1.54 100,724 60,098 566,704 1.57 110,000 85,638 614,025 1.2010 31,282 54,080 69,472 0.16 27,709 142,642 0.64 40,657 238,218 0.7311 25,117 28,584 0.00 47,417 186,089 0.49 24,263 203,995 1.0512 25,711 25,549 0.00 29,960 0.00 47,655 351,700 0.92

Total 2,454,575 2,320,057 8,531,068 2,605,969 2,445,016 10,404,583 2,797,917 2,691,687 12,387,789 2,857,000 3,040,112 13,213,125

Notes: Book:pupil (B:P) ratios indicated only for new titles under new curriculum. Grade10:12 ratios include free copies and copies sold to pupils. Ratios do not include books that may have been sold to lower grade studentsby upper grade students on promotion to next grade.

SY1995

SY1999 SY2000

Appendix 5 31

Grade

ACCESS TO TEXTBOOKS IN PRIMARY AND SECONDARY SCHOOLS, 1994-2002

GradeSY1998SY1997

SY2001 SY2002

SY1996

Appendix 6 32

COST-SHARING SCHEME

Grade Textbook Supplementary Books Teacher Guides

1- 9 100 % free distribution For sale Free distribution 10- 12 Free distribution for students in

five remote provinces. For other provinces, free distribution for 50% of total students in school, the rest for sale. Under these arrangements, the Government/student cost-sharing ratio is 1:1 (since 2001).

For sale Free distribution

Appendix 7 33

TEXTBOOK PRICES FOR GRADES 1 TO 12, SY2000-2001

(in KR)

Grade Title of Textbooks Retail Price Wholesale Price Wholesale Price (for general customers) (for provincial agents)

Khmer 3,000 2,750

2,600 1 Maths 1,700 1,450 1,300

Social Study 1,700 1,450 1,300 Science Applications 1,700 1,450 1,300 Khmer 3,000 2,750 2,600

2 Maths 1,700 1,450 1,300 Social Study 1,700 1,450 1,300 Science Applications 1,700 1,450 1,300 Khmer 2,900 2,650 2,500

3 Maths 1,700 1,450 1,300 Social Study 1,800 1,550 1,400 Science Applications 1,600 1,350 1,200 Khmer 3,200 2,950 2,800

4 Maths 1,700 1,450 1,300 Social Study 1,500 1,250 1,100 Science Applications 1,500 1,250 1,100 Khmer 3,200 2,950 2,800

5 Maths 2,700 2,450 2,300 Social Study 1,600 1,350 1,200 Science Applications 2,200 1,950 1,800 Khmer 3,200 2,950 2,800

6 Maths 2,600 2,350 2,200 Social Study 2,600 2,350 2,200 Science Applications 2,500 2,250 2,100 Khmer 4,100 3,850 3,700 Maths 3,600 3,350 3,200

7 Science - Part I 2,800 2,550 2,400 Science - Part II 2,600 2,350 2,200 Social Study - Part I 3,000 2,750 2,600 Social Study - Part II 3,000 2,750 2,600 Khmer 3,500 3,250 3,100 Maths 3,000 2,750 2,600

8 Science - Part I 2,300 2,050 1,900 Science - Part II 2,600 2,350 2,200 Social Study - Part I 3,000 2,750 2,600 Social Study - Part II 2,400 2,150 2,000 Khmer 3,500 3,250 3,100 Maths 2,900 2,650 2,500

9 Science - Part I 2,500 2,250 2,100 Science - Part II 2,800 2,550 2,400 Social Study - Part I 3,200 2,950 2,800 Social Study - Part II 2,500 2,250 2,100 Khmer 3,800 3,500 3,300 Maths 3,100 2,800 2,600 Physics 2,300 2,000 1,800

Appendix 7 34

Grade Title of Textbooks Retail Price Wholesale Price Wholesale Price (for general customers) (for provincial agents)

10 Chemistry 2,300 2,000 1,800 Biology 2,700 2,400 2,200 Earth 1,600 1,300 1,100 Social Study - Part I 3,600 3,300 3,100 Social Study - Part II 3,800 3,500 3,300 Khmer 4,200 3,900 3,700 Maths 4,500 4,200 4,000 Physics 3,200 2,900 2,700

11 Chemistry 2,700 2,400 2,200 Biology 2,700 2,400 2,200 Earth 2,000 1,700 1,500 Social Study - Part I 4,000 3,700 3,500 Social Study - Part II 4,000 3,700 3,500 Khmer 4,200 3,900 3,700 Maths 4,600 4,300 4,100 Physics 3,400 3,100 2,900

12 Chemistry 3,000 2,700 2,500 Biology 3,000 2,700 2,500

Earth 2,400 2,100 1,900 Social Study - Part I 3,800 3,500 3,300 Social Study - Part II 4,000 3,700 3,500

Grade Estimated Actual Planned Actual Free Sales Total Production Distribution Total Sales Gov't Budget Total

