The World Bank Kosovo Education System Improvement Project (P149005) REPORT NO.: RES35753 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF KOSOVO EDUCATION SYSTEM IMPROVEMENT PROJECT APPROVED ON SEPTEMBER 10, 2015 TO REPUBLIC OF KOSOVO EDUCATION EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Linda Van Gelder Senior Global Practice Director: Jaime Saavedra Chanduvi Practice Manager/Manager: Harry Anthony Patrinos Task Team Leader: Joel E. Reyes The World Bank Kosovo Education System Improvement Project (P149005) ABBREVIATIONS AND ACRONYMS EMIS Education Management Information System IDA International Development Association KESIP Kosovo Education System Improvement Project MEST Ministry of Education, Science and Technology MoF Ministry of Finance PAD Project Appraisal Document PCU Project Coordination Unit PDO Project Development Objective POM Project Operational Manual RP Restructuring Paper SDG School Development Grant TA Technical Assistance WB World Bank The World Bank Kosovo Education System Improvement Project (P149005) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P149005 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 10-Sep-2015 31-Dec-2019 Organizations Borrower Responsible Agency Republic of Kosovo Ministry of Education, Science and Technology Project Development Objective (PDO) Original PDO The Project Development Objective is to strengthen selected systems that contribute to quality, accountability, and efficiency improvements in education in the Republic of Kosovo. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57260 10-Sep-2015 20-Nov-2015 13-May-2016 31-Dec-2019 11.00 .92 10.09 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Kosovo Education System Improvement Project (P149005) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Restructuring Objective, Rationale and Background 1. This Restructuring Paper outlines the proposed simplification of the design and partial cancellation of credit proceeds for the Kosovo Education System Improvement Project (KESIP). The restructuring reduces the scope of the KESIP from a complex program focused on multiple policy areas1, to only three core sub-systems: School Development Grants (SDGs), Learning Assessments, and revising the teacher career scheme component to focus only on the teacher assessment. The proposed simplification of the project design seeks to ensure immediate satisfactory progress in project implementation. Recognizing that the achievement of the project development objective may require additional time, an extension would be considered only if the project shows clear signs of progress by July 2019 against the agreed milestones related to SDGs and piloting of “Matura” exam. Following the simplification of the project design, the restructuring paper proposes partial cancellation of credit proceeds in the amount of US$3.5 million. 2. The KESIP overestimated institutional capacity and the commitment of Kosovo counterparts to implement complex reforms. The KESIP was a follow up to the “Institutional Development for Education Project (IDEP)”, 2008 - 2012, which focused on institutional reforms and initiated some of the programs to be scaled up by the KESIP, including School Development Grants (SDGs), Teacher Career System, and Learning Assessments. However, the KESIP design overestimated institutional capacity and commitment of the key stakeholders in Kosovo to implement complex reforms in the education sector. A The high staff turnover in the Ministry of Education, Science and Technology (MEST), in the Project Coordination Unit (PCU) and among department directors, combined with a 6-month leadership vacuum post-election in 2017, contributed to implementation delays and loss of momentum and leadership. 3. Early proactive measures were not successful in accelerating project implementation. To remedy a slow start of the project, a one-year proactivity plan was developed in December 2017 to encourage the MEST to drive reforms forward, resolve procurement delays, and end frequent rotation of key staff in the PCU including project coordinators, procurement officer, and financial manager. The proactivity plan included actions aimed at increasing upper management oversight, rehiring the project coordinator and procurement officer in the PCU, and accelerating three subcomponents with the highest disbursement potential (SDGs, Education Management Information Systems - EMIS, and learning assessments). Despite the efforts by the counterparts and the Bank team, a mid-term evaluation of the KESIP in November 2018 revealed no major improvements in the project implementation. 4. The overarching limited ownership of the education reforms continued to affect implementation, management problems were not resolved, and frequent rotation of core PCU staff led to extensive delays in procurement processes, especially for EMIS for which bid evaluations took almost one year due to changes in the composition of the evaluation committee and unacceptable evaluation reports. 