FOR OFFICIAL USE ONLY Report No: RES55506 INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF TRANSFORMING SECONDARY EDUCATION FOR RESULTS OPERATION APPROVED ON DECEMBER 18, 2017 TO {THE} PEOPLE'S REPUBLIC OF BANGLADESH Education Global Practice South Asia Region Regional Vice President: Martin Raiser Country Director: Abdoulaye Seck Regional Director: Lynne D. Sherburne-Benz Practice Manager: Keiko Inoue Task Team Leader(s): T. M. Asaduzzaman, Aleksan Hovhannisyan The World Bank Transforming Secondary Education for Results Operation (P160943) ABBREVIATIONS AND ACRONYMS DLI Disbursement-linked Indicator DLR Disbursement-linked Result DSHE Directorate of Secondary and Higher Education DTE Directorate of Technical Education GoB Government of Bangladesh IPSC Inter-ministerial Program Steering Committee IO Intermediate Outcome IVA Independent Verification Agency MoE Ministry of Education MoF Ministry of Finance NASS National Assessment of Secondary Students PforR Program for Results PAP Program Action Plan PCU Program Coordination Unit PDO Program Development Objective RF Results Framework SEDP Secondary Education Development Program TSERO Transforming Secondary Education for Results Operation GFF Global Financing Facility IDA International Development Association BMC Budget Management Committee SDR Special Drawing Rights WB World Bank The World Bank Transforming Secondary Education for Results Operation (P160943) DATA SHEET (Transforming Secondary Education for Results Operation - P160943) BASIC DATA Project ID Financing Instrument IPF Component P160943 Program-for-Results Financing Yes Original Environmental Assessment Category (IPF Current Environmental Assessment Category (IPF Component) Component) Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 18-Dec-2017 30-Jun-2023 Organizations Borrower Responsible Agency People's Republic of Bangladesh Program Development Objective(s) The Program Development Objective is to improve student outcomes in secondary education and the effectiveness of the secondary education system. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date IDA-61290 18-Dec-2017 13-Aug-2018 06-Nov-2018 30-Jun-2023 510.00 487.45 20.25 TF-A5179 18-Dec-2017 13-Aug-2018 06-Nov-2018 30-Jun-2023 10.00 2.96 7.04 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) The World Bank Transforming Secondary Education for Results Operation (P160943) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING A. Program Status 1. The World Bank (WB) is supporting the Government of Bangladesh’s Secondary Education Development Program (SEDP) through the Transforming Secondary Education for Results Operation (TSERO). TSERO is linked to three SEDP results areas under its Program for Results component (SDR 366.6 million; US$500 million equivalent from International Development Association [IDA]). It also includes a Technical Assistance Facility (TAF, US$20 million) using the Investment Project Financing instrument (US$10 million equivalent from IDA and US$10 million from the Global Financing Facility [GFF]). 2. The TSERO was approved by WB’s Board of Executive Directors on December 18, 2017. The government approved the SEDP on August 2, 2018; the Financing Agreement and Grant Agreement were signed on August 13, 2018. The government’s SEDP was officially launched only on October 31, 2018, hence significantly delaying the effectiveness of TSERO to November 6, 2018. 3. The Program Development Objective (PDO) is to improve student outcomes in secondary education and the effectiveness of the secondary education system. Progress towards the PDO is currently rated Satisfactory, and the overall implementation progress is rated as Moderately Satisfactory. 4. Program implementation is overseen by an Inter-Ministerial Steering Committee (IPSC) and quarterly monitored through a Budget Management Committee (BMC). 5. Despite the effectiveness delay, there has been considerable progress in implementation. Key achievements include: a. The Program has made notable progress in direct financial support to beneficiaries amidst the COVID crisis. Around 2.7 million beneficiaries (0.9 million boys and 1.8 million girls) received stipends and tuition fees in FY 2019/20 and a further nearly 5.1 million beneficiaries (1.8 million boys and 3.3 million girls) in FY 2020/21. In 2021/22 as of June 30, 2022, 5.7 million beneficiaries (2.2 million boys and 3.5 million girls) received support, through the Harmonized Stipend Program. The financial support during the COVID pandemic period is expected to have a strong impact on reducing economic vulnerability and risk of drop-out for the poor