1 552,508 678,863 1,280,000 1,198,900 868,800 868,800 312,168 65,160 377,328 0 377,328 377,3282 428,086 453,136 0 0 1,314,000 1,314,000 98,550 98,550 0 98,550 98,5503 352,449 331,109 0 0 0 0 0 0 0 04 275,968 240,121 300,000 199,750 0 0 75,180 0 75,180 75,180 75,1805 212,143 150,019 150,000 149,739 0 0 40,106 0 40,106 40,106 40,1066 98,588 65,737 410,000 400,000 400,000 400,000 144,336 30,000 174,336 174,336 174,3367 96,391 115,934 210,000 194,750 195,000 195,000 48,182 14,625 62,807 62,807 62,8078 106,447 77,485 0 0 0 0 0 0 09 90,518 72,476 0 0 0 0 0 0 0

Total 2,213,098 2,184,880 2,350,000 2,143,139 2,777,800 2,777,800 619,972 208,335 828,307 0 828,307 828,307

Estimated Actual Planned Actual Free Sales Total Production Distribution Total Sales Gov't Budget Total

1 528,826 666,737 1,440,000 1,020,000 1,340,000 1,340,000 250,575 100,500 351,075 0 351,075 351,0752 417,827 458,930 1,752,000 1,504,000 1,200,000 1,200,000 372,176 90,000 462,176 0 462,176 462,1763 359,299 335,330 0 1,370,000 1,370,000 102,750 102,750 0 102,750 102,7504 296,890 253,833 0 100,000 100,000 7,500 7,500 0 7,500 7,5005 313,444 183,212 0 100,000 100,000 7,500 7,500 0 7,500 7,5006 141,212 113,730 0 0 0 0 0 07 75,184 55,675 476,000 476,000 120,000 120,000 119,865 9,000 128,865 0 128,865 128,8658 92,129 95,950 582,000 582,000 160,000 160,000 118,262 12,000 130,262 0 130,262 130,2629 111,124 77,477 440,000 440,000 0 0 0 010 29,30011 26,17612 18,373

Total 2,335,935 2,240,874 4,250,000 3,582,000 4,830,000 4,830,000 860,878 329,250 1,190,128 0 1,190,128 1,190,128

Appendix 8 35

Grade

Enrollment Printing

Enrollment Printing DistributionSY1997

SY1998

TEXTBOOK PRINTING AND DISTRIBUTION OPERATIONS 1996-2002

Distribution Cost (Cash Base, $) Revenue (Cash Base, $)

Cost (Cash Base, $) Revenue (Cash Base, $)

Appendix 8 36

Grade Estimated Actual Planned Actual Free Sales Total Production Distribution Total Sales Gov't Budget Total

1 543,208 681,007 1,480,000 1,480,000 1,188,000 1,188,000 374,462 89,100 463,562 0 463,562 463,5622 406,062 452,195 1,200,000 1,200,000 716,000 716,000 294,606 53,700 348,306 0 348,306 348,3063 357,085 349,655 1,640,000 1,370,000 744,000 744,000 414,961 55,800 470,761 0 470,761 470,7614 308,647 263,505 0 1,179,000 1,179,000 88,425 88,425 0 88,425 88,4255 346,524 200,779 0 0 0 0 0 0 06 215,390 146,859 0 672,000 672,000 50,400 50,400 0 50,400 50,4007 103,248 88,174 120,000 120,000 324,000 324,000 50,327 24,300 74,627 0 74,627 74,6278 72,393 44,888 104,000 160,000 0 38,786 0 38,786 0 38,786 38,7869 102,018 92,995 660,000 440,000 144,000 144,000 137,280 10,800 148,080 0 148,080 148,08010 31,28211 25,11712 25,711

Total 2,454,575 2,402,167 5,204,000 4,770,000 4,967,000 4,967,000 1,310,422 372,525 1,682,947 0 1,682,947 1,682,947

Grade Estimated Actual Planned Actual Free Sales Total Production Distribution Total Sales Gov't Budget Total

1 548,243 719,300 1,188,000 1,188,000 1,200,000 1,200,000 476,072 90,000 566,072 0 566,072 566,0722 450,448 474,969 716,000 716,000 800,000 800,000 269,618 60,000 329,618 0 329,618 329,6183 344,069 358,374 744,000 744,000 720,000 720,000 265,746 54,000 319,746 0 319,746 319,7464 312,983 280,499 1,179,000 1,179,000 600,000 600,000 446,664 45,000 491,664 0 491,664 491,6645 362,389 212,791 1,140,000 1,140,000 85,500 85,500 0 85,500 85,5006 251,181 165,805 672,000 672,000 0 414,424 0 414,424 0 414,424 414,4247 157,534 116,591 324,000 324,000 410,000 410,000 180,169 30,750 210,919 0 210,919 210,9198 96,268 69,573 0 536,000 536,000 40,200 40,200 0 40,200 40,2009 82,854 47,114 144,000 144,000 280,000 280,000 87,493 21,000 108,493 0 108,493 108,49310 54080 336,000 305,001 12000 57,472 69,472 194,235 900 195,135 40,230 154,905 195,13511 2858412 25549

Total 2,605,969 2,553,229 5,303,000 5,272,001 5,698,000 57,472 5,755,472 2,334,421 427,350 2,761,771 40,230 2,721,541 2,761,771

