FOR OFFICIAL USE ONLY Report No: RES38732 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND/OR INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF RWANDA PRIORITY SKILLS FOR GROWTH (PSG) Approved on JULY 5, 2017 TO THE REPUBLIC OF RWANDA Education Global Practice Southern and Eastern Africa Region Regional Vice President: Hafez M. H. Ghanem Country Director: Keith E. Hansen Regional Director: Amit Dar Practice Manager: Muna Salih Meky Task Team Leader: Ruth Karimi Charo The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) ABBREVIATIONS AND ACRONYMS AF Additional Financing DBR Development Bank of Rwanda DACUM Developing a curriculum DLI Disbursement linked Indicator DLR Disbursement linked result HEC Higher Education Council IDA International Development Association ICT Information Communication and Technology LMIS Labour Market Information system MINEDUC Ministry of Education NEP National Employment Programs NSDEPS National Skills Development and employment promotion strategy PAP Program Action Plan PDO Program Development Objective PSG Priority Skills for Growth RDB CSO Rwanda Development Board - Chief Skills Office RTB Rwanda Technical and Vocational Education and Training Board RP Rwanda Polytechnic SDF Skills Development Fund SDR Special Drawing Rights T&L Transport and Logistics TVET Technical and Vocational Education and Training WDA Workforce Development Authority UR University of Rwanda The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DATA SHEET (Rwanda Priority Skills for Growth (PSG) - P252350) BASIC DATA Project ID Financing Instrument IPF Component P252350 Program-for-Results Financing No Approval Date Current Closing Date 05-Jul-2017 30-Sep-2023 Organizations Borrower Responsible Agency Ministry of Finance and Economic Planning Program Development Objective(s) The Program Development Objective is to expand opportunities for the acquisition of quality, market-relevant skills in selected economic sectors. The selected economic sectors include Energy, Transport and Logistics, and Manufacturing (with a focus on ‘Made in Rwanda’ products such as construction materials, light manufacturing and agro-processing). Building skills to advance the country’s economic agenda is a key priority of the GoR’s ongoing Economic Development and Poverty Reduction Strategy-2 (EDPRS 2) launched in 2013. EDPRS 2 builds on the country’s Vision 2020 which seeks to transform the country by raising its per capita GDP to middle-incomelevel by 2020. The Program is grounded in the Government of Rwanda’s (GoR) National Employment Programs (NEP) approved by Cabinet in 2014. NEP was designed to address the employment challenges in Rwanda and equip its population with the skills required to supporteconomic development. The main results areas of the operation are: (i) reinforcing governance of the skills development system; (ii) ensuring provision of quality training programs with market relevance; (iii) expanding opportunities for continuous upgrading ofjob-relevant skills for sustained employability; and (iv) capacity building for implementation. The Program will disburse against achievement of specific Disbursement Linked Results (DLRs) in these results areas 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-67530 30-Jun-2020 05-Jul-2020 23-Sep-2020 29-Sep-2023 75.00 56.48 20.28 Page 1 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) IDA-D7000 30-Jun-2020 05-Jul-2020 23-Sep-2020 29-Sep-2023 75.00 58.38 17.27 IDA-61190 05-Jul-2017 17-Jul-2017 26-Oct-2017 30-Sep-2023 120.00 121.32 0 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 2 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING A. Summary 1. The restructuring of the Additional Financing (AF) for the Rwanda Priority Skills for Growth (PSG) is required to: (a) make changes to the results framework; (b) adjust description and funds allocation for relevant Disbursement Linked Indicators (DLIs); and (c) extend the Program closing date by twelve months from September 29, 2023, to September 29, 2024, to allow for the adequate time to execute major contracts for the DLIs being restructured. Procurement of the target teaching and learning equipment experienced substantial delays during the COVID-19 pandemic. The travel restrictions during the pandemic slowed down the procurement process because potential bidders were expected to conduct pre-bidding sites visits to target training institutions. The Procurement advanced after the pandemic, but the cost of the equipment, including shipping, significantly increased due to various global crisis. The total International Development Association (IDA) Program financing is in the amount of US$270 million (Parent Program: US$120 million and AF US$150 million equivalent). The parent Program was approved on July 5, 2017, and the AF was approved on June 30, 2020. The total Program disbursement is 86 percent. There are no changes to the Program Development Objective (PDO) and the Program design. The PDO is to expand opportunities for the acquisition of quality, market-relevant skills in selected economic sectors namely energy, transport, and logistics, and manufacturing-agroprocessing. The PDO remains relevant and achievable. The proposed restructuring is the second restructuring for the Program. The first restructuring was approved on June 30, 2020, to reflect the AF, including an extension of the parent program by three years to implement the AF. This current request for extension of closing date applies only to IDA 67530 and IDA D7000 under the AF, whose initial closing date was September 29,2023. The proposed closing date is September 29,2024, hence requires approval by the Country Director. The Original Financing is 100 percent disbursed will close as currently slated for September 29, 2023. The task team has assessed that the AF can smoothly continue on its own (for the extended period) and will achieve its PDO. B. Program Status 2. Overall, the Program implementation is on track to achieve its objective. Implementation of most Programs’ DLIs are on track for completion ahead of the