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Basic Education Sector Development Program :  Lao People's Dem Rep :Go to Project Summary

Basic Education Sector Development Program :  Lao People's Dem Rep

Timetable  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Loan Name Basic Education Sector Development Program
Country Lao People's Dem Rep
Loan Number 2306
Project Number 32312- 01
Source of Funding/Amount[Approved]
Asian Development Fund US$12.66  million
Asian Development Fund US$8.90  million
Thematic Classification Capacity Development
Social Development
Gender Equity
Sector/Subsector Education / Pre-Primary and Basic Education
Description The objective of the program loan is to support policy actions that contribute to (i) ensuring increased resource mobilization to the education sector including rationalizing budgetary allocations for education; (ii) the design and implementation of an outcome-oriented budgeting and financial management system that will also lead to preparation of a Medium Term Expenditure Framework (MTEF) for education; (iii) providing a more relevant and integrated curriculum for school education; (iv) strengthening teacher management through preparation of a recruitment and deployment plan and through development of a TMIS; and (v). strengthening capacity for decentralized planning These policy actions support expanded access, equity, and quality of education, and will also strengthen capacity of Ministry of Education and the provincial and district level bodies responsible for education administration for more effective decentralized planning, management, financial reporting and budgeting for the school sector. The above policy actions directly complement the activities that will be supported under the components of the project grant. The policy actions also support some broader sector goals, as agreed with the government and other development partners. However, only those policy areas that are directly relevant to Basic Education Sector Development Program activities are identified as conditionalities for tranche release.
Project Outcome
Outcome Progress Toward Outcome
Expanded and equitable access to improved quality and more efficient lower secondary education Gross enrolment rate in lower secondary education was 62.9% in 2011 (from 54.8% in 2005). 44.8% female students were admitted to lower secondary education in 2010 (from 44% in 2005), which indicated increase in the enrolment of female students to 35,000. Around 61,021 students graduated in SY2011/12, from 58,200 in 2005. Transition rae from grade 5 to grade 6 has been pegged at 86.9%, from 78% in 2005, with 82% females and 87% males. Overall, LSE completion rate was 68.8% in SY2011/12 from 40% in 2005. Dropout rate was at 12.6% in SY2011/12.
Implementation Progress
Outputs Status of Implementation Progress (Outputs, Activities and Issues)
Expanded and equitable access to LSE provided in fast-growing, high-demand urban areas and in poorest rural and remote areas
Improved relevance and quality of LSE
Improved capacity for planning, budgeting, management, and delivery of education
On 22 March 2011, MOF confirmed that the total allocated budget for education reached 15.5% of the total government budget for FY2010, after taking into account supplementary allocations for midyear increases in education sector staff and for support to the National University of Laos. At the same time, detailed annual budget figures provided by MOE's Department of Finance confirmed that the requirement regarding increased allocation from the preceding year has been met: the education budget increased both in volume (by 26.3%) and as a share of the total government budget (by 0.1 percentage points) from FY2009. Exemplifying the governments commitment to continued increases in investment in education, the FY2011 budget approved by the National Assembly includes an education sector allocation of 17% of the total government budget, substantially exceeding the program target of 16% in the prior year.
The target under condition 1 (stipulating a 50% share of recurrent expenditures in the total education budget) has also been surpassed. The noted increase in domestic funding for education in recent years has been most pronounced in recurrent expenditures, which stood at 53.2% of the total education budget for FY2010.
Figures provided by MOF and MOE's Department of Finance document MOEs disbursement of 91.8% of the total recurrent budget for FY2010 (along with 96.7% of the investment budget).
Designed and built school buildings for
poor and fast growing BESDP districts. Design includes separate toilets for boys
and girls. Excluding provision of water
supply, construction is 100% complete for both Phase 1 (28 schools) and Phase 2 (144 additional classrooms); schools/classrooms are in-use by LSE students excepting the additional classroom block
at Ban Thong LSE (just completed; to be used from SY2011/12).
Designed and built school buildings for
poor and fast growing BESDP districts. Design includes separate toilets for boys
and girls. Excluding provision of water
supply, construction is 100% complete for both Phase 1 (28 schools) and Phase 2 (144 additional classrooms); schools/classrooms are in-use by LSE students excepting the additional classroom block
at Ban Thong LSE (just completed; to be used from SY2011/12).
All 1,638 scholars received SY2009/10 scholarships in 2
installments totaling US$100 equivalent, with proofs of entire payment signed by the
beneficiaries being carefully verified by DEBs, PES, and finally IEC.

