Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD875 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED RESTRUCTURING AND ADDITIONAL GRANT IN THE AMOUNT OF US$14.75 MILLION TO THE REPUBLIC OF HAITI FOR AN EDUCATION FOR ALL PROJECT – PHASE 2 (APL) IN SUPPORT OF THE EDUCATION FOR ALL PROGRAM JUNE 4, 2014 Human Development Department Haiti Country Management Unit Latin American and Caribbean Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with World Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective August 31, 2011) Currency Unit = Haitians Gourdes (HTG) HTG 40.35 = US$1 US$1.61 = SDR 1 FISCAL YEAR October 1 – September 30 ABBREVIATIONS AND ACRONYMS AF Additional Financing APG Adaptable Program Grant BDS Bureau de District Scolaire (School District Office) CAD Canadian Dollar CBD Caribbean Development Bank DAEPP Direction d’Appui à l’Enseignement Privé et au Partenariat (Directorate of Support to Private education and the Partnership) DDE Direction Départementale de l’Education (Departmental Education Directorates) DEF Direction de l’Enseignement Fondamental (Basic Education Directorate) EFA Education For All EGRA Early Grade Reading Assessment ESMF Environmental and Social Management Framework FIA Formation Initiale Accélérée (Accelerated Teacher Training Program) FM Financial Management FNE Fonds National de l’Education (National Funds for Education) GDP Gross Domestic Product GoH Government of Haiti GPE Global Partnership for Education HRF Haiti Reconstruction Fund IDA International Development Association IADB Inter-American Development Bank ISN Interim Strategy Note MAECD Ministère des Affaires Etrangères, du Commerce et du Développement (Ministry of Foreign Affairs, Trade and Development (Canada)) MENFP Ministre d’Education Nationale et de la Formation Professionnelle (Ministry of Education and Professional Training) NGO Non-Governmental Organization NPV Net Present Value ONAPE Office National de Partenariat en Education ii (National Education Partnership Office) PCU Project Coordination Unit PDO Project Development Objective PER Public Expenditures Review PIPE Programme d’Interventions Prioritaires en Education (Transitional Education Sector Plan) PNCS Programme National des Cantines Scolaires (National School Feeding Program) PSUGO Programme de Scolarisation Universelle Gratuite et Obligatoire (Free and Mandatory Universal Education Program) PTU Project Implementation Unit RRAP Remedial Resettlement Action Plan SHN School Health and Nutrition USAID United States Agency for International Development WFP World Food Programme Vice President: Jorge Familiar Country Director: Mary A. Barton-Dock Sector Manager: Reema Nayar Task Team Leader: Patrick P. Ramanantoanina iii HAITI EDUCATION FOR ALL PROJECT – PHASE 2 CONTENTS Project Paper Data Sheet…………………………………………………………... 1 Project Paper I. Introduction………………………………………………………... 5 II. Background and Rationale for Additional Financing……………… 6 III. Proposed Changes………………………………………………….. 13 IV. Appraisal Summary………………………………………………… 27 Annexes Annex 1: Revised Results Framework and Monitoring Indicators ……………….. 29 Annex 2: Operational Risk Assessment Framework ……………………………… 43 iv ADDITIONAL FINANCING DATA SHEET Haiti AF for Haiti Education for All Project Phase II ( P147608 ) LATIN AMERICA AND CARIBBEAN LCSHE . Basic Information – Parent Parent Project ID: P124134 Original EA Category: B - Partial Assessment Current Closing Date: 30-Jun-2015 Basic Information – Additional Financing (AF) Additional Financing Project ID: P147608 Restructuring Type (from AUS): Regional Vice President: Jorge Familiar Proposed EA Category: B - Partial Assessment Expected Effectiveness Country Director: Mary A. Barton-Dock 15-July-2014 Date: Sector Director: Mansoora Rashid Expected Closing Date: 30-Sep-2016 Sector Manager: Reema Nayar Report No: PAD875 Patrick Philippe Team Leader: Ramanantoanina Borrower Organization Name Contact Title Telephone Email Ministère de l'Education +50936044545 Nationale et de la Formation Nesmy Manigat Ministre nesgat@gmail.com Professionnelle Project Financing Data – Parent ( Haiti - Education for All Project - Phase II-P124134 ) Key Dates Approval Effectiveness Original Revised Closing Project Ln/Cr/TF Status Signing Date Date Date Closing Date Date Effectiv P124134 IDA-H7400 01-Dec-2011 11-Jan-2012 03-Apr-2012 30-Jun-2015 30-Sept-2016 e Disbursements % Currenc Disburse Undisburse Project Ln/Cr/TF Status Original Revised Cancelled Disburse y d d d P124134 IDA-H7400 Effective XDR 43.50 43.50 0.00 18.57 24.93 42.70 1 Project Financing Data – Additional Financing AF for Haiti Education for All Project Phase II ( P147608 ) [ ] Loan [X] Grant [ ] IDA Grant [] Credit [ ] Guarantee [ ] Other Total Project Cost: 14.75 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 0.00 Haiti Reconstruction Fund 14.75 Total 14.75 Policy Waivers Does the project depart from the CAS in content or in other significant No respects? Explanation Does the project require any policy waiver(s)? No Explanation Team Composition Bank Staff Name Title Specialization Unit Safaa El Tayeb El- Sector Leader LCSHD Kogali Prosper Nindorera Senior Procurement LCSPT Specialist Ganna Musakova Senior Program LCSHE Assistant Axelle Latortue Education Spec. LCSHE Amadou Konare Consultant AFTN1 Victor Manuel Ordonez Senior Finance Officer Senior Finance Officer CTRLN Conde Ghada Youness Senior Counsel LEGLE Patrick Philippe Senior Operations Team Lead LCSHE Ramanantoanina Officer Fabienne Mroczka Sr Financial LCSHE 2 Management Specialist Peter F. B. A. Lafere Social Development Social Development LCSSO Specialist Specialist Ingrid Sandra Milord Office Assistant LCCHT Fernanda Balduino de Finance Analyst CTRLN Oliveira Josue Akre Financial Management LCSFM Specialist Non Bank Staff Name Title Office Phone City Locations Country First Administrative Location Planned Actual Comments Division Haiti Departement du Departement du Sud- X Sud-Est Est Haiti Departement du Departement du Sud X Sud Haiti Departement de Departement de X l'Ouest l'Ouest Haiti Departement du Departement du X Nord-Ouest Nord-Ouest Haiti Departement du Departement du X Nord-Est Nord-Est Haiti Departement du Departement du X Nord Nord Haiti Departement de la Departement de la X Grand'Anse Grand'Anse Haiti Departement du Departement du X Centre Centre Haiti Departement de Departement de X l'Artibonite l'Artibonite Haiti Departement de Departement de X Nippes Nippes Institutional Data Parent ( Haiti - Education for All Project - Phase II-P124134 ) Sector Board Education 3 Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Education Primary education 69 Public Administration, Law, and Public administration- 29 Justice Education Education Pre-primary education 2 Total 100 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Human development Education for all 82 Human development Nutrition and food security 11 Rural development Rural services and infrastructure 7 Total 100 Additional Financing AF for Haiti Education for All Project Phase II ( P147608 ) Sector Board Education Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Education Primary education 100 Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Human development Education for all 82 Human development Nutrition and food security 11 Rural development Rural services and infrastructure 7 Total 100 4 I. Introduction 1. This Project Paper proposes a combined Restructuring and Additional Financing (AF) grant (P147608) from the Haiti Reconstruction Fund (HRF) in the amount of US$14.75 million to the Haiti Education for All Project – Phase 2 (P124134/Grant No. 7400-HT). It seeks the approval of the Executive Directors for the Restructuring, and the approval of the Regional Vice President for Latin America and the Caribbean for the HRF AF. This operation is being processed under OP 10.00 paragraph 11 – Investment Project Financing, Special Considerations for Projects in Situations of Urgent Need of Assistance or Capacity Constraints. Expedited processing was requested because of the time-sensitive nature of the needs on the ground. In particular, the Project activity on School Health and Nutrition (SHN) to be financed by the AF is critical in the low-capacity context of Haiti. SHN services would need to begin at the start of the 2014-15 school year to ensure continuity of these services to an existing 76,500 students. 2. The Restructuring is submitted to (i) establish a more achievable and measurable Project Development Objective (PDO) and (ii) trigger the application of the Bank’s Operational Policy 4.12 on Involuntary Resettlement. . The AF is sought in order to extend funding of the SHN Program, under component 1.3 of the Project, by 2 school years. Proposed changes also include revising the Project design and activities, and adjusting to actual costs and existing implementation capacity. The Project closing date would be extended for 15 months given additional time needed to complete original and revised activities. In addition, changes are proposed to the results framework. These proposed changes to the Project are in response to Government of Haiti (GoH) priorities. Although the overall risk rating is maintained as high, risks for each category have been updated to reflect the changes in the overall country context, as well as those at the sector level. 3. The AF funded activities would contribute to the Bank’s twin goals of eliminating extreme poverty and boosting shared prosperity by supporting the human capital development of disadvantaged Haitian children. The major expected outcomes from the proposed changes are: about 162,000 students in disadvantaged areas would continue to be enrolled in non-public primary schools; public and non-public schools benefiting from SHN services are expected to maintain their attendance rate; and at least 60 percent of non-public primary schools are expected to be registered and authorized with a permit to operate for one year (Level 1 of the licensing process) by the Ministry of National Education and Vocational Training (Ministère de l’Education Nationale et de la Formation Professionnelle – MENFP). 4. Partnership Arrangements. Under the parent Project, the Bank is coordinating its technical and financial support with the World Food Programme (WFP), the Caribbean Development Bank (CDB), the Inter-American Development Bank (IADB) and the Canadian Ministry of Foreign Affairs, Trade and Development (Ministère des Affaires Etrangères, du Commerce et du Développement -MAECD), who are also supporting the implementation of the SHN Program and Tuition Waiver Program (TWP) with investment grants. These arrangements would continue under the restructured Project. In addition, the Global Partnership for Education (GPE) has allocated an indicative grant for the Haiti education sector that could co-finance the restructured Project if approved. 5 II. Background and Rationale for Additional Financing in the amount of US$14.75 million Project Background and Performance 5. Project Status. The parent Education for All – Phase 2 Project is a US$70 million grant which was approved in December 2011 and became effective in April 2012. The PDO is to support the Strategy for Rebuilding the Education System through the implementation of sustainable programs to improve: (a) access, particularly of under-served populations, to Primary Education; (b) quality of Primary Education; and (c) the institutional capacity in the Recipient’s education sector. It has four components: Component 1 – Improving Access to Quality Education; Component 2 – Support to Teaching and Learning; Component 3 – Institutional Strengthening and Governance; and Component 4 – Project Management and Monitoring and Evaluation. The main achievements of the original Project by component are as follows: a. Under Component 1, to date, the Project has surpassed expectations with respect to improvements in access: it has delivered timely tuition waivers to about 150,000 primary students in seven departments in the 2012-13 school year. It has also ensured the provision of three textbooks per student in about 90 percent of schools participating in the IDA-financed non-public school TWP. Under the community-based school sub- component, 63 communities have received training, continue to receive grants, and are operating schools under temporary shelter. Of these, four schools are expected to be completed by end July 2014. The SHN Program has also surpassed targets, providing deworming, micronutrients, and a morning snack and hot meal during school days to over 79,000 students in public and non-public schools in the 2012-13 school year. b. Under Component 2, the Accelerated Teacher Training Program (Formation Initiale Accélérée – FIA) has certified 2,669 teachers. More than two-thirds of FIA-certified teachers polled