Concept Paper

Project Number: 39293

June 2012

Democratic Socialist Republic of Sri Lanka:

Education Sector Development Project
 CURRENCY EQUIVALENTS
(as of 30 May 2012)

Currency unit – Sri Lankan rupee/s (SLRe/SLRs)

SLRe1.00 = $0.0076
$1.00 = SLRe131.50

ABBREVIATIONS

A/L – advance level

ADB – Asian Development Bank
DMF – Design and Monitoring Framework
DP – development partner
ESDP – Education Sector Development Project
ESDFP – Education Sector Development Framework and Program
GCE – General Certificate of Education
ICT – information and communications technology
MOE – Ministry of Education
O/L – ordinary level
PEA – provincial education authorities
PPTA – Project Preparatory Technical Assistance
SBA – school cased assessment
SLRM – Sri Lanka Resident Mission

NOTES

(i) The fiscal year (FY) of the government and its agencies ends on 31 December.

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

Vice-President X. Zhao, Operations 1

Director General J. Miranda, South Asia Department (SARD)
Director S. Ra, Human and Social Development Division, SARD

Team leader S. Shakil, Social Sector Specialist, SARD

Team members B. Panth, Lead Education Specialist, SARD
B. Chin, Young Professional, SARD
M. Mukai, Sr. IT Specialist (Business Process Management), OIST
K.M. Tilakaratne, Sr. Implementation Officer, SARD
N. Gunasekera, Sr. Social Development Officer (Gender), SARD
S. Muthugala, Sr. Procurement Officer, SARD
H. Wickremasinghe, Sr. Economics Officer, SARD
J. Perera, Safeguards Officer, SARD
Peer reviewer S. Jagannathan, Senior Education Specialist, RSDD

In preparing any country program or strategy, financing any project, or by making any
designation of or reference to a particular territory or geographic area in this document, the
Asian Development Bank does not intend to make any judgments as to the legal or other status
of any territory or area.
 CONTENTS
Page

I. THE PROJECT 1
A. Rationale 1
B. Impact, Outcome, and Outputs 2
C. Investment and Financing Plans 3
D. Indicative Implementation Arrangements 4
II. TECHNICAL ASSISTANCE 4
III. DUE DILIGENCE REQUIRED 4
IV. PROCESSING PLAN 5
A. Risk Categorization 5
B. Resource Requirements 5
C. Processing Schedule 5
V. KEY ISSUES 5

APPENDIXES
1. Comparison of Financing Modality 6
2. Basic Project Information 7
3. Problem Tree 8
4. Preliminary Design and Monitoring Framework 9
5. Project Preparatory Technical Assistance 12
6. Initial Poverty and Social Analysis 21
 I. THE PROJECT

A. Rationale
1. The Education Sector Development Project (ESDP) is a proposed Multitranche
Financing Facility (MFF) which will finance the Government of Sri Lanka’s Education Sector
Development Framework and Program (ESDFP) 2012-2016. The ESDFP, the key education
strategy document, reflects the vision of the Government “to enable future Sri Lankan citizens
with knowledge, attitudes, skills and values to fulfill the requirements of a modern national and
global knowledge economy” as articulated in the Mahinda Chintana: Vision for the Future.1 The
ESDFP incorporates core outputs from ADB’s long-standing engagement in modernizing Sri
Lanka’s secondary education, and reforms pursued with other multi- and bilateral assistance.2
Using a sector wide phased approach with emphasis on results, the MFF will consolidate the
gains of previous and ongoing investments in general education to move to the next level of
reforms that will prioritize quality and relevance3.

2. Sri Lanka has made commendable gains in basic education 4 during the past two
decades, having achieved universal primary enrollment and gender parity with 99% primary net
enrollment, primary completion rates of 99% for boys and almost 100% for girls, and Grade 9
completion rate of 91% (93% for girls and 89% for boys) up from 78% in 2005.5 Despite the
basic education foundation, inadequate equitable access and quality in secondary schooling
does not equip graduates with relevant skills and aptitude for employability and the knowledge
economy. Senior secondary participation rates are much lower at 65%. Only 83.5% children
ages 5-19 attend school, compared to 99.4% in the 5-14 age bracket. Quality of learning at
secondary level is unsatisfactory with only about 60% students passing the General Certificate
of Education (GCE) O/L and A/L6 exams, with pass rates significantly lower in Mathematics,
Science, and English subjects that are essential for the knowledge economy. School education
is geared towards high stakes examination, and there are insufficient pathways to technical
education and skills training.

3. Important reforms in the general education system over the past several decades have
provided a solid underpinning for Sri Lanka as it transitioned from a low income country
emerging from long-drawn conflict to a middle income country by 2010, moving towards stability
and equitable growth. These include (i) compulsory education until the age of 14; (ii)
empowerment of schools with direct financing to schools for school improvement; (iii)
introduction of school-based assessment; (iv) a range of demand-side interventions including
tuition-free schooling through senior secondary; school uniforms, textbooks and subsidized
public transportation through junior secondary, school meals for primary school children in poor
and disadvantaged area; and (v) accelerated programs for the northern and eastern provinces.

1
Mahinda Chintana: Vision for the Future. Development Policy Framework, Government of Sri Lanka. Ministry of
Finance and Planning, 2010.
2
Major ADB-financed projects in the subsector included Secondary Education Development Project (1993);
Secondary Education Modernization Project (2000); Distance Education Modernization Project (2003); Secondary
Education Modernization Project (2004); and the ongoing Education for Knowledge Society Project.
3
Appendix 1 presents a matrix explaining why MFF is a suitable and appropriate financing modality.
4
The school structure consists of Primary (Grades 1-5); Junior Secondary (Grades 6-9); and Senior Secondary
(Grades 10-13). Basic education comprises Primary and Junior Secondary.
5
Current enrollment data is based on the Ministry of Education Schools Census 2010 and Department of Census
and Statistics, Household Income and Expenditure Survey 2009/10.
6
GCE Ordinary Level is the examination at senior secondary level (Grade 11), and the GCE Advanced Level is the
terminal examination at senior secondary level (Grade 13).
2

4. While these reforms have expanded access, there is widespread acknowledgement

among policy makers that the overall education system needs substantial modernization and
transformation as the country now moves towards increasing economic integration and vision of
a knowledge-based society. In this regard, the main challenges are: student learning outcomes,
especially in science and commerce streams; maintaining equitable access to education,
particularly in rural areas; developing diversified pathways from secondary to post-secondary;
strengthening provincial and local capacity and school autonomy; and increasing financing for
both ICT and other physical infrastructure along with recurring maintenance and basic learning
needs. Introduction of computer-aided learning has led to increased ICT infrastructure, but
more is required for its effective utilization, maintenance and improvement.

5. The ESDFP provides a policy framework for a harmonized and programmatic approach to
external assistance for general education. All development partners’ (DP) assistance is integrated
into ESDFP under the coordination of the Ministry of Education (MOE). .
.Based on the medium term expenditure framework, planned resource allocation for ESDFP 2012-
2016 implementation is approximately SLR133 billion (just over $ 1 billion), with about SLR73
billion (55%) for development expenditures and SLR60 billion (45%) for recurring expenditures.7 A
sector road map will be prepared to serve as a basis for extending the ESDFP for a further five
year period (2017-2021). The ESDFP includes the flagship 1,000 School Program8, which aims to
develop a network of quality secondary schools across the country offering science, arts and
commerce streams up to GCE A/L, and intends to reduce urban-rural differences by developing
rural schools with resources found in good quality urban schools which are more popular among
parents. The 1000 School Program also benefits approximately 5,000 feeder primary schools,
and district and zonal education offices.

6. The project is aligned with the Sri Lanka Country Partnership Strategy for 2012-2016 in
which human resource and knowledge development is a key pillar, with emphasis on supporting
selected strategic areas of ESDFP. It also builds upon lessons of previous operations and
project evaluation. The project will also ensure synergies with the planned technical and
vocational training project to strengthen pathways from secondary to post secondary.

