The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) REPORT NO.: RES29132 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SENEGAL TERTIARY EDUCATION GOVERNANCE AND FINANCING FOR RESULTS APPROVED ON MAY 26, 2011 TO GOVERNMENT of SENEGAL EDUCATION GLOBAL PRACTICE AFRICA Regional Vice President: Makhtar Diop Country Director: Louise J. Cord Senior Global Practice Director: Jaime Saavedra Chanduvi Practice Manager/Manager: Meskerem Mulatu Task Team Leader: Hamoud Abdel Wedoud Kamil 1 The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) ABBREVIATIONS AND ACRONYMS ACBEP National Agency for Construction (Agence de Construction des Batiments et Edifices Publics) GDHE General Directorate of Higher Education HEI Higher Education Institution IT Information Technology ISEP Tertiary Education Vocational Institute (Institut Supérieur des Etudes Professionnelles) LMD Licence Master Doctorat NQAA National Quality Assurance Authority (Autorité National d'Assurance Qualité) PBC Performance-Based Contract PDO Project Development Objective 2 The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) 3 The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) BASIC DATA Product Information Project ID Financing Instrument P123673 Specific Investment Loan Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-May-2011 30-Dec-2017 Organizations Borrower Responsible Agency Government of Senegal,General Directorate of Higher Ministere de l’Economie et des Finances et du Plan Education Project Development Objective (PDO) Original PDO The project development objective is to enhance the efficiency and quality of the higher education system and the oversight and accountability of higher education institutions (HEI). OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-49450 26-May-2011 10-Jun-2011 13-Dec-2011 30-Dec-2017 101.30 86.35 6.36 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No iv The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Senegal Tertiary Education Governance and Financing for Results (P123673) was approved by the Board on May 26, 2011 in the amount of US$101.3 million. The original closing date of the project was June 30, 2016. A level 2 restructuring was approved on March 16, 2016 which extended the project closing date by 18 months to December 30, 2017. The purpose of this earlier restructuring was to allow the full implementation of sector reforms supported by the project and to complete construction activities which had been delayed due to limited counterpart funding. Since this restructuring, progress has been made in reforming the governance of the country’s higher education system and institutions, however, a number of activities have continued to experience delays as a result of limited counterpart funding and the limited capacity of the National Agency for Construction (Agence de Construction des Batiments et Edifices Publics - ACBEP) which is responsible for construction activities under the project. The Project Development Objective (PDO) is to enhance the efficiency and quality of the higher education system and the oversight and accountability of HEIs. Progress towards achievement of the PDO in the most recent implementation status and results report (ISR) was rated Satisfactory and implementation progress was rated Moderately Satisfactory. After five years of implementation, the project has already achieved its goal of reforming the governance of the Senegal higher education system and institutions. The system has moved from being managed by a ministry with weak capacity in the oversight of the management of institutions and the quality of service delivery, to one led by a strong ministry with two entities – the General Directorate of Higher Education and the National Quality Assurance Agency (NQAA) – which are well performing and have allowed effective oversight of both institutional management and the quality of service delivery. A revised law reforming the governance of institutions was adopted on December 18, 2015, giving more autonomy to HEIs, establishing the NQAA, putting in place the board of universities, and allowing engagement with the private sector. In terms of quality, the NQAA, which was established in August 7, 2012, has formally agreed to and adopted standards and evaluation criteria for institutions, and has undertaken evaluations using these criteria. To date, the NQAA has already accredited 44 programs in public HEIs and 104 programs in private HEIs. Further, the NQAA has helped all of these public HEIs and 91 private HEIs to establish internal quality assurance units. The evaluation of all Information Technology (IT) Bachelors programs offered in HEIs in Senegal has also been completed. Courageous measures have been taken by the Government, despite considerable resistance, to improve resource management at all levels (e.g., in terms of scholarships, resources in/for universities). As a result of this improved management, resources generated by institutions can now cover 30 percent of the expenditures instead of 15 percent (prior to the project/introduction of these reforms). In addition, with the effective implementation of performance-based contracts, in addition to supporting the achievement of the results, the project is also helping shift the management culture in institutions from one