Colegios en Concesión

1. Colegios en Concesión The Public School Concession Model Bogotá, Colombia

2. Context • Recession has led to rise in unemployment, poverty, and income inequality • Search for economic opportunities and peace has led to migration to urban areas, such as Bogotá • With population of 5 million, Bogotá’s outskirts are quickly becoming urbanized • Increasing demand for public services, such as running water, health services, and education has been difficult to meet

3. Education in Colombia • Access and Quality differ greatly across geographic region and income groups • Increasing demand for public schooling • Percentage of public expenditures on education rose from 2.5% to 4.1% over the last decade • Poor management and misallocation of resources: close to 90% of educational funds are spent on salaries, while less than 2% goes to educational materials • Nationwide, 42% of children that enter school complete the basic education cycle

4. Education in Bogotá • Bogotá has 7 of Colombia’s top 10, and 46 of the top 96, performing schools. Fewer than 10 of the top 96 are public. • Bogotá represents 28% of national private matriculation and 10% of public matriculation. • Approximately 720,000 of the 1.4 million children of school age receive schooling through public funding. • Bogotá’s over-14 population has completed on average 9.1 years of schooling; whereas, rest of country averages 6.8.

5. Previous Reforms and the need for a new Approach • Results of previous reforms: good for expanding coverage, mixed results for improving quality. • Assigning publicly paid teachers to private institutions in exchange for a certain number of student places (10,500 students). • Publicly-funded scholarships that parallel voucher system to attend private schools (60,000 students).

6. An Improvement from previous reforms • Results-based evaluation mechanisms (student performance, drop-out rates) • Conducive to Continuity and implementation of long-term projects (15 year contracts) • Clear accountability structure • Targeting underprivileged areas • Targeting school management

7. Key Concepts of a New Model • Knowledge Pooling: concentration of high quality private institutions • Economies of Scale: management structures already in place • Government Commitment: not a short-term financing solution -- 15 year contracts and capital investments. • Not implemented as an effort to cost-save nor is it focused to solve a short-term cash flow problem.

8. The Concession Model Process • Identification of neediest geographical areas • Construction of state-of-the-art facilities • Approximately 10,000 square feet • 800-1200 students • 24 classrooms, recreation room, science laboratory, two art rooms, three technology rooms, a library, and a multi-purpose field • Each approximately US$2.5 million to construct • Offer management rights in public procurement process • Evaluation of Proposals • 30%: Quality of the Proyecto Educativo Institucional (PEI) • 30%: Proposed profile of administrators and teachers • 30%: Quality of bidders, as measured by student performance • 10%: Yearly per-student allocation requested

9. The Contract: the obligations of the Concessionary Aside from maintaining certain standards, Concessionary has complete autonomy over school management: • Obligation to provide educational services to disadvantaged children • Single shift school day (jornada unica) • 15 year contract • Agreement of results-based evaluation • Pre-determined targets for average student achievement in Language and Mathematics, as well as an expected decrease in drop-out rates • Failure to meet targets for two consecutive years, and SED can end contract

10. Monitoring and Evaluation • Three mechanisms: • SED inspects administration of school property • SED supervisory visits to observe adherence to pedagogical norms and standards • SED finances independent evaluation to determine if academic objectives have been met

11. Financing Arrangement • Starting in 1999, planned disbursement of US$294 million over 15 years (~ 6% of SED annual budget, financed with resources of the District of Bogotá) • Average payment of US$506 per child per year (Bogotá averages US$470 city wide) • Payments are made in three phases: • 25% in January • 40% in March • 35% in June

12. Program Time Line • 2000: 16 schools began operating (all preschool and primary) • 2001: 6 new schools • 2002: foreseen opening of 17 new schools • Full operation: 51 schools, reaching 45,000 students (~5% of public schooling in Bogotá)

13. Results and Reactions Results: • Estimated Average Expenditure Break-down for Concessionaries: • 55% to human resources (compared to 90% in public system) • 27% to nutritional support • 5% to textbooks and educational materials • 11% to operational costs Reactions: • From skepticism to optimism • Good relations between Concessionaries and SED • Educators pleased with increased autonomy

14. Motivations for Involvement • Concessionaries (these are established private schools, private school joint ventures, religious communities that run schools, social organizations): • To promote positive non-elitist image • To participate in a project with high social value • Potential financial gains are small and rarely a motivating factor • Educators: • To have increased autonomy, • To be part of an innovative, exciting project

15. Lessons Learned: The Principal-Teacher Relationship • The Principal’s dilemma in teacher management: Positive: Teachers are hired at market salaries on ten-month renewable contracts, giving principals flexibility to demand quality Negative: Teachers have incentive to apply to regular public system openings, where contracts are indefinite and they can work more than one shift.

16. Lessons Learned: the Two Modes of Concession Agreements • One-to-one Experience (one private school taking over administration of one public school) • principal has instructional and administrative burden • Principal receives more personalized, informal coaching • Multiple School Experience (organization or private group taking over administration of several public schools): • Principal is alleviated of administrative burden by centralized administrative support networks • Principal receives institutionalized coaching

17. Conclusions and Remaining Questions • Conclusions • Aligns the goals of the actors • Introduces competition effectively • Increases school autonomy • Positive effect on school environment • Remaining Questions • Whether the Model can be expanded or replicated. Question of context and political will. • Should capital costs be included in concession contract?