7. The project is proposed to be financed as an MFF using a sector wide approach

focusing on results aligned with the ESDFP. 9 This approach will enable achieving results
incrementally which would in turn build the capacity of the Government to utilize resources on
priority areas and to reduce transaction costs. Rather than crowding out public financing for
education, this approach will leverage an intensified focus for maintaining commitments in the
medium term expenditure framework. The Project Preparatory Technical Assistance (PPTA)
will consider design options based on the sector capacity and fiduciary assessment.

B. Impact, Outcome, and Outputs

8. The expected impact of the ESDP will be school graduates that are better prepared to
meet the labor market requirements. The outcome will be a school system that improves
learning outcomes of secondary school students. The project’s preliminary design and
monitoring framework is in Appendix 4. The MFF will deliver the following four outputs:

7
SLR 55 billion of the SLR 73 billion for development expenditures (75%) is earmarked for the 1,000 School
Program. An amount of SLR 10 billion is allocated for science and IT curriculum. Recurring expenditures focus on
the demand-side interventions and quality programs such as examinations reform and teacher development. To
support the program and financing gaps, the Government is seeking support from development partners.
8
The 1000 School Program is an outcome of the Isuru school concept introduced under the ongoing EKSP.
9
A disbursement–linked indicator approach is proposed. ADB will finance against achievement of certain indicators,
while other development partners are supporting other results areas in the program.
 3

(i) Modernized high quality equitable secondary education.10 This will (a) improve the
examination system by enhancing School Based Assessment (SBA) and integrating
SBA scores in O/L and A/L results; (b) improve curricula and strengthen teaching of
science and technology streams in secondary schools; (c) train facilitators and academic
supervisors at the zonal level, and improve the school visit regimen; (d) strengthen
computer-aided learning by integrating ICT into regular teaching and SBA; and (e)
develop pathways from the secondary school system to vocational training.
(ii) Equitable and efficient school system. 11 This will (a) upgrade school facilities at
secondary schools in disadvantaged provinces; (b) improve school facilities in feeder
primary schools in selected provinces; (c) recruit, train, deploy teachers and staff with
appropriate skills; and (d) support targeted scholarship scheme for underserved students.
(iii) Strengthened school management and autonomy. 12 This will (a) implement a
capacity building program for school leadership; and (b) introduce a financing facility for
school infrastructure maintenance and improvement, including for ICT requirements,
using a public private partnership approach where possible.
(iv) Effective program planning, management and implementation. This output will (a)
provide for effective management of the ESDFP by MOE, including a streamlined
monitoring for the whole education system; (b) support coordination of the sector wide
program; (c) strengthen provincial and zonal education planning and management
capacity; (d) develop an integrated Education Management Information System (EMIS).

C. Investment and Financing Plans

9. The MFF provides $200 million to the ESDFP (2012-2016), with an expected Tranche 1
of $120 million which will finance the facilities improvements, teacher and staff training, quality
improvements, and infrastructure maintenance 13. As the project proposes to disburse upon
achievement of agreed indicators into the education sector budget, the financing plan is
designed to contribute about 20% towards the overall cost of $1 billion of ESDFP. The World
Bank is providing $100 million credit14, and AusAID is considering co-financing. ADB will seek
co-financing from partners such as KOICA, KEXIM, and the Abu Dhabi Fund for Economic
Development with whom preliminary discussions have already taken place.
Table 1: Tentative Financing Plan
Amount Share of
Source ($ million) Total (%)
a
Asian Development Bank 200.00 20
b
Cofinanciers 200.00 20
Government 600.00 60
Total 1000.00 100
a
ADB to provide $200 m. for 5 years; first tranche of $120 million in 2013.
b
World Bank ($100 million); AusAID (TBD); others (to be leveraged by
ADB).
Source: ADB estimates.

10
Output 1 will focus on system-wide quality reforms and programs, impacting the full school system.
11
Output 2 will be targeted in three provinces selected in conjunction with the Ministry of Education, covering both
secondary and feeder primary schools.
12
Some elements of Output 3 will be system-wide, while others will have system-wide impact but piloted or
implemented in phases starting with targeted provinces
13
A detailed implementation and financing plan for Tranche 1 (3 year) will be developed by the PPTA. The second
tranche, approved in 2015, may possibly support the next ESDFP, as the duration of the MFF will be for five years,
spilling over to the next rolling framework. Advance contracting and retroactive financing will be considered.
14
Transforming the School Education System as the Foundation of a Knowledge Hub Project (TSEP). November
2011. World Bank. A collaborative financing agreement will be explored for this parallel financing.
4

D. Indicative Implementation Arrangements

10. The MOE will be the Executing Agency, and the implementing agencies will be the MOE
(including specialized agencies such as the National Institute for Education) and the Provincial
Education Authorities (PEAs) for the targeted provincial interventions. A steering committee
with inter-departmental representation will be established. The PPTA will explore the possibility
of establishing a joint steering committee to oversee DP assistance to the ESDFP, ensure
collaboration among all projects financing the ESDFP (including collaborative and co-financing
arrangements), and coordinate the results indicators under the proposed sector wide approach.
Structured consultations between the MOE and PEAs will be undertaken by the PPTA to ensure
alignment of provincial education programs with the ESDFP, and their adequate reflection in the
design of the project. A Program Management Unit within the MOE’s structure (building upon
the Project Management Office that oversaw loans in secondary education modernization and
EKSP) will provide planning and implementation support. It will coordinate closely with other
MOE units for planning and 1,000 School Program. Financing and reporting arrangements for
the project will be identified and developed by the PPTA, including consideration for joint review
missions with other DPs. Consultant recruitment will be done in accordance with ADB’s
Guidelines on the Use of Consultants (2010, as amended form time to time). Procurement will
be in accordance with ADB Procurement Guidelines (2010, as amended from time to time).

II. TECHNICAL ASSISTANCE

11. A capacity development technical assistance (CDTA) of $400,000 is included as a
component of a combined TA that is being prepared for Sri Lanka to strengthen Capacity and
Implementation Support for Human Development. This will augment the MFF by strengthening
country fiduciary and monitoring systems, especially the capacity of PEAs and zonal staff in
financial management and procurement aspects, and for monitoring, reporting, and verification
of indicators. A PPTA of $550,000 (TASF-others) is also included to undertake due diligence.

III. DUE DILIGENCE REQUIRED

12. Due diligence for the MFF and the first tranche conducted under the PPTA will include:
(i) Policy Framework and Strategic Road Map. The ESDFP and other
government policies will be reviewed to strengthen the sector road map and
financing plan.
(ii) Technical. A matrix of results indicators will be developed as part of the DMF
(for the MFF and also for first tranche) identifying appropriate performance
targets and disbursement linked indicators that the project will support,
sequencing and other DP and government contributions. A sector capacity
assessment, including of MOE, will also form part of the technical due diligence.
(iii) Economic and financial. An economic and financial analysis will be conducted
in accordance with ADB guidelines.
(iv) Governance and Fiduciary Oversight. A fiduciary risk assessment of education
sector will be carried out (in conjunction with other DPs and building upon
existing reviews). A risk assessment and management plan will be prepared to
help strengthen ESDFP’s implementation in the medium term, identifying any
additional policy or institutional reforms required to strengthen the education
sector and its governance, including financial management systems and capacity.
A financing plan will be prepared to identify mechanisms for funding education
sector budget, including fund flow and disbursement mechanisms. Procurement
aspects will be reviewed to ensure compliance with required policies and
procedures, and procurement capacity assessment of the EA conducted.
 5

(v) Poverty and social. Poverty, social and gender analysis will be conducted,
building upon the Ethnic Minority Development Framework and the Gender
Action Plans prepared for the sector under previous projects. The project will
continue to focus on gender and regional equity and inclusive education.
(vi) Safeguards. For the MFF an assessment of environment, involuntary
resettlement impacts, and impacts on indigenous peoples will be conducted, and
appropriate frameworks and plans will be developed. The Initial Poverty and
Social Analysis (IPSA) is given in Appendix 6.
IV. PROCESSING PLAN
A. Risk Categorization
13. The project is considered as low risk because the proposed loan amount is $200 million,
safeguard categories are other than A, and it builds upon ADB’s previous sector experience in a
series of loans in secondary education, and the association with MOE which is a strong
executing agency.

