OFFOAL (J '' Supplemental Letter No. 2 ROMANIA 2015 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan Nu nber 8481-RO (Romanii Secondary Education Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to paragraph k, Section II of the Schedule 2 to the Loan Agreement of even date herewith between Romania (he Borrower) and the International Bank for Reconstruction and Development (the "World Bank" or "Bank") for the above-referenced Project. The Borrower hereby confirms to the World Bank that the indicators set forth in the attachment to this letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly your ROMAN A B/ Authornz d Repr entative Attachment Attachment to Supplemental Letter Loan Number 8481-RO (Romania Secondary Education Project) Performance Monitoring Indicators Project Development Objective Indicators (*) Indicator Name Unit of Baseline Cumulative Tar et Values F Data Source / Responsibility for Measure YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 Methodology Data Collection Average dropout rate in MoNE's EMIS; the final grade in ' MoNE; School proect-s re high Percentage 6.5% 6.5% 6.2% 5.8% 5% 4% 3.8% 3.5% Annual School project-supportedhigh Inspectorates Inspectorates schools Sub-type indicator: Percentage of MoNE's EMIS project-supported 'osEMS MONE; School highcshowthd Percentage 23.1% 23.1% 22% 19% 16% 13% 11% 10% Annual School high schools with Inspectorates Inspectorates dropout rate above 7 percent Average graduation MoNE's EMIS; rate in project- School MoNE; School supported high schools Percentage 86.9% 86.9% 88% 89% 90% 91% 92% 93% Annual Inspectorates. Graduation in grade 12 Average Baccalaureate MoNE's passing rate in project- Percentage 49.6% 49.6% 50% 52% 54% 56% 58% 59% Annual documents MoNE supported high schools Average retention rate in the first year of MoNE's tertiary education in 82.5 dcmns Percentage 82.3% 82.3% 82.3% 83% 83.5% 84% 84.5% Annual documents; MoNE project-supported % Project-supported faculties Faculties Intermediate Results Indicators Component 1 - School-based and Systemic Interventions Percentage of eligible high schools Semi- MoNE's benefitting from the Percentage 0% 0% 25% 90% 90% 90% 90% 90% S - donsMoNE annual documents MN project grants Percentage of project- Grants supported high schools that implement the 100 Semi- prorac rat inpcompliane Percentage 0% 0% 50% 60% 75% 85% 100% aul requirements to be MoNE grants in compliance % annual '.,r.A s with grant performance O indicators POM Percentage of project- supported high schools Requirements for that implement the citizen engagement grants in compliance Semi applicable to the with requirements for annual Project to be citizen engagement specified in the applicable to the POM. Project (**) Average percentage of students of project- supported high school Semi MoNE's benefiting from Percentage 0% 0% 10% 20% 30% 40% 45% 50% annual documents MoNE remedial, tutoring or counselling activities POM Proec (**)_____ Grade 10 assessment developed and Semi- MoNE's administered, and Yes/No No No No No No Yes Yes Yes annual documents MoNE results used to inform Component 2 - University-Level Interventions and Bridge Programs Percentage of eligible Percentag Semi- MoNE's faculties benefitting from 0% 20% 75% 75% 75% 75% 75% 75% MoNE prjctganse annual documents project grants Number of at risk tertiary education students NSe-o benefiting from 0 0 5 10 60 60 60 60 MoNE remediation and thousands annual documents counseling programs (*) Number of project- Number supported high school (in Semi- MoNE's students who participate thousands 0 0 1 3 6 8 8 8 annual documents MoNE in bridge programs (*) Component 3 - Project Management, Monitoring and Evaluation Report on the analysis of existing demand-side Consultant to be programs for Semi- MoNE's hired to analyze the disadvantaged upper Yes/No No No Yes Yes Yes Yes Yes Yes annual documents existing demand- secondary education students published with recommendations Share of students of Two student project-supported high To be At the end surveys. The final Company to be school attending bridge Percentag deterEs hired to ay t programs who e pmine demonstrate motivation to d and YR 6 higher than the the surveys pursue tertiary education bsln Tertiary education students loan scheme Consultant to be revised and used to MoNE's hired to revise the inform policy Yes/No No No No Yes Yes Yes Yes Yes Annual documents students loan scheme Direct project MoNE's beneficiaries, of which Number femae () (cre ndictor (in114documents; female (*) (core indicator) (in 0 0 460 900 1,14 1,390 1,620 1,620 Annual MoNE's EMIS; MoNE thousands 0 School Inspectorates (*) Indicators to be monitored disaggregated by gender (**) Eligible high schools would be required to involve representatives of the civil society in the preparation of grant proposals, including parents of students, students, teachers, the principal, and representatives of local authorities. The requirements for citizen engagement applicable to the Project will be defined in the Project Operations Manual.