World Bank Document...DFID 41.80 2.40 GIZ 3.00 3.00 IDA 20.00 20.00 KFW 11.80 9.50 NETH 14.80 6.60 Total 103.40 50.20 3. Borrower Organization Department Location Republic of Yemen

Document of

The World Bank

Report No: 66463 v1

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF

SECONDARY EDUCATION DEVELOPMENT AND GIRLS ACCESS PROJECT

APPROVED MARCH 18, 2008

TO THE

REPUBLIC OF YEMEN

April 2, 2012

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CURRENCY EQUIVALENTS

(Exchange Rate Effective November 22, 2011)

Currency Unit = Yemeni Rial (YR)

SDR1 = US$1.5674

YR 217.87 = US$1.0

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AWP Annual Work Plan

BEDP Basic Education Development Project

CCT Conditional Cash Transfer

DFID UK Department for International Development (DfID)

DPs Development Partners

EIRR Economic Internal Rate of Return

EKN Embassy of the Kingdom of The Netherlands

GCC

GIZ

Gulf Cooperation Council

German Agency for International Cooperation

GoY Government of Yemen

IDA International Development Association

IFR Interim Financial Report

IMSC Inter Ministerial Steering Committee

KfW Kreditanstal für Wiederaufbau (German Development Bank)

MoE Ministry of Education

PAU Project Administration Unit

PDO Project Development Objective

PMU Public Works Project Management Unit

PWP Public Works Project

SCG School Community Grants

SEDGAP Secondary Education Development and Girls Access Project

SOE Statement of Expenditures

TOR Terms of Reference

YR Yemeni Rial

Regional Vice President: Inger Andersen

Country Director: A. David Craig

Sector Manager / Director: Mourad Ezzine /Steen Lau Jorgensen

Task Team Leader: Kamel Braham

REPUBLIC OF YEMEN

SECONDARY EDUCATION DEVELOPMENT AND GIRLS ACCESS PROJECT

P089761

CONTENTS

Page

A. SUMMARY ......................................................................................................................................... 1

B. PROJECT STATUS ............................................................................................................................ 2

C. PROPOSED CHANGES .................................................................................................................... 2

D. APPRAISAL SUMMARY ................................................................................................................. 8

ANNEX 1: RESULTS FRAMEWORK AND MONITORING ................................................................ 9

ANNEX 2: REALLOCATION OF PROCEEDS .................................................................................... 11

ANNEX 3: FINANCIAL AND ECONOMIC ANALYSIS ...................................................................... 13

Restructuring Status: Draft Restructuring Type: Level two Last modified on date : 04/02/2012

1. Basic Information Project ID & Name P089761: RY Sec. Educ. Dev. and Girls Access

Country Yemen, Republic of

Task Team Leader Kamel Braham

Sector Manager/Director Mourad Ezzine

Country Director A. David Craig

Original Board Approval Date 03/18/2008

Original Closing Date: 01/31/2015

Current Closing Date 01/31/2015

Proposed Closing Date [if applicable]

EA Category B-Partial Assessment

Revised EA Category B-Partial Assessment-Partial Assessment

EA Completion Date 12/20/2005

Revised EA Completion Date

2. Revised Financing Plan (US$m) Source Original Revised

BORR 12.00 8.70

DFID 41.80 2.40

GIZ 3.00 3.00

IDA 20.00 20.00

KFW 11.80 9.50

NETH 14.80 6.60

Total 103.40 50.20

3. Borrower Organization Department Location

Republic of Yemen Ministry of Planning and

International Cooperation

Yemen, Republic of

4. Implementing Agency Organization Department Location

Ministry of Education Project administration unit Yemen, Republic of

5. Disbursement Estimates of IDA Credit (US$m) Actual amount disbursed as of 03/27/2012 1.13

Fiscal Year Annual Cumulative

2011 0.00 1.13

2012 0.20 1.33

2013 5.77 7.10

2014 11.00 18.10

2015 1.90 20.00

Total 20.00

6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N

Does the restructured projects trigger any new safeguard policies? If yes, please select

from the checklist below and update ISDS accordingly before submitting the package.

N

7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes

To improve gender equity, quality, and efficiency of secondary education in selected districts with

a particular focus on girls in rural areas.

7b. Revised Project Development Objectives/Outcomes [if applicable]

1

YEMEN: SECONDARY EDUCATION DEVELOPMENT AND GIRLS ACCESS PROJECT

RESTRUCTURING PAPER

A. SUMMARY

1. The proposed changes aim at reducing and refocusing project activities following the country

unrest and the withdrawal of funding from DFID and the Embassy of the Kingdom of the Netherlands

(EKN). As a result, the number of components will be reduced and activities will be reprogrammed. The

restructured project will be limited to the 50 schools and the five related governorates identified for the

first phase of the Secondary Education Development and Girls Access Project (SEDGAP)

implementation, under its initial design. Funds contributed by the IDA Credit and the Netherlands Trust

Funds will be reallocated.

