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ANNEX III of the Commission Implementing Decision on the Annual Action Plan 2014 for Human Development component of the Global Public Goods and Challenges (GPGC) Programme Action Document for the Multi-annual (2014-2016) Contribution to the Global Partnership for Education (GPE) 1. IDENTIFICATION Title/Number Total cost Multi-annual (2014-2016) Contribution to the Global Partnership for Education (GPE) CRIS number: 2014/341-699 Target for the replenishment period 2015-2018: US$3.5 billion for the GPE Fund. Total amount of EU budget contribution: EUR 80 000 000 For an amount of: EUR 40 000 000 from the general budget of the European Union for 2014, EUR 20 000 000 from the general budget of the European Union for 2015, and EUR 20 000 000 from the general budget of the European Union for 2016, subject to the availability of appropriations following the adoption of the relevant budget. Other donor contributions will be known in the Replenishment Conference of June 26, 2014, Brussels. For earlier contribution, see point 4.4. Aid method / Management mode and type of financing Project Approach Indirect management with an international organisation - the World Bank DAC-code 112 Sector Basic education 1

2. RATIONALE AND CONTEXT 2.1. Summary of the action and its objectives Despite the good progress made in the education sector in developing countries in the past years, many countries will not reach MDG education goals by 2015. This lack of education opportunities for the poorer and marginalized parts of the population, negatively impacts individual livelihoods as well as the sustainable development of nations. In order to address this global challenge, the EU has made the support to education a key element of its overall development policy, including through its involvement in global education initiatives. The objective of this contribution to the Global Partnership for Education (GPE) is to help the poorest countries and those furthest away from the MDG goal of Universal Primary Education and the other Education For All Goals to achieve quality basic education. With the support to the GPE, the EU is addressing the objectives of the education component of the thematic programme Global Public Goods and Challenges as outlined in Article 6 Thematic programmes, Article 7 Global public goods and challenges and Annex II Areas of cooperation under thematic programmes of the Development Cooperation Instrument (DCI) 1 and further detailed in the Global Public Goods and Challenges Multiannual Indicative Programme 2014-2017. In line with the EU development policy Agenda for Change 2 and the education component of the thematic programme Global Public Goods and Challenges, the EU will through the support to the GPE, address the objectives on improving access, quality and equity in education as well as promoting education opportunities in fragile and conflict affected states. 2.2. Context 2.2.1. Global context The global development community agrees on the crucial role education plays in the development of individuals and societies, and on need to act jointly in addressing existing challenges in the sector. Born out of the need to establish global partnerships in order to achieve education MDGs and the EFA goals, the GPE has become an essential pillar of the global architecture on education for development. In line with its global development policies and strategies, the EU continues supporting the GPE in its endeavour to achieve global education goals also in the post-2015 context. 2.2.2. Sector context: policies and challenges Education is widely considered as a success among the MDGs: According to the 2013/14 EFA Global Monitoring Report (GMR) 3, the number of primary school age children out of 1 Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020 2 Increasing the impact of EU Development Policy: an Agenda for Change, COM(2011) 637 final 3 https://en.unesco.org/events/launch-201314-education-all-global-monitoring-report-teaching-and-learningachieving-quality 2

