The World Bank Kosovo Education System Improvement Project () REPORT NO.: RES38785 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF KOSOVO EDUCATION SYSTEM IMPROVEMENT PROJECT APPROVED ON SEPTEMBER 10, 2015 TO REPUBLIC OF KOSOVO EDUCATION EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Linda Van Gelder Regional Director: Fadia M. Saadah Practice Manager/Manager: Harry Anthony Patrinos Task Team Leader: Angela Demas The World Bank Kosovo Education System Improvement Project () I. BASIC DATA Product Information Project ID Financing Instrument Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 10-Sep-2015 31-Dec-2019 Organizations Borrower Responsible Agency Republic of Kosovo Ministry of Education, Science and Technology Project Development Objective (PDO) Original PDO The Project Development Objective is to strengthen selected systems that contribute to quality, accountability, and efficiency improvements in education in the Republic of Kosovo. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57260 10-Sep-2015 20-Nov-2015 13-May-2016 31-Dec-2019 7.52 1.94 5.48 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Kosovo Education System Improvement Project () 1. The Kosovo Education System Improvement Project (KESIP) was approved on September 10, 2015 and became effective on May 13, 2016. The project initially showed little progress and, due to unsatisfactory performance, was restructured in March 2019. 2. The restructuring included the reduction of the scope of KESIP from a complex program focused on multiple policy areas to only three core sub-systems: School Development Grants (SDGs), Learning Assessments, and revising the teacher career scheme component to focus only on the teacher assessment. The proposed simplification of the project design aims to ensure immediate satisfactory progress in project implementation. Recognizing that the achievement of the project development objective may require additional time, an extension was planned to be considered upon restructuring only if the project showed clear signs of progress by July 2019 against a set of agreed milestones. 3. Since the restructuring, the Ministry of Education, Science and Technology (MEST) has been dedicated to accelerating the pace of implementation to achieve successful outcomes. As a result, significant progress has been made in the implementation and achievement of the agreed milestones. A World Bank team visited Kosovo during the period of July 22-26, 2019 to evaluate progress in achieving KESIP’s July 2019 milestones that would help determine whether the project will be considered for extension. The team evaluated the milestones that were agreed and elaborated in the restructuring paper of April 2019: (i) School Development Grant (SDG) disbursement to schools with approved plans and their use of approximately 540,000 Euros in the eligible areas of goods and training and (ii) piloting of the Grade 12 (Matura) exam with new items aligned to curricular reforms and launching of the National Student Assessment Framework (NSAF). 4. In SDGs, the project improved significantly by releasing SDG budget to municipalities, signing MoUs with all municipalities for the release of development grants, reducing bottlenecks related to goods and service providers, and accelerating the process of package reviews, approval, signing, and delivery for beneficiary schools. Related to the July 2019 SDG milestone of achieving Eur 540,000 disbursements to schools, MEST was evaluated to have met 85 percent of this goal with the remaining 15 percent of goods and services proposals expected to be disbursed in September 2019 when schools return from summer break. In addition, MEST is moving forward for the second 2019 tranche, for a total expected disbursement of approximately EUR 1.0 million for 2019. 5. For the learning assessment milestones, MEST produced a new draft of the National Student Assessment Framework (NSAF). It was determined that one more revision and public consultations are needed before formal ministerial approval. The Matura 12 milestone was also met. MEST finalized the design of new Matura 12 test items and piloted them during the June 2019 exam. The results of this pilot are now being reviewed. 6. MEST continued its management improvements, which include better functioning of the PCU, under the management of an internally appointed Project Coordinator and the support of an Implementation Monitoring Committee (including the participation of the General Secretary, the Director of Pre-University Education, and the Assessment and Evaluations Department Head). In addition, there was closer policy guidance, including consultations with stakeholders led by the Minister of Education. The project's recent financial audit was completed in July 2019 and a clear opinion was issued. Proposed Change: 7. The Government requested a 12-month extension of the closing date from December 31, 2019 to December 31, 2020, which is required to allow for the completion of activities that are key to the achievement of the project The World Bank Kosovo Education System Improvement Project () objectives to strengthen selected systems that contribute to the quality, accountability, and efficiency improvements in education in the Republic of Kosovo. The extension of the project will allow the following activities to be completed: a. A second call for SDG proposals and award of grants to 120 additional schools in 2020. The project will support a new group of 120 schools to develop a proposal based on their school improvement plans that aims to improve school quality. Successful schools will be awarded $10,000 grants for the two eligible expenditure categories: goods and teacher training that are aligned with quality improvements. b. Adoption and Implementation of the National Student Assessment Framework. Once the framework is approved in 2019, the project will support the Ministry to use the framework to guide, design, and plan execution of high quality national student assessment, c. Technical Assistance for developing and strengthening Teacher Professional Development, Teacher Performance Assessment, and Licensing. The project will support various inter-related activities: (i) develop a manual on teacher licensing including the processes of teacher performance assessment, teacher professional development, and licensing; (ii) design of a detailed implementation plan and monitoring mechanism for teacher performance assessment; (iii) formalize the package of Teacher Induction Program including a regulation and implementation manual; (iv) design of the school and cluster based Teacher Professional Development Program; (v) amend the regulation on accreditation of professional development programs; (vi) design a sustainable mechanism of financing teacher professional development, including the school based and provider led model; and (vii) determine a process for populating the teacher licensing database so that it pulls data from TPD and TPA. d. Development of the Student Registry and update of the EMIS module and implement an electronic module for students to register their Matura exam online and select their electives in 2020 Matura 12 exam. e. Design and Pilot School Report Cards. Develop the content and design of the school report cards that will be used as a tool for accountability and to assist a dialogue with the school community on their performance and learning achievements. The report cards will report on basic school data, learning indicators, and other school data including use of SDGs. f. International Assessment Support – analyze and report on PISA 2018 test results II. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-57260 Effective 31-Dec-2019 31-Dec-2020 30-Apr-2021 The World Bank Kosovo Education System Improvement Project ()