AFRICAN DEVELOPMENT FUND UGANDA Language: English Original: English

UGANDA

Education III (Support to Post-Primary Education and Training) Project

Project Appraisal Report

Social Development Department ONSD North, East and South Region September 2005

Table of Contents

PROJECT INFORMATION SHEET, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS, CURRENCY AND MEASURES, BASIC DATA SHEET, PROJECT LOGICAL FRAMEWORK, EXECUTIVE SUMMARY (iv-xiii) 1INTRODUCTION 1.1 Origin and History of the Project 1 2. THE EDUCATION SECTOR 2 2.1 Sector Background 2 2.2 The Education Policy Framework 2 2.3 Financing of Education 3 2.4 Donor Support to the Education Sector 5 2.5 Major Sector Constraints and Challenges 6 3. THE SUB-SECTORS 7 3.1 Secondary Education 7 3.2 BTVET 9 4 THE PROJECT 10 4.1 Project Concept and Rationale 10 4.2 Project Target Areas and Beneficiaries 12 4.3 Strategic Context 12 4.4 Project Goals and Objectives 13 4.5 Project Outputs 13 4.6 Project Description 14 4.7 Environmental Impact 20 4.8 Project Costs 20 4.9 Sources of Financing and Schedules of Expenditures 21 5 PROJECT IMPLEMENTATION 23 5.1 Executing Agency 23 5.2 Institutional Arrangements 23 5.3 Supervision and Implementation Schedules 24 5.4 Procurement Arrangements 24 5.5 Disbursement arrangements 27 5.6 Monitoring and Evaluation 27 5.7 Financial reporting and auditing 27 5.8 Aid Coordination 28 6 PROJECT SUSTAINABILITY, RISKS AND BENEFITS 29 6.1 Recurrent costs 29 6.2 Project Sustainability 29 6.3 Critical risks and mitigating measures 30

7. PROJECT BENEFITS 32 7.1 Social Impact Analysis 32 7.2 Socio-Economic Benefits 32 7.3 Technical Benefits 33 8 CONCLUSIONS AND RECOMMENDATIONS 33 8.1 Conclusions 33 8.2 Recommendations and Conditions for Grant Approval 33 List of Tables and Charts Table 2.1 Public Expenditure on Education (billions of Uganda shillings) Table 2.2 Donor Support to Development Expenditure Table 2.3 Donor Funding in Support of ESSP Table 4.1 Summary of Project Cost Estimates by Component Table 4.2 Summary of Project Costs by Category of Expenditure Table 4.3(a) Sources of Finance Table 4.3(b) Sources of Finance by Category of Expenditure Table 4.4 Expenditure Schedule by Component and Sources of Finance Table 4.5 Expenditure Schedule by Category and Sources of Finance Table 5.1 Procurement Arrangements Table 5.2 Other Modes of Procurement List of Annexes Annex I Map of Uganda Annex II Organization Chart of the Ministry of Education & Sports Annex III Provisional List of Goods and Services Annex IV Schedule of Implementation Annex V Distribution of Grant by Component and Category of Expenditure Annex VI Environmental and Social Mitigation Plan Summary Annex VII Table of Contents of the Project Implementation Document (PID) Annex VIII List of Beneficiary Schools And Sub-County Sites Annex IX List of ongoing projects Annex X Project Processing Schedule

This report was prepared on the basis of the findings of an Appraisal Mission that visited Uganda in July-August 2005. The mission was composed of Mr. Baboucarr Sarr, Chief Education Analyst, ONSD.1, Mr. Frank Mvula, Senior Architect, ONSD.2 and Mr. Wim Klunne, Principal Renewable Energy Expert, PSDU. Enquiries relating to this report may be directed to Mr. André G. Komenan, Division Manager, ONSD.1 (ext. 2150) or Ms. Alice Hamer, Director, ONSD (ext. 2046) or Mr B. Sarr (ext. 2633)

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AFRICAN DEVELOPMENT FUND TEMPORARY RELOCATION AGENCY

B.P. 323 1002 TUNIS BELVEDERE Tel: (216) 71 333511 Fax: (216) 71351933

Email: afdb@afdb.org

PROJECT INFORMATION SHEET Date: August 2005

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower. 1. COUNTRY: Republic of Uganda 2. NAME OF PROJECT: Education III (Support to Post-Primary Education and

Training) Project 3. LOCATION: Country-wide 4. BORROWER: The Government of Uganda 5. EXECUTING AGENCY: Ministry of Education and Sports (MoES)

Plot 9-11 Parliamentary Avenue

Embassy House

Kampala

Tel: ++ 256 41 258620 (EPD) Fax: ++ 256 41 232104 email: ps@education.go.ug

6. PROJECT DESCRIPTION: The Project will consist of the following components:

i) Increased Access to Secondary Education and Improvement of Science Education

ii) Support to Business, Technical and Vocational Training (BTVET) iii) Project Coordination and Management

7. TOTAL COST: UA 22.23 million

i) Foreign Exchange UA 11.77 million ii) Local Costs UA 10.46 million 8. BANK GROUP FINANCING:

ADF Grant UA 20.00 million

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9. OTHER SOURCES OF FINANCE:

GoU UA 2.23 million 10. PLANNED DATE OF APPROVAL: November 2005 11. ESTIMATED STARTING DATE: January 2006 PROJECT DURATION: Five Years 12. PROCUREMENT

Procurement of goods and services would be undertaken in accordance with the following Bank Group’s rules of procedure:

International Competitive Bidding (ICB) Civil works for new seed secondary schools, Vocational Training Institute and Technical Institutes, laboratory equipment and workshop equipment for BTVET.

National Competitive Bidding (NCB)

Civil works for completion of 6 selected seed secondary schools, rehabilitation of 6 grant aided secondary schools; furniture for all seed schools and technical institutes, textbooks, lab equipment raw materials for STEPU, reference books and computers for seed schools.

Short Listing Multi-discipline firm for civil works consultancy, technical assistance for studies, local training costs, local technical assistance for studies, curriculum development and training.

International Shopping (IS): Solar Equipment

National Shopping (NS): General Office Equipment

Direct Purchase: Training of trainers through UGAPRIVI. Non Bank Funded

Operating costs for project management funded by the Government of Uganda (GoU) are subject to the tender procedures and regulations of GoU.

13. CONSULTANCY SERVICES REQUIRED

Consultancy services will be required for design and construction supervision of civil works, training activities and curriculum review.

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CURRENCY EQUIVALENT (August 2005)

National Currency : Ugandan Shilling (UGX) 1 UA = 2599.98 UGX 1 UA = 1.45661 USD

WEIGHTS AND MEASURES

1 kilometer (Km) = 0.62 miles 1 meter (m) = 3.28 feet 1 hectare (ha) = 2.47 acres

FISCAL YEAR

1st July to 30th June

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ACRONYMS AND ABBREVIATIONS

ADB African Development Bank ADF African Development Fund AIDS Acquired Immune Deficiency Syndrome ATP Assessment and Training Package BTVET Business, Technical and Vocational Education and Training CIDA Canadian International Development Agency CSP Country Strategy Paper DCI Development Cooperation Ireland DED German Development Service DIT Directorate of Industrial Training ECD Early Childhood Development EFA Education for All EFAG Educational Funding Agencies Group EPD Education Planning Department ESA Education Standards Agency ESCC Education Sector Consultative Committee ESSP Education Sector Strategic Plan EU European Union GDP Gross Domestic Product GER Gross Enrolment Ratio GOU Government of Uganda GTZ German Technical Corporation HIPCs Highly Indebted Poor Countries HIV Human Immuno-deficiency Virus IMF International Monetary Fund JICA Japan International Co-operation Agency KfW German Development Bank M&E WG Monitoring and Evaluation Working Group MDGs Millennium Development Goals MoES Ministry of Education and Sport MoFPD Ministry of Finance, Planning and Development MTEF Medium Term Expenditure Framework NER Net Enrolment Ratio NGO Non-Governmental Organisation NCDC National curriculum Development Centre NTC National Teacher Training College PAF Poverty Action Fund PCU Project Coordination Unit PEAP Poverty Eradication Action Plan PEM Public Expenditure Management PERP Primary Education Reform Program PEVOT Program for Employment and Vocational Training PLE Primary Leaving Examination PPET Post-Primary Education and Training PPDA Public Procurement and Disposal of Public Assets Authority PRPs Poverty Reduction Programmes/projects PTC Primary Teacher Training College SPM WG Sector Policy and Management Working Group

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SWAp Sector-Wide Approach SSMTP Secondary Science Mathematics Training Project STEPU Science Technology Production Unit TI Technical Institute UA Unit of Account UCE Uganda Certificate of Education UGAPRIVI Uganda Association of Private Vocational Institutions USSIA Uganda Small Scale Industries Association UN United Nations UNEB Uganda National Examinations Board UNESCO United Nations Educational Scientific and Cultural Organisation UPE Universal Primary Education UVQF Uganda Vocational Qualifications Framework VTI Vocational Training Institute

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Year Uganda AfricaDevelo-

pingCountries

Develo-ped

CountriesBasic Indicators Area ( '000 Km²) 241 30 061 80 976 54 658Total Population (millions) 2003 25.8 849.5 5,024.6 1,200.3Urban Population (% of Total) 2003 14.3 39.2 43.1 78.0Population Density (per Km²) 2003 107.1 28.3 60.6 22.9GNI per Capita (US $) 2003 250 704 1 154 26 214Labor Force Participation - Total (%) 2003 47.8 43.3 45.6 54.6Labor Force Participation - Female (%) 2003 47.6 41.0 39.7 44.9Gender -Related Development Index Value 2002 0.487 0.476 0.655 0.905Human Develop. Index (Rank among 174 countries) 2002 146 n.a. n.a. n.a.Popul. Living Below $ 1 a Day (% of Population) 1992 36.7 46.7 23.0 20.0

Demographic IndicatorsPopulation Growth Rate - Total (%) 2003 3.2 2.2 1.7 0.6Population Growth Rate - Urban (%) 2003 5.8 3.8 2.9 0.5Population < 15 years (%) 2003 52.1 42.0 32.4 18.0Population >= 65 years (%) 2003 2.6 3.3 5.1 14.3Dependency Ratio (%) 2003 111.2 86.1 61.1 48.3Sex Ratio (per 100 female) 2003 98.9 99.0 103.3 94.7Female Population 15-49 years (% of total population) 2003 21.3 24.0 26.9 25.4Life Expectancy at Birth - Total (years) 2005 47.0 50.7 62.0 78.0Life Expectancy at Birth - Female (years) 2003 48.1 51.7 66.3 79.3Crude Birth Rate (per 1,000) 2003 50.4 37.0 24.0 12.0Crude Death Rate (per 1,000) 2003 16.1 15.2 8.4 10.3Infant Mortality Rate (per 1,000) 2005* 88.0 80.6 60.9 7.5Child Mortality Rate (per 1,000) 2005* 143.4 133.3 79.8 10.2Maternal Mortality Rate (per 100,000) 2005* 506 661 440 13Total Fertility Rate (per woman) 2005* 6.9 4.9 2.8 1.7Women Using Contraception (%) 2005* 23.0 40.0 59.0 74.0

Health & Nutrition IndicatorsPhysicians (per 100,000 people) 2005* 4.0 57.6 78.0 287.0Nurses (per 100,000 people) 2005* 27.6 105.8 98.0 782.0Births attended by Trained Health Personnel (%) 1995 38.0 44.0 56.0 99.0Access to Safe Water (% of Population) 2002 56.0 64.4 78.0 100.0Access to Health Services (% of Population) 2005* 72.0 61.7 80.0 100.0Access to Sanitation (% of Population) 2000 75.0 42.6 52.0 100.0Percent. of Adults (aged 15-49) Living with HIV/AIDS 2005* 6.2 6.4 1.3 0.3Incidence of Tuberculosis (per 100,000) 2000 130.4 109.7 144.0 11.0Child Immunization Against Tuberculosis (%) 2003 96.0 81.0 82.0 93.0Child Immunization Against Measles (%) 2005* 83.0 71.7 73.0 90.0Underweight Children (% of children under 5 years) 2005* 23.0 25.9 31.0 …Daily Calorie Supply per Capita 2002 2,409.6 2 444 2 675 3 285Public Expenditure on Health (as % of GDP) 1998 1.9 3.3 1.8 6.3

Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2004* 141.0 88.7 91.0 102.3 Primary School - Female 2004* 139.0 80.3 105.0 102.0 Secondary School - Total 2004* 22.0 42.9 88.0 99.5 Secondary School - Female 2004* 20.0 41.3 45.8 100.8Adult Illiteracy Rate - Total (%) 2003 30.2 36.9 26.6 1.2Adult Illiteracy Rate - Male (%) 2002 21.3 28.4 19.0 0.8Adult Illiteracy Rate - Female (%) 2003 39.6 45.2 34.2 1.6Percentage of GDP Spent on Education 2005* 3.9 5.7 3.9 5.9

Environmental IndicatorsLand Use (Arable Land as % of Total Land Area) 2003 25.3 6.2 9.9 11.6Annual Rate of Deforestation (%) 1995 0.9 0.7 0.4 -0.2Annual Rate of Reforestation (%) 1981-90 … 10.9 … …Per Capita CO2 Emissions (metric tons) 1998 0.1 1.2 1.9 12.3

Source : Compiled by the Statistics Division from ADB databases; UNAIDS; World Bank Live Database and United Nations Population Division.Notes: n.a. Not Applicable ; … Data Not Available. * Latest Figures obtained from GoU Health and Education Statistics

COMPARATIVE SOCIO-ECONOMIC INDICATORSUganda

Infant Mortality Rate ( Per 1000 )

0

20

40

60

80

100

120

1995

1996

1997

1998

1999

2000

2001

2002

2003

uganda Africa

GNI per capita US $

0100200300400500600700800

1995

1996

1997

1998

1999

2000

2001

2002

2003

uganda Africa

Population Growth Rate (%)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1995

1996

1997

1998

1999

2000

2001

2002

2003

uganda Africa

111213141516171

1995

1996

1997

1998

1999

2000

2001

2002

2003

uganda Africa

Life Expectancy at Birth (Years)

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UGANDA EDUCATION III (SUPPORT TO POST PRIMARY EDUCATION & TRAINING) PROJECT

LOG FRAME MATRIX

Narrative Summary

Expected Results

Reach (Target

population) Verifiable Indicators

Means of

Verification

Important

Assumptions and Risks

1. Sector Goal 1.Increased and equitable participation in a coherent and flexible education and training system relevant to Uganda’s development goals.

1. A more functional and relevant post-primary education

1. Rural sub-counties without a secondary school.

By the year 2010 Increased gross enrolment in secondary education from 20% (2003) to 38%; Increased gross intake rate of girls in secondary education to parity with boys; 25 % increase in enrolment and retention of children from

Statistics of MoES Surveys and tracer studies;

Maintenance of high levels of public expenditure on education together with adequate budget allocation to post-primary;

2. Project Objectives 2.1. Contribute to improving access and quality secondary education to underserved communities.

2.1 Coverage and number of secondary schools increased

2.1 Secondary school age students in over 30 sub-counties

By year 2010 Increase in the transition rate from primary to secondary education from 40% (2005) to 52 %; Improved distribution of secondary schools so that 25 rural sub-counties currently without feasible access to secondary education are provided with schools;

Post-primary achievement scores on the National Assessment of Progress in Education (NAPE) improve from 60% of students “fair” or “failing” in mathematics to only 40% in

Statistics of MoES; Reports of NAPE; MoESchool inspection reports; Curriculum documents of MoES

MoES policy for seed schools assumes extensive parental and community participation. This will require more active encouragement and information than hitherto. Secondary curriculum review process carried out

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2.2. Contribute to the development of a more relevant and effective training system for business/technical/vocational skills.

