The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS 24-Jun-2019 _______________ Mr. Noor Ahmed Secretary Economic Affairs Division Ministry of Finance, Revenue, Economic Affairs, Statistics and Privatization Islamabad Pakistan Captain Muhammad Mehmood Secretary to the Government of Punjab for SED School Education Department Lahore, Punjab Government of Punjab Subject: Islamic Republic of Pakistan: Third Punjab Education Sector Project (PESP-III) (Loan No.8620-PK) Amendment to the Loan Agreement and Indicators/Results Framework Dear Sirs: We refer to the Loan Agreement (the “Loan Agreement”) between the Islamic Republic of Pakistan (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”), dated August 31, 2016, and the Project Agreement between the Bank and the Province of Punjab (the “Project Implementing Entity”) of the same date (the “Project Agreement”), for the above-referenced Project (the “Project”). We also refer to the letter from the Economic Affairs Division dated July 18, 2018 requesting the Bank for restructuring of the Project. We are pleased to inform you that, after due consideration, the Bank agrees with your request, and hereby proposes to amend the Loan Agreement as set forth below in this letter of amendment (the “Letter of Amendment”). Capitalized terms used but not defined in this Letter of Amendment have the meanings given to them in the Loan Agreement and the General Conditions. 1. The Disbursement Linked Indicator (DLI) No. 6, in the table in Schedule 4 of the Loan Agreement, which sets out the Disbursement Linked Indicators, Disbursement-Linked Results and Respective Prices, is amended to read as set forth in Attachment 1 to this Letter of Amendment. 2. “DSD”, wherever used in the Loan Agreement, is replaced by “QAED”. 3. Section I, Definitions in the Appendix to the Loan Agreement is amended to: 3.1. Delete the definition of “Directorate of Staff Development” or “DSD” in its entirety. 3.2. Include the following new definitions: 3.2.1. “Assistant Education Officer” or “AEO” mean individuals employed by SED to provide mentoring and training to government school teachers to improve their teaching performance.” 3.2.2. “Quaid-e-Azam Academy for Education Development” or “QAED” mean the Borrower’s academy, formerly known as the Directorate of Staff Development, launched in June 2017 as a sub-department of the School Education Department by the decision of Punjab’s Chief Minister to support teacher training and support in the classroom. 4. The indicators referred to in Section II.A of Schedule 2 to the Loan Agreement and Section II.A.1 of the Schedule to the Project Agreement, agreed with the Bank in the supplemental letter dated the same date as the Loan Agreement and the Project Agreement (the “Results Framework and Monitoring”) are amended as set forth in Attachment 2 to this Letter of Amendment. 5. Except as specifically amended by this Letter of Amendment, all other provisions of the Loan Agreement remain in full force and effect. 6. Upon receipt by the Bank of the original Letter of Amendment duly countersigned by the Borrower and the Project Implementing Entity, this Letter of Amendment shall become effective as of the date of the last signature. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ______________________ Patchamuthu Illangovan Country Director, Pakistan South Asia Region AGREED ISLAMIC REPUBLIC OF PAKISTAN By: __________________________________ Noor Ahmed Name: ________________________________ Secretary Title: _________________________________ 03-Jul-2019 Date: _________________________________ PROVINCE OF PUNJAB By: __________________________________ Captain Muhammad Mehmood Name: ________________________________ Secretary School Education Punjab Title: _________________________________ 27-Jun-2019 Date: _________________________________ Attachment 1 SCHEDULE 4 Disbursement-Linked Indicators. Disbursement-Linked Results and Respective Prices DISBURSEMENT LINKED- RESULTS DISBURSEMENT LINKED INDICATORS RESULTS TO BE RESULTS TO BE RESULTS TO BE RESULTS TO BE RESULTS TO BE ACHIEVED IN ACHIEVED IN ACHIEVED IN ACHIEVED IN ACHIEVED IN FY2016/17 FY2017/18 FY2018/19 FY2019/20 FY2020/21 (YEAR 1) (YEAR 2) (YEAR 3) (YEAR 4) (YEAR 5) DLI 6: Quality in the Innovative support package is Training of primary Training of primary Primary Classroom designed; and school teachers (as per school teachers (as per Strengthening field revamped CPD design) revamped CPD design) based CPD for AEOs task description is revised conducted in 06 conducted in 12 improved teacher and AEOs start conducting Districts; Districts; and performance classroom observations through android app. Innovative support QAED has incorporated package is developed, successful elements of validated and pilot innovative support initiated in 100 package