could not find a job in the teaching profession, creating social pressures on the GoH, which is limited in its ability to replace unqualified teachers in public schools or require non-public schools to enhance their standards by recruiting qualified teachers. The GoH has therefore decided not to recruit new FIA cohorts beginning with the 2013-14 school year; the FIA cohort recruited into the program in October 2012 and expected to graduate in September 2015 will be the third and final Project-financed cohort. In the meantime, the MENFP is developing a new teacher training policy which is expected to be completed in September 2014 and to provide policy measures to absorb newly trained teachers into the system. The MENFP also established in May 2014 a new statute regulating the teaching profession, which is expected to help place qualified teachers into classrooms in the medium-term. This statute compels teachers who wish to remain in the classroom to have or obtain a teaching license. In addition, the Bank will support the MENFP in developing an action plan for the recruitment of the FIA teachers trained so far. The Project is also developing Teacher’s Guides for Grade 1 with daily lesson plans for use in the classroom.. The original structured reading instruction approach Lekti Se lavni (“Reading is the Future”) to be implemented under the Parent Project would be replaced by M Ap Li Net Ale (“I am reading all the way”), a technically improved version that the MENFP, with U.S. Agency for 6 International Development (USAID) support, has developed by adapting Lekti se Lavni to the Haiti context. c. Under Component 3, seventy-five percent of Project-financed schools have been inspected by the MENFP in the 2012-13 school year. Project-based budget agreements between the MENFP and its regional units (Directions Départementales de l’Education – DDEs) are under preparation and would allow the Project to finance DDEs to supervise and provide support to schools. These agreements are expected to be completed by October 2014 and will be piloted in four DDEs in 2015. While the establishment of the National Education Partnership Office (Office National de Partenariat en Education – ONAPE) has stalled as a result of the shift in GoH priorities, the MENFP still aims to increase government stewardship of the sector and strengthen public-private partnerships by instead focusing on strengthening the school licensing system. 6. Project Performance. In line with the parameters on Project Performance stipulated in OP/BP 10.00, the Project is rated Moderately Satisfactory on both Implementation Progress and progress toward achievement of the PDO, and has been consistently rated satisfactory or moderately satisfactory over the past 12 months. 7. With respect to the Project’s legal covenants, one of the Project’s six legal covenants has been fully complied with (no transfer of funds was made to school management committees or beneficiary service providers prior to their entering into the Grant Agreement); two covenants are partially complied with (the Project has produced a Social and Environmental Management Plan but community training has not yet begun; and the Project has not affected Natural Habitats, Forests or Physical Cultural Resources but one case of Involuntary Settlement occurred related to works carried out under the Project, for which corrective action was taken); and three covenants are not yet complied with. Two out of the three covenants not complied with (the establishment of a nine-member steering committee and the inclusion in Project Reports of information on the implementation of the Environmental and Social Management Framework) are currently in progress by the MENFP and Project Technical Unit (PTU), and the Bank is closely following up on their implementation. The third covenant not complied with relates to the establishment of ONAPE, an institution aimed at organizing non-public providers of education (over 80 percent of schools) and serving as a locus for discussion between public and private stakeholders in the system. This covenant would be dropped as the GoH has indicated it does not intend to operationalize the institution. Audit and financial reporting requirements are consistently met, but generally with delays; the Bank team will continue to work with the GoH to ensure satisfactory FM performance and mitigate financial and audit report delays. 7 Sector Context & Priorities 8. Access and quality remain pressing challenges in primary education. The majority of the approximately 1.6 million Haitian children in primary school live in poverty. Households struggle to finance education, as over 80 percent of primary and secondary schools are non- public (including for-profit, religious, and other types). At the same time, low instructional quality, poor nutrition, poor infrastructure, and limited school materials limit the amount of learning and human capital accumulation. Consequently, hundreds of thousands of children are believed to be out of school, most children in primary school are over age for their grade, and many do not complete a full course of fundamental education (defined in Haiti as primary and lower secondary). For example, only 60 percent of 18 year olds in the 2012 ECVMAS (national household survey) had reached at least lower secondary school. 9. While expanding access and increasing quality in both public and non-public schools continues to be a core priority for the GoH, strategic approaches and other priorities have been revised and focused since parent Project effectiveness. The MENFP finalized in December 2013 a three-year transitional sector plan (Programme d’Interventions Prioritaires en Education – PIPE), based on its five-year Strategy for Rebuilding the Education System, which articulates these revised priorities. The PIPE reduces the ambitious US$2.3 billion financing gap in the five-year strategy to US$260 million, with revised targets and prioritized activities. Among the key PIPE priorities is a continued focus on expanding the GoH’s universal, free and compulsory primary education program (Programme de Scolarisation Universelle, Gratuite et Obligatoire – PSUGO), which finances tuition waivers for non-public schools and fee waivers for public schools, as well as school materials. Key priorities newly emphasized include: (i) expansion of the National School Feeding Program (Programme National de Cantines Scolaires - PNCS), from about one third of primary students in public and non-public schools receiving School Health and Nutrition (SHN) services in 2010-11 to 70 percent in 2020-21; (ii) capacity strengthening for the PNCS; (iii) improvement in internal efficiency and retention through, inter alia, primary curriculum revision and in-service teacher training; and (iv) institutional strengthening including the establishment of an improved licensing system for non-public primary schools. The PIPE was presented to sector stakeholders in December 2013 following a consultative preparation process, and was endorsed by sector development partners in January 2014. 10. Despite a refocusing of GoH priorities, many challenges to effective sector governance and improvement in educational outcomes remain. The paragraphs below summarize the recent developments regarding the challenges that are most relevant for the Project Restructuring/AF: 11. Transparency and Sustainability. There have been delays in adopting and implementing a transparent financial framework that reflects increasing financing responsibility by the GOH for key policies to expand access (including PSUGO and PNCS). In 2011, the President announced the creation of a National Education Fund (Fonds National de l’Education – FNE), financed through fees from incoming international calls and wire transfers. The FNE would finance PSUGO and PNCS for about two million students; as such it constitutes a mechanism with the prospect of ensuring a stable source of public financing for the government’s priorities in the primary education sector. However, the FNE’s legal creation is 8 still pending Senate approval. In the meantime, PSUGO and PNCS activities have been under implementation, and there has been little public disclosure regarding the use of FNE funds, which continue to be collected. Furthermore, during the Education Ministerial Meetings in Washington in April 2013, the Government of Haiti committed to increasing the share of the education sector to 25 percent of the total domestic operational budget, with the incorporation of the FNE into the budget; this engagement was reconfirmed in the PIPE. This increase in sector spending could provide a sustainable source of funds for the community-based teachers recruited under the Project. 12. Establishment of a sustainable budget and financing framework incorporating the FNE is a key area of focus in the ongoing dialogue between GOH and development partners. Since 2007, several development partners1 have been co-financing the TWP and the SHN Program with the Bank, implemented by MENFP using the Bank’s procedures. As the GoH’s role in providing tuition waivers (through PSUGO) and school health and nutrition (through PNCS) increases, development partners are supporting several mechanisms to improve transparency in budget programming and implementation, including through a Bank-administered HRF Development Policy Operation; and technical and financial assistance for the development of a National SHN Policy, including a financial model for its sustainability which will support the MENFP objective of reaching 70 percent of primary students. In addition, the Bank, MENFP and other development partners are working closely to develop a financial model that reflects increasing financing responsibility by the GOH, which has committed to establishing a medium- term financial strategy for the TWP and SNHP. This strategy is currently under development and is expected to be available by the end of July 2014. An ongoing Public Expenditure Review is also expected to provide comprehensive analyses on public resources (including development partners’ contribution) in the education sector. 13. The timeline for the ratification of the FNE bill is unclear, and thus the prospects and timeline for sustainable GoH co-financing of sector priorities remain uncertain. As some development partners are reducing or eliminating financing for these activities, the GoH has requested increased financing in the medium term from remaining development partners for the TWP and SHN services. Tables 1 and 2 below display the coordination in financing with respect to the two programs from 2013 to 20162. 1 The Caribbean Development Bank (CDB), the Inter-American Development Bank (IADB), the Global Partnership for Education (GPE), and the Ministry of Foreign Affairs, Trade and Development of Canada -MAECD 2 MENFP numbers indicate 1.3 million students have benefited from tuition or fee waivers under PSUGO. However, no financing framework for the PSUGO has been shared with the development partners. Additionally, although the proposed AF would be implemented through the 2016-17 school year, no donor financing is yet available for the TWP for 2016-17. A financing gap of about US$ 14.5 (to cover about 150,000 students) is therefore expected in 2016-17 to cover remaining cohorts. 