2. The Secondary Education Development and Girls Access Project (SEDGAP, P089761, Cr. 4401-

YEM) was approved by the Board on March 18, 2008 for US$20 million equivalent, and became

effective on January 6, 2009. It was followed by co-financing in the amount of US$14.8 million

equivalent by EKN, which became effective on June 6, 2009. Parallel financing for the project was also

provided from DFID (US$41.8 million equivalent), the German Development Bank (KFW) (US$11.8

million equivalent), GIZ (in kind contribution of US$3 million equivalent), and the Republic of Yemen

(US$12 million equivalent). Together the “Development Partners” (DPs) planned to contribute US$103.4

million equivalent. To date, the project has disbursed US$11.2 million equivalent.

3. Available funding for project activities has been reduced by about one half. On September 21,

2010, the Embassy of the Kingdom of the Netherlands (EKN) informed the Bank of its decision to revise

its contribution to SEDGAP from US$14.8 million to US$7.0 million,1 and requested that the End

Disbursement Date of the Administration Arrangements between EKN and the IDA be revised from May

31, 2015 to June 30, 2013, and that the Closing Date of the related Co-Financing Trust Fund (TF094223)

between IDA and the Republic of Yemen (GoY) be revised from November 30, 2014 to December 31,

2012. During the November 2011 restructuring mission, EKN indicated that the Grant Closing Date

could, however, be extended to December 31, 2013, with a corresponding End Disbursement Date of June

30, 2014. On March 7, 2011, DFID also informed the Ministry of Education (MOE) and other DPs of its

full withdrawal from SEDGAP by the end of the month. The remaining funds available to support the

project amount to US$50.2 million equivalent with contributions from IDA, EKN, KfW, GIZ, and GoY.

It is worth noting that GIZ’s US$3 million in-kind contribution has already been fully executed.

4. Yemen has been experiencing social and political unrest since March 2011. The country situation

has had an impact on DPs’ activities to support the education sector. Most of the DPs evacuated their

international staff and suspended all or some of their support in early 2011. Since April 2011, EKN

suspended its disbursements to governmental organizations, and the World Bank and KfW have slowed

down and applied extreme caution in their disbursements. While KfW continued disbursing, the World

Bank suspended officially all its disbursements to Yemen projects on July 28, 2011, with the exception of

operating budgets for a limited number of projects, including the Basic Education Development Project

which uses the same Project Administrative Unit (PAU) as SEDGAP. Although the impact of such

situation on project implementation has been variable depending on the governorate, overall it has

resulted in substantial delays.

5. The situation in the country has improved since the signature of the Gulf Cooperation Council

(GCC) sponsored agreement in November 2011 and the appointment of a new coalition government in

1 Total contribution from EKN is US$7.0 million. However, US$385,000 of these funds are allocated to the World Bank for

the administration of the Trust Fund. This leaves US$6.615 million to finance actual project activities.

2

December 2011. After a re-assessment of the country situation, the Bank determined that the

extraordinary situation which had given rise to the suspension of disbursements had ceased to exist and

lifted suspension of disbursements for all projects in Yemen on January 20, 2012. EKN also lifted the

suspension of its disbursements in February 2012.

B. PROJECT STATUS

6. Civil Works. Civil works for 44 schools out of 50 planned in the Phase I governorates (Ibb,

Lahej, Taiz, Abyan and Hadramout) have already been initiated with an overall completion rate of

approximately 28% to date. A total of about 90 schools in 30 districts (9 governorates) were initially

targeted. The 30 districts were selected based on their low performance in secondary education measured

in terms of retention rates and gender parity index.

7. School Community Grants (SCGs). The preparation work for operating and delivering SCGs

has been completed, including the first round of training for concerned MOE staff to implement an

awareness campaign. The first transportation grants for 2,500 boys and 2,800 girls have been distributed

to 50 schools for the first semester of the academic year 2010/2011; the remaining payments for this

scheme were delayed due to the suspension of disbursement. In addition, 89 female teacher assistants

have been contracted in 39 schools. The preparation for the implementation of Conditional Cash

Transfers (CCT) for girls G4-12 and boys G10-12 has been completed with the database of eligible

students developed; however, this activity had been put on hold given the suspension of disbursement.

The remaining payments and training for implementation, supervision and monitoring have also all been

suspended.

8. Training. GIZ in-kind contribution to the project has been completed with: (i) overall

development of the training framework and planning, implementing and monitoring training events; (ii)

the development of training of trainers packages for science subjects (mathematics, physics, chemistry,

biology), school level leadership, supervisors/ trainers; and (iii) the training of master trainers, trainers

and teachers (about 1,050) on the various training subjects covered by this component. A baseline study

(2009) and Results Based Monitoring study (2011) were also completed.