children. b. Prior to the pandemic, there was good progress on learning outcomes. The National Assessment of Secondary Students (NASS) 2019 was successfully carried out in 1,000 institutions across 86 upazilas for grades 6, 8 and 10. Between 2017 and 2019, there was a 10 percentage point increase in reading proficiency among grade 8 students. Also, the fraction of grade 8 students achieving grade-level competency in Bangla, Math and English increased (bigger increases in Math and English compared to Bangla). c. There is a major enhancement of the NASS reporting system as each of the 64 districts will receive their own results with comparisons to the results of their respective division as well as the national results. This will increase accountability and the use of data to drive decision-making at the local level. The World Bank Transforming Secondary Education for Results Operation (P160943) d. The Bank team provided technical support to support teaching-learning for 12.8 million secondary school students through online and offline learning during pandemic as schools were closed to face-to-face instruction and public examinations cancelled. 6. Disbursement Linked Results (DLR) achievement: Overall, out of 34 DLRs, 31 DLRs have been fully achieved and the remaining three DLRs (all from Year-2) have been partially achieved. 7. Disbursement: The disbursement under the Credit amounts to SDR 351,548,276.6 million which is 96 percent of the IDA proceeds. There is no pending advance remaining from the PforR part of the operation as of March 31, 2023. 8. This would be the fifth restructuring. In January 2020, the Program was first restructured to: (i) bring the Program’s focus in line with newly refined priorities within the Ministry of Education (MoE)’s and the World Bank’s respective education strategies; (ii) make adjustments to accommodate the delayed start of the Program and to incentivize achievement of results; and (iii) make changes to the verification protocol to accommodate updated government processes and changes to the government program. This proposal also required changes to two PDO and intermediate outcome (IO) indicators to focus more concretely on Grade 8 only in PDO 1 and Grade 10 only in PDO 3.. 9. In June 2021, the Program was restructured to: (i) generate funding and action for urgent COVID-related priorities in secondary education, (ii) speed up results achievement and disbursement by channeling funds away from DLIs that are no longer relevant or high-priority; and (iii) make small DLR changes to align with the latest implementation arrangements in line with the government’s COVID-19 response. Three IOs and the Program Action Plan (PAP) were revised to reflect the proposed changes in line with the revised program design. The Program disbursed US$128 million after this restructuring, which was the largest single disbursement in the portfolio in that fiscal year and it was a huge boost to the secondary education sector during Covid outbreak. 10. The Grant Agreement (TF A5179) was restructured in November 2021 to align the closing date of the GFF grant agreement with that of the TSERO Financing Agreement and make best use of the undisbursed funds. The aim was to provide much-needed technical and fiduciary oversight and guidance to the government to carry out technical assistance activities to support a coordinated, coherent, and evidence-based approach to the critical activities in the PforR. 11. In December 2022, the Program was restructured to: (i) restructure selected DLRs and the PDO and IO indicators to align them with the findings of Mid-Term Review and the latest implementation arrangements in line with the government’s COVID response and learning recovery efforts; (ii) accelerate results achievement and disbursement by channeling funds away from DLRs that are no longer relevant or high-priority; and (iii) extend the closing date of the Credit and Grant agreements by six months to June 30, 2023. B. Rationale for Restructuring 12. As the program will be closing on June 30, 2023, this restructuring would: (i) restructure the DLI table and, and (ii) cancel the remaining IDA funds of SDR 14,900,000 so that it can be repurposed according to government’s current priorities. The World Bank Transforming Secondary Education for Results Operation (P160943) II. DESCRIPTION OF PROPOSED CHANGES 13 The only change in the proposed restructuring is the cancellation of the remaining IDA fund of SDR 14,900,000 from IDA 61290. The amounts under the respective category of unmet DLIs will be cancelled along with this restructuring III. SUMMARY OF CHANGES Changed Not Changed Change