1
FINANCING OF QUALITY
EDUCATION BRIDGING THE INEQUALITY
GAP
2
SITUATIONAL ANALYSIS OF THE
PUNJAB





Universal Education is a priority.
Out of school children - - 4.8 Million
5 to 9 years of age - - - - - 1.3 Million
Budget of public sector school education : Rs. 180 B
Public sector school enrolment : 11 M
Source: Oct-Nov 2011 Nielsen house hold survey.
3
SITUATIONAL ANALYSIS OF THE
PUNJAB

Conservative cost to cater to out of school children:


1.3 M Students ≈ Rs. 21.2b on account of running expenses
4.8 M Students ≈ Rs. 78.5b on account of running expenses

More schools are needed to reach students in sparsely
populated areas – driving the cost higher

Need for cost effective solution
Alternative models : paid private, non formal, publically
sponsored private

4
SITUATIONAL ANALYSIS OF THE
PUNJAB


Phenomenal growth of private schools – 47000
schools
Success indicators:
 Better quality of education,
 Better location,
 Community mobilization, and
 Teacher presence
LEAPS Survey
Private schools are efficient
5
Cost is 1/3 but kids
out perform public
sector schools
Low paid teachers
but absenteeism
40% less
Less trained teachers
but kids learn higher
civic sense
6
SITUATIONAL ANALYSIS OF THE
PUNJAB
Un-served
Kids
Under
served Kids
• 4.8 M
• 1.3 M
• In school
• Not meeting
own grade
requirement
Drop outs
• 67%
• 35%
• 23%
PEF MODEL
7
QUALITY
ASSURANCE
TRANSPARENCY
Pedagogical
Support
M&E
PUBLICPRIVATE
PARTNERSHIP
The PEF employs innovative principles to increase enrollment and quality of
education
… which it achieves through innovative and efficient operating
principles
PEF has three primary
objectives …
Low cost education
▪ Promote quality education
(e.g., infrastructure)
Superior targeting
efforts of private sector
through technical and
financial assistance
▪ Innovate and develop new
instruments to champion
wider educational
opportunities at affordable
cost to the poor
High quality
outcomes
Monitoring and
evaluation
Practical
application
8
lower than traditional programs (1/3rd as
compare to Govt. )
▪ No upfront cost of setting up new schools
through Public Private
Partnerships
▪ Encourage and support the
▪ Average cost of Rs. 400 per student, much
▪ Mechanisms to ensure that subsidies are
extended to the most deserving (e.g., out
of school and high risk) children
▪ High quality outcomes maintained and
demonstrated by regular testing for
students (through bi-annual QATs)
▪ Close monitoring of participating schools.
Internal and external audits of PEF to
ensure transparency
▪ Add-on programs to provide vocational
training and help provide employment
HIGHLIGHTS OF PEF MODEL
9





PEF draws upon strengths of both public and
private sector
Free schooling and textbooks
Quality of education is ensured
Provides better learning environment, teacher
presence, physical infrastructure, missing facilities,
drop minimized, learning outcome.
Hallmark of PEF is low cost but quality education
SUCCESS DRIVERS OF PEF
10





Leveraging the ever expanding private school
market
PEF M&E
PEF QAT
Flexibility of private sector
Different bench marking trends in public and
private sector
Methods to ensure quality of partner schools and assess overall performance
of PEF are already in place
Description
Quality
assurance test
School
evaluation
PEF
evaluation
Monitoring and
evaluation cell
▪
▪
▪
▪
Bi-annual test for school outcomes conducted and
marked by third parties (e.g., NTS, AKU)
Two consecutive failures by school results in
discontinuity of partnership with PEF
Internal evaluation to evaluate policies and
implementation status
External evaluation to assess program effectiveness
Internal audit
▪
Performance audit /Gap analysis by Ernst and Young
Ford Rhodes
External audit
▪
KPMG Taseer Hadi to identify potential improvements
▪
Monitoring of financial compliance and utilization of
budget
Auditor general
of Pakistan
12
Foundation
Assisted
Schools
Education
Voucher
Scheme
New School
Program
Continuous
Professional
Development
Program
Financial and Quality Assurance Support
Description of program
Foundation
Assisted
Program
New schools
program
13
Program overview
▪ Identifies best performing low cost schools
▪ Schools provided fee (Rs. 400 per month)
Monitoring
▪ Schools selected and evaluated biannually through
Quality Assurance Test
▪ Periodic evaluations on enrolment, attendance,
retention, dropout and completion
Program overview
▪ Builds a new school in areas with no school within a 2
km radius
▪ Issues an initial six months payment (Rs. 400) for
minimum 50 students
▪ Upfront cost of setting up school borne entirely by
private sector partner
Monitoring
▪ Partnership continuity based on students learning
outcomes (through QAT)
▪ Internal monitoring and evaluation through quarterly
visits
Current reach
▪ Focus on low
cost schools
▪ 1,000,000 out of
school children
currently served1
▪
▪
Focus on areas
having no
schools
~29,000 out of
school students
currently served
through 200
schools1
Description of program
Education
voucher
scheme
CPDP
14
Program overview
▪ Identifies out of school children via household
surveys
▪ Children provided voucher (Rs. 400 per month)
redeemable at selected schools
Monitoring
▪ Schools selected and evaluated biannually through
Quality Assurance Test
▪ Periodic evaluations on enrolment, attendance,
retention, dropout and completion
Program overview
▪ Pedagogical training to primary level teachers
▪ Pedagogical training to secondary level teachers
▪ School management training to head teachers
Monitoring
▪ Internal monitoring and evaluation through quarterly
visits
▪ Follow up visits to class rooms
Current reach
▪ Focus on slum
areas
▪ 60,000 out of
school children
currently served1
▪
▪
▪
Focus on FAS
schools
Cluster-based
trainings
Trainings on
doorsteps
ADDITIONAL SERVICES
15