current Program’s closing date on September 30, 2023, except for DLI 9, upgrade of teaching and learning facilities, which has also led to a delay in staff undertaking industrial attachment in two programs under DLI 3. In the implementation status and results report (ISR) dated April 26, 2023, Progress towards achieving the PDO and overall implementation progress (IP) is rated moderately satisfactory. Out of the five PDO indicators, three are achieved, and the remaining two are on track and are likely to be achieved. Progress in the implementation of the agreed actions in the Program Action Plan (PAP) is considered satisfactory. Annex 1 shows status of the results framework and Annex 2 shows the status of the PAP. Implementation Status by Disbursement Linked Indicators 3. Implementation of the original Program was completed. The update in this section focuses on the AF: Result Area 1: Reinforcing Governance of the Skills Development System. a) DLI 7: Strengthened National Skills Development and employment promotion strategy (NSDEPS, 2019-2024) NSDEPS implementation, monitoring and reporting. This DLI aims to address weaknesses in the governance of the skills development system through two DLRs:  DLR 7.2 (€4,600,000): Phase 1 of the Labour Market Information System (LMIS) operationalized through: (a) adoption of a comprehensive LMIS design; and (b) publication of semi-annual reports on labor market The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) opportunities and trends. Progress to date: A Technical Working Group (TWG) to oversee the LMIS interventions was established. Phase 1 of the LMIS was developed as per the agreed design, and semi-annual reports on labor market opportunities and trends are published and disseminated.  DLR 7.3 (€1,800,000): Independent mid-term evaluation of the NSDEPS completed. Progress to date: The Medium-Term Review (MTR) for the NSDEPS is advanced, the final report expected before June 30, 2023. Results Area 2: Ensuring Provision of Quality Training Programs with Market Relevance. a) DLI 3 Number of accredited new or updated programs taught by staff participating in industry attachments in Energy, Transport and Logistics (T&L), and Manufacturing-Agro-processing sectors:  DLR 3.1(€13,800,000): Achievement of targeted number of programs. This DLR was scaled up from the original Program. Eighteen (18) additional Technical, Vocational, Education and Training (TVET) and degree programs were targeted under the AF. Progress to date: Staff in 29 out of 33 target programs completed their industrial attachment. Target has been fully achieved by Rwanda TVET Board (RTB) and University of Rwanda (UR). Additional 5 staff, teaching 2 programs at Rwanda Polytechnic (RP), are participating in their industrial attachment, and expected to complete attachment and verification of the same by June 2023. At the RP, industrial attachment for staff is pending for two programs, Railway Engineering and Aircraft Maintenance. The delay is related to partial accreditation of the target training programs mainly caused by the lack of the mandatory teaching and learning equipment (under DLI 9), and a recent decision by the government to postpone procurement of the equipment for these two courses to a proposed Phase II of procurement for equipment (under the proposed new skills operation) due to significant cost escalation. b) DLI 8 Students enrolled in the new/updated TVET and degree programs in Energy, T&L, manufacturing (Agro- processing):  DLR 8.1(€ 11,000,000): Number of students enrolled in TVET and Degree programs. This DLR was introduced under the AF. The total target student’s enrollment is 4,318. Progress to date: Table 1 below shows progress in students’ enrolment at UR, RP and RTB. Table 1: Students enrolled in target new/updated TVET and degree programs Institution Target Enrolled & confirmed by OAG (Total) Male Female Remaining balance to be achieved University of 1,672 1,370 854 516 302 - completed but not yet verified Rwanda (UR) Rwanda 295 303 193 110 Fully achieved Polytechnic (RP) Rwanda TVET 2,351 1,875 961 914 476 - completed but not yet verified Board (RTB) TOTAL 4,318 3,548 2,008 1,540 778 c) DLI 9: Upgrading of teaching-learning environment (staffing and facilities):  DLR 9.1 (€17,500,000): Contracts signed by UR and RP with technical support firm(s) on integrated package (facilities and ICT-enabled pedagogies) for effective delivery of new/updated programs in energy, transport, and logistics (T&L), and agro-processing. Progress to date: Given the significant increase in the cost and delivery of the target equipment for teaching and learning mainly due to global price increases, the government has proposed a phased approach to the procurement of the target equipment. The government has held several consultations with the potential bidders on a framework agreement for the proposed phased approach to procurement of the The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) teaching and learning equipment (Table 2). MINEDUC reported that the consultations with successful bidders are advanced, and contracts are expected to be signed before June 30, 2023. Table 2: Proposed Phased Approach for Upgrading Teaching and Learning Environment UR TVET  DLR 9.2 (€9,200,000): Implementation of staff recruitment plan by recruitment of qualified individuals to fill the required number of staff positions. This plan pertains to recruitment of qualified individuals to fill Full-time Equivalent (FTE) positions in target academic programs. Progress to date: Table 3 shows implementation status of agreed plans for staff recruitment.  