Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD1025 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF SDR2 MILLION (US$3 MILLION EQUIVALENT) TO THE REPUBLIC OF YEMEN FOR A HIGHER EDUCATION QUALITY IMPROVEMENT PROJECT AUGUST 19, 2014 MIDDLE EAST AND NORTH AFRICA REGION EDUCATION GLOBAL PRACTICE This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective: August 4, 2014) Currency Unit = YER YER 0.0047 = US$1 US$1.5 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing CAQAY Council of Accreditation and Quality Assurance in Yemen HEIs Higher Education Institutes HEQIP Higher Education Quality Improvement Project KPIs Key Performance Indicators IP Implementation Progress ISR Implementation Status Report M&E Monitoring and Evaluation MOF Ministry of Finance MOHESR Ministry of Higher Education and Scientific Research MOPIC Ministry of Planning and International Cooperation MS Moderately Satisfactory MU Moderately Unsatisfactory PAC Program Advisory Committee PDO Project Development Objective PIRC Program Identification and Review Committee PMU Project Management Unit POM Project Operations Manual PSC Project Steering Committee QA Quality Assurance QIF Quality Improvement Fund QIT Quality Improvement Team SDR Standard Drawing Rights UQAT University Quality Assurance Teams US$ United States Dollar WBG World Bank Group Regional Vice President: Inger Andersen Country Director: Hartwig Schafer Practice Manager: Harry Patrinos Task Team Leader: Lianqin Wang ii Republic of Yemen Additional Financing for Higher Education Quality Improvement Project CONTENTS ADDITIONAL FINANCING DATA SHEET ...........................................................................................................1 I. INTRODUCTION..................................................................................................................................................6 II. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING .......................................................6 III. PROPOSED CHANGES .....................................................................................................................................8 IV. APPRAISAL SUMMARY ................................................................................................................................11 ANNEX 1 REVISED RESULTS FRAMEWORK AND MONITORING INDICATORS.....................................13 ANNEX 2: OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF) .....................................................19 ANNEX 3: DETAILED DESCRIPTION OF THE ORIGINAL PROJECT AND THE IMPLEMENTATION PROGRESS ..............................................................................................................................................................25 iii Yemen, Republic of RY Higher Education Quality Improvement Project - Additional Financing ( P150129 ) MIDDLE EAST AND NORTH AFRICA GEDDR Basic Information – Parent Parent Project ID: P110733 Original EA Category: C - Not Required Current Closing Date: 31-Dec-2017 Basic Information – Additional Financing (AF) Additional Financing Project ID: P150129 Cost Overrun Type (from AUS): Regional Vice President: Inger Andersen Proposed EA Category: C - Not Required Expected Effectiveness Country Director: Hartwig Schafer 01-Dec-2014 Date: Senior Global Practice Claudia Maria Costin Expected Closing Date: 31-Dec-2017 Director: Practice Harry Anthony Patrinos Report No: PAD1025 Manager/Manager: Team Leader: Lianqin Wang Borrower Organization Name Contact Title Telephone Email Project Financing Data–Parent ( RY Higher Education Quality Improvement-P110733 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date Effectiv P110733 IDA-H5580 29-Apr-2010 28-Jun-2010 01-Sep-2010 31-Aug-2016 31-Dec-2017 e Disbursements % Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Original Revised Disburse d d sed d Effectiv P110733 IDA-H5580 XDR 8.50 8.50 0.00 3.83 4.67 45.11 e 1 –Additional Financing RY Higher Education Quality Improvement Project - Additional Financing ( P150129 ) [ ] Loan [ ] Grant [X] IDA Grant [ ] Credit [ ] Guarantee [ ] Other Total Project Cost: 3.00 Total Bank Financing: 3.00 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount BORROWER/RECIPIENT 0.00 IDA Grant 3.00 Total 3.00 Policy Waivers Does the project depart from the CAS in content or in other significant No respects? Explanation Does the project require any policy waiver(s)? No Explanation Bank Staff Name Title Specialization Unit Huda Mohammed Qaid E T Consultant E T Consultant GGODR Al-Asbahi Asma Saleh Al-Hanshali Program Assistant MNCYE Walid Hamoud Ali Al- Financial Management Financial Management GGODR Najar Specialist Specialist Emma Paulette Etori Senior Program Senior Program GEDDR Assistant Assistant Sepehr Fotovat Ahmadi Senior Procurement Senior Procurement GGODR Specialist Specialist Maiada Mahmoud Abdel Finance Officer Finance Officer CTRLA Fattah Kassem Amira Mohamed Senior Operations GEDDR Ibrahim Kazem Officer J. Roger Pearson Consultant GEDDR 2 Andrianirina Michel Finance Officer Finance Officer CTRLA Eric Ranjeva Lianqin Wang Senior Education Team Lead GEDDR Specialist Non Bank Staff Name Title City Locations Country First Administrative Location Planned Actual Comments Division Yemen, Republic of Yemen Republic of Yemen, Muhafazat Ta`izz Ta`izz X X Republic of Yemen, Amanat Al Asimah Sanaa X X Republic of Yemen, Muhafazat Ibb Ibb X X Republic of Yemen, Muhafazat Muhafazat X X Republic of Hadramawt Hadramawt Yemen, Muhafazat Dhamar Dhamar X X Republic of Yemen, Omran `Amran X X Republic of Yemen, Muhafazat al Al Hudaydah X X Al Hudaidah Republic of Hudaydah Yemen, Aden Aden X X Republic of Institutional Data Parent ( RY Higher Education Quality Improvement-P110733 ) Practice Area / Cross Cutting Solution Area Education Cross Cutting Areas [ ] Climate Change 3 [ ] Fragile, Conflict & Violence [ ] Gender [ ] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Education Tertiary education 74 Public Administration, Law, and Public administration- 26 Justice Education Total 100 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Human development Education for the knowledge economy 50 Human development Education for all 30 Public sector governance Public expenditure, financial 10 management and procurement Public sector governance Other public sector governance 5 Social dev/gender/inclusion Other social development 5 Total 100 Additional Financing RY Higher Education Quality Improvement Project - Additional Financing ( P150129 ) Practice Area / Cross Cutting Solution Area Education Cross Cutting Areas [ ] Climate Change [ ] Fragile, Conflict & Violence [ ] Gender [ ] Jobs [ ] Public Private Partnership 4 Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Education Tertiary education 100 Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Human development Education for the knowledge economy 90 Human development Education for all 10 Total 100 5 1. This Project Paper seeks the approval of the Executive Directors to provide a grant in an amount of SDR2 million (US$3 million equivalent) to the Republic of Yemen for the Higher Education Quality Improvement Project – Additional Financing (P150129, Grant No. H986-RY). 2. The proposed additional grant will fill the financing gap associated with the procurement of laboratory equipment and tools under Component 1 (the Quality Improvement Programs) of HEQIP. The Project Development Objective (PDO) of the original Higher Education Quality Improvement Project (HEQIP) is to create the enabling conditions for the enhancement of the quality of university programs and graduate employability. The PDO will remain unchanged. HEQIP (IDA Grant SDR8.5 million, US$13 million equivalent) was approved on April 29, 2010, declared effective on September 1, 2010, and the original closing date was August 31, 2016. The closing date was extended to December 31, 2017 as part of the level II restructuring of HEQIP approved in July 2013. 3. The Ministry of Higher Education and Scientific Research (MOHESR), the Project Management Unit (PMU), and the implementing entities continue to reflect an unprecedented level of commitment to, and ownership of, the project despite challenging conditions in the country. There is a clear appreciation by MOHESR and universities of the paradigm shift which HEQIP brings to the sector in relation to: (i) linkages between the design and delivery of university programs and the job market, and (ii) development of a quality assurance culture in higher education institutions. 4. Since the launch of the project, both the PDO and the Implementation Progress (IP) ratings have been maintained at a moderately satisfactory (MS) level, with the exception of the period when the IP rating was downgraded to moderately unsatisfactory (MU) following the declaration of disbursement suspension in July 2011 due to the unrest in the country. The IP rating was subsequently upgraded to MS in June 2013 based on the improved project performance and the sustained commitment from the MOHESR and all implementation entities. 5. The proposed additional grant will fill the financing gap associated with the procurement of laboratory equipment and tools under Component 1 (the Quality Improvement Programs) of HEQIP. This is necessary because alternative funding sources have become progressively difficult to secure given the conditions in the country, including insufficient funding for higher education in general, and a waiver of the parallel program fees in universities in particular. These laboratory equipment and tools are critically needed in order for the students to acquire practical skills for employability (which is a key part of the PDO). 6. This additional financing (AF) will not trigger any changes to the PDO or to the implementation arrangements. 7. The PDO of the HEQIP is supported by the following components: Component 1 - Quality Improvement for University Programs (of which IDA SDR2 million (US$3 million equivalent). This is the largest component. It has the goal of facilitating the 6 establishment of a fully sustainable mechanism that will channel financial resources to higher education institutions in Yemen in order to support program development initiatives leading to significant qualitative improvement in teaching and learning, consonant with the social, economic, and employment priorities of the country. A Quality Improvement Fund (QIF) mechanism was established under this component to support 12 undergraduate programs in 8 public universities. Component 2 - Quality Assurance (QA). This component supports activities that will institutionalize QA mechanisms and structures in higher education institutions and will foster enabling conditions conducive to the enhancement of the quality of university programs and graduate competencies. Component 3 - Institutional Capacity Development. This component has a dual objective: (i) to support the planning and monitoring capacity of the MOHESR; and (ii) to nurture the capacity of Taiz University in terms of its fiduciary management and to enhance accountability. Following the project restructuring, the subcomponent relating to the development of the institutional capacity of the MOHESR has been refocused towards the core objective which is to build a planning and monitoring capacity within the MOHESR. Component 4 - Monitoring and Evaluation and Project Management. This component will support the Project coordination, implementation, management, and monitoring and evaluation. 