SY1999Enrollment Printing Distribution Recurrent Cost (Cash Base, $) Revenue (Cash Base, $)

SY2000Enrollment Printing Distribution Cost (Cash Base, $) Revenue (Cash Base, $)

Grade Estimated Actual Planned Actual Free Sales Total Production Distribution Total Sales Gov't Budget Total

1 550,782 742,704 1,200,000 1,200,000 910,000 910,000 455,810 68,250 524,060 0 524,060 524,0602 463,094 544,333 800,000 800,000 800,000 800,000 301,534 60,000 361,534 0 361,534 361,5343 397,873 405,300 720,000 720,000 720,000 720,000 264,632 54,000 318,632 0 318,632 318,6324 315,169 298,330 600,000 600,000 520,000 520,000 219,584 39,000 258,584 0 258,584 258,5845 285,271 237,454 1,140,000 1,140,000 560,000 560,000 510,812 42,000 552,812 0 552,812 552,8126 353,127 179,988 0 850,000 850,000 63,750 63,750 0 63,750 63,7507 185,703 131,385 410,000 410,000 420,000 420,000 227,941 31,500 259,441 0 259,441 259,4418 146,174 92,095 536,000 536,000 360,000 360,000 262,538 27,000 289,538 0 289,538 289,5389 100,724 60,098 280,000 280,000 240,000 240,000 142,291 18,000 160,291 0 160,291 160,29110 27709 44,800 51990 96,790 3,360 3,360 36,393 3,360 39,75311 47417 320,000 320,000 56,000 130089 186,089 239,060 4,200 243,260 91,062 42,571 133,63312 29960

Total 2,797,917 2,796,773 6,006,000 6,006,000 5,480,800 182,079 5,662,879 2,624,202 411,060 3,035,262 127,455 2,834,573 2,962,028

Grade Estimated Actual Planned Actual Free Sales Total Production Distribution Total Sales Gov't Budget Total

1 554,000 787,034 910,000 1,000,000 910,000 2626 912,626 373,475 68,250 441,725 1,733 441,725 443,4582 470,000 595,921 800,000 880,000 800,000 1850 801,850 333,915 60,000 393,915 1,221 393,915 395,1363 419,000 476,954 720,000 790,000 720,000 1934 721,934 284,016 54,000 338,016 1,276 338,016 339,2924 320,000 361,920 520,000 580,000 520,000 2371 522,371 203,529 39,000 242,529 1,565 242,529 244,0945 290,000 258,172 560,000 630,000 560,000 2328 562,328 273,103 42,000 315,103 1,536 315,103 316,6396 280,000 209,460 850,000 920,000 850,000 13266 863,266 462,446 63,750 526,196 8,756 526,196 534,9527 244,000 153,582 420,000 460,000 420,000 3671 423,671 271,749 31,500 303,249 2,423 303,249 305,6728 170,000 111,411 360,000 400,000 360,000 4686 364,686 198,885 27,000 225,885 3,081 225,885 228,9669 110,000 85,638 240,000 280,000 240,000 4759 244,759 140,354 18,000 158,354 3,141 158,354 161,49510 40,657 250,000 250,000 90,000 54075 144,075 152,082 6,750 158,832 35,690 57,180 92,86911 24,263 35,000 35,000 35,000 46176 81,176 28,662 2,625 31,287 30,476 31,287 61,76312 47,655 400,000 400,000 200,000 151700 351,700 295,410 15,000 310,410 100,122 155,205 255,327

Total 2,857,000 3,152,667 6,065,000 6,625,000 5,705,000 289,442 5,994,442 3,017,626 427,875 3,445,501 191,020 3,188,644 3,379,663Staff estimates.Shipments means number of textbooks actually shipped from the central distribution house. Figures for 2001/02 are not yet finalized.Total books in school equals the number of books in re-use plus the number of new copies delivered.Cost recovery data based is based on average prices: $0.66 per copy for Gr. 1-9 and $0.70 for Gr. 10-12 Appendix 8 37

SY2002Enrollment Printing Distribution Cost (Cash Base, $) Revenue (Cash Base, $)

Revenue (Cash Base, $)SY2001

Distribution Cost (Cash Base, $)Enrollment Printing

Appendix 9 38

PROJECT COST AND FINANCING ARRANGEMENTS ($’000)