DLR 9.3 (€13,800,000): Implementation of staff development plan through training and enrolment of faculty in Bachelor’s, Master’s, and PhD programs. Progress to date: Table 4 shows implementation status of agreed plans for staff development. The RP and RTB have achieved their targets. The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Table 3: Implementation Status of Staff Recruitment Plans Institution Target Achievement University of 66 • 5 staff recruited and verified Rwanda (UR) • 18 staff recruited, but awaiting verification • Remaining 43 staff to be recruited progressively Rwanda 39 • 2 staff recruited and verified Polytechnic (RP) • 23 staff from IPRC Musanze, Huye and Kigali recruited, but awaiting verification • Remaining 8 staff to be recruited by December 2023 Rwanda TVET 16 • 12 staff recruited and verified Board (RTB) • Remaining 4 staff to be recruited Table 4: Implementation Status of Staff Development Plans Institution Target Achievement University of Rwanda (UR) 46 • 15 staff enrolled in PhD and verified • 15 staff enrolled, but awaiting verification • 4 staff admitted, awaiting funding from HEC • 16 staff to be recruited progressively in FY22/23 and FY 23/24 Rwanda Polytechnic (RP) 5 • All 5 staff enrolled and verified Rwanda TVET Board (RTB) 10 • All 10 staff enrolled and verified (8 for bachelor’s and 2 for Master’s)  DLR 9.4 (€14,300,000): Number of new/updated programs in Energy, T&L, and Agro-processing that are being taught in newly equipped SMART classrooms/labs/workshops using new pedagogical methodologies including ICT- enabled continuous student assessment. Progress to date: This DLR is dependent on the execution of the procurement contracts for teaching and learning equipment under DLR 9.1 which are yet to be fulfilled. Results Area 3: Expanding Opportunities for Continuous Upgrading of Job-relevant Skills for Sustained Employability. a) DLI 4: Number of graduates of SDF-supported programs by window1:  DLR 4.3 (€4,600,000): SDF program operational manual (POM) revised to reflect changes in program design under each window and training targets. Progress to date: The POM was revised to reflect the lessons learned under the original Program and was updated.  DLR 4.4 (€17,900,000): Achievement of graduate targets by window. This was a scaled up DLR from the original program (target for total number of graduates under the AF = 13,9002). Progress to date: The SDF is on track in terms of reaching the overall target of an additional 13,900 SDF graduates for the additional financing (AF). A total of 13,900 SDF graduates target is achieved. b) DLI 5: Improved sustainability of financing for long term training programs as measured by student loan recovery: 1 Windows: skills upgrading for small and medium enterprises and selected foreign investors; out-of-school youth; and apprenticeships, internships, informal sector. 2 This target is calculated using a baseline of 9,000 graduates, which was the target for the original program. The World Bank Rwanda Priority Skills for Growth (PSG) (P252350)  DLR 5.3(€11,000,000): Percentage point improvement from baseline in loan recovery rate. This was a scaled up DLR from the original program. Progress to date: The target for the AF (4-percentage point loan increase) was achieved by the Development Bank of Rwanda (BRD). Results Area 4: Capacity Building for Implementation a) DLI 6: Capacity building for targeted entities in at least five areas of the seven3 specified areas, with mandatory and other progress milestones, is completed:  DLR 6.3 (€5,600,000): Three-year consolidated capacity building plan for targeted entities approved by RBD- CSO. Progress to date: This DLR was achieved. A three-year consolidated capacity building plan was developed in collaboration with the Program’s implementing entities.  DLR 6.4 (€8,300,000): Completion of progress milestones in capacity building plan for five out of seven specified additional capacity building areas. Progress to date: Targets under this DLR have been achieved. Five (5) out of seven (7) capacity building areas were completed, these are: DACUM training and certification of trainers; Occupational Health and Safety (OHS); designing and conducting of tracer studies; Quality Assurance; and Advanced Project Management including M&E and fiduciary aspects.  DLR 7.1(€4,600,000): Enhanced capacity of RDB-CSO to carry out its functions as the apex body for skills development. Progress to date: RDB-CSO recruited a team of four international experts4, in June 2021 to support implementation and monitoring of the NSDEPs, and to coach staff at RDB-CSO in strategic and policy issues related to market driven skills development. Fiduciary and Safeguards Compliance 5. Fiduciary systems for the Program are currently rated, Moderately Satisfactory. Despite delays in implementation of procurement activities under DLI 9, most of ongoing procurement activities are advanced. There are no substantial challenges recorded with financial management. The Program’s implementing entities are following up on the agreed Remedial Action Plans (RAPs) for the Auditor’s recommendations. Subsequent audit reports for the Program are due October 31, 2023. Program’s safeguards performance is currently rated, Satisfactory. Disbursements 6. Table 2 shows a breakdown of the total Program disbursements, currently US$234.86 million representing 87 percent of the available US$270 million Program allocation. Program absorption is expected to further improve once the target teaching and learning equipment under DLI 9 are procured. Table 2: Program Disbursements Subject Figures in US$ Equivalent in Millions Parent Program Additional Financing Total (IDA Credit) (IDA Credit and Grant) US$ millions (equivalent) 120 150 270 Disbursed to date (US$) 120 114.86 234.86 3 (a) DACUM training and certification of trainers to ensure that there is capacity within UR and RP for continuous upgrading of existing and design of new programs (HEC and WDA will join training to understand the DACUM process); (b) internal quality assurance systems and tools at UR and RP; (c) design and conduct of tracer studies (HEC, WDA, UR, RP); (d) effective student loan management; (e) electronic case management system for the SDF (WDA); (f) occupational Health and Safety and Grievance Redress Mechanism (all targeted entities); and (g) advanced project management (M&E, financial management and procurement). 