in Cancellations Proposed ✔ Reallocation between and/or Change in DLI ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in IPF Component ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ The World Bank Transforming Secondary Education for Results Operation (P160943) Change in EA category (IPF Component) ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS PROPOSED Value Current Cancellation New Reason for Ln/Cr/TF Status Currency Date of Amount Amount Amount Cancellation Cancellation BORROWER'S IDA-61290- Disburs 366,600,000.0 351,592,213. REQUEST FOR XDR 15,007,787.00 22-Mar-2023 001 ing 0 00 COUNTRY REASONS TF-A5179- Disburs 10,000,000.0 USD 10,000,000.00 0.00 22-Mar-2023 001 ing 0 . The World Bank Transforming Secondary Education for Results Operation (P160943) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) The Program Development Objective is to improve student outcomes in secondary education and the effectiveness of the secondary education system. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Enhanced Quality of secondary education Percentage of students achieving grade level competency in 0.00 5.00 Grade 8 (Percentage) Percentage of students achieving grade level competency in 54.00 59.00 Grade 8 in Bangla (Percentage) Percentage of students achieving grade level competency in 49.00 54.00 Grade 8 in English (Percentage) Percentage of students achieving grade level competency in 57.00 62.00 Grade 8 in Maths (Percentage) Enhanced Quality of secondary education TST monitoring system and virtual monitoring system in place 0.00 3,000.00 (Text) Page 7 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Improved Equitable Access and Retention Grade 10 (of those started in Grade 6) retention rate 69.00 75.00 (disaggregated) (Percentage) Grade 10 retention rate - Girls (Percentage) 66.00 73.00 Grade 10 retention rate - disadvantaged (Percentage) 62.00 70.00 Strengthened governance and management Percentage of schools and students receiving grants and stipends 0.00 0.80 as per criteria and verified by beneficiary reported data (Text) PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Enhanced Quality of secondary education Cumulative number of teachers and institution heads trained (pre-service, in-service and CPD) in Grades 6-12 (core results 0.00 250,000.00 indicator) (Number) Number of institutions implementing the DRH program (Number) 11,982.00 15,000.00 Percentage improvement in Reading Skills proficiency 0.00 10.00 (Percentage) NASS 2021 results analyzed, disseminated and findings NASS implementation (Text) LASI 2017 completed utilized for quality and system improvement Page 8 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Students benefiting from direct interventions to enhance 0.00 13,500,000.00 learning (CRI, Number) Students benefiting from direct interventions to enhance 0.00 7,290,000.00 learning - Female (CRI, Number) Large-scale primary/secondary learning assessments completed 0.00 2.00 (Number) Improved Equitable Access and Retention Gross Enrollment Rate in Higher secondary (disaggregated) 39.00 47.00 (Percentage) Gross Enrolment Rate in Higher secondary (Girls) 36.00 45.00 (Amount(USD)) Implementation of grants (stipend) to students to prevent drop Currently, no student level incentives are provided for out and promote cycle completion at each level of secondary 4.00 cycle completion (junior secondary, secondary and higher secondary) (Text) Implementation of Adolescent Girls Program (AGP) initiated Drop-out rate among girls is higher in secondary education Adolescent Girls Program initiated in two divisions (Text) Strengthened governance and management IBAS++ is used nationally in all DDOs of SEDP Enhanced fiduciary system is not in place. 100% of non-ICB contracts initiated and completed through eGP Enhanced Fiduciary and Data Monitoring (Text) MoE as a pilot ministry for iBAS++ Data consistency and monitoring in DSHE/EMIS improved eGP introduced to DSHE through implementation and periodic reporting by DMS (Digital Monitoring System) Page 9 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Number of institutions that have adequate number of teachers 0.00 20,000.00 including English and Math (Number) Harmonization of sector program implementation (Percentage 0.00 50.00 reduction of stand-alone projects) (Percentage) IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01269400 ACTION DLI 1 Effective and relevant curriculum is in place Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 70,000,000.00 14.29 Period Value Allocated Amount (USD) Formula Secondary Education Curriculum (2012) does not Baseline adequately serve