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
Association may determine
from time to time
Such percentage as the
Association shall
determine from time to
time
3. Consultants’ services under:
(a) Part A.1(a) of the Project
(b) Other Parts of the Project
271,000
638,000
191,400
383,440
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
4. Training 1,885,000 1,410,000 12% or such Eligible
Expenditures as the
Association may determine
from time to time
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
5. Incremental Operating Costs
incurred by:
(a) PAU
(b) PMU
319,000
350,000
331,760
216,300
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
6. School Community Grants 830,000 1,282,100 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
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)
Category of Expenditure Allocation
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
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 Association may determine from time to time
Such percentage as the
Association shall determine from time to
time
3. Consultants’ services under: (a) Part A.1(a) of the Project
(b) Other Parts 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
determine from time to
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
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 Association may determine 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 Association may determine
from time to time
Such percentage as the Association shall
determine from time to
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
No of schools equipped with
Computer Labs N
0 10 20 30 40 50 Annual Progress
Report
General
Education
Sector/ PAU
No of schools equipped with
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
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
Association may
determine from time
to time
Such percentage as the
Association shall
determine from time
to time
3. Consultants’ services under:
(a) Part A.1(a) of the
Project
(b) Other Parts of the
Project
271,000
638,000
191,400
383,440
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
4. Incremental Operating Costs
incurred by:
(a) PAU
(b) PMU
319,000
350,000
331,760
216,300
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
5. Training 1,885,000 1,410,000 12% or such Eligible
Expenditures as the
Association may
determine from time
to time
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
6. School Community Grants 830,000 1,282,100 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
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
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
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
Association may determine
from time to time
Such percentage
as the Association
shall determine
from time to time
3. Consultants’ services under:
(a) Part A.1(a) of the Project
(b) Other Parts 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 determine
from time to 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
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
Association may determine
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
Association may determine
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.