2.2 Modularised, competence-based BTVET training programmes

2.2 BTVET instructors and trainees in both public and private institutions

these categories; Revised curriculum introduced in schools Strategy for rationalization of BTVET system drawn up; development of models of flexible, modular learning. BTVET system successfully reviewed and proposed reform actions endorsed by national and development partner stakeholders; Improved and more employment-related training programs designed for use in the BTVET sub-sector; Adoption of UVQF standard- based qualifications for 22 occupations and widespread dissemination of standards;

Reports and documents from BTVET department of MoES and from BTVET institutions Reports from BTVET institutions; Monitoring and Evaluation Reports on the TVET Reform Process; Reports of UVQF and documents of MoES;

to completion on schedule. Sufficient teachers trained in the techniques of making effective use of laboratories and practical work. BTVET reform benefits from continued GoU and donor support Wide array of BTVET institutions, many of them old in both physical facilities and curriculum, must be willing to participate in and adopt new modes of operation such as flexible, modular units.

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Outputs 3.Improved access secondary education and improvement of science education 3.1 Construction and equipping of 24 new seed schools and one (1) special seed school. 3.2. Upgrading of six (6) existing seed schools and rehabilitation of six (6) existing grant aided schools 3.3 Provision of laboratory equipment and furniture to all the schools 3.4 Provision of reference books, pupils text books and teachers guides 3.5 Teachers equipped with essential knowledge and skills in HIV/AIDS prevention, guidance and counselling 3.6. In-servicing of teachers 3.7 Curriculum review for maths and science

Constructed seed schools Upgraded seed schools and rehabilitated grant aided schools. Laboratory equipment and furniture provided Reference books, pupils text books and teachers guides provided Trained teachers in HIV/AIDS Teachers in-serviced Reviewed curriculum for maths and science.

25 new seed secondary with a total of 104 classrooms providing 4,960 student places constructed; 6 existing seed schools upgraded and 6 existing grant aided schools rehabilitated 75 laboratories provided in 3-lab blocks, serviced, equipped and stocked, as well as 2080 sets of furniture provided. 11,840 pupils text books and 2,800 teachers guides for maths and science provided 1400 teachers trained in HIV/AIDS counselling. 480 teachers and 30 heads trained through in-service New curriculum for maths and science. 40 newly designed multi-purpose workshops built and equipped at 6 seed secondary schools, 236 solar units fitted;

QPPRs; Supervision Reports; Mid-Term Review report; MoEST Annual Education Statistics Audit PCU reports Reports of DEB and schools NCDC report MoES (Special Education

Schools chosen for assistance are those in poor areas. Bids as pre-tender estimates Teachers adequately prepared to teach courses and carry out practical work Teachers willing to take training in guidance and counselling; Degree of integration of the HIV/AIDS related activities into the schedule of school activities. Contractors & suppliers bids as estimates

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Activities A. Procurement of goods B. Construction C. Services: training, studies, technical assistance, supervision D. Project management

Inputs Financing Plan Source Amount in UA % ADF Grant 20.00 million 90.0 GOV 2.23 million 10.0 Total 22.23 million Project Costs by Category Category in UA (millions) % A. Goods 3.48 16 B. Works 16.50 74 C. Services 1.60 7 D. Op. Costs 0.65 3 Total 22.23 100.0

ADF Disbursement Records Gov. Disbursement Records Annual Audit Reports Quarterly Progress Reports Bank monitoring of tenders and construction processes PCR

Timely fulfilment of the conditions precedent to entry into force; Timely Govt. counterpart fund provision; Adherence to Bank procedures in procurement activities; Timely availability of goods; Good performance of contractors;

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EXECUTIVE SUMMARY 1. Project Background 1.1 In the past ten years since its commitment to universal primary education (UPE), Uganda has had considerable success in achieving its UPE goals. This remarkable boost in primary school enrolment has given rise to the “UPE bulge”. There are now large numbers of young people who have benefited from UPE. Primary enrolments have increased from 2.2 million in 1993 to 7.6 million just ten years later, an annual rate of increase of 13.2 percent. This considerable achievement is now putting pressure on a post-primary system without the capacity to absorb aspirants at significant rates. 1.2 Transition rates from primary to secondary are a low 40 percent. The Government’s plan is to increase transition to 80 percent by 2015, to ensure that a growing number of children acquire full basic education i.e. primary education and at least 4 years of secondary education. 1.3 The Government of Uganda (GoU) has decided under the Education Sector Strategic Plan 2004-2015 to urgently take up the challenge of improving Post-Primary Education and Training (PPET) in terms of both absorptive capacity and quality relevance. The dual strategy to this end consists of strengthening lower secondary education (S1-S4) for it to adequately serve the purposes of being a substantive upper end of the basic education cycle, be a basis for further education and training, as well as preparation for direct employment. Secondly, in order to offer S4 graduates with alternative options, the quality and relevance of BTVET programmes are being improved through curriculum reform and diversification and regulation of the qualification framework in relation to employment and the economy. 2. Purpose of the Grant The ADF Grant of UA 20.00 million, amounting to 90.0 % of the total project cost, will be used to finance 100 % of foreign exchange (UA 11.77 million) and 79 % of local costs (UA 8.23 million). Government will finance only local costs, i.e. UA 2.23 million. 3. Sector Goal and Grant Objectives 3.1 The major sector goal is to provide for increased and equitable participation in a coherent and flexible post-primary education and training system relevant to Uganda’s development goals. 3.2 The specific objectives of the project are to contribute to (i) improving access and quality secondary education to underserved communities, and (ii) the development of a more relevant and effective training system for business/technical/vocational skills. 4. Brief Description of Project Outputs To achieve the above objectives the project will yield the following outputs under the respective components:

(i) Increased access to secondary education and improvement of science

education

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• 24 new seed secondary schools in rural sub-counties constructed and equipped with laboratories and provided with teaching and learning materials in support of improved Science and Mathematics teaching;

• 1 new special school constructed and equipped children with hearing difficulties;

• 6 existing seed schools completed with additional buildings and equipped; • 6 existing grant-aided public secondary schools rehabilitated and provided

with laboratories and libraries; • 11 of the target seed schools selected to provide dormitory facilities for girls; • Revision of lower secondary (S1-S4) Mathematics and Science curriculum,

development and production of accompanying revised teaching and learning materials and in-servicing of subject teachers and heads across the target schools;

• 1,400 teachers trained on HIV/AIDS prevention, guidance and counselling.

(ii) Support to Business, Technical & Vocational Education & Training • revised curriculum through development of 22 occupational profiles into

modular curricula for use in BTVET training; • 150 BTVET teachers trained annually; • 2 Technical Institutes rehabilitated and re-equipped with upgraded

equipment; • Vocational Training Institute at Jinja rehabilitated, re-equipped and

strengthened to deliver instructor training in BTVET; • Scaled-up training-of-trainers programme yielding 540 instructors for

BTVET institutions.

(iii) Project Coordination and Management • Equipment and funds for project implementation and management. • More effective project coordination and management experience for the staff

of the Education Planning Department and Departments of Secondary Education and BTVET of the MoES.

5. Project Costs The total project cost, net of taxes and custom duties, is estimated at UA 22.23 million out of which UA 11.77 million (53 % of the total cost) will be in foreign currency and UA 10.46 million (47 % of the total cost) will be in local currency. 6. Sources of Finance

The project will be financed jointly by the ADF Grant (UA 20.00 million) and Government of Uganda (UA 2.23 million). The ADF Grant will finance 90.0% of the total project cost, and will comprise UA 11.77 million in foreign exchange, representing 53% of total project costs, and UA 8.23 million in local costs, being 37% of total project costs. All foreign exchange requirements of the project will be borne by the ADF funds. The ADF will wholly fund the costs of goods and 90% of the costs for works and services. The Government's contribution of UA 2.23 million in local costs, representing 10.0% of the total project cost will partially finance the categories of expenditure for works (10%), services (10%) and operating costs (65%).

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7. Project Implementation

The project will be implemented over a period of 5 years starting from the 1st quarter of 2006 in according to the implementation schedule presented in Annex IV. The MoES will be the executing agency for the project; and its implementation and management will be carried out in accordance with the existing arrangements at the EPD for coordination of projects and interventions funded by EFAG members in support of the Education Sector Strategic Plan – 2004-2015 (ESSP, 2004-2015). 8. Conclusions and Recommendations 8.1 The proposed project contributes to the expansion and improvement of secondary education, especially in rural areas, which are currently ill-served with secondary schools. Apart from the equity dimension, its main focus on curricula review and improving the inadequate conditions for teaching and learning of science and maths in the critical S1–S4 grades of secondary will contribute to making secondary schooling relevant to further education, training and work. The support to BTVET will contribute to making it a more credible option for post-S4 further education and skill development, in view of its more explicit and direct links with the real needs of the labour market. 8.2 The fruits of Uganda’s impressive efforts in successfully stimulating UPE will be seriously undermined if the absorptive capacity at the post-primary level is not urgently and consistently developed. The project fits well into Uganda’s poverty alleviation strategy as well as its medium-term aspirations to be a middle-income country. Its various outputs will contribute to the nation’s human resource development, through better preparation for further education, training and work. 8.3 It is, thus, recommended that an ADF Grant not exceeding UA 20.00 million be extended to the Republic of Uganda for the purpose of implementing the project as described in this report, subject to the conditions specified in the grant agreement.

1. INTRODUCTION 1.1. Origin and History of the Project 1.1.1 In 1987, after turbulent years of internal strife, the new government embarked on an economic recovery program. Fiscal discipline and monetary stability were restored; a start was made with the rehabilitation of infrastructure; and civil service reform and revised investment incentives were introduced. Together with donor support and prudent economic management, the return to political stability and security in most of the country brought about by the government led to sustained economic growth. Economic growth during recent years has continued to be strong, averaging 5.5 percent during 1999/2000–2004/2005. Uganda’s average inflation rate has been below 5 percent for more than a decade. In the five years after 1992 there was a 21 percentage point drop in the number of people living in poverty from 56% to 35%. In recent years, however, poverty levels have been rising, reaching 38% in 2002/03. Reasons for this setback include, among others, deterioration in the terms of trade and high population growth. Accordingly, the Poverty Eradication Action Plan (2005-2008) (PEAP) underscores, among other things, the need to achieve key strategic results in the form of increased GDP growth, reduced poverty and inequality, and improved human development. 1.1.2 The challenge for Uganda is now to pursue and sustain its determination to evolve over the next two decades into a middle income country. To attain the required rate of growth, as underlined in the Uganda Joint Assessment Strategy (UJAS), the underpinnings of a market economy need to be further strengthened, exports need to be diversified, and more economic opportunities provided. To ensure that citizens benefit fully from the substantial increases in access to education, health, and other basic services, efforts are now needed to improve the quality of the services offered. 1.1.3 The country has today a labour force of 12 million yet most of these are unskilled because of the low proportions of people with basic or post-secondary education. With the success of UPE over the last 10 years, the picture has started to change, but only significantly for the primary school level. There has been a growing number of youths with virtually no employable skills despite having completed primary or lower secondary schooling. There appears to be a mismatch between the development path of the economy and the level and distribution of skills in the labour force. 1.1.4 The Support to Post-Primary Education and Training Project originated from the request by the Ministry of Education and Sports to the African Development Bank in the ‘Project Concept Paper for GOU-ADB Education III Project (Support to ESSP)’ of January 2005. The project also takes due account of the Education Sector Strategic Plan 2004-2015 prepared by the Ministry in April 2004, the Poverty Eradication Action Plan (PEAP) and the UJAS. This report is based on the findings and agreed recommendations between the GOU and the ADF of the Identification Mission (February 2005), the Preparation Mission (April-May 2005) and the Appraisal Mission (July-August 2005). It is framed within the SWAp intervention framework agreed upon between the GoU and the Education Funding Agency Group (EFAG) in support of the ESSP, and is in line with the Bank’s Education Policy (2001).

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2. THE EDUCATION SECTOR 2.1 Sector Background Structure of the Education System 2.1.1 The key basic sub-sectors are: Pre-Primary and Primary Education; Post Primary Education and Training (Secondary Education and Vocational Training); and Tertiary Education. Each of the sub-sectors is planned for and managed under a department headed by a Commissioner. The sector also has two service departments: Planning; and Finance and Administration. In addition, the satellite institutions under the sector are: four semi autonomous public universities and twelve registered private universities; National Curriculum Development Center (NCDC); Uganda National Examination Board (UNEB); and the Education Standards Agency (ESA). Delivery of basic services is carried out by district education authorities under different programmes like school facilities grant (SFG), capitation grants and wage grants. 2.1.2 The Ugandan education system offers five levels of education. The first level comprises of 3 years of Early Childhood Development (ECD). The ECD centres provide early childhood care for children up to three years old and pre-school education for three to five-year olds. The second stage comprises of seven years of primary education typically referred to as P1 to P7. The official age ranges from 6-12 years. At the end of primary level, a national examination, the Primary Leaving Examination (PLE), is administered. 2.1.3 The third level comprises of four years of junior secondary (S1-S4) leading to the award of the Uganda Certificate of Education (UCE) on successful completion. Parallel to junior secondary schools are three-year technical schools or farm schools, which also admit primary school graduates. 2.1.4 The fourth level comprises of three types of offerings: a) two-year senior secondary school or ‘A’ level programme that admits a very limited number from lower secondary graduates, b) two years of vocational education offered at technical institutes and commercial colleges, and c) two-year Primary Teacher Training Colleges (PTCs). 2.1.5 Finally, the fifth level of the system comprises of various types of institutions that offer two to five year programmes leading to the award of degrees and diplomas. These tertiary level institutions include universities, colleges of commerce, paramedical colleges, technical and vocational colleges, and National Teacher Training Colleges (NTCs) for secondary teachers. 2.1.6 Technical schools and farm schools are open to primary school leavers who do not qualify for admission to S1. An array of government and private technical and vocational institutions with BTVET programs are available to students completing junior secondary school (S4). All these BTVET institutions are termed post-primary and follow a track parallel to the mainstream academic one. There is no provision to cross over to or from either track when the need arises. 2.2 The Education Policy Framework 2.2.1 Uganda’s second and current ESSP (2004-2015) is underpinned by the country’s stated national goals for education i.e. - “to promote citizenship; moral, ethical and spiritual values;

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promote scientific, technical and cultural knowledge, skills, and attitudes; eradicate illiteracy and equip individuals with basic skills and knowledge and with the ability to contribute to the building of an integrated, self-sustaining and independent national economy.” 2.2.2 The ESSP was developed in synchronisation with the Government’s PEAP for the period 2004-07. Two of the five pillars of the PEAP concerning this project are: Enhancing competitiveness, production and incomes, thus, targeting “increased ability of the poor to raise their incomes”; and human resource development as both a necessary condition for and a central objective of development, thus, targeting “enhanced quality of life for the poor”. 2.2.3 The strategic plan is further committed to fulfilling the international community’s Millennium Development Goals (MDGs) and the Education for All (EFA) goals. The Millennium Development goal relevant to the Ministry of Education and Sports is to ensure that by 2015 boys and girls will be able to complete a full course of primary schooling and that gender disparities will be eliminated at the primary level by 2005 and at all levels of learning by 2015. While the Sector Plan has much of value to say about improvements in student outcomes and the efficiency of the education system, the crucial aspect in the strategy to achieve the overall objectives is to revitalise the post-primary system in order to help improve the rate of transition from P7 and give students better foundation skills. 2.2.4. Another crucial aspect in achieving the Sector Plan objectives is a revitalised system of education and training for the projected 50 percent of S4 graduates who will not go beyond the completion of lower secondary education. There will be BTVET course offerings in both government and private institutions designed on the basis of confirmed labour market skill profiles and certifiable through a competence-based system. To this end, the MoES, in September 2003, adopted a final policy document on BTVET, thus paving the way for the establishment of the Uganda Vocational Qualifications Framework (UVQF). These policy decisions have set in motion a process for revisiting existing occupational profiles, as well developing new ones with a view to drawing up more relevant training programmes, with the involvement of the private sector, in the following indicative areas: agriculture, business, crafts, industry, health services, and tourism. 2.3. Financing of Education 2.3.1 Uganda’s public spending on education, both as a share of GDP and of total public expenditure, is relatively high by developing country standards. Education spending as a percentage of GDP is 3.9%. In comparison, low-income countries tend to spend on average 3.1 % of their GDP on the education sector. The budget for education is expected to increase by 76% by 2013. 2.3.2 As would be expected in a country which has over the last decade placed heavy emphasis on UPE, the share allocated to primary is high. The Government has continued to allocate substantial resources to the Primary Education sub-sector. As shown in the Table 2.1, primary education has been taking over 66% of the Ministry’s total expenditures in 2004/2005. The BTVET and secondary sub-sectors take only modest shares of the education budget, respectively 4% and 16% on average.

