The World Bank Madagascar Basic Education Support Project (P160442) REPORT NO.: RES52271 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MADAGASCAR BASIC EDUCATION SUPPORT PROJECT APPROVED ON MARCH 29, 2018 TO MINISTRY OF ECONOMY AND FINANCE EDUCATION EASTERN AND SOUTHERN AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Zviripayi Idah Pswarayi Riddihough Regional Director: Amit Dar Practice Manager/Manager: Safaa El Tayeb El-Kogali Task Team Leader(s): Marina Bassi The World Bank Madagascar Basic Education Support Project (P160442) I. BASIC DATA Product Information Project ID Financing Instrument P160442 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 29-Mar-2018 31-Dec-2023 Organizations Borrower Responsible Agency Ministry of Economy and Finance Ministry of National Education Project Development Objective (PDO) Original PDO The project objective is to improve learning and promotion within the first two sub-cycles of basic education. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-62170 29-Mar-2018 19-Apr-2018 13-Sep-2018 31-Dec-2023 55.00 25.22 26.77 TF-B5990 23-Jun-2021 04-Aug-2021 04-Aug-2021 31-Dec-2023 9.60 0 9.60 TF-B3045 29-Jun-2020 05-Aug-2020 13-Oct-2020 30-Jun-2022 14.75 11.09 3.66 TF-A7105 29-Mar-2018 19-Apr-2018 13-Sep-2018 31-Dec-2023 45.70 19.68 26.02 The World Bank Madagascar Basic Education Support Project (P160442) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES A. Project Status 1) The Madagascar Basic Education Support Project was approved on March 29, 2018, became effective on September 13, 2018, and is scheduled to close on December 31, 2023. The project was originally financed by an IDA Credit (US$55.0 million) anda Global Partnership for Education (GPE) Grant (US$45.7 million). Since then, the Project has received two further GPE grants: (i) a COVID-19 Accelerated Funding Grant (US$14.75 million), which became effective on October 13, 2020; and (ii) an Additional Financing Grant (AF) (US$19.6 million), which became effective on August 4, 2021. 2) As of June 27, 2022, after nearly four years of implementation, 45.9 percent of the total funding of IDA Credit and GPE Grants combined has been disbursed. The mid-term review (MTR) mission, which took place over two periods – the first between May 3 and June 11, 2021, and the second from November 3-18, 2021 – resulted in an earlier restructuration, which World Bank management approved on April 24, 2022 and GPE Board endorsed on June 24, 2022, involving reallocation of less than ten percent of funds, with a view to (i) better match project activities (and resources for those activities) to the project development objective (PDO) based on lessons learned about effectiveness and efficiency; and (ii) respond to emerging challenges in the education sector, including those due to the COVID-19 pandemic. 3) In the Project’s most recent Implementation Status Report, dated June 23, 2022, progress towards achieving the project development objective (PDO) was rated ‘moderately satisfactory,’ with both PDO indicators showing positive results. The first indicator, measuring the percentage of pupils in public schools completing Grade 2 who are able to correctly read at the basic proficiency level, is on track: 30 percent of grade 2 students had already reached this goal, with the end target being 35 percent. The second indicator, measuring the promotion rate in the first two sub-cycles of basic education in public schools, has, at 59 percent, already exceeded its 55 percent end target; that said, progress against this second indicator will need to be followed closely in the next round, since the very positive result appears due in large part to the COVID-19 measure whereby over four-fifths of schools applied automatic promotion to the next grade. 4) Implementation progress is rated ‘moderately satisfactory’ overall, with twelve out of eighteen intermediate indicators moving towards meeting their targets. Moreover, the school construction program (under Component 2) is performing well leading to a ‘satisfactory’ rating for Component 2, despite a difficult political context. Financial management and procurement have both been rated ‘moderately satisfactory’ since December 2020, while the overall safeguards rating has been ‘satisfactory’ since the same date. 5) The risk ratings are for the most part ‘substantial’ and have deteriorated somewhat over the life of the project, due mainly to contextual factors, such as the political climate, the macroeconomic situation, and education strategic policy setting. This difficult context directly affected the MTR, which had to be carried out over two periods, five The World Bank Madagascar Basic Education Support Project (P160442) months apart, because of protracted discussions with the Government on the cost-effectiveness of proposed changes to the school construction program. 6) This current restructuring focuses on the Project’s Component 7: Support to the Education Ministry’s Education Sector COVID-19 Response Plan, which has been financed by the GPE COVID-19 Accelerated Funding Grant (TF0B3045) and aimed both at maintaining students’ learning and at protecting the health and well-being of students and teachers alike. In particular, Component 7 has enabled students to access remote learning during the period of school closure due to the COVID-19 pandemic and ensured the safe re-opening of schools following the pandemic’s peak outbreak. As of June 27, 2022, 75.2 percent of the Grant had been disbursed, and a further 19.4 percent of resources have been committed. 