Qualitative Improvement in Primary Education by PPP Model

Group No.: 12Abhinav Daharwal

1211090Anubhav Tiwary

1211171

ContentsSummary............................................................21 Education in Karnataka.........................................3

1.1 Current Scenario............................................31.1.1 Infrastructure...........................................3

1.1.2 Students Enrolment.......................................41.1.3 Teachers.................................................4

1.2 Issues and Gap in Education Sector..........................52 PPP in Primary Education.......................................6

2.1 Introduction to PPP in education Sector.....................62.2 Proposed PPP Model..........................................6

2.2.1 Objective................................................62.2.2 Overview of model........................................7

2.3 Stakeholders Responsibilities...............................82.3.1 Government...............................................8

2.3.2 Private Player...........................................92.3.3 Parents..................................................9

2.4 Performance evaluation......................................92.4.1 Learning assessment test results.........................9

2.4.2 Infrastructural facilities..............................102.4.3 Students and teacher attendance.........................11

2.4.4 Performance in co-curricular activities.................112.4.5 Recruitment and training of the teachers................11

2.4.6 Reduction in dropout rates..............................112.5 Revenue Model..............................................12

2.5.1 Student Fees............................................122.5.2 Adult Literacy Programme................................13

2.5.3 Renting School Infrastructure...........................132.6 Risk Allocation Framework..................................14

References........................................................15

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Appendix I- PPP Model.............................................16Appendix II- Annual Revenue Requirement per School................17

Summary

India’s literacy rate is 74.04% which is less than manydeveloping countries like Indonesia, Maldives, Sri Lanka,Philippines etc. With the implementation of Right to EducationAct (RtE), Government of India is planning to provide qualityeducation to all the children of the country starting fromprimary level across all states and districts. Implementationof PPP model in this sector is one of the steps in thisdirection. Recently Government of India approved the settingup of 2,500 model school under PPP model in non-educationallybackward areas.

Amongst Indian states, Karnataka has literacy rate of 75.6%.Karnataka has 74,230 schools in the state of which 25950 areprimary, 34086 are higher primary and 14194 are high schools.82% of lower primary schools are managed by government ofwhich 90.18% schools are present in rural areas and aremanaged by Department of Education. The participation ofprivate players is very low in rural areas. Even though theenrolment of children in schools have increased in past fewyears, quality of education has not improved which isreflected by high Teacher Pupil Ratio (TPR) due to unfulfilledsanctioned teachers post, high Student Classroom ratio(SCR)and lack of basic facilities like classrooms, water,electricity, in many schools which are basis determinant ofthe learning environment. As of now assessment of learninglevel is done by Karnataka School Quality AssessmentOrganisation (KSQAOQ). It’s important to focus on attainingand sustaining higher level of education in primary schoolswhich builds the foundation for higher education rather thanjust focusing on increasing the enrolment of children in

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school which is not the appropriate indicator for level ofeducation in primary schools.

Our PPP model focuses on filling upthis gap by improving the quality of teaching in primaryschools in Karnataka. There is need to create open marketenvironment in education sector which will ensure healthycompetition and will result in improving the quality ofeducation. This PPP model focuses on providing services andmanaging the existing public schools in Karnataka. Throughthis model, we are focussing on improving the quality ofeducation at lower primary (1st to 5th) and higher primary (1st

to 8th) schools in Karnataka. Private players will beresponsible for hiring of teachers and staffs. Government willbe responsible for sponsoring students to the schools and willpay fee of student through indirect route by including makingparent a stakeholder in this model. Auditing and monitoring ofschool will be done by 3rd parties preferable of NGO/Auditcompanies. To ensure healthy competition, every alternateeducational block will be managed by different private playersthere by ensuring it doesn’t create monopoly in a district.Model have been discussed in more detail in this report.

1 Education in Karnataka

1.1 Current Scenario

1.1.1 InfrastructureIn Karnataka, education sector has seen growth in last fewyears. Under Sarva Sikhsa Abhiyan (SSA), State government hasactively focussed on improving the education level in thestate. There are 74,230 schools in the state of which 25950schools are primary schools, 34086 schools are higher primaryand 14194 are high school. 73.96% of the total schools arepresent in rural areas and 26.04% in urban areas.

