Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 20388

Restructuring PAPER

ON A

PROPOSED Project restructuring

of The

Second Education Quality Improvement Program

JANURARY 31, 2008

TO THE

ISLAMIC REPUBLIC OF afghanistan

AUGUST 15, 2015

Education Global practice

SOUTH ASIA region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

ABBREVIATIONS AND ACRONYMS

ACER / Australian Council for Educational Research
DED / District Education Directorate
EMIS / Education Management Information System
EQUIP II / Second Education Quality Improvement Program
ERL / Emergency Recovery Loan
GIS / Geo-referencing Information System
HRMIS / Human Resource Management Information System
ISD / Infrastructure Service Department
MoE / Ministry of Education
PED / Provincial Education Directorate
QEG / Quality Enhancement Grant
SIP / School Improvement Plan
SMD / Social Mobilization Directorate
SMS / School Management Shuras
TTC / Teacher Training College
Regional Vice President: / Annette Dixon
Country Director: / Robert J. Saum
Practice Manager: / Keiko Miwa
Co-Task Team Leader:
Co-Task Team Leader: / Nathalie Lahire
Matiullah (Yama) Noori


Afghanistan

Second Education Quality Improvement Program

table of Contents

Page

A. SUMMARY 5

B. PROJECT STATUS 6

C. PROPOSED CHANGES 7

ANNEX 1: Results Framework and Monitoring 13

DATA SHEET
Afghanistan
Afghanistan - Second Education Quality Improvement Program (P106259)
SOUTH ASIA
Education
.
Report No: / RES20388
.
Basic Information
Project ID: / P106259 / Lending Instrument: / Emergency Recovery Loan
Regional Vice President: / Annette Dixon / Original EA Category: / Partial Assessment (B)
Country Director: / Robert J. Saum / Current EA Category: / Partial Assessment (B)
Senior Global Practice Director: / Claudia Maria Costin / Original Approval Date: / 31-Jan-2008
Practice Manager/Manager: / Keiko Miwa / Current Closing Date: / 15-Aug 2015
Team Leader(s): / Nathalie Lahire
Matiullah Noori
.
Borrower: / Islamic Republic of Afghanistan
Responsible Agency: / Ministry of Education
.
Restructuring Type
Form Type: / Full Restructuring Paper / Decision Authority: / Regional Vice President Approval
Restructuring Level: / Level 2 / Explanation of Approval Authority: / Level 2
.
Financing ( as of 24-Jun-2015 )
Key Dates
Project / Ln/Cr/TF / Status / Approval Date / Signing Date / Effectiveness Date / Original Closing Date / Revised Closing Date
P106259 / IDA-H3540 / Closed / 31-Jan-2008 / 10-Mar-2008 / 20-Mar-2008 / 01-Sep-2012 / 01-Sep-2012
P106259 / TF-91943 / Closed / 14-Aug-2008 / 14-Aug-2008 / 14-Aug-2008 / 31-Dec-2008 / 31-Mar-2009
P106259 / TF-93962 / Effective / 14-Apr-2009 / 14-Apr-2009 / 14-Apr-2009 / 01-Sep-2012 / 15-Aug-2015
Disbursements (in Millions)
Project / Ln/Cr/TF / Status / Currency / Original / Revised / Cancelled / Disbursed / Undisbursed / % Disbursed
P106259 / IDA-H3540 / Closed / USD / 30.00 / 29.24 / 0.76 / 28.86 / 0.00 / 99
P106259 / TF-91943 / Closed / USD / 0.12 / 0.12 / 0.01 / 0.12 / 0.00 / 100
P106259 / TF-93962 / Effective / USD / 408.00 / 408.00 / 0.00 / 299.33 / 108.67 / 73
.
Policy Waivers
Does the project depart from the CAS/CPF in content or in other significant respects? / Yes [ ] / No [ X ]
Does the project require any policy waiver(s)? / Yes [ ] / No [ X ]
.
A. Summary of Proposed Changes
The restructuring paper seeks the approval of the Regional Vice-President to a level II restructuring to introduce changes to Second Education Quality Improvement Project (EQUIP II) (P106259) and amend the project’s Grant Agreement accordingly. These proposed changes include: (a) extend the current Closing Date from August 15, 2015 to December 31, 2016 (cumulative extension of the Additional Financing Grant financed through Afghanistan Reconstruction Trust fund (ARTF) is 28.5 months), (b) revise the project key performance indicators to be more specific and to include most up to date data and information, and (c) make adjustments to project activities in order to reflect only those that can reasonably be completed by the new proposed Closing Date. The proposed restructuring was discussed with the Government during the last supervision mission in April 2015 and was requested by the Government of Afghanistan, in a letter dated August 2, 2015.
Change in Implementing Agency / Yes [ ] / No [ X ]
Change in Project's Development Objectives / Yes [ ] / No [ X ]
