Document of The World Bank FOR OFFICIAL USE ONLY Report No: 76090 v1 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE THIRD EMERGENCY EDUCATION PROJECT (CREDIT NO. 41280) APPROVED NOVEMBER 5, 2005 TO THE REPUBLIC OF IRAQ February 22, 2013 Human Development Sector Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS DOE Directorates of Education ESCRP Emergency School Construction and Rehabilitation Project MOE Ministry of Education PDO Project Development Objective PMT Project Management Team PP Procurement Plan TEEP Third Emergency Education Project Regional Vice President: Inger Andersen Country Director: Ferid Belhaj Sector Manager / Director: Mourad Ezzine/ Steen Lau Jorgensen Task Team Leader: Lianqin Wang 2 IRAQ THIRD EMERGENCY EDUCATION PROJECT CONTENTS Page A. SUMMARY............................................................................................................................ 4 B. PROJECT STATUS ............................................................................................................... 4 C. PROPOSED CHANGES ........................................................................................................ 5 ANNEX 1: RESULTS FRAMEWORK AND MONITORING ..................................................... 8 ANNEX 2: PROPOSED IMPLEMENTATION PLAN………………………..…………….…..11 3 IRAQ: THIRD EMERGENCY EDUCATION PROJECT Credit No. 41280, P099295 RESTRUCTURING PAPER A. SUMMARY OF CHANGES 1. This restructuring paper seeks the approval of the Regional Vice President to a Level II Restructuring to introduce changes to the Iraq Third Emergency Education Project (Credit No. 41280; Project ID P096234) and any accompanying amendments to the project’s Financing Agreement. These proposed changes include: (i) Extend the Project Closing Date from June 30, 2013 to June 30, 2014. (ii) Introduce a new activity: “construction of 50 six-classroom block extensions (including toilets)� to Component 1, which falls within the current component description. (iii) Revise the Results Framework to reflect the closing date extension and the inclusion of the new activity – add a new indicator “six-class room blocks (with toilet extensions)�. (iv) Reallocate funds from the project’s “Unallocated� expenditure category to the “Civil Works� expenditure category. 2. The proposed changes are needed to allow enough time: (a) to complete the unfinished schools; (b) to complete the activities related to capacity building in teacher training and curriculum development; and (c) to disburse the remaining uncommitted amount of SDR 16.2 million (US$25 million equivalent) which will be used to construct six-classroom block extensions (including toilets) in approximately 50 schools. These remaining funds exist because: (i) the SDR exchange rate has fluctuated in favor of the USD1; (ii) the amount of funding originally planned for school construction supervision consultants is no longer required since supervision moved to the Directorates of Education (DOEs) in 2011; and (iii) there is an unallocated amount of SDR3 million (US$4.6 million equivalent). B. PROJECT STATUS 3. The Third Emergency Education Project (TEEP) was approved on November 5, 2005, and became effective in October 2007. The original Project Development Objective (PDO) was “to alleviate overcrowding in primary and secondary schools through school construction and provision of furniture and equipment�. The Project was also expected to lay the groundwork for broader school reform and system reconstruction. The project faced a two year effectiveness delay due to a longer than anticipated approval process in Iraq, and subsequently had a slow start-up, including land allocation issues regarding the school building sites, and the Project Management Team’s (PMT) weak technical, procurement and decision making capacity which caused delays in awarding of contracts. The Project was first restructured in 1 Originally, in 2005, SDR 69,100,000 was equivalent to USD 100,000,000. As of December 28, 2012, SDR 69,100,000 is equivalent to USD 106,516,268. 