1 The original policy areas included: higher education financial autonomy, municipal budget reforms, education management information systems, school development grants, teacher policies, learning assessments, and licensing of higher education professions. The World Bank Kosovo Education System Improvement Project (P149005) 5. Moderate progress was made in 2018 in the learning assessment component and teacher performance evaluation, while progress on SDGs and EMIS remained slow. Positive steps were the hiring of the twinning firm to support the learning assessment component and advances in the teacher performance evaluation pilot. As for the SDGs in 2018, approximately US$350,000 were disbursed, of the planned US$1.0 million. Despite advancements to train 160 school management committees and preparation of 2-year school development plans (2018 and 2019), the SDGs were not disbursed due to lack of coordination between the MEST and municipalities, and due to budget errors. The financing and flow of funds mechanism were clearly outlined and agreed with the MEST and the Ministry of Finance (MoF), and shared with all municipalities and schools, but there was no follow up by the MEST/PCU to advise municipalities to transfer the SDG amounts to schools with approved school development plans. This created an administrative bottleneck: MoF transferred funds to municipalities but these, in turn, did not disburse to schools. Also, the EMIS institutional capacity investments did not take place and related bylaws were not developed. As a result, the EMIS objectives are no longer achievable within the remaining project implementation period. 6. Project disbursements increased from 6% in 2017 to 16% in 2018 (see table 1 below). This increase consisted of disbursements of approximately EUR 330,000 for SDGs during November and December 2018, EUR 230,000 for the Learning Assessments twinning firm, and EUR 215,000 for the teacher assessment and development TA activities. By the end of 2018, the PCU fiduciary staff was in place; however, some of the technical specialists resigned and their posts were vacant. The Bank procurement and financial officers provided one-on-one training and guidance on World Bank procedures to the newly hired PCU procurement and financial management specialists. The World Bank Kosovo Education System Improvement Project (P149005) Table 1. KESIP Disbursements and Withdrawal Applications in Process EUR XDR USD Amount disbursed 795,695.05 654,761.91 919,055.06 Application in process 767,292.95 622,283.35 862,126.91 1,562,988.00 1,277,045.26 1,781,181.97 Commitment 7,900,000.00 Actual Disbursement rate 8.3% Disbursement rate with WA in 16.2% process Source: WB Client Connection System 7. The Mid-term Review recommended more accountability from the PCU and the MEST departments responsible for various project components. The Bank team stressed the need to improve policy guidance and higher-level project monitoring, especially by reactivating the Project Implementation Committee (PIC), which was part of the original project implementation arrangements. The PIC is chaired by the Minister of Education, Science and Technology, or his designee, and must provide the policy guidance and ownership, as well as close monitoring of the PCU and of the project overall. 8. The Mid-term Review also recommended a project restructuring that will simplify the project design and align it with the institutional capacity for implementation The Project Development Objective (PDO) to strengthen selected systems that contribute to quality, accountability, and efficiency improvements in education in the Republic of Kosovo remains valid, and is still attainable. The restructuring reduces the scope of KESIP from a complex program focused on multiple policy areas, to only three core sub-systems: School Development Grants (SDGs), Learning Assessments, and revising the Teacher Career scheme component to a focus only on the teacher assessment and development objectives already underway. These investments directly respond to the PDOs aimed at improving quality, accountability and efficiency of education. 9. Following the simplification of the project design, the restructuring also encompasses a partial cancellation now of credit proceeds in the amount of US$3.5 million, and a possible additional cancellation of US$3.26 million – if the milestones to extend the project are not achieved – at the original closing date of the project, December 31, 2019 (see paragraph 10). The Government of Kosovo formally requested the Bank to cancel US$3.5 million of credit proceeds for the project (letter dated March 15, 2019 enclosed). After this cancellation, the total remaining IDA credit to be disbursed will be approximately US$5.7 million. Expected disbursements in 2019 – based on approved investment plans for the three remaining sub-components (which have shown the highest disbursements) – is approximately US$2.7 million. The remaining amount of approximately US$3.26 million may be used for a possible extension or cancelled at the original closing date of December 31, 2019. Table 2 below The World Bank Kosovo Education System Improvement Project (P149005) shows the overall actual and projected KESIP disbursements by subcomponent, after the US$3.5 million cancelation with this restructuring request. Table 2. Actual and Projected Disbursements by Subcomponents (US$) After Partial Restructuring Cancellation of US$3.5 Million Subcomponent 2016-2018 2019 2020+ Disbursements Expected Funds for Possible Disbursements Extension Component 1. Strategic Planning, Financial Management, Monitoring and Decision Making in Edu. Sector 1.1 Planning, financial management and 43,742 decision-making capacity 1.2 Enhancing of Existing EMIS 22,950 1.3 School Development Grants 465,083 1,145,550* 1,449,297 Component 2. Management Capacity and Accountability to Enhance Quality of Education 2.1 Improvement to Teacher Career System 216,664 250,000 250,000 2.2 Monitoring Education Outcomes and 480,252 1,127,000** 1,392,748 Assessment of Student Learning 2.3. Quality Assurance of Higher Education 0 Component 3. Implementation and Communication Support 3.1 Implementation & Comm. Support 316,714 