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Schools in Karnataka are run by 17 types of management.Schools runs by Department of Education, Department of SocialWelfare and Local Body are classified as Government Schools.

  EducationDepartment

SocialWelfare+ LocalBody

Aided Un-Aided

Central +Other

s

StateTotal

Lower Primary Schools

22105 135 222 3486 2 25950

Higher Primary Schools

22567 576 2586 8259 98 34086

High Schools 4442 546 3547 5570 89 14194Total Schools 49114 1257 6355 17315 189 74230

82% of the primary schools are managed by government. Almost85% of total number of Primary Schools (Lower Primary andHigher Primary Schools) in rural areas belongs to Departmentof Education (DoE) while private aided and private un-aidedschools constitute 2.48% and 11.16% respectively. Hencemajority of the schools in rural areas are management bygovernment which 90.18% in case of rural primary schools.

S.No.

Facility Elementary Schools (%)

High Schools (%)

1 Common Toilets 99.72 99.302 Girls’ Toilets 99.90 99.603 Electricity 99.56 92.324 Playground 55.74 76.665 Ramps 79.83 40.056 Library 99.35 96.497 Compound Wall 73.48 63.948 Drinking Water 99.92 99.32

Basic facilities like Toilet, Electricity, Library, andDrinking Water are present in more than 99% of elementary andhigh schools. But there is lack of playground in most of theschools due to space constraint in urban areas and lack offocus on improving sports activities in rural areas. 73% ofelementary schools are not protected by proper compound wall .

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1.1.2 Students EnrolmentIn terms of student enrolment, 100.62 lakhs students areenrolled in various classes across states. Out of this, 83.44%students are enrolled in Primary Schools (1st to 8th) of which54.5% students are enrolled in Government based schools.

  EducationDepartment

SocialWelfare+ LocalBody

Aided Un-Aided

Central +Other

s

StateTotal

Class 1th to 5th

28.92 0.18 5.01 19.44 0.23 53.78

Class 6th to 8th

15.95 0.73 4.87 8.43 0.2 30.18

Class 9th to 10th

6.12 0.4 5.49 4.53 0.12 16.66

Total 50.99 1.31 15.37 32.4 0.55 100.62

In terms of district wise enrolment, Bangalore registeredhighest enrolment followed by Gulbarga at primary level.Except Bagalkot, BangaloreNorth,BangaloreSouth,Belgaum,BelgumChikkodi,Bellary,Bijapur,Gadag and Raichur district , all others districts registeredsteady enrolment or decrease in enrolment. Districts likeYadagiri, Chamarajanagara registered decrease in enrolment.

Dropout rates have increased in states at lower primary stagefrom 1.19 % to 2.56%. Higher dropout rate is observed amonggirls.

1.1.3 TeachersTotal number of teachers sanctioned in Department of Educationin the state is 247451, out of which there are 218198 teachersworking at different level thereby creating a gap of 11.9%teachers in government schools.

LPS HPS High School TotalTeachers Sanctioned

53317 154090 46177 253584

Teachers 46958 137072 39254 223284

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Working

So there is gap of 23,377 teachers at elementary level schoolsin Karnataka. Due to this gap, other parameters like TeacherPupil ratio (TPR) is also effectedaffected. In most of thestates, TP Ratio is at satisfactory level however in some ofthe districts like Yadagir, TP ratio it 1:36.15 which is poorin comparison with the other districts. In Raichur andChamarajanagara district, TP ratio is 30.38 and 25.36respectively at higher primary stage which is comparativelyhigh in comparison with other district.

1.2 Issues and Gap in Education Sector

On the basis of analysis done on education sector in KarnatakaSector, we came across following issues at primary levelschools in terms of quality of education in Karnataka:

High Teacher Pupil Ratio & Student ClassroomRatio:Balanced TPR is required at primary level to ensurequality of education. High TPR value results ininadequate attention to every child in class. Even thoughmajority of the schools in Karnataka have adequateTeacher Pupil ratio (TPR), high TPR in districts likeYadagir (1:36.15) at lower primary level, Raichur(1:30.38) at higher primary level raises concernregarding the quality of education in schools in thesedistricts

High Transition Loss:Transition loss represents failureof movement of children from lower class to higher class.This transition loss can be attributed to 2 factors :

Bad quality of education due to which children arenot able to pass the exams and move on higher class.

