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(d) Finance and Procurement: super-vision of procurement at national and state levels.

(e) Civil Works Inspectorate: supervision of civil works, identification and development of improved school construction designs, and technical assistance to states and district sub-projects.

(f) Research and Evaluation: establishing and monitoring research and evaluation contracts with research organizations and individual consultants.

(g) Technical Assistance: establishing and monitoring national technical assistance programs in cooperating agencies through work program and budget and/or contract arrangements.

2.25 Program technical services would also include technical, financial and administrative supervision of agreements between the DPEP Bureau and agencies implementing national technical assistance programs. A contract for local professional and technical consulting services to support the DPEP Bureau has been prepared and pre- authorized by the Association.

2.26 Flow of Funds. DPEP Guidelines require that total project costs be shared between the GOI and the state in the ratio of about 85:15. The GOI share would appear in the Annual Plan and budget of the DEO; the states' contributions would be provided for in the Annual Plan budget of the education departments of the DPEP states. Advances from the GOI to state societies would be made twice annually, on the basis of district and state AWPBs prepared and appraised previously and evidence of appropriate use of previously advanced funds. The Department of Education has released funds sufficient for the first six months of operations to DPEP state implementation societies.

NATIONAL TECHNICAL ASSISTANCE PROGRAMS

2.27 The credit would finance educational materials, equipment, local and international fellowships, training, and consultant services for the implementation of key national technical assistance programs designed to develop prototype materials and programs and to assist in the development of technical capacities in state agencies. A program of international cooperation would be managed by the DPEP Bureau to assist in the development of both national and state technical capacity. National technical assistance programs would be implemented by NCERT and NIEPA on a project basis through memoranda of understanding with the DPEP Bureau following standard GOI procedures, and through contracts with individuals and other institutions. This approach would give the DPEP Bureau arm's length control over activities and provide the flexibility needed to modify the kind and scale of assistance provided as the program develops.

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2.28 Experience in developing the DPEP has shown that it is possible to develop and implement assistance programs in tandem. Programs for MIS development, research and evaluation, and education planning and management are largely independent activities focused on largely separate elements of the system. The three programs focused on classroom practices -- pedagogical improvement, in-service training, and ST education development -- would need to be linked through coordination among teams, joint activities, and exchange of products. Linkages would be coordinated by the DPEP Bureau (paragraph 2.25).

2.29 The first three programs to be established would build on research and development already underway at NCERT and NIEPA.14/ In the first phase, activities would focus on developing work programs and assessing best practice in India (Annex 11 - National and State Implementation Plans). Subsequent expansion of activities would be based on the work of the first phase of the program. Annual progress reviews and action plans would be discussed with IDA and other donors at each annual program review. Contracts with NCERT for the first two years of national research, development and technical assistance services for (a) primary teacher in-service training; and (b) program evaluation research and studies have been prepared and pre-authorized under terms and conditions satisfactory to IDA.

2.30 Contracts would be developed and signed during the first year of the project for additional technical assistance programs in pedagogical improvement, educational planning and management and ST education development. At negotiations, the GOI provided assurances that terms of reference and draft tender documents for technical assistance programs for (a) pedagogical improvement, (b) educational planning and management and (c) ST education development would be provided for IDA review by January 15, 1995.

2.31 School Statistics MIS. Improving the accuracy and timeliness of school statistics has high priority for monitoring the impact of DPEP reforms. Building on work completed earlier, DPEP would finance a team of experts to develop core specifications for computerized MIS systems for adaptation by states, ensure that state- specific systems are compatible, develop prototype training courses for use in implementing the new system at national, state and district levels, and assist in the training of master trainers at state level, beginning in year 2 of the project.