170,000 170,000 Total 1,545,405 2,692,550 3,262,045*** Source: KESIP PCU reports and estimates *includes US$971,612 in SDGs, US$152,719 for implementing firm, and US$21,291 for evaluation firm ** includes payment of twinning firm and equipment *** This amount proposed for a possible 2020 project extension, if and only if project meets progress milestones in 2019 10. While the proposed project simplification seeks to ensure a satisfactory project closure by December 31, 2019, a project extension may be required to fully complete all the activities and achieve the PDO. A project extension of up to 12 months would be considered only if the project shows clear signals of progress by July 2019. Two clear milestones have been agreed: (i) SDG disbursement to schools with approved plans and their use of approximately 500,000 Euros in the eligible areas of goods and training and (ii) piloting of the Grade 12 (Matura) exam with new items aligned to curricular reforms and launching of the National Student Assessment Framework (NSAF). Table 3 below shows the detailed action plan to reach these two milestones. The World Bank Kosovo Education System Improvement Project (P149005) Table 3. July 2019 Milestones Agreed for Consideration of the KESIP Closing Date Extension Sub-Component Action Plan Summary Disbursement Disbursement By July 2019 By Dec 31, 2019 1.3 School  Sign MoU with Municipalities 540,000 EUR 1.0 million EUR Development  Confirm 2018 procurement Grants packages  List of Teacher Training Providers  Providers signing training contracts with schools/or groups of schools  Delivery of school-based teacher training (academic/ICT)  Equipment/materials contracts signed, and goods delivered  One monitoring report – at school level (PCU and Implementing Firm)  In parallel, initiate negotiations with MoF for second tranche SDG of 460,000 Euros. 2.2 Educational  NFSA final draft (with input of 272,417 EUR 559,638 EUR Outcomes and stakeholders) Add: Assessment of  Final NFSA draft approved and (57,000 EUR (143,611 EUR Student Learning circulated Deliverable 3 Deliverable 4 & 5 -  Matura Committee and Twining – NFSA) ICT and Capacity Firm (CITO) develop action plan for pilot of Matura grade 12 (215,417 EUR 71,805 EUR assessment Deliverable 9 Deliverable 6 –  Final decision on methodology for – Matura International piloting new Matura items Exam) Assessments)  Matura exam piloted  Preliminary report on revised 71,805 EUR Matura 12 pilot 50% of Deliverables 10&11 - Monitoring and Reports 11. Three sub-components will be maintained but the scope of activities will be revised. The first two components (SDGs and Learning Assessments) had the highest disbursements by the end of 2018. SDGs can still reach its original targets of 160 schools implementing their own improvement plans, with approximately US$1.6 million disbursements by the project closing in December 2019. If an extension is approved, an additionally US$1.5 million of SDGs could be disbursed. Similarly, for Learning Assessments, the twinning contract of approximately US$1.5 million, in addition to IT investments, can be partially disbursed during 2019 and has the potential to be fully disbursed with a possible extension. For the teacher career scheme, although the human resource reforms (new senior teacher competencies and salaries) are not possible, this small technical assistance (TA) component has The World Bank Kosovo Education System Improvement Project (P149005) already helped design and pilot a teacher assessment model and launched the teacher development framework. The remaining small TA support will focus only on completing these two areas. In general, the project will continue to focus on improving core education systems, with more focus on school planning, management and implementation of quality related activities (including teacher training), as well as on continued system wide contributions, such as national and international (PISA and TIMSS2) learning assessments and dissemination of learning results at the school level. 12. The PCU will produce bi-monthly progress reports until July 2019 when progress against the milestones to be considered for extension will be assessed. In addition, the World Bank team is following up (through local team member) with the MEST departments responsible for SDG and Learning Assessment subcomponents to monitor proactivity and provide implementation support. The PIC is now functional, and the Bank team is advising on its monitoring role of PCU and overall project progress. B. Present Status of Project Components at Time of Restructuring 13. Sub-component 1.1 - reforming pre-university education financing. There has been limited progress on pre- university education financing policy, and thus limited use of project funds for these activities. The project supported an initial consultancy and proposed an analytical group for consultation and feedback, but the internal policy dialogue in the MEST did not advance to guide: (i) developing capacities for new financing formula implementation, (ii) developing monitoring mechanisms for budget efficiency, and (iii) school network management. 14. Sub-Component 1.1 – strengthening financial autonomy and capacity of universities. KESIP included some higher education sub-components and activities, even though KESIP was mostly a pre-university education project. There has been no progress in the higher education investments. After repeated World Bank requests and advice to prepare an operational plan for these investments, no plans were presented. Political commitment and capacity have been and remain limited, and champions within the MEST were not able to lead these investments. Only one consultant was hired, and work was not completed. A second higher education investment – piloting of higher education licensing (sub-component 2.3) – suffered similar limitations. 