B. Resource Requirements
14. The project processing team comprises staff from SAHS and SLRM. The project team
and estimated time required include Social Sector Specialist/Mission Leader (20 weeks); Lead
Education Specialist (3 weeks); Communications/IT Specialist (4 weeks); Sr. Implementation
Officer (4 weeks); Sr. Procurement Officer (2 weeks); Senior Social Development Officer
(Gender) (2 weeks); and Sr. Economics Officer (2 weeks), Senior Safeguards Officer (3 weeks).
A PPTA is required to develop the project’s detailed design and to conduct due diligence.
Detailed Terms of Reference for the PPTA are in Appendix 5.
C. Processing Schedule
Table 2: Proposed Processing Schedule
Milestones Expected Completion Date
Concept paper approval June 2012
Start of PPTA
st
Fact-finding mission 1 Week of December 2012
Staff Review Meeting 3rd Week of January 2013
Loan negotiations 2nd Week of February 2013
Board consideration End March 2013
Loan effectiveness July 2013
Source: Asian Development Bank.

V. KEY ISSUES
15. Key issues are: (i) the use of a sector wide approach with disbursement linked results
indicators to finance Government’s expenditures using treasury model; (ii) the need for careful
selection, sequencing and phasing of indicators, and coordination with other development
partners. Thorough assessment and due diligence will be carried out during the PPTA, and
close consultation with and participation of Central Operations Services Office, the Controllers
Department, the Office of the General Counsel, and the Strategy and Policy Department will be
sought. A multi-phased and long term approach (using MFF) will reduce the risks of the
complexity of the project. Financing expenditures against achievement of results will reduce
transaction costs associated with large volume of small procurements in the sector and ensure
coordination at the country level with other development partners to leverage results in the
education sector.

COMPARISON OF FINANCING MODALITY FOR THE PROPOSED SRI LANKA EDUCATION SECTOR DEVELOPMENT
PROJECT
Unique issues for the proposed
project
ADB’s support is required for the
Government’s education sector medium-term
expenditure framework and sector strategy
(ESDFP 2012-16), which is a five year rolling
development framework. Financing is
required for the current five year framework,
and likely for the subsequent framework.
ADB wants to signal long term commitment to
ensure achievement of sector outcomes over
a sustained period of time.
The COBP for Sri Lanka includes financing
for $80 million in 2013; and $40 m. in 2014.
ADB’s support is required for financing
government expenditures against
achievement of results. This approach
requires strong capacity for implementation
and monitoring by the national, provincial and
zonal education offices; and improved
processes/practice for procurement and
financial management.
Need for strong coordination among multiple
existing and new development partners.
MFF
MFF approach will enable us to
support the five year sector
framework, and support the
strengthening of a road map
which will underpin the
subsequent five year
framework.
MFF enables us to support a
financing plan that can provide
financing for the duration of
ESDFP 2012-16, and gives the
possibility for outer tranches to
support the next phase of
ESDFP.
Phased approach with the two
to three MFF tranches will allow
for a fiduciary capacity and
monitoring capacity
strengthening plan to be
implemented incrementally.
Provides a platform for ADB to
play strong role for sector
coordination and enhanced
credibility as a long term
partner.
6
Appendix 1
Comparison
Project Loan Program Loan
Will not enable support While there are some policy
over a long term continuing actions that may be required,
rolling framework. majority of the focus of the sector
framework is on delivering
results with specific targets.
Preparing two project loans
within a two year time
period does not make
sense nor give a long term
commitment.
A program loan would allow
budget support for a sector wide
program. However, it would not
provide for financing against
meeting of results/outputs.
Still possible with a project
loan, but will not signal the
same level of commitment
that an MFF would.
 Appendix 2 7

BASIC PROJECT INFORMATION

Aspects Arrangements
Modality MFF (disbursement linked indicators approach)

Financing Asian Development Fund

COBP/RCOBP The project is included in Country Operations Business Plan 2012-2014

Classification Sector (subsectors): education (upper secondary education and

education sector development)
Themes (subthemes): social development (human development), gender
equity (gender in economic opportunities), and capacity building
(institutional development)
Targeting classification: general intervention
Gender mainstreaming category: gender equity theme
Location impact: Rural (high), urban (medium), national (medium)
Safeguards (Tranche 1 & 2): Environment–B Involuntary Resettlement–
B, Indigenous Peoples–B

Risk categorization Low risk

Partnership(s) TBA

Use of a PBA PBA supporting the implementation of the Government’s Education

Sector Development Framework and Program, and related medium term
expenditure framework, in coordination with other development partners.

Parallel PIU Parallel PIU will not be used.

Department and South Asia Department

division Human and Social Development Division

Mission leader and Sofia Shakil, Social Sector Specialist, SAHS/Mission Leader
members Brajesh Panth, Lead Education Specialist, SAHS
Brian Chin, Young Professional, SAHS
Mikio Mukai, Sr. IT Specialist (Business Process Management), OIST
Nelun Gunasekera, Sr. Social Development Officer (Gender), SLRM
Sarath Muthugala, Sr. Procurement Officer, BRM
K.M. Tilakaratne, Sr. Implementation Officer, SLRM
Hasitha Wickremasinghe, Sr. Economics Officer, SLRM
ADB = Asian Development Bank, ADF = Asian Development Fund, Bangladesh Resident Mission = BRM, OCR =
ordinary capital resources, OIID = Infrastructure and Communications Division, PBA = Program based approach, PIU
= project implementation unit, SAHS = Human and Social Development Division, SAOD = Office of the Director
General, SLRM = Sri Lanka Resident Mission.
Source: Asian Development Bank.
 8
PROBLEM TREE

Appendix 3
Graduates ill More than 16%
prepared for youth
subsequent unemployment:
education, training social problems
and work (i.e., low
external efficiency)
Effects

Low participation rates Unsatisfactory learning High internal inefficiency (high Low enrolment (participation) Sustainability of
for quality secondary outcomes (low pass rates in dropout and repetition) further rates at upper secondary level for physical investments
education among subjects critical for knowledge strain the ability of limited Science and other subjects (e.g. ICT
disadvantaged groups, and relevant skills) resources to deliver on essential for preparing students infrastructure) at risk
widening gap between education sector priorities for the knowledge economy
urban and rural

A school system that is inadequate for preparing well rounded youth with
relevant skills for employability Core Problem

Access issues: Inadequate Gaps in teaching: Weak linkages and Insufficient funds at Weak capacity at
Distance to rural learning Lack of qualified unclear pathways school level to provincial and
schools and environment, teachers (esp. in from secondary to manage school zonal level to
parental particularly rural areas and post-secondary and improvement and provide adequate
preference for infrastructure for science subjects); skills training; maintenance; weak support to
“good urban” science teaching; teaching towards training seen as an school-based teachers and
schools inadequate high stakes option for “weaker” management schools; gaps in Causes
modernized examination students and not as education and
learning material a pathway option academic
and limited use of for post-secondary management and
ICT linked to planning capacity
subject learning