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Dropout from school after completing basiceducation.

Either of above reason raises concern regarding thequality of education and inability of education to retainthe children. In Yadagiri district, Transition loss ofchildren from 7th to 8th class in 2012-13 was 28.73% whichis highest in Karnataka. Raichur also has high transitionloss at 14.61%.

Increase in Drop-out Rates: - Drop-out rates in Karnatakahave increased from 1.19% in 2011-12 to 2.56% in 2012-13at lower primary level. At higher primary, Drop-out ratewas +5.40 % in comparison with 4.35% last year.

High Gap between Sanctioned and Working teachers: HighTPR is result of high gap between sanctioned and workingteachers. Most of the revenue in education sectorconsists of teachers’ salary which comes under non-planexpenditure in state government financial budget. Duringthe period of financial constraint, non-plan expenditurebecomes target of cost cutting and hence sanctioned postof teachers in primary and secondary schools are allowedto remain unfilled for years leading to serious scarcityof teachers in the public schools. In Raichur andYadagiri districts, Gap between sanctioned and workingteachers are 1531 and 946 respectively, which is quitehigh. Raichur has highest gap between sanctioned andworking teachers in Karnataka.

Quality of Teachers: Lack of proper training facilitiesfor teachers and granting of more leaves than stipulatedlike half day leave results in teacher not paying enoughattention to teaching children.

Quality of Infrastructure: Even though physicalinfrastructure is present in most of the school, qualityand maintenance of these infrastructures is not good.Presence of good infrastructure including 8 basicfacilities like Common Toilets’, Girls’ Toilet,Electricity, Playground, Drinking Water, Ramps, Libraryand Compound Wall are needed for good learning

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environment. Raichur and Yadagiri district have only76.39% and 75.30% of classrooms in good condition. Also,both these districts scores lowly on Composite Index ofProvision (CIP) for 8 basic facilities and have 84.67%and 85.60% of provision respectively which is well belowthe overall Composite Index for the state.

On the basis of above issues and gaps in providing qualityeducation at primary level, we have finalised Yadagiri andRaichur district for implementation of PPP model in pilotphase. Literacy level in Yadagiri and Raichur are 52.36% and60.46% respectively. Female illiteracy levels exceed that offemale literacy in Raichur and Yadagiri districts. Hence thesetwo districts are appropriate choice for implementation ofpilot phase of PPP model described in coming section.

2 PPP in Primary Education

2.1 Introduction to PPP in education SectorThe primary purpose of PPP in education sector is to leverageto expertise of private players and create a value which isgreater than the sum of the parts. Private players ineducation are considered to provide good quality of education,good management and bring efficiency in the system. Hence,role of private players in improvement of education sector isvital. PPP can be important strategy for government to achievethe quality of education at large scale.

2.2 Proposed PPP ModelThe proposed PPP model is based on services and schoolmanagement model. Under this model, private educationmanagement companies will be responsible for running existingpublic schools in Karnataka and will be responsible formanagement of school operations.

Existing government schools would be selected for theproposed Model School and revamping of the wholeinfrastructure would be done by the Government Rural

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Service Department before a specific deadline as per thecontract signed between State Government and the PrivateParty.

Operations and maintenance of the school would be done bythe private party which is legally competent to run aneducational institute.

Private party will be responsible for operations andmanagement for the first 5 years. After 5 years the stategovernment will have the option of taking the school’soperations and maintenance under its control or handingthe responsibility to the same (provided the servicesduring the first 5 years were satisfactory or not) or toa new private partner for another 3-5 years.

2.2.1 ObjectiveThe objective of schools under this model is given below:

Provide access to high quality education at primary stage atblock level and focusing on all round development ofchildren.

Reduce the gap between sanctioned and working teacher inprimary level school by giving control to private players tohire teacher and maintain appropriate Teacher Pupil ratio.