15. Sub-component 1.2 – improving the Education Management Information System. The analytical work and development of technical specifications for the central system and integration across MEST Departments, as well as guidelines for the legal and institutional structures within MEST were done in advance in 2017, with extensive support from the World Bank IT and EMIS specialists. However, once the procurement process was initiated, the subcomponent encountered major delays. Bids were received in February 2018, and the bid evaluation report was submitted only in the last quarter of 2018 and found unsatisfactory and returned for revision with comments. A second revision also could not justify the selection of the proposed firm (which was not the least cost) and rejection of other least cost bids. The World Bank provided additional EMIS technical assistance during this time but noted that the implementation of sub-component 1.2 was seriously compromised and desirable objectives may not be achievable within only one year of project implementation left. A critical milestone was set to decide if it was feasible to continue with the proposed EMIS investments, under KESIP: a successful finalization of current bidding process for Central Systems, contract signed, and work commenced by the end of January 2019. Also, by this time, the adoption of minimal legislation to introduce the central registries had to be made before the 2The Program for International Student Assessment (PISA) and the Trends in International Mathematics and Science Study (TIMSS) are international standardized tests aimed at measuring quality of learning across countries. The World Bank Kosovo Education System Improvement Project (P149005) contract for Central Systems could be signed. The agreed milestone was not reached as of February 2019, and the risks of a failed and low-quality implementation were too high within the remaining implementation time. The agreement with the MEST is to cancel the EMIS investments within KESIP and use the preparatory work to-date for possible implementation with alternative financing sources. 16. Sub-component 1.3 – School Development Grants. This subcomponent has advanced more successfully than other project areas since the early stages of the project implementation. It established the necessary implementation mechanisms: detailed manuals and external agencies to support training, implementation, and evaluation of the SDGs. A total of 160 schools are participating: 140 were pre-selected from low socio-economic status communities, and 20 competitively selected. Schools received required training on community participation, school planning, and procurement and financial management. However, as schools were to receive their 2018 grants, two obstacles caused delays. First, there were mistakes in the allocation of funds and the use of the appropriate budget codes in many municipalities. Second, some of the schools that did receive their grants had difficulties in procuring goods and teacher training services. During November and December 2018, the MEST was able to negotiate with the MoF the transfer of some SDGs to schools directly, without going through the municipal budgets (approximately EUR 200,000). However, most schools with approved 2018 school improvement plans did not receive their budgets before the closing of the 2018 fiscal year. Schools were not able to use approximately EUR 500,000 of their 2018 budget allocation. For 2019, the MoF has allocated approximately EUR 550,000 for school grants, via municipal budgets. Given the importance of the school-based management activities to achieve the PDOs related to quality, accountability and efficiency, the SDG subcomponent is one of the two policy areas selected for focused implementation in 2019. During its last year, the project will target the implementation of the remaining school grant activities including the ones that were not implemented in 2018 as originally foreseen. 17. Sub-component 2.1 – teacher career advancement and licensing. This sub-component has progressed in its objective to design a teacher assessment system and teacher development frameworks. A strategic framework on teacher development is in place and the teacher performance assessment pilot was completed and is being prepared for roll-out. However, the design and implementation of a teacher licensing scheme was not possible within the project. This required specific policy decision-making and commitment to new roles and salary scales assigned to teachers promoted to a senior level. This unresolved policy and financial foundations have challenged the initial motivation behind the teacher assessment and professional development which was meant to consolidate a career system including incentives (salary bonus) for career promotion. There is no possibility at this time for MEST to make a final decision on teacher career systems and, thus, KESIP can limit its contributions to the teacher assessment system design and its piloting, as well as the teacher performance frameworks, all of which have been completed. For the rest of 2019, there is just the need of limited technical assistance to consolidate the work on teacher assessment and teacher professional development. KESIP’s investment in the school-based teacher training programs are especially achievable if integrated with the MEST school-based management model. 