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2.3.3 The share of public expenditure allocated to each sub-sector has not varied significantly over the years. However, projected expenditure on BTVET in the 2007/2008 budget is set to rise to 6%; a significant increase from preceding years.

Table 2.1: Public Expenditure on Education (billions of Uganda shillings)

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Recurrent 255.127 279.182 285.718 325.661 322.069 353.521 Development 81.054 71.981 81.061 64.679 68.039 78.93 Total 336.181 351.163 366.779 390.34 390.108 432.451

Primary

Sector Share 66.7% 67.9% 66.1% 67.5% 64.6% 64.6%

Recurrent 72.801 81.667 91.787 92.482 101.501 106.339 Development 5.459 1.767 0.808 0 2.55 3.45

Total 78.26 83.434 92.595 92.482 104.051 109.789 Secondary

Sector Share 15.5% 16.1% 16.7% 16.0% 17.2% 16.4%

Recurrent 16.011 15.134 18.483 17.96 17.063 22.18 Development 4.17 1.422 4.407 3.826 6.636 17.687 Total 20.181 16.556 22.89 21.786 23.699 39.867 BTVET*

Sector Share 4.0% 3.2% 4.1% 3.8% 3.9% 6.0%

Recurrent 47.481 49.048 55.821 61.328 75.287 65.092 Development 3.15 1.608 1.875 2.06 2.09 5.3 Total 50.631 50.656 57.696 63.388 77.377 70.392 Tertiary

Sector Share 10.0% 9.8% 10.4% 11.0% 12.8% 10.5%

Recurrent 12.001 11.44 10.095 8.829 6.495 6.704

Development 6.78 4.022 4.466 1.765 2.23 10.708 Total 18.781 15.462 14.561 10.594 8.725 17.412

Other Expenditure

Sector Share 3.7% 3.0% 2.6% 1.8% 1.4% 2.6%

Recurrent 403.421 436.471 461.904 506.26 522.415 553.836

Development 100.613 80.8 92.617 72.33 81.545 116.075 Total Public

Expenditure on Education Total 504.034 517.271 554.521 578.59 603.96 669.911

* Government institutions; Source: MOES, Education Sector Medium Term Budget Framework Paper 2004. 2.3.4. The total budget over the period of the Education Sector Strategic Plan 2004-2015 is estimated at UGX 14,698.6 billion. Government contribution towards this cost is expected to reach UGX 9,094 billion. If the share of private expenditure to educational financing was to remain constant, UGX 5413.8 billion would become available during the implementation of the ESSP. This would leave a shortfall of UGX 190.8 billion. 2.3.5 The share of educational expenditure privately borne by clients has been as much as 71% in the post-primary sub-sector over the period 2002/2004, according to EMIS statistics. However, with the first cohorts from the UPE drive reaching post-primary education as from 2005, and the attendant increase in participation rates of students from lower income households, there is uncertainty as to what extent such clients can afford all secondary school-related costs. GoU therefore looks towards international funding agencies to assist in reducing the gap through contributions to both recurrent and development financing.

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Table 2.2: Donor Commitment to Development Expenditure (billions of Uganda shillings)

2003/04 2004/05 2005/06 2006/07 2007/08 Primary 30.8298 16.269 7.6048 0 0 Secondary 11.913 14.095 16.684 482 0.506 BTVET 10.2408 16.1757 12.9907 10.5951 4.9921 Tertiary 16.6787 15.4258 17.56 13.9907 15.1132 Other 4.0155 3.4448 0 0.929 0 Total 73.677 65.411 54.839 25.997 20.611 Source: Medium-Term Budget Framework 2004/05-2006/07

2.4 Donor Support to the Education Sector 2.4.1 The ADB works closely with other donors as a member of the Education Funding Agency Group (EFAG) within the framework of the Sector Wide Approach (SWAp) in support of the implementation of the Education Sector Strategic Plan – 2004/2015 (ESSP-II). Assistance to the sector is agreed upon and presented in the form of an annual Budget Framework Paper to guide decisions on target spending and budget ceilings per sub-sector. 2.4.2 The SWAp arrangements provide for both budget support and project support. The use of the latter must be fully aligned with the overall sector programme, as well as be seen to complement assistance from other donors. In opting for this type of support for the proposed project, the GoU underlined both its relevance and complementarity with other donor interventions. This decision is also related to the satisfaction with the on-going Education II project that uses this modality. The predictability of funding availability and the urgency of catering for the increasing numbers of primary school graduates are also considered as key advantages associated with this modality. Table 2.3: Donor Funding Commitments in Support of ESSP (in US$) as of September 2005

Budget Support Project Support DONOR Area of Intervention 2005/06 2004/05 2005/06 2006/07 2007/08 ADB Education II Project 3.4 5.4 Belgium School for Traumatised Children 0.7 0.2 CIDA Basic Education and BTVET Management 0.9 DCI PERP, PPET, Adult Literacy, HIV/AIDS 19.6 3.9 DFID Education Sector Program 0.6 EU HRD for Health Sector 4.3 6.1 4.3 1.2

Germany Program for Promotion of Private Vocational Training Providers 3.7

Germany Promotion of Employment-Oriented Vocational and Technical Training 0.6 0.2

IDB Support to Polytechnics 1.2 1.3 Japan Nakawa Vocational Training Institute 0.1 0.5 0.5 Japan JICA SSMTP 1.5 Netherlands Support to Curriculum Review 0.1 Netherlands Education Furniture 1.2 4.3 UNICEF Child-Friendly Basic Education 3.6 1.8 1.8 USAID Basic Education Policy Support 9.5

WFP Support to Education and Adult Literacy in Karamoja 3.7 4.0 4.0 4.0

Total 19.6 22.0 39.5 11.9 5.2 Source: MoES/MoFPD

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2.4.3 The donor agencies currently involved in projects more closely related to the proposed project are the German Development Cooperation (GTZ) and the Japanese International Cooperation Agency (JICA). The GTZ, in co-operation with other German agencies like DED and KfW and within the framework of the Program for Employment and Vocational Training (PEVOT) is implementing a programme of cooperation that involves: support to public and non-public BTVET institutions; support to Instructor/Teacher Training institutions; support to the UVQF Secretariat and the setting up of an Assessment Infrastructure for the framework; establishment of an Information and Communication platform for the BTVET sub-sector. The proposed project will complement the support to the UVQF in the profiling and test development exercise for a range of selected occupations. The German group is also involved in the progressive training and upgrading of instructors of private training institutions through a series of well-targeted training-of-trainers (TOT) programme as part of its support to the Uganda Private Vocational Institutes’ Association (UGAPRIVI). The project will assist in scaling up the TOT programme for it to have a wider impact on instructor effectiveness in private institutions. 2.4.4 JICA is currently supporting Nakawa Vocational Training Institute and has also started (April 2005) a program of upgrading for an estimated 600 maths and science teachers and 200 administrators in secondary schools at the cost of US$ 1,500,000 over a three-year term. Nakawa VTI in Kampala is widely considered as a model institute that needs to be replicated around the country. Hence, this project’s support for the extensive rehabilitation and upgrading of the Vocational Technical Institute at Jinja. Similarly, JICA’s planned interventions in support of teacher training for improved teaching of science and mathematics in two pilot districts will be related to the project’s contribution in improving the conditions for the teaching and learning of science and mathematics. 2.4.5 As part of the World Bank Energy for Rural Transformation project (WB-ERT) the MoES is implementing the provision of Solar Photovoltaic (PV) energy systems to 50 selected secondary schools in four districts. One of the schools to be refurbished under the Education III project is amongst them. Therefore, to ensure consistency and to benefit from the work already done under the WB-ERT project, the same PV system design as the WB-ERT program will be utilised in the target seed schools. This will facilitate tender preparation and the determination of technical specifications. 2.5 Major Sector Constraints and Challenges 2.5.1 In addition to the structural insufficiencies of the education system, other constraining factors include the continued prevalence of poverty, disease (especially HIV/AIDS), armed conflicts as well as the disempowering consequences of rapid population growth. 2.5.2 A lot of socio-economic and regional disparities in education provision exist. For example, a significant proportion of school-going age children are still excluded from participation especially among the nomadic and fishing communities, and from the conflict areas of the country. There are also still imbalances in GERs between rural and urban areas; and at higher levels of education, girls are still under-represented in the science and vocational subjects and the gap in university education enrolment is widening in favour of males.

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2.5.3 A major criticism of the education system is its inability to prepare the majority of post-primary school leavers for further education and training and entry into the labour market. Those who proceed with further education at secondary level often fail their examinations in critical subject areas like mathematics and science. Those who proceed to BTVET programs are often ill-prepared for the world of work because the institutions lack the appropriate facilities, equipment and competent trainers. 3. THE SUB-SECTORS 3.1 Secondary Education 3.1.1 The expansion of primary education has started putting pressure on an already physically constrained secondary education system. As a result, the government has prioritized the following actions with the aim of increasing physical access and improving the conditions for the teaching of science and mathematics in secondary schools in poorer areas of the country:

a) Construction of secondary schools in sub-counties without a government aided secondary school;

b) Provision of classroom furniture for constructed classrooms; c) Construction and rehabilitation of Science laboratories including furnishing, equipping

and provision of reagents; d) Construction and rehabilitation of libraries including furnishing and stocking of reading

materials; e) Provision of learning materials in science and mathematics; f) In-service training of secondary school teachers in Mathematics and Science; g) Equipping teachers with essential knowledge and skills in HIV/AIDS prevention, career

guidance and counselling. Access and Equity 3.1.2 At the end of the seven years of primary schooling, students sit for the Primary Leaving Examination (PLE) in which they are examined in four subject areas: English, Mathematics, Social Studies, and Basic Science and Health Education. PLE serves to certify performance at the end of primary school as well as for selection to secondary school. The transition rate is around 40 percent; reflecting the inadequate absorptive capacity of the second level. 3.1.3 A review of secondary enrolment rates by income quintile in the context of the Household Surveys of 1992, 1997 and 2000 found that in 1992 more than twice as many students from the richest 20 percent of households were enrolled in secondary compared to those from the poorest 20 percent. By 2000, the ratio had increased 3.5 to 1. 3.1.4 Until the early 1990s the numerical gap between P7 and S1 was approximately constant. With the onset of the UPE policy the gap started to widen, and from 2000, as the first UPE cohort started to complete primary school it increased dramatically. Even with a trend of 486,000 students graduating in 2003/2004 from P7, equivalent to about 40% transition rate, an estimated 294,000 were still left with little or no options for further education or training.

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3.1.5 The gender distribution regarding enrolment rates of girls in the Ugandan education system is as follows: primary: 49.2%; secondary: 45.2%; post-primary: 30.6%; tertiary: 37.5%. There is almost near parity at the primary level, as well as a relatively significant rate at secondary level by Sub-Saharan standards. As in many other developing countries, a lower percentage of females continue to secondary school. However, with the technical orientation of many of its courses, the post-primary sector has attracted only a modest proportion of females. Although girls have tended recently to constitute 46 percent of the cohort entering (S1) of secondary school, this figure drops to 45 percent by the end of lower secondary and reaches 40% at the end of the final grade of upper secondary (S6). 3.1.6 While the overall rate of population growth has started to ease, the school-age population is expected to continue to grow at a rate of around 3.4 percent a year over the next decade. On existing population trends there is no realistic prospect of an improvement in the P7/S1 ratio in the short or medium term. The transition rates between P7 and S1 are most likely to decline in the face of growth of P7 graduates and might only regain its 2002 level by 2012. 3.1.7 The challenge that this constitutes is evident. However, it is noteworthy that in 2003 private and community sponsored schools offered 92,000 places in S1 compared to government schools, which offered only 86,000 places. The private and community schools enrolled a total of 345,000 students across S1 - S4 while government schools enrolled 336,000. Therefore, there is a clear case for determined measures to expand access on the part of both government and non-government bodies. Special Needs Education 3.1.8 The ESA Inspection Report of 2002/2003 pointed out that in Uganda, the education system is still very much exclusive. Quality indicators used in the inspection revealed that the needs of the disabled and disadvantaged were the least addressed at both management level and in the teaching/learning process. In this project, there is provision for the inclusion of facilities for the physically-challenged in the design of the seed secondary schools. This will take the form of ensuring easy access to classrooms, provision of work stations, and convenient use of toilets. Furthermore, a centrally-located MoES facility under the Department of Special Education will be supplied with an initial batch of a wide array of teaching/learning aids to manage and put at the disposal of schools for inclusive teaching purposes. 3.1.9 In recognition of the limits of inclusive education when it comes to certain forms of handicap, as well as the relatively significant number of students concerned, one of the new seed secondary schools will be exclusively for children who are hard-of-hearing. Quality and Relevance 3.1.10 Data on the performance of students in the mathematics and science subjects in the UCE ‘O’ level examinations over the period 2001 – 2004 show that 50 percent of the candidates failed in mathematics while 30 percent failed in the sciences. In both cases, 75 percent of the passes were grade 8- a weak pass. The proportion of girls failing was much higher than boys in both mathematics and the sciences. At A level, 30 percent and 20 percent respectively failed in the subjects.

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3.1.11 The Education Standards Agency (ESA) conducted a nationwide inspection exercise during 2002/2003 with particular emphasis on quality and standards. It was generally found that in the vast majority of secondary schools, essential facilities including libraries, laboratories and student hostels were inadequate and sub-standard and that the supervision of teachers by heads was inadequate (ESA, 2002/3). 3.1.12 Most rural communities do not have sufficient and quality post-secondary institutions for their children to pursue further education or technical and vocational training. Most of those available are often far away (5-10km distance) to walk to and do not have boarding facilities. 3.1.13 Currently, out of 781 secondary schools (Government), especially those in rural areas, more than 60% continue to lack basic science teaching and learning facilities such as laboratories and libraries. The on-going ADF-funded Education II project that is constructing 54 laboratories in rural girls’ secondary schools is part of GoU’s response to this situation. 3.1.14 Most schools in the rural areas do not have housing and other amenities to attract qualified and experienced teachers. There is a shortage of well-trained mathematics and science teachers, particularly women who can provide role models for young girls to develop an interest in the scientific and technological careers. 3.2. Business, Technical Vocational Education and Training (BTVET) Policy Framework 3.2.1 In 2003, a Business, Technical and Vocational Education and Training system policy was formulated and adopted by the Ministry of Education, in recognition of the inevitable role it would have to play in the reduction of poverty through skills acquisition and generation of incomes. It emphasizes the need to orient vocational education and training toward employment and local markets. 3.2.2 The public BTVET system consists of an array of technical schools and institutes. There are 33 Technical Institutes, 3 Vocational Training Institutes and 1 Vocational Training Centre, 25 technical schools, 4 farm schools and 16 Community Polytechnics (CP), with an additional 14 polytechnics to be constructed with a grant from the Islamic Development Bank. Some of these schools and institutes are the legacy of early European occupations and the educational activities of missionaries. Some of them, such as the post-primary farm schools and technical schools, date from decades before the notion of UPE and reflect an out-of-date concept of occupation-specific technical schooling. Their age means that many of these institutions are very poorly equipped. In the private sector it is estimated that there are over 400 private training institutions. 203 of them are members of the Uganda Association of Private Vocational Institutions (UGAPRIVI). They are made up of: Vocational training centres, vocational training institutes, vocational training schools, vocational secondary schools and technical schools. The public and private institutions respectively provide an estimated 10,000 and 40, 000 training places. 3.2.3 Due to the long neglect of the BTVET sub-sector, training was conducted without the benefit of guided policy. There are currently many certifications, of unknown value and utility, being awarded by various bodies in the public sector, private sector and non-government

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organisations. This is made worse by the use of non-uniform curricula by the various providers. The current situation is that the certificate awarding system is fragmented, the responsibility and procedures of awards differ from institution to institution without independent auditing for quality control. The private sector is even worse, because they design their own curricula, teach, examine, mark, credit and award certificates and qualifications at will.

