“EQUIP” Enabling Quality Improvement Project World Bank Presentation Washington DC May 22 nd 2006

1. “EQUIP” Enabling Quality Improvement Project World Bank Presentation Washington DC May 22nd 2006

2. Part 1: Introduction CfBT Education Trust Private education in India Genesis of EQUIP Part 2: EQUIP Methodology Evidence of Impact Challenges and Issues Content

3. CfBT Education Trust • Non-profit education company • UK HQ, regional offices in Africa, S.Asia, SE Asia and the Middle East • Turnover about £144 million • 2,000 staff • Involved in PPPs in education globally

4. Synopsis of private education in India (1)‘Paucity of Reliable Data’ • Lack of availability of data - data collection of recognized schools only - recognized coverage is patchy - school-returns data is exaggerated to cover up failure - no data collected on student learning (i.e., if achievement data then not correlated to student, teacher and school characteristics) (‘Private and Public Schooling: The India Experience’ -Geeta Kingdon (2005). Mobilizing the Private Sector for Public Education Conference Harvard/WBG)

5. Synopsis of private education in India (2)‘Private as a Percentage of Total in 2 States’

6. Synopsis of private education in India (2) • Typology of schools - government run (centre-state-local) - government-aided (essentially public given salaries paid by state and appointments made by Education Service Commission) - private (recognized) - private (unrecognized)

7. Synopsis of private education in India (4)‘Composition of Private Schools’ • Percentage of school children living below the poverty line enrolled in private schools: - aged 5-10: 14.8% - aged 11-14: 13.8% - aged 15-17: 7.0% MIMAP Survey

8. Proportion of total enrolment increase absorbed by private providers 1978-1993

9. Genesis of EQUIP • 1998-2000 Series of Private Education Sector Studies in West Africa and SSA – WB funded • 2000-2002 Project to Improve Private Education in Andhra Pradesh - CfBT Trust funded • 2003 Market Study of Small and Medium Education Enterprises in Andhra Pradesh and Tamil Nadu - IFC funded • 2004-ongoing HSBC Education Foundation

10. Part 2A : EQUIP Details • Unique features • Specific objectives • Components 1-3 • Process and procedures

11. Enabling Quality Improvement Project 1. Unique Features • Combination of financial assistance and technical support for capacity building in schools • Access to capital for schools serving poor families • Improving access to education • Raising standards by training managers and teachers and upgrading facilities • Helping schools differentiate through reputation for quality • Improving life chances for poor children

12. Enabling Quality Improvement Project 2. Specific Objectives • Financial objectives - To assist commercial Banks to create a financing mechanism for small education enterprises - To provide ‘edupreneurs’ with access to capital at reasonable terms • Technical objectives - To develop an education management solutions package for Non-State Education Providers - To develop a viable and sustainable technical support service

13. Loan Details Range Rp 50,000 - Rp 750,000 or US$ 1,000 –17,000 Tenure: 1 to 4 years Interest Rate: 8-9% Loan Utilisation Infrastructure improvement Computers and equipment Teaching and learning materials Furniture - Terms of Financial Package Transparency in Accounting Unwillingness to share school data Eligibility Criteria Only located in Chennai and Hyderabad Private schools for low income families In existence for 5 years + Registered as a trust or society Recognised by the State Education Department Enabling Quality Improvement ProjectComponent 1: HSBC Education Finance Facility

14. Enabling Quality Improvement ProjectComponent 1: HSBC Education Finance Facility Eligibility Documentation • Bye laws permit commercial borrowing • Copy of Committee Minutes authorising school to avail itself of the loan • Personal guarantee from the promoter or at least one Trustee • Age of promoter to be between 21 and 58 • Minimum net income per annum of Rp. 75,000 (US$ 1,675)

15. The School Must: Be an EQUIP member Not use SIG funds to replay loan Have a School Development Plan Adhere to EQUIP Health and Safety Guidelines The SIG Should: Address Educational Quality Issues Provide deliverables that improve quality of teaching and learning Maximum allocation: After 2 years:US$875 Enabling Quality Improvement ProjectComponent 2: Education Access Scheme

16. S I P M D P CfBTES Q A S T T P E R C E L P Component 3: Whole School Improvement Service

17. Process and Procedure

18. Part 2B : EQUIP Details • Component 4: Impact and assessment • Finances • Lessons learnt

19. Administration & Finance Efficiency of the integrated service Templates or systems for contextualization Growth of the portfolio Degree of the Portfolio ‘at risk’ Education Metrics Improvement in school management Gains in learner achievement Enhanced standard of teaching Better infrastructure Enabling Quality Improvement ProjectComponent 4: Impact and Assessment