18. Sub-component 2.2 – Learning Assessment. The main implementation approach for this sub-component was a twinning arrangement with an organization experienced on national and international learning assessments. In 2018, CITO was selected as the twinning firm, with only two years of implementation left. The original plan for improving the learning system was for three years. This plan included reforms to the national 12 grade standardized test, and for two sample tests in basic education. The MEST and CITO are adjusting the work program for only a two-year implementation, but it may not be possible to complete all planned outputs by December 2019. Therefore, the final targets for the component will be adjusted to focus only on the capacity building and tools for the reform of grade 12 (Matura) examination. Much of the work foreseen in relation to grade 5 sample- The World Bank Kosovo Education System Improvement Project (P149005) based assessment and grade 9 assessment can only be completed if at least a one-year extension is possible. However, as this is not certain, the plan is to focus on the Matura exam reform in 2019 and build capacity for other national assessments to be implemented by MEST after KESIP ends. Also, the project will continue to support Kosovo’s participation in international assessments: PISA and TIMSS. 19. Sub-component 2.3 – Licensing of Higher Education Professions. This was a second higher education policy area to be supported under KESIP, despite the Project’s primary focus on pre-university education. However, there has been no progress in this area, including no action plans prepared. Subcomponent 2.3 did not submit a formal plan of activities and investments during the life of the project to-date. II. DESCRIPTION OF PROPOSED CHANGES Proposed changes include simplification of project activities, adjustment of indicators and targets (without PDO change) and cancellation of US$3.5 million to be processed as per the Government of Kosovo request through the March 15, 2019 letter from the Ministry of Finance. A. Simplify Project Activities, Adjust Indicators and Targets 20. Recognizing the complexity of the project design, the political turnover of staff in the MEST, and low institutional capacity, the KESIP restructuring proposes to reduce the original focus on multiple education policies at the pre- university and university levels, to only three core policies focused on the overall objective of education quality, accountability and efficiency at the school level: SDGs, learning assessments and teacher assessment and development (this latter was always intended to be a small TA). Also, these policies provide opportunity for synergy. For example, SDGs can finance teacher training based on schools’ assessed needs. Also, results from learning assessments can be disseminated at the school level to help principals and teachers evaluate the performance of learners and propose improvement plans. Information on standardized learning results can be shared with schools via a simpler “school report card.” While the PDO is still relevant and remains unchanged, for the proposed simplification of project scope, the restructuring adjusts outcome indicators and their targets. Indicators for cancelled activities will be dropped. The aim of the proposed modifications is to make KESIP more implementable given the time and resources available. The following are the proposed adjustments to project activities, indicators and targets, as per the original project description. PDO Level Indicators 21. KESIP included four indicators aligned to the quality, accountability and efficiency improvements. Of these, the following two indicators will be dropped, as KESIP will cancel the municipal-school budgeting and higher education licensing activities: (i) municipalities allocating resources to schools according to revised formula, and (ii) licensing exams pilots. The remaining PDO indicators will focus on quality, accountability and efficiency at the school level and system wide. They are: a. “Reforms to Grade 12 Standardized Exams” (quality) b. “School Report Card Distribution and Public Display” (equity) This indicator will be revised to remain at a pilot level, and only to include learning assessment results and school statistics (number of students, teachers, and school grants received). c. “Beneficiary Schools Disseminating Reports on Grants…” (efficiency) will be maintained unchanged. The World Bank Kosovo Education System Improvement Project (P149005) Part I/Component 1 –Enhancing Strategic planning, financial management, monitoring and decision making in the education sector 22. The planning, financial and monitoring goals of this component will focus solely at the school level. The proposed simplification and restructuring are as follows:  Sub-component 1.1 – Strengthening Strategic Planning and Financial Management Capacities. This included pre-university and university level activities for budget formulas and autonomy. This sub-component and all intermediate indicators for this subcomponent will be dropped: (i) “National and municipal-to-school per capita formulas officially revised and used for resource allocation”; (ii) Budgeting and financial management rules or bylaws for school financial autonomy approved and used; (iii) “Rules for full financial autonomy in universities developed and approved.”  