ICT = information and communication technology

Source: Asian Development Bank
 Appendix 4 9

PRELIMINARY DESIGN AND MONITORING FRAMEWORK1

Data Sources
Performance Targets and Indicators and Reporting
Design Summary with Baselines2 Mechanisms3 Assumptions and Risks
Impact Assumption
School graduates By 2020, [ ] % increase (female/male) of Enrolment in Skills Economy continues to
better prepared to meet secondary graduates enrolling in higher Training (MYASD) create jobs and require new
the labor market education from [baseline] (2012) and higher level skills
requirements
[ ] % increase (female/male) of secondary Risk
graduates completing skills training from Economic and social
Annual school
[baseline] (2012) conditions could become
census, MOE
unstable
Unemployment rates for youth
(female/male) with O- and A-level Labor statistics,
qualification or skills certificate reduced Labor Force Survey
from [baseline] (2012)
Tracer and impact
studies
Outcome Enrolment rates in science and For all indicators:
Assumption
A school system that commerce in secondary schools in the School census,
improves learning three selected provinces increased by [ MOE ESDFP has robust
outcomes of secondary ]% between 2012 and 2017 methodology for identifying
school students Examination results and targeting secondary
By 2017, [ ] % (male/female) of O- and A- schools to ensure equity of
(NETS)
level science graduates increased from access to quality secondary
[baseline] (2012) education
Project reports
Completion rates (male/female) for
grades 6–11 and 6 - 13 students in Risk
selected provinces increased by [ ]% Quality improvements in
between 2012 and 2017 curriculum and learning
support do not keep pace
Pass rates of GCE O-level and A-level with physical improvements
increased by [ ]% from 2012 [Baseline] to
2017 (Science and Commerce subjects)
Outputs For all indicators: Assumptions
1. Modernized and SBA rolled out/implemented as part of MOE monitoring Government committed to
high quality secondary national examinations (O/L and A/L) and EMIS reports full integration of SBA
education and regularly reported to parents by system and strengthening
2016 of zonal facilitation system

Science and Commerce streams in Ability to identify and recruit

GCE A/L offered at all upgraded sufficient number of zonal
secondary schools by 2017 (year wise facilitators
targets to be agreed) Coordination between
MYASD and MOE on
ICT programs integrated into teaching of developing alternate
mathematics and other key subjects by pathways for students to
2016 further their skills training
and certification
Zonal offices have at least # number of
trained academic facilitators (Annual Risk
values to be agreed, female focus) Resistance from parents on
the broad implementation
By YYYY, frequency of zonal facilitator of SBA system due to

1
The indicative disbursement linked indicators are in bold and would be further reviewed, developed and targets
identified during PPTA
2
Baseline data and targets for all indicators to be established by PPTA (all indicators to include x (baseline) to y
targets)
3
PPTA will identify data source for each indicator when indicator is finalized
 10 Appendix 4

Data Sources
Performance Targets and Indicators and Reporting
Design Summary with Baselines2 Mechanisms3 Assumptions and Risks
visits to schools increased to [x] times per perceived quality issues
month to ensure teacher performance
monitoring
Creation of pathways from secondary
schools to vocational training – x number
of subjects with linkage to technical
streams / qualifications developed
For all indicators: Assumptions
2. Equitable and School buildings and facilities Annual school Project will maintain strict
efficient school system upgraded in [x] secondary schools in census, MOE guidelines on scope of work
accordance with the 1,000 school per school.
program (# of classrooms/facilities) Annual report of
by 2014; and [y] by 2016 upgraded schools, Process for identifying
MOE target secondary and
Teachers and other staff with relevant feeder schools is clear and
skills recruited, trained and deployed Project progress transparent
in a timely manner to upgraded reports
secondary schools (year wise targets
Risks
for # of teachers to be agreed)
Physical interventions not
Facilities improvements completed in at backed with timely
least [x] primary feeder schools in education quality
selected provinces (# of improvements
classrooms/facilities) by 2014; and [y] by
2016 Procurement processes
delayed or counterpart fund
At least # of teachers and other staff with availability may be limited
relevant skills recruited, trained and
deployed in a timely manner to the
upgraded primary schools (gender
targets, yearly targets)
At least # of scholarships awarded to [x]
thousand youth (female/male) from
disadvantaged areas in 2014; [y] in
2015; [z] in 2016
For all indicators: Assumption
3. Strengthened school # of principals and deputy principals Annual school Government committed to
management and completed school leadership program census, MOE strengthening of system
autonomy (at least 50% female) by 2016 including allocation of
Leadership funding for schools
Financing facility for maintenance and program summary
improvement established with private report Risk
sector participation, integrated into Capacity of schools to
Program of School Improvement by Project progress manage planning & finance
2014 reports

Guidelines of the School Management

Committee and School Development
Committee for managing school
operations prepared and published by
2016
 Appendix 4 11

4. Effective program Efficient budget planning and timely For all indicators:
planning, management release of funding by 2016 Approved sector
and implementation framework and
Expenditure reports on sector budget
annual budget
provided on quarterly basis, with (semi-)
document
annual interim unaudited financial
statements on eligible expenditures Interim/unaudited
financial reports
Fiduciary capacity building program for
zonal/provincial and national staff
designed by 2014 and implemented by
mid-2014; continued implementation in Quarterly and
2015, 2016 annual progress
reports from MOE
Online and fully integrated EMIS
platform developed by 2014 and
launched by 2015
Regular (monthly/quarterly) school visits
to be incorporated as part of a broader
EMIS system by YYYY
Activities with Milestones* Inputs
Output 1: Modernized high quality secondary education Loan
1.1 Enhanced SBA: standards and resources for teachers developed ADB: $200 million
(Tranche 1) (indicative)
1.2 Strengthened curriculum for science and commerce streams (Tranche Technical Assistance: $400,000
2) Government: $600 million
1.3 Training of facilitators and academic supervisors (Tranche 1; continue Co/parallel financing: $200 million
Tranche 2)
1.4 Regular monitoring of teachers (Tranche 1)
1.5 ICT integration into subject teaching (Tranche 2)
1.6 Horizontal pathways from O’level to vocational developed (Tranche 2)
Output 2: Equitable and efficient school system
2.1 Beneficiary schools selected and school facilities upgraded
(laboratories, others) (Tranche 1 & 2)
2.2 Teachers recruited and deployed for upgraded secondary and feeder
primary schools (Tranche 1 & 2)
2.3 Beneficiary schools selected and facilities and resources for feeder
primary schools provided (Tranche 1 &2)
2.4 Targeted scholarship scheme developed and implemented (Tranche 1)
Output3: Strengthened provincial and school management
3.1 Training program for school principals and deputy principals developed
and implemented; possible regional training institute supported
(Tranche 1)
3.2 A mechanism/facility to support school infrastructure maintenance and
improvement designed and implemented (with private sector
participation), as part of Program for School Improvement (Tranche 1
developed, Tranche 2 implemented)
Output 4: Effective program planning, management and
implementation
4.1 Provincial, zonal staff training program developed and implemented
(Tranche 1)
4.2 EMIS platform developed (Tranche 1) and implemented (Tranche 2)
4.3 Set up of PMU, consultants selected, procurement plans developed
and implemented and tranche 2 designed (Tranche 1)
4.4 Evaluation and tracer studies conducted (Tranches 1 and 2)
*to be determined based on implementation/operational plan prepared by
PPTA
ADB = Asian Development Bank, EMIS = Education Management Information System, ESDFP = Education Sector
Development Framework and Program, ICT = Information and Communications Technology, MYASD = Ministry of Youth
Affairs and Skills Development, NETS = National Evaluation and Testing Services, PPTA = Project Preparation Technical
Assistance, SBA = School-Based Assessment.
Source: Asian Development Bank.
12 Appendix 5

PROJECT PREPARATORY TECHNICAL ASSISTANCE

A. Justification
1. The education sector has always played an important role in Sri Lanka with both parents
and Government alike emphasizing the need to obtain a high quality education as a priority for
all youth. Whilst there has been success in achieving strong primary education enrolment and
high literacy levels, this foundation must now be harnessed and converted to an asset for the
future. The end of the civil conflict and the anticipated rapid economic growth has made this a
more urgent and necessary condition. In particular, the improvement of survival rates through
secondary education and the increase in relevance of the knowledge and skills to meet the
requirements of the private sector. The Government’s Education Sector Development
Framework and Plan (ESDFP) 2012-2016 envisages a wide-ranging set of initiatives to address
these challenges. The technical assistance (TA) will assess existing challenges and develop a
project that is anchored in the Government’s ESDFP and is suitable for ADB financing in all
dimensions: technical, financial/economic, institutional, sector policy, and safeguards; aligned
with the new country partnership strategy and built on lessons learned from the previous ADB
investments in the education sector in Sri Lanka.