4 With expertise in the areas of skills development, employment proportion, and matching. The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) C. Rationale for Restructuring 4. On April 13, 2023, the Government of Rwanda wrote to the World Bank seeking a second restructuring and one- year extension to the Priority Skills for Growth (PSG) Program. Specifically, the government requested a revision of targets under certain DLIs as shown in Table 3, and requested to extend the Program closing date. It is critical to undertake upgrading of the target teaching-learning environment, in order to improve delivery processes of target new and updated courses developed under the parent Program. Improving the overall quality of target training programs will require a holistic approach (staff development; improved teaching and learning conditions; a reliable labor market information system; and student financing). Introduction of pedagogical innovations for these courses, through utilization of the ICT enabled teaching and learning equipment that are to be procured, will enable integration of ICT for active teaching and learning, and improve overall curriculum delivery and student assessment. The proposed phased approach to provision of the teaching-learning equipment allows for a more realistic time frame and fiscal space for the government to finance the equipment over two fiscal years (FYs). 5. Program extension is required to facilitate adequate execution of the contracts for procurement of teaching and learning equipment once these are signed. Once the contracts are signed, it is expected that contract execution, including delivery of equipment, installation, and training on use of equipment will take up to 7 months. The teaching equipment is ICT enabled, and therefore the contractor, as per the contract specifications, is expected to train target staff in relevant digital skills and new pedagogy methodologies to ensure optimal utilization of the new equipment. The proposed extension period will also cater for any unexpected delays in delivery of equipment as some of the equipment will need to be manufactured after contract signing. 6. There are no outstanding audits reports for the Program. The PDO remains achievable during the proposed extension of the closing date, and performance of the borrower is considered satisfactory. The task team concurs with the restructuring request from the borrower. However, the proposed changes will require an amendment of the Financing Agreements for both the Credit and the Grant. II. DESCRIPTION OF PROPOSED CHANGES Changes to the results framework for relevant DLIs 7. The restructuring proposes adjustments to DLIs 3, 8 and 9 in the results framework, to capture changes arising from the proposed phased approach to provision of teaching and learning equipment, and to expand definition of staff recruitment to include part time staff from industry. Table 3 is a summary of the proposed adjustments to the DLIs and indicator. The proposed changes are detailed in the updated results framework, Annex 1. The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Table 3: Proposed adjustments to the results framework Original (AF) Original (AF) Original (AF) Original (AF) Revised (AF) Revised (AF) Revised (AF) Summary Rationale DLI and Disbursement Amount of Amount of DLI/ Amount of the Amount of for the Change Indicator Linked Result (as the Credit the Grant Indicator Credit the Grant applicable) Allocated Allocated (as Allocated Allocated (expressed (expressed in applicable) (expressed in (expressed in EUR) SDR) EUR) in SDR) DLI #3: 6,900,000 5,500,000 DLI #3: 6,133,333 4,888,889 Target decreased Number of Number of from 18 programs accredited new (766,667 for (611,111 for accredited (766,667 for (611,111 for to 16 programs. or updated each each new or each program, each Advanced diploma programs program, up program, up updated up to 8 program, up in aircraft taught by staff to 9 to 9 programs programs) to 8 maintenance and participating in programs) programs) taught by programs) railway engineering Industry staff dropped. Attachments in participating Equipment for these energy, in Industry two courses will be transport and Attachments procured Phase 2. logistics and in energy, manufacturing. transport and logistics Achievement and of targeted manufacturi number of ng. programs Baseline: 15 Achievemen Program t of targeted Target: 33 number of programs Baseline: 15 Program Target: 31 DLI #8: Number of 5,500,000 4,400,000 6,266,667 5,011,111 Target students Students students enrolled increased by 600. enrolled in the in TVET and degree (254,747 per (203,798 per (254,747 per (203,798 per Reallocation of new/updated programs 100 students 100 students 100 students 100 students funds from DLI #3 TVET and up to a up to a up to a up to a above. degree maximum of maximum of maximum of maximum of programs in 2,159 2,159 2,459 students) 2,459 energy, students) students) students) transport and logistics, manufacturing agro- processing. Target Target enrolment: enrolment: 4,918 (of 4,318 (of which which UR = UR = 1,672 and 1,972 and RP RP = 2,646) = 2,946) The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI #9: DLR #9.1 Contracts 8,750,000 7,000,000 Significant cost Upgrading of signed by UR and escalations for teaching- RP with technical target equipment learning support firm(s) on for teaching and environment integrated package learning due to (staffing and (facilities and ICT- global price facilities) enabled increase. pedagogies) for Government effective delivery proposed a phased of new/updated approach to the programs in (Target in RF procurement of the energy, transport 13 target equipment. and logistics and programs) Phase 1 targets 13 agro-processing. programs. (Target in RF 22 programs) DLR #9.2 DLI protocol and Implementation of definition is staff recruitment expanded to include plan by ‘part-time and recruitment of contract staff from qualified industry’ to individuals to fill enhance relevant of the required training programs. number of staff positions. DLR #9.3 Needs assessment Implementation of report was updated staff development in 2022 to consider plan through staff who