9. Disbursement. The project has disbursed approximately US$11.2 million equivalent (of which

US$1.13 million IDA), representing 23.7 percent out of the reduced allocation of US$47.2 million

equivalent up to the November 2011 mission.

C. PROPOSED CHANGES

10. Amendments are required both to the Financing Agreement (Cr. 4401), dated June 16, 2008,

between IDA and Republic of Yemen and to the Grant Agreement (TF094223), dated May 17, 2009,

between IDA and Republic of Yemen as follows:

Results/indicators

11. The results indicators have been revised (see Annex 1). The PDO Level Results Indicators now

read as follows:

(a) Gender parity index of secondary education access rates in the project districts increased from

0.42 to 0.66;

(b) G10 to G12 male retention rate in project districts improved from 80.6% to 85.4%;

(c) G10 to G12 female retention rate in project districts improved from 84.2% to 89.1%;

3

(d) Average score in mathematics and science tests (customized tests designed by GIZ) for a sample

of G11 students improved from 19.3% in 2009 to 40% in 2015.

Components

12. The project components have been revised in order to adjust targets to available funding, simplify

project design and reduce the number of activities with a view to optimize impact. Activities planned

under the original Component 3 have been removed given the country and sector current situation which

is not conducive to carrying out the related policy development activities. Other activities have been re-

organized under two main components addressing the following issues: (i) improving equity and reducing

gender gaps (through the financing of school infrastructure and demand-side interventions); and (ii)

quality. A comparison of original and revised components is provided in the table below:

Initial Project Components Restructured Project Components

Component 1: Improving Equity and Reducing Gender Gaps

(US$74.1 million equivalent).

1. Improvement of school facilities, including classrooms,

science and computer laboratories and multi-purpose rooms

through: (a) the carrying out of works for the extension,

rehabilitation and upgrading of existing school facilities and

provision of school furniture; and (b) the provision of

learning equipment and learning materials to upgrade such

school facilities.

2. (a) Developing the Operations Manual, conducting

awareness campaigns and building capacity at the

Governorate, district and community levels to manage,

supervise and monitor the use of the School Community

Grants, through the provision of consultant services and

training; and (b) provision of School Community Grants to

finance targeted incentives which include: (i) subsidies to

arrange transportation to school; (ii) financing eligible

contractual female staff in co-educational schools; and (iii)

conditional cash transfers to girls in grades 4-12 and to boys

in grades 10-12 in selected districts within the Project Area.

Component 1: Improving Equity and

Reducing Gender Gaps (US$33.6 million

equivalent).

No change in component description.

Targets revised as per the updated

Results Framework.

Component 2: Enhancing the Quality of Service Delivery

(US$23.4 million equivalent).

1. Provision of consultants’ services and training for

developing capacity building to improve teaching and

learning practices in the classroom through: (a) the

identification and development of upgraded teaching and

learning materials for the existing curriculum based on the

findings of the current textbook revision from Grades 1 to 12;

(b) the development and delivery of training to support

teachers and school teams, including the related training and

professional development of trainers and supervisors; (c) the

strengthening of school principals’ capacity to lead and

Component 2: Enhancing the Quality of

Service Delivery (US$11.1 million

equivalent).

1. Provision of learning equipment and

material to selected schools; and

2. Capacity building of teachers,

principals and supervisors in selected

schools to improve teaching and learning

practices in the classroom.

.

4

manage schools; and (d) the strengthening of supervisors’

capacity to monitor service delivery.

2. Strengthening the learning assessment system by

introducing new examinations in the school system and

strengthening the capacity at the school level to prepare and

conduct assessments of student performance based on the

existing syllabi, texts, and learning materials, through the

provision of consultant services, training and goods.

3. Developing capacity building at the central and

Governorate levels to improve planning, programming and

data collection and analysis, through the provision of

consultants’ services, training and goods.

Component 3: Supporting Secondary Education Policy

Development (US$1.5 million equivalent).

Provision of goods, consultants’ services and training for

supporting the secondary education policy development and

the preparation for long-term reform by:

(1) conducting reviews of in-service and pre-service training

of teachers; (2) preparing a curriculum framework policy

document based on a comprehensive review of the current

streams and curriculum; (3) carrying out a feasibility

assessment for developing a regulatory framework to

encourage private sector to invest in secondary education;

and (4) conducting tracer studies on secondary education

graduates to assess the effectiveness of secondary education

outcomes.

Component 3: Project Management

(US$2.4 million equivalent)

Supporting and strengthening the

capacity of the PAU to carry out the

fiduciary, monitoring and reporting duties

required for the Project management.

Estimated costs for project management

have been revised to better reflect PAU’s

staffing and operating costs

requirements.

Activities initially planned under

Component 3 of the original project will

not be included in the restructured

project. Some of these activities were

started before restructuring, and US$0.1

million related to these activities were

disbursed.

