The World Bank Moldova Skills Data Capacity Building (P154573) REPORT NO.: RES32322 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MOLDOVA SKILLS DATA CAPACITY BUILDING APPROVED ON JUNE 23, 2016 TO MINISTRY OF FINANCE SOCIAL PROTECTION & LABOR EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Satu Kristiina J. Kahkonen Senior Global Practice Director: Michal J. Rutkowski Practice Manager/Manager: Cem Mete Task Team Leader: Yuliya Smolyar, Victoria Levin The World Bank Moldova Skills Data Capacity Building (P154573) ABBREVIATIONS AND ACRONYMS LMFS Labor Market Forecast Survey NEA National Employment Agency TOR Terms of Reference The World Bank Moldova Skills Data Capacity Building (P154573) BASIC DATA Product Information Project ID Financing Instrument P154573 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 23-Jun-2016 22-Sep-2018 Organizations Borrower Responsible Agency Ministry of Finance Ministry of Labor, Social Protection and Family Project Development Objective (PDO) Original PDO To strengthen the Government of Moldova s capacity for evidence-based policymaking in the area of skills and employment through supporting enhanced collection and analysis of data on workforce skills and labor market needs OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A2984 23-Jun-2016 22-Sep-2016 27-Oct-2016 22-Sep-2018 .30 .05 .26 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Moldova Skills Data Capacity Building (P154573) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Overall Status of the Grant 1. Project Progress: The project is on track to achieving its objective of strengthening the Government of Moldova’s capacity for evidence-based policymaking on skills and employment through supporting enhanced collection and analysis of data on workforce skills and labor market needs. The newly-created merged Ministry of Health and Social Protection remains committed to this objective and advances project activities despite recent implementation slowdown caused by internal organizational changes. (a) Under Component 1, the Grant produced recommendations for the National Employment Agency (NEA) to improve the Labor Market Forecast Survey (LMFS), including a sampling strategy, instrument design, data collection and entry, analysis and reporting, and dissemination. The Grant also developed the TOR for adjusting LMFS software. Based on the TOR, the Grant employed a local software development company that adapted the LMFS software based on the above recommendations. (b) Under Component 2 that supports survey of working-age population on barriers to employment, the consultants designed the skills module for the household survey. However, there was a considerable delay in the procurement of the firm to implement the survey because of research complexity and the need to fit into available budget. Eventually, the Ministry hired a survey firm that is expected to complete the survey by the end of June 2018. (c) Under Component 3, the Grant will engage an international consultant to analyze the results of the above surveys in terms of labor skills mismatch, to develop a strategy and to identify the resources required to address the mismatch. In addition, the Grant is commissioning STATA training for the staff of the Ministry of Health and Social Protection and the National Employment Agency. 2. Rationale for Restructuring: This restructuring is to request an extension of the closing date. While the Grant is on track, its implementation has been delayed because of the merger of the Ministry of Social Protection and Ministry of Health. Also, the second component experienced delays in engaging a local firm to carry out the survey of working-age population on barriers to employment. This shifted the analytical and policy development work envisaged under Component 3. The Grant requires an extension to make use of its research and to develop the roadmap for improved collection, analysis and dissemination of labor demand and supply data as well as the policy action plan to address the skills mismatch. The Government requested an extension until the end of 2018 calendar year. The Bank team suggests an extension till February 28, 2019 to provide sufficient time for implementation of the remaining activities and to mitigate the risk of implementation slowdown after the parliamentary elections in the fall of 2018. The team expects the project to fully achieve its objectives with the approval of this extension of closing date. The grant does not have any overdue audits and complies with financial management requirements. The World Bank Moldova Skills Data Capacity Building (P154573) II. DESCRIPTION OF PROPOSED CHANGES B. Proposed Changes to the Grant The proposed extension does not imply changes to the Grant’s activities, components and outcomes. The time extension is required to complete the remaining activities related to the development of the policy action plan to address the skills mismatch and the roadmap to improved collection, analysis and dissemination of labor supply and demand data. The Government of Moldova requested a time extension till the end of the calendar year. The Bank team suggest an extension till February 28, 2019 to allow sufficient time for pending activities and to mitigate the risk of implementation slowdown after the parliamentary elections in the fall of 2018. III. SUMMARY OF CHANGES Changed Not Changed Change in Loan Closing Date(s) ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ The World Bank Moldova Skills Data Capacity Building (P154573) Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A2984 Effective 22-Sep-2018 28-Feb-2019 28-Jun-2019