8. Overall, the implementation progress of HEQIP is well-advanced in all the components, despite challenging conditions in the country (see Annex 3 for more details on the project’s progress). The project’s disbursement has been ahead of schedule since the July 2013 restructuring. The PMU recently developed the monitoring and evaluation (M&E) system to ensure adequate data collection, data analysis, reporting, and flagging of issues for timely actions. Based on the improved M&E capacity and completion of the M&E system, as well as the satisfactory quality of the quarterly progress reports, the rating for M&E was upgraded from moderately unsatisfactory (MU) to moderately satisfactory (MS) in the latest Implementation Status and Results Report (ISR) following the April 2014 implementation support mission. 9. The most acute issue facing HEQIP is the financing gap in procuring laboratory equipment and tools for the QIF programs under Component 1. Improved relevance of undergraduate programs to the job market requirements is the core value added of Component 1. The design of Component 1 is triggered by the struggle of employers with new university graduates who are not employable as they are equipped with neither the knowledge nor the skills that qualify them to enter the job market. The QIF program aims to address this issue by developing demand-driven and learning-outcome-based curricula that inherently includes laboratory work in order for the students to acquire the necessary practical skills to enter the labor market. Since the majority of the 12 QIF-funded programs are of a technical or scientific nature, this requires high levels of investment in laboratory equipment and tools that are significantly beyond the level of financial resources currently allocated under the HEQIP. 10. During the project design stage in 2009, it was understood and agreed with the MOHESR that the available HEQIP financial resources would be deployed mainly towards developing mechanisms to enable conditions for quality improvement and graduate employability, as opposed to the purchase of advanced equipment. It was also understood that incremental financial resources would also be pursued 7 at the level of the universities. Accordingly, the Project Steering Committee limited the share of funding for laboratory equipment to 35-40 percent of each QIF program's allocation. 11. The MOHESR/PMU and university presidents have been seeking government and donor funding for the laboratory equipment, but have not been successful so far. This is due to the country’s current fiscal condition and the reasons specified in paragraph 5. It has become very urgent to fill the financing gap for the procurement of the priority laboratory equipment because two cohorts of students are already enrolled and the first cohort is in its second year. Without the necessary laboratory equipment, students will not acquire the set of practical skills required to enhance their employability, and achievement of the PDO would be at risk. Hence, the MOHESR has requested the World Bank to provide this critical AF after having explored other options, unsuccessfully. AF offers the best mechanism to support this urgent and critical need. 12. The activities to be supported through AF are fully consistent with the original PDO which remains highly relevant. The activities are consistent with MENA’s Regional Strategy, supporting the pillar of economic and social inclusion, thereby also contributing to the World Bank Group’s (WBG) goals of eradicating extreme poverty and boosting shared prosperity. In addition, the project is aligned with WBG’s Interim Strategy Note for Yemen (FY13-14) (Report 70943-YE). With its innovative and market-driven approach, HEQIP provides key building blocks towards a relevant higher education system, and facilitates the development of more employable graduates. Summary of Proposed Changes The proposed Additional Financing (AF) of SDR2 million (US$3 million equivalent) will fill a critical financing gap for the procurement of laboratory equipment and tools under the Quality Improvement for University Programs component, the first and largest component of the parent project. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ ] No [ X ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Grant Closing Date(s) Yes [ ] No [ X ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ ] No [ X ] Change in Disbursement Estimates Yes [ X ] No [ ] 8 Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ ] No [ X ] Development Objective/Results Project’s Development Objectives Original PDO The Project Development Objective (PDO) is to create the enabling conditions for the enhancement of the quality of university programs and graduate employability. Compliance Covenants - Additional Financing ( RY Higher Education Quality Improvement Project - Additional Financing - P150129 ) Source of Finance Description of Funds Agreement Date Due Recurrent Frequency Action Covenants Reference Conditions Source Of Fund Name Type Description of Condition Finance Grant Closing Date - Additional Financing ( RY Higher Education Quality Improvement Project - Additional Financing - P150129 ) Source of Funds Proposed Additional Financing Grant Closing Date IDA Grant 31-Dec-2017 Change in Disbursement Estimates (including all sources of Financing) Explanation: The proposed AF includes revised disbursement estimates. Expected Disbursements (in USD Million) (including all Sources of Financing) Fiscal Year 2015 2016 2017 2018 Annual 500000 800000 1500000 200000 9 Cumulative 500000 1300000 2800000 3000000 Allocations - Additional Financing ( RY Higher Education Quality Improvement Project - Additional Financing - P150129 ) Disbursement %(Type Source of Category of Allocation Currency Total) Fund Expenditure Proposed Proposed Cat # 1 Goods, Cons, IDAT SDR 2,000,000 100.00 Train Under Part A Total: 2,000,000 Current Proposed Current Proposed Goods, Cons, Train IDA-H5580 SDR 5,350,000 0.00 100.00 0.00 Under Part A Goods,Con,Tra,IOC in IDA-H5580 2,985,620 0.00 100.00 