Inclusion of parents as stakeholders to increase enrolmentof children at primary level.

Increase the standard of teaching by bringing and conductingtraining program on regular basis for teachers.

Maintain and improve the standard of basic facilities in theschool and provide excellent learning environment tochildren.

2.2.2 Overview of modelThe schools would be standardized in terms of allinfrastructure facilities and the basic amenities- teacherratio, usage of ICT, educational environment, appropriatecurriculum and focus on output and outcome. Some of thesalient features of the model school are as follows:

Infrastructure:

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Under the proposed model the existing schools would beconverted into a model school.

Schools to have classes starting from Class 1st to Class 8th

since focus is on primary education. Focus on holistic education covering physical, emotional and

aesthetic development along with the academic development. Infrastructure and facilities in school would satisfy

academic, sports and co-curricular activities. Each classroom will have maximum cap on number of students.

At lower primary level, number of students in class shouldbe restricted to 40 and higher primary level this numbershould be 30.

Class Timing

School timing to be decided after discussion with respectivevillage committee. Ideal timing would be from 8 AM to 4 PMsubjected to change in winter season.

Teachers:

Selection of Principals and Teachers would be done byprivate partner through an independent process to bedeveloped in consultation with State Governments.

The Teacher Pupil Ratio should not exceed 1:30 and theclassrooms will be spacious enough to accommodate at least40 students. However, classroom-students ratio would notexceed 1:40 at lower primary level and 1:30 at higherprimary level.

Fees:

Fees will be determined by a comprehensive bidding processand with the approval of the state regulator to beestablished under this model.

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The governments (state & central) will continue to waivetuition fees for students belonging to socially andeconomically backward sections of the society.

Curriculum:

The schools will have to follow the National CurriculumFramework 2005 and its subsequent versions as adopted byGovernment of India from time to time.

Curriculum followed across schools should be state boardpreferably to bring uniformity across the schools.

The school curriculum would be designed in a way to fosterthe qualities of team spirit, participation abilities,development of soft skills and ability to deal with reallife situations.

Focus on bringing uniformity across multiple primary schoolsby teaching core subjects like Science, Maths and English.Syllabus in this subject to remain uniform across differentschools. If required, bridge-courses may be introduced forweak students.

Basic Facilities:

Mid-Day Meal scheme in collaboration with the private entitywould be run inside the school.

Health Education and health checkup would be provided forthe children.

Special provisions for the disabled children would beprovided along with special teaching staff for suchchildren.

Field trips and educational tours would be an integral partof the curriculum.

The schools may provide for NCC training for students toinculcate the value of nationhood among them, as also tomake them appreciate a disciplined way of life.

No eligibility criteria where every child will be encouragedto attend school irrespective of caste, religion , socialstatus in order to provide an uniform education system

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2.3 Stakeholders Responsibilities

2.3.1 Government The state government would be responsible for revamping

the school infrastructure within a specified period oftime as per the contract with private party.

Also the transport subsidy or free transport would haveto be provided by the state government for the studentscoming from different blocks to school and back to home.

2.3.2 Private PlayerThe entire operations and maintenance will be done by thePrivate Party which is legally competent to run an educationalinstitute. The responsibilities of private party include:

Selection of administrative staff Recruitment and training for teachers Payment of salary to the teaching and administration

staff Maintenance of basic facilities and infrastructures Performance evaluation of students

2.3.3 ParentsAmount transferred to parents by government will acts as asource of revenue for private players. The parents will beable to exert required pressure on concessionaire to performup to their expectations.

2.4 Performance evaluationThe PPP based schools will have annuity based payments linkedwith satisfactorily fulfilment of the pre decided and mutualdecided condition in concession agreement.