Component 4: Project Management and Monitoring (US$4.4

million).

Supporting and strengthening the capacity of the PAU to

carry out the fiduciary, monitoring and reporting duties

required for the Project management.

Original Component 4 has become

Component 3 under the restructured

project.

13. Some activities under the original Component 3, for a total amount of US$143,186, have already

been executed under SEDGAP, but will not be included and continued under the restructured project.

Financing

5

Project Costs (US$m. equivalent)

Components/Activities Current

Proposed 1/

Initial Component 1: Improving equity and reducing gender gaps

Revised Component 1: Improving equity and reducing gender gaps 74.1 33.6

Initial Component 2: Enhancing the quality of service delivery

Revised Component 2: Enhancing the quality of service delivery

23.4

11.1

Initial Component 3: Supporting Secondary Education Policy

Development

Revised Component 3: Project Management 1.5

2.4

Initial Component 4: Project Management 4.4 -

Activities executed under initial project but not included in

restructured project description - 0.1

Total 103.4 47.2 1/ GIZ contribution had been fully executed at the time of project restructuring and was therefore removed from restructured

project costs.

o Financing Plan

14. The financing plan has been revised as follows:

Donor Initial Contribution

in US$m equivalent1/

Restructured Project

in US$m equivalent1/

IDA 20.0 20.0

The Kingdom of the Netherlands 14.8 6.62/

KfW 11.8 9.5

DFID 41.8 2.4

GOY 12.0 8.7

GIZ 3.0 3.0

Total 103.4 50.2 1/ Contributions of KfW and DFID are in EUR, and the IDA credit is in SDR. Therefore, the financing volume in US$ is an

estimate based on November 22, 2011 exchange rates. 2/ Total contribution from the Embassy of the Kingdom of the Netherlands is US$7.0 million. However, US$385,000

equivalent from these funds is allocated to the World Bank, for the administration of the Trust Fund. This leaves US$6.615

million to finance actual project activities.

o Disbursement arrangements

15. The Project Administration Unit (PAU) and the Public Works Project Management Unit (PMU)

will continue using the pooled financing mechanism; however it is proposed to change the disbursement

method from the IFR method to the SOE (Statement of Expenditures) method. This will enable the PAU

and PMU to submit withdrawal applications for advances, replenishments, and documentation of the

project’s expenditures incurred. The project would also be able to submit withdrawal applications for

direct payments accompanied by the required supporting documentation. Each implementing agency of

the project (PAU and PMU) maintains adequate financial management arrangements through: (i)

retaining adequate staffing arrangements; (ii) maintaining adequate internal control procedures based on

an acceptable Financial Management Manual; (iii) maintaining an automated accounting system capable

of recording and reporting on all project transactions; and (iv) contracting an external auditor based on

acceptable terms of references. Based the November 2011 supervision mission, the project's financial

management arrangements were found to be “Moderately Satisfactory". The change of disbursement

method from IRF to SOE is to overcome the difficulty in estimating cash forecasts, causing the amounts

requested in the IFRs to be significantly different from the actual amounts disbursed by both agencies

6

(PAU and PMU). The cash forecasts are prepared quarterly for the upcoming six months according to the

MOE's Annual Work Plans, which have tended to be overstated and difficult to achieve since the

beginning of this project. In addition, the PAU is familiar with the traditional transactions-based method

in the implementation of another World Bank financed project (the Basic Education Development

Project). All these changes and any necessary adjustments will be detailed in an amended Disbursement

Letter for both the Credit and Grant portions of the Project.

16. There are no outstanding project audit reports. All required project annual audit reports were

submitted to the Bank; the last one was received by the Bank and covers the period ending December 31,

2010, with unqualified "clean" opinion. It was reviewed by the Bank and found satisfactory.

o Reallocations

17. The table below reflects the reallocation of the proceeds from the IDA Credit.

IDA Credit 4401-YEM

Category of Expenditure Allocation

in SDR

% of Financing

(inclusive of taxes)

Current Revised Current Revised Current Revised

1. Goods under:

(a) Part A.1(a) of the Project

(b) Other Parts of the Project

830,000

1,576,000

676,500

1,729,300

20% or such Eligible

Expenditures as the

Association may determine

from time to time

Such percentage as the

Association shall

determine from time to

time

2. Works under Part A.1(a) of the

Project

5,423,000 6,539,200 20% or such Eligible

Expenditures as the


from time to time


Association shall


time

3. Consultants’ services under:



271,000

638,000

191,400

383,440


Expenditures as the


from time to time


Association shall


time

4. Training 1,885,000 1,410,000 12% or such Eligible

Expenditures as the


from time to time


Expenditures as the


from time to time


Association shall


time

5. Incremental Operating Costs

incurred by:

(a) PAU

(b) PMU

319,000

350,000

331,760

216,300


Expenditures as the


from time to time


Association shall


time

6. School Community Grants 830,000 1,282,100 20% or such Eligible

Expenditures as the


from time to time


Association shall


time

7. Unallocated 638,000 0

Total Amount 12,760,000 12,760,000

18. The table below reflects the reallocation of the proceeds from the Kingdom of the Netherlands

Trust Fund.