B. Major Outputs and Activities

2. The project preparatory technical assistance (PPTA) will deliver a number of outputs: (i)
identification of priority activities for ADB support under the Multitranche Financing Facility
(MFF), as well as specific results indicators against which disbursement would be made; (ii)
validation of the school mapping process to select schools for the 1,000 school program in the
provinces that will receive ADB support; (iii) technical assessment that includes the design for
the proposed revisions to the school based assessment (SBA) system including a detailed
process mapping of the existing system for collecting and reporting SBA test scores; (iv)
capacity assessment including a review of the provincial education system, that includes the
design and implementation plan for the revision of the Education Management Information
System (EMIS) and detail options for introducing more regular, relevant and timely reporting to
support decision making; and program for strengthening of the zonal offices in providing
classroom-based training support to teachers; (v) design options for provision of school
development grants that encourage autonomy and sustainability at the school level; (vi)
governance assessment and action plan, integrating the fiduciary assessment and capacity
assessment of the education system; (vii) design options for the project’s financing and
disbursement mechanisms to provide financing against meeting of results indicators to the
Government’s own program.

3. The PPTA will also prepare the facility administration manual to guide overall
implementation of the proposed Education Sector Development Program (ESDP) MFF, and the
detailed first tranche design. An economic and financial analysis will be carried out; as well as a
fiduciary risk assessment. The PPTA will also conduct a poverty, social and gender analysis,
building upon the existing frameworks to ensure gender and social equity and inclusion.
Environment and social safeguards reviews will also be conducted, and appropriate frameworks
developed.
 Appendix 5 13

4. The major outputs and activities are summarized in Table A4.1.

Table A4.1: Summary of Major Outputs and Activities
Major Outputs Expected Completion Date

1. Sector Analysis (including road map, strategic context and November 2012
policy framework), final DMF, with disbursement linked
indicators

2. Subproject feasibility reports November 2012

3. Due diligence documents December 2012

4. Detailed project implementation arrangements/Facility December 2012

Administration Manual (with tranche sequencing/financing
plan)

C. Cost Estimate and Proposed Financing Arrangement

5. The PPTA is estimated to cost $550,000 equivalent, of which will be financed on a grant
basis by ADB’s Technical Assistance Special Fund (TASF-Others). The detailed cost estimate
is presented in Table A4.2.
Table A4.2: Cost Estimates and Financing Plan
($'000)
Total
Item Cost
a
A. ADB Financing
1. Consultants
a. Remuneration and per diem
i. International consultants (16 person-months) 250.0
ii. National consultants (22 person-months) 120.0
iii. Pool 50.0
b. International and local travel 50.0
c. Reports and communications 10.0
2. Workshops, training, seminars, and conferences 20.0
3. Surveys 20.0
b
4. Miscellaneous administration and support costs 7.0
5. Contingencies 23.0

Total 550.0
a
Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-Others)
b
Includes the budget for Vehicle Lease for Local Transport for estimated $5,000
Source: ADB estimates

D. Consulting Services

6. The TA will be implemented over a period of 7 months from the fielding of consultants,
which is anticipated in June - July 2012. Consultants will be recruited in accordance with ADBs
Guidelines on the Use of Consultants (2010, as amended from time to time). ADB will recruit
the national consultants through a firm using bio-data proposal for the quality- and cost-based
selection method (quality-cost ratio of 80:20). The international consultants will be recruited on
an individual basis, allowing a flexible approach ensuring that the appropriate expertise for
introducing results based financing approach can be recruited, and that a mix of skills conducive
to working with an education sector program framework approach can be quickly recruited and
14 Appendix 5

deployed. The TA is expected to provide 16 person-months of international (individual) and 24

person-months of national consultants (firm), and another 6 person-months of
international/national pool of consultants to be sourced through the firm. The first output of the
PPTA would be clarity on the DMF, which will then help to sequence the sourcing of
consultants. The summary of the consulting services requirement is provided in Table A4.3
below, and is indicative (will be finalized after the PPTA inception mission).

Table A4.3: Summary of Consulting Services Requirement

Positions Person-Months Required
International
Team Leader/Secondary Education Management Specialist 6
Financial Management, Governance and Fiduciary 3
Specialist18
Education Economics and Financial Assessments 3
School Based Management & Monitoring Specialist 2
Student Testing/Assessment Specialist 2
Sub-total 16
National
Education and Project Management Specialist/Coordinator 5
Education infrastructure and planning specialist 4
Education Quality Specialist 5
Education ICT/MIS Specialist 2
Social Development Specialist 3
Environmental Specialist 2
Procurement Specialist 3
Sub-total 24
Pool of Consultants19 6
TOTAL 30
Source: Asian Development Bank

7. The outline terms of reference for the project preparatory TA consultants are described
in paras. 8 to 24.

8. Team Leader/Secondary Education Management Specialist (international, 6 person-

months). The consultant will have extensive international experience (8-10 years minimum) in
project preparation of similar education sector reform programs and awareness of ADB project
preparation requirements. Additionally, the consultant should be familiar with the Sri Lanka
context and preferably have experience with the Ministry of Education. The consultant should
have an advanced degree in management, economics or other related field, with a track record
in working with ministries of education on sector wide programs, including for preparation of
sector frameworks/road maps. The consultant will work closely with the senior officials within
MOE, with relevant agencies of the MOE, provincial authorities; other relevant agencies and
contracted consultants to provide strategic advice and assistance directed to supporting the
implementation of the ESDFP. The consultant will be responsible for delivering all the PPTA
outputs, ensuring that the final design report is produced in a format suitable to ADB that aligns
with the requirements for the Report and Recommendation of the President to the Board of

18
Should a qualifying expert have skills to undertake the education economics and financial assessments, these two
tasks can be undertaken by one individual, or separately.
19
Pool of consultants (6 person months – both national and international - will be recruited through the firm), and form
part of the firm contract. This will be for design work relating to areas not anticipated and for augmenting the
resources/inputs needed for the various identified areas, including all aspects of due diligence.
 Appendix 5 15

Directors (RRP, including linked documents), as specified under ADB’s Streamlined Business
Processes. S/he will provide leadership to the entire national and international team of
consultants, coordinating their activities and outputs, ensuring close collaboration with Ministry
of Education, and other relevant agencies. Key tasks include:

(i) Assess the ESDFP 2012-2016, and identify appropriate programs and activities
to be financed by the MFF, including development of implementation timelines,
sequencing of activities and reforms, identification of capacity building
requirements, identification of necessary interventions to implement the ESDFP
for the 2012-2016 period;

(ii) Advise the Government on the preparation of the sector roadmap based on a
continuing/rolling ESDFP for the 2017 – 2021 period;

(iii) Finalize the Design and Monitoring Framework, including the Results Indicators
(Disbursement Linked Indicators) Matrix and the overall MFF design and Tranche
1 DMF;

(iv) Advise on coordination with relevant ESDFP stakeholders, including relevant

government departments (national, provincial, zonal), development partners and
private sector representatives;

(v) Take responsibility for the collective work of the consulting team, including (a)
preparation of interim and final reports; (b) conduct of stakeholder consultations,
workshops, analyses and surveys; (c) preparation of the Facility Administration
Manual (FAM); (d) preparation of procurement plan; (e) preparation of
safeguards-related documents; and (f) preparation of MFF financing plan and
disbursement arrangements; and

(vi) administration of workshops, training, seminars and conferences and surveys.

