School Education in Madhya Pradesh

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School Education in Madhya Pradesh

• PUBLIC PRIVATE PARTNERSHIP (PPP) MODELS IN
  SECONDARY EDUCATION
• THE UK EXPERIENCE
• Michael Ward (DFID India)
• 6th October, 2008

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Why Secondary Expansion and Reform?

• Rising demand from elementary school leavers,
  largely as a result of SSA
• Gender equity at Secondary and sustainable gains
  at primary
• Poverty reduction and social equity
• International competitiveness, labour market
  quality and
• growth
• HIV/AIDS, fragile states, and recovery
• Relevance, and effectiveness of Secondary
  Education
• Costs and efficiency for sustainable growth

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DEVELOPMENT PARTNERS RATIONALE THE EIGHT
MILLENNIUM DEVELOPMENT GOALS

• Eradicate Extreme Poverty and Hunger
• Achieve Universal Primary Education
• Promote Gender Equality and Empower Women
• Reduce Child Mortality
• Improve Maternal Health
• Combat HIV/AIDS, Malaria and Other Diseases
• Ensure Environmental Sustainability
• Develop a Global Partnership for Development

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What DFID and the World Bank are doing

• Supporting SSA universal elementary education
  with financial aid and technical assistance
• Supporting the development of GoIs plans for
  expanding secondary education, SUCCESS, through
  technical assistance in five main areas
• Access and equity,
• quality,
• financing secondary education,
• PPP and
• governance in secondary education

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Public Private Partnerships

• Sharing international experience
• Sharing UK experience of PPP
• Analysis of PPP in India study of the private
  sectors willingness and readiness to partner
  with Government
• Policy implications for GoI and States of PPP

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International Experience with Types of PPP
Partnerships UK is an example
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UK Education System England

• 3,500 secondary schools (average strength 857)
• 3,000,000 pupils
• 100,000 teachers (PTR of 301)
• 87 pupils attend comprehensive schools
• 1,000 specialist schools by 2004
• 788 independent schools
• A-level reforms introduced September 2000
• Revised curriculum introduced from September 2000

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Stages of Schooling in the UK

• Children in the UK have to legally attend primary
  and secondary education which runs from about 5
  years old until the student is 16 years old.The
  education system in the UK is also split into
  "key stages" which breaks down as follows
• Key Stage 1 - 5 to 7 years old
• Key Stage 2 - 7 to 11 years old
• Key Stage 3 - 11 to 14 years old
• Key Stage 4 - 14 to 16 years old
• Generally key stages 1 and 2 will be undertaken
  at primary school and at 11 years old a student
  will move onto secondary school and finish key
  stages 3 and 4. Students are assessed at the
  end of each stage. The most important assessment
  occurs at age 16 when students pursue their GCSEs
  or General Certificate of Secondary Education.
  Once students complete their GCSEs they have the
  choice to go onto further education (A Levels)
  and then higher education (Graduate), or finish
  school and enter the world of work.

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In reflecting on UK experience, we tried to
answer 4 basic questions

• Why does Government in the UK involve the private
  sector in secondary education?
• What kinds of services have been sought from the
  private sector?
• How is private sector participation procured?
• Where has it worked well and where not?

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Why does Government in the UK involve the private
sector in secondary education?

• Getting schools built to time and to budget
• Securing better long term management and
  maintenance of school buildings
• Innovation in the design of schools
• Improving teaching and learning standards by
  creating greater choice and contestability

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What kinds of services are sought from the
private sector in the UK?

• Common
• Design, construction and maintenance of school
  buildings
• Facilities management services for schools
• Less Common
• Ancillary educational services (e.g. lab
  assistants)
• Educational support services to Local Authorities
• Least Common
• School management and teaching

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How is private sector participation procured in
the UK?
Type of Service
How procured?

• Design, construction and maintenance of school
  buildings
• Facilities management services for schools
• School management and teaching
• Ancillary educational services
• Educational support services to Local Authorities

Through PPP contracts (Private Finance Initiative)
As sponsors of Academies
Through outsourcing contracts
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The Private Finance Initiative (PFI) is the
dominant PPP model in the UK
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What is PFI?

• Long term contract (20-30 years)
• involving large assets (typically secondary
  schools)
• and significant construction and OM risk
• Private sector takes full design, construction,
  performance and long term maintenance risk
• but frontline services (teaching) remain with
  public sector.
• No Service, No Fee principle - Authority pays
  Unitary Charge for available /acceptable
  service
• and deductions are levied from Unitary Charge
  for any failure to meet strict operating and
  maintenance standards