9 Table 1: Financing of the Tuition Waiver Program from 2013 to 2016 Financing IDB CDB WB (IDA) GPE**** Total GAP 2013- 2014 Students 35,000 - 162,186 - 197,186 - Amount in US$ 3,150,000 - 14,596,740 - 17,746,740 - 2014- 2015 Students 70,000 32,000 - 98,100 200,100 - Amount in US$ 6,300,000 2,880,000 - 8,829,000 18,359,000 2015- 2016 Students - 63,106 - 39,390 102,496 67,504 Amount in US$ - 5,679,540 - 3,545,100 8,874,540 6,075,360 Table 2: Financing of the School Health and Nutrition Program from 2013 to 2016 WB WFP* HRF*** CDB (IDA) GPE**** PNCS Total 2013-2014 Students 698,000 - - 84,277 - 110,000 892,277 Not Not Amount Available Available Not in US$ ** - - 8,050,313 - ** Available 2014-2015 Students - 76,500 22,222 - 34,000 - 132,722 Amount in US$ - 6,885,000 2,000,000 - 3,060,000 - 11,945,000 2015-2016 Students - 76,500 22,222 - 34,000 - 132,722 Amount in US$ - 6,885,000 2,000,000 - 3,060,000 - 11,945,000 (*) WFP is still seeking resources to cover March 2014-2015 and for the school years (2014-2015-2016). (**) Includes US$13.8 million from the Ministry of Foreign Affairs, Trade and development of Canada. (***) Financed by the Ministry of Foreign Affairs, Trade and development of Canada. (****) Numbers are indicative based on future co-financing which has been allocated for Haiti by GPE. 14. Ensuring Quality. The GoH is currently preparing a National Policy on Teacher Training, which will include a new strategy for pre-service training. This policy document is expected to be ready by September 2014. In addition to teacher quality, another key factor contributing to low learning outcomes is the limited capacity of the MENFP to regulate a largely non-public sector. As a result, three-fourths of all non-public schools continue to operate without the proper certification from the MENFP. To improve regulation of the sector’s non- public schools, in lieu of fully implementing ONAPE, the MENFP proposes to enhance the non- public school licensing process. The existing licensing system entails four levels of criteria to be 10 fulfilled, from operating permit to full licensing. However, the system is weak, centralized at the MENFP, and functioning with outdated and incomplete data and obsolete tools, exacerbated by a lack of human resources and outdated procedures. To date, about 4,000 non-public schools out of a total of 14,000 non-public schools have applied for licensing, but the MENFP only has the capacity to process about 200 requests per year. To improve the system, the MENFP, with technical assistance from USAID, has developed a decentralized system involving the DDEs and the Office of Education at the District level (Bureau de District Scolaire-BDS) which was launched in December 2013. Improving the licensing process is essential for improved quality of education and school accountability in a context where over 80 percent of primary and secondary schools are non-public. Rationale for the Combined Restructuring and Additional Financing 15. The Restructuring is proposed for two reasons to (i) establish a more achievable and measurable Project Development Objective (PDO), and (ii) to trigger the application of the Bank’s Operational Policy 4.12 on Involuntary Resettlement. . The restructured project would begin to address some key sector challenges identified by the GoH, and will align the Project with the GoH’s reframed priorities under the PIPE. For example, the implementation of the M Ap Li Net Ale reading instruction approach is designed to train existing teachers using a proven approach in Haiti to improve early grade reading; the associated impact evaluation would contribute to the knowledge base on instructional quality. In addition, strengthening the licensing system would be a key first step in allowing the MENFP to better regulate the qualifications of teachers. 16. The rationale for the AF is to provide continued financing while contributing to the MENFP’s SHN objectives, supporting student attendance and readiness to learn in public and non-public schools. These are critical prerequisites to improving learning outcomes. The AF would exclusively finance the Project’s existing SHN sub-component and related operating costs, ensuring continuity of financing for two additional school years. Financing for SHN activities was planned until the end of the 2012-13 school year under the IDA-financed Project. However, given that: (i) the GoH’s SHN strategy has not yet been finalized/adopted; (ii) the GoH is unable to ensure this financing as the FNE is pending a Parliament vote with no timeline for its approval; (iii) other development partners have reduced their funding after the earthquake emergency period and (iii) funds are available from the HRF for SHN; the AF is critical to cover the gap. 11 17. The proposed AF funded activities and Restructuring are fully aligned with the Haiti Interim Strategy Note FY13-FY14 (Report# 71885-HT) discussed by the Executive Directors on September 27, 2012. Both the Restructuring and the Additional Financing support Strategic Objective 3 of Building Human Capital by supporting school enrollment and the provision of school feeding services. They also support the Cross-cutting theme of Strengthening Governance. In addition, the AF serves as one of multiple entry points the Bank is using to respond to the key sector challenges, including sector dialogue, studies and analytical work and investment financing.3 The combined Restructuring and AF works in synergy with these financial and knowledge products under implementation or in preparation for the education sector. Transparency and sustainability are also being addressed through continued dialogue with the GoH. In particular, the GoH, Bank and other development partners agreed to work together to develop a draft medium-term financing framework for TWP and SHN Program activities. This framework is currently under development and is expected to be available by the end of July 2014. 18. Alternatives considered to AF. Other sources of financing were considered, including: (i) integrating the SHN Program costs in the national education budget; and (ii) seeking additional co-financing from other development partners. The integration of the SHN Program costs in the education budget is pending finalization of the SHN strategy and legal creation of the FNE, and the existing co-financing from other development partners for SHN services could not be augmented to fill the financing gap. The AF is therefore considered the most appropriate and timely financing mechanism to ensure the uninterrupted delivery of SHN services. 3 In addition to the proposed Restructuring and AF, the Bank is currently financing seven complementary activities (operations and knowledge services) supporting the education sector in Haiti: (1) an investment project financed by a First Grant from the Global Partnership for Education (GPE); (2) an Additional Financing (Second Grant) from the GPE, for the parent Education For All – Phase 2 Project; (3) a Development Policy Operation with prior actions on education; (4) an evidence-based policy note on education; (5) a Poverty Assessment; (6) a Public Expenditure Review; and (7) a political economy study and civil society engagement analysis of the education sector. Together, these activities support the GoH in meeting its strategic objectives in the education sector through financing key programs to support primary school enrollment and attendance, building a knowledge base, and strengthening sector management. 12 III. Proposed Changes Summary of Proposed Changes 19. The Restructuring is submitted to (i) establish a more achievable and measurable Project Development Objective (PDO), and (ii) to trigger the application of the Bank’s Operational Policy 4.12 on Involuntary Resettlement. The AF is sought in order to extend funding of the SHN Program, under component 1.3 of the Project, by 2 school years. Proposed changes also include revising the Project design and activities, and adjusting to actual costs and existing implementation capacity. The Project closing date would be extended for 15 months given additional time needed to complete original and revised activities. In addition, changes are proposed to the results framework. These proposed changes to the Project are in response to Government of Haiti (GoH) priorities. Although the overall risk rating is maintained as high, risks for each category have been updated to reflect the changes in the overall country context, as well as those at the sector level. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ X ] No [ ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ X ] No [ ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ X ] No [ ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ X ] No [ ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Development Objective/Results PHHHDO Project’s Development Objectives Original PDO 13 The objective of the Project is to support the Strategy for Rebuilding the Education System through the implementation of sustainable programs to improve: (a) access, particularly of under-served populations, to Primary Education; (b) quality of Primary Education; and (c) the institutional capacity in the Recipient's education sector. Change in Project's Development Objectives PHHCPDO Explanation: The PDO would be revised to be consistent with the PIPE and the Haiti ISN, and to better reflect expected measurable impact within the timeframe of the Project. First, the revised PDO would aim to support enrollment of students instead of access to education; access to primary education cannot be properly measured due to lack of data. Second, the original PDO focus on improving the quality of primary education was not measurable, as there are no system wide learning assessments in place to enable time-consistent measurement of learning outcomes in Haiti. However, the GoH plans to put in place a learning assessment system under GPE financing currently under preparation, which—if approved—would establish a baseline for measuring learning improvements in the future. In the meantime, the Project would (i) measure at the PDO level the impact of SHN activities on student attendance, and (ii) implement a focused intervention on improved reading instruction and an associated impact evaluation, which are expected to inform future scale-up of interventions to improve reading achievements. Third, the wording of the original PDO to focus on improving “institutional capacity” would be revised to focus on strengthening sector management, which better reflects the outcomes associated with revised Component 3 activities – including school licensing. Finally, the revised PDO would also reflect that the Project’s expected impact would be on families in disadvantaged areas of the country. Non-public primary schools benefiting from measures to improve student enrollment and public and non-public schools in which student attendance is expected to be maintained were chosen because they are located in low-income areas. Proposed New PDO - Additional Financing (AF) The objectives of the Project are to support: (i) enrollment of students in select non-public primary schools in disadvantaged areas; (ii) student attendance in select public and non-public primary schools in disadvantaged areas; and (iii) strengthened management of the Recipient’s primary education sector. Change in Results Framework PHHCRF Explanation: The number of Project indicators would be reduced to 15.4 For the PDO, the number of indicators would be reduced to three vs. four originally, and the number of intermediate indicators would be maintained at twelve. a) Dropped indicators (seven indicators) Two original PDO indicators related to quality and sustainability would be dropped to reflect the revised PDO. The quality-related indicator would be replaced with a PDO indicator on student attendance. Sustainability issues are being addressed outside of the Project and would no longer be in the results framework. A financing strategy for the SHN Program is under development and it is expected to be finalized in 2014. A three-year budget programming system is being introduced this fiscal year to integrate gradually into the national budget the recurrent costs generated by external financing and investment projects. Given the priority the GoH is placing on revitalizing school licensing as a means of strengthening sector management, the capacity-related indicator would be dropped from the PDO level, and introduced as a revised intermediate indicator under Component 3. 4 Please refer to Annex 1 for the detailed Results Framework and Monitoring Indicators. 