with an inputs-based orientation to one that focuses on results. Based on this strong progress made towards achievement of the PDO, the overall project risk rating has been upgraded from Substantial to Moderate. Despite these achievements to date, additional time is needed to complete the planned construction of select HEIs (University of Ziguinchor and University of Thies) as well as the rehabilitation of the University of Dakar and the expansion of the Universities of Bambey and Saint Louis, receiving support under the project. The following provides an overview of progress made since October 2016 to date (September 2017) under each of the project’s two components. Component 1: Strengthening the governance of the tertiary education system The General Directorate of Higher Education (GDHE) in charge of overseeing and piloting the development of the higher The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) education sector is operational and is effectively handling the overall management of the project and the Government reform program. Expected results under this component have been successfully achieved. The NQAA is established and has adopted the standards and evaluation criteria of the institutions. The NQAA-Sup has expanded its mandate to include the accreditation of private higher education institutions. NQAA has been able to accredit 104 private institutions out of 139 applications submitted. In terms of quality assurance, all public HEIs have a functional internal quality insurance unit as do 91 private education institutions out of 123. In 2016, NQAA, based on an external evaluation has made 667 recommendations to improve the relevance of academic programs and the quality of higher education. The major remaining challenge in terms of dissemination of the higher education assessment is to improve communications with students, parents, and business owners. A communications plan is being developed for this purpose which will be validated by the World Bank. With regards to the reforms, the law reforming the governance of institutions was adopted on December 18, 2015 to the satisfaction of the entire education community including the Government, unions, and civil society organizations. The Ministry is currently working on finalizing the decree following the adoption of the law in December 2015. This decree will set enable the establishment of the Board of Directors for each institution. Upon the signing of the decree, which is currently in the approval process, the Boards of Directors will be established by December 2017. Regarding the project monitoring and evaluation, an internal evaluation of achievement on each annual Performance-Based Contract (PBC) has been undertaken by the GDHE. An external evaluation will be conducted by independent consultants that will be used for decision-making for allocations of financing to HEIs for the subsequent year. Component 2: Improvement of the effectiveness of the Tertiary education institutions All of the public institutions have signed a PBC with the Government. In addition, all of the universities have strategic plans from which they have developed priority development plans. These plans are evaluated every year. In terms of performance most of the indicators related to this component have been reached. For example, the percentage of academic programs following the Licence Master Doctorat (LMD) scheme has reached the end target (100 percent), and for generating revenue – while it has increased for the most part – most of the institutions are still lagging behind: University of Bambey (8.99 percent), University of Zinguinchor (4.73 percent), University of Dakar (35.8 percent), University of Saint Louis (19.59 percent), and University of Thies (8.77 percent). Regarding the diversification of training and increasing access to short-term tertiary education, the Tertiary Education Vocational Institute of Thies (Institut Superieur d’Enseignement Professionnel - ISEP) started its training courses with 250 registered students, 48 percent of whom were female. Success rates are among the best in the system (99 percent). For construction at universities, the civil works are ongoing in Dakar, Saint Louis, Bambey, Ziguinchor and Thies as well as the ISEP. DESCRIPTION OF PROPOSED CHANGES The objective of this restructuring is to extend the project closing date by 12 months from December 30, 2017, to December 30, 2018. The proposed extension of the project closing date, which was requested by the Government in a letter dated July 20, 2017, will ensure that all of the PDO and intermediate-level targets in the results framework are achieved. More specifically, the extension will allow the completion of two HEIs which are the University of Ziguinchor and the University of Thies (where 60 percent and 20 percent of planned construction work still remain respectively) as well as the rehabilitation of the University of Dakar and the expansion of the Universities of Bambey and Saint Louis, receiving support under the project. The extension will also avoid any reputational risk related to the non-achievement of construction targets. The project will finance PBC with the HEIs which is an important achievement of the project. Based upon the supervision mission recommendations from March 2017, as well as the