7

The Netherlands Trust Fund TF094223 (Cofinancing)


in US$

% of Financing

Current Revised Current Revised Current Revised 1. Goods under:

(a) Part A.1(a) of the Project (b) Other Parts of the Project

999,000 1,701,000

350,300 900,000

14% or such Eligible Expenditures

as the Association may determine from time to time


Association shall determine from time to

time

2. Works under Part A.1(a) of the

Project

6,000,000 3,390,000 14% or such Eligible Expenditures




time

3. Consultants’ services under: (a) Part A.1(a) of the Project


240,000

560,000

99,000

199,000

14% or such Eligible Expenditures as the Association may determine

from time to time

Such percentage as the Association shall


time

4. Incremental Operating Costs incurred by:

(a) PAU

(b) PMU

289,000

312,000

172,000

112,200

12% or such Eligible Expenditures as the Association may determine

from time to time

12% or such Eligible Expenditures

as the Association may determine

from time to time



time

5. Training 3,000,000 730,000 14% or such Eligible Expenditures




time

6. School Community Grants 924,000 662,500 14% or such Eligible Expenditures as the Association may determine

from time to time



time

Total Amount 14,025,000 6,615,000

19. The financing percentages for each donor will be determined in the Annual Work Plans and

Budget, which shall be submitted to the Development Partners, for approval, by December 31 of each

year. Approval of the Annual Work Plan and Budget will be a condition of disbursement for the Credit

and the Grant. The first Annual Work Plan was due by March 15, 2012 and was received on time.

20. In addition, the definition of “Incremental Operating Costs incurred by the PMU” will be revised

both in the Financing Agreement and the Grant Agreement to include “office rent” and “salaries of PMU

staff”, but excluding the salaries of officials of the Recipient’s civil service.

Procurement. Additional methods for procurement of consultant services have been provided by

including ‘Quality Based Selection (QBS)’ and ‘Fixed Budget Selection (FBS)’ under ‘Other

Methods of Procurement of Consulting Services’. The PAU and the PMU will revise the

procurement plan prepared during the restructuring mission by March 15, 2012. The procurement

plan uses updated thresholds for the agreed methods of procurement and for prior reviews by

IDA.

Safeguards: There is no change to the safeguard category as a result of this restructuring. All

civil works financed under the restructured Project are already covered under the current

Environmental Management Plan.

Implementation schedule

21. The project implementation schedule was revised with the Annual Work Plan.

8

D. APPRAISAL SUMMARY

Economic and financial analysis

22. The economic and financial rationale for the project at appraisal remain valid: (i) the project is

expected to have a positive rate of return; (ii) it is also expected to have positive externalities related to

better girls education; and (iii) it will fill a substantial share of the government resources gap to finance its

secondary education strategy. The Economic Internal Rate of Return (EIRR) has been recalculated since

the restructured project has a much lower project cost with the scope of the project also reduced. The

estimated benefits of the project still far exceed the costs, with an EIRR of 17.0%, compared to the initial

appraisal EIRR of 13.7% indicating economic viability of this project (see Annex 3 for more detail).

Technical

23. Although the targets have been revised (see Result Framework), the project development

objectives remain the same: to support the government in improving gender equity, quality and efficiency

of secondary education. Project design is still highly relevant as there was no significant change in the

conditions prevailing in the country’s secondary education since project appraisal. Beside the reduction in

scope, the main change in project activities is related to in-service teacher training activities, where

qualifying pedagogy training for teachers of the project schools was added. Indeed, large numbers of

secondary school teachers have been recruited among university graduates in specific disciplines such as

mathematics and sciences without having received any specific training in teaching. This training will

provide relevant teachers from project schools with a six-week intensive training module in pedagogy that

will be delivered during school breaks.

Risks

21. The Project Appraisal Document Risk Assessment Table was revised as follows:

Risk

Risk Mitigation Measures

Risk Rating

with

Mitigation

Continuation of political and

security turmoil

Civil works and CCT have been implemented in the past year despite the unrest. In

addition there is flexibility in the training program to adapt to the situation in the potential

conflict areas.

High

Political interference in

project implementation at all

levels

Signed protocol for continuing participation in the project by governorates and districts

enforced by IMSC. Pre-identification of proposed intervention sites followed by

engineering surveys to confirm site election and consultation with GEO and DEO staff

prior to effectiveness. If current project staff are replaced by new political leadership, the

Bank will ensure that the new proposed staff is fully qualified and trained.

High

Possible delays in

counterpart funding

Commit timely release of GoY contribution to the project through the MoE. Ensure

adequate budget provision for the following GoY FY by supporting such dialogue.