14 Five of the original intermediate indicators would be dropped: - Under Component 1, the indicator on student dropouts would be dropped because it is an outcome indicator and not an intermediate indicator, and is not directly linked to the restructured Project activities. - Under Component 2, the indicator on effective practice for FIA graduates would be dropped because measuring their performance is not feasible while they are still unemployed. The indicator on teachers implementing Lekti se Lavni would also be dropped because Lekti would no longer be implemented; it would be replaced with a new indicator reflecting the M Ap Li Net Ale approach being adopted. - Under Component 3, the indicator on the production of a consolidated donor action plan would be dropped because it has become irrelevant since the production of the PIPE. - Under Component 4, the indicator on data collection and analysis training would be dropped because the restructured Project would not finance activities aiming at reinforcing the EMIS; other development partners are already providing significant financial and technical support to the information system. b) Revised indicators The PDO indicator on Access would be renamed to reflect the revised PDO (Enrollment), and its target values would be revised. The restructured Project would enroll 310,000 students in two years instead of 300,000 students in three years as originally planned for the TWP. Four intermediate indicators under Component 1 would be revised as follows: - For the two indicators on the number of additional classrooms and the number of communities receiving grants, the target values would be revised downwards due to the increase in the unit costs for school construction; implementation would also be extended to four years instead of three. - The indicator on the number of textbooks and readers per pupil would be reduced in scope to focus on the number of textbooks in TWP schools rather than on that of the Community based schools. In addition, this indicator would be monitored until the end of the school year 2013-2014 since the implementation of the TWP in the restructured Project would be reduced to two years instead of three. - The indicator on the number of direct Project beneficiaries would be revised to reflect the changes in the target values for: (i) the number of students enrolled through the TWP; (ii) the beneficiaries of the SHN Program with the HRF AF; and (iii) the number of students enrolled in the community based schools. Under Component 2, three intermediate indicators would be revised: - The target values for the indicator on the number of additional qualified primary teachers would be revised upward to account for a slightly higher number of certified teacher than expected under the Parent project in the existing recruited cohorts. - The indicator targets on the number of children participating in integrated nutrition/health program would be revised upward: SHN financing would continue with IDA funds for 2013-2014 and with the HRF AF for two additional school years (2014-2015 and 2015-2016). - The target values for the indicator on the development of teacher guides would be revised due to delays in its implementation. Under Component 3, the original PDO indicator on capacity – dropped from the PDO level – would be revised in its definition and moved to become an intermediate indicator on school support visits conducted by the MENFP. c) New indicators At the PDO level, a new indicator to measure Project impact on student attendance would be added. A new indicator to measure Project impact on sector management would also be added and this will measure the percentage of schools registered in the school licensing database. In Component 2, one indicator would be added to measure the number of students benefitting from improved 15 reading instruction approach M ap Li Net Ale. For the revised Component 3, one new intermediate indicator would be added to measure the restructured Project's contribution to strengthening sector management. Namely, an indicator on the restructuring of the school licensing system and particularly the functioning of the National Consultative Committee for School Licensing (NCC) would be introduced. For Component 4, two intermediate indicators would be added to capture progress toward Project management, monitoring and evaluation: one core indicator on the student learning assessment system; and one indicator to measure the implementation of Project impact evaluation activities, which are essential to inform the policy dialogue on the quality of education. Safeguard Policies The Environmental Category B will remain the same for the Restructuring and Additional Financing. No involuntary resettlement was expected for the parent Project, as it was assessed that the construction of community schools could be done on public land or with voluntary land donations only, without the need for resettlement. However, during project supervision one case was identified where six families, including 18 people, were resettled to clear the lands for the construction of the school. Given this case, and the scarcity of available land in some of the project locations, the Project was restructured to trigger OP 4.12. There are 80 sites where school construction will be carried out. For the ten sites where construction plans are underway, a screening process was carried out to identify any additional cases of resettlement. The only site where resettlement took place was the case mentioned above in Rosier. A Remedial Resettlement Action Plan (RRAP) was prepared, and agreements were reached between the GoH and the six affected families on the compensation and assistance they would receive per their entitlements under OP 4.12. For the additional 70 sites, the Project prepared a Resettlement Policy Framework (RPF) which clarifies the resettlement principles, organizational arrangements and criteria for land acquisition and minor resettlement. Out of the 70 sites, 53 have been identified. For these sites, the necessary due diligence will be carried out to screen for any potential impacts per OP 4.12. If impacts are identified abbreviated resettlement action plans will be prepared in accordance with the RPF. For the 17 sites yet to be identified, the Project’s Environmental and Social Management Framework includes a screening tool that has been updated to include identification of resettlement impacts per OP 4.12. If those impacts are identified, the RPF will apply or different sites will be selected as to avoid resettlement. Both the RPF and the Remedial Action Plan have been disclosed on both the Bank and Client websites. Covenants Explanation: One legal covenant would be dropped, four revised, and four new legal covenants added, as described below. Dropped Original Covenant: No later than December 1, 2012, the Recipient shall establish, and thereafter operate and maintain during Project implementation ONAPE with a structure, functions and responsibilities acceptable to the Association. This legal covenant would be dropped since the restructured Project would support the enhancement of the licensing system in place of ONAPE. Revised Original covenant: No transfer of Financing funds shall be made to any SMC or Beneficiary Service Provider, as the case may be, prior to the date on which the pertinent SMC or Beneficiary Service Provider has entered into the pertinent Grant Agreement. This language of this legal covenant would be clarified, without making substantive changes. 16 Revised covenant: No transfer of Subproject Grant funds shall be made to any SMC or Beneficiary Service Provider, as the case may be, prior to the date on which the pertinent SMC or Beneficiary Service Provider has entered into the pertinent Subproject Grant Agreement. Original covenant: The Recipient shall ensure that the Project is carried out in accordance with the ESMF. A reference would be added to the RPF developed under the Bank Policy OP 4.12 on Involuntary Resettlement, which has been triggered under the Restructuring. Revised covenant: The Recipient shall ensure that the Project is carried out in accordance with the ESMF and the RPF. Original covenant: The Recipient shall include in the Project Reports referred to in Section II.A of Schedule 2 of the Financing Agreement adequate information on the implementation of the ESMF, any environmental management plan or similar safeguard instrument. The language would be revised to include the implementation of the RPF which has been established. Revised covenant: The Recipient shall include in the Project Reports referred to in Section II.A of Schedule 2 of the Financing Agreement adequate information on the implementation of the ESMF and the RPF, any environmental management plan or similar safeguard instrument. Original covenant: The Recipient, through MENFP, shall ensure that any works to be carried out under the Project do not involve any Involuntary Resettlement or affect Natural Habitats, Forests or Physical Cultural Resources. The reference to Involuntary Resettlement would be dropped because the Bank Policy OP 4.12 on Involuntary Resettlement has been triggered under the Restructuring. Revised covenant: The Recipient, through MENFP, shall ensure that any works to be carried out under the Project do not affect Natural Habitats, Forests or Physical Cultural Resources. New New Covenant: No later than September 30, 2014, establish and thereafter operate and maintain throughout Project implementation, a committee (the National Strategic Committee) with a structure and functions and responsibilities acceptable to the Association, as set forth in detail in the Operational Manual. This covenant supports the establishment of a steering committee for the Project. New covenant: The Recipient shall carry out the RRAP in accordance with its terms and in a manner satisfactory to the Association. This covenant would support the implementation of remedial actions to be undertaken for the school construction site in Rosier, on which resettlement of affected people occurred. New covenant: The Recipient shall update the Operational Manual by not later than July 31, 2014 in a manner satisfactory to Association. This covenant is to ensure the integration of the changes implied by the Project Restructuring in the Operational Manual. New Covenant: By no later than September 30, 2014, the Recipient through MENFP, shall appoint, and thereafter maintain throughout the duration of the Project implementation, independent verification agencies, with qualifications, experience, and terms of reference satisfactory to the Association, for purposes of the third-party verification of the Subprojects to be carried out under the Project. This covenant would be added in support of the establishment of independent verification agencies 17 responsible for undertaking technical audits of the TWP and SHN Program. Finance Description of Ln/Cr/TF Agreement Status Recurrent Frequency Action Covenants Reference 1. For purposes of appraising and approving eligible Student Enrollment Sub-projects, the Recipient shall establish and thereafter operate and maintain throughout Project implementation, a nine Not Schedule 2 No IDA-H7400 member steering complied Yearly Section I.A.2 Change committee consisting of with representatives of MENFP, MEF, non- public education providers, parents’ associations and teachers’ unions, all with qualifications acceptable to the Association. 2. No later than December 1, 2012, the Recipient shall establish, and thereafter operate and maintain Not Marked Schedule 2 during Project IDA-H7400 complied for Section I.A.3 implementation with Deletion ONAPE with a structure, functions and responsibilities acceptable to the Association. No transfer of Subproject Grant funds Schedule 2 shall be made to any Complied IDA-H7400 Yearly Revised Section I.C.3 SMC or Beneficiary with Service Provider, as the case may be, prior to 18 the date on which the pertinent SMC or Beneficiary Service Provider has entered into the pertinent Subproject Grant Agreement. 1. The Recipient shall ensure that the Project Partially Schedule 2 IDA-H7400 is carried out in complied Yearly Revised Section I.F. 1 accordance with the with ESMF and the RPF. 2. The Recipient shall include in the Project Reports referred to in Section II.A of Schedule 2 of the Financing Agreement Not Schedule 2 IDA-H7400 adequate information on complied Yearly Revised Section I.F. 2 the implementation of with the ESMF and the RPF, any environmental management plan or similar safeguard instrument. 3. The Recipient, through MENFP, shall ensure that any works Schedule 2 to be carried out under Complied IDA-H7400 Yearly Revised Section I.F. 3 the Project do not affect with Natural Habitats, Forests or Physical Cultural Resources. No later than September 30, 2014, establish and thereafter operate and maintain throughout Schedule 2 Project implementation, Not Yet IDA-H7400 Section I.A.1 a committee (the 09/30/2014 New Due (b) (ii) National Strategic Committee) with a structure and functions and responsibilities acceptable to the 19 Association, as set forth in detail in the Operational Manual The Recipient shall carry out the RRAP in Schedule 2 accordance with its Expected IDA-H7400 Yearly New Section I.F.7 terms and in a manner soon satisfactory to the Association. The Operational Manual shall be Schedule 2 updated by not later Not Yet IDA-H7400 09/30/2014 New Section I.B.3 than July 31, 2014 in a Due manner satisfactory to the Association. By no later than September 30, 2014, the Recipient through MENFP, shall appoint, and thereafter maintain throughout the duration of the Project implementation, independent verification Schedule 2 Not Yet IDA-H7400 agencies, with 09/30/2014 New Section I.A.3 Due qualifications, experience, and terms of reference satisfactory to the Association, for purposes of the third- party verification of the Subprojects to be carried out under the Project. Finance PHHHFin Loan Closing Date - Additional Financing ( AF for Haiti Education for All Project Phase II - P147608 ) Source of Funds Proposed Additional Financing Loan Closing Date Haiti Reconstruction Fund 30-Sep-2016 Loan Closing Date(s) - Parent ( Haiti - Education for All Project - Phase II - P124134 ) PHHCLCD Explanation: The Closing Date would be extended to September 30, 2016. This fifteen-month extension would also allow the Project to achieve the "Support to Communities" sub-component objectives; this sub-component has seen