The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Skills Development & Innovation Support (P128378) EUROPE AND CENTRAL ASIA | Macedonia, former Yugoslav Republic of | Education Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 10 | ARCHIVED on 04-Dec-2018 | ISR34583 | Implementing Agencies: Ministry of Finance, Ministry of Education and Science Key Dates Key Project Dates Bank Approval Date: 28-Jan-2014 Effectiveness Date: 11-Mar-2014 Planned Mid Term Review Date: 25-Sep-2017 Actual Mid-Term Review Date: 25-Sep-2017 Original Closing Date: 31-May-2019 Revised Closing Date: 31-May-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve transparency of resource allocation and promote accountability in higher education, enhance the relevance of secondary technical vocational education, and support innovation capacity in Macedonia. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving Transparency of Higher Education:(Cost $4.00 M) Modernization of Secondary Technical Vocational Education and Training:(Cost $4.50 M) Improving the innovative capacity of enterprises and collaboration with research organizations:(Cost $12.94 M) Project Management and Monitoring and Evaluation:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The World Bank and the government mutually concluded that the likelihood project to achieve its outcomes by the current end-date is low for most of the outcomes. The implementation of many subcomponents has been advanced significantly since the last ISR which resulted in 7,702,608.00 EUR committed loan proceeds or additional 43 % of the available funds. However, despite the advanced implementation progress it is necessary to extend the closing date of the project to ensure finalization of all initiated activities and improve the likelihood of achieving the project’s development outcomes. The government recently sent a request for extension of the project closing date, along with the action plan, containing detailed description of all remaining activities and timeline for their completion. The government pointed the following main reasons for the extension: 12/4/2018 Page 1 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378)  Completion of the comprehensive TVET reform, including procurement of the equipment for TVET schools in accordance to the new curriculum;  Provide support for establishment and support work of the National Committee to complete the new financing model for Higher Education;  Provide support for establishment of the National Quality Assurance Agency for higher education and provide capacity building for its staff;  Further strengthening of the capacity of the Fund for Innovation and Technological Development and full utilization of the allocated funds for the innovation instruments. The team assessed the plan as sound and realistic and will soon initiate the necessary steps for project restructuring. 12/4/2018 Page 2 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) 12/4/2018 Page 3 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial 12/4/2018 Page 4 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Results PDO Indicators by Objectives / Outcomes Improving Transparency of Higher Education IN00587744 ►% of public universities receiving financing based on new, transparent funding model. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 28-Mar-2014 18-Apr-2018 29-Oct-2018 30-Apr-2019 The new Law on HE inter alia stipulates establishment of a National Council as a new independent body of experts, responsible for higher education and science and research. The National Council will have a mandate to propose a National Program for Higher Education and a Rulebook on the Measures and Criteria for the Financing of the HE. This body must be constituted by May 19, 2019. If not, this will create a legal vacuum in execution of many activities in the area of higher education, including financing. The Comments: project has already funded excellent technical advisory work to support the reform in the higher education financing model for Macedonia, so the new National Council, when established, does not start from scratch. IN00587750 ►% of public universities accredited, utilizing new quality assurance and accreditation measures developed in accordance with Bologna-defined EU norms and practices. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 28-Mar-2014 18-Apr-2018 29-Oct-2018 30-Apr-2019 The new Law on HE inter alia stipulates establishment of an Agency for Quality Assurance, responsible for accreditation and institutional evaluation of the HE Institutions. This institution will be responsible for Comments: re-accreditation of all universities. Modernization of Secondary Education Vocational Education and Training IN00587745 ►% increase in number of secondary TVET students benefiting from practical training in SME and large sized firms. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 36.30 36.30 36.30 30.00 Date 18-Apr-2018 23-Mar-2017 29-Oct-2018 30-Apr-2019 The baseline was determined previously when the VET Center did not use standardized questionnaire for data collection for the students realizing practical training. The standardized method was introduced in 2015/2016 and therefore we changed the baseline value 36.30 (or 11.543 students) . Also, it was agreed Comments: that the increase will be measured as a % of enrolled students in 2nd,3rd and 4th year every school year and not from the baseline, since the number of enrolled students vary each year. The updated value for this indicator will be available in December 2018. 