Sub-component 1.2 – Enhancing the Existing Education Management Information System. Given delays in procurement processes, uncompleted bylaws and institutional capacity, and limited implementation time left, the EMIS activities will be dropped with all its intermediate indicators: (i) “Education Institutions Updating Student Level-Data in EMIS Twice a Year”; and (ii) “EMIS Integrated and data exchange automated with four data bases on teacher licensing, student assessment, school map, and expenditures.”  Sub-component 1.3. School Development Grants. The activities, indicators and targets for SDGs remain unchanged. The school-based training component will be enhanced. Part II/Component 2 –Strengthening management capacity and accountability to enhance quality of education 23. As noted before, the management capacity and accountability to enhance education quality will focus solely at the school level. The proposed simplification and restructuring are as follows:  Sub-component 2.1: Implementation and Improvements to the Teacher Career System. The scope of this component will be reduced from efforts to impact the overall Career System for Teachers, to setting two core pillars leading to quality of teachers: teacher assessment and teacher professional development. Accordingly, the intermediate indicators will be revised as follows: the (i) “Percentage of registered teachers licensed at the Advanced Level (including the gender-differentiated indicator: “female teachers licensed”) will be revised to reflect only the creation of “a functional teacher assessment system”, and (ii) the Teacher Career and Licensing System Finalized” indicator will be revised to reflect only the creation of a “functional teacher professional development framework”. These two more limited outputs will be foundational for the MEST to continue to implement (outside of KESIP) the more substantive “Teacher Career System” objective—once related government policy and budgetary dialogue and agreements are reached.  Sub-component 2.2 Strengthening Capacities of Key Institutions for Monitoring Educational Outcomes and Assessment of Student Learning: The activities for Learning Assessment are revised to include only the development of the National Learning Assessment Framework, the revision and piloting of the 12th grade Matura assessment, and support for international assessments (PISA and TIMSS). Consequently, the intermediate indicator target of “Grade 9 and 12 examinations revised in line with Kosovo Curriculum Framework and Evaluated After Pilot” has been adjusted only to “Grade 12 examination revised and piloted in line with Kosovo Curriculum Framework”. The indicators for primary education, Grade 5 and 9 assessments, will be deleted: (i) System for Learning Assessment at the Primary Level”, and (ii) Rating Scales for Primary The World Bank Kosovo Education System Improvement Project (P149005) Level Learning Assessment. These were included as Bank core indicators, but no longer achievable given the limited project implementation time.  Sub-component 2.3 - Improving accountability and quality assurance of higher education through the development of key professional licensing statues in priority economic fields. All activities and the related intermediate indicator (bylaws on professional licensing developed and approved) will be cancelled. B. Partial Cancellation of IDA Credit 5726-YK 24. The Ministry of Finance (via the Ministry of Finance letter dated 15 March 2019 and received 18 March 2019) requested a partial cancellation of approximately US$3.5 million from the IDA Credit 5726-YK. Thus, a partial cancellation of the credit in this amount and related revision of the credit allocation by category of expenditure will be processed. Table 4 shows KESIP budget composition, original and after restructuring. Table 4. Original and Restructured KESIP Budget by Subcomponents (US$) Original Restructured Subcomponents Allocation Allocation (PAD) (RP) Component 1. Strategic Planning, Financial Management, 5,200,000 3,126,622 Monitoring and Decision Making in Edu. Sector 1.1 Planning, financial management and decision-making 1,100,000 43,742 capacity 1.2 Enhancing of Existing EMIS 2,100,000 22,950 1.3 School Development Grants 2,000,000 3,059,930 Component 2. Management Capacity and Accountability 5,000,000 3,716,664 to Enhance Quality of Education 2.1 Improvement to Teacher Career System 1,000,000 716,664 2.2 Monitoring Education Outcomes and Assessment of 3,000,000 3,000,000 Student Learning 2.3. Quality Assurance of Higher Education 1,000,000 0 Component 3. Implementation and Communication 800,000 656,714 Support 3.1 Implementation & Comm. Support 800,000 656,714 Total 11,000,000 7,500,000 C. Other Arrangements Remain Unchanged 25. While the Project institutional and implementation arrangements will also remain unchanged, the MEST staff will play a more direct role in the implementation. The technical and policy roles of the MEST departments will be clearly differentiated from the PCU fiduciary and coordination responsibilities. For this, the Project Implementation Committee will reflect a greater monitoring role of the Minister’s office (and advisors) and MEST departments – along the responsibility of the General Secretary for overall oversight. The three remaining policies and programs to be supported by KESIP--school-based management, learning assessments and teacher assessment and development—will receive targeted support by the PCU and attention by the Steering Committee. The World Bank Kosovo Education System Improvement Project (P149005) The Project will continue to follow the existing Project Operational Manual (POM), though the POM would be revised to reflect only the remaining activities in the simplified project resulting from the restructuring. 