2.32 Development of Teacher In-Service Training. States and districts face massive in-service training requirements without access to best practice in India and elsewhere. Some prototype materials and training designs have been developed by NCERT, but have not yet been made widely available to states for adaptation and translation into regional languages. DPEP would finance the establishment of a Training Resource Group (TRG) in NCERT to undertake the following activities in collaboration with state agencies and DIETS to improve classroom teaching through in-service training:

14/ First year costs for the program for MIS development will be financed by a grant from UNICEF. IDA would finance the MIS in subsequent years.

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(a) Identify best practices in in-service teacher training in India; evaluate designs and materials; disseminate selected models to states.

(b) Develop field-tested prototype teacher in-service training designs and materials.

(c) Assist states with the development of capacity for adapting prototype training designs and materials, for developing state and district-specific designs and materials, and for conducting formative evaluation activities aimed at improving in-service courses.

2.33 Program Evaluation and Research. DPEP requirements for periodic assessment of learning achievement and for evaluation of pilot programs and core interventions would be met through the establishment of a national program for evaluation, research and studies administered by the DPEP Bureau through a memorandum of understanding with NCERT. The program would:

(a) Improve the educational research and evaluation capacity of national and state research organizations.

(b) Organize international conferences and study tours on primary education research and evaluation.

(d) Disseminate the results of studies to National, state and district management, and internationally, through reports, seminars and newsletters.

2.34 Program for Improved Pedagogy. Very low levels of learning achievement in reading and mathematics in Grades 2 have been documented by learning achievement studies. Without basic competencies, students continue to do poorly in later years, as documented by grade 4 and 5 achievement tests. While poor preparation for learning, illiterate homes and teacher absenteeism no doubt contribute to poor achievement, highly didactic classroom teaching, complex and difficult textbooks, and the absence of appropriately graded syllabi and materials also contribute. Research and development in teaching reading and mathematics in early primary grades and the creation of supplementary teaching/learning materials are clearly needed. Revision of textbooks to the developed MLL competencies is also needed to consolidate and extend the gains that would be made from improved teaching in the early grades. This program would establish a team of scholars to:

(a) Identify best practices within India; assemble learning materials and information on pedagogical practices; disseminate best practices to states through publications, seminars and training programs.

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(b) Gain access to international research on teaching primary reading and mathematics competencies through journals and participation in international conferences and seminars; and disseminate new approaches through the same channels.

(c) Conduct research on reading readiness of children entering grade 1 and on specific reading difficulties of children in grades 1 and 2; this research would include analysis of achievement test scores to identify competencies on which student performance is weak.

(d) Develop research-based, field-tested prototype packages of textbooks, auxiliary learning materials and teacher guides based on MLL and integrated and active learning techniques for reading and mathematics skills development in the early primary grades (Reading Skills and Comprehension Enhancement - RSCE and Mathematics Activity Program - MAP).

(e) Collaborate with the Teacher In-service Training Program to provide technical assistance to states and districts for the implementation of improved pedagogy in relation to MLL.

(f) Improve the design, layout and production of textbooks and teaching/learning materials.

(g) Provide training and technical consulting services to assist with capacity building for textbook and learning material development and publication in state agencies.

2.35 Technical Assistance and Training in Educational Planning and Management. Experience gained in developing state and district sub-projects has demonstrated the need to upgrade planning and management skills at the state and district level. DPEP would finance a team of experts to assist state planning and management units/institutions to develop competencies in the following areas through technical assistance and training:

(a) Compilation of education statistics.

(b) District level planning, including civil works, intervention design, costing and implementation planning.

2.36 ST Education Development. Faculty at NCERT and NIEPA have conducted a number of studies of tribal education. These efforts would be intensified and expanded to improve the implementation of national policy for ST education. This work would involve various state institutions, such as the Tribal Research Institute in Assam and the Indian Institute of Languages in Karnataka, as well as Tribal Welfare

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Departments, in order to take advantage of existing expertise and local knowledge. Planning for this program is in very early stages. Key decisions, such as the organizational location of the program, would need to be taken in consultation with a wide range of institutions.

