The World Bank Higher Education Quality and Innovation Project (P178592) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 14-Jun-2022 | Report No: PIDC34018 May 10, 2022 Page 1 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Kyrgyz Republic P178592 Higher Education Quality and Innovation Project (P178592) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EUROPE AND CENTRAL ASIA Aug 01, 2022 Sep 15, 2022 Education Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Kyrgyz Republic Ministry of Education and Science of the Kyrgyz Republic Proposed Development Objective(s) The objectives of the project are to improve quality of teaching and research of the higher education system and to improve its quality and relevance to the labor market. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 25.00 Total Financing 25.00 of which IBRD/IDA 25.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 25.00 IDA Credit 25.00 Environmental and Social Risk Classification Concept Review Decision Moderate Track II-The review did authorize the preparation to May 10, 2022 Page 2 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) continue Other Decisions (as needed) B. Introduction and Context Country Context 1. Since gaining independence from the Soviet Union in 1991, the Kyrgyz Republic has experienced considerable political turbulence, accompanied by economic and social fragility, episodes of social unrest and frequent changes of government. However, with the structural economic reforms in 1993-94 and improvements in macroeconomic management, remittances, and commodity exports (largely gold) emerged as powerful new drivers of growth, which contributed to increases in economic growth rate. This growth model has enabled the economy to grow at an average rate of 4.5 percent over the period of 2000-2016. However, overreliance on remittances (that account for 25 percent of GDP) and gold production (accounting for 10 percent of GDP and 40 percent of exports) makes the country vulnerable to external shocks, contributing to extreme volatility in growth rate over time. The COVID-19 pandemic has further impacted the economy and real GDP shrank by around 8 percent in 2020. Since then, the economy has slowly recovered and real GDP expanded by 3.6 percent in 2021. Annual growth is forecasted to increase to about 4.5 percent in 2022–23, assuming the COVID-19 pandemic situation will improve, and the tradable sectors benefit from improved external demand. 2. The sectoral composition of the economy changed significantly with a sharp decline in the contribution of manufacturing and an increase in the share of agriculture. The share of agriculture in GDP fell from 34 percent in 2000 to about 12 percent by 2018 and employment contracted more than two-fold even with substantial population growth. Construction, manufacturing, and services sectors absorbed workers from the shrinking agriculture sector. In the manufacturing sector, employment doubled from 6.4 percent of total employment in 2000 to 12 percent of total employment in 2018, however this increase in employment led a decline in sector productivity rather than boosting performance. Similarly, employment in services sectors increased from 36.5 percent of total employment in 2000 to 55 percent of total employment in 2018. However, apart from tourism, transportation, and IT services, most of the jobs in services sectors are in low-productivity enterprises.1 Overall the structural transformations made in the Kyrgyz Republic so far have not led to productivity increases. Still, a larger percentage of firms in the Kyrgyz Republic rate “inadequately educated workforce�?, a higher than average rating as compared to other similar lower middle-income countries. 3. The Kyrgyz Republic has achieved large reductions in poverty over the past decade, but in recent years this progress has stagnated. Aided by growth in remittances and employment abroad, poverty declined from 68 percent in 2003 to 37 percent of population by 2013. However, simply looking at two end points masks great variation in the pattern of poverty changes. Analysis of annual poverty trends shows that poverty dramatically fell during 2003 and 2008 but has since stagnated at around 37 percent. Labor out-migration and associated remittances fueled the domestic economy that led to growth in domestic labor income. As a result, poverty declined, but this model of poverty reduction is unlikely to be sustainable going forward. 1 “Izvorski, Ivailo; Mbowe, Appolenia; Dubashov, Bakyt; Gassner, Katharina; Ferrantino, Michael J.; Islam, Roumeen; Sahovic, Tarik. 2020. Kyrgyz Republic Country Economic Memorandum. World Bank, Washington, DC.. https://openknowledge.worldbank.org/handle/10986/33494 License: CC BY 3.0 I GO.�? May 10, 2022 Page 3 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) 4. With nearly one-third of the population being young, investments in human capital can help to reap the benefits of demographic dividend and boost economic productivity and growth. The adult workforce (25- to 64-year-olds) in the Kyrgyz Republic will expand on average by 60,000 people annually till the end of this century.2 This demographic window of opportunity can boost economic growth if the adults entering the labor market are healthy, educ,ated and have market-relevant skills. Kyrgyz Republic has a value of 0.60 (out of a maximum of 1) in the World Bank’s Human Capital Index (HCI).3 Accounting for access to and quality of tertiary education and health risks during adult life in human capital drops to only 0.40, i.e., a child born in the Kyrgyz Republic would be only around 40 percent as productive as s/he could have been as an adult if s/he enjoyed complete education (including tertiary) and full health.4 This loss in productivity is primarily attributed to low quality of tertiary education. 