THE WORLD BANK IBRD* IDA I WORLDBANKGROUbFFICIAL )ip, t3 DOCUMENTS Senior Secretary Mohammad Mejbahuddin Economic Relations Division (ERD) Ministry of Finance Block 8, Room 3 Sher-e-Bangla Nagar Dhaka Dear Senior Secretary Mejbahuddin: Ref: Skills and Training Enhancement Project (Credit No. 4764-BD and Grant No. TF015113) Amendment to the Financing Agreement and the Grant Agreement We refer to: (a) the Financing Agreement between the People's Republic of Bangladesh (the "Recipient") and the International Development Association (the "Association") dated July 8, 2010 (the "Financing Agreement"), as amended, for the Skills and Training Enhancement Project (the "Project"); and (b) the Grant Agreement between the People's Republic of Bangladesh (the "Recipient") and the International Development Association (the "World Bank") dated December 8, 2013 (the "Grant Agreement"), as amended, for the Project. We also refer to the discussions during the negotiations of the Additional Financing for the Project regarding restructuring of the above Financing Agreement and Grant Agreement. We hereby propose to amend the Financing Agreement and the Grant Agreement as follows: 1. The attachment to the Supplemental Letter No. 2 dated July 8, 2010 regarding performance monitoring indicators agreed under Section II.A.1 of Schedule 2 to the Financing Agreement is amended to read as set forth in Annex 1 to this letter of amendment. 2. The definitions of "Operating Costs" and "Training" under Section IV.A.2 of Schedule 2 to the Financing Agreement are amended to read as follows: "(a) "Operating Costs" means the reasonable costs required for the day-to-day coordination, administration and supervision of Project activities, including the salaries of incremental staff, leasing and/or routine repair and maintenance of vehicles, equipment, facilities and office premises, fuel, office supplies, utilities, consumables, communication expenses, translation, printing, photocopying and postal expenses, bank charges, honoraria, advertising expenses, insurance, costs of clearing, forwarding, inspection, survey and transportation of goods, Project- related meeting expenses, Project-related travel, provided that such Operating Costs are paid to the eligible recipient through banking system (except for petty cash expenses following Recipient's existing policy); but excluding salaries, and allowances of officials of the Recipient's civil service; and WORLD BANK GROUP -2- (b) "Training" means the reasonable costs required for the participation of personnel involved in training activities, workshops and study tours under the Project which have been approved by the Association in writing on annual basis, including: (a) travel, hotel, honoraria and subsistence costs for training, workshop and study tour participants provided that such allowances are paid directly to the eligible recipient using the banking system (except for petty cash expenses following Recipient's existing policy); and (b) costs associated with rental of training and workshop facilities, preparation and reproduction of training and workshop materials, costs of academic degree studies, and other costs directly related to training course, workshop or study tour preparation and implementation, but excluding salaries of consultants and sitting allowances." 3. The Closing Date of the Financing Agreement and the Grant Agreement is extended to June 30, 2017." Except as specifically amended by this letter of amendment, all other provisions of the Financing Agreement and the Grant Agreement remain unchanged and in full force and effect. The Association will disclose this letter of amendment and related information in accordance with the Association's Policy on Access to Information. By entering into this letter of amendment, the Recipient consents to such disclosure. Please confirm your agreement to the foregoing on behalf of the Recipient by countersigning and dating the corresponding form of confirmation set forth below, and returning one fully signed original of this letter to us. Upon receipt by the Association of the original of this letter of amendment countersigned by you, this letter of amendment will become effective as of the date of the countersignature. Sincerely, INTERNAITONAL DEVELOPMENT ASSOCIATION Representative AGREED: PEOPLE'S REPUBLIC OF BANGLADESH By: 4 6Oned epre entative Name: V-j. 5: AJ~AW, Title: A Date: 53_u_ __ _ If k) THE WORLD BANK IBRD IDA I WORLDBMNKGROUP ANNEX Performance Monitoring Indicators Result Framework by Target Year Achiev Target Values (in Academic Data Collection and Reporting Project Key ement Years) Performance Indicators Origi as of 2016 2017 2018 Frequen Resp Note nal 2015 in cy and onsib 2 Basel the Data ility ine origina Baseline Collecti in I for AF as on 2009 project of2015 1 Pass rates of students 50% 64% Overall: Overall: Overall: Overall: Bi- STEP *2 from supported 60% 62% 64% 65% annual PIU Baseline for 2015 is Diploma programs (%) Females: Females: Females: Females: calculated using the e*) 66% 66% 67% 68% Progres average pass rate Disadvan Disadva Disadvan Disadvant s report (55%) of non-IDG taged: ntaged: taged: aged: stipend polytechnics in 55% 57% 59% 60% 2014. 2 Employment rates for 30% 42 40% 42% 44% 46% Bi- STEP *2 trainees of short-term annual PIU Baseline as of 2015 is courses within 6 months calculated assuming of course completion Progres employment rate of s report 34% (achievement of 2014) for 26 newly added providers. 