delays 20 in the preparation of the communities and school construction. In addition, the extension of the closing date is required in order to achieve substantial results for the new activities on (i) enhancing the school licensing system and (ii) introducing new reading instruction approach in Grades 1 and 2 of selected schools. Status Original Closing Current Closing Proposed Closing Previous Closing Ln/Cr/TF Date Date Date Date(s) IDA-H7400 Effective 30-Jun-2015 30-Jun-2015 30-Sep-2016 Allocations - Additional Financing ( AF for Haiti Education for All Project Phase II - P147608 ) Disbursement %(Type Source of Allocation Currency Category of Expenditure Total) Fund Proposed Proposed HRF CAD GO,CW,OP,TRN,CS 14.75 100.00 Total: 14.75 Reallocation between Disbursement Categories PHHRBDC Explanation: The following changes are proposed with respect to the IDA funds: Category 1 would be increased from XDR27.9 million to XDR31.7 million in order to (i) cover the increase in the number of students participating in the TWP, and (ii) finance the SHN Program until the HRF Additional Financing is operational in the school year 2014-2015. To make up for a financing shortfall due to delays in funding availability from other development partners, the parent Project has covered a higher number of TWP students than originally planned in existing cohorts during 2012-2013 and 2013-14 school years. As a result, by the end of June 2014, the parent Project will have spent the totality of the IDA funds allocated for the TWP and will surpass the original end Project target of a cumulative number of 300,000 participating students. For the 2014-15 school year, other development partners would therefore take over the financing of the TWP. With regards to the SHN Program, to avoid the disruption of service delivery to schools, the parent Project would finance the activities until June 2014. For Category 2, the amount allocated to teacher training would decrease as a result of the reduction of the student teachers to be trained in FIA, while the allocated amount for the introduction of the new reading instruction approach would increase with the expansion of this approach to TWP schools. Thus, the total allocated amount would be reduced to XDR5.5 million. This is a decrease by XDR0.7 million to cover the increase in Category 1. An amount of XDR1.4 million would be allocated to cover the expenses for the revised Category 3. This represents a reduction by XDR1.1million to cover the increase in Category 1. This reduction in the costs is the result of the redirecting of funds for component 3 activities, namely: support to the licensing system would replace support to ONAPE; and the Project would no longer support data collection and analysis training. Category 4 remains unchanged. An amount of XDR1.9 million would be reallocated from the Unallocated Category to cover the increase in 21 Category 1. The AF resources would be allocated in their totality to a separate Category 1 in a separate account from the IDA resources. Disbursement %(Type Current Category of Expenditure Allocation in XDR Total) Current Proposed Current Proposed 1- GO,CW,OP,TRN,CS Prt1 incl. Subprj. 27,965,000.00 31,750,000.00 100.00 100.00 2- GO,CW,OP,TRN,CS Part 2 6,214,000.00 5,500,000.00 100.00 100.00 3- GO,CW,OP,TRN,CS Part 3 2,486,000.00 1,400,000.00 100.00 100.00 4- GO,CW,OP,TRN,CS Part 4 3,728,000.00 3,728,000.00 100.00 100.00 5- UNALLOCATED 2,974,628.00 989,628.00 0.00 0.00 6- PPF REFINANCING 132,372.00 132,372.00 0.00 0.00 Designated Account 0.00 0.00 0.00 0.00 Designated Account 0.00 0.00 0.00 0.00 Total: 43,500,000.00 43,500,000.00 Components PHHHCompo Change to Components and Cost PHHCCC Explanation: The proposed Restructuring and AF would comprise four restructured components that align with the revised PDO. The components and key changes as compared to the parent Project are described below. Component 1: Support to Primary Education Enrollment. This component would consist of two subcomponents on (i) the TWP and (ii) basic educational services in Selected Rural Communities. Total component costs would be about US$49.1 million, financed entirely with IDA resources. Sub-component 1.1. Improving the Primary Education enrollment under the Tuition Waiver Program through, inter alia: (a) the strengthening of School Management Committees; and (b) the provision of Student Enrollment Grants for the carrying out of Student Enrollment Subprojects by School Management Committees. This sub- component would continue financing grants to School Management Committees and consultancies, but until the end of the school year 2013-2014 rather than the 2014-2015 school year as originally planned. The parent Project has financed a higher number of students than originally planned for the 2012-2013 and 2013-2014 school years due to delays in funding availability from other development partners. Other development partners will take over financing for the 2014-2015 and 2015-2016 school years. Sub-component 1.2. Improving basic educational services in Selected Rural Communities through, inter alia: (a) 22 the construction and rehabilitation of school buildings; (b) the financing of community based teacher salaries; (c) the acquisition of school supplies, materials, equipment and operating costs; and (d) the provision of training in school management to Selected Community Representatives. This sub-component would continue channeling grants and providing training to selected communities in underserved areas to offer basic educational services to school-aged children by constructing rural schools. The scope of the sub-component would be reduced from 200 to 80 participating communities and from 700 to 160 classrooms built, as a result of higher than anticipated unit costs and in line with MENFP implementation capacity. Component 2: Support to Improved Student Attendance. The restructured Project would include three sub- components, on (i) supporting pre-service teacher training, (ii) implementing a Haitian Creole structured reading instruction approach to improve reading instruction, and (iii) implementing a SHN Program to maintain student attendance and enhance students’ active participation during classes. Total component costs would be about US$22.9 million, including US$8.5 million financed with IDA resources and US$14.4 million financed with HRF resources. Sub-component 2.1. Expanding the number of certified teachers and improvement of the pre-service teacher training curriculum, through the carrying out of pre-service teacher training. With the Restructuring, the recruitment of a fourth FIA cohort would be canceled, and the MENFP focus would be on policy measures to absorb the unemployed graduated teachers. Therefore this sub-component would only finance (i) the costs for two years of classroom-based practice for a third cohort, currently in training, and (ii) the ongoing consultancies for the finalization of the FIA curriculum. Sub-component 2.2. Improving primary school performance through, inter alia: (a) developing a teacher’s guide including lesson plans for each day of class for selected grades; and (b) introducing an early grade reading instruction approach in schools supported by the Project to be selected in accordance with criteria acceptable to the World Bank. This sub-component would finance the development and distribution of teacher guides for Grades 1 and 2 to selected Project schools. . In place of the original reading instruction approach Lekti se Lavni, this sub-component would introduce the USAID-financed version of M ap Li Net Ale including, inter alia, teacher training and coaching, student and teacher assessment and the provision of teacher and student materials in Grade 1 in selected Project-financed schools (participating in the TWP and community-based schools). Given high unit costs of the existing M ap Li approach, the sub-component would also introduce a lower-cost version of the approach drawing on fewer human resources, including a reduced period of coaching by externally-recruited (non MENFP) staff. Both versions of M ap Li would be tested in a pilot phase in 2014-1015, benefiting approximately 12,000 students. In the 2014-2015 school year, an impact evaluation of M ap Li would be conducted (financed under Component 4). Based on pilot results, the sub-component would finance the scaling up of one approach to cover additional students in 2015-2016 by supporting a higher number of TWP and community-based schools to implement the approach, upon request. Sub-component 2.3. Strengthening the School Health and Nutrition Program through, inter alia, (a) the provision of: (i) daily morning snacks and hot meals in schools to be selected in accordance with criteria acceptable to the World Bank; and (ii) deworming medication and micro-nutrients to participating schools twice a year; (b) the preparation of a study on fuel efficient stoves for preparing school meals; and (c) based on the said study, the introduction of fuel efficient stoves in selected schools. This sub-component would continue supporting the Government’s SHN Program through the financing of (i) daily morning snacks and hot meals and the provision of micronutrients and deworming to selected schools in low income areas, and (ii) operating costs of the National School Feeding Program (the national agency responsible for supervising the sub-component). This sub- component would fill a financing gap with the AF amount to provide SHN services for about 76,500 students for two additional school years beyond the parent Project timeline. With the availability of a 2013 nutritional map of Haiti, SHN targeting may be revised. The AF could therefore also finance activities to prepare the transition to financing new schools, such as informing existing beneficiary schools about the changes and preparing new 23 participating schools during the 2014-15 school year if changes in targeting are needed. Service provision to the revised list of beneficiaries could begin in the 2015-16 school year. In addition, two new interventions would be introduced. To mitigate potential negative environmental impacts from the use of wood for cooking school meals, the Project would finance a study on and the gradual introduction of improved stoves in selected SHN schools. To improve service delivery monitoring, firms would be recruited for the verification of service delivery at SHN schools. Component 3: Strengthening Sector Management. This revised component would help strengthen the MENFP’s ability to manage its education sector by: Building the institutional capacity of MENFP to improve service delivery and overall educational governance through, inter alia,: (a) the strengthening of selected directorates of MENFP at the central and regional levels; (b) the strengthening of the school licensing system through: (i) the development of school licensing standards, methodologies and procedures; and (ii) the provision of training to: (A) school committees for developing school improvement plans; and (B) independent agencies for schools’ evaluation for licensing; and (c) the preparation of thematic studies and pilot programs to improve the budget programming and education system accountability. In place of supporting ONAPE, the component would support the MENFP in revitalizing the school licensing system. This would include, inter alia, financing of the National Consultative Committee for Licensing (NCC) and the development/revision of licensing standards, methodologies and procedures; provision of training for central level MENFP and DDE staff, as well as staff at the district and commune levels; provision of equipment; and training of independent agencies for school evaluation as well as training of schools committees on developing school improvement plans. Using a program-based budget approach, financing and technical support would be provided to the DDEs for effective school supervision. The grants to the DDEs would allow them to finance operational costs of school visits. Technical assistance and training would also be financed to increase the ability of the DDEs to record and report basic data on schools. The component would therefore re-focus efforts away from the central level to the departments, in line with the MENFP’s prioritization of decentralization. With the Restructuring this component would also finance thematic studies and pilots aimed at improving budget programming and education system accountability. It would contribute to the implementation of key studies such as a Public Expenditures Tracking Survey (PETS) and other similar studies on the education sector. Total component costs would be about US$2.2 million, financed entirely with IDA resources. Component 4: Project Management and Monitoring and Evaluation (M&E). Strengthening MENFP’s monitoring