Equity and Access

3.2.4 There is a clear case for BTVET to be made available to a progressively increasing number of young people especially at secondary and post-secondary levels. Unfortunately, due to its cost and the need to cost-share with beneficiaries, many youth can no longer afford to pursue these areas of study. The enrolment of girls and women in BTVET is still relatively low compared to their ratio in the national population. This means an exclusion of a very significant part of the national human resource capital in the building of the nation.

Quality and relevance 3.2.5 The Education Standards Agency (ESA) carried out in 2002 a nation-wide inspection of 142 BTVET institutions, made up of 38% government-funded and 62% private; with a focus on (i) institutional management and (ii) the instructional/learning process. It showed that most institutions were staffed by under-qualified heads and instructors/lecturers. There was inadequate or total lack of provision of basic and, essential infrastructure, facilities, instructional materials, and utilities. Most curricula were found to be outdated, equipment for relevant training for industry was lacking and there were practically no guaranteed practicum sites for students’ industrial attachments. 3.2.6 Another study on Skilled Manpower in Uganda commissioned by the European Union in 2003 focused on the need for BTVET training. It shows that there is a general shortage of skilled labour including traditional trades in the economy. However, due to the high cost of BTVET most institutions cannot afford the basic equipment and tools. Most instruction is theoretical with negligible practical demonstration aspects, if any. It was also found that the reasons for fewer girls enrolling in BTVET were more related to social barriers and conditioning than capability. 3.2.7 In October 2004, the Uganda Association of Private Vocational Institutions (UGAPRIVI) conducted a training needs survey in 80 institutions all over the country. The results of this survey complement the findings in previous studies. Major weaknesses found in these private institutions included: inadequacy of teaching equipment and materials, poorly-trained/untrained staff, lack of standardised curricula, poor management practices and absence of quality inspection services. 4. THE PROJECT 4.1 The Project Concept and Rationale

4.1.1 The proposed project derives its rationale and justification from the preceding analysis of sectoral constraints and challenges, as well as the policy directions. It was designed and formulated on the basis of a participatory approach that involved stakeholders from government, donor community, interest groups and civil society.

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4.1.2 Described as the transitional education sub-sector between the primary and tertiary, the realisation of the quantitative and qualitative limitations of the Ugandan Post-primary level has been accentuated by the increased aspirations of UPE leavers for further education. 4.1.3 The proposed intervention will make a significant contribution to the materialisation of the ‘seed secondary school’ concept. When hitherto under-served communities and local education authorities are provided with one stage of completed and equipped school facilities and they succeed in progressively developing and sustaining it for the catchment area, this will have a positive backwash effect on UPE and give added substance to basic education. 4.1.4 The value of improved secondary schooling as a preparation for upper secondary, the provision of improved and more relevant course offerings in the area of BTVET for junior secondary school leavers constitute important paths towards the production of middle and higher level skill profiles. Through the development of the Uganda Vocational Qualifications Framework, the country will be able to address at one go the issue of training standards, certification, equivalency of competences, as well as reach out to the larger and fast growing pool of private training providers. 4.1.5 The proposed project would be the third Bank Group financed operation in the education and training sector. The first project, the Strengthening of Scientific and Technical Teacher Education Project, with an ADF financing of UA 12.90 million and a GOU contribution of UA 3.15 million, involved the Rehabilitation of two Technical Institutions UPK & ITEK; Rehabilitation of Science and Technology Faculties and the Science Education Resource Centre of Makerere University. The project served as a catalyst in the transformation of two institutes into what is now the University of Kyambogo. However, it experienced a lot of delay. 4.1.6 The second operation, approved in December 2000, signed in May 2001 and became effective on the 17th of July 2001 and scheduled for completion by December 2006, is the Education II (Support to Education Sector Investment Plan) (ESIP) project. It is funded by a UA 20.0 million ADF Loan, UA 2.38 million grant and a GOU contribution of UA 2.5 million. Within the framework of the ESIP, it is focused on (i) increasing primary school intake; (ii) mainstreaming integrated production skills and agriculture in primary and secondary school education; and (iii) improving science education teaching in rural girls’ secondary schools. The project is on track and has the significant difference of not using an autonomous PIU as in the first operation. It is being implemented through existing Ministry of Education departments with the coordination assured by the Planning Department. GOU has recommended that the same project management structure be used for the project being proposed here. 4.1.7 The related lessons from these operations have been taken into account in the conditions and measures to be fulfilled. Close attention will be given to issues of effective and stable project management, adequate field supervision and effective borrower commitment to project implementation and counterpart funding obligations. 4.1.8 The project is consistent with the Bank’s policy in the area of secondary education and TVET. It recognises the strategic advantage bolstering the content and quality of a full basic education cycle (primary and junior secondary), as well as the benefits of investing in the production of middle and higher level skills for RMC economies. The project includes measures

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to improve performance in science and mathematics, as well as development of demand-driven vocational and technical courses through partnerships with relevant stakeholders. A wide range of stakeholders, including civil society organisations, school owners, representatives of employers, private training providers, EFAG and government ministries were consulted during its formulation. 4.2 Project target areas and beneficiaries 4.2.1 The project covers the entire country of Uganda and more particularly targets the underserved communities and groups of youth. Secondary education in the poorer areas of Uganda is a major focus of the project. 25 sub-counties in as many districts with no existing government secondary schools will be provided with new seed schools. (List provided in Annex IX) Schools in isolated areas will be provided with boarding facilities to cater for girls and other disadvantaged groups to whom long distances could be a deterrent. 4.2.2 Two technical institutes, one from the Eastern Region and the other from the Western region, will be rehabilitated. The Vocational Training Institute at Jinja will be rehabilitated to be a centre of excellence in vocational training and the training of trainers for the VTI system. 4.3 Strategic Context 4.3.1 Uganda operates a system of partnership between the funding agencies and the Government. SWAp arrangements have been in place since 1998. They provide for both budget support and project funding modalities, depending on donor and the characteristics of a particular activity. Donors work together through the Education Funding Agencies Group (EFAG) to prepare an agreed annual Budget Framework Paper. The proposed project has been designed to fit into the overall framework of donor support currently offered by the Uganda Joint Assistance Strategy (UJAS). 4.3.2 The outputs of the proposed project are designed to contribute to increased and equitable enrolment in post-primary education and a vocational and technical training system relevant to Uganda’s development goals, leading to increased employment and hence a reduction in poverty. The two components support each other, access to secondary schooling is increased and its quality and relevance enhanced. Graduates at S4 are thus better prepared to move into the productive industries at all levels via the upper levels of the BTVET system or through higher education. 4.3.3 The BTVET system will be revitalised by a new curriculum and modular courses, coupled with appropriate rehabilitation of key regional institutions. The support to the UVQF programme will have a wider effect on improving relevance and assessment of BTVET training programmes in both public and private institutions. 4.3.4 The project will also give a clear impetus to Government’s initiative to redress the inequitable distribution and availability of secondary schools. A programme of “seed” schools has been started in sub-counties where no secondary schools exist. This type of school is designed to be only a start-up, consisting of four classrooms, library, laboratory and staff space. As there is as yet no operating example of a completed seed school to demonstrate the potential of the programme, this intervention will help the government provide such a demonstration.

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4.3.5 The principle of model interventions and demonstration effects is also evident in the BTVET sector. The technical institutes (TI) currently function with very low levels of equipment and resources. Rehabilitation of two such institutes, strategically chosen so that they can function as centres of excellence and attract students from a wide catchment area, will make a major contribution to skills development in rural Uganda. 4.4 Project Goals and Objectives 4.4.1 The sector goal is to provide for increased and equitable participation in a coherent and flexible post-primary education and training system relevant to Uganda’s development goals. 4.4.2 The specific objectives of the project are to contribute to (i) improving access and quality secondary education, with particular attention to un-served communities, and (ii) the development of a more relevant and effective training system for business/technical/vocational skills. 4.5. Project Outputs 4.5.1 The project consists of the following three components and outputs: a) Increasing Access to Secondary Education and Improvement of Science Education

• 24 new seed secondary schools constructed and equipped in rural sub-counties; • 1 new special school constructed and equipped children with hearing difficulties; • 6 existing seed schools completed with additional buildings and equipped; • Out of the 31 targeted seed schools, 6 existing seed schools and 5 new ones provided

each with dormitory facilities to accommodate 80 girls; as well as kitchen and dining room space;

• Availability for use in all 31 target seed schools of a wide array of teaching and learning aids for special needs

• 6 existing grant-aided public secondary schools rehabilitated and provided with laboratories and libraries;

• In support of science teaching and learning, all the seed secondary schools will be provided with laboratories, lab equipment, learning materials for math and science, including textbooks, libraries and reference books, two computers and printers per school; furniture will be provided for classrooms, laboratories and libraries;

• In support of teaching of science, existing laboratories and libraries in the 6 existing schools will be rehabilitated / expanded, provided with equipment, library books and furniture;

• Revised secondary science and maths curriculum for S1 to S4; • production of curricula and one batch of revised teacher guides and textbooks for

initial supply to all project seed secondary schools; • 240 science teachers, 240 maths teachers and 30 headmasters in the target schools

offered in-service training; • 1400 teachers trained on HIV/AIDS prevention, guidance and counselling

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b) Support to Business, Technical & Vocational Education & Training • revised curriculum based on 22 occupational profiles developed into modular

curricula for use in BTVET training; • 150 BTVET teachers trained; • Technical Institutes rehabilitated and re-equipped with upgraded equipment; • Vocational Training Institute at Jinja rehabilitated, re-equipped and strengthened to

deliver instructor training in BTVET; • Scaled-up training-of-trainers programme yielding 540 instructors;

c) Project Coordination and Management; • Provision of equipment and funds for project implementation • More effective project management and coordination on the part of the relevant MoES

departments. 4.6 Project Description 4.6.1 The realisation of the above-mentioned outputs will include the following range of activities and inputs. Component I: Increasing Access to Secondary Education and Improvement of Science

Education 4.6.2 This component will contribute to the increase of access to lower secondary education (S1 – S4) through the provision of first-time schools, as well as extensions to existing ones in 31 sub-counties out of the current 42 that have never had any form of public secondary school. It will thus be contributing to the programme of implantation of seed schools by ensuring that the initial outlays and provisions are optimal enough to attract sufficient students, ensure quality teaching and learning and obtain community support and involvement. 4.6.3 MoES policy for these schools is that parents and community should provide the additional resources to bring the school up to at least 2 streams, fully equipped and at operational standard. Accordingly, 6 existing seed schools in particularly high catchment- areas will be upgraded to 2 streams, provided with a dormitory block and be fully equipped and rendered fully operational to serve as centres of excellence to encourage others. In 24 other sub-counties, new one-stream seed schools (S1-S4) will be constructed and fully equipped and serviced. 4.6.4 One of the seed schools will be a purpose-built special school for the deaf, fully equipped with the necessary teaching and learning aids and provided also with boarding facilities. This is in response to the relatively high prevalence of this handicap amongst school-aged children. With regard to other students in other schools with types of physical challenges that allow for inclusive teaching, the project will put at the disposal of the Department of Special Education an initial stock of specialist teaching and learning equipment and aids to be made available to schools as and when required. All in-servicing of teachers will be provided within the Department’s established programmes.

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4.6.5 In collaboration with local government authorities, the MoES will carry out suitable animation and sensitisation activities with a view to strengthening community resolve and efforts at providing teacher houses, kitchen facilities, etc at the new schools. It is also expected that community and parental involvement will be harnessed in the modalities of effectively running and managing the dormitory system. 4.6.6 Five of the new seed schools, with potential to attract comparatively large enrolments over the short or medium term, and thereby eligible to serve as “centres of excellence”, will be provided with dormitories with the capacity to accommodate 80 girls. 4.6.7 In all the seed schools, ventilated dry pit latrines, including ones accessible to disabled students will be provided; all entrances to the single-storey classrooms will be ramped for wheelchair access; solar units for lighting and limited powering of computers, boreholes, pumps and high level tanks for water supply will be provided. Solar energy units will be provided to schools with no likelihood of imminent access to the electricity grid. 4.6.8 In support of science teaching and learning, all the seed secondary schools will be provided with laboratories, lab equipment, learning materials for math and science, including textbooks, as well as libraries and library books; furniture will be provided for classrooms, laboratories and libraries. 4.6.9 In addition to the seed schools, the project will also contribute to the improvement of conditions in 6 large regional secondary schools. These are schools whose capacity has since been outstripped by the relentless demand for more places over the years. Their facilities have become worn out and insufficient and many buildings have reached a sorry state of repair. The support of the project will consist of full general rehabilitation of buildings, construction of laboratory blocks and libraries, provision of equipment and reagents for labs, classroom furniture and reference books for the libraries. 4.6.10 The project will contribute to the review of the secondary science and maths curriculum, culminating in the development, piloting and production of curricula and one batch of revised teacher guides and textbooks for initial supply to all 31 seed secondary schools. This exercise will be led by the NCDC in collaboration with the Secondary Education department. 4.6.11 All science teachers, maths teachers and headmasters in the target schools will be offered in-service training within the framework of or based on the model of the JICA-supported Secondary Science and Mathematics Teachers’ project (SSMTP). The coordinator for the Secondary component will seek technical advice and guidance from the local chapters of International NGOs (the Forum for African Women Educationists (FAWE), Female Education in Mathematics and Science in Africa (FEMSA) and the Alliance for Community Action on Female Education (ACAFE)) active in the promotion of education for girls and women for enhancing the performance of girls in science and maths. The contribution of ACAFE will be directed at helping girls deal better with the social pressures that often undermine their assiduity and attendance at schools.