4 January 2009 to extend the original closing date from January 31, 2009 to June 30, 2009 and subsequently to August 31, 2009 to allow enough time to complete the preparation for a Level I project restructuring. The project was restructured in July 2009 to: (i) extend the Project Closing Date by four years from August 31, 2009 to June 30, 2013; (ii) include activities addressing issues related to quality of education; (iii) revise the target of building, furnishing and equipping 82 new schools to 48 (mainly due to increased unit price); (iv) revise the PDO and key performance indicators accordingly; and (v) reallocate funds between components and disbursement categories. The PDO, as revised in the July 2009 restructuring, is “to assist the MOE in reducing school overcrowding and strengthening its capacity to improve quality of teaching and curricula�. A third project restructuring was approved in August 2012 to remove two small activities (SDR 853,775, US$1.6 million equivalent) from Part 1(b): school mapping and investment planning, and the production of a school design manual. The removal of these two activities has enabled the Ministry of Education (MOE) to focus on the major activities—civil works and capacity building for teacher training and curriculum development. The restructuring also included a revision of the Results Framework to ensure relevance and measurability, including the addition of two education sector core indicators. The PDO remains valid and relevant for this restructuring. To date, total commitments amount to US$66.4 million, of which US$24.3 million has been disbursed. 4. Implementation has improved considerably since late 2011 due to the efforts of the Minister of Education and the PMT, combined with close monitoring and implementation support from the World Bank. The Implementation Progress rating has remained “Moderately Satisfactory� since March 2012, after being “Moderately Unsatisfactory� for several years. 5. There are no outstanding project audit reports. There have been no major environmental or social safeguards issues associated with TEEP implementation to date and overall safeguards compliance is rated as “Satisfactory� (as of November 2012). 6. Part 1: Educational Infrastructure. All 46 contracts (for the 48 schools) have been awarded. Of the 48 new schools, 8 have been completed and a further 8 schools will be completed by June 2013. The soil tests and foundation redesigns for 33 schools were completed in July 2012 (with one exception) and construction work for these 33 schools has reached an average physical progress rate of over 15 percent. Foundation redesign for the remaining school will be completed by February 2013. The MOE decided to supply schools that are ready for operation with furniture and equipment from its existing stock until the new furniture and equipment financed by the Project are delivered (these items are currently being procured for delivery by May 2013). The prototype school design (4 types of modular buildings and external works) was completed and adopted for the construction work. Training of MOE and Directorates of Education (DOE) staff in contract management, quality control and fiduciary functions has been on-going since September 2012. 7. Part 2: Institutional Strengthening for Education Quality Improvement. This component provides technical assistance and training support to the MOE to build capacity to develop new curricula for general education and to conduct teacher training. Albeit with delays, the technical assistance contract to build MOE’s capacity to develop new curricula for general education was signed in October 2012 (planned date was June 2012), and the technical assistance contract to develop training materials and train the master trainers to provide training on new teaching methods to approximately 6,000 new teachers was signed in November 2012. Both activities were launched and will be implemented within 8 months and 10 months, respectively. Though this schedule extends beyond the current project Closing Date, the Bank’s clearance was made based on the following agreement: if the project Closing Date is not extended, the MOE will bear the costs incurred after the current Closing Date. 5 C. PROPOSED CHANGES  Results/indicators Changes to the Results Framework are triggered by: (i) revised targets in light of the Closing Date extension; and (ii) the addition of one intermediate outcome indicator and adjustment of the target for one PDO indicator to measure the new construction activity - the six-classroom block extensions (with toilets). Refer to Annex 1 for the revised Results Framework.  