the needs of diverse student population January 2018 to December 2018 DLR 1.1 10,000,000.00 $10 million upon achievement of target January 2019 to December 2019 DLR 1.2 10,000,000.00 $10 million upon achievement of target January 2020 to December 2020 DLR 1.3 10,000,000.00 $10 million upon achievement of target January 2021 to December 2021 DLR 1.4 10,000,000.00 10 million upon achievement of target Page 10 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) January 2022 to December 2022 DLR 1.2,1.3,1.4 30,000,000.00 see financing formula DLI IN01269401 ACTION DLI 2 Assessment and examination system reforms implemented to improve teaching learning Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 43,000,000.00 39.53 Period Value Allocated Amount (USD) Formula Activities underway to support examination reforms Baseline but no National Examination Policy January 2018 to December 2018 0.00 January 2019 to December 2019 DLR 2.1 10,000,000.00 See financing formula January 2020 to December 2020 DLR 2.2 10,000,000.00 $10 million upon achievement of target January 2021 to December 2021 0.00 January 2022 to December 2022 DLR 2.1, 2.3 &2.5 23,000,000.00 See financing formula DLI IN01269402 ACTION DLI 3 Improved teaching-learning in Bangla, English, Mathematics and Science Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 110,000,000.00 45.45 Period Value Allocated Amount (USD) Formula Baseline Unavailability of qualified subject teachers January 2018 to December 2018 0.00 Page 11 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) $16 million for 3000 schools, thereafter January 2019 to December 2019 DLR 3.1 20,000,000.00 $4 million for addi 16 million for 12000 schools, thereafter January 2020 to December 2020 DLR 3.2 20,000,000.00 $4 million for addi $16 million for 7% improvement, January 2021 to December 2021 DLR 3.3 20,000,000.00 thereafter $4 million for ad January 2022 to December 2022 DLR 3.4,3.5 & 3.6 50,000,000.00 See financing formula DLI IN01269403 ACTION DLI 4 Improved teacher management and accountability Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 105,000,000.00 57.14 Period Value Allocated Amount (USD) Formula Baseline Limited teacher accountability January 2018 to December 2018 0.00 January 2019 to December 2019 DLR 4.1 & 4.2 45,000,000.00 See financing formula January 2020 to December 2020 DLR 4.3 20,000,000.00 $20 million upon achievement of target $10 million if 25% of institutions have January 2021 to December 2021 DLR 4.4 20,000,000.00 TST, thereafter $2 m January 2022 to December 2022 DLR 4.2 & 4.5 20,000,000.00 $20 million upon achievement of target Page 12 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) DLI IN01269404 ACTION DLI 5 Improved School management and accountability Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Text 112,000,000.00 7.14 Period Value Allocated Amount (USD) Formula Baseline Schools have low accountability standards January 2018 to December 2018 0.00 January 2019 to December 2019 DLR 5.1 25,000,000.00 See financing formula January 2020 to December 2020 0.00 January 2021 to December 2021 DLR 5.2 30,000,000.00 See financing formula January 2022 to December 2022 DLR 5.1,5.2,5.3 57,000,000.00 See financing formula DLI IN01269405 ACTION DLI 6 Improved grade retention and cycle completion Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 110,000,000.00 22.73 Period Value Allocated Amount (USD) Formula Grade 10 retention rate All: 69 Girls: 66 Baseline Disadvantaged students:62 $5 million upon achievement of target January 2018 to December 2018 DLR 6.1 & 6.2 10,000,000.00 and $5 million upon ac January 2019 to December 2019 DLR 6.3 15,000,000.00 $15 million upon achievement of target Page 13 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) $10 million if AGP is implemented in January 2020 to December 2020 DLR 6.4 15,000,000.00 50% of institutions in January 2021 to December 2021 DLR 6.5 15,000,000.00 $15 million upon achievement of target January 2022 to December 2022 DLR 6.4,6.5,6.6,6.7 55,000,000.00 $15 million upon achievement of target DLI IN01269406 ACTION DLI 7 Institutional Capacity Sthengthened Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 40,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Fragmented institutional structure and need for Baseline enhanced implementation capacity for results based program January 2018 to December 2018 DLR 7.1 10,000,000.00 $10 Million upon achievement of target January 2019 to December 2019 DLR 7.2 10,000,000.00 $10 Million upon achievement of target January 2020 to December 2020 DLR 7.3 10,000,000.00 $10 Million upon achievement of target January 