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4.6.12 The technical capacity of the Science Technology Production Unit (STEPU) at the NCDC for manufacture of laboratory equipment, among other things, has been significantly enhanced under the on-going Education II with new machinery and equipment. It will therefore be assigned the role of fabrication of one lot of S1 – S4 science laboratory equipment for supply to the project schools. The input of the project will be in the form of the raw materials required. 4.6.13 Support to HIV/AIDS sensitisation and awareness-building activities in the secondary education sub-sector will be done through complementing MoES on-going activities supported by UNESCO, USAID and the Global Fund that focus on guidance and counselling training for teachers, as well as the development of handbooks and manuals. The project will contribute to the scaling up of these pilot initiatives. 1400 teachers will be targeted for training in HIV/AIDS prevention, guidance and counselling. 4.6.14 The details of the categories of expenditure under the above component are as follows: (A) Goods 4.6.15 Furniture for the classrooms, administration, libraries and laboratories will be provided at the 24 new seed schools, 1 special seed school for the deaf, 6 existing seed schools and 6 old grant aided schools. Bunk beds, dining and kitchen equipment will be provided to the 11 seed schools that will serve as “centres of excellence”. In addition reference books will be provided at the libraries for all the schools covered by the project. Each seed school will also be provided with 2 computers and printers. 4.6.16 Photovoltaic systems will be provided to each selected seed school to meet the following energy needs: Lighting for one block of 4 class rooms and a block with 3 laboratories and an administrative block with library; the class rooms are to be provided with lights only, possibly supplemented by a cell phone charging point, normal lighting and security lights for the office block, power for 2 computers, laboratory lights and small equipment, like microscopes. 4.6.17 Where a dormitory is provided, lighting for the sleeping rooms, latrines, communal hall, as well as security lights will be provided. Where a borehole will be dug, a solar water pumping facility will be installed. 4.6.18 Raw materials for a period of two years will be provided to STEPU in order to enable them manufacture some laboratory equipment. (B) Works 4.6.19 The civil works will involve construction of 24 new seed secondary schools, 1 special seed school for the deaf, upgrading of 6 existing seed schools and rehabilitation of 6 existing old regional grant aided schools. Each new seed school will have a classroom block (4 classrooms) a laboratory block (physics, chemistry and biology labs), a library and administration building, VIP latrines and a water supply system. However, the seed school for the deaf will have an additional classroom block bringing the number of classrooms to eight, a dormitory, kitchen and dining facilities. Upgrading of existing seed schools will involve construction of facilities similar to those at a new seed school. In addition, dormitories for girls will be constructed at 5 selected new seed schools and at 6 existing seed schools being upgraded to serve as centres of excellence. The 6 grant-aided existing secondary schools will each be provided with 2 additional new laboratories a library, as well as full rehabilitation to existing buildings, including water and sanitation facilities.

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(C) Services 4.6.20 The project will fund consultants to provide design and supervision services. The consultants will prepare detailed architectural and engineering designs and tender documents for the 6 grant aided schools to be rehabilitated. The MoES will prepare detailed architectural and engineering designs and tender documents for the all the new seed schools in order to accelerate project start up. The consultants will supervise all the works during construction period up to the end of the maintenance period. 4.6.21 A total of 5 person/months of technical assistance will be provided to assist NCDC conduct the process of reviewing the secondary science and maths curriculum. In-service training of 700 teachers (Maths, Science and Special Needs), secondary school administrators will be organised by the relevant MoES departments. Training will be provided for 1,400 teachers on prevention, guidance and counselling on HIV/AIDS through workshops, events and in Teacher Colleges. Component II: Support to Business, Technical and Vocational Education 4.6.22 This component will assist in the achievement of the government’s aim to develop a more relevant and appropriate national Business, Technical and Vocational Education and Training (BTVET) system. The actions will focus on the review of the BTVET curriculum and the revitalisation of selected key institutions. 4.6.23 Given the wide range of courses on offer across the extensive number of private training institutions, as well as the fewer public ones, the project will contribute to supporting the work of the Uganda Vocational Qualifications Framework (UVQF) secretariat and its collaborators in developing 22 key occupational profiles to the stage of modular curricula for use in BTVET training programmes. The range of target occupations identified by the secretariat is listed in the PID Annex. They have been selected by UVQF technical committees, and have taken into account the findings from labour market surveys including the 2003 Study on Skilled Manpower, as well as the 2002/2003 Education Standards Agency inspection report. 4.6.24 The development of profiles will be done in two phases over a two-year period with one batch of 11 priority occupations processed in the first year and the remaining batch during the following year. Through the organisation of a three-stage series of workshops using the DACUM (Develop a Curriculum) approach, selected technical committees (representing various areas of business and training bodies) will carefully analyse given occupations to determine the tasks and competencies associated with them. Once the competencies have been identified, the specific skills, knowledge and abilities will be determined. This will then be transformed into curricula goals, training and learning activities, recommended instructional resources and detailed assessment criteria. The final output will be Assessment and Training Packages (ATPs) for use in BTVET institutions. The emphasis will be on the development of short modularized courses that are cost-effective, time-efficient and more directly relevant to the acquisition of skills for employment, self-employment and entrepreneurship. 4.6.25 In this process, UVQF will work closely with the Directorate of Industrial Training (DIT). This activity will be closely aligned with the support that the German Development Cooperation KfW is giving to the UVQF in setting up 10 assessment centres at teacher training institutions

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and vocational training institutions. These centres will be open to graduates from both private and public BTVET institutions in need of credible formal assessment and certification of their skills. The outcomes of this process will eventually lead to a harmonisation of training modalities, testing and certification of competences across the sub-sector. 4.6.26 Technical institutes (TI) currently function with very low levels of equipment and resources. The project will rehabilitate and re-equip with upgraded equipment two such institutes, strategically chosen so that they can function as centres of excellence and attract students from a wide catchment area. 4.6.27 The Vocational Training Institute at Jinja will be rehabilitated, re-equipped and strengthened to deliver instructor training in BTVET. This may also make it eligible to serve as an Assessment Centre. At full operational capacity, the VTI will be expected to turn out at least 50 trained BTVET teachers annually. 4.6.28 In view of the significant numbers of untrained instructors in the large number of private BTVET institutions, the project will contribute to the expansion of the scope and scale of the Training-of -Trainers programme initiated by UGAPRIVI with technical assistance from The German Development Service (DED). 4.6.29 Support to HIV/AIDS sensitisation and awareness-building activities in the BTVET sub-sector will be carried out using the strategies and approaches developed by the MoES under its programmes with UNESCO, USAID and the Global Fund. The focus will be on guidance and counseling training for instructors, as well as the mainstreaming of HIV/AIDS awareness activities in all BTVET courses. 4.6.30 The details of the categories of expenditure under the component are as follows: (A) Goods 4.6.31 Equipment and materials will be provided for the newly constructed and rehabilitated workshops for the two technical institutes and Jinja VTI. Basic classroom and office furniture will be procured for the institutions in addition to provision of reference books for the libraries. Equipment lists will be finalised after the completion of the revised curriculum. 4.6.32 1000 Assessment and Training Packages (ATPs) for each of the 22 occupations will be produced and made available to BTVET institutions. 4.6.33 Training materials and teaching aids will be provided for the purposes of the TOT activities under UGAPRIVI. (B) Works 4.6.34 The civil works involve rehabilitation and upgrading Jinja Vocational Training Institute, Madera and Rukungiri Technical Institutes. New buildings at the Jinja VTI will comprise 1 general purpose workshop, 1 building and carpentry workshop, a 4-classroom block, library and administration for the new unit for the training of instructors for BTVET. In addition, 2 new residential buildings of 2 storeys each will be provided for 200 students. The design will cater for separate accommodation for an increasing number of female students, as well as some staff houses. Various existing workshops, administration block, the student hostel and kitchen/dining room will be rehabilitated.

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4.6.35 Madera and Rukungiri will each be provided with the following new facilities: seven workshops, a classroom block, library, a dormitory, kitchen and dining facilities, sanitary facilities. Rehabilitation of existing buildings will be carried out only after rigorous surveys and on the basis of schedules of work designed to upgrade only those facilities which can have a lifespan of at least 30 years after the intervention. (C) Services 4.6.36 Specialists in occupational profiling, instructional development and test item development will be coordinated by the UVQF secretariat to carry out the review and development of a more relevant modularized BTVET curriculum. This will take the form of a series of workshops and production assignments to be carried out over a two-year period. Locally recruited technical assistance will be provided to guide and facilitate the process. 4.6.37 Consultancy services will be utilised in the conduct of the UGAPRIVI programme of up-scaled training–of-trainers activities, as well as the design of training materials and teaching aids. 4.6.38 Professional services from a multi-discipline consulting firm for the 2 two technical institutes and Jinja VTI will include site surveys and a development plan, building condition surveys and measured drawings, designs for rehabilitated, recycled and new facilities, tender documents and supervision. Component III: Project Management 4.6.39 The management of the project will be carried out in accordance with the existing arrangements at the EPD for coordination of projects and interventions funded by EFAG members in support of the ESSP, 2004-2015. These are: The European Union–funded Health Institution Rehabilitation Project, the USAID–funded Basic Education Policy Support (BEPS) Project and GTZ-funded projects. Accordingly, its overall coordinator will be the Principal Economist at the EPD. In addition, Components I and II will have designated coordinators from the departments of Secondary Education and Vocational Training, respectively. 4.6.40 The details of the categories of expenditure under the above component are as follows: (A) Goods 4.6.41 Equipment for project operations consisting of computers/software, printers, photocopier and vehicles will be provided to the EPD and MoES departments serving as component managers. The location of sites across 31 sub-counties in different districts will require adequate logistical means. (D) Operating Costs 4.6.42 This will consist of meeting the salary and operating costs relating to the implementation, monitoring and management of the project by the additional staff that will be mainstreamed into the existing EPD project coordination arrangements. These comprise a Monitoring and Evaluation Officer, Procurement Specialist, a Project Accountant and Assistant, a secretary and 2 drivers as support staff.

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4.7 Environmental Impact 4.7.1 The project has been classified as category II in view of the civil works comprising new construction of single storey small-scale buildings with ample open space in between. The negative aspects would be de-vegetation, soil disturbance leading to erosion and formation of gullies, dust emission and noise. However, these will be easily mitigated by re-vegetation after construction works and the construction of appropriate drainage systems. In addition, the contractor will observe mitigating measures to preserve natural elements on the site and limit all disturbances (dust, noise, etc.) in the perimeter by fencing off work areas. The Environmental and Social Mitigation Plan is presented in Annex VI. 4.7.2 The new and expanded seed secondary school facilities will produce no adverse effects on the environment. The project will make a positive contribution to the environment and to community health through the construction of the improved model of ventilated pit latrines at a ratio of approximately one latrine per 20 pupils. The project will thus have a positive impact on the environment in those areas where existing schools are often without suitable hygienic foul waste disposal systems. 4.7.3 A borehole will be drilled at each new and expanded secondary school site, providing a safe source of drinking water for the school and the surrounding community. Where no connection can be made to mains electricity, the project provides for installation of solar units to provide lighting to communal areas, teaching areas and libraries and to power a number of computers. 4.7.4 Solar energy is a clean source of energy and therefore is not expected to have negative environmental impact. The only potential negative environmental impact may arise from the acids and heavy metals in old batteries when batteries are to be replaced. In Uganda, however, an active battery recycling program is in place whereby old used batteries can be returned to one of the battery manufacturers at a symbolic price of UGX 1000 (approx. US$ 0.60). By ensuring that the old batteries are taken to this recycling facility, any potentially negative environmental impact can be pre-empted. 4.8 Project Costs 4.8.1 The total cost of the project, net of taxes and customs duties, is estimated at UA 22.23 million (USD 32.38 million) of which UA 11.77 million is in foreign exchange and the equivalent of UA 10.46 million is in local currency. For the purpose of costing, all items have been priced in US dollars and converted into Units of Account at the exchange rate applicable at the Bank for the month of July 2005. The considerable local costs are a result of the magnitude of the civil works which attract local costs in terms of labour and building materials. A summary of project cost estimates is presented in Table 4.1 by component and in Table 4.2 by category of expenditure. 4.8.2 The project costs are based on MoES estimates using the latest available tenders for civil works, furniture, equipment and services. A physical contingency of 5% is included in the project costs for all categories of expenditure, other than the civil works for rehabilitation, which has a contingency of 10 %. Price contingencies are estimated at an annual 3.5% inflation rate per

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year on an overall basis for both local costs and foreign exchange costs. The detailed cost estimates are included in the PID and the provisional list of goods and services is shown in Annex III.

Table 4.1 Summary of Project Costs by Component

USD million UA million % of % COMPONENT F.E. L.C. Total F.E. L.C. Total Tot F.E.

I - Increased Access to Secondary Education 12.44 9.76 22.20 8.54 6.70 15.24 69 56II - Support to BTVET 2.17 2.78 4.95 1.49 1.91 3.40 15 44III - Project Coordination and Management 0.26 0.68 0.94 0.18 0.47 0.64 3 28Base Costs 14.87 13.21 28.08 10.21 9.07 19.28 87 53Physical Contingencies 0.86 0.74 1.60 0.59 0.51 1.10 5 54Price Contingencies 1.42 1.27 2.69 0.97 0.88 1.85 8 53TOTAL COSTS 17.15 15.23 32.38 11.77 10.46 22.23 100 53 53% 47% 100% 53% 47% 100%

Table 4.2 Summary of Project Costs by Category of Expenditure

USD million UA million % of % CATEGORY F.E. L.C. Total F.E. L.C. Total Tot F.E.Goods 1.62 2.77 4.40 1.12 1.90 3.02 14 37Works 12.51 8.34 20.85 8.59 5.73 14.31 64 60Services 0.60 1.42 2.02 0.41 0.98 1.39 6 30Operating Costs 0.13 0.68 0.81 0.09 0.47 0.56 3 16Base Costs 14.87 13.21 28.08 10.21 9.07 19.28 87 53Physical Contingencies 0.86 0.74 1.60 0.59 0.51 1.10 5 54Price Contingencies 1.42 1.27 2.69 0.97 0.88 1.85 8 53TOTAL COSTS 17.15 15.23 32.38 11.77 10.46 22.23 100 53 53% 47% 100% 53% 47% 100%

4.9 Sources of Financing and Schedules of Expenditure 4.9.1 The project will be financed jointly by the ADF Grant (UA 20.00 million) and Government of Uganda (UA 2.23 million) as indicated in Table 4.3 below. The ADF Grant will finance 90.0% of the total project cost, and will comprise UA 11.77 million in foreign exchange, representing 53% of total project costs, and UA 8.23 million in local costs, 37% of total project costs. All foreign exchange requirements of the project will be borne by the ADF funds. The ADF will wholly fund the costs of goods and 90% of the costs for works and services. The Government's contribution of UA 2.23 million in local costs, representing 10.0% of the total project cost will partially finance the categories of expenditure for works (10%), services (10%) and operating costs (65%). Table 4.3(a) and 4.3 (b) shows project costs by source of finance and sources of finance category of expenditure respectively.

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Table 4.3 (a) Sources of Finance (UA million)

SOURCE F.E. L.C. TOTAL % of Tot. ADF Grant 11.77 8.23 20.00 90 GOVERNMENT 0.00 2.23 2.23 10 TOTAL 11.77 10.46 22.23 100

Table 4.3 (b) Sources of Finance by Category of Expenditure (UA million)

TOTAL ADF GRANT GOV CATEGORY % % % Amount Of Tot Amount of Cat. Amount of Cat. Goods 3.48 16 3.48 100 0.00 0 Works 16.50 74 14.85 90 1.65 10 Services 1.60 7 1.44 90 0.16 10 Operating Costs 0.65 3 0.23 35 0.42 65 TOTAL 22.23 100 20.00 90 2.23 10

4.9.2 Tables 4.4 and 4.5 below respectively show the expenditure schedule by component and by category of expenditure and source of financing.