Component Appraisal Estimate Actual

Foreign Local Total Foreign Local Total A. Facilities and Equipment Civil Works 240 160 400 203 136 339 Equipment 901 201 1,102 1,637 9 1,646 Service Vehicles 80 0 80 280 0 280 Subtotal 1,221 361 1,582 2,120 145 2,265B. Training Local Training 450 118 568 346 86 432 Study Visits 101 27 128 35 12 47 Teacher Orientation 0 0 0 0 1,650 1,650 Subtotal 551 145 696 381 1,748 2,129C. Consulting Services International Consultants 4,587 400 4,987 3,723 9 3,732 Domestic Consultants 0 102 102 0 0 0 Research Contracts 105 95 200 217 5 222 Subtotal 4,692 597 5,289 3,940 14 3,954D. Textbook Provisions Curriculum/Manuscripts 622 289 911 1,358 80 1,438 Textbooksa 12,532 3,713 16,245 12,731 4,046 16,777 Teacher Guides 346 38 384 308 28 336 Subtotal 13,500 4,040 17,540 14,397 4,154 18,551E. Implementation Costs Office Equipment 200 0 200 107 0 107 Administrative Support 180 0 180 261 9 270 Materials and Office Supplies 0 50 50 122 23 145 Rental Accommodation Expenses 0 60 60 0 62 62 Subtotal 110 490 490 94 584 Project Base Cost 20,344 5,253 25,597 21,328 6,155 27,483 (including taxes and duties) F. Contingencies Physical 1,300 300 1600 0 0 0 Price 1,000 500 1500 0 0 0G. Service Charge 600 0 600 424 0 424

Total Project Cost 23,244 6,053 29,297 21,752 6,155 27,907 Percentage 79% 21% 100% 78% 22% 100%

Note: Exchange rate for each fiscal year: 1997 - $1=KR2,900; 1998 - $1=KR3,770; 1999 - $1=KR3,810; 2000 - $1=KR3,880; 2001 -$1=KR3,915; 2002 -$1=KR3,895. a Local costs for textbooks includes $1 million for purchase of paper in 1996, for use in the first year of project.

Appendix 9 39

PROJECT COST AND FINANCING ARRANGEMENTS BY SOURCE ($’000)

Financing Source Total Project Component ADB UNICEF Government Cost RRP Actual RRP Actual RRP Actual RRP Actual A. Facilities and Equipment Civil Works 240 203 0 160 136 400 339 Equipment 901 855 0 782 201 9 1,102 1,646 Service Vehicles 80 280 0 0 0 80 280 Subtotal 1,221 1,338 782 361 145 1,582 2,265 B. Training Local Training 405 280 45 65 118 86 568 431 Study Visits 21 14 80 21 27 12 128 47 Teacher Orientation 0 0 0 1,650 0 0 0 1,650 Subtotal 426 294 125 1,736 145 98 696 2,128 C. Consulting Services International Consultants 3,650 3,108 937 615 400 9 4,987 3,732 Domestic Consultants 0 0 0 0 102 0 102 0 Research Contracts 105 5 0 212 95 5 200 222 Subtotal 3,755 3,113 937 827 597 14 5,289 3,954 D. Textbook Provisions Curriculum/Manuscripts 0 236 622 1,122 289 80 911 1,438 Textbooksa 11,007 12,129 1,525 602 3,713 4,046 16,245 16,777 Teacher Guides 311 308 35 0 38 28 384 336 Subtotal 11,318 12,673 2,182 1,724 4,040 4,154 17,540 18,551 E. Implementation Costs Office Equipment 200 107 0 0 0 0 200 107 Administrative Support 180 261 0 0 0 9 180 270 Materials and Office Supplies 0 0 0 122 50 23 50 145

Rental Accommodation Expenses

0

0

0 0 60 62 60 62

Subtotal 380 368 0 122 110 94 490 584

Project Base Cost 17,100 17,786 3,244 5,191 5,253 4,505 25,597 27,482 (including taxes and duties) F. Contingencies Physical 1,300 0 300 1,600 0 Price 1,000 0 500 1,500 0 G. Service Charge 600 424 0 0 600 424

Total Project Cost 20,000 18,210 3,244 5,191 6,053 4,505 29,297 27,906

Percentage 68% 65% 11% 19% 21% 16% 100% 100% ADB = Asian Development Bank; RRP = Report and Recommendation of the President; UNICEF = United Nations Children’s Fund. Note: Exchange rate for each fiscal year: 1997 - $1=KR2,900; 1998 - $1=KR3,770; 1999 - $1=KR3,810; 2000 - 1=KR3,880; 2001 -$1=KR3,915; 2002 -$1=KR3,895. a Local costs for textbooks includes $1 million for purchase of paper in 1996, for use in the first year of project.

Appendix 10 40

DISBURSEMENT SUMMARY ($’000)

Year Quarter Amount Cumulative

1997 I 500 500

II 0 500 III 609 1,109 IV 924 2,033

1998 I 420 2,453 II 692 3,145 III 1,283 4,428 IV 1,058 5,486

1999 I 1,017 6,503 II 982 7,485 III 990 8,475 IV 958 9,433

2000 I 412 9,845 II 1,375 11,220 III 1,483 12,703 IV 1,034 13,737

2001 I 869 14,606 II 371 14,977 III 1,426 16,403 IV 1,338 17,741

2002 I 315 18,056 II 241 18,297 III (89) 18,208

Total 18,208

41 Appendix 11

IMPLEMENTATION SCHEDULE

Activities 1996 1997 1998 1999 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

A. Establishment of the Publishing House as a Autonomous Organization1. Scheduling of autonomy process a. Define process schedule

b. Set the final deadlines (after MTR

c. Monitor process schedule

2. Internal restructuring of current institution a. Define mission statement and objectives

b. Define organizational framewor

c. Rewrite staff terms of references

d. Staff relocation(editorial and writing

e. Establish and test new internal routines fo management and accounting3. External restructuring of institutional links a. Define institutional relationships (MOEYS/MOEF/RI/etc. & PH) b. Establish and test new external routines