have training and returned from study enrollment of leave abroad to UR. faculty in There is no change Bachelor’s, (Target 61 in amounts since Master’s and PhD staff (46 the DLI allocation is programs PhDs, 7 scalable on a 20% Masters and target achieved in (Target 64 staff (49 8 Bachelors) the needs PhDs, 7 Masters assessment report. and 8 Bachelors) DLR #9.4 Number 7,150,000 5,700,000 7,150,000 5,700,000 Phase 1 of of new/updated equipment programs in (650,000 for (518,182 for (1,191,666.67 (814,285.74 provision targets 13 Energy, transport each each program for each for each programs. and logistics and program up up to a program up to program up agro-processing to a maximum of a maximum of to a that are being maximum of 11 programs) 6 programs) maximum of taught in newly 11 7 programs) equipped SMART programs) classrooms/labs/w orkshops using new pedagogical The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) methodologies (Target in RF including ICT- 13 enabled programs) continuous student assessment (Target in RF 22 programs) Extension of the Closing Date 8. The restructuring proposes to extend the Program closing date by twelve months from September 29, 2023, to September 29, 2024, to ensure adequate implementation of DLI 9. This extension, once approved, will apply to the Financing Agreements for the AF, for IDA Credit No. 6753-RW and IDA Grant No. D700-RW. The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Reallocation between and/or Change in DLI ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ Change in Cancellations Proposed ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IDA-61190 Effective 30-Sep-2020 30-Sep-2023 IDA-67530 Effective 29-Sep-2023 29-Sep-2024 29-Mar-2025 IDA-D7000 Effective 29-Sep-2023 29-Sep-2024 29-Mar-2025 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) OPS_DETAILEDCHANGES_EA_TABLE . The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) The Program Development Objective is to expand opportunities for the acquisition of quality, market-relevant skills in selected economic sectors. The selected economic sectors include Energy, Transport and Logistics, and Manufacturing (with a focus on ‘Made in Rwanda’ products such as construction materials, light manufacturing and agro-processing). Building skills to advance the country’s economic agenda is a key priority of the GoR’s ongoing Economic Development and Poverty Reduction Strategy-2 (EDPRS 2) launched in 2013. EDPRS 2 builds on the country’s Vision 2020 which seeks to transform the country by raising its per capita GDP to middle- incomelevel by 2020. The Program is grounded in the Government of Rwanda’s (GoR) National Employment Programs (NEP) approved by Cabinet in 2014. NEP was designed to address the employment challenges in Rwanda and equip its population with the skills required to supporteconomic development. The main results areas of the operation are: (i) reinforcing governance of the skills development system; (ii) ensuring provision of quality training programs with market relevance; (iii) expanding opportunities for continuous upgrading ofjob-relevant skills for sustained employability; and (iv) capacity building for implementation. The Program will disburse against achievement of specific Disbursement Linked Results (DLRs) in these results areas Page 14 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Ensure provision of quality training programs with market relevance New or updated programs accredited for occupations in at least 13.00 46.00 one of the selected economic sectors (Number) Share of TVET and degree graduates, from the new and updated programs, in occupations related to Energy, T&L, and Agro- 0.00 50.00 processing sectors employed or self-employed 12 months after graduation (Percentage) Expanding opportunities for continuous upgrading of job relevant skills for sustained employability Percentage of SDF supported trainees employed/self-employed 9 0.00 70.00 months after graduation(% of female graduates:34) (Percentage) Improved sustainability of financing for long term training programs as measured by student loan recovery(percentage) 16.00 31.00 (Percentage) Capacity building for implementation Capacity building for targeted entities in at least five areas of the seven specified areas, with mandatory and other progress No Yes milestones, is completed. (Yes/No) PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Reinforce governance of the skills development system Page 15 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Strengthened Pillar 1 (skills development) of the NEP, as evidenced by the implementation of a JPC that integrates the No Yes results of the sector level action plans (Yes/No) Action plans for specialized technical and professional skills development are formulated for the selected economic Sectors 0.00 3.00 (Number) Key elements of the action plans are incorporated in NEP JPC 0.00 3.00 (Number) Skills Development and Employment Promotion Strategy as a No Yes follow-on to the NEP is approved by Cabinet (Yes/No) Strengthened NSDEPS implementation, monitoring & reporting No Yes (Yes/No) Ensure provision of quality training programs with market relevance Number of accredited new or updated programs taught by staff participating in industry attachments in the selected economic 0.00 31.00 sectors. (Number) Rationale: Target decreased as two programs, advanced diploma in aircraft maintenance and railway engineering dropped. Action: This indicator has been Revised Equipment for these two courses will be procured Phase 2. Percentage of new or updated programs with a modularized design aligned with the REQF in the selected economic sectors 0.00 50.00 (Percentage) Students enrolled in the new/updated TVET and degree 0.00 4,918.00 programs in Energy; Transport and Logistics; Page 16 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Manufacturing/agro-processing (% of female) (Number) (Number) Rationale: Action: This indicator has been Revised Target students increased by 600. Reallocation of funds from DLI #3 . Upgrading staffing and teaching-learning