For SY2010/11 scholarships, the first semester grant (in the amount of LAK410,000
per scholar, denominated in LAK to avoid exchange rate fluctuations) was transferred to
PES in all 13 participating provinces on 23 November 2010 and had been fully liquidated
(including confirmation of receipt by all scholars) prior to the May 2011 review mission. For
the second semester grant for SY2010/11, DOF transferred funds to all 13 PES on 17
February 2011. To expedite
progress, in late May through mid-June 2011, IEC conducted monitoring visits to 4 provinces
experiencing some difficulties in LSSGP administration (Champassak, Savannakhet, Luang
Namtha, and Luang Prabang). Partly as a result of such monitoring, IEC confirmed that
second semester grants had now been transferred to all 1,638 scholars and the fully
liquidated, including (i) first-stage liquidation, wherein PES documents to DOF fund transfer to student accounts; and (ii) final liquidation, wherein IEC verifies confirmation of final
documentation including student signatures confirming their receipt of the entire amount.
Based on confirmed PES and DEB reports and replacements endorsed by IEC and
the PMU to date, out of the original list of 1,638 scholars (of whom 841 or 51.3% were girls),
IEC reported that (i) to date 215 initially listed scholars (105 girls and 110 boys) had been
reported by PES to have dropped out from the LSSGP, including 121 children (60 girls and
61 boys) who had never enrolled in M1 and/or otherwise exited LSSGP before the issuance
of the first round of grants in SY2009/10) and could not be convinced to return; (ii) IEC has
endorsed replacements for all of these dropouts, with all replacements being drawn from
other children on an original reserve list. Based on the 215 replacements approved by IEC
and the PMU to date, the revised number of recipients is 847 girls (51.7%) and 791 boys
(48.3%). The SY2010/11 Scholarship Manual includes an explicit gender-related
requirement within the guidelines on handling any further dropouts: any girl dropout must be
replaced by a girl on the original reserve list, while a boy dropout may be replaced by either
a boy or girl from the reserve list. The Mission appreciated IECs effective enforcement of
this rule, which has resulted in a slight increase in the share of girls.
Supported some workshops for the preparation of an integrated primary curriculum.

The draft of USE curriculum from M5 to M7 was revised in accordance with the expansion of LSE Curriculum focusing in two options: i)-General Education and ii)- vocational Education. The RIES and collaborating institutions under the MOE has drafted revisions to the Upper Secondary Education (USE) curriculum, this time, with more inputs from the demand (industries) side, including feedback from the Ministry of Labor, Ministry of Industry and Trade, the Ministry of Planning and Investments, and private sector as well through the series of participatory DACUM (Developing a Curriculum) workshops in order to achieve closer alignment to Lao PDRs national and regional development strategy. The new Upper Secondary Education (USE) Curriculum has been revised to respond to Lao PDRs emerging socio-economic context amid global developments and has thus been approved by the Committee for the Approval of Curriculum and Instructional Materials (CACIM) and endorsed by the Minister of Education.
The LSE curriculum from M1 to M4 was revised in accordance with the Education Reform Strategy extending lower secondary education from 3 years to 4 years. The new LSE curriculum reflects clear learning outcomes and has given more learner-centered emphasis.
MOE has been provided with the initial draft of noted inputs on the 4-year LSE learning assessment framework on 11 May 2011. The consultants will further develop the draft based on comments to be collected from various stakeholders. The revised draft will be submitted by end of August 2011. It is expected that ESDP will finalize the document into policy decree in close collaboration with various stakeholders.
The Prime Minister's Office approved on
9 September 2010 (Decree of the Prime Minister
#389) the Teacher Development and Management
Policy Framework and Action Plan for 20102015.
On 16 March 2011, the MOE minister issued a
directive (Directive of the Ministry of Education #182)
that related interim guidelines be used by provincial
education offices and teacher education institutions
in implementing the Teacher Development and
Management Policy Framework and Action Plan.
The MOE has successfully accomplished the training of 32 master trainers at central level (11 females), 476 master trainers at provincial level (155 females) and 4,033 M1 teachers (1,834 females); with a total of 4,541 teachers, covering 50% of all M1 teachers nationwide. Training included more learner-centered teaching techniques/approaches as well as orientation on the fresh content/innovations contained in the new learning materials.