and evaluation capacity through: (a) the carrying out of impact evaluation of selected Project activities; and (b) the provision of technical assistance to oversee the implementation of Project activities. With the Restructuring, this component would finance the carrying out of an impact evaluation of the M Ap Li Net Ale approach (rather than an impact evaluation of the TWP as planned in the parent Project). M ap Li student learning outcomes would be assessed at the beginning and end of the 2014-2015 school year using EGRA (Early Grade Reading Assessment). (Total component costs would be about US$6.1 million, including US$5.8 million financed with IDA resources and US$380,000 financed with HRF resources. Current Component Name Proposed Component Name Action Improving Access to Quality Support to Primary Education Enrollment Revised Primary Education Support to Teaching and Learning Support to Improved Student Attendance Revised Institutional Strengthening and Strengthening Sector Management Revised 24 Governance Project Management, Monitoring Project Management, Monitoring and and Evaluation: Strengthening Evaluation: Strengthening MENFP's Revised MENFP's monitoring and monitoring and evaluation capacity evaluation capacity Project Costs by Component (US$) Parent Project (IDA) Additional Financing (HRF) Total Component 1 49,060,418 49,060,418 Component 2 8,498,655 14,370,000 22,868,655 Component 3 2,163,294 2,163,294 Component 4 5,760,543 380,000 6,140,543 Unallocated 1,529,183 1,529,183 PPF 204,543 204,543 TOTAL 67,216,635 14,750,000 81,966,635 Other Change(s) PHHHOthC Change in Institutional Arrangements PHHCIArr Explanation: The institutional arrangements would largely remain unchanged under the AF. The main changes are : (a) the establishment of a committee (the National Strategic Committee) with a structure and functions and responsibilities acceptable to the World Bank no later than September 30, 2014, as set forth in detail in the Operational Manual; (b) the production for the first year of AF implementation not later than September 30, 2014 of the annual Project work plan and budget in a manner acceptable to the World Bank. By no later than September 30, 2014, the Government would through MENFP, appoint, and thereafter maintain throughout the duration of the Project implementation, independent verification agencies, with qualifications, experience, and terms of reference satisfactory to the World Bank, for purposes of the third-party verification of the Subprojects (TWP and SHN Program) to be carried out under the Project. The Government would cause the verification agencies to carry out, throughout Project implementation, annual verification exercises of the Subprojects, including surveys, spot checks, verification of data provided and records kept by Beneficiary Service Providers in relation to the Subprojects, and assessments of the quality of services provided under such Subprojects, all in accordance with the provisions of the Operational Manual. The MENFP’s Basic Education Directorate (Direction de l’Enseignement Fondamental – DEF) would be responsible for implementation of the Support to the Quality of Reading Instruction sub-component. Firms would be recruited to support implementation of the M ap Li approach and to conduct its impact evaluation. 25 The proposed AF funded activities would largely use the existing implementation and institutional arrangements for the additional SHN Program activities. The SHN Program would continue to be delivered by NGOs subcontracted by the MENFP through the National School Feeding Program. Currently, the National School Feeding Program is responsible for supervision; however, due to a recent change in its director and a re- organization which has exacerbated its already low capacity level, it has not been able to produce quality supervision reports. Thus, to ensure the timely supervision of the sub-component, independent firms would be recruited to verify service provision in schools, attendance and beneficiary numbers. They would also be engaged in planned institutional strengthening activities. NGOs would report to the National School Feeding Program and PTU. The MENFP, also through DAEPP, would be responsible for implementing the licensing sub-component. As such, it would have a lead role in preparing all documents for Project planning, implementation and reporting. The PTU would be in charge of all fiduciary aspects, as with other Project components. A National Consultative Committee for Licensing would be created to develop and adopt new school licensing standards. DDEs and district-level education units would be in charge of processing schools’ applications. The MENFP would outsource school evaluation to external firms in order to expand the coverage of the licensing operation. No constraints are expected to implementation readiness as most existing institutional arrangements are unchanged. With respect to new activities, the MENFP has already begun preparations to implement the M ap Li approach; the recruitment of verification firms is currently underway under the SHN sub-component; and the MENFP has officially announced the creation of the NCC and the naming of its members is underway. Change in Implementation Schedule PHHCISch Explanation: The implementation of four subcomponents would be extended to September 30, 2016. For Component 1, the implementation of the TWP would end in June 2014 with the achievement of the objective to support the enrollment of 310,000 students. For the community-based schools, implementation would be extended until the new closing date; the Project is expected to build 60 to 75 classrooms per year during 2014- 2016 periods. For Component 2, the introduction of the reading instruction approach M ap Li Net Ale would be implemented in 2014-2015 and in 2015-2016. The AF would allow funding the implementation of the SHN Program for two school years starting in September 2014. For Component 3, on the enhancement of the school licensing system, activities would be implemented over three calendar years with the creation of the NCC, adoption of revised school licensing standards and registration of at least 60 percent of non-public schools in the licensing database by 2015-2016; and the enforcement of new licensing standards in 2015-2016. The PETS and the Sectoral Studies will be prepared in 2014-2015 and undertaken in 2015-2017. For Component 4, monitoring and evaluation activities would also be extended to cover the revised Project implementation period. 26 IV. Appraisal Summary Economic and Financial Analysis Explanation: With the changes in the target number for the indicators on the TWP, the SHN Program, the accelerated teacher training program and the community-based schools, the economic analysis confirms a net benefit and positive return for both revised components on “Support to Primary Education Enrollment” and on “Support to Improved Student Attendance”. The analysis shows a net benefit and positive return for the AF/Restructured Project. With an 8 percent discount rate, the Project has a net present value (NPV) of US$81.8 million with an internal rate of return of 14.9 percent. In addition, a “downside” alternative case was considered, in which the effects of Program activities on educational attainment are assumed to be only half as large. Even in this alternative case, the Project appears to be a good investment from an economic point of view, with an NPV of US$14.2 million and an internal rate of return of 9.3 percent. Several factors provide a strong economic rationale for public sector financing of primary education. First, information and incentives are imperfect. Parents may be unaware of the importance of early investments in the development of their children or, even if aware, be unable to finance these investments. This second case appears to be the prevailing situation in Haiti, where poverty is widespread but parents make concerted efforts to invest in schooling. Second, individual acquisition of education benefits society by making individuals more engaged and responsible citizens and better parents, as well as by potentially increasing the overall level of productivity and growth in the economy (Moretti 2006; Oreopoulos and Salvanes 2011). To the extent that individuals do not take these benefits into account when making investment decisions, government funding can increase the efficiency of investment in education. The World Bank provides added value in this Project through its convening power and technical expertise, as well as its financing. For example, the Bank has helped bring together multiple development partners to fund the TWP. During Project implementation, the Bank has and will continue to develop government’s capacity, under the “Strengthening Sector Management” component that supports the achievement of the third PDO. In addition, the Bank will continue to focus on innovation and learning, including at least one impact evaluation. These aspects of added value are expected to increase the Project’s development impact, compared to what the Project could achieve without the Bank’s involvement. Technical Analysis Explanation: Technical Appraisal. Technical aspects remain largely unchanged from the parent Project for the TWP and SHN sub-components. Targeting of SHN beneficiaries may be revised based on the 2013 nutritional map of Haiti. Restructured interventions are based on proven approaches from within Haiti and overseas, as well as on lessons learned from the parent Project’s implementation and mid-term evaluation. For instance, for the community-based school and SHN sub-components where capacity for implementation and monitoring and evaluation, respectively, can be strengthened non-governmental firms would be hired. The M ap Li Net Ale approach is a scripted program that builds strong foundations. Scripted programs are recognized to be among the most impactful and cost-effective quality interventions. M ap Li Net Ale is technically improved from Lekti se Lavni, on the basis of additional analysis of Haitian Creole linguistics and Haitian student learning. Social and Environmental aspects. The introduction of improved cookstoves is crucial in the Haiti context with a nationwide deforestation. In addition to protect the environment it is expected that improved cookstoves would generate revenue for local and small producers of combustibles and cookstoves fabricants. 27 Fiduciary aspects. The same fiduciary arrangements would be used for the AF funded activities as under the parent Project. Financial management arrangements under the parent Project continue to be appropriate. Procurement for the AF funded activities would be carried out in accordance with the procurement arrangements for the Parent Project. The Procurement Plan would continue to be updated at least annually or as required to reflect actual Project implementation needs. An assessment of procurement capacity has confirmed that the existing PTU is adequately staffed, and with appropriate competencies, to implement all procurement activities related to the proposed AF funded activities. With respect to the SHN sub-component, the original procurement method for SHN service providers under the parent Project called for the selection of consultants (firms or NGOs) using selection under fixed budget. Given that SHN service provision consists largely in the provision of goods (food and/or prepared meals) rather than intellectual consultant products, this method was changed to a goods-based procurement method. Under this method, contracts are awarded to pre-qualified bidders offering the lowest evaluated and substantially responsive bids, which means that bidders must offer the goods which meet the requirements, and they must meet qualifying criteria specified in bidding documents. A technical audit of SHN contracting is underway and will inform future adjustments in procurement method, if necessary. Risk Explanation: The recommended overall risk ratings for the Project continue to be “High” for implementation. Capacity and governance risks are high, and the risk of procurement- and financial audit-related delays high. There is also a substantial level of risk related to the operating environment, as well as delivery monitoring and sustainability of Project outcomes. Risk management measures would rely on, inter alia, the use of technical assistance and external firms to implement certain sub-components, robust operational manuals to mitigate governance issues, new arrangements with respect to fiduciary processes—including establishing renewable contracts for selected activities to reduce procurement-related delays and approving additional audit firms for Haiti to mitigate risk of late financial audits from existing overburdened firms— and continued open dialogue with the GoH on issues such as financial sustainability. 