1. Comprehensive Costing and Finance Strategies for Preschool Education System in Georgia Eric Livny Maka Chitanava Nino Doghonadze 27.09.2013

2. Unit Costs (per child per year, GEL) Empirically observed full-day model Proposed half-day model Tbilisi Rest-of- Georgia Tbilisi Rest-of- Georgia Tbilisi Rest-of- Georgia Salaries296439659424298214 Training expenses031122 Material expenses13250235189149127 Nutrition32815272767800 Miscellaneous23420000 Total7806861,6221,292449343 Note: unit costs are calculated based on the methodology proposed by Jan Van Ravens (2008), For further details see “Comprehensive Costing and Finance Strategies for Early Learning System in Georgia”, ISET Policy Institute, 2012.

3. Assumptions for calculating total costs: Total costs are calculated for the preschool age (3 to 5 year-old children) cohort in 2013; Enrolment in private Kindergartens and 5 agers enrollment in private schools as well as share of preschool age children residing in Tbilisi are indicated to 2011 levels to 4%, 43% and 26% respectively; Each scenario assumes 100% enrollment of preschool age children.

4. Simulations: Total costs for various enrollment rates

5. Problems with calculated costs Does not include the transitional costs e.g. building new Kindergartens, personnel attraction and preparation; It is difficult to predict the demand; It is difficult to predict the supply especially when we do not know if existing kindergartens will satisfy new standards, as set by new amendments to the law; Calculated costs are as realistic as underlying assumptions.

6. Thank you For your attention!