Table 4.4 Expenditure Schedule by Component (UA million)

COMPONENT 2006 2007 2008 2009 2010 TOTAL 1.Increased Access to Secondary Education Goods 0.05 0.30 0.99 1.24 0.00 2.57 Works 0.00 1.40 5.61 7.02 0.00 14.03 Services 0.28 0.24 0.23 0.18 0.00 0.94 TOTAL COMPONENT 1 0.33 1.93 6.83 8.44 0.00 17.54 Percentage 2% 11% 39% 48% 0% 100% 2. Support to BTVET Training Goods 0.00 0.41 0.41 0.00 0.00 0.82 Works 0.00 0.25 0.99 1.24 0.00 2.47 Services 0.26 0.31 0.05 0.05 0.00 0.66 TOTAL COMPONENT 2 0.26 0.96 1.44 1.28 0.00 3.95 Percentage 7% 24% 37% 32% 0% 100% 3. Project Coordination and Management Goods 0.10 0.00 0.00 0.00 0.00 0.10 Services 0.00 0.00 0.00 0.00 0.00 0.00 Operating Costs 0.13 0.13 0.13 0.13 0.13 0.65 TOTAL COMPONENT 3 0.23 0.13 0.13 0.13 0.13 0.74 Percentage 30% 17% 17% 17% 17% 100% TOTAL PROJECT 0.82 3.03 8.41 9.85 0.13 22.23 4% 14% 38% 44% 1% 100%

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Table 4.5 Expenditure Schedule by Category and Source of Finance (UA million)

ADF GRANT 2006 2007 2008 2009 2010 TOTAL Goods 0.14 0.70 1.40 1.24 0.00 3.48 Works 0.00 1.49 5.94 7.43 0.00 14.85 Services 0.49 0.49 0.25 0.21 0.00 1.44 Operating Costs 0.05 0.05 0.05 0.05 0.05 0.23 Total 0.68 2.72 7.64 8.92 0.05 20.00 Percentage of Total 3% 14% 38% 45% 0% 100% GOVERNMENT 2006 2007 2008 2009 2010 TOTAL Works 0.00 0.17 0.66 0.83 0.00 1.65 Services 0.05 0.05 0.03 0.02 0.00 0.16 Operating Costs 0.08 0.08 0.08 0.08 0.08 0.42 Total 0.14 0.30 0.77 0.93 0.08 2.23 Percentage of Total 6% 14% 35% 42% 4% 100% T O T A L 2006 2007 2008 2009 2010 TOTAL CATEGORY Goods 0.14 0.70 1.40 1.24 0.00 3.48 Works 0.00 1.65 6.60 8.25 0.00 16.50 Services 0.54 0.54 0.28 0.23 0.00 1.60 Operating Costs 0.13 0.13 0.13 0.13 0.13 0.65 Total 0.82 3.03 8.41 9.85 0.13 22.23 Percentage of Total 4% 14% 38% 44% 1% 100%

5. PROJECT IMPLEMENTATION 5.1 Executing Agency The Ministry of Education and Sport will be the executing agency acting through the Education Planning Department (EPD). Its overall coordinator will be the existing coordinator at the EPD in accordance with the existing arrangements at the EPD for coordination of projects and interventions funded by EFAG members in support of the ESSP (2004-2015). In addition, Components I and II will have designated coordinators from the departments of Secondary Education and BTVET, respectively. For the purposes of additional efficiency and capacity enhancement, the following support staff with experience of service under Education II, to be funded through GoU resources, will be maintained in place to serve within the MoES mainstream: Accountant, assistant accountant, procurement officer, monitoring officer, secretary, messenger and 2 drivers. This range of support staff is warranted by the growing demands of coordination and management of donor supported interventions relating to the ESSP at the MoES. 5.2 Institutional Arrangements 5.2.1 The annual planning of project activities, implementation, monitoring and evaluation will be situated within the institutional and donor coordination provisions put in place under the SWAp in support of the ESSP. Accordingly, as with the interventions of other EFAG donors, the

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project’s expected annual financing inputs to the sector will be included in the Budget Framework Paper drawn up by the Budget Sector Working Group. Monitoring and evaluation information on the project generated by the EPD will be examined by the Monitoring and Evaluation Working Group and be presented at the annual joint GoU/EFAG Education Sector Review (ESR). Both working groups meet every two months and are chaired by the Commissioner - Education Planning. At a higher level, the Education Sector Consultative Committee (ESCC), which meets every two months, will examine the general performance and progressive impact of the project. It is chaired by the Permanent Secretary, MoES and is made up of all Heads of Departments, secretaries of working groups, donors, NGO representatives, other relevant ministries and semi-autonomous MoES-affiliated institutions. The ESCC is responsible for the management and monitoring of the ESSP. 5.2.2 The above arrangements are applicable to all donor interventions in support of the ESSP. They ensure strong government oversight, more perceptible donor consultations and harmonisation of interventions and coordinated financial planning. 5.3 Supervision and Implementation Schedules The project will be implemented over a period of 5 years (60 months) starting from the date of effectiveness of the loan. The implementation schedule in Annex IV gives the indicative timing for the various project and administration activities, and are summarized as follows:

ACTIVITY RESPONSIBLE TARGET DATE AGENCY Administration: Appraisal Mission ADF/GoU Aug2005 Grant Negotiations ADF/GoU Sept. 2005 Grant Approval by Board ADF Nov 2005 General Procurement Notice ADF/GoU Dec 2005 Grant Signature GoU/ADF Dec 2005 Grant Effectiveness GoU/ADF Mar 2006 Project Launching ADB/GoU Mar 2006 Quarterly Progress Reports GoU 2006- 2010 Midterm Review GoU/ADF 2008 Borrower's Project Completion Report GoU 2010 ADB Project Completion Report ADF 2010

5.4 Procurement Arrangements 5.4.1 Procurement arrangements are summarized in Table 5.1 below. All procurement of civil works, goods and acquisition of consulting services financed by the Bank will be in accordance with the Bank's Rules of Procedure for Procurement of Goods and Works or, as appropriate, Rules of Procedure for the Use of Consultants, using the relevant Bank Standard Bidding Documents.

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Table 5.1 Procurement Arrangements

CATEGORIES ICB NCB SHORTLIST* OTHER** TOTAL 1. WORKS 1.1 Construction of new seed schools (25) 9.49 [8.54] 9.49 [8.54] 1.2 Upgrading of 6 existing seed schools 2.20 [1.98] 2.20 [1.98] 1.3 Rehabilitation of 6 existing old schools 2.34 [2.11] 2.34 [2.11] 1.4 Rehab./upgrading of Jinja VTI, Madera and Rukunguri 2.47 [2.23] 2.47 [2.23] 2 GOODS: 2.1 Furniture for facilities at all seed schools 0.96 [0.96] 0.96[0.96] 2.2 Reference books for all seed schools 0.54 [0.54] 0.54[0.54] 2.3 Computers and printers for all seed schools 0.12[0.12] 0.12 [0.12] 2.4 Laboratory equipment and reagents for 37 schools 0.55 [0.55] 0.55[0.55] 2.5 Solar power system at all seed schools 0.30 [0.30] 0.30[0.30] 2.6 Raw Materials for STEPU 0.10 [0.10] 0.10[0.10] 2.7 Equipment for Jinja VTI, Madera and Rukunguri 0.71 [0.71] 0.71[0.71] 2.8 Reference Books for Jinja VTI, Madera and Rukunguri 0.08 [0.08] 0.08[0.08] 2.9 Furniture for Jinja VTI, Madera and Rukunguri Tis 0.02 [0.02] 0.02[0.02] 2.10 General office equipment for Management 0.10 [0.10] 0.10[0.10] 3. SERVICES: 3.1 Design and supervision of Civil Works 0.95 [0.85] 0.95 [0.85] 3.2 In-service training of BTVET teachers 0.14 [0.13] 0.14[0.13] 3.3 Training- of -Trainers under UGAPRIVI 0.10 [0.09] 0.10 [0.09] 3.4 HIV/AIDS Courses 0.05 [0.04] 0.05 [0.04] 3.5 Curriculum review/In-servicing of Secondary teachers 0.18 [0.16] 0.18 [0.16] 3.6 Support to UVQF 0.18 [0.14] 0.18 [0.14] 4. MISCELLANEOUS 4.1 Project Management 0.65 [0.23] 0.65 [0.23] TOTAL 13.23 [12.03] 6.27[5.81] 0.95 [0.85] 1.74 [1.20] 22.23 [20.00]

*** Figures in brackets are amounts financed by [ ] ADF Grant * Shortlist applies to the use of consulting services only. ** Other refers to LIC, International or National Shopping, Government Procedures, Direct Purchase

Table 5.2 Other modes of procurement

Procedure Goods Max per Contract Max in Aggregate International Shopping Solar Power system N/A 0.300

National Shopping Raw materials for STEPU General office equipment for PMU

0.050 0.100

0.100 0.100

Direct Purchase

Training-of-Trainers/ UGRAPIVI HIV/AIDS Courses In-servicing of BTVET teachers Curriculum review/In-servicing of teachers Support to UVQF

N/A N/A N/A N/A

0.040

0.100 0.050 0.140 0.180 0.180

Civil Works

5.4.2 Procurement of civil works for the construction of new seed secondary schools (valued at UA 9.49 million), and rehabilitation and upgrading works to two Technical Institutes and one Vocational Training Institute (valued at UA 2.47 million) in aggregate will be carried out through International Competitive Bidding. Given the widely dispersed locations of the 32 new seed schools, tender packages will be grouped per region. As for the training institutions, the packages will be per institution.

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5.4.3 Procurement of civil works for upgrading of six existing seed schools (valued at UA 2.20 million) and rehabilitation of six old existing schools (valued at UA 2.34 million in aggregate) will be done through National Competitive Bidding (NCB). NCB is chosen because the schools to be upgraded or rehabilitated are widely spread and each package is not likely to exceed UA 0.5 million

Goods 5.4.4 Laboratory equipment and reagents (valued at UA 0.55 million), workshop equipment for the Jinja VTI, Madera TI and Rukunguri TI valued at UA 0.71 million will be procured through International Competitive Bidding. 5.4.5 Procurement of furniture for all seed schools (UA 0.96 million), reference books, textbooks (UA 0.56 million) and computers for seed schools valued at UA 0.12 million will be done through National Competitive Bidding. This mode is chosen as the individual contracts are of such value or quantities that their supply would not likely be of interest to suppliers from outside the Recipient’s country and there are local suppliers sufficiently qualified and in sufficient number to ensure competitive bidding. 5.4.6 Solar equipment valued at UA 0.30 million will be procured through International Shopping and the list of suppliers will be obtained from the WB – ERT programme. Under this programme, there are quality control benefits and discounts. Procurement of raw materials for STEPU (UA 0.10 million) and general office equipment for project management valued at UA 0.10 million will be done through National Shopping because there is an adequate number of national suppliers and agents of qualified foreign suppliers to ensure competitive prices. 5.4.7 Equipment to be partly financed by the Fund will be procured through National Shopping because there is an adequate number of national suppliers and agents of qualified foreign suppliers to ensure competitive prices.

Consulting Services and Training 5.4.8 Professional services of a multi-discipline firm for design and supervision of the civil works, valued at UA 0.95 million, will be done through Short Listing. Training on HIV/AIDS (UA 0.05 million), support to UVQF (UA 0.18 million), in-servicing for BTVET teachers (UA 0.14 million) and in-service training and secondary curriculum review activities UA 0.18 million) will be implemented respectively by the institutionally responsible Department of Secondary Education, the UVQF Secretariat and the Department of BTVET. Support for the Training-of-Trainers of instructors in private vocational institutions (UA 0.11 million) will be implemented by UGAPRIVI on the basis of a signed agreement with the MoES.

Operating Costs 5.4.9 Operating costs for project management in respect of salaries and costs of support staff are fully financed by Government and will be procured in accordance with GOU procedures. National Procedures and Regulations 5.4.10 Uganda’s national procurement laws have been reviewed and determined to be acceptable.

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General Procurement Notice 5.4.11 The text of a General procurement Notice (GPN) has been agreed during negotiations and will be published in the UN Development Business, upon approval by the Board of Directors of the Grant proposal.

Review Procedures 5.4.12 The following documents are subject to review and approval by the Bank before promulgation:

• Specific procurement notices; • Tender documents or requests for proposals from consultants; • Lists, designs, specifications, tender documents with draft contract agreements for

civil works; • Lists, designs, specifications, tender documents with draft contract agreements for

equipment for the schools and training institutes; • Tender evaluation reports including recommendations for contracts award; • Draft contracts if these have been amended from the drafts included in the tender

documents. 5.5 Disbursement Arrangements 5.5.1 The Special Account and the Direct Payment methods will be used. 5.5.2 The Recipient will open and maintain a Special Account (SA) in foreign currency and a Local Currency Account (LCA) at the Bank of Uganda. The SA will be used to deposit part of the grant resources whereas the LCA will receive the GOU’s counterpart funds. The ADF will replenish the SA after the executing agency has provided sufficient justifications for the use of at least 50% of the previous deposit. The opening of the SA and the LCA will be a condition precedent to first disbursement. 5.6 Monitoring and Evaluation The EPD shall, within 30 days following the end of each quarter, submit to the ADB Quarterly Project Progress Reports (QPPR) on all aspects of the project’s implementation in accordance with the established format. In accordance with the joint reporting requirements agreed upon between the EFAG and the MoES, the progress of the project and its attendant impact on the two sub-sectors of Secondary and BTVET will be reported on at each annual Education Sector Review. The EPD will also be required to compile and submit a project completion report in accordance with the format recommended by the Bank. Regular supervision missions and a mid-term review will be carried out at a time and on the basis of terms of reference that will be agreed between the Bank and the GoU. 5.7 Financial Reporting and Auditing 5.7.1 In order to ensure efficient monitoring of project implementation, the PCU will maintain separate accounts for the project, which should correspond to the project’s budget. Detailed accounts concerning expenditure financed by the ADF and the GOU should facilitate the

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identification of expenditure by project component, category of expenditure and source of finance. The accounts should clearly document disbursed amounts from the Fund and the Government by category of expenditure and the status of the revolving fund. The accounts and ledgers will be kept separately from those of other programmes being managed by the EPD. 5.7.2 The project accounts will be audited annually by the Auditor General in accordance with Ugandan Law. The accounts will be presented annually to the Fund, within six months following the end of each financial year. 5.8 Aid Coordination 5.8.1 Under the Sector Wide Approach (SWAp) in place since 1998, donors formed the Education Funding Agencies Group (EFAG) while Government established Working Groups (WGs) and the Education Sector Consultative Committee (ESCC). There are three Working Groups: Monitoring and Evaluation Working Group (M&E WG); Sector Policy and Management Working Group (SPM WG); Budget Sector Working Group (BSWG). These working groups handle crosscutting issues that affect the entire sector and serve as implementation structures of the sector wide approach that bring together stakeholders in a fully participatory manner in planning, decision-making, implementation, monitoring and accountability of developments in the sector. 5.8.2 The M&E WG appraises all departmental recommendations related to project identification, formulation, monitoring, evaluation, research and resource mobilisation within the sector. This is chaired by the Commissioner-Education Planning (C/EP). The group meets once a month. The Budget Sector Working Group handles all matters related to the budget. This includes the preparation of the Budget Framework Paper (BFP), discussion and suggestion of sector allocations and prioritisation of spending areas. It also handles matters of fiduciary assurance together with Auditor General’s Office. The Sector Policy and Management WG (SPM) appraises all sector policy issues and is the highest forum for all technical officers to discuss technical papers and policy reforms. 5.8.3 Apart from the SPM working group, the EFAG participates fully in the other two working groups. Significantly also, the EFAG, alongside civil society organisations and semi-autonomous education-related institutions, is represented on the ESCC. This committee is the strategic planning arm of the Sector Wide Approach. It handles programme design and is responsible for ESSP management and monitoring, WG supervision and coordination, and funding agencies liaison. It is advisory to Top Management and is chaired by the Permanent Secretary/ES and meets every two months. 5.8.4 EFAG members are represented on the M&E WG, SBWG and the ESSC. Furthermore, Government and EFAG have been conducting since April 1999 bi-annual Education sector reviews on progress in implementation of the sector program with a focus on critical issues, actions and priorities undertaken. This has recently been brought down to a Planning and Budget Workshop in March and one Education Sector Review (ESR) in November.