School management training
Teacher training
Better evaluation
Infrastructure loans
Best School Awards
ADDITIONAL SERVICES
16




Text books
Libraries
Skill Development Trainings
Eliminating Corporal Punishment
Process Flow
17
EOIs through
advertisements
Well Defined
Selection
Process
Transparency
Assurance
Outsourcing of
Activities
Result
Announcement
Selection
Pilot
Testing/QAT
Quality
Assurance
MoU Signing
Biannual QAT
M&E
Amendments
PEF FINANCING – MACRO PICTURE
18




International Development Partners --- Federal
Government --- Provincial Government
Donors
Govt. : Budgetary Support vs. Project
Based Funding
Provincial Government
PEF: DLI
PEF
School: Online transfer through
Commercial Bank
PEF FINANCING
19





Model is open for low cost schools only
Open advertisement
Selected schools receive Rs. 400 per child
Newly established schools receive fee for 50
students during first six months for sustainability
Households registered in EVS receive Rs. 400
voucher redeemable at partner schools
7 YEAR ENROLMENT
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Enrolment
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
21
PEF MODEL EDUCATES A CHILD AT
1/3 COST OF PUBLIC SECTOR
SCHOOLS
REASONS OF BEING LOW COST
22




Salary / pensions
Low cost of Infrastructure
Incremental growth in infrastructure of private
sector, upfront cost in public sector
Efficient /lean management
23
INTERVENTIONS THAT REDUCE COST
& IMPROVE EFFICIENCY





Involve private sector (CSR)
Admin cost less than 5%
Lean organization
Outsourcing
Some students study free
Per head cost = Rs. 444 (US$ 5 ) per month
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School: 2000
Enrolment: 1.1M
PEF OUTREACH
25
SN
Districts
1 Attock
FAS
Schools
3
NSP
Schools
EVS
Schools
1
2 Bahawalnagar
189
3 Bahawalpur
263
40
13
4 Bhakkar
49
10
4
5 Chakwal
35
6 Chiniot
16
13
7 Dera Gazi Khan
51
9
16 Khushab
35
17 Lahore
39
18 Layyah
40
3
6
6
3
6
4
8
12
5
10
6
15
4
8
4
10
2
14 Kasur
15 Khanewal
4
3
11 Hafizabad
131
2
8
21
13 Jhang
Schools
4
9 Gujranwala
4
SS
8
16
12 Jehlum
SN
4
8 Faisalabad
10 Gujrat
TICSS
110
13
4
8
4
8
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Districts
Lodhran
Mandi Bahauddin
Mianwali
Multan
Muzaffargarh
Nankana Sahib
Narowal
Okara
Pakpattan
RahimYar Khan
Rajanpur
Rawalpindi
Sahiwal
Sarghodah
Sheikhupura
Sialkot
Toba Tek Singh
Vehari
Total
FAS
Schools
NSP
Schools
115
4
32
189
224
7
8
27
23
33
108
5
20
22
4
23
5
67
1767
2
7
EVS
Schools
3
26
7
10
20
31
10
16
6
13
200
13
267
TICSS
SS
Schools
1
2
4
8
5
10
4
3
5
8
6
10
3
2
4
4
4
4
3
86
6
4
8
8
8
8
6
172
INDIRECT IMPACT
26






Ensuring stability of low cost schools which results
in sector stability.
Parents could not have ensured quality
PEF generates indirect employment
Women Empowerment
Promoting Social Enterprise
Capacity building of private sector in education
related services
These programs can put ~0.8 million out of school children in school
through additional funding of Rs. ~16 Billion over the next 5 years
Educational voucher program
Additional
Funding
Rs.
0.5B
RS.
1.1B
Rs.
1.9B
New schools program
Rs.
2.7B
Rs.
3.7B
Rs.
0.3B
5 year total = Rs. 9.9B
Outcomes
Rs.
0.7B
Rs.
1.1B
Rs.
1.6B
Rs.
2.2B
5 year total = Rs. 5.9B
Additional children in school
Millions
Additional schools
0.5
200
400
600
800
1000
0.4
Additional children in school
Millions
0.3
0.3
0.2
0.2
0.2
0.1
0.1
0.06
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FY11-12
FY1213
FY1314
FY1415
FY1516
FY1112
FY1213
FY1314
FY1415
FY1516
CHALLENGES
28


Scaling up
Addressing Non Financing Barriers to Access to
Education
WAY FORWARD
29


Governing through HUB and Spoke Model:
Decentralized and close to Local Operations
Linking with Skill Development Program
30
THANK YOU