school in developing countries has fallen from 105 million in 1999 to 55 million in 2011 4. The rate of decline was rapid up to 2004 but progress has stalled since 2008. The net enrolment rate in primary education in developing countries rose from 82% in 1999 to 90% in 2011. There are, however, large disparities between regions and countries, with Sub- Saharan Africa lagging behind (net enrolment in primary education of 78%). The number of out of school children in Sub-Saharan Africa accounts for more than half of the world's total (30 million). Universal Primary Education (UPE) is likely to be missed by a large margin. Children out of school tend to be poor, from rural areas and live in the most disadvantaged regions of their country. Gender equality is still a challenge in many countries, though at aggregate global level girls are almost as likely to have access to education as boys. If recent trends continue, it is projected that in Sub-Saharan Africa the richest boys will achieve universal primary completion in 2021, but the poorest girls will not catch up until 2086. Another challenge is the quality of education. Around 250 million children are not learning basic skills of literacy and numeracy, even though half of them have spent at least four years in school. Underlying these stark findings are significant issues of inequity and marginalization. Access and learning outcomes are notably worse among poorer, rural children, with pockets of disadvantage among girls, particularly in accessing secondary education. Teachers are the most important resource for improving learning. Latest GMR estimates suggest that approximately 8-10 million additional competent and motivated teachers are required to provide a full quality basic education for all. This is particularly relevant taking into consideration that in many of the world's poorest countries children can spend several years in school without learning to read a word (e.g. in Mali, 8 out of 10 grade 2 students could not read a single word). Progress is slowing, particularly in fragile and conflict-affected countries - where half of the world's out-of-school children live (and this percentage is increasing). Fragile and conflictaffected states are the worst equipped to provide education for all, and the least funded by donors thereby requiring greater investment in equitable access and quality education to help lessen tensions, promote peace and rebuild lives. International aid is essential to consolidate progress and to meet this goal on time. Both actual and pledged levels of aid for basic education have started to decline. Aid commitment to basic education peaked in 2010, and is now falling. Aid to basic education fell for the first time since 2002, by 6%: from US$6.2 billion in 2010 to US$5.8 in 2011. This is insufficient to fill the US$26 billion financing gap faced by low income countries in basic education. The gap in funding for education globally is growing and a renewed commitment, momentum, and more predictable external funding are required to bridge the funding gap. The Global Partnership for Education has become a key vehicle in this endeavour. It is a multilateral partnership of developing and donor countries, multilateral agencies, civil society organizations and the private sector and private foundations whose vision is "a good quality education for all children, everywhere, so they fulfil their potential and contribute to their societies". Currently, the Global Partnership comprises 59 developing countries and about 30 bilateral, regional, and multilateral agencies and organizations. The GPE works by (a) 4 The corresponding figures for the world are: 107 million and 57 million. 3

coordinating efforts to achieve countries own education strategies, (b) mobilizing technical and financial resources, and (c) using those resources efficiently to achieve results. It was launched in 2002 (formerly the Education for All Fast Track Initiative - FTI) to accelerate progress on the Millennium Development Goal of universal primary education by 2015 (MDG 2). The GPE helps to mobilise financial resources to support development and implementation of countries education plans. Ideally, additional resources are made available directly from domestic resources and bilateral and multilateral partners. Where this is not possible, the GPE can provide support from its multi-donor trust fund (the GPE Fund). The work of the Global Partnership is guided by six principles: country ownership, support linked to performance, lower transaction costs, transparency, development results and value for money, and mutual accountability. All low-income countries, including fragile states that demonstrate a serious commitment to achieving quality basic education can receive support from the GPE on the basis of national education plans endorsed by local donors. Strategic priorities include quality of education, girls education, teachers' effectiveness and education in fragile states. 2.3. Lessons learnt The GPE Fund and its predecessor (the Catalytic Fund), has received EU funding since 2007 from the Investing in People Programme and also an allocation from the 9 th EDF intra-acp funds. It provided financial assistance to GPE countries with an education plan endorsed by local donors in the GPE endorsement process. From 2003 to 2013 the GPE has allocated USD 3.658 million to 59 countries (see figure below for cumulative allocations). 4