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6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent costs 6.1.1 Additional recurrent costs will be expected to mainly arise from the construction of new seed secondary schools and the expansion of selected seed schools. However, where the project is rehabilitating and re-equipping facilities at secondary level and in the BTVET sub-sector, the implication for increased recurrent costs lies in the maintenance and amortisation of new equipment including the cost of consumables. 6.1.2 Where existing facilities are expanded to increase the student intake, the unit cost per student may actually be reduced if staffing can be made more efficient – teachers’ salaries being the largest recurrent cost element. The increase in usable secondary teaching facilities proposed under the project is estimated to increase access by at least 4,960 student places and to give rise to approximately 300 new teacher positions. These teachers will not necessarily all be new recruits to the profession, some will be upgraded through in-service training, and others will be redeployed from areas having a surplus of teachers. 6.1.3 The maintenance cost for the newly constructed buildings and rehabilitated facilities will amount to approximately UGX 859 million (UA 330,300) per year, based on 2% of capital investment. The recurrent cost for the procured equipment and consumable materials under the project amounts to UGX 244 million (UA 93,711) per year, based on 5% of purchase price. The recurrent costs for additional teachers are UGX 1,944 million. Taking the latest figures for recurrent expenditure on education (2003/4), the total recurrent expenditure for the Secondary and BTVET sub-sectors is given as UGX 96.80 billion. The total addition to recurrent expenditure arising from the project will amount to UGX 3.04 billion, an increase of 3%. 6.1.4 GoU is committed to meeting attendant teacher-related costs through the MTEF. The level of capitation grants has been steadily rising, and maintenance is now considered an acceptable cost to both parents and government. It is projected that UGX 3.6 billion will be raised annually from fees and capitation grants to cover salaries (UGX 3.08 billion) and maintenance of students and facilities (UGX 0.52 billion). 6.1.5 The solar systems that will be installed under the project will require regular check up and maintenance. The only relatively costly maintenance action will involve the replacement of the batteries after 3-5 years. Under the WB-ERT program the MoES is provided with funds for such a purpose with the requirement that schools sign 5 years maintenance agreements with solar PV suppliers. Schools that will benefit from solar energy installations will be encouraged to adopt this approach. A survey carried out by the MoES has indicated that communities and parents are favourable to the idea of contributing to maintenance contract fees. 6.2. Project Sustainability 6.2.1 The most critical element in ensuring project sustainability is the firm commitment, of the Government of Uganda, to ensuring that a substantive part of the national budget is committed to funding the secondary and the BTVET sub-sectors of education. Within the framework of ESSP, budgetary provisions have been made for operation and maintenance of the

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facilities. Furthermore, government has instituted guidelines that require schools to set aside a minimum of 10% of resources from fees and capitation grants for school infrastructure maintenance. 6.2.2 The GoU is running a decentralised system where the Local Governments are fully responsible for implementation of programmes at the district level. In the Education Sector the schools are now managed by School Boards. This in principle has brought in community participation in the management of the schools. There is provision under the project to provide additional incentives for communities to make concrete contributions to the continuous development and maintenance of seed school facilities. Basic tool kits and equipment for carpentry and masonry will be supplied on a one-off basis. This should enhance their capacity to meet the expectation that they will provide basic teacher housing, kitchen facilities and other amenities. 6.2.3 The rehabilitation and re-equipping of BTVET institutions will bring about efficiency and quality to the institutions with expanded capacity to provide relevant and market-responsive programs. Trainees will be charged affordable fees. The availability of re-equipped workshops will allow for regular training-in-production activities that can generate revenue. The institutions will prepare business plans that will indicate how the new equipment will contribute to income generation and meeting running costs. 6.3. Critical Risks and Mitigating Measures

Risks/assumptions Mitigating measures i) EFAG levels of contribution to the financing of the ESSP may not be sustained during the period. This could undermine GoU capacity to meet recurrent costs. Donors may resort to retention of budget support in response to concerns about management of funds.

ii) Together with the risk due to weak capacity at the PPDA, there is a major risk at the local government level where corruption appears rampant due to political influence exerted by the politically appointed tender board members. Tender Board members are nominated by the Chairman of the District Council and approved by the Council.

i) The modality of a three-year rolling funding cycle can allow for advance notice of likely shortfalls. The challenge of the post-UPE period has made PPET become a top priority. GoU is likely to make the necessary adjustments to keep it on track. ii) Under Pillar 1 of the UJAS, certain development partners, including the Bank, will provide support to governance-related reforms which will include improvements to budget management and public financial management. In this regard, the Bank and the WB will be assisting in the adoption and implementation of a Public Expenditure Management program (PEM). Other support will be directed to the strengthening of anti-corruption institutions like Department of Ethics and Integrity and the Inspector General of Government. In accordance with central government practice, the 2004 Country Procurement Assessment Report (CPAR) is proposing that tender board members be nominated by the Chief Administrative Officer and approved by the PS/ST. This risk of resistance to this is expected to be mitigated through dialogue using the PRSC instrument which has so far been the vehicle for monitoring the implementation of

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Risks/assumptions Mitigating measures procurement reforms.

iii) Uncertainty about the ability and willingness of communities to assume the expected role of further developing seed secondary schools.

iii) The demand for secondary education is growing around the country. Despite the relatively limited means of communities in the project areas, there appears to be more of an acceptance of cost-sharing at the secondary school level than under the UPE scenario. Besides, the decentralisation process in the country and the role of district education authorities represent conducive factors for eliciting community participation. The traditional existence of Boards of Governors in secondary schools will facilitate the setting up of similar bodies for seed schools. Besides, there is growing awareness that the “seed school” concept calls for inevitable beneficiary contributions in one way or the other. Furthermore, as the sole public secondary schools in the sub-counties concerned, there is enough understanding that they have to grow in absorptive capacity if the progressive demands from the catchment areas are to be met. Therefore, the expectation that communities will contribute to maintenance and provide basic teacher housing is realistic.

iv) The necessity of reviewing the secondary curriculum has been widely accepted. The need to have an optimal number of subjects has been recognised. Given that the review has yet to start and can be a long process, it is pertinent to consider any major delay as a risk to the project’s focus on quality and relevance improvement. v) The sustainability of the operational costs of the re-equipped TIs and VTI; especially against the background of no guarantee of dramatic increases in GoU funding of BTVET.

iv) The needed improvements in secondary education, that touch on curricula, teacher in-servicing, laboratory provision are considered as major preoccupations of the MoES and the EFAG. Under the on-going ADB II project, 54 laboratories are being constructed in rural girls secondary schools. This is already contributing to a raising of standards in facility provision in the sector. Furthermore, the JICA-supported interventions, agreed with GoU to start this year, in support of teacher training for improved teaching of science and mathematics in two pilot districts constitutes another reason to expect early attention to the curriculum review process. Besides, action on this front has been included under the “other conditions” that need to be fulfilled under this project. v) It is expected that the improved training conditions will lead to increased intakes and more willingness on the part of trainees to accept progressive marginal increases in fees. Secondly, the training-in-production approach will be strongly encouraged as a means of supplementing revenue for the institutions. Furthermore, with the expected progress and outputs from the UVQF secretariat in spearheading the review of BTVET, support from the German Agencies and the ADB, it should be possible for the EFAG and MoES to ensure that BTVET gets budget allocations commensurate with its new areas of development.

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7.0 PROJECT BENEFITS 7.1 Social Impact Analysis

Impact on Gender 7.1.1 The high drop-out rates of girls at primary level and the continued decline at post primary levels are often attributed to: high poverty levels, risks in walking long distances to schools and marrying-off teenage girls, particularly, in rural communities. In order to attract and retain girls living at a certain distance from school, primarily week-night boarding facilities will be provided.. At each of the 6 target existing seed schools and 5 new ones, the project will provide for, by way of example, appropriate dormitory accommodation with live-in matrons for the benefit of at least 80 girls. Girls are expected to constitute an average of 35- 40% of students in these schools.. This provision will also be of benefit to students who are physically-challenged. 7.1.2 Mainly due to traditional and cultural orientations, the enrolment of girls in BTVET programmes is still skewed toward traditionally female oriented courses like tailoring and agriculture to some extent. Therefore, efforts will be made to encourage greater female interest in science and maths, as well as in a wider range of BTVET areas.

7.1.3 The BTVET teacher training programme and the Training of Trainers programme under UGAPRIVI will give particular attention to the need to turn out progressively more female instructors. More female instructors will have a positive influence on the willingness of girls to enter into BTVET programmes. 7.2 Socio-Economic Benefits 7.2.1 The provision of seed schools as centres of excellence will, in addition to increasing access to secondary education, encourage and motivate the youth in rural communities to pursue further education and, thus, enhance their career choices. Improvement in the quality of mathematics, science and technology teaching will enhance the future stock of scientific and technological manpower for the nation. 7.2.2 The health of students and the local community at the new schools will benefit by the provision of clean potable water from the new boreholes at each site. The matrons at the selected schools with dormitories will, after a simple training course, afford an opportunity to introduce a measure of systematic and regular monitoring of children’s health and physical development. This hygiene factor is crucial for girls’ attendance in particular. 7.2.3 The existence of improved BTVET facilities will contribute to stimulating enrolments and in providing improved skill levels. In addition to the public training facilities, private training institutions, the informal sector and individuals in the community will benefit from utilization of The Uganda Vocational Qualifications Framework (UVQF) in training and certification, as well as the training-of-trainers program for instructors. All this will confer standard recognition and value to BTVET certificates, and thereby facilitate utilisation of competences for employment and related earnings.

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7.2.4 The project will give a significant boost to the policy of creating secondary schools in sub-counties which have never had public secondary provision. This will give access to previously disadvantaged would-be students of both sexes in predominantly rural areas. 7.3 Technical Benefits Private training institutions, the informal sector and individuals in the community will benefit from utilization of The Uganda Vocational Qualifications Framework (UVQF) in training and certification. The opportunity to undergo BTVET training in the form of competence-based modules goes with the advantage of optimal and cost-effective training duration. This is likely to make training more attractive and time-efficient for a wide range of potential trainees. Furthermore, trainers in the private sector are expected to seize the opportunity of upgrading the skills of their instructors through the training-of-trainers program. This will go with more providers joining UGAPRIVI and thereby contributing to more uniformity of standards in the sub-sector. 8 CONCLUSIONS, RECOMMENDATIONS AND CONDITIONS

8.1 Conclusions 8.1.1 The project has been designed to contribute to the GoU’s accelerated strategy of reducing the significant bottleneck that now exists at the point of entry into secondary education, resulting from the country’s success in realising universal primary education. Not only will it contribute to increasing absorptive capacity, it also strategically focuses on un-served and underserved communities in rural areas as a way of contributing to narrowing the gap in secondary enrolment. 8.1.2 The dual focus on improving the quality and relevance of secondary education and BTVET will contribute to giving more credible substance to post-primary education, whilst aligning students’ knowledge, skills and aptitudes to the triple options of further education, training or employment. Uganda aspires to evolve into a middle income country in the next twenty years. Such an investment at the mid-point of the education and training system, as well as the establishment of a national qualifications framework, will be most conducive to appropriate skills development at the intermediate and high levels in the short to medium term. 8.1.3. With its focus upon the strengthening of facilities for the rural population, the project will directly address the critical issue of supporting rural development and alleviating poverty. The project is technically feasible and economically and socially desirable. The project fits into the overall pattern of operations financed by other donor partners in support of the ESSP. 8.2 Recommendations and Conditions for Grant Approval It is recommended that an ADF grant not exceeding UA 20.0 million be provided to the Government of Uganda for the purpose of implementing the project, as described in this report, subject to the following conditions:

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A Conditions Precedent to Entry into Force of the Grant Agreement This Protocol Agreement shall enter into force upon signature by the Recipient and the Fund. B. Conditions Precedent to First Disbursement of the Grant The Fund’s obligation to make the first disbursement of the Grant to the Recipient shall be conditional upon the entry into force of this Protocol Agreement and to the fulfilment by the Recipient of the following conditions: The Recipient shall have:

(i) Provided evidence satisfactory to the Fund, of the opening of Special Accounts at the Bank of Uganda on terms and conditions acceptable to the Fund as follows: (a) a foreign currency account for the deposit of proceeds of the Grant; and (b) a local currency account for the deposit by the Recipient of its counterpart funds contribution for the Project. The Bank of Uganda should have provided an irrevocable undertaking to the Fund and which is acceptable to the Fund that: (i) funds held in the special account cannot be used, or blocked for any purpose other than that of the Grant; (ii) prompt monthly statements of account will be issued to the Fund and the Recipient; and (iii) authorized Fund staff and appointed auditors will have access to the Special Accounts and related documents; (para. 5.5.2)

(ii) Provided evidence acceptable to the Fund of the formal designation of (a) all the co-

ordinators for the Project, namely: the Principal Economist at the Education Planning Department as the overall coordinator and the other 2 co-ordinators from the departments of Secondary Education and Business Technical and Vocational Education Training (BTVET) respectively; and (b) the following staff with experience of service under Education II: accountant, assistant accountant procurement officer and monitoring officer. (para. 5.1.1.)

C. Other Conditions. The Recipient shall:

(i) within two (2) years from the date of this Protocol of Agreement, have submitted to the Fund, documentation acceptable to the Fund, which shows the Recipient’s ownership of all the thirty (30) sites for the seed schools and the special school for children with hearing difficulties; (para. 4.6.2)

(ii) no later than 31 March 2006, have submitted to the Fund, a work-plan which should have

been approved by the Fund, for the review and development of revised and improved science, mathematics and technology curricula for Secondary Education which conforms to the Education Sector Strategic Plan (ESSP) objective of reducing the load of subjects and moving towards integration; (para. 4.6.10)

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(iii) no later than 31 March 2006, have submitted to the Fund a work-plan which should have been approved by the Fund, for aligning in-service training of S1-S4 teachers in the target schools with the Japan International Co-operation Agency funded Secondary Science and Mathematics Teachers’ Project; (para. 4.6.11)

(iv) no later than 31 March 2006, submit to the Fund documentation acceptable to the Fund,

which details the finalised roles and responsibilities of participating institutions and bodies (including but not limited to the Department of BTVET, Directorate of Industrial Training, National Curriculum Development Centre and the Permanent Steering Committee) in the development of the revised BTVET curriculum; (para. 4.6.25), and

(v) no later than 30 June 2006, submit to the Fund a signed agreement between the MoES

and the Uganda Association of Private Vocational Institutions (UGAPRIVI) which deals with the organisation, implementation and management of the training of trainers programme for private providers under the Project. Such agreement should have been entered into after having been provided to the Fund for its prior approval. (para. 4.6.28)

ANNEX I

ANNEX II ORGANIZATION CHART OF MOES

Policy Analysis Unit Resource Centre

National Council ofSports

Universities(Vice-chancellors)