3 Number of - 116,247 116,247 135,000 155,000 175,000 Bi- STEP According to the disadvantaged students annual PIU stipend expansion supported through estimate. G WORLD BANK GROUP -2- Achiev Target Values (in Academic Data Collection and Reporting Project Key ement Years) Performance Indicators Origi as of 2016 2017 2018 Frequen Resp Note nal 2015 in cy and onsib 2 Basel the Data ility ine origina Baseline Collecti in I for AF as on 2009 project of2015 stipends selected based Stipend on household progres information based s report selection criteria -3- Achiev Target Values (in Academic Data Collection and Reporting ement Years) as of 2016 2017 2018) Freque Respon Comments 2015 in Baseline ncy and sibility E Origin the for AF Reports 0 al origina as of Baselin I YR4 Intermediate Indicators e project (2015) 1. Total project beneficiaries X 240,00 240,000 300,00 360,000 420,000 Bi- STEP Including students (and % of which 0 (14%) 0 (16%) (17%) annual PIU beneficiary are female) (14%) (15%) Progres students and s report trainees in polytechnics, short-term trainings, SSC (voc), and RPL. Sub-Component 1.1 2 % of utilization of - - 0 30 60 95 Bi- STEP Institutional Development annual PIU Grants under the Additional Progres Financing s report 3. Enrollment as a proportion 55% 98% 80% 85% 90% 95% Bi- STEP *2 of sanctioned intake capacity annual PIU Recalculated in supported courses (%) Progres assuming 55% for s report the newly included 25 polytechnics. 4 Share of vacancies in - 2% 10% 8% 5% 5% Bi- STEP *2 sanctioned faculty posts in annual PIU Recalculated supported polytechnics Progres assuming vacancy (regular and contractual) s report rate of 20% for new polys. -4- Achiev Target Values (in Academic Data Collection and Reporting ement Years) as of 2016 2017 2018) Freque Respon Comments 2015 in Baseline ncy and sibility 8 Origin the for AF Reports U al origina as of Baselin I YR4 Intermediate Indicators e project (2015) 5 Transition rates of students 80% 98% 88% 90% 92% 95% Bi- STEP *2 from second to third annual PIU Recalculated semester in supported Progres assuming courses s report transition rate of 80% for new polys. 6. Number of faculty in - 1,500 1,500 3,000 4,500 6,000 Bi- STEP Polytechnic and supported courses trained annual PIU short-course teachers to be Progres trained in s report pedagogical and subject-based teacher training courses Sub-Component 1.2 7 Completion rates for 50% 98% 80% 85% 90% 95% Bi- STEP *2 trainees in supported short- annual PIU Recalculated term training courses assuming 50% Progres completion rate s report for 26 newly added short- course providers -5- Achiev Target Values (in Academic Data Collection and Reporting ement Years) as of 2016 2017 2018) Freque Respon Comments 2015 in Baseline ncy and sibility Origin the for AF Reports C al origina as of Baselin I YR4 Intermediate Indicators e project (2015) 8 Share of girl trainees in 5% 30% 20% 23% 26% 30% Bi- STEP *2 supported courses % annual PIU Baseline in 2015 recalculated Progres assuming 5% s report female rate for 26 newly added short-course ______ ________ _ ___ ___ ______providers Sub-Component 2.1 9 Number of Industry Skills 5 5 6 7 7 Bi- STEP Original project Councils functioning annual PIU supported 5 ISCs. supported by the project AF will focus on Progres additional 2. ________ ~~~~s report ____ ________ Sub-Component 2.2 10 Evaluation of the SSC (Voc) - Operat Operati Pilot Evaluation - Bi- STEP Pilot ional onal scaled- completed annual PIU pilot pilot up initiate initiated Progres d s report 11 Number of individuals - 4,292 4,292 8,000 20,000 30,000 Bi- STEP assessed for RPL in annual PIU supported centers. -6- Achiev Target Values (in Academic Data Collection and Reporting ement Years) as of 2016 2017 2018) Freque Respon Comments 2015 in Baseline ncy and sibility E Origin the for AF Reports U al origina as of Baselin I YR4 Intermediate Indicators e project (2015) Progres s report Component 3 12 Number of staff trained in 22 22 60 100 150 Bi- STEP Staff and Leadership and annual PIU managers trained Management areas. Progres in overseas s report training programs Sub-Component 4.1. 13 Number of awareness 10 10 18 24 30 Bi- STEP raising campaigns annual PIU Progres s report 14 Satisfaction Survey - - - Survey Survey Project STEP (Student, Faculty, and initiate completed life PIU Employers') for IDG d recipient institutions Satisfac tion surveys Component 4 Project STEP 15 Assessment studies in TVET - 1st 1t 1t 2nd Tracer 2nd Life PIU Tracer Tracer Tracer study on Tracer study study on study short- study on Studies on short- on .polytechn _ _ _____. I..... ....._____ -7- Achiev Target Values (in Academic Data Collection and Reporting ement Years) as of 2016 2017 2018) Freque Respon Comments 2015 in Baseline ncy and sibility E Origin the for AF Reports U al origina as of Baselin I YR4 Intermediate Indicators e project (2015) short- course polytec course ic course complet hnic completed complete comple ed comple d ted ted; RPL Impact evaluatio n complete d *1: Disadvantaged students refer to stipend beneficiary students at polytechnics. *2: Baselines values for 2015 are calculated by including originally-supported institutions and the average of institutions that could be potentially supported. Institutions will be selection upon competitive selection and be monitored during the AF period.