B. Physical Infrastructure1. Civil works (hard stand, refurbishment, darkroom

2. Equipping PH a. Equipment procurement

b. Installation and training

C. Consulting Services1. Consultants and contract staff

2. Research activities a. Policy studies

b. Textbook impact study

c. Distribution mechanisms

d. Pre-MTR study

e. Textbook financing study, phase

f. Pilot financing options considered

g. Textbook f inancing study, phase I

h. Textbook utilization study

i. Piloting of cost-sharing mechanisms

D. Staff Development1. Local training a. Management training

b. Administration and accounting staff

c. Editorial Unit staff

d. Printing Unit staff

e. Distribution Unit staff

Year and Quarter2000 2001 2002

42 Appendix 11

Activities 1996 1997 1998 1999 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2

2. Regional study tours a. Planning

b. Preparation of participants

c. Study tours

d. Review and application of observation

E. Manuscript Generation and Developmen1. Planning and writing

2. Design and layout

3. Trial and revision

4. Approval

5. Collation and analysis of user feedbac

6. Revision for second editions

F. Raw Material Procurement

G. Printing and Manufacture1. Prepress

2. Printing

3. Print finishing

4. Warehousing

H. Distribution1. Information systems and application

2. Distribution to PEOs

3. Distribution from PEOs to schools

I. PMMU1. PAMO development

2. Aid MIS

3. Aid management consolidation

4. Aid BME

Monitoring and Evaluation

BME - Benefit Monitoring and Evaluation; MIS - Management Information System; MOEF - Ministry of Economy and FinancMOEYS - Ministry of Education, Youth, and Sport; MTR - Midterm Review; PAMO - Provincial Aid Management Office; PEOsProvincial Education Offices; PH - Publishing House; PMMU - Program Management and Monitoring Unit; RI - Research Institu

Legend: Planned Actual

Year and Quarter2000 2001 2002

Appendix 12 43

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Covenants Reference Status of Compliance 1.

The Borrower shall cause the Project to be carried out with due diligence and efficiency and in conformity with sound administrative, financial, engineering, and environmental and educational practices.

Loan Agreement, Article IV, Section 4.01(a)

Complied with.

2. The Borrower shall make available promptly as needed, the funds, facilities, services, and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of the project facilities.

Article IV Section 4.02

Complied with.

3. In carrying out the Project, the Borrower shall cause competent and qualified consultants and contractors, acceptable to the Borrower and the Asian Development Bank (ADB), to be employed to an extent and upon terms and conditions satisfactory to the Borrower and ADB.

Article IV Section 4.03(a)

Complied with.

4. The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules, and construction methods acceptable to the Borrower and ADB. The Borrower shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications, and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

Article IV Section 4.03(b)

Complied with.

5. The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.

Article IV Section 4.04

Complied with.

6. The Borrower shall make arrangements satisfactory to ADB for insurance of the equipment and service vehicles financed out of the proceeds of the Loan to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Article IV Section 4.05(a)

Complied with.

7. Without limiting the generality of the foregoing, the Borrower undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance ay indemnity shall be payable in a currency freely usable to replace or repair such goods.

Article IV Section 4.05(b)

Complied with.

8. Article IV, Section 4.06(a)

Complied with.

The Borrower shall maintain or cause to be maintained, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, the operations and financial condition of the agencies of the Borrower responsible for the carrying of the Project and operation of the project facilities, or any part thereof.

Appendix 12 44

Covenants Reference Status of Compliance 9. The Borrower shall (i) maintain, or cause to be maintained,

separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors; (iii) furnish to ADB, as soon as available but in any event not later than twelve (12) months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto, all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Article IV, Section 4.06(b)

Being complied with.

10. The Borrower shall ensure ADB, upon ADB’s request, to discuss the Borrower’s financial statements for the Project and financial affairs related to the Project from time to time with the Borrower’s auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower shall otherwise agree.

Article IV, Section 4.06(c)

Being complied with.

11. The Borrower shall furnish, or cause to be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan, and the expenditure of the proceeds and maintenance of the service thereof; (ii) the goods and services and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) the administration, operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the project facilities, or any part thereof; (v) financial and economic conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vi) any other matters relating to the purposes of the Loan.

Article IV, Section 4.07(a)

Complied with.

12. Without limiting the generality of the foregoing, the Borrower

shall furnish or cause to be furnished, to ADB quarterly reports on the carrying out of the Project and on the operation and management of the project facilities. Such reports shall be submitted in such form and in such detail and within such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, compliance with loan covenants and proposed program of activities and expected progress during the following quarter.

Article IV, Section 4.07(b)

Complied with.

13. Promptly after physical completion of the Project, but in any

event not later than three (3) months thereafter or such later date as may be agreed for this purpose between the Borrower and ADB, the Borrower shall prepare and furnish ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligations under the Loan Agreement and the accomplishment of the purposes of the Loan.

Article IV, Section 4.07(c)

Complied with.