Education StandardsAgency

National Council forHigher Education

Uganda National Councilfor UNESCO

Uganda NationalExaminations Board

National CurriculumDevelopment Centre

CommissionerPre primary &

Primary Education

CommisionerTeacher Education

DeputyCoordinator

BTVET

Commissioner BTVET CommisssionerSpecial Education

DeputyCoordinatorSecondary

CommissionerSecondary Education

CommissionerHigher Education

Director of Education Under SecretaryFinance &

Administration

Auxilliary TechnicalPersonnel

Coordinator EPD

CommissionerEducation Planning

Permanent Secretary

Office of the Minister

ANNEX III

PROVISIONAL LIST OF GOODS AND SERVICES USD (mill.) UA (mill.) CO-FINANCIERS (UA mill.) CATEGORY F. E. L. C. TOT F. . L. C. TOT ADF GRANT GOU 1. GOODS 1.1 Furniture for facilities at all seed schools 0.48 0.72 1.20 0.33 0.49 0.82 0.82 1.2 Reference books for all seed schools 0.27 0.41 0.68 0.19 0.28 0.47 0.47 1.3 Computers and printers for all seed schools 0.06 0.09 0.16 0.04 0.06 0.11 0.11 1.4 Laboratory equipment and reagents for 37 schools 0.27 0.41 0.68 0.19 0.28 0.47 0.47 1.5 Solar power system at all seed schools 0.15 0.22 0.37 0.10 0.15 0.26 0.26 1.6 Raw Materials for STEPU 0.05 0.07 0.12 0.03 0.05 0.08 0.08 1.7 Workshops equipment for Jinja VTI, Madera and Rukunguri 0.19 0.74 0.93 0.13 0.51 0.64 0.64 1.8 Reference Books for Jinja VTI, Madera and Rukunguri Tis 0.02 0.08 0.10 0.01 0.06 0.07 0.07 1.9 Furniture for Jinja VTI, Madera and Rukunguri Tis 0.01 0.02 0.03 0.00 0.02 0.02 0.02 1.10 General office equipment for Management 0.13 0.00 0.13 0.09 0.00 0.09 0.09 2. WORKS 2.1 Construction of new seed schools (25) 7.36 4.91 12.27 5.05 3.37 8.42 7.58 0.84 2.2 Upgrading of 6 existing seed schools 1.65 1.10 2.75 1.13 0.76 1.89 1.70 0.19 2.3 Rehabilitation of 6 existing old schools 1.68 1.12 2.80 1.15 0.77 1.92 1.73 0.19 2.4 Rehabilitation & upgrading of Jinja VTI, Madera and Rukunguri TIs 1.82 1.22 3.04 1.25 0.83 2.09 1.88 0.21 3. SERVICES 3.1 Design and supervision of Civil Works 0.42 0.78 1.19 0.29 0.53 0.82 0.74 0.08 3.2 In-service training of BTVET teachers 0.00 0.18 0.18 0.00 0.12 0.12 0.11 0.01 3.3 Support to UGAPRIVI 0.03 0.11 0.13 0.02 0.07 0.09 0.08 0.01 3.4 HIV/AIDS Courses 0.03 0.04 0.07 0.02 0.03 0.04 0.04 0.00 3.5 In-service training of secondary teachers 0.09 0.13 0.22 0.06 0.09 0.15 0.14 0.02 3.6 Support to UVQF 0.05 0.19 0.23 0.03 0.13 0.16 0.14 0.02 4. OPERATING COSTS 4.1 Project Management 0.13 0.68 0.81 0.09 0.47 0.56 0.20 0.36 Base Cost 14.87 13.21 28.08 10.21 9.07 19.28 17.35 1.93 Physical Contingencies 0.86 0.74 1.60 0.59 0.51 1.10 0.99 0.11 Price Contingencies 1.42 1.27 2.69 0.97 0.88 1.85 1.66 0.19 Total Cost 17.15 15.23 32.38 11.77 10.46 22.23 20.00 2.23

ANNEX IV

IMPLEMENTATION SCHEDULE PROJECT YEARS YEAR 1 – 2006 YEAR 2 - 2007 YEAR 3 -2008 YEAR 4 –2009 YEAR 5 – 2010 GOU FINANCIAL YEARS 2006/7 2007/8 2008/9 2009/10

MONTHS Q 3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ACTION BY ACTIVITY ADMINISTRATION Appraisal: July –Aug 2005 BANK Approval: November 2005 BANK Entry into Force GOV/ BANK Project launching L BANK IMPLEMENTATION PERIOD GOV Mid-term review R BANK WORKS Site surveys (31 new seed sites, 6 SS, 1 VTI) CONSULTANTS Building surveys (2 TIs, 6SS, 1 VTI ) CONSULTANTS Design, tender documents, supervision CONSULTANTS Approval of Bidding Documents BANK Tender periods incl. Approvals final inspections CW Contracts Seed Schools Construction periods / defects liability periods CONTRACTORS Rehabilitation works / defects liability periods CONTRACTORS PROCUREMENT OF GOODS (incl. Biddings and Approvals) Furniture & equipment GOV Delivery SUPPLIERS Teaching materials & books GOV Delivery SUPPLIERS SERVICES Consultancy for civil works CONSULTANTS HIV/AIDS courses incl. TA CONSULTANTS Support to UGRAPIVI CONSULTANTS Support to UVQF CONSULTANTS Pre-and in-service training BTVET teachers GOV Curriculum reviews Auditor AD AD AD AD AD GOV SUPERVISION MISSIONS S S S S BANK/GOV PCR BANK/GOV

ANNEX V

DISTRIBUTION OF GRANT BY COMPONENT AND CATEGORY OF EXPENDITURE

Component Category Base Cost Phys. Cont. Price Cont. Total I Goods 2.20 0.11 0.25 2.57 I Works 11.01 0.64 0.99 12.63 I Services 0.73 0.04 0.08 0.84 Sub Total Component I 13.94 0.78 1.32 16.04 II Goods 0.73 0.04 0.05 0.82 II Works 1.88 0.13 0.22 2.22 II Services 0.53 0.03 0.04 0.59 Sub Total Component II 3.13 0.19 0.31 3.63 III Goods 0.09 0.00 0.00 0.10 III Works 0.00 0.00 0.00 0.00 III Operating Costs 0.20 0.01 0.02 0.23 Sub Total Component III 0.28 0.01 0.03 0.32 Total ADF 17.35 0.99 1.66 20.00

ANNEX VI Page 1 of 2

ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN SUMMARY

Project Title:Education III (Support to Post Primary Education and Training) Project No.: Country: Uganda Department: ONSD Division: ONSD.1 Brief description of the project and key environmental and social components:

• Construction of 25 new seed secondary schools, upgrading of 6 existing seed schools and rehabilitation of 6 existing grant aided schools (provide high quality new and rehabilitated facilities, whilst maintaining the grounds).

• Rehabilitation and upgrading of one vocational training institute and two technical institutes

• Procurement of laboratory equipment for secondary schools and workshop equipment for workshops at VTI and TIs.

• In-service training for maths and science teachers and BTVET instructors.

Main environmental and social impact: • Construction and rehabilitation at the new and existing sites will affect the

existing grounds leading to de-vegetation, soil erosion, formation of gullies, dust emission and noise

• Workshops and laboratories will generate waste that may be hazardous.

Enhancement and mitigation programme: • There will be re-vegetation after construction works and construction of

appropriate drainage systems as mitigation measures. • The contractor during construction programme will observe mitigating

measures to preserve natural elements on site and limit disturbance (dust noise etc) in the perimeter by fencing off work areas.

• The designs for the laboratories and workshops will provide for proper waste management and disposal.

Monitoring programme and complementary initiatives:

• The Executing Agency will ensure that construction tender documents safeguard all buildings, and that the existing landscaped grounds are protected and enhanced.

Institutional arrangements and capacity building requirements:

• The EPD will direct all consultants to adhere to guidelines designed to safeguard and improve physical environments.

ANNEX VI Page 2 of 2

Public consultations and disclosure requirements: • The MoES will regularly inform stakeholders during the annual Education

Sector Reviews of the activities of the project. At the district and sub-county levels local education authorities and communities will be provided with information through consultations and sensitisation activities with regard, in particular, to support for seed schools.

Estimated costs: Project environmental components:

• The main environmental improvement falls under the civil works for construction of seed schools and rehabilitation of BTVET facilities with a budget of UA 16.50 million.

• Notably, waste management will be improved through the designed workshops and laboratory systems and construction of VIP latrines as part of the facilities at the seed schools and BTVET institutions being rehabilitated and upgraded.

Implementation schedule and reporting:

• All actions relating to environmental and social management planning are taken into account in the overall project implementation schedule in Annex VI.

ANNEX VII

TABLE OF CONTENTS OF THE PROJECT IMPLEMENTATION DOCUMENT

1 THE PROJECT 1.1 Project scope and objectives 1.2 Project outputs 2 PROJECT DESCRIPTION 2.2 Project cost & financing 3 PROJECT IMPLEMENTATION 3.1 Executing agency 3.2 Institutional arrangements 3.3 Implementation plan 3.4 Procurement arrangements 3.5 National procedures and regulations 3.6 General procurement notice 3.7 Review procedures 3.8 Disbursement arrangements 4 MONITORING AND EVALUATION 4.1 Project reporting 4.2 Financial reporting and auditing Annex 1 Implementation Schedule Annex 2 Organization Chart of Ministry of education Annex 3 Responsibilities of Component Coordinators Annex 4 List of Equipment Annex 5 Project matrix Annex 6 List of target occupations for Development of Assessment and Training

Packages by UVQF

ANNEX VIII

LIST OF BENEFICIARY SCHOOLS AND SUB-COUNTY SITES 1. 6 existing Seed Secondary Schools for expansion.

1. Bagezza Seed Secondary School - Mubende 2. Kidongole Seed Secondary School - Kumi 3. Namugongo Seed Secondary School - Kamuli 4. Mbarara Secondary School - Mbarara 5. Mateete Seed School - Ssembabule 6. Pakhada Seed Secondary School - Nebbi

2. 5 Existing secondary schools for rehabilitation and expansion of existing facilities (i) Masaba S. S. - Sironko (ii) Kabalega S. S. - Masindi (iii) Mpanga S. S. - Kabarole (iv) Kigezi College, Butobero - Kabale (v) Lango College - Lira

3. Sub-Counties Identified for Construction of New Seed Secondary Schools

S/No. District County Sub-County No. of Primary Schools 1 Yumbe Aringa Rumogi 17 2 Pader Aruu Pader Town Council 6 3 Kanungu Kinkizi Rushoroza 15 4 Iganga Waibuga Bukanga 6 5 Soroti Serere Kateta 14 6 Mukono Mukono Kkoome 17 7 Kayunga Baale Galilaya 7 8 Moyo Moyo West Dufile 10 9 Sironko Budadiri Buyobo 14 10 Kamwenge Kamwenge Kamwenge Town 11 11 Gulu Omoro Ongako 9 12 Mubende Buwekula Butoloogo 15 13 Butaleja Bunyole Busaaba 14 Nakasongola Nakasongola Kalongo 5 15 Bukwa Kangasis Kabuyayas 8 16 Apac Kole Ayer 17 17 Manafa Bubulo West Kaato 10 18 Rakai Kooki Kyalungira 15 19 Kyenjojo Kyaka Hapuyo 11 20 Bundibugyo Bwendera Bubandi 23 21 Mpigi Mawokota Mudduuma 17 22 Luwero Katikamu Luwero 20 23 Mbale∗ Bungokho Busoba Children from Eastern Region24 Wakiso Busiro Namayumba 14 25 Hoima Bugahya Bahanika 4

∗ School for Children who are Hard-of-Hearing

ANNEX IX

SUMMARY OF EXISTING BANK GROUP PORTFOLIO IN UGANDA AS AT 15 MARCH 2005 Project Name Source Approval Date Date of Signature Loan/Grant

Approved (UA)

Undisbursed Balance (UA)

Amount Disbursed (UA)

Net Loan/Grant (UA)

Disbursement Ratio

Last Disbursement

Status

A - Agriculture

NORTHWEST SMALLHOLDER AGRICULTURAL DEVELOPMENT ADF 12/15/1999 11/20/2000 17,600,500.00 15,626,629.9 1,973,870.06 17,600,500.00 11.21 12/31/2005 On going

AREA-BASED AGRICULTURAL MODERNISATION PROGRAMME ADF 09/13/2000 05/30/2001 9,671,500.00 9,538,530.25 132,969.75 9,671,500.00 1.37 12/31/2005 On going

FISHERIES DEVELOPMENT PROJECT ADF 06/12/2002 11/14/2002 22,000,000.00 21,938,023.8 61,976.21 22,000,000.00 0.28 01/31/2008 On going

LIVESTOCK PRODUCTIVITY IMPROVEMENT PROJ. ADF 12/04/2002 06/02/2003 23,740,000.00 23,740,000.0 0.00 23,740,000.00 0.00 12/31/2008 On going

LIVESTOCK PRODUCTIVITY IMPROVEMENT PROJ. ADF 12/04/2002 06/02/2003 2,796,000.00 2,796,000.00 0.00 2,796,000.00 0.00 12/31/2008 On going

FARM INCOME ENHANCEMENT AND FOREST CONSE ADF 09/29/2004 31,570,000.00 0.00 0.00 0.00 0.00 On going

FARM INCOME ENHANCEMENT AND FOREST CONSE ADF 09/29/2004 9,850,000.00 0.00 0.00 0.00 0.00 On going

C – Transport

ROADS MAINTENANCE AND UPGRADING PROJECT ADF 09/13/2000 05/30/2001 15,000,000.00 8,141,600.14 6,858,399.86 15,000,000.00 45.72 12/31/2004 On going

D - Public Utilities (Power, Water and Telecom)

URBAN POWER REHABILITATION PROJECT ADF 11/06/1996 09/03/1997 18,000,000.00 6,264,964.99 11,735,035.01 18,000,000.00 65.19 12/30/2004 On going

ALT.ENERGY RESSOURCE ASSESS. AND UTILIZATION STUDY ADF 10/18/2000 11/20/2000 1,650,000.00 465,850.68 1,184,149.32 1,650,000.00 71.77 09/30/2004 On going

Small Towns Water Supply ADF 24/11/2004 01/12/2005 19,110,000.00 19,110,000.00 On going

F – Social

RURAL MICROFINANCE SUPPORT PROJECT (RMSP) ADF 11/24/1999 05/29/2000 13,100,000.00 8,696,306.71 4,403,693.29 13,100,000.00 33.62 12/31/2005 On going

RURAL MICROFINANCE SUPPORT PROJECT (RMSP) ADF 11/24/1999 05/29/2000 1,840,000.00 1,330,694.11 509,305.89 1,840,000.00 27.68 12/31/2005 On going

SUPPORT TO THE HEALTH SECTOR STRATEGIC PLAN ADF 09/13/2000 05/30/2001 30,000,000.00 20,823,796.8 9,176,203.19 30,000,000.00 30.59 06/30/2006 On going

SUPPORT TO THE HEALTH SECTOR STRATEGIC PLAN ADF 09/13/2000 05/30/2001 2,500,000.00 1,318,161.39 1,181,838.61 2,500,000.00 47.27 06/30/2006 On going

SUPPORT TO THE ESIP (EDUCATION II PROJECT) ADF 12/21/2000 05/30/2001 20,000,000.00 12,026,291.3 7,973,708.67 20,000,000.00 39.87 12/31/2006 On going SUPPORT TO THE ESIP (EDUCATION II PROJECT) ADF 12/21/2000 05/30/2001 2,380,000.00 2,217,239.04 162,760.96 2,380,000.00 6.84 12/31/2006 On going

G - Multi-Sector

INSTITUTIONAL SUPPORT TO EXTERNAL AID COORDINATION ADF 12/16/1998 01/12/1999 1,470,000.00 17,504.42 1,452,495.58 1,470,000.00 98.81 03/31/2004 On going

TECHNICAL ASSISTANCE - ILI- UGANDA ADF 05/15/2002 01/06/2003 150,000.00 402.56 149,597.44 150,000.00 99.73 12/31/2003 On going

POVERTY REDUCTION SUPPORT LOAN ADF 10/16/2002 06/02/2003 40,460,000.00 20,255,158.3 20,204,841.71 40,460,000.00 49.94 12/30/2004 On going Institutional Support Project for Good Governance ADF 17/11/2004 01/18/2005 9,000,000.00 9,000,000.00 On going

ANNEX X

PROJECT FORMULATION PROCESS

ACTIVITY DATE 1 Reception of GOU request

January, 2005

2 Project Identification Mission

February 14th- 28th, 2005

3 Internal Working Group (IWG) Meeting

March 16, 2005

4 Country Team Meeting for the Inclusion in the pipeline

March 31st, 2005

5 Project Preparation Mission

April 25th- May 10th, 2005

6 Internal Working Group (IWG) Meeting

June 1st, 2005

7 Inter-Departmental Working Group Meeting

June 10th, 2005

8. Project Appraisal Mission

July 25th- August 8th, 2005

9 Internal Working Group (IWG) Meeting

August 26th, 2005

10 Inter-Departmental Working Group Meeting

September 8th, 2005

11 Senior Management Committee Meeting

September 19th, 2005