The parameters are as follows:

2.4.1 Learning assessment test resultsStructure of the test: In addition to the board examination,the results of independent learning assessment surveys to beconducted in schools for different classes every year would beof prime importance in the success of PPP as an indicator of

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the success of initiative. NCERT learning achievement, ASERtool, TIMSS tests etc which the standard evaluation methodsare done for gauging the aptitude in subjects like Math,Science, and languages can be a good guideline to start with.The focus of this exercise shall be develop “institutionbuilding” approach rather than a narrow audit/inspectionapproach. The assessment will be biannual exercise done ineach school randomly by an independent dedicated team. Theexercise will be done at random and the results will bedocumented and available for scrutiny later. The twosuccessive assessments will have at least four month span andno two papers inside the same educational block may be equal.Also the results shall be shared, published and analyzed toobtain comments, recommendation which can be inculcated in thecurriculum and pedagogy in future. The training workshops willalso be aligned with the findings of assessment results.

This assessment will be centrally controlled by a districtlevel core team having govt. official, a private partyrepresentatives and couple of educational experts. This willbe full time dedicated team accountable for the transparentand timely delivery of results for the whole project.

Weightage:the concessioner will be given payments based on theschool performance in these tests.

Performance-payment matrix:

Case >75% studentsecuredsatisfactoryremark

Between 50-75% studentssecuredsatisfactoryremark

<50% studentgotsatisfactoryremark

Paymentterms

Release 100% + 5% bonus

Release 80% Only 50%

The cost structure: Consider a two member team can doassessment for four schools in week and this assessment beingcarried in two baskets of six weeks each.

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Number of members required for any district having on anaverage of 100 schools = 100/24 which is approximately 12member with one clerk, aggregators, peon etc.

Professional fees: Rs. 240,000 (24 days X 2assessors X Rs. 5000 per day)

Logistics: Rs. 6, 000 x 6 per teamfor six weeks

Materials/Misc: Rs. 4000 x 6 per team for sixweeks

Total per team : Rs. 3 lakhs

For 4 teams, and twice a year; 3 lakhs x2x4 = 24lakhs

2.4.2 Infrastructural facilitiesAvailability and maintenance of basic infrastructure includingrain proof roofed-class rooms, separate toilets for girls andboys, drinking water, proper sanitation and waste disposal,prayer hall/ playground etc. are certain hygiene factorsnecessary for the learning to take place. Maintenance of thesefacilities to an acceptable level will be one of theresponsibilities of concessioner. Well maintained schoolbuildings can become local landmarks. The school can be venuefor panchayat meetings, festival celebration, welfarecampaigns; its neighbourhood can flourish as ration store,bank, etc. as most of the existing schools are located in thecenter of the market place or a bus stop etc. These faceliftefforts will improve the image of the education department andwill boost the whole system. Student having exposed to hygieneand basic infrastructure in theory and practice in school willgo back to their respective houses and practices them. Thesewill be an ideal course of social development through primaryschool being a nodal center.

Performance-payment matrix:

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Case Allinfrastructurefacilities inplace and wellmaintained

Partialsatisfactionw.r.t.infrastructure

Poorlymaintained

Paymentterms

Release 100% + 5% bonus

Release 80% Only 50%

2.4.3 Students and teacher attendancePoor attendance of both teacher and students is a perennialproblem faced specially in remote rural schools. Hence theconcessioner will be chiefly responsible for keeping theattendance high. The payment will be strictly linked with theattendance in the class.

Performance-payment matrix:

Case >75% attendanceof teacher andstudent both

50 – 75%attendance

<50 %attendance ofeither studentof teacher

Paymentterms

Release 100% + 5% bonus

Release 80% Only 50%

2.4.4 Performance in co-curricular activitiesPerformance in co-curricular activities including sports,games, art and music will progressively be encouraged andmonitored. The co-curricular activities will also beencouraged relevant to children. The activities like rainwater harvesting, sanitation, etc. can be taught in additionto course. However this will not be directly included in theperformance evaluation of concessioner.

2.4.5 Recruitment and training of the teachersIn light of the huge deficiency in teaching sector majorly inremote schools, the recruitment and training of the teacherwill take a central role in the whole quality improvementprocess. Concessioner will have to manage existing as well ashire new teacher. An ideal way would be to select personundergone DIET/university courses or cleared entrance like

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Teacher Eligibility Test, followed by an interview. Therecruitment process will be centrally done for each districtand done by independent panel that will have to record thescore of each applicant so as to make the whole processtransparent and free from any favouritism. However reservationas applicable in state can be incorporated at the time ofrecruitment. The remuneration will be decided by concessionerand employment cannot be for less than a year. Again theconcessioner need not have payment terms linked withrecruitment and training process but any teacher securingunsatisfactory remark in the performance mechanism will haveto be removed by concessioner.