9. Financial Management, Governance and Fiduciary Specialist (international, 3 person-

months). The consultant will have an advanced degree in finance, economics or related field with
extensive experience (8-10 years minimum) in public sector management and fiduciary
assessments. The consultant will work closely with the Education Economist/Financial
Assessments Specialist and will (i) prepare a financial management capacity assessment; (ii)
review the proposed funding arrangements for ESDFP including government system of budget
execution, accounting, and auditing; (iii) undertake fiduciary risk assessment of government
mechanisms for fund releases, cash flow management, financial reporting, internal control for
the school education sector, including delineation and mapping of responsibilities between
central, provincial government levels for financial management of loan proceeds; (iv) assess the
capacity of concerned government agencies for internal control, staffing requirements and skills,
accounting hardware, software and training needs; (v) assess the capacity of external auditors
to provide timely report in accepted auditing standards; (vi) design a fund flow mechanism and
identify appropriate ADB disbursement procedures for the ensuing project, based on an
assessment of EA/Implementing Agency’s capacity, and prepare detailed and disaggregated
cost estimates for all elements of the ESDP, with detailed annotation for the cost tables; (vii)
draw from the analysis of procurement needs to reflect on related risks; and (viii) prepare a risk
mitigation plan for the project to monitor and implement.
16 Appendix 5

10. Education Economics and Financial Assessments (international, 3 person-months).

The consultant will have expertise in economic analysis in the education sector, and will conduct
the economic and financial assessments for Tranche 1 in accordance with ADB’s Financial
Management and Analysis of Projects (2005). The consultant will also be experienced in
costing and procurement under similar projects/programs, and have a mastery of Excel software.
Key tasks include: (i) gathering necessary data to conduct the various required analyses,
including analysis of the fiscal framework for education (the ESDFP); (ii) analyze recent and
projected budgets and expenditures for the education sector, with a detailed analysis of the
secondary education subsector; (iii) assess related policies and strategies and implications for
access, quality and relevance, and overall efficiency of the secondary education subsector; (iv)
assess the magnitude of investments required to implement and sustain key elements of the K
to 12 reform agenda, including any incremental reforms proposed for support under the ESDP;
(v) review existing analytical work and assess supply- and demand-side constraints to education
access and education outcomes, as well as the projected poverty impact of the proposed
Program, including impact of scholarship schedules; (vi) lead the economic and financial
analyses for the proposed Program, including proposed strategies to ensure the financial
sustainability of the program.

11. School Based Management & Monitoring Specialist (international, 2 person-months).

The consultant should have excellent knowledge and experience (at least 8-10 years)in
managing and improving school based management systems in other South Asian countries.
The consultant’s responsibilities will include: (i) assessing the status of policies and strategies
for recruiting and training of school principals and deputy principals; (ii) assessing the quality of
training and development for school principals and deputy principals; (iii) conducting an
assessment of quantitative and qualitative school based financial management; (iv) identifying
good practices that encourage financial sustainability for school based management (v)
developing framework and strategy for improving the current PSI system with better leadership
capacity development and financial autonomy and sustainability of schools; (vi) supporting the
ICT/MIS specialist in understanding information gathering processes and planning reporting
mechanisms to enable efficient decision making.

12. Student Assessment and Curriculum Specialist (international, 2 person-months). The

consultant should have excellent knowledge of student assessment systems particularly
formative assessment systems, and of secondary education curriculum aspects. The consultant
will (i) assess the current system of School Based Assessments with a particular focus on
calibration of testing methodologies, reliability of test scores as an accurate reflection of student
ability and integrity in reporting of test scores; (ii) recommend improvements to the SBA system
including providing examples of materials or process that have been successfully used in other
countries; (iii) assess the existing secondary education curriculum and the O/A level tracks, and
identify aspects of the the curriculum that could enable the development of a pathway from O
level track to technical/vocational education. Working closely with the national quality specialist,
the consultant will prepare an indicative road map to review and reform the curriculum under the
MFF.

13. Education and Project Management Specialist/Coordinator (national (or

international), 5 person-months)20. The consultant should have excellent knowledge of public
sector programs in Sri Lanka (and preferably also in the region), and should possess excellent

20
This role will be played by a Sri Lanka based consultant, but there are several consultants in Sri Lanka who are
working on international rates already with ADB and other DPs. The team does not want to exclude a good
national nor anyone who is classified as international.
 Appendix 5 17

project design and management skills as well as demonstrated familiarity with ADB project
preparation and due diligence. The consultant will also serve as the main coordinator for the
inputs of all the national consultants, and work closely with the international team leader to
ensure timely completion of all tasks. The consultant will work closely with the international
Team Leader to ensure timely and quality due diligence for project design. Additional key tasks
include: (i) designing the infrastructure maintenance facility using public private partnerships,
working closely with the education infrastructure and planning specialist; (ii) preparing a plan for
the strengthening the zonal facilitation system; (iii) identifying areas for improving EMIS and an
action plan for implementation EMIS strengthening over the course of the MFF; (iv) preparation
of the Facility Administration Manual as required by ADB guidelines.

14. Education Infrastructure and Planning Specialist (national, 4 person-months). The

consultant will be experienced in finance and infrastructure development. The consultant will
work with MOE to understand and validate the school mapping exercise that was conducted
under the Government’s 1,000 school program and also support the planning of the new EMIS
system. The consultant’s main responsibilities will include: (i) identifying the nature of the
classroom/school physical requirements in the selected provinces, and assess the
government’s plan for upgrading infrastructure in the selected provinces; (ii) working with the
Environment Specialist, Social Development Specialist and Procurement Specialist in
developing a strategy and roadmap for implementing the facilities upgrade to secondary school
and primary feeder schools in the selected provinces; (iii) assessing the overall cost for
implementing the proposed improvements; (iv) supporting the ICT/MIS specialist in
understanding information gathering processes and planning reporting mechanisms to enable
efficient decision making; and (v) work closely with the Education and Project Management
Specialist on design of the infrastructure maintenance facility.

15. Education Quality Specialist (national, 5 person-months). The consultant will be a

seasoned education sector specialist in Sri Lanka with at least 10 – 12 years of experience, with
excellent knowledge of primary and secondary education, particularly with issues related to the
development of curricula, student testing, school based assessment, and academic support for
teachers. The consultant should have prior knowledge of the education system in Sri Lanka,
and be familiar with all the major agencies related to assessment, curriculum, and the zonal
education system. In addition s/he should posses and intimate knowledge of the ESDFP plan.
Key tasks include: (i) assessing changes required to the secondary education curricula arising
out of the implementation of the ESDFP reform agenda; (ii) review the implementation of the
school-based assessment system and assess areas for improvement for large-scale
implementation; (iii) reviewing teacher professional development aspects, and preparing a plan
for improved school-based teacher development including strengthened zonal academic
facilitation; (iv) for creation of alternate pathways for students, review the curriculum and identity
appropriate action plan for introducing post-O level subject opportunities. For this, the
consultant will be required to work closely with NIE, NETS, and also Ministry of Youth Affairs
and Skills Development to explore pathways to technical education; and with the Ministry of
Higher Education for other post-secondary options such as with the Sri Lanka Institute for
Advanced Technology Education (SLIATE).