Appendix 12 45

Covenants Reference Status of Compliance 14. The Borrower shall enable ADB’s representatives to inspect the

Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents.

Article IV, Section 4.08

Complied with.

15, The Borrower shall ensure that the project facilities are operated, maintained and repaired in accordance with sound administrative, financial, engineering, environmental, and maintenance and operational practices.

Article IV, Section 4.09

Complied with.

16.

It is the mutual intention of the Borrower and ADB that no other external debt owed a creditor other than ADB shall have any priority over the Loan by way of a lien on the assets of the Borrower. To that end, the Borrower undertakes (i) that, except as ADB may otherwise agreed, if any lien shall be created on any assets of the Borrower as security for any external debt, such lien with ipso facto equally and ratably secure the payment of the principal of, and service charge and any other charge on, the Loan; and (iii) that the Borrower, in creating or permitting the creation of any such line, will make express provision to that effect.

Article IV, Section 4.10(a)

Complied with.

17.

The provision of paragraph (a) of this Section shall not apply to (i) any lien created on property, at the time of purchase therefore, solely as security for payment of the purchase price of such property; or (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date.

Article IV, Section 4.10(b)

Complied with.

18.

The term “assets of the Borrower” as used in paragraph (a) of this Section includes assets of any political subdivision or any agency of the Borrower and assets of any agency such of any such political unit and subdivision, including the National Bank of Cambodia and any other institution performing the functions of a central bank for the Borrower.

Article IV, Section 4.10(c)

Complied with.

19.

Except as ADB may otherwise agree, the Borrower shall establish immediately after the Effective Date, an imprest account at the National Bank of Cambodia. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB’s “Guidelines on Imprest Fund and Statement of Expenditures Procedures” dated November 1986, as amended from time to time, and detailed arrangements agreed upon between the Borrower and ADB.

Schedule 3, para. 8(a)

Complied with.

20. Project Executing Agency. The Ministry of Education, Youth, and Sports (MOEYS) shall be responsible for planning, organization, and coordination of the Project as well as monitoring the project activities.

Schedule 6, para. 1

Complied with.

21. Project Coordination Committee (PCC). Within three months of the Effective Date, the Borrower shall establish the PCC, which shall have the overriding objective to provide overall policy guidance, including the following: (i) ensure consistency between the Project and the Borrower’s educational policies and plans, in particular, the Textbook Master Plan for 1996-2001 dated March 1996; (ii) assist in the early identification and solution of operation policy issues; (iii) oversee management of the policy studies; (iv) participate in progress and impact monitoring benefit monitoring and evaluation; (v) endorse annual work programs and plans; (vi) oversee Project reporting

Schedule 6, para. 2

Complied with.

Appendix 12 46

Covenants Reference Status of Compliance systems.

22. The PCC shall be chaired by the Minister of MOEYS, and consist of the following additional members: senior-level representatives from the Council for the Development of Cambodia, MOEYS, the Ministry of Economy and Finance, and the Ministry of Planning. It shall meet at least once every three (3) months.

Schedule 6, para. 3

Complied with.

23.

Textbook Board. As a condition for loan effectiveness, the Borrower shall have formed the Textbook Board, an interdepartmental steering committee, which shall formulate strategic plans based on textbook policies and support the operational, technical and administrative aspects of textbooks publishing. The Textbook Board shall be comprised of the following Government officials: The Secretary of State of MOEYS who shall serve as the Chairperson; and the Directors of the Research Institute, Publishing House, Distribution Center, General Education Department, Teacher Training Department and Planning Department.

Schedule 6, para. 4

Complied with.

24.

Increase in Primary and Lower Secondary School Hours. Within 24 months of the Effective Date, the Borrower shall have introduced longer school hours for primary and lower secondary schools as follows: (i) 38 weeks, 5 days a week, 18.85 hours per week for primary schools; and (ii) 38 weeks, 6 days a week, 25 hours per week for lower secondary schools.

Schedule 6, para. 5

Partly complied with. (It has been implemented successfully in the urban areas.)

25. Textbook Publication. The Borrower shall ensure that MOEYS adheres to the textbook provision recommendations in the Textbook Master Plan and the technical specifications (i.e., four subjects, 3-year lifespan of textbooks, page ceilings of 448 pages for grades 1-4, 640 pages for grades 5-6, and 1,400 pages for grades 7-9) agreed to between MOEYS and ADB for the textbooks to be produced under the Project, unless otherwise agreed by ADB.

Schedule 6, para. 6

Complied with.

26.

Publishing House. By the first anniversary of the Effective Date, the technical functions (i.e., editorial, design, and typesetting) shall be transferred from the Research Institute under the management of the Publishing House.

Schedule 6, para. 7(a)

Complied with.

27. By the third anniversary of the Effective Date, the Publishing House shall have established corporate management systems, including reporting, auditing, and administrative procedures as well as norms to monitor and control financial and material resources utilization.

Schedule 6, para. 7(b)

Complied with.

28. By the fourth anniversary of the Effective Date, the publishing functions shall be reorganized under the Publishing House, including the relocation of the textbook writing functions from the Research Institute to the Publishing House.