2.4.6 Reduction in dropout ratesThe concessioner is fundamentally responsible for increasingthe literacy of the area where he operates the school. Henceto encourage parents to send their wards to school alsoreducing the dropout rates will be one of the projectdeliverables. A target will be set for each educational blockwith in the district and payment will be again linked withachievement of these targets.

Overall performance –payment matrix

Performanceparameters

Rating obtained inthat parameter(C1/C2/C3))

Weightageof theparameter(W)

Weightedrating(C*W)

Learningassessmenttest results

105% or 80% or 75% W1

Infrastructural facilities

105% or 80% or 75% W2

Attendance 105% or 80% or 75% W3Drop outtargets

105% or 80% or 75% W4

Total C*W∑

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In the above proposed model we have considered that the lowestbenefit one can get is 50% however in light of non-conformanceto targets more than twice will lead to revenue linked forthat parameter for a particular school be zero.

2.5 Revenue ModelThe major source of revenue for the concessionaire will befrom the school fees of the students. The school fees will bedetermined though the bidding process and annual appraisalswill be made by the regulator.There will also be a provisionfor an adult literacy programme where the concessionaire willbe paid a fixed amount for education illiterate adults andclear the primary level learning assessment test. Apart fromthat we propose that the private player must be given autonomyto utilise the school assets transferred to him for generationof additional revenue by means of renting the premises forvarious social and cultural events in the locality.

2.5.1 Student FeesThe project nodal agency at the district level will call forbids by the private players for the schools to be put underPPP. The concessionaire bids will be evaluated on technicaland commercial standards and the L1 bidder will be evaluatedfor overall cost efficiency. The concessionaire will be givenautonomy to enrol students and charge them fees as approved bythe regulator.But the concessionaire cannot refuse admissionto students belonging to weaker sections of society. If theschool exceeds its capacity then the nodal agency will beresponsible for setting up new school in that area. We havedone estimations for the costs which an average school withstrength of 450 students will incur on its operations over aperiod of 5 years and the monthly fees works out to be Rs. 322per student (see appendix II). The state / central governmentswill bear the cost of education of a student under followingconditions:

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The student belongs to economically and socially weaker section (BPL, SC/ST/ OBC’s) of the society or his parentscannot bear the cost of his education

The government must waive full tuition fees for girls to promote female literacy

2.5.1.1 Fee Transfer MechanismIn case of students whose fees is waived under this proposalor via various government schemes will be transferred to theconcessionaire through the parents of the student. This ideais the centre piece of this PPP model as it effectively givesthe consumer buying power to the beneficiaries. This ensuresthat claims of good operations are not only on paper and theconcessionaire doesn’t profit by corrupt means.

Under this model the concessionaire will be liable to producethe monthly attendance record of the students within the firsttwo days of the next month. Then the nodal officer willrelease the student fees into the Aadhar accounts of theparents to remit the monthly school fees. If the respectivestudent’s attendance falls below a threshold of 65% then thenodal officer will have the right to penalise theconcessionaire as per the penalties defined under concessionagreement. The concessionaire can always claim the penaltyamount by petitioning to the nodal officer stating the reasonsfor attendance shortfall along with the approval of parentsand the Parent Teacher Body of the school.

In order to tackle the issue of proxy attendances the nodalagency and local body (Gram Sabha / Panchayat) will have theright to carry out surprise inspection to ensure authenticityof attendance records. The parents will also have a right torefuse partial fee payment (upto 50%) by petitioning the localbody/ nodal agency on the grounds of poor performance byconcessionaire. But all such issues must be resolved within aperiod of 45 days by the concerned authority.