High

Further reducing in project

funding

There is more flexibility the determination of annual donor contribution, in order to meet

the restrictions on some contributions.

Moderate

Weak technical and

institutional sustainability

Implementation to be complemented with intensive training and capacity building by the

PAU, particularly at the governorate and district level.

Substantial

Insufficient intake of

students, especially girls, to

10th grade

BEDP is addressing the low completion rates from Grade 9, especially of girls in rural

areas; Fine tune the SEDGAP’s incentive targeting mechanisms under the SCG, including

more appropriate dissemination campaigns and more active involvement of the Fathers’

and Mothers’ Councils.

Moderate

Weak financial management

capacity for financial

planning, recording and

reporting which could

increase the risk of ineligible

expenditures and

misappropriations

The project is implemented through the use of the PAU and PWP structures, which have

sufficient experience in implementing World Bank-financed projects. Their departments,

units and staff, including financial staff, are used for implement SEDGAP. The project’s

accounts will be reviewed quarterly and audited annually by an independent private

external auditor acceptable to the World Bank. Training in budget planning will be

provided to PAU and PWP staff. Expenditures are reviewed “ex ante” by MOF staff.

Moderate

9

Annex 1: Results Framework and Monitoring

YEMEN SECONDARY EDUCATION AND GIRLS ACCESS PROJECT

Project Development Objective (PDO):

The objective of the project is to support the Government of Yemen’s program for improving gender equity, quality, and efficiency of secondary education in selected districts with a particular

focus on girls in rural areas.

Revised Project Development Objective: No change

PDO Level Results Indicators* C

ore

D=Dropped

C=Continue

N= New

R=Revised

Unit of

Measure Baseline

Cumulative Target Values**

Frequency

Data

Source/

Method

ology

Responsib

ility for

Data

Collection

YR 1 YR 2

YR3 YR4 YR5 YR6

Indicator One:

Gender parity index of

secondary education access

rates in the project districts

increased from 0.42 to 0.66.

C

C 0.42

0.50 0.53 0.56 0.62 0.64 0.66 Annual MOE

AES MOE TO

Indicator Two:

G10 to G12 male retention rate

in project districts improved

from 80.6 to 85.4 (%)

C

80.6 80.9 81.2 81.5 82.8 84.1 85.4 Annual MOE

AES MOE TO

Indicator Three:

G10 to G12 female retention

rate in project districts

improved from 84.2 to 89.1(%)

C

84.2 84.5 84.8 85.1 86.5 87.8 89.1 Annual MOE

AES MOE TO

Indicator Four:

Average score in Mathematics

and Science Test for a sample

of G11 students2

R

19.3% 27.6% 40% GIZ Independent

Study

GIZ in

collaboration with

MOE

GIZ

Independent Study

INTERMEDIATE RESULTS

Intermediate Result (Component One):

Civil works programs

(including civil works,

furniture, and equipments)

completed in 44 schools. a

C

C

n/a 0 0 44 44 44 44 Annual Progress

Report PWP/ PAU

5,200 students attending the

project schools using the

transportation scheme provided

by the SCG

C

0 1,000 3,000 4,100 5,000 5200 Annual Progress

Report PAU

89 female staff financed

through the SCG C

0 24 60 80 85 89 Annual Progress

Report

General

Education

Sector/ PAU

2 Standard test conducted through GIZ survey on a sample of 24 schools in 3 governorates: Ibb, Lahej and Taiz

10

Intermediate Result (Component Two):

30,000 teachers trained

(cumulative). a)

D Days n/a 0 500 2,000 8,000 15,000 30,000 Annual Progress

Report

Training

Sector/ PAU

60% of trained teachers using

at least 60% of teaching skills

taught through training.

D Binary Non-

existent

Study #1

launched b

Baseline

obtained

Study #

2 launched

60%

targets met

2nd, 5th year Indepen

dent Study

Curriculum

and Inspection

Sector and

COME

No of schools equipped with

Science Labs

N n/a 0 10 20 30 40 50 Annual

Progress

Report

Training

Sector/ PAU


Computer Labs N

0 10 20 30 40 50 Annual Progress

Report

General

Education

Sector/ PAU


Libraries N

0 10 20 30 40 50 Annual Progress Report

General Education

Sector/ PAU

Number of teachers trained in

subject modules in 5

governorates

N

250 1100

5760 11500 17267

Curriculum

and

Inspection

Sector and

COME

Number of teachers from 44

schools trained on pedagology

training certification

N 500 1000 1500

Annually Decree

MOE

Curriculum

Sector

Average performance of

teachers from the 44 schools in

classroom observation test.