The training plan has been enhanced from the original plan (during project design) which intended to train only 5,373 teachers in 50 districts in the target provinces. Preparations are now undergoing to train an additional 4,000 M2 teachers before school year 2011-2012 begins in September of this year. Compared to the initial plan, BESDP can train 4,200 teachers more.
Compared to the initial plan, BESDP now targets to train 8,541 which is 47% more than the original target.
ICT equipment and other materials have now been provided to 10 TEIs and are in-use. In addition to provision of summary information on changes under the revised LSE curriculum, and staff were and will be also familiarized through their roles as trainers in the noted trainings for M1 and now M2 teachers.
ICT equipment and other materials have now been provided to
10 TEIs and are in-use. In addition to provision of summary information on changes under
the revised LSE curriculum, and staff were and will be also familiarized through their roles as
trainers in the noted trainings for M1 and now M2 teachers.
44. Agreed Actions. The BESDP Team has conducted various discussions and schoollevel
visits to ascertain how best to meet needs for provision of equipment and materials to
the noted 28 new schools and 109 other LSE schools, in view of tight constraints in
remaining Project funds. The Mission discussed an initial proposal submitted recently, and
requested the BESDP Team to coordinate with DSE and other relevant parties to resubmit
an augmented proposal by end May 2011, incorporating further information regarding the
prioritization of package contentsthe proposal will also include an update or confirmation
of the proposed overall procurement plan for the remainder of the project.
Regarding the EDGP school-level grant program, implementation of EDGPs first 2
components (supporting consumable items for teaching and learning, and minor repairs and
maintenance, respectively) also commenced in SY2009/10 with the establishment of
student-parent associations (SPAs) in each of the 96 participating schools, as per the
Grant Agreement and the EDGP Manual endorsed by ADB.
The new financial management
system is a methodology for quarterly,
annual, and 3-year budgeting, based on the use of
better budget formats and processes developed with
Basic Education Sector Development Program
(program) support. An attached MOE directive
(Directive of the Ministry of Education #265) assigns
relevant departments to provide training and other
support implementation nationwide, starting from FY
As part of broader reforms to develop and introduce
an education sector medium-term expenditure
framework (MTEF; see below), MOE approved on 29
March 2010 (Agreement of the Ministry of Education
#263) the use of the Planning and Budgeting
Manual, including its detailed budgeting submanual.
The Education Sector MTEF has been submitted to the MOF for the approval in October, 2010. The MOF considered this as a milestone with MOE as the first ministry to prepare its MTEF. DOF is in the process of updating its MTEF per April 2011 request from MOF.

DOF is now in the process of improving our accounting system, financial management and monitoring systems.
Trained finance staff of DOF on setting up monitoring system, reporting on expenditure monitoring and the preparation of forms and outcome oriented budget process.
Following prior progress reviewed in detail during the MTR
(and discussed in the MOU regarding policy loan targets T3.7 and T3.8), MOE formally
endorsed to MOF on 29 March 2011 a national Education Sector Medium Term Expenditure
Framework, 20102013, in fulfillment of a related tranche 3 policy conditions under BESDPs
policy loan. In terms of the 3 provincial pilots, governors from Savannakhet and
Luang Namtha have endorsed to central MOF 3-year medium-term provincial education
plans (MTPEPs, the provincial analogue of the education sector MTEF) developed under the
pilot, and these submissions would imply substantial increases in projected allocations for
education. The Mission was also informed that Attapeus MTPEP was also in the late-stage
process of approval. Additionally, training has also been completed for all 14 remaining
provinces on MTEF processes and provincial preparation of medium-term provincial
education plans (MTPEPs).
In November 2009, MOE issued Decree 115, revising the
regulation on the management of MOE assets, in compliance with a second tranche policy
condition. The revised regulation covers physical assets as well as the distribution and
management of textbooks and learning materials, and also includes provisions for the use
and rental of education facilities: potentially important for promoting potential publicprivate
partnerships and new cost-recovery modes at the local level. BESDP also supported
development of related software (a computerized asset management system [CAMS]) to
help operationalize the regulation.
Being undertaken. Relevant training conducted to support project initiatives.
Geographical Location Nationwide in focus (policy based program loan): see also linked Grant 0069 LAO
Safeguard Categories Safeguard Categories explained (Launches new browser window)
  Environment C
  Resettlement C
  Indigenous People A
Responsible ADB Officer Christopher A. Spohr
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Human and Social Development Division, SERD
Concept Clearance 30 Aug 2005
Fact-finding 24 Apr 2006 to 05 May 2006
Appraisal 24 Jul 2006 to 02 Aug 2006
Board Approval 20 Dec 2006
Loan No. Approval Signing Effectivity Original Revised Actual
2306-LAO 20 Dec 06 21 Mar 07 29 Oct 07 30 Apr 10 30 Jun 11 08 Jun 11

Financing Plan Top Loan Utilization
  TOTAL ( Amount in US$ million)
Project Cost 8.90
ADB 8.90
Counterpart 0.00
Cofinancing 0.00
Date ADB OTHERS Net Percentage
Cumulative Contract Awards
31 Aug 2015 9.390 100%
Cumulative Disbursements
31 Aug 2015 9.390 100%
Top Status of Covenants
Category Sector Social Financial Economic Others Safe
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
2008 Asian Development Bank

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