17. School Based Management Specialist (national, 2 person-months). The consultant

should have excellent knowledge of the Program for School Improvement (PSI) in Sri Lanka
with specific insight of the school leadership development programs being an advantage. S/he
will work closely with the School Based Management & Monitoring Specialist in assessing the
existing PSI system and developing recommendations for strengthening it (work closely with the
Education/Project Management Specialist and Infrastructure Specialist on the maintenance
18 Appendix 5

facility). The consultant’s responsibilities will include: (i) assessing the status of policies and
strategies for recruiting and training of school principals and deputy principals; (ii) assessing the
quality of training and development for school principals and deputy principals; (iii) conducting
an assessment of quantitative and qualitative school based financial management; (iv)
identifying good practices that encourage financial sustainability for school based management
(v) developing framework and strategy for improving the current PSI system with better
leadership capacity development and financial autonomy and sustainability of schools.

18. Education ICT/EMIS Specialist (national, 2 person-months). The consultant should

posses excellent knowledge of ICT/MIS systems with experience using these in the education
sector. S/he will work closely with the Education Infrastructure and Planning Specialist and the
School Based Management & Monitoring Specialist in developing a framework and strategy for
a implementing a core EMIS system to help manage the administration of the school system.
The consultant will (i) assess and map the current data collection process and reporting
mechanism within the MOE and PEAs; (ii) identify priority areas that can be improved initially to
have the maximum benefit in improving school operations and administration; and (iii) develop a
high level architecture for a system wide EMIS for the schools network.

19. Social Development Specialist (national, 3 person-months). The consultant will have
expertise in assessments of gender, social development and resettlement issues surrounding
females, the poor, and other disadvantaged groups, preferably in the context of the education
sector. S/he will have experience in the use of participatory methodologies to collect and
analyze information and develop relevant action plans, as well as a good understanding of
relevant ADB policies and requirements. The consultant will ensure collection of baseline sex-
disaggregated and ethnic minority-based data to set the appropriate gender targets for inclusion
in the Gender Action Plan, IP framework and DMF. The consultant will work with the Team
Leader, Deputy Team Leader and Education Economics, Finance and Costing Specialist in
conducting demand-side analyses, and will take lead responsibility in preparing poverty and
social analyses and providing related inputs to design of ESDP interventions and
implementation arrangements. The consultant will also have in-depth understanding of
international best practices and policy on involuntary resettlement issues. Substantial
experience in community mobilization and analysis of resettlement issues including a good
understanding of resettlement checklists and guidelines of ADB or other international funding
agencies will be an asset.

20. Specific responsibilities include:

(i) Review ADB’s Handbook on Social Analysis (2007), Poverty Handbook (2006),
and other relevant ADB policies and documents;
(ii) Provide a summary assessment of gender issues in education (in particular in
secondary education) in Sri Lanka, including supply- and demand-side factors
affecting access to secondary education, quality of education, and learning
outcomes; identify priority interventions to address these in the design of the
proposed ESDP; and collect key sex-disaggregated baseline data to be
monitored during project implementation;
(iii) Work with the Education Economics, Finance and Costing Specialist and the
Team Leader to conduct poverty and social analyses, including a disaggregated
analysis of social impacts and benefits of the proposed ESDP, and to develop
the monitoring and evaluation framework;
(iv) Identify priority interventions and procedures to promote participation by and
benefits to women, the poor, and other disadvantaged groups under the
proposed ESDP, including developing the gender action plan.
 Appendix 5 19

(v) Screen all sites identified for school construction to ensure that none of these
sites will entail involuntary resettlement as defined in ADB’s involuntary
resettlement policy and Operations Manual section F2 (OMF2) on involuntary
resettlement;
(vi) Develop a resettlement plan in accordance with ADB’s involuntary resettlement
policy and OMF2 if any of the sites for rehabilitation or expansion will result in
involuntary resettlement; and
(vii) Assess land issues, titles, and the potential impact of the ensuing project.

21. Environment Specialist (national, 2 person-months). Key tasks include: (i) review the
environmental implications of civil works and environmental settings of the proposed ESDP; (ii)
review environmental risks of the proposed ESDP, and, where such risks are present (e.g.,
construction), examine the measures that could be taken during implementation to mitigate the
risks; and (iii) conduct an initial environmental examination or environmental impact analysis for
construction-related proposals for prospective university facilities, in accordance with ADB’s
Environment Policy (2002) and Environmental Assessment Guidelines (2003); (iv) preparation
of environmental assessment and review framework for the MFF, and IEE for the first tranche.
22. Procurement Specialist (national, 3 person-months). The consultant will have
extensive experience in procurement in education and related projects, as well as good
knowledge of Excel. Specific responsibilities include: (i) in coordination with MOE prepare a
tentative list of civil works, furniture, equipment and supplies to be procured under the proposed
ESDP, with focus on large packaged procurement packages (including preparation of bidding
documents and requests for proposal). This should take into account: (a) information on
existing facilities; (b) the requirements of the MOE 1,000 school program; and (c) assessments
of the needs of individual educational institutions; and (ii) prepare a procurement capacity
assessment or update any recent capacity assessments prepared by other donor agencies,
including specific strengthening of the focus on secondary education; (iii) provide training and
other support as needed to address any key procurement capacity gaps in relevant central and
local institutions; and (iv) prepare the procurement plan for the investment components of the
proposed ESDP, in conformity with ADB guidelines.
23. To facilitate the preparation of an effective procurement plan for the ensuing loan/grant
project, in addition to undertaking (or updating) capacity assessment of the EA, the consultant
will examine the national and/or international market capacity in the relevant sectors, suggest
technically and economically sound procurement packaging, and identify, whenever possible, at
least three or more suitable suppliers / manufacturers / contractors for each anticipated ICB or
NCB procurement package under the project. Such identification is purely for the purpose of a
preliminary market capacity assessment and does not represent in any way ADB's endorsement
on or preference to any suppliers/manufacturers mentioned in the consultant's report. The
consultant is required to include a similar disclaimer in its report. The consultant is also required
to include a relationship disclosure statement if the consultant is affiliated to any of the potential
suppliers/manufacturers/contractors identified in the report. If other procurement modes are
recommended for inclusion in the procurement plan such as, for example, LIB or direct
procurement, the consultant should provide reasoned justification for such recommendations.
This approach also applies to the framing of consultant recruitment packages.
24. The consultant will share the conclusions of such market survey findings, the results of
the EA capacity assessment, the proposed cost estimates for all procurement (including
consulting services) packages, and the indicative procurement plan (including proposed prior
and post review thresholds for goods, works and consulting services), with ADB's procurement
division concerned. Depending on comments received from ADB, the consultant may be
20 Appendix 5

required to participate in tripartite discussions between ADB (both sector and procurement
divisions) and, as necessary, the EA and take comments received into account in finalization of
the indicative procurement plan and other deliverables.

E. Implementation Arrangements

25. The executing agency for the PPTA will be the Ministry of Education. The PPTA will be
implemented from July 2012 – February 2013. A steering committee, headed by the Secretary,
Ministry of Education, with participation of the Additional Secretaries from MOE, and other
relevant officials, will provide overall guidance to the PPTA. MOE will also provide, in kind,
qualified counterpart staff and adequate office accommodation for the consultants and working
meetings. Disbursements will be done in accordance with ADB’s Technical Assistance
Disbursement Handbook (May 2010, as amended from time to time).