N 54.8 60% 70%

2nd, 5th year Independent Study

Curriculum

and

Inspection Sector and

COME

Revised Component Two

Intermediate Result (Initial Component Three):

Curriculum framework policy

document prepared D

n/a No No No No No Yes Annually Decree MOE –Curri

Sector

Feasibility assessment for

private sector regulatory

framework undertaken

D n/a No No No No Yes Yes Annually Study

Report

MOE GE

Sector

*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)

**Target values should be entered for the years data will be available, not necessarily annually

.

11

Annex 2: Reallocation of Proceeds

_______________________________________________________________________

YEMEN: SECONDARY EDUCATION DEVELOPMENT AND GIRLS ACCESS PROJECT

(P089761)

1. Proceeds for the Project (Cr. 4401-YEM and TF094223), P089761, will be reallocated as

follow:

IDA Credit 4401-YEM


in SDR

% of Financing

(inclusive of taxes)


1. Goods under:

(a) Part A.1(a) of the

Project

(b) Other Parts of the

Project

830,000

1,576,000

676,500

1,729,300


Expenditures as the

Association may

determine from time

to time


Association shall

determine from time

to time

2. Works under Part A.1(a) of

the Project

5,423,000 6,539,200 20% or such Eligible

Expenditures as the

Association may

determine from time

to time


Association shall

determine from time

to time


(a) Part A.1(a) of the

Project

(b) Other Parts of the

Project

271,000

638,000

191,400

383,440


Expenditures as the

Association may

determine from time

to time


Association shall

determine from time

to time


incurred by:

(a) PAU

(b) PMU

319,000

350,000

331,760

216,300


Expenditures as the

Association may

determine from time

to time


Association shall

determine from time

to time

5. Training 1,885,000 1,410,000 12% or such Eligible

Expenditures as the

Association may

determine from time

to time


Expenditures as the

Association may

determine from time

to time


Association shall

determine from time

to time

6. School Community Grants 830,000 1,282,100 20% or such Eligible

Expenditures as the

Association may

determine from time

to time


Association shall

determine from time

to time

7. Unallocated 638,000 0

Total Amount 12,760,000 12,760,000

12

The Netherlands Trust Fund TF094223 (Cofinancing)

Category of Expenditure Allocation (in US$) % of Financing


1. Goods under:



999,000

1,701,000

350,300

900,000


Expenditures as the


from time to time

Such percentage

as the Association

shall determine

from time to time

2. Works under Part A.1(a) of

the Project

6,000,000 3,390,000 14% or such Eligible

Expenditures as the


from time to time

Such percentage

as the Association

shall determine

from time to time




240,000

560,000

99,000

199,000


Expenditures as the


from time to time

Such percentage

as the Association

shall determine

from time to time


incurred by:

(a) PAU

(b) PMU

289,000

312,000

172,000

112,200


Expenditures as the


from time to time


Expenditures as the


from time to time

Such percentage

as the Association

shall determine

from time to time

5. Training 3,000,000 730,000 14% or such Eligible

Expenditures as the


from time to time

Such percentage

as the Association

shall determine

from time to time

6. School Community Grants 924,000 662,500 14% or such Eligible

Expenditures as the


from time to time

Such percentage

as the Association

shall determine

from time to time

Total Amount 14,025,000 6,615,000

2. The financing percentages for each donor will be determined in the Annual Work Plans and

Budgets, which shall be submitted to the Development Partners, for approval, by December 31 of each

year. Approval of the Annual Work Plan and Budget by IDA will be a disbursement condition for both

the Credit and the Grant. The first Annual Work Plan is due by March 15, 2012.

3. In addition, the definition of “Incremental Operating Costs incurred by the PMU” will be

revised both in the Financing Agreement and the Grant Agreement to include “office rent” and

“salaries of PMU staff,” but excluding the salaries of officials of the Recipient’s civil service.

4. The proposed reallocation is necessary to finance the activities included in the restructured

project.

13

Annex 3: Financial and Economic Analysis

1. Cost Benefit Analysis

1. The restructured project has a much lower project cost with the scope of the project

also reduced, the benefits of the project still far exceed the costs, with an Economic Internal

Rate of Return (EIRR) of 17.0%, compared to the initial appraisal EIRR of 13.7% indicating

economic viability of this project.

Benefits

2. The restructured project maintains most of the supply and demand side interventions

and quality improvement measures of the SEDGAP at a reduced scope where these

interventions are expected to reduce repetition and dropout rates in secondary education and

improve student learning performance, thereby reducing the number of years required to

produce secondary education graduates. The benefits stream is quantified by estimating: (i)

reduced supply side/input cost of producing secondary education graduates, and (ii) lower

opportunity cost incurred by students due to fewer years invested in completing secondary

education.

