Transcript Slide 1

School Education in Madhya
Pradesh
PUBLIC PRIVATE
PARTNERSHIP (PPP)
MODELS IN SECONDARY
EDUCATION
THE UK EXPERIENCE
Michael Ward (DFID India)
6th October, 2008
Page 1
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
Page 2
DEVELOPMENT PARTNERS’ RATIONALE:
THE EIGHT MILLENNIUM DEVELOPMENT
GOALS
• Eradicate Extreme Poverty and Hunger
• Achieve Universal Primary Education
• Promote Gender Equality and Empower
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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 GoI’s plans
for expanding secondary education,
SUCCESS, through technical assistance in
five main areas:
(a) Access and equity,
(b) quality,
(c) financing secondary education,
(d)PPP and
(e) 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 sector’s
willingness and readiness to
partner with Government
• Policy implications for GoI
and States of PPP
Page 5
International Experience
with Types of PPP
Private management of public schools
Concession Schools: Latin America; Academies, UK
Contract for Services - ‘PFI’ (UK), ‘PPS’ (Mexico)
Government contracting with private schools:
Vouchers, Chile; Alternative Education, New Z
Integrated Public-Private School System:
The Netherlands; GiA in India
* Partnerships UK is an example
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UK Education System: England
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3,500 secondary
schools (average
strength 857)
3,000,000 pupils
100,000 teachers (PTR
of 30:1)
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
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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:
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Key Stage 1 - 5 to
Key Stage 2 - 7 to
Key Stage 3 - 11
Key Stage 4 - 14
7 years old
11 years old
to 14 years old
to 16 years old
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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
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Why does Government in the UK
involve the private sector in
secondary education?
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What kinds of services have been
sought from the private sector?
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How is private sector
participation procured?
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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?
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Getting schools built to time and to
budget
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Securing better long term
management and maintenance of
school buildings
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Innovation in the design of schools
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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
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Design, construction
and maintenance of
school buildings
Facilities management
services for schools
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School management
and teaching
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Ancillary educational
services
Educational support
services to Local
Authorities
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How procured?
Through PPP contracts
(Private Finance Initiative)
As sponsors of Academies
Through outsourcing
contracts
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Drop Page Fields Here
The Private Finance Initiative (PFI) is the
dominant PPP model in theProjects
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What is PFI?
1.
Long term contract (20-30 years)
2.
…involving large assets (typically
secondary schools)
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…and significant construction and
O&M risk
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Private sector takes full design,
construction, performance and long
term maintenance risk…
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…but frontline services (teaching)
remain with public sector.
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No Service, No Fee principle Authority pays “Unitary Charge” for
available /acceptable service…
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…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
Consultation and
Communication Channels
Consultees
Political Group Briefings
Local Politician Briefings
Political Reporting
Elected Members
Project Sponsor
Project Information Briefings
/ Liaison forum
Existing negotiation forums
Membership of Board?
Trade Unions
(Teaching and Non-Teaching)
Project Team
Teaching Staff
Students
Project Manager
Working Group of education reps.
Existing newsletters, roadshows,
websites, questionnaires and
other existing communication
channels
Advisory Boards
Stakeholders
Community Users
Specialist Sub-Teams
User Forum
Publications
Project Newsletter
Website
Briefings
Meetings
Dedicated contacts
External Agencies
Sports, environmental, historic,
other additional funding sources
Project Board
Chief Executive / Chancellor, Director
of Education, Project Sponsor, Director
of Finance, Central Govt. rep.
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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
80%
On time
On budget
On time
PFI
On budget
30%
Conventional
Procurement
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%
77%
12%
10%
1%
Always
Almost always
About half of
Almost never
0%
Never
the time
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More research is needed to evidence the effect of
better infrastructure on pupil performance
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DCSF – “Building performance” 1992 – positive effect suggested by
qualitative interviews
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DCSF – “Building better
performance” - 2003 – statistically
significant association between
infrastructure and pupil performance
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PUK – “Schools PFI Review” – 2004
– anecdotal evidence of improved
learning outcomes and pupils’ view
of their school
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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
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Academies are a way of introducing
fresh governance, leadership and
management into failing state schools
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Sponsors of academies control the
governing body and recruit the
principal and teachers
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Sponsors can include charities,
business groups, faith groups and
independent (private) schools
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Requirement from some sponsors to
put in £2 million but schools are “not
for profit” so involvement is not on
commercial terms
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Academies are provided with new
buildings to make a fresh start
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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
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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
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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
What not so well ?
? PFI procurements have
been time consuming
 On the whole, services
delivered satisfactorily
 Continued private sector
? Inflexibility in terms of
changes to scope
interest
 Greater standardisation of
procurement documents
 Schools’ PFI is now a mature
market
 Transparent whole life costs of
operating infrastructure
? 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
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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
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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
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How is private sector participation to be procured?
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Project versus programme based approaches
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Type of procurement model for services required
(a) PFI-style – infrastructure only
(b) PFI-style – infrastructure + frontline teaching services (separate
contracts)
(c) PFI-style – infrastructure + frontline teaching services (bundled
contracts)
(d) 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
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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
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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
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