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2.5.2 Adult Literacy ProgrammeThe nodal agency can also incorporate adult literacyprogrammes under the purview of this PPP which will act as asource of additional revenue for the concessionaire. Theconcessionaire will be given full autonomy to enrol illiterateadults and educate them to basic primary standards. Theconcessionaire will be paid a fixed fee of Rs. 3000 for everyadult that clears the learning assessment test of the primarylevel. 25% payment will be made at the time of enrolment tobear the costs of books, stationary etc. and rest will be paidon clearing the test. The adults themselves can be givenmonetary incentives under this programme to enrol and clearthese tests.

2.5.3 Renting School InfrastructureThe school infrastructure remains highly underutilised in mostof the cases. The concessionaire will be given full autonomyto utilise the school infrastructure to develop additionalstreams of revenue by renting it of social and cultural eventsprovided that the normal operations of the school are notadversely affected in any way and no damage is done to theproperty. The concerned local body will oversee that thegovernment property is not misused.

2.6 Risk Allocation Framework

Risk Description MitigationRegulatory Risks 

Overlapping Regulatory Authorities

Projects funded bymultiple agencies areplagued with conflictsamongst them.

The nodal agency will beresponsible for ensuringsmooth functioning fromthe establishment side.

Multiple Clearance Points

Private partners complainof delayed clearances dueto a complex web ofclearing agencies

All the initially requiredclearances to be procuredby nodal agency.

Ownership Conflicts

Asset transfers oftenlead to ownership

Concessionaire if rentedthe school premises by the

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conflicts govt. rest of the assetsmust be owned by him.

Procurement Risk

Poorly defined project

The PPP must be a well-defined model withcomprehensive evaluationof risks and performance

The nodal agency mustappoint a technicalconsultant to design theproject specifications.

Delayed Allocation

Government bid appraisalprocess are too slow anddrive investors away

Projects to be allocate ina fixed time bound mannerwell ahead ofoperationalization

Capacity Risks

Client Capacity

When new sectors areopened up for PPP theincoming private playersoften lack requisiteexperience and capacity

Elaborate monitoringmechanism involving allstakeholders along with anindependent regulator

Poor project Management Risk

The nodal agency may nothave the requisitecapacity of manage theproject

Rigorous capacity buildingexercises along withappointment of managementconsultants for initialperiod

References

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1. http://www.business-standard.com/article/economy-policy/2-500- schools-to-be-set-up-under-ppp-model-113072000341_1.html

2. http://www.dnaindia.com/bangalore/1529289/report-literacy-rate- goes-up-across-karnataka-bangalore-is-second-highest

3. “Education in Karnataka 2012-13” – A State-level and District –WiseAnalytical Report

4. “Scaling up Primary Education Services in Rural India: Public Investment Requirementsand Policy Reform” – NirupamBajpai ,RavindraH.Dholakia and Jeffrey D.Sachs.

5. “Report of the working group on private sector participation including PPP in schooleducation 2011” – Department of School Education andLiteracy ,Government of India

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Appendix I- PPP Model

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AppendixII- Annual Revenue Requirement per School

Class Room s per School 6 Sam ple Survey of Schools, 2007Seating Capacity of each CR 30 Govt. Norm sTeachers per School 15 66% full tim e rest para teachersM onths of Operation 9.0 per YearTotal Students 450

Capital Expenditure (in Rs.)M id-day M eals (Utensils) 10,000 Desks 126,000 Rs. 700 per UnitChairs 63,000 Rs. 350 per UnitCup Board 4,200 Rs. 700 per UnitLibrary 50,000 Total 253,200 Annual Cost 50,640 Assum ing avg life of capex as 5 yrs

Recurrent Costs Annual (in Rs.)M aintenance (/CR/yr) 30000 Rs. 5000/CR/Yr.Salary

Full tim e teaching staff 960,000 Rs. 8000 pmPara Teachers 225,000 Rs. 5000 pm for 9 M onths

Sweeping & Allied Staff 94,977 M in. W agesCook 13,500 Rs. 1500 pm

School Adm in Exp 50,000 AnnualM id-Day M eal 20,250 Rs. 5/Student /DayText Books 135,000 Rs. 300/ Student/ YearAnnual Recurring Cost 1,528,727

Total annual costs 1579367Annual Cost per Student 3509.70Operating Charges (upto 10%) 350.97M onthly Fees 321.72

Annual Revenue Requirem ent for average School

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