2021 to December 2021 DLR 7.4 10,000,000.00 $10 Million upon achievement of target January 2022 to December 2022 0.00 Page 14 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) DLI IN01269407 ACTION DLI 8 Enhanced Fiduciary Management and Data Systems Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 70,000,000.00 42.86 Period Value Allocated Amount (USD) Formula Fiduciary system needs to be enhanced MoE as a Baseline pilot ministry for iBAS++ Processing of procurement packages through eGP has started $10 million each DLR upon January 2018 to December 2018 DLR 8.1 and DLR 8.2 20,000,000.00 achievement of target January 2019 to December 2019 DLR 8.3 10,000,000.00 $10 million upon achievement of target January 2020 to December 2020 DLR 8.4 10,000,000.00 $10 million upon achievement of target January 2021 to December 2021 DLR 8.5 10,000,000.00 $10 million upon achievement of target January 2022 to December 2022 DLR 8.4 & 8.5 20,000,000.00 see financing formula Page 15 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement NASS framework Approved framework for NASS for approved for 2019 English, Bangla, and mathematics and 2021 Technical MoE Due Date 31-Mar-2019 for grades 8 and 10 Approved TST scheme includes monitoring mechanism, TST indicators, implementation arrangement, and phasing-in TST monitoring plan. scheme approved by MoE and impact study piloted by DSHE Technical MoE Due Date 31-Mar-2022 Detailed Approved scheme minutes on assessment on strategic plan, which includes teacher supply rollout of DRH, available by June and demand 2020. (surplus and deficit by Annual implementation progress institutions, levels, on these three interventions. and subjects) Technical MoE DSHE Due Date 30-Jun-2021 Approved Manual includes types of grants with eligibility and Performance compliance criteria and Based Grants for procedures, grant amount, Secondary disbursement, and compliance Institutions Technical MoE Due Date 31-Oct-2019 verification process. Secondary education (grades 6–10) stipend programs under GoB, SEQAEP, and SESIP upazilas follow a single modality and adequate resources are allocated for Approved harmonized stipend implementation. Other MoE Due Date 31-Oct-2019 guideline. MoU signed between MoE and MoHFW to Signed MoU between MoHFW implement AGP Technical MoE Due Date 31-Oct-2019 and MoE Page 16 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) SEDP implementation structure strengthening approved and PCU established and key operational Fiduciary Systems MoE Due Date 30-Jun-2019 manpower is in place Partnership agreement signed between DSHE and suitable agency to function as GMA to support GMU within DSHE Technical MoE Due Date 30-Jun-2019 Partnership agreement signed Effective implementation means Effective the TA Unit within PSU is implementation of established and operationalized TAF Fiduciary Systems MoE Due Date 30-Jun-2021 by December 2017 Approval of GMS design including implementation plan Fiduciary Systems DSHE Due Date 30-Jun-2021 Approved scheme Effective implementation of approved PFM action plan (which Internal audit system and web- includes IBAS++ based accounting system is roll-out, use of established. eGP, adequate staffing of P&F wing, internal Financial reports generated using audit, Web-based web-based system covering all accounting system DDOs and so on) Other DSHE Recurrent Yearly Web-based publication of Effective updated progress on grievance implementation of redress and complaints handling complaints- in PforR. Semi Annual report handling system Fiduciary Systems MoE Recurrent Semi-Annually submitted Approval of maintenance policy for school infrastructure (including sanitation facilities and classrooms) and updated operational plan to integrate EMF Environmental and Social and EARF Systems MoE Due Date 31-Mar-2020 Approved maintenance policy Maintenance of Environmental and Social hygiene latrine, Systems DSHE Due Date 31-Oct-2019 Approved school grants Page 17 of !Syntax Error The World Bank Transforming Secondary Education for Results Operation (P160943) sanitation facilities, and tube wells incorporated as compliance criteria for school sanitation facility grant Approved PCU scheme includes allocation for social and Adequate environmental safeguards resources for and systems, including provision of a effective focal staff and a specialist at PSU, implementation of and training for field-level social and implementation environmental safeguards systems under the Environmental and Social Annual implementation progress Program Systems MoE, PSU, DSHE Recurrent Yearly . 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