Components For Component 1: �Education Infrastructure�, a new construction activity is to be added, as proposed by the MOE, to use the uncommitted funds (SDR 16.2 million, US$ 25 million equivalent) to build 50 six-classroom block extensions (with toilets) to reduce extreme overcrowding in the schools. This proposal is considered realistic for the following reasons: (i) the time required for procurement and implementation of the six- classroom block extensions (with toilets) is sufficient within the proposed new timeline for the project; (ii) the PMT has gained considerable experience in managing school construction; and (iii) the standard modular design of the six-classroom block extensions (with toilets) has already been used in the Emergency School Construction and Rehabilitation Project (ESCRP) which is managed by the same PMT. Hence, it is very likely that the PMT can complete the bidding and construction of these additional six- classroom block extensions (with toilets) by June 30, 2014.  Financing o Reallocations The “Unallocated� amount of SDR 3,000,000 will be reallocated to the “Civil Works� category of expenditure as follows. Category of Allocation % of Expenditure Current Revised Financing (1) Goods 8,950,000 8,950,000 100% (2) Civil Works 50,340,000 53,340,000 100% (3) Consulting 5,000,000 5,000,000 100% (4) Training 970,000 970,000 100% (5) Operating Cost 840,000 840,000 100% (6) Unallocated 3,000,000 0.0 Total 69,100,000 69,100,000  Financial management 8. The Project will continue to use the same financial management and disbursement arrangements, including staffing, accounting and reporting, budgeting, internal controls, and auditing. There are no outstanding project audit reports. All required project annual audit reports have been submitted to the Bank. The most recent report received by the Bank covers the period ending December 31, 2011 and includes an unqualified "clean" opinion. The report was reviewed by the Bank and was found satisfactory.  Procurement 6 9. The revised Procurement Plan (PP) was furnished to the Bank to reflect the proposed changes in project components/activities.  Closing Date a. The proposed one year extension to June 30, 2014 would enable the construction of the remaining schools for the beneficiary communities. Without the requested extension, after June 30, 2013: (i) 34 schools would remain partially completed; (ii) there would be approximately 25,000 students per year without the benefit of an improved learning environment; (iii) the MOE would not have the full benefit of the capacity building activities for teacher training and curriculum development; and (iv) funds would not be fully disbursed. b. All OP/BP 13.30 (Closing Dates) requirements are met: (a) the project objective continues to be achievable, as indicated above in section B; (b) the performance of the borrower and the project implementing agency is satisfactory, as indicated in section B; and (c) the borrower has prepared a specific Implementation Plan (please see Annex 2 of the Restructuring Paper) acceptable to the Bank to complete the project. Reference RVP’s “in principle� approval of December 21, 2012, use of project savings was approved. 7 ANNEX 1: Results Framework and Monitoring IRAQ: THIRD EMERGENCY EDUCATION PROJECT Project Development Objective (PDO): To assist the MOE in reducing school overcrowding and strengthening its capacity to improve quality of teaching and curricula. Revised Project Development Objective: No change. D=Dropped Cumulative Target Values (Calendar Year) C=Continue Data Source/ Responsibility Core Unit of Baseline PDO Level Results Indicators Frequency for Data N= New Measure (2009) 2010 2011 2012 2013 2014 Methodology Collection R=Revised Additional number of seats available, resulting Number of 1. R 0 0 0 3,600 26,160 44,640 Annual MOE PMT from newly-built schools, seats to reduce overcrowding Number of teacher training (a) master trainers and (b) trainers Number of (a) 0 (a) 0 (a) 0 (a) 0 (a) 20 (a) 20 2. C Annual Consultancy PMT successfully trained (able trainers (b) 0 (b) 0 (b) 0 (b) 0 (b) 120 (b) 120 to provide satisfactory training for teachers) Number of (a) curriculum development leaders and (b) curriculum developers Number of (a) 20 (a) 20 trained