26. There are no outstanding audits under the Project. All audit and financial management reports have been submitted in time and found to be acceptable to the Bank. Both procurement and safeguards compliance are satisfactory, and no safeguards related issues have been reported. The Project’s environmental category does not change. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ The World Bank Kosovo Education System Improvement Project (P149005) Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Enhancing strategic planning, Enhancing strategic planning, financial management, financial management, 5.20 Revised 3.13 monitoring and decision-making monitoring and decision- in the education sector making in the education sector Strengthening management Strengthening management capacity and accountability to 5.00 Revised capacity and accountability to 3.72 enhance quality of education enhance quality of education Implementation and Implementation and 0.80 Revised 0.65 Communications Support Communications Support TOTAL 11.00 7.50 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IDA-57260- Disburs XDR 7,900,000.00 2,500,000.00 18-Mar-2019 5,400,000.00 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed The World Bank Kosovo Education System Improvement Project (P149005) IDA-57260-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: G,non-CS,CS incl.AUD,SDGs,TR,OC 7,900,000.00 1,275,819.92 5,400,000.00 100.00 100.00 Total 7,900,000.00 1,275,819.92 5,400,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2016 0.00 140,000.00 2017 0.00 520,000.00 2018 2,580,227.00 885,405.00 2019 4,927,424.00 2,692,550.00 2020 3,322,348.00 3,262,045.00 . The World Bank Kosovo Education System Improvement Project (P149005) . Results framework COUNTRY: Kosovo Kosovo Education System Improvement Project Project Development Objectives(s) The Project Development Objective is to strengthen selected systems that contribute to quality, accountability, and efficiency improvements in education in the Republic of Kosovo. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Schools managing resources and quality investments to improve learning (Action: This Objective has been Revised) Municipalities allocating resources to schools according 0.00 0.00 30.00 50.00 80.00 80.00 to revised formula (Percentage) Rationale: The activities related to this indicator are dropped. Note that this PDO indicator is repeated due to a wrong entry in the system. Of the four PDO original Action: This indicator has been indicators, only two are dropped: (i) percent of municipalities allocating resources to schools according to revised formula, and (ii) number of licensing exams Marked for Deletion piloted. One indicators is added, leaving the PDO after restructuring with three indicators. Beneficiary schools disseminating report on grant 0.00 0.00 0.00 0.00 60.00 60.00 budget allocation and utilization (Percentage) Action: This indicator has been Rationale: Revised Given simplification of activities for last year of project, just target has been adjusted from 80% to 60% of schools receiving SDGs. The World Bank Kosovo Education System Improvement Project (P149005) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 School report cards piloted at 0.00 0.00 0.00 0.00 20.00 20.00 school level (Percentage) Rationale: Action: This indicator has been The designs of the school reports cards will be simplified, just containing learning assessment information as well as school statistics (number of teachers, Revised number of students, and if schools are receiving school grants, and if so, amount). Municipalities allocating resources to schools according 0.00 80.00 to revised formula. (Number) Rationale: The activities related to this indicator are dropped. Note that this PDO indicator is repeated due to a wrong entry in the system. Of the four PDO original Action: This indicator has been indicators, only two are dropped: (i) percent of municipalities allocating resources to schools according to revised formula, and (ii) number of licensing exams Marked for Deletion piloted. One indicators is added, leaving the PDO after restructuring with three indicators. Reforms to Standardized 12 grade Assessment Applied No Yes (Yes/No) Rationale: This is a new indicator added to address the quality objectives of the PDO, and aligned to the restructured activities of Learning Assessment Component Action: This indicator is New focused on piloting Kosovo's 12 grade standardized assessment. Licensing Exams Piloted (Action: This Objective has been Marked for Deletion) Licensing Exams (Number) 0.00 2.00 The World Bank Kosovo Education System Improvement Project (P149005) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Rationale: Action: This indicator has been For project simplification, the Higher Education subcomponents have been cancelled. Note that this indicator is duplicated due to system entry Marked for Deletion problem. Only two PDOs have been dropped, out of original four. One has been added. Licensing exams piloted 0.00 0.00 1.00 2.00 2.00 2.00 (Number) Rationale: Action: This indicator has been For project simplification, the Higher Education subcomponents have been cancelled. Note that this indicator is duplicated due to system entry error. Only Marked for Deletion two PDOs have been dropped, out of original four. One has been added. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Enhancing strategic planning, financial management, monitoring and decision-making in the education sector Education institutions updating student-level data in EMIS 0.00 60.00 80.00 80.00 twice a year (Percentage) Rationale: Action: This indicator has been For the last year of the project, the student level EMIS module is expected to be operational with only a first round of school data entry. Marked for Deletion Rules for full financial No rules in place Rules developed Rules approved Rules implemented. Rules implemented. Rules iimplemented autonomy in universities The World Bank Kosovo Education System Improvement Project (P149005) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 developed and approved. (Text) Rationale: Action: This indicator has been Given the simplification and restructuring of the project, the Higher Education sub-components were cancelled. Marked for Deletion EMIS integrated and data 60% of schools and 80% of schools and exchange automated with four Integration and Integrated and data higher education higher education Integrated and data databases on teacher licensing, EMIS not integrated interoperability automated with at least providers update providers update automated with all student assessment, school framework developed 1 of the four databases student-level data student-level data databases map, and expenditures (Text) twice/year twice/year Rationale: Action: This indicator has been Expected EMIS data exchange was simplified from four to at least one other database (e.g., teachers). Marked for Deletion Budgeting and financial management rules or bylaws Bylaws not in place Bylaws developed Bylaws approved Bylaws in use Bylaws in use Bylaws in use for school financial autonomy approved and used. (Text) Action: This indicator has been Marked for Deletion School developing plans for quality investments through 0.00 0.00 0.00 80.00 150.00 150.00 school grants (Number) Rationale: Action: This indicator has been Based on the simplification of the project, the targets on strategic planning, financial and monitoring are focused at the school level. Revised The World Bank Kosovo Education System Improvement Project (P149005) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Number of schools that receive School Development Grants 0.00 100.00 150.00 150.00 (Number) Number of beneficiary schools in which parents and/or community members were involved in grant planning or 0.00 100.00 150.00 150.00 implementation (citizen engagement indicator) (Number) Strengthening management capacity and accountability to enhance quality of education School based teacher Functional teacher professional By laws defining teacher School based teacher professional development system No No competencies by level n.a professional development development policy in Framework Designed (Text) developed and approved policy in place place Rationale: Action: This indicator has been For project simplification and restructuring, the teacher professional development system framework will be designed and some additional technical studies Revised conducted. Female registered teachers licensed at the Advanced 0.00 20.00 level (Percentage) Action: This indicator has been Marked for Deletion Functional teacher Staggered teacher Pilot application Pilot application performance assesssment No No performance assessment n.a. completed completed system is in place. (Text) plan developed The World Bank Kosovo Education System Improvement Project (P149005) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Rationale: A teacher assessment system has been designed and piloted. As part of the restructuring and simplification, just some minor additional technical assistance Action: This indicator has been will be provided. The application roll out -- for registering teachers at the advanced level and reforms to career system -- will be done outside the project as Revised it requires additional policy dialogue and decision on allocation of national budget resources Grade 12 examinations revised Grade 12 exams not Revised Grade 12 exams Revised Grade 12 exams and piloted in line with Kosovo Exams revised aligned with KCF piloted and evaluated piloted and evaluated Curriculum Framework (Text) Rationale: Action: This indicator has been MEST will focus on revisions and piloting to Matura Exam (grade 12) in 2019, the last year of project implementation. Revised System for learning assessment No No No Yes Yes Yes at the primary level (Yes/No) Rationale: Action: This indicator has been Based on the simplification of the project, learning assessment will focus solely at the secondary level (Matura, Grade 12). Marked for Deletion Utility of the learning assessment system 0.00 0.00 1.00 2.00 2.00 2.00 (Number) Action: This indicator has been Marked for Deletion Bylaws on professional licensing developed and No bylaws in place Bylaws developed Bylaws approved Bylaws in place Bylaws in place Bylaws in place approved (Text) Action: This indicator has been Rationale: Marked for Deletion Marked for deletion because higher education sub-component will be deleted. The World Bank Kosovo Education System Improvement Project (P149005) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Implementation and Communications Support Feedback from school directors Assessment findings on Assessment findings on on improved planning capacity No Assessment No Assessment Baseline Assessment Process Assessment principals' capacity principals' capacity (Text) building building Rationale: Action: This indicator has been Remains the same, but focused on qualitative assessment to be conducted during the last year of project implementation. Revised IO Table SPACE The World Bank Kosovo Education System Improvement Project (P149005) Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document