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Typical contracting structure
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Stakeholders in UK
Project Management Structure
Consultees
Consultation and Communication Channels
Elected Members
Political Group Briefings Local Politician
Briefings Political Reporting
Trade Unions (Teaching and Non-Teaching)
Project Information Briefings / Liaison
forum Existing negotiation forums Membership of
Board?
Working Group of education reps. Existing
newsletters, roadshows, websites, questionnaires
and other existing communication channels
Teaching Staff Students
Project Team Project Manager
Advisory Boards Stakeholders Community Users
User Forum Publications Project Newsletter Website
Specialist Sub-Teams
External Agencies Sports, environmental,
historic, other additional funding sources
Briefings Meetings Dedicated contacts
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Schools PFI has evolved from small, simple
projects to large scale complex programmes

• Single school, new build, new site
• Group of schools, some existing buildings
• Whole Local Authority estates, in one procurement
• Long term investment programme covering the
  entire country

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Main benefits of PFI are delivery to time and
budget and guaranteed long term maintenance
Delivery on time and on budget
On time
On budget
On time
On budget
Conventional Procurement
PFI
Performance of completed projects No. of
Projects
Sources National Audit Office (2004) UK
Parliament - Expenditure Auditor
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Performance measurement shows that the contract
service levels are being achieved
89
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More research is needed to evidence the effect
of better infrastructure on pupil performance

• DCSF Building performance - 1992 positive
  effect suggested by qualitative interviews
• DCSF Building better performance - 2003
  statistically significant association between
  infrastructure and pupil performance
• PUK Schools PFI Review 2004 anecdotal
  evidence of improved learning outcomes and
  pupils view of their school
• DCSF Review of Devolved Formula Capital
  2007 capital investment contributes to improved
  teaching and learning

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The UK Government is trying to address the
problem of failing schools through Academies

• Academies are a way of introducing fresh
  governance, leadership and management into
  failing state schools
• Sponsors of academies control the governing body
  and recruit the principal and teachers
• Sponsors can include charities, business groups,
  faith groups and independent (private) schools
• Requirement from some sponsors to put in 2
  million but schools are not for profit so
  involvement is not on commercial terms
• Academies are provided with new buildings to make
  a fresh start
• Some positive indications of success, but it is
  still too early to tell

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There are other types of services procured
through outsourcing contracts

• Poor performing LEAs have been directed to
  outsource support services
• Friendly directive from the Schools
  Commissioner
• Government has list of potential service
  providers
• Contract for non strategic services for 3 5
  yrs with option to extend
• Private sector paid against performance standards
• Few LEAs have outsourced voluntarily
• - Surrey Council opted to do this to harness
  business and commercial expertise
• - Joint venture with Private Sector. Private
  Sector 70 of shares
• Mixed picture of success

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• What has worked well ?
• PFIs track record of delivery has been good
• On the whole, services delivered satisfactorily
• Continued private sector interest
• Greater standardisation of procurement documents
• Schools PFI is now a mature market
• Transparent whole life costs of operating
  infrastructure

• What not so well ?
• PFI procurements have been time consuming
• Inflexibility in terms of changes to scope
• PFI has worked better for new build rather than
  refurbishment solutions
• 25 years too long for some services e.g. IT
• No direct impact on learning outcomes

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Policy Issues for Government of India and State
Governments to Consider Three Sets of Questions

• Motivations for involving the private sector why
  question
• Scope of services what question
• Procurement models how question

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Questions to consider in the Seminar

• Why does Government in India/Madhya Pradesh wish
  to involve the private sector in secondary
  education?
• Harness private capital to supplement public
  funds?
• Better delivery and management of school
  infrastructure?
• Improved frontline educational services (school
  management and teaching)?
• Driving up standards by creating choice and
  contestability?
• Any others?

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Questions to consider in the Seminar

• What kinds of services does the Government of
  Madhya Pradesh wish to seek from the private
  sector?
• Design, construction and maintenance of school
  buildings?
• Facilities management for schools?
• School management and teaching?
• Ancillary educational services?
• Educational support services?

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Questions to consider in the Seminar

• How is private sector participation to be
  procured?
• Project versus programme based approaches
• Type of procurement model for services required
• (a) PFI-style infrastructure only
• (b) PFI-style infrastructure frontline
  teaching services (separate contracts)
• PFI-style infrastructure frontline teaching
  services (bundled contracts)
• Concession-style where user charging is
  feasible

The principal benefit of (b) over the other
options is that it enables contestability in
frontline service provision, without the school
buildings becoming a barrier to entry for new
(non-state) providers.
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Questions to consider in the Seminar

• Who needs to do what to make it happen?
• Central Government
• State Government
• Local Government
• Private Sector
• Voluntary Sector (NGOs)
• Teacher and parent groups

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Suggested Next Steps

• Consider the policy options articulated in this
  presentation and paper in the context of National
  and State plans for secondary education
• Identify a shortlist of PPP model options
• Draft a prospectus for market sounding
• Carry out market engagement with private and
  voluntary sector providers
• Review and finalise PPP model(s) including
  preparation of model contract terms
• Select pilot projects
• Undertake procurements
• Review experience of pathfinders
• Scale up across the state/country