Schedule 6, para. 7(c)

Complied with.

29. Midterm Review. During the third year of the Project, the Borrower, ADB, United Nation’s Children Fund (UNICEF) and any other co-financiers of the Project shall conduct the Midterm Review of all aspects of the Project. The Midterm Review shall (i) review the scope, design, implementation arrangements, institutional processes, and other relevant issues in light of the

Schedule 6, para. 8

Complied with.

Appendix 12 47

Covenants Reference Status of Compliance Borrower and MOEYS’ development strategies and the policy

framework and strategic concerns of ADB; (ii) identify changes needed since the commencement of the Project; (iii) reassess the Project’s impacts with regard future project implementation and sustainability; (iv) assess implementation performance against project performance indicators and milestones; (v) review and establish compliance with loan covenants; (vi) identify problems and constraints; and (vii) if necessary, recommend changes in the design or implementation of the Project.

30. Policy Studies. By the fourth anniversary of the Effective Date, the Borrower shall formulate and commence implementation of any policy decisions on copyright, publishing rights, contractual legislation, procedures for the transformation of the Publishing House into an autonomous legal entity, public-private sector partnerships and cost-sharing measures based on the results of the policy studies under the Project. Recognizing the critical importance of cost-sharing measures to ensure the sustainability of textbook production, the Borrower shall implement the recommendations of the textbook financing studies through pilot schemes.

Schedule 6, para. 9

Complied with.

31. Neutrality in Gender and Ethnicity/Equalization of Educational Standards. By the first anniversary of the Effective Date, the Borrower shall have established a committee acceptable to ADB to review textbooks to ensure gender neutrality and ethnic tolerance. Such review shall be based on the gender neutrality and ethnic tolerance criteria developed under ADB’s advisory technical assistance (TA 2555-CAM). In addition, the Borrower shall implement the national policy of textbooks for all primary and lower secondary students with the objective of equalizing educational standards between urban and rural areas and between poor and minority students and those more fortunate.

Loan Agreement Schedule 6, para. 10

Complied with.

32. Benefit Monitoring & Evaluation (BME). BME activities shall be carried out by MOEYS in the following stages: (i) First stage: Prior to the Project, a baseline study have been conducted to determine realistic and measurable targets that reflect the anticipated Project benefits; (ii) Second stage: Prior to Midterm Review, BME shall be conducted against identified Project performance indicators and milestones acceptable to ADB; and (iii) Final stage: The BME shall assess the success of the Project in achieving its started objectives and benefits in accordance with the schedule and terms of reference acceptable to ADB.

Schedule 6, para. 11

Complied with.

33. MOEYS shall ensure that the Publishing House shall carry out the BME studies in collaboration with the Research Institute. Particular emphasis in the BME shall be placed on the overall impact of improved textbook availability and the use of textbooks on student performance; this impact assessment shall include monitoring of the effectiveness of the textbook distribution system, book design and teacher orientation programs. BME information shall be linked with the education management information system to be established with the assistance of UNICEF.

Loan Agreement Schedule 6, para. 12

Complied with.

Target Actual Target Actual Target Actual Target Actual Target Actual Target Actual Target ActualA. International Consultants

Publishing HouseTextbook Publishing Management Adviser/ 12 2 12 2 12 3 6 3 6 4 48 13 Co-Team LeaderTextbook Printing Management Adviser 12 4 12 11 3 1 24 19Distribution Logistics Management Adviser 12 4 12 10 9 4 24 27Distribution and Business Management / 5.5 7.5 13 Co-Team LeaderEditorial Management Adviser/Co-Team Leader 12 5 12 11 2 11 2 4 2 2 30 33Design and Layout Specialist 8 0 3 4 3 4 2 2 2 16 12Textbook Illustration Specialist 6 0 3 4 3 5 2 12 11

Textbook Development Specialista 36 36 18 18 54 54 (Khmer, Mathematics, Science)

Textbook Development Specialist (Social Studies)a 6 6 3 3 3 3 12 12Procurement Specialist 6 4 3 8 3 3 3 1 15 16

0Program Management and Monitoring 0Aid Management Development Adviser 12 0 12 12 24 12Aid MIS Data Base Specialist 3 3 3 3 6 6Provincial Aid Management Development Adviser 12 4 6 9 8 18 21(additional services, if any)Procurement Adviser 2.5 0 2.5Publishing Adviser 0 1 1.5 0 1.5Policy Studies (3 international) 4 1 3 1 0 9Utilization and Impact Studies (4 international) 8 12 7 0 27

Total (A) 134 65 99 95 29 64 13 35 8 27 0 5 283 289

B. Domestic ConsultantsProgram Management and Monitoring Aid Management Development Trainer 12 12 0Aid MIS Data Base Trainer 6 6 0

Distribution Office Database Specialist 3.5 2 4Editorial Assistant 12 10 22Assistant to Procurement and Publishing Advisers 2 3 2

Policy Studies Legal Consultant 3 3Policy Studies Research Assistants (6 staff)b 15 3 3 21

22 95 218 335

Total (B) 18 0 0 0 0 44 2 110 0 233 0 3 18 387 a Actual person-months unclear; TA from UNICEF, UNESCO, UNFPA and PASECb All domestic researchers seconded to research teams from MOEYS departments (PRD, PDH, Planning etc.) on part-time basis.