3. Although the secondary education cycle in Yemen lasts three years, due to high

repetition and dropout rates and low pass rates in the secondary school examination results,

the number of years invested per secondary graduate is substantially higher. This analysis uses

the same methodology retained for appraisal adjusting the assumptions to reflect the reduced

scope of the restructuring3. By achieving the PDO targets, the years invested per student are

expected to improve to 4.20 (boys) and 3.91 (girls) in target districts by the end of the 6 year

implementation period of the project, and to 4.07 and 3.79 respectively by the end of 20th

year

since project commencement.4

4. The annual per student cost incurred by the GoY on secondary education is estimated

as YR70, 371 (US$368) in 2005/06.5 Assuming that this cost remains unchanged, the savings

generated from reduced number of years per graduate are estimated as USD 59 million over

20 years as indicated in Table 1 (or present value equivalent of US$18.1 million). Students’

foregone earnings (annually averaging US$1,007 for boys and US$506 for girls6) will also be

reduced by the reduction in the number of years invested per graduate. This will generate

savings of US$ 128.1 million over 20 years as indicated in Table 1 (or present value of

US$39.7 million).

3 Average number of years to complete secondary education were estimated to be 4.44 for boys and 4.12 for girls in

project districts and 4.16 and 3.82 years respectively in non- project districts. Retention was 81% for boys and 84% for

girls in program districts and pass rate were noted as 82.8%, based on national average. (2004)

4 Reduction in the number of years to produce a secondary graduate is generated differently for program schools (which

will receive supply-side interventions through Component 1 in addition to the demand side interventions for component

2 and quality enhancement interventions of component 3) and other schools in the districts (which receive Component 3

interventions only). In program schools, a more rapid improvement in retention rate was assumed, i.e., 0.5% in years 1-

3, 1.5% in years 4-6 and 0.1% in years 7-20, as opposed to 0.0%, 0.5% and 0.1% respectively in non- program schools

of the program districts.

5 Due to unavailability of information on secondary education expenditure alone, assumptions are made to separate basic

and secondary expenditures.

6 This is average income for secondary graduates aged 18-20 in 2005, taking into account the non-wage working

population. The estimate has been calculated by World Bank staff based on the Household Budget Survey 2005.

14

Costs

5. The cost stream is estimated on the basis of: (1) project investment cost, (2) recurrent

costs incurred from the project, which include (i) maintenance cost for civil works, furniture,

equipments, and learning materials, (ii) continuation of female staff recruited through the

project7, (iii) continued incentives through school community grants, and (3) foregone

earnings of newly enrolled students.

6. The estimated project cost has now almost been halved from initial cost of US$103.4

million to US$47.2 million, of which IDA proposes to invest US$20 million, the DPs propose

to invest US$18.5 million, and the GoY proposes to invest US$8.7 million over 6 years

between 2008 and 2014. The approximate average annual recurrent cost resulting from the

project for 14 years after project end (until Year 20 of the project) is US$3.3 million.

EIRR Simulation Result

7. Table 1 shows the summary of both cost and benefit streams. The EIRR of the project

will be 17.0%, and the Net Present Value will be US$11.7 million using a discount rate of

10%.

Table 1: Summary of Cost and Benefit Stream

Years since project started (real USD 000)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Year

20

Program

Total

NVP at 10%

discount rate

BENEFITS STREAM

Total savings generated 86 177 274 936 1,631 2,385 2,585 5,133 58,977 18,123

Total saved foregone

earning for all graduates 202 410 631 2,137 3,698 5,368 5,774 10,897 128,174 39,748

Total Benefits 288 588 905 3,073 5,329 7,753 8,360 16,029 187,150 57,871

COST STREAM

Project Investment Cost 23 1,649 7,582 23,821 12,241 1,867 47,209 29,107

Recurrent Cost

731 731 731 3,299 3,568 50,537 15,543

Students' opportunity cost 3 3 32 242 259 473 266 163 3,702 1,523

Total Costs 3 26 1,681 8,556 24,811 13,446 5,432 3,732 101,447 46,173

Net Benefits 285 562 775 5,483 19,482 5,693 2,928 12,298 85,704 11,698

IRR 17.00%

NVP at discount rate of 10%

11,698

Assumptions

Annual per student cost is USD 368 (2004)

Annual maintenance cost is calculated as: (1) for civil works - 0.5% during first 10 years and 1.5% during next 10 years of total value of the building;

(2) furniture - 5% of installment cost; (3) 10% of equipments; (4) 10% of learning materials

Salary includes that of for female teachers hired at intervention schools (assuming $1200 per year)

School grants continue in transportation allowance and cash transfer (approx. 6,000 students per year at secondary level)

Total saved unit cost and foregone earning for all graduates are calculated based on the number of years invested per graduate

Benefits are calculated separately for program schools (Component 1 target schools) and other schools in the program districts (Comp. 3 only schools)

7 It is assumed that female staff recruited by the program will continue to be financed after the program ends.

Documents

World Bank Document...DFID 41.80 2.40 GIZ 3.00 3.00 IDA 20.00 20.00 KFW 11.80 9.50 NETH 14.80 6.60 Total 103.40 50.20 3. Borrower Organization Department Location Republic of Yemen