0.00 Parts B C D IDA-H5580 PPF REFINANCING 164,380 0.00 0.00 0.00 Total: 8,500,000 0.00 Components Change to Components and Cost Explanation: An additional US$3,000,000 will be added to Component 1 to fill a financing gap for the procurement of priority laboratory equipment and tools for the undergraduate programs. During the stage of project design in 2009, it was understood and agreed with the MOHESR that the available HEQIP financial resources would be deployed mainly towards developing mechanisms for the enabling conditions of quality improvement and graduate employability – not specifically for the purchase of advanced equipment, for which incremental financial resources would be pursued at the level of the universities. Accordingly, the Project Steering Committee limited funding for laboratory equipment to 35- 40 percent of each program’s allocation. Yet, identifying alternative funding sources has become progressively difficult due to challenging conditions in the country in general, and insufficient funding for higher education in particular, including a waiver of the parallel program fees. The MOHESR/PMU and university presidents have been seeking government funding, but have not been successful so far (mainly due to the country’s current fiscal condition). It has become very urgent to fill the funding gap for the procurement of the priority laboratory equipment because two cohorts of students are already enrolled and the first cohort is already in its second year. Without the necessary laboratory equipment, students will not acquire the set of practical skills required to enhance their employability, and achievement of the project PDO would be at risk. 10 Current Component Proposed Component Current Cost Proposed Action Name Name (US$M) Cost (US$M) Quality Improvement Quality Improvement for for University 8.30 11.30 Revised University Programs Programs Quality Assurance Quality Assurance 1.30 1.30 No Change Institutional Capacity Institutional Capacity 0.70 0.70 No Change Development Development M&E and Project M&E and Project 2.70 2.70 No Change Management Management Total: 13.00 16.00 Economic and Financial Analysis Explanation: As per the original project, the AF would continue to support Yemen’s investments in higher education, which has the potential to contribute to economic development and poverty reduction. The economic analysis for the original project indicated that positive dividends may be expected from implementing the HEQIP. The AF is expected to be consistent with this because the investment in laboratory equipment will directly benefit human capital by increasing students’ practical skills and employability. The Bank’s support to public sector financing has become more crucial given the budget deficit at the country level, as well as at the level of public universities. This is particularly the case after the waiver of parallel programs fees, which were previously a source of financing for universities’ activities. As per the original project, the HEQIP AF, which is expected to yield substantial benefits for the sector and for students, is expected to be sustainable in the future, given that its impact on the sector budget remains limited. Technical Analysis Explanation: The Project brings in a paradigm shift in the way undergraduate programs are being designed and delivered. It inherently focuses on a balanced approach towards knowledge and practical skills. On the latter, students need to have access to laboratory equipment and tools that prepare them for job market requirements and enhance their employability once they graduate. Without such priority laboratory equipment, which can only be made available with the proposed AF, students would be unable to acquire these skills and meeting the PDO at the end of the project would be at risk. Bank’s value added: At the time of designing the original project, it was envisaged that other sources of funding would be sought for the laboratory equipment. However, with the challenging conditions in Yemen, this has become increasingly difficult and the Bank’s role as financier has become critical. 11 Procurement: The procurement arrangements—including a qualified team of two procurement officers and a procurement assistant—has been satisfactory in processing the procurement activities. However, further support will be required from implementing entities in the respective components in terms of preparation and evaluation of technical specifications. Given the large number of activities involved, the Bank Team continues to support PMU’s efforts to closely monitor bid and proposal evaluation, contract negotiation, contract management, and timely payments against well-defined deliverables, to ensure the smooth implementation of the project. Financial management: The PMU has maintained adequate financial management (FM) arrangements, with suitable internal controls in place. FM staff turnover has been minimal. All required reports were received on time. No major FM issues are pending. As a result, the FM rating was upgraded from Moderately Satisfactory to Satisfactory following the April 2014 implementation support mission. Social Analysis Explanation: The AF is being prepared using feedback from the students and also with the full engagement of the university QIF programs, the MOHESR/PMU, and the project steering committee, as well as in consultation with the Ministry of Planning and International Cooperation (MOPIC) and the Ministry of Finance (MOF). Environmental Analysis Explanation: No change. This AF is rated as environmental Category C which is consistent with the Parent Project RY HEQIP (P110733). The project’s Integrated Safeguards Datasheet was updated and re-disclosed on July 13, 2014. Risk Explanation: ORAF was developed to reflect the overall risk assessment for both the parent Project and the AF. Overall