facilities for improved No Yes program development and delivery (Yes/No) Percentage of staff at UR, teaching the new and updated programs, completing the pedagogical innovations course (% of 0.00 50.00 female). (Percentage) (Percentage) Expanding opportunities for continuous upgrading of job relevant skills for sustained employability Number of graduates of SDF supported programs by window 0.00 22,900.00 (Number) BRD Loan Recovery Management Information System is No Yes operational (Yes/No) Number of loan recipients from the 1980 – 2015 cohort who are repaying loans that are registered in the loan recovery MIS 10,000.00 30,000.00 (Number) Number of students receiving loans for long-term training (% 7,607.00 10,164.00 female, % STEM) (Number) Strengthened in-house capacity to step up usage of the MIS for No Yes student loan recovery (Yes/No) (Yes/No) Capacity building for implementation Capacity building for targeted entities in five of the targeted No Yes seven areas with specified milestones , is completed (Yes/No) Page 17 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Level of satisfaction of UR students (Citizen Engagement indicator and part of Grievance Redress Mechanism) (Yes/No) No Yes (Yes/No) Level of satisfaction of RP students (Citizen Engagement indicator No Yes and part of Grievance Redress Mechanism) (Yes/No) (Yes/No) Level of satisfaction of RTB SDF trainees (Citizen Engagement indicator and part of Grievance Redress Mechanism) Redress No Yes Mechanism) (Yes/No) (Yes/No) A Program evaluation is conducted (Yes/No) (Yes/No) No Yes IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01289181 ACTION Strengthened Pillar 1 (skills development) of the NEP, as evidenced by the implementation of a JPC that integrates the DLI 1 results of the sector level action plans Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Yes/No 25.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No US$3 million per sector upon March 2018 Yes 9.00 completion of skills needs asse US$2 million per sector upon August 2018 16.00 incorporation in the elements o Page 18 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) August 2019 0.00 March 2020 Yes 0.00 March 2021 0.00 December 2021 0.00 March 2022 0.00 September 2024 Yes 0.00 DLI IN01289182 ACTION DLI 2 New or updated programs accredited for occupations in at least one of the selected economic sectors Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 30.50 0.00 Period Value Allocated Amount (USD) Formula Baseline 13.00 US$1.2 million for each accredited March 2018 8.00 9.10 program at degree level ; US$1.2 million for each accredited August 2018 10.00 7.00 program at degree level ; US$1.2 million for each accredited August 2019 12.00 12.30 program at degree level ; US$1.2 million for each accredited March 2020 3.00 2.10 program at degree level ; March 2021 0.00 Page 19 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) December 2021 0.00 March 2022 0.00 September 2024 46.00 0.00 DLI IN01289183 ACTION Number of accredited new or updated programs taught by staff participating in industry attachments in the selected DLI 3 economic sectors Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 15,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 15.00 March 2018 0.00 US$333,333 per new or updated August 2018 8.00 2.67 accredited programs taught by US$333,333 per new or updated August 2019 7.00 2.33 accredited programs taught by March 2020 0.00 March 2021 4.00 3,333,333.32 US$ 833,333.33 for each program December 2021 5.00 4,166,666.65 US$ 833,333.33 for each program March 2022 4.00 3,333,333.32 US$ 833,333.33 for each program September 2024 33.00 4,166,661.71 US$ 833,333.33 for each program Page 20 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Action: This DLI has been Revised. See below. DLI IN01289539 ACTION Number of accredited new or updated programs taught by staff participating in industry attachments in the selected DLI 3 economic sectors Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 13,330,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 15.00 March 2018 0.00 US$333,333 per new or updated August 2018 8.00 2.67 accredited programs taught by US$333,333 per new or updated August 2019 7.00 2.33 accredited programs taught by March 2020 0.00 March 2021 4.00 3,333,333.32 US$ 833,333.33 for each program December 2021 5.00 4,166,666.65 US$ 833,333.33 for each program March 2022 4.00 3,333,333.32 US$ 833,333.33 for each program September 2024 31.00 2,496,661.71 US$ 833,333.33 for each program Rationale: Target decreased from 18 programs to 16 programs. Advanced diploma in aircraft maintenance and railway engineering dropped. Equipment for these two courses will be procured Phase 2. Page 21 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289184 ACTION DLI 4 Number of graduates of Skills Development Fund (SDF) supported programs by window Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 24,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Governance and management March 2018 4.25 structure of SDF is functional bas US$1,125,000 for each unit of 500 August 2018 5,875.00 13.25 graduates US$1,125,000 for each unit of 500 August 2019 3,125.00 7.00 graduates March 2020 0.00 US$ 5.0 million SDF operational March 2021 5,000,000.00 manual revised US$1.5 million for each batch of 1,070 December 2021 4,633.00 6,500,000.00 graduates trained US$1.5 million for each batch of 1,070 March 2022 4,633.00 6,499,975.50 graduates trained US$1.5 million for each batch of 1,070 September 2024 22,900.00 6,500,000.00 graduates trained Page 22 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289185 ACTION DLI 5 Improved sustainability of financing for long term training programs as measured by student loan recovery Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Percentage 12,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 16.00 Full amount of US$3 million in Period 1 March 2018 3.00 when digitized datab In Period 2,3 and 4, US$2 million per 1 August 2018 3.00 6.00 percentage point imp In Period 2,3 and 4, US$2 million per 1 August 2019 7.00 8.00 percentage point imp In Period 2,3 and 4, US$2 million per 1 March 2020 11.00 8.00 percentage point imp March 2021 0.00 December 2021 0.00 US$ 3.0 million for each one March 2022 2.00 6,000,000.00 percentage point increase US$ 3.0 million for each one September 2024 31.00 5,999,975.00 percentage point increase Page 23 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289186 ACTION Capacity building for targeted entities in at least five areas of the seven specified areas, with mandatory and other progress DLI 6 milestones, is completed. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Yes/No 15,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No Full amount of US$5 million upon the March 2018 No 5.00 signing of MoU with par August 2018 0.00 Full amount of US$5 million upon the August 2019 1.67 signing of MoU with par Full amount of US$5 million upon the March 2020 3.33 signing of MoU with par Full amount of US$ 6 million upon March 2021 Yes 6,000,000.00 approval of the plan December 2021 Yes 3,600,000.00 US$ 1.8 million for each area March 2022 Yes 1,800,000.00 US$ 1.8 million for each area September 2024 Yes 3,599,990.00 US$ 1.8 million for each area Page 24 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289187 ACTION DLI 7 Strengthened NSDEPS implementation, M&E, reporting. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Yes/No 12,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No March 2018 0.00 August 2018 0.00 August 2019 0.00 March 2020 0.00 Full amount of US$ 5 million for March 2021 Yes 5,000,000.00 enhanced capacity of RDB CSO Full amount US$ 5 million Phase 1 of December 2021 Yes 5,000,000.00 the LMIS operationalized Full amount of US$2 million for MTR March 2022 Yes 2,000,000.00 NSDEPS September 2024 Yes 0.00 Page 25 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289188 ACTION Number of students enrolled in new or updated TVET and degree programs in Energy, Transport & Logistics, and DLI 8 Manufacturing-Agro processing Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 12,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 March 2018 0.00 August 2018 0.00 August 2019 0.00 March 2020 0.00 March 2021 100.00 280,000.00 0.28 per one batch of 100 students December 2021 2,500.00 7,000,000.00 0.28 per one batch of 100 students March 2022 1,718.00 4,720,000.00 0.28 per one batch of 100 students September 2024 4,318.00 0.00 Action: This DLI has been Revised. See below. Page 26 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289540 ACTION Number of students enrolled in new or updated TVET and degree programs in Energy, Transport & Logistics, and DLI 8 Manufacturing-Agro processing Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 13,670,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 March 2018 0.00 August 2018 0.00 August 2019 0.00 March 2020 0.00 March 2021 100.00 280,000.00 0.28 per one batch of 100 students December 2021 2,500.00 7,000,000.00 0.28 per one batch of 100 students March 2022 1,718.00 4,720,000.00 0.28 per one batch of 100 students September 2024 4,918.00 1,670,000.00 0.28 per one batch of 100 students Rationale: Target students increased by 600. Reallocation of funds from DLI #3 Page 27 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289189 ACTION DLI 9 Upgrading staffing and teaching-learning facilities for improved program development and delivery Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Yes/No 59,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No March 2018 0.00 August 2018 0.00 August 2019 0.00 March 2020 0.00 Full amount US$ 19 million for target March 2021 Yes 19,000,000.00 contracts signed December 2021 Yes 15,000,000.00 See breakdown under procedure March 2022 Yes 15,000,000.00 See breakdown under procedure September 2024 Yes 10,500,000.00 See breakdown under procedure Action: This DLI has been Revised. See below. Page 28 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) DLI IN01289515 ACTION DLI 9 Upgrading staffing and teaching-learning facilities for improved program development and delivery Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Yes/No 59,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No March 2018 0.00 August 2018 0.00 August 2019 0.00 March 2020 0.00 Full amount US$ 19 million for target March 2021 Yes 19,000,000.00 contracts signed December 2021 Yes 15,000,000.00 See breakdown under procedure March 2022 Yes 15,000,000.00 See breakdown under procedure September 2024 Yes 10,500,000.00 See breakdown under procedure Rationale: DLR 9.1: Significant cost escalations for target equipment for teaching and learning due to global price increase. Government proposed a phased approach to the procurement of the target equipment. Phase 1 targets 13 programs. DLR 9.2: DLI protocol and definition is expanded to include ‘part-time and contract staff from industry’ to enhance relevant of training programs DLR 9.3: Needs assessment report was updated in 2022 to consider staff who have returned from study leave a broad abroad to UR. There is no change in amounts since the DLI allocation is scalable on a 20% target achieved in the needs assessment report DLR9.4: Phase 1 of equipment provision targets 13 programs. Page 29 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Page 30 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement Provision of advice on change management to heads of the institutions that RDB-CSO (formally CESB) and RP will undergo implements PSG activities as per restructuring Technical Client Due Date 31-Dec-2019 the Subsidiary agreements. Train a cadre of project management staff to better understand best practice, procedures and systems Technical DLI 6 Client Due Date 31-Dec-2019 Trainings conducted Technical expertise to be engaged in the areas of curriculum, pedagogy, New and updated programs assessment, ICT developed using the DACUM and management Technical DLI 6 Client-CESB Recurrent Continuous method. Upgrade the quality and number of TVET Instructors trained in instructors at TVET DACUM. Increase in number of level Technical