26. The proposed TA processing and implementation schedule is listed in Table A4.4.

Table A4.4: Technical Assistance Processing and Implementation Schedule

Expected
Major Milestones Completion Date
ADB concept paper clearance (including PPTA) June 2012
Reconnaissance mission June 2012 (upgrade March mission)
PPTA Implementation July 2012-February 2013
PPTA Mid Term Review Mission October 2012
PPTA Draft Final Report December 2012
Loan Fact Finding December 2012
Final Report/Completion February 2012
ADB= Asian Development Bank; PPTA = project preparatory technical assistance.
Source: Asian Development Bank.
 Appendix 6 21

INITIAL POVERTY AND SOCIAL ANALYSIS

Country: Sri Lanka Project Title: Education Sector Development Project

Lending/Financing Multitranche Financing Facility Department/ SAHS/SARD

Modality: Division:

I. POVERTY ISSUES
A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy
The goal of Sri Lanka’s 10-year development framework is to achieve rapid economic growth that will benefit the
entire population and stimulate social development of the country. In line with this goal, the government plans to
make its education sector programs more focused on strengthening skills and the knowledge base, preparing its
human resource base with skills for meeting the labor market requirements. The Education Sector Development
Project (ESDP) will support the Government of Sri Lanka’s Education Sector Development Framework and Program
(ESDFP) 2012-2016 which aims to promote high quality general education that is relevant for the national and global
knowledge economy and society needs of Sri Lanka. ESDP will finance national level reforms and programs to
ensure equitable access to quality education; strengthen sector governance, including sustainability and
management, at the provincial level; and support quality of learning at the school level, including strengthening
information communication and technology (ICT) based education. The ESDFP is aligned with the Government’s
21
main strategy document, the Mahinda Chintana: Vision for the Future , which provides the strategic context for the
equitable development. The Project is also aligned to the Country Partnership Strategy (2012-206), which has a
pillar for Human Resource and Knowledge Development.

The Project will continue to support gender and regional equity, aligned to the Government’s Ethnic Minority
Development Framework and the Gender Action Plan frameworks in place from previous projects. Sri Lanka has
22
made commendable gains in basic education during the past two decades, having achieved universal primary
enrollment with 99% primary net enrollment and gender parity. Primary completion rates are 99% for boys and
23
almost 100% for girls. Grade 9 completion rate is 91% (93% for girls and 89% for boys) up from 78% in 2005 .
Access and quality at the senior secondary level are a concern. While participation rates at the senior secondary
level have been steadily increasing, they remain much lower than primary sector rates at 65%. The percentage of
children age 5-14 currently attending school is 99.4%, whereas only 83.5% of children age 5-19 are currently
attending school. The Project will address the remaining challenges of equity and regional disparities in education
participation and learning outcomes.
B. Targeting Classification
General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2)

C. Poverty Analysis
1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed?

2. What resources are allocated in the PPTA/due diligence?

A Social Development Specialist will be engaged during the PPTA, and undertake social and gender analysis to
make the project design more socially inclusive, participatory and gender-equitable.

3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor
governance, and pro-poor growth)? Please explain.
There is opportunity for pro-poor design that has been identified in the concept paper and which builds on existing
and past experience. The project will target schools in rural areas to reduce the difference in access to quality

21
Mahinda Chintana: Vision for the Future. Development Policy Framework, Government of Sri Lanka. Ministry of
Finance and Planning, 2010.
22
The school structure consists of Primary (Grades1-5); Junior Secondary (Grades 6-9); and Senior Secondary
(Grades 10 – 13). Basic education comprises Primary and Junior Secondary.
23
Current enrollment data is based on the Ministry of Education Schools Census 2010; Department of Census and
Statistics, Household Income and Expenditure Survey 2009/10.
22 Appendix 6

education between urban and rural areas. Targeted scholarships for students from poor families and girls will be
considered.
II. SOCIAL DEVELOPMENT ISSUES
A. Initial Social Analysis
Based on existing information:
1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit
from the project?
The intended primary beneficiaries are children in targeted (three) provinces which will be identified jointly with
government on the basis of ensuring regional and social equity aspects, but the project supports activities that
impact the school system nationwide. This project will continue to support the education sector’s objective of
making access to education inclusive, and has a strong focus on the socially excluded by targeting disadvantaged
minorities and communities. . Other beneficiaries include zonal staff and teachers.

2. What are the potential needs of beneficiaries in relation to the proposed project?
The potential needs of the beneficiaries are access to quality education, availability of relevant and qualified
teachers and facilities to provide them with the basic soft skills and education required for the labor market. Better
skills and mobility are articulated needs of teachers and zonal staff.

3. What are the potential constraints in accessing the proposed benefits and services, and how will the project
address them?
The project is designed to support the Government’s 1000 School Program, which is itself a consolidation effort to
streamline the number of primary schools feeding into a good quality secondary school. During the consolidation
process, there are children studying in primary grades of secondary schools that will be phased out and
enrollments transferred to the feeder primary schools. Similarly, students enrolled in upper grades of existing
primary schools will be transferred to the secondary school. There is a potential constraint and risk of exclusion
due to distances which the project will closely address. For zonal staff and teachers, the project will encompass
capacity building as well as identify strategies for improving the mobility of zonal staff, particularly female.

B. Consultation and Participation

1. Indicate the potential initial stakeholders.
The potential stakeholders include provincial governments, provincial education authorities, and zonal and school
staff. Additionally, parents and school communities are important stakeholders.

2. What type of consultation and participation (C&P) is required during the PPTA or project processing (e.g.,
workshops, community mobilization, involvement of nongovernment organizations and community-based
organizations, etc.)?
Workshops, field visits and focal group discussions with zonal office staff, teachers. will be held during the PPTA.

3. What level of participation is envisaged for project design?

Information sharing Consultation Collaborative decision making Empowerment

4. Will a C&P plan be prepared during the project design for project implementation? Yes No
A separate C&P plan will not be prepared but any framework for environment, IP, IR or GESI to be developed for
the project will include consultation and participation requirements at appropriate level.
C. Gender and Development Proposed Gender Mainstreaming Category: Gender Equity Theme
1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program?
There is gender parity already in education, with girls’ participation rates slightly higher than that of boys. However,
strengthening women’s participation in school management and provincial education planning is a relevant issue for
this project to address. Further, girls’ participation in subjects such as science and commerce is lower at the senior
secondary level, which impacts their readiness for the labor market in higher valued streams.

2. Does the proposed project/program have the potential to promote gender equality and/or women’s
empowerment by improving women’s access to and use of opportunities, services, resources, assets, and
participation in decision making?
Yes No Gender action plan (currently under implementation) will be updated during PPTA.

3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality?
Yes No The project will benefit both male and female students through improvements in the quality
of and access to secondary education.
 Appendix 6 23

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Significant/Limited/ Plan or Other Action
No Impact/Not Required
Issue Nature of Social Issue Known
While physical improvements Unlikely/not Resettlement Framework
Involuntary Resettlement
and additional classrooms known.
and buildings are likely to be
supported, it is unlikely that
any resettlement will arise.
However due diligence will be
conducted in compliance with
ADB’s safeguard policies.
There are ethnic and religious
Indigenous Peoples minorities in Sri Lanka Ethnic Minority Development
(Tamils, Muslims) for which Framework (to be updated)
an Ethnic Minority
Development Framework for
the education sector is
already in place and under
implementation. The project
is designed to ensure
inclusion of the minorities.
The project will enhance No negative
Labor educational opportunities for impact. No Action
Employment women given its emphasis on
Opportunities improving the quality of
Labor Retrenchment secondary education.
Core Labor Standards
No significant issue No impact.
Affordability anticipated. The sector No Action
already includes several
demand-side interventions.
The nation has come out of a
Other Risks and/or long conflict, and there is Ethnic Minority Development
Vulnerabilities peace. Should there be any Framework (to be updated)
HIV/AIDS set back in stability, women
Human Trafficking and minorities become
Others (conflict, vulnerable. The EMDF will
political instability, etc.), capture this risk and the
please specify project will build in measures
to address them in any
eventuality.
IV. PPTA/DUE DILIGENCE RESOURCE REQUIREMENT
1. Do the TOR for the PPTA (or other due diligence) include poverty, social and gender analysis and the relevant
specialist/s?
Yes No

2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender
analysis, and C&P during the PPTA/due diligence? Yes No
Resources are included for gender and social analysis, and the safeguard due diligence. Money has been allocated
for consultations and workshops.