In 2011 the GPE adopted a system of indicative allocations published the GPE s web site. A formula based on needs and performance (NPF) was used to calculate an indicative allocation each country was eligible to apply for. The system of indicative allocations encouraged an unprecedented demand for GPE grants. This together with an over programming approach has led to a situation where the Partnership is currently borrowing from the next replenishment. Neither did the NPF succeed incentivising performance to a degree that was expected as the performance indicators were used ex-ante in the formula. The GPE is putting in place a new funding model for 2015-2018 to improve the way the GPE is supporting the education programmes of partner countries. It will (i) focus funding on the poorest countries and those furthest away from the education goals, (ii) identify indicative allocations based on country needs, (iii) include specific incentives for performance, and (iv) encourage increases in domestic financing and external support by requiring financial commitments at country level by the partner government and the development partners. Under the new model, a total of 66 countries 5 will be eligible for the GPE Education Programme Implementation Grants; another 13countries will be eligible for innovative financing mechanisms under development in the GPE. If available resources are insufficient to fund all eligible countries at a minimum acceptable level, allocations will be prioritised based on a ranking of eligible countries. A needs -based allocation formula will be used to calculate a maximum indicative allocation for each eligible country (i.e. a country s share of the overall resources available). The indicative allocation will include a fixed component and a variable component, the disbursement of latter conditional on the progress on performance indicators to incentivise performance. Performance indicators in the variable component will focus on efficiency, equity and learning in order to promote the achievement of the GPE s strategic goals and objectives. An interim evaluation of the GPE will be launched around mid-2014 whose results are foreseen to be available by end of 2015. 2.4. Complementary actions The bulk of the EU s support to education and training is channelled through bilateral cooperation in countries where education/training has been identified as a focal sector. Education is also supported indirectly via Good Governance and Development Contracts. Supplementary contribution to the GPE Fund is proposed from the 11 th EDF, to be negotiated with the ACP Secretariat. Other, on-going education initiatives supported by the EU through the Investing in People programme include the Education for All International Task Force for Teachers (total of 5 66 Partner countries include: Afghanistan, Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Cote d'ivoire, DR Congo, Dominica, Eritrea, Ethiopia, Gambia, Guinea, Grenada, Guinea-Bissau, Guyana, Haiti, Kenya, Kiribati, (DPR Korea), Kyrgyz Republic, Lao PDR, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Marshall Islands, Mauritania, Micronesia, Mozambique, Myanmar, Nepal, Nicaragua, Niger, Nigeria, Pakistan, Papua New Guinea, Republic of Congo, Rwanda, Samoa, Sao Tome & Principe, Senegal, Siena Leone, Solomon Islands, Somalia, South Sudan, St Lucia, St Vincent, Sudan, Tajikistan, Tanzania, Timor Leste, Togo, Tonga, Tuvalu, Uganda, Vanuatu, Yemen, Zimbabwe. 5

2.950 million) and the Association for the Development of Education in Africa ADEA ( 1 million). Under the GPGC, the EU is proposing to promote education in situations of fragility through specific actions to be identified in later years In 2012, the European Commission also launched a new multi-annual initiative to help children affected by conflict through education in emergencies, the so-called EU Children of Peace Initiative. This initiative is a lasting legacy of the honour of the Nobel Peace Prize awarded to the EU in 2012 and so far the total of 12.712 500 ( 2 million in 2012, 4million in 2013 and 6.712500 million in 2014 including 500 000 contribution assigned revenue from Luxemburg and 250 000 contribution assigned revenue from Austria) has been allocated to humanitarian projects that are assisting conflict-affected children through education. The projects selected are also encouraged to seek complementarity and synergies with the GPE. The GPE Fund is a trust fund with the World Bank as a trustee which pools funds at global level. The EU and EU Members States have been the main financiers of both the Catalytic Fund and its successor, the GPE Fund: (1) 90% of the funds to the Catalytic Fund (2004 2011) came from the EU (Member States and the Commission). (2) Around 65% of the funds to the GPE Fund in the period 2012-2014 come from the EU collectively. Other major donors include Australia and Canada; as well as smaller ones, such as the US, Japan and Russia. The Commission has been supporting the GPE Fund (and the Catalytic Fund) combining funding from two sources: 63 million from the 9 th EDF (2005) and a cumulative amount of 80 million from the Investing in People Programme (since 2007). 2.5. Donor coordination The GPE plays an important role as a forum for aid effectiveness, particularly in its approach to ownership, harmonisation, alignment, management for results and mutual accountability. The Paris Declaration on aid effectiveness reinforced in Accra (2008) and Busan (2011) lies at the heart of the GPE, not only at country level but also at global level. At country level, the Local Education Group (LEG) lies at the heart of the Partnership. The GPE is founded on the principle of collective support for a single country-led process towards the development, endorsement and implementation of an education plan. With the government leading and having the responsibility for implementing its policies and plans, CSOs and the Local Donor Group (LDG) work together with government at the country level to support the development, monitoring, and evaluation of the education plan. This includes monitoring and promoting progress towards increased aid effectiveness, active participation in Joint Reviews as well as mobilizing financial support. At global level, the GPE is governed by a Board of Directors, on which all stakeholder groups are represented: partner countries, donor agencies, civil society, private sector/private foundations, development banks and UN organisations. The Board sets the policies and strategies, reviews the objectives of the Partnership and makes the decisions on grant allocation from the GPE Fund. For financial decisions it is assisted by the Country Grants and Performance Committee, which makes recommendations on allocations from GPE Fund. The membership of GPE Board is based on a constituency model: the Board has 19 members/seats: 6 for donors, 6 for partner countries, 3 for multilaterals, 3 for Civil Society and 1 for private sector. 6