7) Progress under Component 7 is noted, with key achievements as follows: (a) Remote learning. Radio broadcast scripts have been developed with the support of the Education Development Center and UNICEF for radio and television broadcast and 10,000 tablets have been received and distributed to the regions. Additionally, a digital platform has been set up to provide educational resources for teachers benefiting from the tablets and 120 designers have been trained on the use of this platform. The Project also supported studies on the impact of the pandemic on learning outcomes, which are currently ongoing. (b) Water, sanitation and hygiene program. WASH kits, consisting of hand washing devices, soaps and masks, have been distributed to approximately 20,000 schools, out of a total of s 23,000 schools in the country. (c) Back-to-school campaign. At the World Bank’s request, an independent fiduciary agency has verified the list of community teachers claiming salary grants, in order to confirm eligibility. Based on the verification process, out of 56,000 teachers, 79 percent were found to be eligible, 15 percent require a second review and 6 percent were deemed ineligible. Eligible community teachers are now beginning to receive their grants. Additionally, a firm has been hired to provide psychological support to teachers and students as they return to school. B. Description of Proposed Changes 8) The present restructuring would involve the following changes: (a) Amending the Project’s Grant Agreement to extend the closing date of the GPE COVID-19 Accelerated Funding Grant (TF0B3045) by six months, from June 30, 2022, to December 31, 2022. (b) Adjusting the Project’s implementation plan to allow for the two activities - printing and delivery of self-learning textbooks, and payment of grants to eligible community teachers - to be fully carried out, and financed, under the GPE COVID-19 Accelerated Funding Grant. C. Rationale for Restructuring 9) The Project is of continued relevance to Government’s overall education sector program, including its on-going response to the impact of the COVID-19 pandemic on the education system. The Project continues to support the Government in the implementation of its Education Sector Plan, with a strong focus on broadening access (through school construction and school-based grants) and improving learning (through curriculum modernization, textbook production and teacher development). As noted above, the COVID-19 response has aimed to maintain students’ learning during school closures and to ensure safe re-opening following the outbreak. 10) Despite the advances highlighted above in the implementation of the Project’s Component 7 in Support to the Education Ministry’s Education Sector COVID-19 Response Plan, delays in two of the Component’s major activities are noted prompting the need for extension of the current closing date (June 30, 2022), as follows: The World Bank Madagascar Basic Education Support Project (P160442) (a) Remote learning. The printing and delivery of self-learning textbooks have taken longer than originally planned. The printing bids were opened at the beginning of October 2021 and contracts with the two selected companies – one in China and the other in India – were signed on April 8, 2022. A ready-to-print sample of the textbook has been sent to the two printing companies abroad, and the second sample is under review by the Education Ministry for final approval. The printing of all sample textbooks is now expected to be completed by the end of July. The books will then be delivered to, and clear customs at, Madagascar’s main port and the delivery from there to schools is estimated to take place by the end of November 2022. (b) Back-to-school campaign. As noted above, verification of the list of community teachers eligible for salary grants has taken place, whereas more than half of eligible teachers have already received their grants. The full implementation on this activity, which would include the completion of payments to all eligible teachers and the reporting, can only be completed by end of July 2022. 11) In view of the foregoing, the Government has requested an extension of the closing date of the GPE COVID-19 Accelerated Funding Grant (TF0B3045), from June 30, 2022, to December 31, 2022, to enable these last activities to be completed under the Project as originally planned. This would be the second extension of this Grant, with the first moving the closing date from the original date of November 30, 2021, to the current date of June 30, 2022. 12) The extending the closing date of the GPE COVID-19 Accelerated Funding Grant to December 31,2022 would not result in any changes to the Project design. It would also not require changes to the IDA Credit (6217-MG) or the two other GPE Grants (TF0A7105 and TF0B5990) given the closing date of December 31, 2023. 13) We have been advising, in an unofficial email from our GPE Secretariat counterpart dated June 27, 2022, that the GPE Board endorsed this new extension of the closing date of its COVID-19 Accelerated Funding Grant. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-62170 Effective 31-Dec-2022 31-Dec-2023 31-Dec-2023 30-Apr-2024 TF-A7105 Effective 31-Dec-2022 31-Dec-2023 31-Dec-2023 30-Apr-2024 TF-B3045 Effective 30-Nov-2021 30-Jun-2022 31-Dec-2022 30-Apr-2023 TF-B5990 Effective 31-Dec-2023 31-Dec-2023 30-Apr-2024