according to (a) 0 3. C curricula 0 0 0 (b) 70 Annual Consultancy PMT standards set by the MOE (b) 0 (b) 70 developers (able to produce curriculum development elements) D=Dropped Cumulative Target Values (Calendar Year) C=Continue Data Source/ Responsibility Core Unit of Baseline INTERMEDIATE RESULTS Frequency for Data N= New Measure (2009) Methodology 2010 2011 2012 2013 2014 Collection R=Revised INTERMEDIATE RESULTS Intermediate Result Indicators (Component One): Educational Infrastructure Development of four 4. prototype designs for 4 C - -      Annual PMT PMT school buildings MOE and DOE engineers who have completed training in procurement Number & 5. 6 R - - - - 75 75 Annual DOEs PMT and contract percentage management, of which % females Number of schools built Number of 6. 7 C 0 0 0 6 39 48 Annual PMT PMT schools Number of six-classroom Number of 7. block extensions 8 N 0 0 0 0 0 50 Annual PMT PMT blocks (including toilets) built Number of additional classrooms built or Number of 8. rehabilitated at the 9 C 0 0 0 54 288 390 Annual PMT PMT classrooms primary level resulting from project intervention Number of additional classrooms built or 9. 1 Number of rehabilitated at the C 0 0 0 36 366 426 Annual PMT PMT 0 classrooms secondary level resulting from project intervention Number of beneficiaries, of which % females: 10. 1 Number & N.A. Annual N N.A. N.A. N.A. MOE PMT Enrollment in project 1 Percentage schools. Intermediate Result Indicators (Component Two): Institutional Strengthening for Education Quality Improvement Number of teachers 11. 1 Number & trained, of which % C 0 0 0 0 0 6,000 Annual MOE/DOEs PMT 2 percentage females Teacher training materials Teacher 12. 1 developed C training - - - - -  Annual PMT PMT 3 materials Curriculum Evaluation 13. 1 Manual and Curriculum C Manuals - - - - -  Annual PMT PMT 4 Authoring Manual 9 developed Number of curricula developers completing the customized training 14. 1 Number N N.A. N.A. N.A. N.A. Annual MOE PMT program, of which % 5 &Percentage females. Intermediate Result Indicators (Component Three): Project management At least two progress 15. 1 Progress C -      Annual PMT PMT reports produced per year 6 reports Annual updating of Implementati 16. 1 implementation schedules C on schedule -      Annual PMT PMT 7 updates 10 ANNEX 2: PROPOSED IMPLEMENTATION PLAN # Contract ID: Starting Date Contractual Revised Expected /Actual Completion Completion Completion Date Date Date 1. TEEP-W1-I (1 Sch.) July 10,2011 October 7,2012 October 7,2012 March 1,2013 2. TEEP-W2-I (2 Sch.) September December 6,2011 March 11,2012 June 30,2013 7,2010 3. TEEP-W3-I (2 Sch.) October 13,2010 January 11,2012 September 8,2012 March 1,2013 4. TEEP-W4-I (1 Sch.) November November 9,2011 September 3,2012 September 17,2012 10,2010 5. TEEP-W5-I (1 Sch.) October 24,2010 January 22,2012 February 11,2012 March 1,2012 6. TEEP-W6-I (1 Sch.) Cancelled 7. TEEP-W7-I (1 Sch.) October 17,2010 January 15,2012 March 26,2012 July 30,2012 8. TEEP-W8-I (1 Sch.) October 18,2010 December 17,2011 February 8,2012 January 15,2013 9. TEEP-W9-I (1 Sch.) October 18,2010 January 16,2012 January 16,2012 July 18,2012 10. TEEP-W10-I (1 Sch.) April 1,2012 June 30,2013 June 30,2013 June 30,2013 11. TEEP-W11-I (1 Sch.) April 22,2012 July 21,2013 July 21,2013 July 21,2013 12. TEEP-W12-I (1 Sch.) September December 18,2011 December 18,2011 February 10,2012 19,2010 13. TEEP-W13-I (1 Sch.) September December 18,2011 December 18,2011 February 8,2012 19,2010 14. TEEP-W14-I (1 Sch.) November February 12,2013 February 12,2013 March 1,2013 15,2011 15. TEEP-W15-I (1 Sch.) November February 19,2013 July 7,2013 July 7,2013 22,2011 16. TEEP-W16-I (1 Sch.) November February 19,2013 July 4,2013 July 4,2013 22,2011 17. TEEP-W17-I (1 Sch.) November February 18,2013 September September 30,2013 21,2011 30,2013 18. TEEP-W18-I (1 Sch.) February 1,2012 May 1,2013 September 3,2013 September 3,2013 19. TEEP-W19-I (1 Sch.) March 19,2012 May 18,2013 December 30,2013 December 30,2013 20. TEEP-W20-I (1 Sch.) February 1,2012 May 1,2013 September 8,2013 September 8,2013 21. TEEP-W21-I (1 Sch.) Suspended 22. TEEP-W22-I (1 Sch.) November February 11,2013 January 29,2014 January 29,2014 14,2011 23. TEEP-W23-I (1 Sch.) October 10,2011 January 7,2013 March 25,2013 March 25,2013 24. TEEP-W24-I (1 