12/4/2018 Page 5 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Improving the Innovative Capacity of Enterprises and Collaboration with Research Organization IN00587746 ►Share of private funding mobilized as a percentage of FITD investments in innovation activities. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 29.36 35.10 25.00 Date 28-Mar-2014 18-Apr-2018 29-Oct-2018 30-Apr-2019 IN00587749 ►% of beneficiaries that sign collaborative agreements between firms and academia. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.28 14.28 20.00 Date 28-Mar-2014 18-Apr-2018 18-Apr-2018 30-Apr-2019 Intermediate Results Indicators by Components Improving Transparency of Higher Education IN00587660 ►Implementation of new higher education funding model. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The new funding The new funding model model will be will be determined after determined after the The new funding model the adoption of the draft adoption of the draft New funding model Value is not developed Law on the Higher Law on the Higher implemented loped Education, which is Education, which is expected by the June, expected by the June, 2018. 2018. Date 28-Mar-2014 18-Apr-2018 29-Oct-2018 31-Jan-2019 The new funding model will be determined after establishment of the National Council for higher Comments: education, which is expected by May, 2019. The implementation is delayed . IN00587747 ►Number of public universities that have completed an external evaluation utilizing new quality assurance measures developed in accordance with Bologna-defined EU norms and practices. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 5.00 Date 28-Mar-2014 18-Apr-2018 18-Apr-2018 30-Apr-2019 EUA has completed evaluation of all six (6) HEIs, and has delivered 6 individual reports to the HEIs and Comments: one on system wide report to the MoES. IN00587731 ►National TTO established and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/4/2018 Page 6 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Value Not in existence No No TTO operational Date 28-Mar-2014 18-Apr-2018 29-Oct-2018 30-Sep-2016 The Fund for Innovation and Technological Development is developing a feasibility study for a Science and Technology Park which is envisioned to include the NTTO. The Bank team discussed options for the NTTO as it is envisioned to be implemented under the SDIS project while a Science and Technology Park Comments: will take a longer time to be established. The World Bank team has been working with the FITD on development of a draft outline and timeline for the NTTO establishment. The implementation is delayed IN00587732 ►Board of Quality Assurance and Accreditation achieves membership in ENQA (the European Association for Quality Assurance in Higher Education) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The draft law on The draft law on Higher Higher Education Education envisages envisages Board of Quality Board of Quality development of a new development of a new Assurance and Assurance and Agency for Quality Agency for Quality Value Accreditation achieves Accreditation NOT a Assurance and alignment Assurance and full member status in member of ENQA of its by-laws in alignment of its by- ENQA accordance with the laws in accordance European standards and with the European guidelines. standards and guidelines. Date 28-Mar-2014 18-Apr-2018 29-Oct-2018 31-Jan-2019 The law on Higher Education stipulates establishment of a new Agency for Quality Assurance. The new Agency will have a mandate to start implementing the quality assurance reforms toward stabilizing the accreditation system support improvement of the internal/institutional quality assurance mechanisms. The Comments: PMU has hired a local expert to support implementing reforms in compliance with the new Law on Higher Education.This activity is on track. IN00587733 ►IP related cases handled for industry as measured by number of patent landscape analysis(PA), patents filed(P) and technology in-licensing(importation of technology) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 28-Mar-2014 19-Apr-2018 29-Oct-2018 31-Jan-2019 NTTO is not established yet. This activity is not on track. Comments: IN00587658 ►Domestic inventions by RTIs commercialized as measured by number of patents filed, licenses, and contract research (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 31-Jan-2019 NTTO is not established yet. This activity is not on track. Comments: Modernization of Secondary Technical Vocational Education and Training IN00587734 12/4/2018 Page 7 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) ►TVET action plan that promotes general and broader technical education and competence- based learning adopted (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not in existence Model adopted. Model adopted. Model adopted Date 10-Sep-2013 10-Oct-2017 10-Oct-2017 31-Jan-2016 IN00587659 ►% of developed TVET occupational standards by professional fields (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 10-Sep-2013 18-Apr-2018 29-Oct-2018 31-Jan-2019 IN00587738 ►Share of updated TVET secondary school programs targeting key sectors of the local economy. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 10-Sep-2013 18-Apr-2018 29-Oct-2018 31-Jan-2019 Report for assessment of the VET schools network, cost benefit analysis and operational plan for rationalization of the network is done. This activity will be done in cooperation with the EU IPA project and Comments: ETF , however, the implementation is delayed. IN00587739 ►% of updated TVET curricula in line with occupational standards (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 100.00 Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 31-Jan-2019 National Curriculum Framework was approved by the MOES , the working groups have been working on development of 1200 new modular curricula development. It is expected this to be completed by February Comments: 2019. IN00587743 ►% Increase in number of companies providing practical training to secondary TVET students. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 30.00 Date 15-Jan-2015 18-Apr-2018 29-Oct-2018 31-Mar-2019 New data will be available by December 2018. This activity is on track. Comments: IN00587735 ►Manual and training materials for quality delivery of new curricula adopted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes 12/4/2018 Page 8 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Date 10-Sep-2013 10-Oct-2017 10-Oct-2017 31-May-2018 This activity is on track.. Comments: Improving the innovative capacity of enterprises and collaboration with research organizations IN00587748 ►Share of resources dedicated to Fund for Innovation and Technology Development (FITD) instruments disbursed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19.54 19.54 100.00 Date 10-Sep-2013 10-Oct-2017 10-Oct-2017 31-Jan-2019 The total amount dedicated to implementation of the innovation instrument will not be fully disbursed by the current closing date of the project. This is due to the late implementation of the innovation instrument for accelerators and technology extension. The FITD is aware that all sub-project activities need to be Comments: completed before the project implementation end date, and that the 6-month grace period at the end of the project is only for processing of payments for activities that have already been completed. IN00587741 ►Number of companies established via the FITD Accelerator program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 31-Jan-2019 3 accelerators are in process of establishment. This activity is on track. Comments: IN00587736 ►Number of beneficiary firms to introduce new/improved products (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 51.00 51.00 30.00 Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 31-Jan-2019 This is on track. Comments: IN00587751 ►% of beneficiaries receiving training and mentoring (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 70.00 Date 28-Mar-2014 19-Apr-2018 29-Oct-2018 30-Apr-2019 IN00587737 ►Number of beneficiary firms to introduce new processes (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 12/4/2018 Page 9 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 31-Jan-2019 4 projects under the instruments for technology extension have been pre-approved for financing. Each of these projects will benefit a certain number of companies, but the exact number will be known after the Comments: completion of the first phase. The implementation is delayed. Project Management and Monitoring and Evaluation IN00587742 ►Evaluations for Innovation grants designed, conducted and reports reported (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The survey is ongoing. The survey is ongoing. It It is expected more is expected more companies to be companies to be included Evaluation reports included in the survey Value Not in existence in the survey since not all completed and results since not all companies that were disseminated companies that were included have included have responded. responded. Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 30-Nov-2016 The survey is still ongoing. This activity is on track. Comments: IN00587740 ►Skills Observatory established, providing information about TVET and HE performance to the public (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The activities for The activities for interconnection with interconnection with Management Management Information Information Systems of The info on platform Systems of private Value Not in existence private universities are being updated at least universities are ongoing. ongoing. twice per year The activities for First The activities for First Macedonian Tracer study Macedonian Tracer are finished. study are finished. Date 10-Sep-2013 19-Apr-2018 29-Oct-2018 31-Jan-2019 The Website platform developed but it is not available for public to access info on performance of TVET and HE. The activities for interconnection with Management Information Systems of private universities Comments: are ongoing. This activity is on track. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P128378 IBRD-83320 Effective USD 24.00 24.00 0.00 7.43 15.44 32% Key Dates (by loan) 12/4/2018 Page 10 of 11 The World Bank Implementation Status & Results Report Skills Development & Innovation Support (P128378) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P128378 IBRD-83320 Effective 28-Jan-2014 07-Feb-2014 11-Mar-2014 31-May-2019 31-May-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/4/2018 Page 11 of 11