Implementation Risk: Substantial 12 Project RY Higher Education Quality Improvement Project - Project Additional Financing Status: DRAFT Name: Additional Financing (P150129) Stage: Team Requesting Lianqin Wang MNC03 Created by: Amira Mohamed Ibrahim Kazem on 26-Mar-2014 Leader: Unit: Product Responsible IBRD/IDA GEDDR Modified by: Amira Mohamed Ibrahim Kazem on 15-Jul-2014 Line: Unit: Country: Yemen, Republic Approval FY: 2015 MIDDLE EAST AND NORTH Lending Region: Investment Project Financing AFRICA Instrument: Parent Project Parent Project P110733 RY Higher Education Quality Improvement (P110733) ID: Name: Project Development Objectives Original Project Development Objective - Parent: The Project Development Objective (PDO) is to create the enabling conditions for the enhancement of quality of university programs and graduate employability. Proposed Project Development Objective - Additional Financing (AF): Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Unit of Indicator Name Core Baseline Actual(Current) End Target Measure QIF programs adopting Percentage Value 0.00 75.00 65.00 mechanisms to ensure the Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 quality of undergraduate program development and Comment 9 out of 12 programs are adopting agreed 13 delivery. mechanisms as per indicator definition. Three of the programs: Computer Since Program – Hajja University, Computer Network Program – Taiz University and E-learning Program – Hodeidah University) are lagging behind but taking serious steps to catch up. Currently, this target has been met. QIF programs adopting Percentage Value 0.00 66.00 65.00 mechanisms to enhance Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 graduate employability Comment 8 out of 12 programs fulfill the agreed elements of the definition; while the remaining 4 (Computer Science Program – Hajja University; Computer Networking and Distribution System - Taiz University, Basic Education Program – Sana’a University, and E- learning Program - Hodeidah University) are taking conducive steps towards graduate employability as per the definition. Currently, this target has been met. Public universities with Percentage Value 0.00 0.00 75.00 functioning QA mechanisms Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment A number of steps were taken: 10 quality weeks training modules developed and being delivered in universities; the QA standards and Manual for Level 1 and 2 have been finalized; 80 assessors have been trained to apply Level 1 standards and are ready to assist the HEIs for self- assessments; Level 1 standards and manual are being applied by several colleges. 14 Direct project beneficiaries Number Value 0.00 3025.00 9839.00 Date 21-Sep-2010 01-Jul-2013 31-Dec-2017 Comment Female beneficiaries (%) Percentage Value 0.00 17.00 15.00 Currently, this target has been met. Sub Type Supplemental Intermediate Results Indicators Unit of Indicator Name Core Baseline Actual(Current) End Target Measure QIF procedures manual Yes/No Value No Yes Yes developed Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment It was also agreed to further elaborate the M&E section in the QIF manual to ensure effective engagement of the QITs and consistency between the project results framework and the program's log frame. PIRC established Yes/No Value No Yes Yes Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment The Bank team notes that the Project Identification and Review Committee (PIRC) is taking an active role in monitoring and guiding project implementation, and strongly supports this initiative. QIF proposals approved by Yes/No Value No Yes Yes MOHESR Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment QIF Programs with timely Percentage Value 0.00 66.00 65.00 15 achievement of annual Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Performance Agreement targets Comment 8 out of 12 programs have shown consistent commitment to PA, while 4 would require more intensive follow-up from PMU. Currently, this target has been met. QIF Programs establishing a Number Value 0.00 5.00 8.00 formal arrangement for Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 professional development with regional and/or international Comment Five QIF programs signed MOUs with universities regional/international HEIs and follow through with specific agreements towards professional development, peer review, etc. Quality Assurance Council Yes/No Value No Yes Yes (CAQAY) established Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment For the purpose of promoting a quality culture, CAQAY has at least one media event every month. CAQAY developed and distributed a brochure to the universities in January 2014, which focused on the Quality Week Program at Yemeni Universities. CAQAY will develop a tracking system for QA activities, and a contract is currently being finalized and will be signed by August 30, 2014. Quality assurance strategic plan Yes/No Value No No Yes developed and finalized by Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 CAQAY Comment The strategic plan for CAQAY has been finalized. Standards and procedural Yes/No Value No No Yes manual for implementing Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 16 internal QA reviews prepared Comment (i) The Quality Assurance Standards and by CAQAY Manual for Level 1 and 2 have been finalized; (ii) 80 assessors have been trained to apply Level 1 standards and are ready to assist the HEIs for self- assessments; (iii) Level 1 standards and manual are being applied by several colleges. Trained peer reviewers conduct Yes/No Value No No Yes regular on-site visits as part of Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 internal review process verification Comment Response to self-assessment is low so far. This can potentially improve with further clarification of the purpose of self-assessment and