CREDIT AND PROJECT SUMMARY

        
                      Borrower:                India, acting by its President.
        
                      Beneficiaries:           Government of India and the Governments of Assam, Haryana,
                                               Karnataka, Kerala, Maharashtra and Tamil Nadu
        
                      Amount:                  SDR 180 Million (US$ 260.3 million equivalent)
        
                      Terms:                   Standard, with 35 years maturity.
        
                      Description:             The project would support the GOI District Primary Education
                                               Program to build national, state and district managerial and
                                               professional   capacity   for   sustainable   primary      education
                                               development.  It would support district-based programs aimed at
                                               decreases in dropout, increases in learning achievement, and
                                               improved access to primary education.  Priority would be given to
                                               female and SC/ST students through both targeting and special
                                               strategies, and to enhanced community participation.  The project
                                               would include three components:
        
                                               Building National Institutional Capacity to support, monitor and
                                               evaluate a national, decentralized primary education development
                                               program by establishing a strengthened framework for national
                                               management and professional technical assistance.
        
                                               Building State Institutional Capacity in six states to appraise,
                                               supervise and manage district-level projects and institutions for
                                               improving the quality and effectiveness of primary education and
                                               to provide technical support for program management, textbook
                                               development, improved teaching, improved planning and
                                               management and research and evaluation.
        
                                               Improving Quality and Access in Primary Education in 23 districts
                                               in 6 states through strengthened district institutional capacity,
                                               strengthened community participation and awareness, improved
                                               facilities, teacher in-service training, learning materials and
                                               teaching aids, targeted interventions for girls, SC and ST students,
                                               early childhood education and construction of new schools and
                                               classrooms.
        
                                                               

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Benefits and Risks: The project would be a first investment in a longer-term program to improve the literacy and numeracy skills of the citizens of India, particularly the rural poor, and hence increase their productivity and social welfare. It would establish the institutional framework necessary for the implementation of the District Primary Education Program over the medium term. It would provide access to primary education for an estimated 1.4 million additional children, enable more than 1.5 million children to complete primary education by reducing dropout, and improve the quality of instruction and learning achievement for approximately 14 million children. It is expected that 60 percent of children benefitting from the project would be girls. Implementation risk is high because the project would be supporting a newly created program. Although policy and political commitment is high at the national level, financial and managerial risks will need to be closely monitored at both national and state levels. The project would seek to address these risks through the development of project monitoring systems, annual planning and budgeting exercises, annual progress reviews involving all program donors, a program of evaluation studies, and a mid-term review. Intensive supervision would be provided by an expanded education team in the Resident Mission.

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                             Estimated Project Costs: 
                                                                                                          Local           Foreign              Total
                                                                                                                        US$ Million  
        
                                    Build National Institutional Capacity                                   17.8              2.7              20.5
        
                                   Build State Institutional Capacity                                       23.8              0.9              24.7
        
                                   Improve Quality & Access in Primary Education
                                       Build District Institutional Capacity                                12.0              0.5              12.5
                                       Improve Retention                                                    41.4              1.3              42.7
                                       Increase Access                                                      93.7              3.8              97.5
                                       Improve Learning Achievements                                        70.4              2.0              72.4
                                         Subtotal Improve Quality & Access                                217.4               7.7              225.1
        
                              TOTAL BASE COST                                                             259.0              11.3              270.4
        
                                   Contingencies                                                            38.1              2.0              40.1
        
                              TOTAL PROJECT COST                                                          297.1              13.4              310.5
        
                                           
Financing Plan: Local Foreign Total US$ Million IDA 246.9 13.4 260.3 GOI 50.2 - 50.2 TOTAL PROJECT COST 297.1 13.4 310.5
Estimated Disbursements: IDA FY FY95 FY96 FY97 FY98 FY99 FY2000 FY2001 FY2002 Annual 8.0 32.3 35.7 42.6 45.8 42.3 33.6 20.0 Cumulative 8.0 40.3 76.0 118.6 164.4 206.7 240.3 260.3

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                      Economic Rate of Return:               Not Applicable.
        
                      Poverty Category:                      Program of Targeted Interventions. One of the project's
                                                             main objectives is to improve quality and access in primary
                                                             education for tribal populations, scheduled castes and girls.
                                                             The project contains specific strategies for interventions
                                                             targeted for these groups.