DLI 6 Client-CESB Recurrent Continuous new instructors under RP. Milestones fully implemented for Increased the MoU between Higher capacity required Education Council (HEC) and in quality Mauritius Tertiary Education assurance and Commission (TEC) for Quality regulation of assurance of the training institutions Technical DLI 6 Client-CESB Recurrent Continuous programs. Partner with an international apex institution to understand the A new Skills development strategy role of an apex developed with defined skills body Technical DLI 6 Client-CESB Due Date 31-Dec-2019 governance structures. Page 31 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Student loan MIS established and Development and functional (MIS able to generate operation of a on demand reports for loans student loan MIS Technical DLI 6 Client-CESB Due Date 31-Dec-2019 administration). Development of a M&E system to be undertaken considering multiple agencies Technical DLI 6 Client CESB Due Date 31-Dec-2019 Trainings completed. Strengthen inspection and monitoring of Milestones for quality assurance tertiary in the MoU between HEC and TEC institutions Technical DLI 6 Client-CESB Recurrent Continuous fully implemented. DACUM training and certification of trainers to ensure that there is capacity within UR and RP for continuous upgrading of existing and design of new programs (HEC and RTB will join training to understand the MINEDUC and Target Staff at UR and RP are DACUM process). Technical DLI 3 RDB-CSO Recurrent Yearly DACUM certified. Increased capacity for design and conduct of tracer studies (HEC, RTB, UR, MINEDUC and Tracer study concept and tools RP). Technical RDB CSO Due Date 31-Dec-2021 developed Develop an electronic case management system for the SDF Functional electronic/MIS SDF (RTB) Technical DLI 4 RTB Due Date 31-Dec-2021 system at WDA Strengthen internal quality assurance systems and tools at UR Revised framework and tools for and RP Technical UR and RP Recurrent Yearly internal quality assurance Establish a consolidated GRM under SDF beneficiating Functional GRM established for institutions and Environmental and Social the SDF grantees and BRD under BRD Systems RTB and BRD Due Date 30-Nov-2021 students loan Page 32 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) students loan scheme. Training in OHS and grievance redress mechanism for all SDF beneficiaries Environmental and Social Training on OHS conducted for of all cohorts Systems RTB Recurrent Continuous SDF grantees Develop customized laboratory operations and safety manuals and moving machines in the laboratories and workshops; establish adequate OHS measures; and proportionate mechanism for management of laboratory and OHS measures in place at UR and workshop waste Environmental and Social RP target workshops and disposal. Systems RP , RTB and UR Due Date 31-Dec-2020 laboratories Establish an OHS audit of all benefiting institutions for the SDF, and based on the outcome of the audit formulate approportionate mitigation Environmental and Social OHS measures established among measures. Systems DLI 4 WDA (RTB) Recurrent Continuous SDF grantees Develop a communication strategy for the Environmental and Social Communication strategy Program Systems MINEDUC Due Date 31-Dec-2020 developed Enhance quality of the internal audit oversight through deployment of additional internal auditors and All PSG training and implementing capacity building. Fiduciary Systems entities Due Date 31-Dec-2021 Quality internal audit Page 33 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) Strengthen the accounting capacity through deployment of adequate number of qualified and All PSG experienced implementing Adequate number of qualified accountants. Fiduciary Systems entities Due Date 30-Jun-2022 accountants in place Strengthen the audit committees through proper composition, regular meetings and evidence of Evidence of audit committee action on audit meeting minutes and all audit recommendations. Fiduciary Systems UR and WDA Due Date 31-Dec-2021 recommendations implemented. Inform all PSG implementing agencies of Bank debarred firms to mitigate potential risk of participation of Bank debarred firms in the program All PSG implementing entitles procurement. Fiduciary Systems MINEDUC Recurrent Quarterly informed of debarred firms Specialized trainings on procurement of large value goods and consultancy services, for all PSG additional financing implementing MINEDUC and agencies. Fiduciary Systems RPPA Due Date 20-Jan-2021 Training conducted Consolidate and periodically (every 6 month) report to Bank on cases/complaints/ allegations regarding fraud and corruption incidence,regardle ss of whether there is incidence of fraud and corruption. Fiduciary Systems MINEDUC Recurrent Semi-Annually Evidence of semi-annual reports Develop a costed MINEDUC and A costed long term sustainability long term Technical DLI 4 RTB Due Date 31-Dec-2021 operational plan for the SDF is Page 34 of 35 The World Bank Rwanda Priority Skills for Growth (PSG) (P252350) sustainability developed and approved by the operational plan Cabinet. with clear milestones for the SDF, and approved by the Cabinet. Partner with an international institution to establish a course on pedagogical innovations for active learning at Number of staff completing the UR Technical UR and RDB CSO Due Date 31-Dec-2021 pedagogy course at UR Develop a training module for GBV targeting UR and Number of senior management RP senior and staff/faculty at UR and RP management and MINEDUC, UR who successfully complete the staff/faculty. Technical and RP Due Date 31-Dec-2020 GBV module RTB to conduct an OHS audit of all benefiting SDF institutions and come up with OHS audit conducted for SDF approportionate grantees under each 'call' and an mitigation Environmental and Social action plan with timelines measures Systems RTB Recurrent Continuous developed and implemented Assigned staff dedicated to Environmental and Social Qualified Staff recruited to safeguards at RP Systems RP Due Date 31-Dec-2021 support safeguards at RP . Page 35 of 35