Utilization and Impact Studies Researchers (31 staff)b

Appendix 13 48

CONSULTING SERVICES

Type of Service 1997 1998Person-months, by Year

1999 2000 2001 Total2002

Appendix 14 49

PROCUREMENT PACKAGES

Item Amount ($ million) Procurement Mode

Target Actual Target Actual A. Civil Works

1. Construction of Hardstanding (Publishing House, 1,000 m2)

0.15 0.01 LCB LCB

2. Renovation/Extension of Office (Publishing House, 676 m2)

0.23 0.19 LCB LCB

B. Vehicles 1. Service Vehicle (2 Toyota Hi-Lux, 2

Land Rover) 0.08 0.08 LCB IS

C. Equipment 1. PIU Office Equipment 0.20 0.08 IS/DP IS 2. PMMU Office Equipment 0.15 0.02 IS/DP DP 3. Desktop/Typesetting Equipment 0.04 0.05 IS/DP IS 4. Typesetting Consumable 0.02 IS/DP DPa 5. Pre-press Equipment 0.11 0.09 IS IS 6. Printing Consumable 0.01 DP DPa 7. Binding Equipment 0.85 0.36 ICB/IS IS 8. Press Equipment 0.00 0.41 ICB/IS IS D. Textbooks 1. Paper 7.08 5.74 ICB ICB E. Furniture 1. Furniture for Rehabilitated Office 0.02 0.06 DP LCB

DP = direct purchase; ICB = international competitive bidding; IS = international shopping; LCB = local competitive bidding; PIU = project implementation unit; PMMU = project management and monitoring unit Note: 10-ton Isuzu truck of UNICEF is not included in this table. a Funded by UNICEF.

POST-PROJECT FINANCING ARRANGEMENT

SY2002 SY2003 SY2004 SY2005 Enrollment Grades 1-6

2,385,702 2,443,292 2,452,529 2,388,553 Grades 7-9 468,836 570,810 570,810 689,355

Grades 10-12 160,463 217,769 217,769 288,894 Total 3,015,001 3,231,871 3,241,108 3,366,802

Publishing Plan Volume Cost ($) Volume Cost ($) Volume Cost ($) Volume Cost ($) Total Volume Total Cost ($) Grades 1-6

TX reprints 3,986,000 2,075,000 4,345,000 2,308,000 4,295,000 2,397,000 4,355,000

2,553,000 16,981,000 9,333,000

TX new content 816,000 455,000 747,000 438,000 1,563,000 893,000 TM new titles

2,000,000

1,496,000

2,775,000

2,179,000

4,775,000

3,675,000

Grades 7-9 TX reprints 1,640,000 1,155,000 1,696,000 1,208,000 278,000 208,000 261,000 205,000 3,875,000 2,776,000 TX new content 1,355,000 1,255,000 1,550,000

1,507,000 2,905,000 2,762,000

TM new titles 124,000 115,000 117,000 113,000 241,000 228,000 Grades 10-12 TX reprints 340,000 295,000 950,000

835,000

25,000 23,000 18,000 17,000 1,333,000 1,170,000

TX new content 9,000 8,000 7,000 7,000 16,000 15,000 TM new titles

4,000 4,000 4,000 4,000 8,000

Total 5,966,000 3,525,000 6,991,000 4,351,000 8,906,000 5,961,000 9,830,000 7,023,000 31,693,000 20,860,000

Budget Allocation

FY2002 FY2003 FY2004 FY2005

Instructional Materials 3,500,000 3,750,000 4,725,000 5,375,000 17,350,000 Discretionary grants to schools 7,313,750 11,000,000 12,500,000 14,500,000 45,313,750 Other recurrent items 62,186,250 70,193,000 98,522,500 112,983,000 343,884,750 Total Budget 73,000,000 84,943,000 115,747,500 132,858,000 406,548,500

Appendix 15 50

TG = teacher guides; TX = textbook. Enrolment Data: Projections of the Planning Department, MOEYS, using repetition and dropout rates based on 2001 targets. Core instructional materials comprise 4 titles in Grades 1-6, 8 titles in Grades 7-9, 10 titles in Grades 10-12, and corresponding teacher guides in all grades. New titles for Grades 1, 2, 7, and 10 to be purchased in 2004, and new titles for Grades 3, 4, 8, and 11 to be purchased in 2005. TX prices estimated to increase by 5% per annum from 2004. Budget estimates: MOEYS Education Strategic Support Plan 2001-2005 (estimated in Riels at an exchange rate of US$1 = Riels 4,000). Discretionary grants to schools include funds for purchase of supplementary and complementary educational books and other materials (as well as facilities maintenance, sports and arts, and other running costs) - suppliers of books will be Publishing and Distribution House (PDH), other publishers, and NGOs. Source: Staff Estimates based on PDH demand forecast and MOEYS proposal for the Government Midterm Expenditure Framework for FY2001-2005.