1. ADB POLICY CONDITIONS FOR BESDP LOAN NO. 2306 GRANT NO. 0069

2. 1 POLICY CONDITION 1 INCREASE AND RATIONALIZE RESOURCE ALLOCATIONS FOR THE EDUCATION SECTOR

3. 15.5% 1a. MOF shall have allocated 15.5% of the total budget for 2008- 2009 to MOE provided that the allocated education budget shall not have been less than the share or the volume, whichever is greater, of the budget allocation stipulated in the preceding year. 45% 1b. The share of the recurrent expenditures shall have reached at least 45% of the total education budget for 2008-09. 80% 1c. MOF shall have disbursed 80% if the MOE recurrent budget for 2008-09.

4. JUNE 2009 LETTER FROM MOF 1. COMPLIANCE DEADLINE: JUNE 2009 SUPPORTING EVIDENCE: LETTER FROM MOF

5. NO. 2 POLICY CONDITION NO. 2 Improve the quality of teaching in school education by enhancing teacher competencies and promoting equity and efficiency in teacher management Improve the quality of teaching in school education by enhancing teacher competencies and promoting equity and efficiency in teacher management POLICY ACTIONS MOE shall have prepared and submitted to the PMO for approval, a Teacher Recruitment and Deployment Policy Framework, action plan and supporting guidelines for the management, recruitment, deployment and career development of teachers.

6. 2. COMPLIANCE DEADLINE November 2009 SUPPORTING EVIDENCE Ministry decree approving the teacher recruitment and deployment framework, action plan and supporting guidelines

7. POLICY CONDITION NO. 3 Encourage private sector participation in the provision of school education (years 1-12) MOE Dept. of Private Education shall have developed a strategy, incentives and action plan to facilitate participation by private sector. POLICY ACTION

8. 3. TARGET COMPLIANCE DATE November 2009 SUPPORTING EVIDENCE Ministry decree ordering the implementation of the developed strategy, incentives and action plan to facilitate private sector participation in education.

9. 4. POLICY CONDITION NO. 4 MOE shall have approved the revised curricula for primary (years 1-5) and lower secondary education (Years 6-9) POLICY ACTION Revised curricula for primary and LSE education have been developed. The curriculum for primary education has already been approved by MOE.

10. TARGET COMPLIANCE DATE November 2009 SUPPORTING EVIDENCE Copy of the Ministry decree approving the revised curricula for LSE (Years 6-9).

11. POLICY CONDITION NO. 5 Develop, produce and distribute to lower secondary schools new textbooks and teacher guides designed to implement the new lower secondary curriculum. POLICY ACTION MOE shall have approved the use of new LSE textbooks and teachers guides.

12. 5. TARGET COMPLIANCE DATE December 2009 SUPPORTING EVIDENCE Ministry decree approving the use of new LSE textbooks and teachers guides per submitted camera-ready manuscripts.

13. POLICY CONDITION NO. 6 Strengthen the sector EMIS, build capacity at all levels and improve monitoring and planning for sector development. POLICY ACTION MOE shall have issued guidelines for standardizing data collection, data processing and analysis.

14. 6. TARGET COMPLIANCE DATE November 2009 SUPPORTING EVIDENCE A decree issuing the guidelines for standardizing data collection, data processing and analysis.

15. POLICY CONDITION NO. 7 Improve budget format and process POLICY ACTION MOE shall have piloted the new Financial Management System, which incorporates budget preparation and submission at provincial level, in three agreed BESDP target provinces.

16. 7. TARGET COMPLIANCE DATE November 2009 SUPPORTING EVIDENCE The Ministry issues a directive requiring PESs to prepare provincial plans based on school mapping carried out pursuant to the EFA Plan and aligned with the new budget format and processes.

17. POLICY CONDITION NO. 8 Improve provincial planning in line with national policies and align planning with revised format and procedures POLICY ACTION MOE shall have issued a directive requiring PESs to prepare provincial plans.

18. 8. TARGET COMPLIANCE DATE November 2009 SUPPORTING EVIDENCE The Ministry issues a directive requiring PESs to prepare provincial plans based on school mapping carried out pursuant to the EFA Plan and aligned with the new budget format and processes.

19. POLICY CONDITION NO. 9 Design an education sector medium term expenditure framework that is integrated with the public sector MTEF to provide a rational basis for budget negotiation with the Ministry of Finance. POLICY ACTION MOE shall have initiated development of a medium term expenditure framework for education.

20. TARGET COMPLIANCE DATE November 2009 SUPPORTING EVIDENCE Ministry decree ordering the development of the medium term expenditure framework for education.

21. POLICY CONDITION NO. 10 Develop a central inventory of all MOE physical assets POLICY ACTION MOE shall have revised the current regulation on the management of MOE assets (Decision No. 66, 28 January 2004) for effective management of such assets.

22. 10. TARGET COMPLIANCE DATE September 2009 SUPPORTING EVIDENCE MOE issuance of a decree amending Decision No. 66, 28 January 2004 to effect a more effective management of MOE assets and the following of the amended guidelines for asset management.