its value added to program quality. Quality Week Training Modules Number Value 0.00 8.00 12.00 to develop project universities’ Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 capacity in quality assurance concepts and practices Comment 8 out of 12 Quality Modules have been developed and delivered by developed - to be reviewed. CAQAY Since the September 2013 mission, Quality Weeks (QWs) were conducted in Sana’a University, Hadhramout University, and Ibb University. Over 100 faculty members were trained. Four more QWs are planned for Taiz University, Thamar University, Aden University and Hodeidah University. Higher education KPIs formally Yes/No Value No Yes Yes endorsed by MOHESR Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment Higher education statistical Yes/No Value No No Yes yearbook produced by Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 17 MOHESR Comment TOR cleared in November 1, 2013 with only one response to the advertisement. The technical proposal is currently being amended. Contract to be awarded by October 2014). Satisfactory results of fiduciary Yes/No Value No No Yes capacity assessment of Taiz Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 University Comment Manual for the new procedures in the areas of financial management, procurement, and internal audit approved by the University Council. Specific action items were agreed for MOF approval of the Manual of Procedures. This would facilitate the adoption of the new procedures at the university level. In addition, it was agreed to proceed with: (i) manual piloting of the new procedures, and (ii) moving to an automated system once the procedures are adequately implemented. Quarterly progress reports Yes/No Value No Yes Yes produced on time Date 21-Sep-2010 21-Apr-2014 31-Dec-2017 Comment Annually audited financial Yes/No Value Yes Yes statements submitted on time Date 21-Apr-2014 31-Dec-2017 Comment 18 Yemen, Republic: RY Higher Education Quality Improvement Project - Additional Financing (P150129) Project Stakeholder Risks Stakeholder Risk Rating Moderate Risk Description: Risk Management: (i): (i) Quality Improvement Fund (QIF) programs will (a) QIF program academic staff were trained on learning-outcome-based curriculum. be delivered in a business-as-usual mode with no (b) Technical assistance (TA) is being provided to conduct peer reviews of course value added to students. This includes students not specifications and curricula. (c) Measures have been taken to ensure students’ access to having timely access to learning resources and learning materials (including program catalogs, study plans, handouts, and text books). laboratory equipment, and QIF program delivery (d) An Additional Financing (AF) is being processed to support the availability of priority being reduced to theoretical lectures with no hands- laboratory equipment required by QIF programs, and the MOHESR will ensure program on experience. delivery in alignment with the learning-outcome framework. The bidding packages will be developed within three months of the approval of the AF to ensure smooth and efficient (ii) University academic staff will resist quality procurement of the required laboratory equipment. assurance (QA) activities and the self-review (e) A communication mechanism, including focus group discussions for students, employers, exercise. and academic staff, is in place to ensure feedback is used to address arising issues in program design and delivery. (iii) The new fiduciary system will not be adopted by Taiz University. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Risk Management: (ii): (a) Creating a QA culture within the university academic environment is one of the key objectives of this component. (b) A number of QA modules have been designed for universities and to address key QA concepts. (c) CAQAY undertakes on-going communication activities, including a website, media spots, a newsletter, etc. Resp: Status: Stage: Recurrent: Due Date: Frequency: 19 Client In Progress Implementation CONTINUO US Risk Management: (iii): (a) The TA firm adopted a participatory approach in developing the fiduciary manuals. (b) The new system was widely disseminated to all university stakeholders and their feedback was incorporated. (c) The Project Management Unit (PMU) has conducted follow-up meetings to address issues that may arise with the new system and its potential adoption. (d) A steering committee will be established to monitor the adoption of the new system and address implementation issues. (e) The manuals will be presented to the MOF for their endorsement, and this should address potential resistance from MOF staff based in the university. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Substantial Risk Description: Risk Management: (i): (i) The implementing agency (MOHESR) may not (a) The PMU has been in place since 2010 and has sufficient staff to implement AF activities have adequate capacity to manage the Project, including procurement and FM issues. including the fiduciary aspect. (b) A PMU Advisor with prior experience as a Director of a World Bank-funded project was recruited to provide support to the PMU in the areas of monitoring and evaluation (M&E), (ii) Universities lack experience in implementing procurement, and QIF programs implementation. QIFs. (c) The PMU will ensure it has sufficient and qualified staff. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Risk Management: (ii): (a) A simple and clear Project Operations Manual was developed and is being used by all 20 QITs. It is also being updated to address QITs’ requirements. (b) Ongoing TA is provided to help QIF programs since project preparation. (c) Professional development of academic staff is an integral element of the design of all QIF program. (d) QIF programs are being supported by the PMU. (e) The IDA team continues to provide substantial technical support to the PMU and QITs. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Governance Rating Substantial Risk Description: Risk Management: (i) The MOHESR and the PMU closely engage in an effective dialogue with new university (i) Change of university leadership will adversely presidents to clarify the purpose of the relevant activities, their roles, and the potential benefits impact the level of university commitment towards of the project to the whole higher education sector. Also, the composition of the project the QIF and Taiz University's fiduciary capacity. steering committee (PSC) and the project identification and review committee (PIRC) convene frequently, with the Vice Minister’s constant support to ensure the resolution of (ii) Some QIF programs may receive laboratory arising issues. In addition, the performance agreements signed between the universities and equipment for research purposes and not for the MOHESR ensure the universities’ compliance with the implementation agreements. teaching and learning purposes. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Risk Management: (ii) As an initial step, all QIF programs submitted the list of priority laboratory equipment with direct mapping to learning outcomes and course names. As part of finalizing the technical specifications and cost estimates, the document will state the purpose of the equipment to ensure they are for teaching and learning purposes, and this will be further verified by the PMU prior to inclusion in the Procurement Plan. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Risk Management: The Bank is working closely with the Government and providing support to initiatives that 21 will improve transparency and accountability. The ongoing Public Financial Management Program focuses on improving efficiency and transparency in the management of public finances by strengthening decision-support systems and building capacity in the Government's central finance institutions. The US$3 million AF to this project will bring the outdated system of national accounts up to international standards, and establish an appropriate internal audit system. The Bank has also prepared a proposal, approved by the Transition Fund in December 2013, to help enhance the capacity of SNACC to develop and implement a national anti-corruption strategy. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Project Risks Design Rating Moderate Risk Description: Risk Management: (i): (i) Overestimating the pace of Implementing (a) The project design incorporates lessons learnt from the previous project (HELP), Institutional and Policy Reforms. particularly in terms of the simple design and realism. (b) The project design does not aim for either institutional or policy reform, but to “set the (ii) The QITs are not able to provide clear technical stage” for forthcoming reforms. specifications for the laboratory equipment required (c) CAQAY-related activities focus on realistic elements of strategic planning, and a culture of for achieving learning outcomes QA and self-assessment, and does not include accreditation. (d) The fiduciary capacity building is undertaken in Taiz University in order to create a replicable and sustainable model for eventual decentralization. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Both CONTINUO US Risk Management: (ii): The PMU has already contracted with a consultant to verify the validity of the priority equipment and to develop coherent technical specifications and cost estimates for the required laboratory equipment for relevant QIFs. Resp: Status: Stage: Recurrent: Due Date: Frequency: 22 Client In Progress Implementation CONTINUO US Social and Environmental Rating Low Risk Description: Risk Management: QIF programs cause adverse environmental and This project is rated as environmental Category C, which is consistent with the Parent Project social impacts. RY HEQIP (P110733). As for social impacts, the Bank team carried out extensive consultations with various stakeholders since the very early stages of project design. Although the early policy discussions were carried out with the Minister and Vice Minister of Higher Education and Scientific Research, the team adopted an extensive participatory approach during the development of the project components. The team consulted University Rectors, Deans of Faculties, and faculty members, as well as representatives of private universities, the civil society and development partners. This approach is also apparent in the composition of the PSC and the PIRC. Laboratory equipment and tools will be purchased for existing laboratories at the three universities. Meanwhile, under the original project, limited amounts of chemicals to be used by undergraduate students for laboratory work are procured. There are existing environment and safety measures at the laboratories to mitigate for potential risks as documented by the Project, as well as training planned by the Quality Improvement Teams to improve the effectiveness of such measures. The AF was prepared with the full engagement of the university QIF programs, the MOHESR/PMU and the project steering committee, as well as in consultation with MOPIC and MOF. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Program and Donor Rating Low Risk Description: Risk Management: Overlap of funding resources. The Bank will closely monitor Project activities and respective funding resources. Meanwhile, the PMU has developed a rigorous approach to develop and update annual work plans to ensure a transparent view of activities and sources of funding. Resp: Status: Stage: Recurrent: Due Date: Frequency: 23 Client In Progress Implementation CONTINUO US Delivery Monitoring and Sustainability Rating Moderate Risk Description: Risk Management: Inadequate information on results. A simple M&E system has been developed by the PMU to ensure data is being timely and accurately collected. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation CONTINUO US Overall Risk Overall Implementation Risk: Rating Substantial Risk Description: The PMU and university QITs have no previous experience in procurement for complicated laboratory equipment. In addition, there is a general high risk from the challenging security conditions in Yemen. 24 1. Component 1 - Quality Improvement for University Programs. The goal of this component is to facilitate the establishment of a fully sustainable mechanism that will channel financial resources to higher education institutions in Yemen, in order to support program development initiatives leading to significant qualitative improvement in teaching and learning, consonant with the social, economic, and employment priorities of the country. A Quality Improve Fund (QIF) mechanism was established under this component to support 12 undergraduate programs in 8 public universities, and a Quality Improvement Team (QIT) was formed in each of these programs to manage the preparation and the ongoing program implementation. Significant steps have been achieved in relation to the establishment of the mechanism, including: (i) the completion of Program Learning Outcome Frameworks for 12 undergraduate programs with clear linkages to Yemen’s economic development; (ii) the formulation of procedures and processes for curriculum development; (iii) the design and delivery of professional development workshops for Curriculum Development Committees and the curriculum development teams; (iv) the development of curricula for the first year of all programs and for the subsequent years (years 2-4 or years 2-5, depending on the programs) for most of the 12 programs; (v) the preparation and distribution of Student Handbooks; and (vi) enrollment of two batches of students in 11 new programs.1 Following completion of the project design phase and signing of Performance Agreements between the MOHESR and university presidents in early 2011, Program Advisory Committees were established to guide the alignment of graduate professional competencies, academic knowledge, and employability skills based on the expectations of the economic sectors in which the students are likely to find employment. This is being followed by the building of expertise in the respective faculties regarding the procedures associated with learning-outcomes-based program design, review, and delivery. The mechanism being established under this component is considered a paradigm shift in Yemen’s higher education system. 2. Component 2 – Quality Assurance (QA). This component supports activities that will institutionalize QA mechanisms and structures in higher education institutions and will foster enabling conditions conducive to the enhancement of the quality of university programs and graduate competencies. Implementation of this component has further advanced since the formal appointment of the Chair of the Council of Accreditation and Quality Assurance in Yemen (CAQAY) in December 2012. The CAQAY strategic plan has been developed. In addition, standards for higher education institutions for Level 1 (beginner) and Level 2 (foundation) have been drafted, and procedural manuals for the application of these standards in the internal review exercise at the college/faculty level are being developed. Twelve modules (Quality Weeks Modules) have been identified for building capacity in each university and are currently being implemented. Capacity building activities are being initiated with a view to developing a core team of a minimum of five individuals (the University QA Team) in each well-established public university (eight universities in total) that will eventually lead QA initiatives in their respective universities. For the purpose of promoting a quality culture, the QA brochure and newsletter have been published and the QA website has been launched by CAQAY. 1 It was agreed during the March 2013 mission that the Computer Science program in Hajja University will postpone enrollment of a second batch until 2014/2015 due to the program’s limited capacity in terms of teaching staff. 25 3. Component 3 - Institutional Capacity Development. This component has a dual objective: (i) to support the planning and monitoring capacity of the MOHESR; and (ii) to nurture the capacity of Taiz University in terms of its fiduciary management, and to enhance accountability. Following the project restructuring, the subcomponent relating to the development of the institutional capacity of the MOHESR has been refocused towards the core objective which is to build a planning and monitoring capacity within the MOHESR. The procurement process is in progress for the associated technical assistance support and capacity development activities. Meanwhile, the technical assistance which supports upgrading of the fiduciary capacity in Taiz University is well underway. The manual for the new procedures in the areas of financial management, procurement, and internal audit has been finalized, and training of relevant university staff on the manual is under way. 4. Component 4 - Monitoring and Evaluation and Project Management. Further to September 2013 mission agreements, the Project Operations Manual (POM) was revised and deemed acceptable by the Bank in March 2014. The most significant change made to the POM was the development of the monitoring and evaluation (M&E) system to ensure adequate data collection, data analysis, reporting, and flagging of issues for timely actions. To improve the internal control aspects of project management, it was agreed that activities involving study tours and training outside Yemen will be subject to the Program Identification and Review Committee’s (PIRC) approval according to set criteria. 26 MAP 27