Currently, the Commission is the Board member representing Donor Constituency 5 (COM, France, Germany and Italy) and Germany is the alternate Board member. France is a member of the Country Grants Committee. All views expressed by the Commission on the Board are closely coordinated with constituency members. Other EU Member States are represented on the Board through constituencies formed with their partners. The regular EU MS Education Experts meetings provide an opportunity for informal consultations among the EU in advance of Board meetings. 3. DETAILED DESCRIPTION 3.1. Objectives The overall objective of the action is to contribute to the achievement of development goals in the field of education internationally agreed under the MDG and the EFA framework as well as the post-2015 agenda. The specific objective of this contribution is improve access, equity and quality in education in the poorest countries and those furthest away from the MDG goal of Universal Primary Education and the other Education For All Goals, including in fragile an conflict affected countries. This objective is based on relevant provisions of the DCI regulation 6 and EU development policies 7 and in line with the strategic goals outlined in the current GPE Strategic Plan 8. 3.2. Expected results and main activities This contribution to the GPE Fund will contribute to the achievement of the four strategic goals/results areas of the GPE. The targets below are conditional on the GPE being able to mobilise the target amount of 3.5 billion for the GPE Fund in the replenishment for the period 2015-2018. 1) Access for all There are still 55 million primary school age children out-of-school in developing countries, half of whom live in fragile and conflict-affected states. Tens of millions of children are enrolled but do not attend school regularly or drop out. Indicators and targets for 2015-2018: 6 Article 6 Thematic programmes, Article 7 Global public goods and challenges and Annex II Areas of cooperation under thematic programmes of the Development Cooperation Instrument (DCI). 7 Agenda for Change and Global Public Goods and Challenges Multiannual Indicative Programme 2014-2017. 8 http://www.globalpartnership.org/library?search_api_views_fulltext=gpe+strategic+plan&=go 7

Progress of GPE endorsed countries against their own targets for GPE performance indicators: enrolment rate in primary and lower secondary education Overall target for enrolment in primary and lower secondary school in GPE countries by 2018: in 29 million will be supported for a good quality education, of whom 23 million will be in fragile and conflict-affected states 2) Learning for all An estimated 250 million children are not able to read or write by the time they reach the fourth grade. The address this challenges, the GPE has set a priority on promoting early grade reading and numeracy. Indicators and targets for 2015-2018: Progress of GPE endorsed countries against their own targets for GPE performance indicators: the number of children supported by the GPE who complete primary education annually and demonstrate core reading and numeracy skills Overall target by 2018: the number will increase by 25%, from 16 million in 2014 to 20 million in 2018 3) Reaching every child Out of 55 million primary school age children out-of-school in developing countries, more than half of them are girls. The address this challenge, the GPE has set a priority on girls education. Indicators and targets for 2015-2018: Progress of GPE endorsed countries against their own targets for GPE performance indicators: completion rate of girls in primary and lower secondary education Target by 2018:The primary completion rate of girls will increase from 74% in 2014 to 84% in 2018 Target by 2018:The lower secondary completion rate for girls will increase from 44% in 2014 to 54% in 2018 4) Building for the future Education systems need to have the capacity to deliver, support, assess and measure quality education for all. Education policies need to be based on evidence, be informed by reliable local data, and be country led. One of the great challenges is the lack of reliable and up-to date data at country level. The Global Partnership has put a priority on strengthening the monitoring and data systems of GPE developing country partners. In addition, the GPE aims to mobilise increased financial resources for basic education, both domestic and external. It also promotes increased accountability for sectoral results, through the requirement of a data strategy and annual reporting on policy progress and key outcomes set out in the sectoral plans and transparent sharing of results. Indicators and targets for 2015-2018: 8

