The World Bank Providing an Education of Quality in Haiti (PEQH) (P155191) REPORT NO.: RES50760 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PROVIDING AN EDUCATION OF QUALITY IN HAITI (PEQH) APPROVED ON NOVEMBER 10, 2016 TO THE REPUBLIC OF HAITI EDUCATION LATIN AMERICA AND CARIBBEAN Regional Vice President: Carlos Felipe Jaramillo Country Director: Lilia Burunciuc Country Manager: Laurent Msellati Regional Director: Luis Benveniste Practice Manager/Manager: Emanuela Di Gropello Task Team Leader(s): Quynh Thu Nguyen The World Bank Providing an Education of Quality in Haiti (PEQH) (P155191) BASIC DATA Product Information Project ID Financing Instrument P155191 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 10-Nov-2016 30-Oct-2022 Organizations Borrower Responsible Agency The Republic of Haiti Ministry of Education and Vocational Training (MENFP) Project Development Objective (PDO) Original PDO The objectives of the Project are to: (i) strengthen public management of the education sector; (ii) improve learning conditions inselected public and non-public primary schools; and (iii) support enrollment of students in selected public and non-public primary schools. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D4700 16-May-2019 05-Jun-2019 07-Aug-2019 30-Oct-2022 39.00 37.43 2.08 IDA-D1230 10-Nov-2016 20-Dec-2016 07-Mar-2017 30-Oct-2022 30.00 29.51 0 TF-B0083 16-May-2019 05-Jun-2019 07-Aug-2019 30-Oct-2022 10.90 10.71 .19 The World Bank Providing an Education of Quality in Haiti (PEQH) (P155191) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. This Restructuring Paper seeks Country Director approval to amend the Grant Agreement (GA) for the Recipient- executed TF0B0083 (Support for Girls Access to Secondary Education in Haiti, funded by Global Affairs Canada), dated June 5, 2019, under the Providing an Education of Quality in Haiti (PEQH) Project (P155191; Grant Number D470-HT) to take into account the new tranche recently received on the Bank-executed TF073053 from Global Affairs Canada (GAC) in the amount of CAD4 million. The GA would also be amended to allocate these additional funds across disbursement categories in accordance with current needs. This is the second amendment to this GA. The first amendment, dated February 19, 2021, increased the grant amount from US$2 million to US$10.9 million to account for a previous tranche from GAC. B. Project Status 2. The Project was approved by the World Bank’s Board of Executive Directors on November 10, 2016 and became effective on March 7, 2017. The Project is now in its last year of implementation, with closure scheduled for October 30, 2022. 3. The Project has disbursed US$70.32 million to date - equivalent to 87.95 percent of the total combined grant amount of US$79.9 million - and is expected to fully disburse well before Project closure. The Project’s Progress towards achievement of the PDO remains Satisfactory, and Overall Implementation Progress was raised from Moderately Satisfactory to Satisfactory in the last Implementation Status and Results Report, approved on November 24, 2021. The progress driving the upgrade was related to: (i) learning assessments in French, Creole and Mathematics successfully implemented for the first time in June 2021 in those schools receiving the full Quality Assurance System (QAS) support; and (ii) the results-based financing grants disbursed against revised compliance criteria disbursed for the first time in June 2021 to schools that improved their scorecard rating. 4. Progress to date observed on PDO Indicators is as follows: i. PDO Indicator 1 “Use of an Education Management Information System (EMIS) to enable national implementation of the QAS:” The end target “EMIS data utilized for decision making by MENFP” has been attained. Based on school scorecards generated from the EMIS, the MENFP identified and provided performance bonuses in July 2021 to 48 non-public schools that improved their learning conditions score. ii. PDO Indicator 2 “Net proportion of schools supported by the Project that improve their school learning conditions score:” The current value for this indicator is 80.6 percent, surpassing the end target of 30 percent, thanks to close and proactive implementation and support arrangements. The World Bank Providing an Education of Quality in Haiti (PEQH) (P155191) iii. PDO Indicator 3 “Number of children enrolled in schools:” data indicates that the number of beneficiaries enrolled in schools surpassed the end targets for 3 sub-indicators out of 4. This includes (i) 38,470 beneficiaries for PDO 3.a, surpassing the end target of 16,000; (ii) 22,141 beneficiaries for PDO 3.b, surpassing the 16,500 beneficiaries end target – this sub-indicator is closed per the February 2021 restructuring; (iii) 119,718 beneficiaries for PDO 3.c, surpassing the end target of 61,000; (iv) 115,519 beneficiaries for PDO 3.d relative to the end target of 120,000; and (v) 107,196 beneficiaries for PDO 3.e surpassing the end target of 98,000. iv. There are currently no overdue audits on the Project. The current Financial Management, Procurement and Environmental and Social ratings for the Project are all Satisfactory. C. Rationale for Restructuring 5. The Amendment Letter dated February 19, 2021 to the GA for TF0B0083 states that the World Bank will increase the grant amount for the Project from US$10.9 million up to US$18 million if and when the Trust Fund (TF) has made available additional funds for such purpose. The new tranche received from GAC has provided an additional amount of US$2.2 million (net of fees) readily available for transfer from the Bank-executed TF073053. 6. It is planned that the additional US$2.2 million amount will be disbursed by June 30, 2022, and will contribute to financing the following activities of the current school year that are to be completed in April and May 2022: (i) operation of clubs for boys and girls in public schools on gender matters and development of non-technical skills, (ii) second round of collection of verification data related to the QAS, and (iii) last tranche of results-based financing to non-public schools. These activities are directly linked to PDO 1 “Use of an Education Management Information System to enable national implementation of the QAS”, PDO 3.c “Number of children enrolled in primary school through the provision of results-based financing to non-public schools”, and IRI 12 “Percentage of sub-component 2.2 public primary schools offering girls, boys and parent clubs established to develop interpersonal skills (with a focus on gender equality).” 7. It is also expected that, with this additional US$2.2 million from GAC, only about US$1 million will remain undisbursed on the Project by June 30, 2022, and this remaining amount will be disbursed fully by the Project closure date of October 30, 2022. II. DESCRIPTION OF PROPOSED CHANGES 8. The proposed restructuring responds to the Recipient’s request dated March 23, 2022 to increase the grant amount of TF0B0083 given the new tranche recently received from GAC and reallocate the additional funds across the designated disbursement categories. The restructuring will increase the total grant amount of TF0B0083 to US$13.1 million and reallocate the funds according to the Table below based on current needs across the Project components. Actual allocation (US$) Proposed allocation with additional funds (US$) Category 1 4,000,000 4,800,000 Category 2 700,000 800,000 Category 3 6,200,000 7,500,000 Total: 10,900,000 13,100,000 The World Bank Providing an Education of Quality in Haiti (PEQH) (P155191) III. SUMMARY OF CHANGES Changed Not Changed Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES The World Bank Providing an Education of Quality in Haiti (PEQH) (P155191) Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed TF-B0083-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: G NCS CS T WS OC 4,000,000.00 1,784,583.79 4,800,000.00 100.00 100 iLap Category Sequence No: 2 Current Expenditure Category: Sub G P2.1 P2.2f 700,000.00 193,308.13 800,000.00 100.00 100 iLap Category Sequence No: 3 Current Expenditure Category: Conditional G P3.1a 3.2b 6,200,000.00 4,701,337.80 7,500,000.00 100.00 100.00 Total 10,900,000.00 6,679,229.72 13,100,000.00 .