28 ANNEX 1: Results Framework and Monitoring Haiti: Additional Financing for the Education for All Project - Phase II Results Framework Project Development Objective (PDO): The objectives of the Project are to support: (i) enrollment of students in select non-public primary schools in disadvantaged areas; (ii) student attendance in select public and non-public primary schools in disadvantaged areas; and (iii) strengthened management of the Recipient’s primary education sector.  D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised PDO LEVEL RESULTS INDICATORS Indicator R Number 80,000 152,853 310,000 310,000 310,000 Annual Technical audit by DAEPP with Number of One: independent support from children per Enrollment monitoring agency, DPCE, school year of students EMIS ONAPE, (usually in select UEP September non-public to June) that benefit from primary the schools in enrollment disadvantag subsidy ed areas: provided Number of using IDA children funds. enrolled through the provision of tuition waivers Quality: D Percenta 16 16 20 Every Early Grade DEF will 25% Percentage of ge two years Reading Assessment contract a increase children for a statistically technical above enrolled in valid sample of audit by baseline in 5 Refers to school years 29 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised participating students in all independent reading schools for Project-supported monitoring ability in more than 3rd grade classrooms agency, with Creole or one year support from French. reading at School Proposed grade level in Management definition of Grade Three Committees Grade 3 and UEP minimum fluency and comprehensi on is 50 words correct per minute with 60% comprehensi on in Creole or 40% comprehensi on in French Indicator N Percent To be Not Not Baseline Baseline 2 x a year Technical audit EPT, PNCS, A baseline two: establish applicable applicable maintaine maintaine report by independent would be Student ed during d d independent firm firm obtained attendance in the 2013- [not [not during the select public 14 cumulativ cumulativ 2013-14 and non- school e] e] school year public year using primary verification schools in firms to disadvantage confirm the d areas: attendance Attendance rate in SHN rate is Program maintained in schools. The schools attendance benefiting rate is the from the number of school health primary 30 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised and nutrition (beneficiary) program students present at school on a daily basis over the course of the school year, divided by the total number of primary (beneficiary) students in each school, averaged across all SHN Program schools Sustainability D Percenta 0 10 50 90 Annual Financial records of DAEPP, Percentage : Percentage ge Ministry of Finance with support of teachers of from DPCE, that are community DAA, UEP working in teachers community financed by schools the whose Government salaries are of Haiti financed through community grants funded internally Indicator N Percent 29% Not At least At least At least Annual DDEs’ Report and Percentage Three: applicable 30% 50% 60% DAEPP Report is the total Strengthened number of 31 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised management non-public of the primary Recipient’s schools who primary have education submitted a sector: licensing Percentage of application, schools are registered in registered by the school the MENFP licensing in the database licensing database and have received at least the level 1 of licensing, divided by the total number of non-public schools as measured by the latest published national school census data on the total number of non-public schools in the country. Capacity: D Percenta 0 55 65 75 Annual Technical audit by DAEPP, The Percentage of ge independent with support percentage schools monitoring agency, from UEP, of schools in inspected at EMIS DDE, Project areas 32 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised least once per School meeting year by the Management MENFP’s MENFP Committee minimum of one inspector visit per year during the Project execution period INTERMEDIATE RESULTS Intermediate Result (Component One): : Support to Primary Education Enrollment Intermediate R Number 0 0 25 100 160 Annual Verification/supervi DDE, with Number of Result sion by DGS, support from classrooms indicator DAEPP, PTU with School built or One: support from school Management rehabilitated Number of management Committee, using IDA additional committees UEP funds which classrooms meet built at the minimum primary level standards for resulting school from construction. community- based school sub- component Intermediate R Number 0 10 63 80 80 Annual DAEPP DAA, with In order to Result disbursement support from receive indicator records DAEPP, Grants, Two: UEP Communitie Communities s must receiving participate in Grants a mobilization 33 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised and training process supported by the Project and elect community representativ es Intermediate R Number 3 3 3 Not Not Annual Technical audit by DAEPP, Measures Result applicable applicable independent with support the number indicator verification firms, from DPCE, of textbooks Three: Project UEP on average, Textbooks implementation per pupil in per pupil in reports IDA- tuition supported waiver tuition schools waiver schools. Dropout rate D Percenta 25 15 10 Annual Technical audit by DPCE, with Ratio of reduced ge independent support from individuals monitoring agency UEP, observed Inspectors, attending School school in Management Year X and Committee not observed in school Year X+1in all types of schools supported by the Project in a random sample. Baseline is for primary education in the 1990s as 34 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised calculated by the World Bank (2010) Intermediate R Number 150,000 230,000 245,000 91,000 103,000 Annual Technical audit by DPCE, with Approximate Result [not [not [not [not independent support from number of indicator cumulativ cumulativ cumulativ cumulativ monitoring agency UEP, students Four: Direct percent 50 e] e] e] e] Inspectors, directly Project 49 50 50 50 School benefiting beneficiaries, Management from the of which Committee Project female (TWP, SHN, M ap Li Net Ale and Community- based school sub- components) and the approximate percentage which are female. Intermediate Result (Component Two): Support to Improved Student Attendance Intermediate R Number 0 1,385 2,600 3,700 3,700 Annual Certification from DFP, with Number of Result DFP, EMIS data and support from individuals indicator completion data UEP graduated Five: from pre-service and from the Number of in-service training Pre-Service additional providers Teacher qualified Training primary component. teachers No new resulting cohort is from Project recruited as intervention of 2013-14 and Cohort 3 35 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised (last recruited cohort) is expected to be certified in September 2015. Intermediate R Number 70,000 81,365 81,000 76,500 76,500 Annual Technical audit by PNCS, with Students Result independent support from attending indicator Six: [not [not [not [not verification firms, UEP schools Children cumulativ cumulativ cumulativ cumulativ PNCS which participating e] e] e] e] implement in integrated the IDA- and nutrition/heal HRF- th program financed health and nutrition program and are fed one hot meal and one snack daily during the service contract period. Intermediate R Text Not Not Teacher’s Grade 1 Grade 1 Once Printed document, DEF, Teacher’s Result develope developed guide Teacher’s and Verification/supervi DAEPP Guide with indicator d developed Guide is Grade 2 sion by DEF, PTU daily lesson Seven: for Grade in use in Teacher’s with support from plans, Teacher’s 1 classroom Guides school management workbook Guide s, and are in use committees, and teaching developed by Teacher’s in verification firms activities MENFP Guide classroom developed developed s by MENFP for Grade for primary 2 Grades 1 and 36 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised 2. Grades 1 and 2 Teacher’s guides are in use in IDA- financed TWP and community- based schools and Increase in D Number 0 0% 10% 20% Annual External evaluation DFP, with Percentage effective support from increase on pedagogy DEF Knowledge, practice for Attitudes FIA and graduates as Practices determined survey by the survey measuring effective pedagogic practices. Survey to be administered and analyzed by independent contractor Teachers D Number 0 50 300 Every Technical audit by DEF, with Measure the implementin two years independent support from number of g Lekti se monitoring agency, UEP teachers in Lavni EMIS, Project Project- implementation supported reports schools implementin g the Lekti se Lavni approach to 37 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised literacy in Creole using technical observation protocol disaggregate d by gender Intermediate N Number 0 Not Not 9,000 8,000 Annual Technical audit by DEF Measures Result applicable applicable [not [not independent the number indicator cumulativ cumulativ monitoring agency, of students Eight: e] e] EMIS, Project (Grades 1 Students implementation and 2) in (i) benefitting reports schools from participating improved in the TWP reading (with IDA instruction funding or approach (M other ap Li Net sources of Ale) funding), and (ii) community based schools, implementin g the M ap Li Net Ale approach to literacy in Creole using technical observation protocol disaggregate d by gender. 38 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised Intermediate Result (Component Three): Strengthening Sector Management Consolidated D Text Not Complete Once Published reports of Cellule de The MENFP donor action complete d MENFP Pilotage completes plan drafted d and distributes a donor action plan encompassin g all education- related activities (TVET, primary, secondary, etc.) Intermediate N Text No Not Members The MENFP Once DAEPP report DAEPP NCC Result applicable of the National enforces members are indicator National Consultati new named and Nine: The Consultati ve school meet at least school ve Committe licensing once licensing Committe e for standards quarterly in system is e for School 2014-15. restructured School Licensing The NCC Licensing meets at proposes and are named least once adopts new quarterly, school and licensing develops standards, and adopts also in 2014- revised 15. In 2015- school 16, all licensing schools standards applying for a license are judged against the 39 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised revised licensing standards. R Percent 0 70 85 95 95 Annual Technical audit by DAEPP, The independent with support percentage monitoring agency, from UEP, of schools EMIS DDE, (donor- School financed Management TWP, SHN, Committees community- based, and Intermediate pilot schools Result using new indicator technologies Ten: to monitor Percentage of teacher school attendance) support visits receiving conducted at one or more least once per support year by the visits MENFP annually from a MENFP inspector during the Project execution period. Intermediate Result (Component Four): Project Management, Monitoring and Evaluation Data D Number 0 20 60 100 Annual Quarterly M&E DAEPP, Trainings in collection reports with support basic data and analysis from EPT, collection trainings DPCE, and analysis CFCE, UEP provided to inspectors, 40 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised SMCs and teacher training providers and community mobilizers N Text No No No No Yes Once EGRA results DEF EGRA is (Stage 1) (Stage 1) (Stage 1) (Stage 1) reports administered in selected [not [not schools cumulativ cumulativ [not [not participating Intermediate e] e] cumulativ cumulativ in the impact Result e] e] evaluation indicator for M ap Li Eleven: Net Ale in System for 2014-15 and learning in pilot assessment at schools the primary using new level technology to monitor teacher attendance in 2013- 2014. Intermediate N Number 0 0 1 2 2 Once Impact evaluation PTU, Impact Result reports Independent evaluations indicator Firms, WB completed Twelve: Impact for M ap Li Impact evaluation Net Ale in evaluations team TWP completed schools (in 2014-15) and for pilot schools using new 41 D=Droppe Cumulative Target Values Description d (indicator C=Contin 2015/201 Responsibili definition Core Unit of 2012/201 6 Frequen Data Source/ ue Baseline ty for Data etc.) Measure 35 2013/2014 2014/2015 cy Methodology N= New Collection (actual) R=Revised technologies to monitor teacher attendance (in 2013- 2014) 42 Annex 2 Operational Risk Assessment Framework (ORAF) Haiti: Additional Financing for the Education for All Project - Phase II Risks Project Stakeholder Risks Stakeholder Risk Rating Moderate Risk Description: Risk Management: There is a risk that sector stakeholders, and particularly The MENFP’s transitional sector plan and proposed AF activities have been subject to a the private sector, fail to fully buy in to the activities consultative process which has allowed all sector stakeholders a voice in the priorities proposed for financing. Buy-in from non-public schools is and activities selected for financing. The MENFP and the Bank (who is also the key to the success of activities requiring their Supervising Entity for GPE funds), would mitigate any remaining stakeholder buy-in partnership/compliance (i.e., TWP; licensing activities). risk by continuing to engage and communicate with sector stakeholders including the private sector. During the preparation it was agreed with the GoH to increase the Perceptions (among schools not benefiting from school representativeness of the Civil Society Organization in the existing education health and nutrition services) of favoritism, elitism, and consultation committees to address potential stakeholder concerns and highlight the political preferences linked to revised school health and benefits of the activities requiring their compliance. nutrition targeting could materialize. Frustrations could mount if adequate complaint mechanisms are not in place With respect to perceptions of favoritism related to school health and nutrition targeting, for managing such situations. criteria for and the method of selection of beneficiary schools will be clearly communicated to beneficiary schools and non-beneficiary schools in close proximity, from the beginning, and throughout, implementation of revised targeting. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Both CONTINUO US Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating High 43 Risk Description: Risk Management: There is a risk of market constraints (i.e., an insufficient Consultations with the PTU and MENFP technical teams have confirmed that sufficient number of qualified independent verification firms/NGOs firms should exist to justify the approach using external verification firms. The PTU in departments of intervention) delaying the delivery of would ensure close follow-up during recruitment processes with potential qualified results, particularly with the school health and nutrition candidates to ensure sufficient bids by these firms and prevent implementation delays. and community-based school interventions. The parent Project has begun the recruitment process for external firms on key activities There is a risk of continued procurement-related delays, (and in particular, verification firms for the SHN Program) on which there is a potential which could negatively impact multiple Project sub- for delays due to a relatively limited number of local firms. The Project would continue components. (For example, late recruitment of SHN to mitigate risks related to market constraints and delayed delivery by beginning service providers can lead to students receiving these recruitment processes well in advance of expected implementation start dates . services only a portion of the school year, and late recruitment of external verification firms can delay To mitigate the risk of procurement delays, the MENFP and Ministry of Finance will payments to tuition waiver schools and affect their ability establish direct contact between them to eliminate customs delays. In the meantime, the to adhere to the terms of their contract with the MENFP.) Project will launch procurement and recruitment processes on time (in coherence with the established procurement plan reviewed and approved by the Bank), and is exercising There is an ongoing risk of financial audits being the option of establishing renewable contracts for selected activities that are completed late due to overstretched or low-capacity audit implemented every year but for which currently a new bidding process is launched each firms. year. The Project procurement team will also actively follow up with bidding processes of key activities at risk of having delays due to late or slow bidding processes, to ensure There is the risk that the fragile context will continue to a minimum acceptable number of bidders present offers. delay the achievement of results in such a short time frame, particularly in the community-based school sub- With respect to late financial audits, the Bank financial management team is working on component. approving additional audit firms for Haiti, which should relieve the pressure on existing approved audit firms. The Bank and PTU will review audit firm Terms of Reference to ensure the appropriate number of audit firm staff and qualifications are clearly outlined. The Project will also closely follow the audit firm activities to minimize the risk of the selected audit firms delivering the expected work late. The proposed Restructuring would mitigate the risk of further delays with community- based school development by scaling down the subcomponent to outcomes that are achievable in the duration of Project implementation (i.e., fewer schools are being built), and by carefully planning the timing of the construction in order to avoid construction during hurricane season and make the schools available for use at the start of the school year. 44 Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Both CONTINUO US Governance Rating High Risk Description: Risk Management: Weak governance and/or poor change management could The Minister of Education is currently implementing a restructuring of the MENFP lead to a straying from the Project operational manuals toward a results-oriented organization. All contracts for consultant and technical and Bank procedures. assistant to the MENFP are performance-based. The Project will ensure the continued relevance of operational manuals and the information of key MENFP officials on There is a risk of the steering and oversight structures in manuals and Bank procedures. the MENFP sector plan—i.e., the National Strategic Committee, which should oversee sector plan The Bank and local development partners are and will continue to engage in a dialogue implementation—not being operationalized. This would with the MENFP to support the establishment of the oversight structures in the sector negatively impact GoH ownership of Project-financed plan. activities. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Both CONTINUO US Project Risks Design Rating Moderate Risk Description: Risk Management: There is a risk that the Project design does not enable it to The schools benefiting from the TWP were selected for participation based on their reach the poorest/most vulnerable children, but rather, classification on the poverty map of Haiti as being extremely weak in terms of basic reaches the children whose parents would have enrolled access to education. The Project was also designed to target the poorest and most them in school and assured their attendance regardless of vulnerable children by making it a part of TWP School Management Committee the Project’s intervention. responsibilities to recruit the targeted children in their communities of school-going age but unable to enroll. The training and information campaign for SMCs will reinforce the Project design and help ensure the targeting is implemented as planned. Under the parent Project, community-based schools are also being created in low-income, rural areas in which there are currently no schools, making it very difficult for children to enroll. 45 SHN participating schools were selected in 2006, also based on their classification on the poverty map of Haiti. In addition, focus group feedback obtained during ICR missions for the Haiti Education For All Project – Phase I—which initiated IDA- supported financing of the SHN Program—confirms that many students in participating schools, prior to the program, were listless and had poor attendance because of lack of nutrition at home; school attendance was reported to be higher and more regular and sustained in beneficiary schools. A baseline on student attendance in relation to measuring SHN Program impact on attendance will be established during the 2013-14 school year, along with the collection of data on school attendance in beneficiary schools. Baseline findings will also allow the Project to adjust its approach as needed for this sub-component. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Both CONTINUO US Social and Environmental Rating Moderate Risk Description: Risk Management: There is a risk that cooking practices involving the use of The Bank is exploring with other stakeholders (PNCS, other partners involved in school charcoal as cooking fuel may contribute to adverse health and nutrition activities) the use of environmentally friendly cooking technologies environmental impacts if not adequately managed. that could be applied systematically to Project SHN interventions. A feasibility study for the replacement of traditional stoves used in schools with improved stoves is planned in Small-scale construction activities for educational 2014, and it is expected that the Project will begin investing in this technology in infrastructure by communities could cause minor adverse schools in 2015. environmental and social impacts if not adequately managed. The Project’s environmental management framework will help guide the client in how to mitigate and manage any adverse consequences of Project activities. A complaint There is a risk of involuntary resettlement occurring on mechanism will be set up to collect information about Project implementation, sites where community-based construction is planned, due particularly community selection, before conflicts arise. to the scarcity of land in some Project locations. The Bank’s Operational Policy 4.12 on Involuntary Resettlement has been triggered, and the Project has developed a Resettlement Policy Framework which clarifies the resettlement principles, organizational arrangements and criteria for land acquisition and minor resettlement, and will help guide the Government in managing cases of resettlement. 46 Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both CONTINUO US Program and Donor Rating Low Risk Description: Risk Management: There is a small risk of overlap with the interventions of The Project mitigates this risk through close collaboration with other development other development partners, particularly with respect to partners, particularly the IDB, MAECD, WFP, USAID and the CDB. The Bank is an health and nutrition activities, which is a sub-sector with a active member of the local education development partner group, a dynamic group of multitude of actors. partners that meets monthly. Development partners have also signed a partnership agreement to coordinate their interventions. With respect to SHN, the Project is developing a joint partner action plan for the strengthening of the PNCS taking into consideration PNCS needs and funding planned by various partners, including WFP and MAECD. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both CONTINUO US Delivery Monitoring and Sustainability Rating Substantial Risk Description: Risk Management: There is also a risk of the SHN Program attendance data The PNCS as well as the PTU would be responsible for the supervision of activities of collection firms providing inaccurate information, or not the recruited firms, as well as the management of their service contracts to ensure making the data available in a timely manner. satisfactory delivery of services. The Bank would closely follow up on these activities during the establishment period of the monitoring mechanism. Lack of strategy documents and lack of clarity with the Government’s financing plan and long-term position with To ensure the financial sustainability of its efforts, the GoH is currently preparing respect to certain components (community-based schools, policies on teacher training and on school health and nutrition. The Bank has been and policy on accelerated teacher training, financing for school would continue to closely collaborate with other sector partners and keep a harmonized health and nutrition) could preclude the sustainability of dialogue with the GoH on financial sustainability and adopting and implementing a Project-financed activities. transparent financial framework that reflects increasing financing responsibility by the GOH for key policies to expand access. Resp: Status: Stage: Recurrent: Due Date: Frequency: 47 Client In Progress Implementation 30-Sep-2017 Overall Risk Overall Implementation Risk: Rating High Risk Description: The overall risk rating is high driven largely by high capacity and governance risks; and the high risk of procurement- and financial audit-delays. 48