Equity: 90% of GPE developing country partners will have detailed analyses of equity issues, and will be able to report progress Quality: 90% of GPE developing country partners will have learning outcomes data that allow better management of quality, as well as monitoring of and reporting on progress Domestic funding; Percentage of total government budget allocated to the education sector in GPE endorsed countries 3.3. Risks and assumptions The project is designed to ensure maximum country-level ownership of the diagnosis, policy recommendations and implementation of the programme. Existing coordination mechanisms and the reporting role given to the lead coordinating agency at country level will ensure smooth implementation of national plans. The endorsement procedure ensures that the country has a consensus on the national priorities and the commitment of all stakeholders to the activities to be implemented to achieve the commonly agreed national results. The GPE seeks to increase coordination among donors and minimise transaction costs while maintaining safeguards to ensure that funds made available to eligible countries are used effectively and achieve results. The GPE acknowledges that trust fund resources will sometimes be allocated for use in environments where there is high risk of misuse of funds, through fraud, corruption and other practices. This could lead to GPE trust funds being used for a purpose other than that for which they were approved by the Board of Directors. In order to minimise and litigate such risk the GPE approved a Policy and Communications Protocol on misuse of GPE Trust Funds. The policy, specifically addresses the roles and responsibilities related to misuse of GPE trust funds and requires that both Supervising Entities and Managing Entities have policies and procedures to mitigate risk of misuse of funds and to address misuse should it occur. 3.4. Cross-cutting issues The GPE Guidelines for Education Sector Plan Preparation and Appraisal require that the national plans should include strategies to address HIV/AIDS, gender equality, equal access for all vulnerable groups, including children with disabilities, and other cross-cutting issues relevant to education. Environmental issues are usually covered by national sectoral strategies, and environmental impact assessments are included in the appraisal and endorsement process, where appropriate. The GPE has, since its inception, had a strong gender perspective and girls' education is a strategic priority for the Partnership. The education sector appraisal guidelines are quite clear regarding the need for gender disaggregation of data, analysis of gender disparities and the need to address gender issues through specific initiatives and mainstreaming. 9