Sch.) November February 18,2013 January 29,2014 January 29,2014 21,2011 25. TEEP-W25-I (1 Sch.) November February 18,2013 December 17,2013 December 17,2013 21,2011 26. TEEP-W26-I (1 Sch.) November February 21,2013 May 30,2013 May 30,2013 24,2011 27. TEEP-W27-I (1 Sch.) December March 20,2013 July 19,2013 July 19,2013 21,2011 28. TEEP-W28-I (1 Sch.) November February 24,2013 January 29,2014 January 29,2014 27,2011 29. TEEP-W29-I (1 Sch.) March 18,2012 August 16,2013 October 6,2013 October 6,2013 30. TEEP-W30-I (1 Sch.) March 4,2012 August 2,2013 October 1,2013 October 1,2013 31. TEEP-W31-I (1 Sch.) March 4,2012 August 2,2013 October 23,2013 October 23,2013 32. TEEP-W32-I (1 Sch.) March 18,2012 August 16,2013 September September 28,2013 28,2013 33. TEEP-W33-I (1 Sch.) March 5,2012 August 3,2013 August 19,2013 August 19,2013 34. TEEP-W34-I (1 Sch.) March 22,2012 August 20,2013 December 19,2013 December 19,2013 35. TEEP-W35-I (1 Sch.) March 22,2012 August 20,2013 December 19,2013 December 19,2013 36. TEEP-W36-I (1 Sch.) February July 27,2013 September September 29,2013 27,2012 29,2013 37. TEEP-W37-I (1 Sch.) March 10,2012 August 8,2013 September September 18,2013 18,2013 38. TEEP-W38-I (1 Sch.) March 15,2012 August 13,2013 January 29,2014 January 29,2014 39. TEEP-W39-I (1 Sch.) March 22,2012 August 20,2013 January 29,2014 January 29,2014 40. TEEP-W40-I (1 Sch.) May 2,2012 September 30,2013 January 29,2014 January 29,2014 41. TEEP-W41-I (1 Sch.) March 11,2012 August 10,2013 January 29,2014 January 29,2014 42. TEEP-W42-I (1 Sch.) March 11,2012 August 9,2013 January 29,2014 January 29,2014 43. TEEP-W43-I (1 Sch.) March 7,2012 August 5,2013 October 8,2013 October 8,2013 44. TEEP-W44-I (1 Sch.) April 4,2012 September 2,2013 December 19,013 December 19,013 45. TEEP-W22-I (1 Sch.) November February 11,2013 January 29,2014 January 29,2014 14,2011 46. TEEP-W45-I (1 Sch.) April 5,2012 September 3,2013 December 8,2013 December 8,2013 47. TEEP-W46-I (1 Sch.) March 7,2012 August 5,2013 October 23,2013 October 23,2013 48. TEEP-W47-I (1 Sch.) March 26,2012 June 24,2013 July 24,2013 July 24,2013 12 # Contract ID: Starting Date Contractual Revised Expected Completion Completion /Actual Date Date Completion Date 1. TEEP-W50-I(Bas 3 May 5,2013 January 30,2014 January 30,2014 January 30,2014 Six CR Unit+ Toilet Unit) 2. TEEP-W51-I(Mis 3 May 5,2013 January 30,2014 January 30,2014 January 30,2014 Six CR Unit+ Toilet Unit) 3. TEEP-W52-I(Mut 3 May 5,2013 January 30,2014 January 30,2014 January 30,2014 Six CR Unit+ Toilet Unit) 4. TEEP-W53-I(Thi 3 May 5,2013 January 30,2014 January 30,2014 January 30,2014 Six CR Unit+ Toilet Unit) 5. TEEP-W54-I(Bab 3 June 2,2013 February 27,2014 February February Six CR Unit+ Toilet 27,2014 27,2014 Unit) 6. TEEP-W55-I(Dew 3 June 2,2013 February 27,2014 February February Six CR Unit+ Toilet 27,2014 27,2014 Unit) 7. TEEP-W56-I(Kar 3 June 2,2013 February 27,2014 February February Six CR Unit+ Toilet 27,2014 27,2014 Unit) 8. TEEP-W57-I(Naj 3 June 2,2013 February 27,2014 February February Six CR Unit+ Toilet 27,2014 27,2014 Unit) 9. TEEP-W58-I(Was3 June 2,2013 February 27,2014 February February Six CR Unit+ Toilet 27,2014 27,2014 Unit) 10. TEEP-W59-I(Bag k1 June 23,2013 March 20,2014 March 20,2014 March 20,2014 2 Six CR Unit+ Toilet Unit) 11. TEEP-W60-I(Bag k2 June 23,2013 March 20,2014 March 20,2014 March 20,2014 2 Six CR Unit+ Toilet Unit) 12. TEEP-W61-I(Bag k3 June 23,2013 March 20,2014 March 20,2014 March 20,2014 2 Six CR Unit+ Toilet Unit) 13. TEEP-W62-I(Bag R1 June 23,2013 March 20,2014 March 20,2014 March 20,2014 2 Six CR Unit+ Toilet Unit) 14. TEEP-W63-I(Bag R2 June 23,2013 March 20,2014 March 20,2014 March 20,2014 2 Six CR Unit+ Toilet Unit) 15. TEEP-W64-I(Bag R3 June 23,2013 March 20,2014 March 20,2014 March 20,2014 2 Six CR Unit+ Toilet Unit) 16. TEEP-W65-I(Anb 3 June 23,2013 March 20,2014 March 20,2014 March 20,2014 Six CR Unit+ Toilet Unit) 17. TEEP-W66-I(Diy 3 June 23,2013 March 20,2014 March 20,2014 March 20,2014 Six CR Unit+ Toilet Unit) 18. TEEP-W67-I(Sal 3 July 21,2013 April 17,2014 April 17,2014 April 17,2014 Six CR Unit+ Toilet 13 Unit) 19. TEEP-W68-I(Ker 3 July 21,2013 April 17,2014 April 17,2014 April 17,2014 Six CR Unit+ Toilet Unit) 20. TEEP-W69-I(Nin 3 July 21,2013 April 17,2014 April 17,2014 April 17,2014 Six CR Unit+ Toilet Unit) 14