Change in Results Framework / Yes [ X ] / No [ ]
Change in Safeguard Policies Triggered / Yes [ ] / No [ X ]
Change of EA category / Yes [ ] / No [ X ]
Other Changes to Safeguards / Yes [ ] / No [ X ]
Change in Legal Covenants / Yes [ ] / No [ X ]
Change in Loan Closing Date(s) / Yes [ X ] / No [ ]
Cancellations Proposed / Yes [ ] / No [ X ]
Change to Financing Plan / Yes [ ] / No [ X ]
Change in Disbursement Arrangements / Yes [ ] / No [ X ]
Reallocation between Disbursement Categories / Yes [ X ] / No [ ]
Change in Disbursement Estimates / Yes [ X ] / No [ ]
Change to Components and Cost / Yes [ X ] / No [ ]
Change in Institutional Arrangements / Yes [ X ] / No [ ]
Change in Financial Management / Yes [ ] / No [ X ]
Change in Procurement / Yes [ ] / No [ X ]
Change in Implementation Schedule / Yes [ X ] / No [ ]
Other Change(s) / Yes [ ] / No [ X ]
Appraisal Summary Change in Economic and Financial Analysis / Yes [ ] / No [ X ]
Appraisal Summary Change in Technical Analysis / Yes [ ] / No [ X ]
Appraisal Summary Change in Social Analysis / Yes [ ] / No [ X ]
Appraisal Summary Change in Environmental Analysis / Yes [ ] / No [ X ]
Appraisal Summary Change in Risk Assessment / Yes [ ] / No [ X ]
.
B. Project Status
EQUIP II has been supported by a SDR18.9 million IDA grant (US$30 million equivalent) in 2008 (closed in 2012), ARTF financing of US$158 million approved in 2009, and ARTF Additional Financing in the amount of US$250 million approved in 2012. As of July 31, 2015, the total disbursement under the ARTF have reached US$300 million (73 percent of grant proceeds). The project’s performance has been rated Moderately Satisfactory for outcomes and Moderately Unsatisfactory for Implementation Performance. The project has made considerable progress in (i) the number of teachers trained, (ii) provision of inputs to schools, (iii) completion of the first-ever learning assessment, and (iv) establishment of information systems including collecting first hand data from schools and provincial directorates. However, reporting on progress of civil works activities supported by the project has not been ideal. In fact only, 868 out of 1,820 schools under EQUIP I, II and AF, have been completed, 618 schools have incomplete items, 110 schools have been stopped and 224 are under construction.
Table 1: Status of School Construction
No / Description / Number of Schools
1 / Total number of schools (EQUIP I, EQUIP II, AF) / 1820
2 / Fully complete schools / 868
3 / Schools where buildings are complete but have incomplete items (to be funded by the GoA) / 618
4 / Schools where construction stopped due to insufficiency of budget (to be funded by GoA) / 110
5 / Under construction / 224
Additional time is therefore needed to complete the civil works. This is the second request for Closing Date extension
The incomplete and stopped schools have already been paid for by the project but were not delivered. These comprise outstanding activities, including latrines, roofing, water facilities, and furniture that need to be completed under the project. Government has made a strong commitment to provide a payment plan to finance these schools under its own budget and complete them before the end of the revised closing date.
Education Management Information System (EMIS) school data accuracy and validity have become an increasing area of concern in recent months and was widely published in the international media. EMIS data verification is currently being conducted and an independent firm is surveying 1,617 schools in 24 Provinces. Along with data verification, the firm will also perform an assessment of the overall quality of EMIS data. Spot checks and audits are being planned under the project extension.
Project implementation has been challenged by procurement and contract management weakness. Under the proposed restructuring, the procurement team will be strengthened in the areas of contract management and quality assurance. The Procurement Directorate will take the responsibility of quality assurance and adherence to agreed procurement arrangements. The project team will also benefit from additional capacity building in procurement. The Acting Project Director and Director from the Finance Department in MoE will attend a two week’s procurement workshop on bank funded projects. Members from the Procurement Directorate, who have not attended the procurement workshop, will attend the procurement workshop before the end of 2015. Also, the project will strengthen its contracts management team and ensure an effective contract management and monitoring system. The project will prepare a contract management manual by November 2015. The contract management team will attend a three day workshop by November 2015.
