1. Financing of On-Line Education Initiatives International Finance Corporation Presentation To World Education Market Lisbon, May 2003 Elia Roumani Principal Investment Officer Health & Education Department eroumani@ifc.org http://www.ifc.org

2. IFC Project Screening Business Screen – where project meets commercial objectives – is financially sensible and self-sustainable – and demonstrates role as leader or pioneer Developmental Screen – where project promotes efficiency and innovation – can provide a demonstration effect – may contribute to capacity building – will advance the quality of education – and will complement World Bank Group activities Social Mobility & Poverty Alleviation Screen – enhancing social mobility – promoting educational opportunities to lower income groups & the emerging middle classes – and helping to bridge the digital divide Environmental and Social Screen – compliance with IFC environmental and social standards?

3. Characteristics of IFC Investments Project size and scalability Positive regulatory environment for private investment Future commercial self-sustainability Targeting low to middle / or emerging middle classes Market factors – saleable services that increase access; ‘choice;’ service unmet demand; enhance educational opportunities Scaleable & developmental – increasing institutional capacity/ quality/ relevance of programs/ enrollments

4. Risk Profiling – Some Issues Regulatory issues – potential for change Political uncertainty – negative social climate (conflicts; crime; corruption); lack of transparent policies Economic / Investment climate Market – under/ over supply; competition; negative demographics; pricing affordability; reputation Financial / administrational status and capacity Operational – educational – lack of quality and accreditation systems

5. Build the CampusRenew the Campus “Traditional” Economic Model” Source: 2000 Dow, Lohnes & Albertson, pllc Costs Revenues

6. Start-up Courseware Development New or Enhanced Courseware Cost Source: 2000 Dow, Lohnes & Albertson, pllc; IFC (modified) Technology-Medium Economic Model Costs Revenues

7. Pedagogic Feedback & Review ICT–Technical Specification Course Development Course Delivery Assessment & Evaluation Tutor Support Course Induction Student Support Design / Applications Requirements Teaching & Learning Drive The Use Of Appropriate Technologies

8. Key Investment Issues Investment cycles – courseware, 3 to 4 years – I.C.T. infrastructure – reality of access & cost – sensitivity write-offs 2 to 3 years Demand – quick up-take of student numbers – market shortage of business graduates Quality of program – academic delivery & standards – employability and estimated economic return

9.  Sound Technology Plan/Platform  Secure Systems & Back-up  Technical Support; Maintenance & On-going development  Open systems, scaleable – and user friendly software Technology / Technical Specifications

10. Courseware Development  Design – collaborative process – students & professorate  Low capital in-house investment – with extensive media background  Sound quality review processes planned  Collaboration of teaching professionals in planning assessment for better learning

11. Student Orientation  Students – compulsory meeting for 2 days – prior to start  Focus on building self-confidence – program objectives – use of available resources & virtual library – use of templates, applications & tools – accessing course syllabus – use of labs, discussion ‘rooms’ – mentoring & advisory support – seeking technical support – communication – with professors and study teams – self evaluation

12. Program Delivery & Support  Professional development – adapting to new teaching methods for on-line delivery  Teaching supported by continuous assessment  Student mentoring – strong commitment  Technical support  Regular student contact and feedback (asynchronous)  Clear assessment strategies