20. EMIS (Education Management Information System) • Status of school at time of baseline study • Commitments made by school to reach milestones, and • ongoing progress • CfBT’s technical assistance for school improvement • Details of loan size, repayment track record and interest obligations • Overall progress indicators: - improved management practices - professional development of teachers - better learning outcomes of students - improved image of school in the community

21. EMIS (2) EMIS: monitoring EQUIP • All information stored centrally and web-enabled for remote access by HSBC, CfBT and the respective school • Each school with unique identification number • EMIS processes school data and supports generation of baseline report Status Update • Web-enabled software developed and tested up to School Improvement Plan stage • Reports accessible now by www.cfbtes.com

22. Numbers - EQUIP # of schools applied for loans: 48 # of schools approved for loans: 15 # of schools rejected for loans: 15 # of schools pending: 14 Reason for rejection: - Outside of jurisdiction: 1 - Bad credit history: 6 - Lack of sufficient surplus: 4   - Dropped in process: 8 Top amount disbursed: Rp 750,000 or US$16,750 Bottom amount disbursed: Rp 139,000 or US$3,105 Mean of amounts disbursed: Rp 468,360 or US$10.460 Breakdown for reason for loan: - Infrastructure: 12 - Equipment: 3 EQUIP Impact & Assessment Information‘Numbers – 1 - Finance’

23. School development plans completed: 28 # of schools assessed:33 Management Development programs delivered: 54 hours # of managers taught: 78 Teacher training programs delivered: 1105 hours # of teachers trained: 1311 Parent orientation programs delivered: 18 hours # of parents involved: 900 Student orientation programs delivered: 28 hours # of students impacted: 1000 EQUIP Impact & Assessment Information‘Numbers – 2 – Technical Support’

24. EQUIP Component Costs • Component 1.The HSBC Finance Facility: depends on loan amounts disbursed • Component 2.School Improvement Grant: US$875 per school: depends on # of schools meeting criteria (maximum US$ 44,000) • Component 3.Whole School Improvement Package: US$87.50 allocated per school: includes all WSIP initiatives (maximum allocated US$ 44,000) • Component 4. Monitoring and Evaluation: EMIS, Baseline and Final Evaluation (maximum allocated US$ 44,000) • Component 5.Management and Implementation.CfBT management of the programme over 2 years (maximum allocated US$ 24,000) Total Sum: US$: 156,000

25. EQUIP Unit Costs WSIP Education Technical Service Indicative cost per activity per school delivered over 2 yearsfor 100 schools annually SIP (1 hour pm to monitor) 12,000 MDP (15 hours) 6,000 TTP (60 hours) 12,000 ELP (70 hours) 19,000 Education Learning Centre 1,000 Parent Orientation Program 11,000 Administration Costs (salary – office etc) 7,500 Summary: 700 hours of inputs for Rp 68,500 or (approximately US$ 2.25 per school per hour delivered)

26. WSIP minus EQUIP loan • Number of schools taking up the WSIP service with no loan: 33 • Breakdown of school by type determined by fee charge withFee rate (Rp per month charged) Tier 1 (15,000 to 25,000 pm) # of schools: 2 Tier 2 (7,000 to 14,999 pm) # of schools: 2 Tier 3 (2,500 to 6,999 pm) # of schools: 16 Tier 4 (1,250 to 2,499 pm) # of schools: 13

27. Summary of Impact Survey Parameters • 5 Schools in each group – EQUIP, WSIP and the Control Group • The EQUIP and WSIP schools have had a baseline and impact survey • All three types of schools have similar characteristics: - average size of 200-300 students - catering to low socio economic group - average fee about Rp 100 to 150 or US$2 per month - same geographic locale (the old city) • Baseline survey and Impact survey involved questions to sample sizes of 355 parents, 289 teachers and 739 students • Average of 12 months between conducting of the Baseline and Impact survey

28. Parents Impact Survey DataEvidence of Impact (%)

29. Teachers Impact Survey DataEvidence of Impact (%)

30. Students Impact Survey DataEvidence of Impact (%)

31. Finance Services Terms of the loan Bureaucratic requirements Sharing of information between HSBC and CfBT Technical Services Levels of support to CPD Scheduling the inputs into the school year Changing perceptions for Child Centred Learning environment CHALLENGES AND ISSUES

32. CfBT & HSBC “Thank you” Mlatham@cfbt.com