PREPARATION FACILITY

2.37 In the start-up year of DPEP, priority attention would be given to development of national and state institutions, and to the initiation of district sub-projects. Preparation for the expansion of the program to additional states and districts would not begin until the second year. While full financing of expansion sub-projects would not be part of the proposed first credit, a facility would be provided to finance preparation costs in non-project states and non-project districts. Costs of national technical support and appraisal would be borne by the DPEP Bureau. A facility of US$2 million is proposed based on the actual costs of preparing the sub-projects proposed for the credit, and estimated costs of first year start-up activities in 40 districts. At negotiations, the GOI provided assurances that IDA concurrence would be sought for preparation of any state or district sub-projects additional to the initial six states and 23 districts proposed for the credit (with full appraisal by DPEP and IDA appraisal of a sample of proposed state/district expansion sub-projects).

INNOVATIONS FACILITY

2.38 States have proposed a number of innovative but un-tested approaches to improved primary education, including educational radio (Assam), reduction of student:teacher ratios (Tamil Nadu) and expansion of block and district supervisory staff (Assam, Karnataka). In addition, a number of core intervention strategies, including ECE, would require pilot testing prior to adoption and replication. Other innovations are expected to emerge from the experience of implementation. A facility (called the "Fund for Innovations") would be managed by the DPEP Bureau, which would appraise proposals from states and districts and commission independent evaluation studies through the national program of research and evaluation. An initial amount of US$5 million to finance contractual services is proposed for financing under the credit, which would be shared between district, state and national levels. Thus, to encourage innovation on a decentralized basis, innovation funds would be established with state implementation societies (approximately $60,000 annually) and district implementation teams (approximately $3,000 annually).

INTERNATIONAL COOPERATION

2.39 Strengthening technical collaboration in the development of primary education would be an important element in the development of DPEP and similar efforts in other countries. Four programs of international cooperation would be administered by the DPEP Bureau: (a) international conferences hosted in India by DPEP;

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(b) participation of Indian experts and officials in international conferences elsewhere; (c) international study tours and participation in international training programs for Indian officials and experts; (d) technical cooperation in the development of DPEP through collaborative training programs in India and individual consultants (Annex 13 - International Cooperation).

2.40 The DPEP Bureau would identify opportunities for international collaboration in consultation with state implementation societies and national technical assistance program teams on an annual basis. An annual plan for core international activities would be approved by the 'Project Board as part of the annual work plan and budget review. In addition, the DPEP Bureau would draw on the program to respond to opportunities and needs that may arise during any program year.

2.41 The credit would finance fellowships, training tuition fees, consultant fees, and travel and per diem for this project element.

E. BUILDING STATE INSTITUTIONAL CAPACITY (Proposed Outlay US$24.7 Million)

2.42 State governments would be responsible for financing approximately 15 percent of annual project expenditures through the state education budget, for appointing district sub-project directors and key staff, and for implementing state and district sub- projects through state implementation societies. Substantial capacity for implementation has been developed in states and districts through sub-project preparation. To ensure rapid start-up of project activities, state governments have designated all district sub- project directors and key staff and included in FY94/95 state budgets earmarked funds for DPEP sufficient to cover first year state financing obligations.

2.43 The capacity of state implementation societies to appraise and supervise district sub-projects would need to be further developed from the base developed during project preparation. In addition, state governments presently operate a variety of institutions and programs with potential to provide management and technical support for district sub-projects. Expanding and developing the capacities of these agencies and, where necessary, creating new ones, would be important to sustained implementation of DPEP over the medium term. Technical support for state capacity building would be provided by national technical assistance programs.

2.44 Preliminary state proposals were reviewed by the GOI and IDA at pre- appraisal. As expected, there was considerable variation across states. Based on these reviews, the GOI has decided that in initial phases states should focus capacity building investments in five key areas: (a) program management, (b) textbook development, (c) improved teaching, (d) improved planning and management, and (e) education research and evaluation.

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