The financial management of the project rests with the Finance and Administration unit of the Ministry of Education (MOE); however, they rely on the program units for documentation of expenditure. The project suffered from weak internal controls especially in provinces. The internal and external audit reports have highlighted serious control issues and misappropriation of funds in the recruitment processes of individual consultants, mismatch between financial and physical progress in 110 community contracts for school buildings and a set of incomplete schools which still lack certain items such as desks, chairs, boundary walls and etc (aide memoire from March ISM). The project management team has been struggling to address those issues. Liquidation of advances in the provinces has been very inefficient and cumbersome. The project has un cleared advances since 2013. The project needs to strengthen their financial management system through rigorous monitoring and supervision of activities. Follow up of audit recommendations and timely corrective action would also set the project on the right path.
The government has promised strong commitment in channeling enough funding to complete all schools for which the project has paid before the closing date of the project.
A proposed action plan for the remaining time of Project implementation was discussed with and provided by MOE (Annex II) and accepted by the Bank.
.
C. Proposed Changes
.
Development Objectives/Results
Project Development Objectives
Original PDO
The project development objective is to increase equitable access to quality basic education especially for girls through school grants, teacher training and strengthened institutional capacity with support from communities and private providers.
Current PDO
The objective of the Project is to assist the Recipient in increasing equitable access to quality basic education, especially for girls.
Change in Project's Development Objectives
Change in Results Framework
Explanation:
The results framework is being revised to more accurately reflect and measure the PDO. Some indicators are being dropped, one new indicator has been added, some indicators revised for clarity and targets of some indicators revised. Please see Annex 1 a and 1.
.
Financing
Change in Loan Closing Date(s)
Explanation:
The Ministry of Finance formally requested in a letter dated August 2, 2015, the extension of the Closing Date from August 15, 2015 to December 31, 2016. This request was made to ensure that the construction of the remaining civil works will be completed by the project Closing Date.
An appraisal of the revised implementation plan has been carried out. With the extension of the closing date, and Government’s commitment to finance the incomplete schools, all ongoing civil works would be able to be completed.
Ln/Cr/TF / Status / Original Closing Date / Current Closing Date / Proposed Closing Date / Previous Closing Date(s)
IDA-H3540 / Closed / 01-Sep-2012 / 01-Sep-2012 / 01-Sep-2012
TF-91943 / Closed / 31-Dec-2008 / 31-Mar-2009 / 31-Dec-2008
TF-93962 / Effective / 01-Sep-2012 / 15-Aug-2015 / 31-Dec-2016 / 01-Sep-2012
Reallocations
Explanation:
The restructuring includes a change from two disbursement categories to one under the ARTF AF. The girl retention cash grant category is no longer required because this activity is being cancelled as it will be included in the next phase of the project, estimated to be approved in 2017.
Ln/Cr/TF / Currency / Current Category of Expenditure / Allocation / Disbursement % (Type Total)
Current / Proposed / Current / Proposed
TF-91943 / USD / Con Services & Trg / 115,885.00 / 115,885.00 / 100.00 / 100.00
Total: / 115,885.00 / 115,885.00
TF-93962 / USD / GD,WK,CS,SGrants,TRG,IOC / 406,500,000.00 / 408,000,000.00 / 100.00 / 100.00
GIRL RETENTION CASH GRANTS / 1,500,000.00 / 0.00 / 100.00 / 0.00
Designated Account / 0.00 / 0.00 / 0.00 / 0.00
Total: / 408,000,000.00 / 408,000,000.00