3.5. Stakeholders The GPE encompasses all major donors to education about 30 bilateral, regional and international agencies and development banks. A total of 59 developing countries have joined the GPE to date, and a number of major civil society organisations, foundations and private sectors are involved in the partnership. The immediate beneficiaries of support to the GPE include governments and ministries of education that are either in the partnership already or that join it in the years ahead. Donors at both global and national levels will also benefit from the work of the Secretariat. Ultimate or indirect beneficiaries will include the children, teachers, school managers and communities who should benefit from increased and improved national and external support to national sectoral strategies. 4. IMPLEMENTATION ISSUES 4.1. Financing agreement In order to implement this action, it is not foreseen to conclude a financing agreement with the partner country, referred to in Article 184(2)(b) of Regulation (EU, Euratom) No 966/2012. 4.2. Indicative operational implementation period The indicative operational implementation period of this action, during which the activities described in sections 3.2. and 4.3. will be carried out, is 60 months from the date of entry into force of the financing agreement or, where none is concluded, from the adoption of this Action Document, subject to modifications to be agreed by the responsible authorising officer in the relevant agreements. The European Parliament and the relevant Committee shall be informed of the extension of the operational implementation period within one month of that extension being granted. 4.3. Implementation components and modules 4.3.1. Indirect management with an international organisation This action with the objective of Enabling the GPE to contribute to improving access, equity and quality in education in the poorest countries and those furthest away from the MDG goal of Universal Primary Education and the other Education For All Goals, including in fragile an conflict affected countries may be implemented in indirect management with the World Bank in accordance with Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012. The entrusted entity will contribute to the achievement of development goals in the field of education universally agreed under the MDG framework and the post-2015 agenda. An ex ante assessment of the entrusted entity is currently being prepared in accordance with Article 61(1) of Regulation (EU, Euratom) No 966/2012. In anticipation of the results of this review, the responsible authorising officer deems that, based on a preliminary evaluation and on the long-standing and problem-free cooperation with this entity, it can be entrusted with budget-implementation tasks under indirect management. However, the conclusion of the agreement corresponding to the implementation of the present action document is conditioned to the proper compliance with the above requirements. 10

4.4. Indicative budget The indicative budget covers 3 years: 2014 2015 2016 40 000 000 20 000 000 20 000 000 For years other than the initial commitment year, the commitments are indicative and subject to the availability of appropriations following the adoption of the relevant budget. The first replenishment of the GPE covered the period 2012-2014 (3 years). The second replenishment period covers the period 2015-2018 (4 years). The mobilisation of funding for that period starts with a Replenishment Conference in Brussels on June 26, hosted by the EU. The contributions of other donors will only be known on that date. In the period 2012-2014, the GPE mobilised the total of US$1.7 billion with 21 donors contributing to the GPE Fund. The top six donors and their shares of the US$1.7 billion are: (1) the UK (25%); (2) Australia (15%); (3) Denmark (12%); (4) the Netherlands (9%); (5) Norway (7%); and (6) Sweden (7%). The EU s share in this period is ca. 4%. 4.5. Performance monitoring In line with the basic GPE principles, there will be an in-country monitoring mechanism. In no case should there be any parallel processes for performance monitoring and evaluation. Each GPE-endorsed country should conduct an Annual Sector Review jointly with all key partners. The World Bank, as a member of the Local Donor Group, will participate in these reviews. Monitoring and annual reviews should focus on agreed performance, aid effectiveness indicators and development results rather than following a year-to-year micromanagement and project-type approach. The GPE Secretariat will also prepare regular reports to the GPE partners on recipient countries performance and the lessons learnt from the GPE, based on information drawn from annual country-level sectoral reviews. The GPE Secretariat will send all partners an annual report on the activities financed by the GPE trust funds. 4.6. Evaluation and audit The annual reports prepared by the GPE Secretariat, the results of the annual sectoral reviews of the recipient countries and the information provided by UNESCO (including the EFA Global Monitoring Report) are expected to be sufficient to form an opinion on the progress with, and results of, the GPE and the GPE trust funds. If required, within the Board of Directors, donors may call for in-depth assessments of the GPE trust fund activities. The World Bank will serve as Trustee for the GPE Fund and will provide a standard single audit to all donors. 11

4.7. Communication and visibility Communication and visibility of the EU is a legal obligation for all external actions funded by the EU. This action shall contain communication and visibility measures covering the entire Partnership and GPE Fund which shall be based on a specific Communication and Visibility Plan of the Action. As far as possible, the GPE partnership should identify potential areas where broader strategic communication could be sought. The European Commission World Bank Group Joint Visibility Guidelines included in the Framework Agreement should be used as a reference. The second Replenishment Conference of the GPE on June 26, 2014 in Brussels, which the EU is hosting, gives high visibility to the EU at global level. Information dissemination on the GPE to EU Delegations will be improved to raise awareness and to encourage Delegations to proactively engage in the GPE processes. 12