Government’s revised implementation plan, project activities are expected to be completed in advance of the newly proposed closing date. All The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) construction activities will be completed between September and December 2017, with the exception of Zinguinchor where 60 percent of construction work still remains. Reallocation between Disbursement Categories. The restructuring does not include any reallocation. Change in Disbursement Estimates. The disbursement estimates are being adjusted to account for the proposed extended closing date and to more accurately reflect the disbursement progress to date. As of September 26, 2017, disbursement stands at 92.95 percent - equivalent to US$84.49 million out of the original US$89.8 million. It is expected that the remaining approximately US$6.41 million will be disbursed in 2018 with the aim to reach full disbursement before project close. Results Framework. The restructuring does not include any fundamental changes to the results framework, which will retain all of the same indicators and targets; however, the end target date will be adjusted to December 30, 2018 to match the new closing date. Audit Report. All audit reports have been submitted. There are no pending audit reports. The Task Team confirms that the requirements of World Bank Investment Project Financing (IPF) policies regarding closing dates are met; specifically: (i) the project objectives continue to be achievable; (ii) the performance of the Borrower remains satisfactory; (iii) the World Bank and the Borrower have agreed on actions that will be undertaken by the Borrower to complete the project; and (iv) there are no outstanding audit reports (or audit reports which are not satisfactory to the World Bank) or IFRs for the Credit and Grant. I. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in Disbursement Estimates ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Academic programs that meet the minimum quality standard as set Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 91.00 91.00 Revised Date 06-Sep-2011 13-Feb-2017 30-Dec-2018 Universities with performance-based contracts negotiated and overseen by GHED Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 06-Sep-2011 13-Feb-2017 30-Dec-2018 Institutions that achieve at least 80% of the annual targets set in the performance-based contracts Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 80.00 90.00 Revised The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) Date 06-Sep-2011 13-Feb-2017 30-Dec-2018 Promotion rate at grade one by university Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action UCAD: 44% UCAD: 30% UCAD: 60% UGB: 83% UGB: 70% UGB: 90% Bambey: 78% Value Bambey: 80% Bambey: 90% Revised Thies: 91% Thies: 70% Thies: 80% Ziguinchor: 52% St-Louis: 57% St-Louis: 80% Date 06-Sep-2011 22-Feb-2017 30-Dec-2018 Direct project beneficiaries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 68322.00 157389.00 170000.00 Revised Date 09-Sep-2011 23-Feb-2017 30-Dec-2018 Female beneficiaries Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 33.00 35.50 43.00 Revised Intermediate Indicators IO_IND_TABLE All tertiary education institutions use the new financial law to manage their budget Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) Annual tertiary education statistics report produced Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 Budget allocated based on performance-based contracts Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 9.50 15.00 Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 GDHE is implemented to (i) coordinate the implementation of the tertiary education program, (ii) provide oversight for PBC implementation, and (iii) monitor the status of reforms Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 Tertiary institutions with a Board of Director (Conseil d'Administration) that approves the annual budget Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 25.00 80.00 Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 Repeating students in year 1 in UCAD Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 40.00 35.80 20.00 Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 Undergraduate programs elaborated according to LMD with complete description The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 Teachers having followed training in the LMD requirements for teaching Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 67.00 70.00 Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 Students enrolled in programs designed with private sector in the ISEP Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 538.00 3000.00 Revised Date 06-Sep-2011 23-Feb-2017 30-Dec-2018 The ISEP is functional Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 06-Sep-2011 30-Jun-2016 30-Dec-2018 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-49450 Effective 30-Jun-2016 30-Dec-2017 30-Dec-2018 30-Apr-2019 The World Bank Senegal Tertiary Education Governance and Financing For Results (P123673) OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2012 9,987,323.00 4,920,188.76 2013 15,049,374.02 13,293,013.73 2014 25,047,574.32 45,168,486.74 2015 23,901,095.45 8,493,137.56 2016 10,218,778.35 8,863,728.87 2017 9,584,977.56 2,955,270.58 2018 7,510,877.30 6,350,858.76