into the regular schools; and CPD program. QAED has trained AEOs (or equivalent) on classroom observation and feedback provision. Price $8,590,000 Price $11,810,000 Price $11,810,000 Attachment 2 Revised Results Framework and Monitoring PAKISTAN: Third Punjab Education Sector Project Project Development Objectives(s) The project development objective is to support Punjab province to improve school participation, completion, and teaching-learning practices with a particular focus on low-performing districts. Project Development Objective Indicators by Objectives/ Outcomes RESU LT_FRAME_ TBL_PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 To improve school participation Participation Rate (Percentage) 75.80 77.00 79.00 Participation rate, boys (6-10 years) 85.40 86.00 87.00 (Percentage) Participation rate, girls (6-10 years) 77.80 79.00 80.00 (Percentage) Participation rate, boys (11-15 years) 75.40 77.00 79.00 (Percentage) Participation rate, girls (11-15 years) (Percentage) 64.60 66.00 68.00 Participation rate, poor-performing districts 68.50 70.00 73.00 (Percentage) To improve school completion Completion rate, grade 5 (Percentage) 67.00 68.00 70.00 Completion rate, grade 5, girls (Percentage) 66.00 67.00 69.00 Completion rate, Grade 5, boys (Percentage) 69.00 70.00 71.00 RESU LT_FRAME_ TBL_PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 To improve teaching-learning practices Quality score of primary teaching-learning practices (Number) 2.53 2.65 Level of School Readiness (Percentage) 0.00 6.00 PDO Table SPACE Intermediate Results Indicators by Components RESU LT_FRAME_ TBL_I O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Component 1: Improved access, quality and education system management Number of additional children aged 6-16 years to whom a voucher is provided to pay low- 0.00 0.00 10,000.00 130,000.00 270,000.00 420,000.00 cost private school tuition fees (Number) Number of additional boys aged 6-16 years to whom a voucher is provided to pay 0.00 0.00 5,000.00 65,000.00 135,000.00 210,000.00 low-cost private school tuition fees (Number) Number of additional girls aged 6-16 years to whom a voucher is provided to pay 0.00 0.00 5,000.00 65,000.00 135,000.00 210,000.00 low-cost private school tuition fees (Number) Number of additional schools covered by PPP initiatives supported by PEF under a 0.00 225.00 450.00 675.00 900.00 1,125.00 quality assurance system (Number) RESU LT_FRAME_ TBL_I O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Number of additional children enrolled in PPP initiatives supported by PEF under a 0.00 180,000.00 360,000.00 540,000.00 720,000.00 900,000.00 quality assurance system (Number) Number of additional girls enrolled in PPP initiatives supported by PEF under a 0.00 90,000.00 180,000.00 270,000.00 360,000.00 450,000.00 quality assurance system (Number) Number of additional boys enrolled in PPP initiatives supported by PEF under a 0.00 90,000.00 180,000.00 270,000.00 360,000.00 450,000.00 quality assurance system (Number) Number of children aged 3-5 years enrolled in an ECE 0.00 0.00 30,000.00 75,000.00 135,000.00 210,000.00 classroom that meets quality standards (Number) Number of girls aged 3-5 years enrolled in an ECE classroom that meets 0.00 0.00 15,000.00 37,500.00 67,500.00 105,000.00 quality standards (Number) Number of boys aged 3-5 years enrolled in an ECE 0.00 0.00 5,000.00 37,500.00 67,500.00 105,000.00 classroom that meets quality standards (Number) Percentage of new teachers recruited based on merit, for all vacant posts reallocated to 100.00 100.00 100.00 100.00 200.00 100.00 schools as per recruitment policy (Percentage) Number of districts 0.00 0.00 0.00 0.00 6.00 12.00 implementing the RESU LT_FRAME_ TBL_I O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 strengthened field-based CPD (Number) PEC instruments do not Grades 5 and 8 PEC (revised) use equated items and Grades 5 and 8 PEC Grades 5 and 8 PEC PEC reuslts from previous measure higher-order results are analyzed and widely Revised instruments (revised) administered to results are analyzed and year are analyzed and disseminated in actionable cognitive skills, and Instruments revision piloted all public school reported in actionable disseminated in actionable results are not form (Text) children. form. form disseminated in actionable form Number of School Council members reached through citizen engagement initiative(s) 80,000.00 80,000.00 96,000.00 128,000.00 212,000.00 212,000.00 (Number) Non-salary budget execution 64.00 64.00 64.00 66.00 66.00 69.00 rate (Percentage) Component 2: Capacity Building, Project Management, Monitoring, and Evaluation Number of EDOs-Education that analyze and act on revised district education report card 0.00 3.00 12.00 36.00 36.00 36.00 generated from integrated database (Number)