5. Boosting economic growth in the Kyrgyz Republic will require an integrated development model that invests in the quality of human capital and ensures productive utilization of the enhanced human capital in the economy. The World Bank’s Systematic Country Diagnostic (SCD) identifies the need for a new economic growth model that includes investments in human capital as one of the main levers to unlock exports and growth through private investment, especially in areas where the country has significant unexploited endowments (especially minerals, hydropower and tourism). Additionally, the country must leverage its human resources,and continue reforms and targeted policies to exploit as yet untapped export potential to the Eurasian Economic Union (EEU) and China. The Country Partnership Framework for the fiscal year (FY) 2018–22 period for the Kyrgyz Republic therefore highlithe ghts development of human capital including development of market-relevant skills as one of the key objectives.5 Also, Kyrgyz Republic has launched the Green Economy Program 2019-2023, which guides its transition towards green and inclusive economy. To develop the strategic priorities, the education and training system needs to equip the population with the right skills and introduce a modernized, demand-driven curricula. 6. The Kyrgyz government is pursuing a shift towards innovations and growth in core productivity sectors, which requires a skilled workforce prepared for technological advancements. As the labor market in the Kyrgyz Republic is undergoing a structural shift toward the services sector and technological innovation advances, the demand for the new skills to support the digitalization of the economy is increasing. The state policy on science and innovation is defined by the government document entitled the “Concept of scientific and innovative development of the Kyrgyz Republic 2017-2022�?. The priorities defined by the Concept include development of: (i) energy security and development of the green energy, (ii) mining industry with rational use of mineral resource minimizing the impact on environment and public health; (iii) agro-industrial complex, improving quality of the product and ensuring food security of the country; (iv) sustainable tourism; (v) transport infrastructure by improving accessibility and reducing the impact on the environment; (vi) innovation to increase competitiveness of the country's economy; (vii) social protection system; (ix) education system and science. To ensure the development of the selected priority directions of science and technology and the implementation of subsequent advances in production, the Kyrgyz Government has created the National Fund of Science under the Ministry of Education and Science (MoES). Technological advancements provide significant opportunities to create new jobs and enhance productivity and effectiveness, but this requires a significant change in the current education and skills training system of the country (World Bank 2021). 2 Authors’ calculations using data from UN population prospects (No change variant (constant-fertility and constant-mortality), 2020 – 2100). https://population.un.org/wpp/Download/Standard/Population/ 3 For details on the World Bank’s Human Capital Index, see https://www.worldbank.org/en/publication/human-capital. 4 World Bank. 2020. “COVID-19 and Human Capital�? Europe and Central Asia Economic Update (Fall), Washington, DC: World Bank. Doi: 10.1596/978-1-4648-1643-7. License: Creative Commons Attribution CC BY 3.0 IGO. 5 Kyrgyz Republic - Country Partnership Framework for the Period FY19-FY22 (English). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/358791542423680772/Kyrgyz-Republic-Country-Partnership-Framework-for-the-Period-FY19-FY22 May 10, 2022 Page 4 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) 7. The geography and topography of the Kyrgyz Republic makes it one of the most hazard-prone countries in Central Asia. Data suggests that natural hazards incur major economic losses on these countries, with costs between 0.5 and 1.3% of annual GDP. Rising temperatures, changing hydrology conditions, and frequency of extreme weather events associated with climate change will exacerbate the Kyrgyz Republic’s vulnerability and reduce ability to manage extreme events unless the appropriate adaptation measures are put in place. Drought is a common occurrence in the country, as are land and mudslides, avalanches, squalls, downpours, icing, frosts, breakthrough of glacial lakes, floods, rise of sub-soil waters, epidemics, pests, crop diseases, and river erosion, and earthquakes, of which the country experiences 3,000 to 5,000 every year. Sectoral and Institutional Context 8. Currently in the Kyrgyz Republic, the contribution of human development to national wealth is only 36 percent (The Changing Wealth of Nations 2021: Managing Assets for the Future). The education and training system has also been slow to adjust to the country’s changing economic needs, which results in persistent skills mismatches. Evidence shows that skilled groups of people earn higher wages in the Kyrgyz Republic suggests that the labor market rewards higher skills. Those with tertiary education earn on average 8 to 15 percent more than those with either general secondary or primary education. The low quality of tertiary education can lead to missed opportunities in lifelong incomes for the Kyrgyz population (World Bank, 2021). An adults’ skills survey implemented in 2019, adapted from the OECD’s Programme for the International Assessment of Adult Competencies, shows that about 90 percent of adults surveyed performed below the minimum proficiency level in basic foundational skills - literacy, numeracy and problem solving (Hou et. al. 2021). Even among the most educated adults, a large share has low basic skills. Twenty percent of tertiary level students achieved only level 1 or below in the assessment, whereas less than ten percent tertiary graduates lack these skills in OECD countries. The results also revealed that many higher education graduates have skill levels that are comparable to the skill levels of secondary general graduates. Low skill levels in the adult population also affects teachers, creating a vicious circle of low-quality education and learning. Furthermore, between 80 percent of employers surveyed reported that university graduates have low digital skills in areas such as project management, reporting systems and computer-aided designs. 9. Higher education is accessible to a wide population and is able to play a pivotal role in the socio-economic development of the country, but quality and equity are of concern. The gross enrolment rate is 46.5 percent (compared to 70.7% in Kazakhstan, 31.3% in Tajikistan and 15.9% in Uzbekistan). Tertiary education completion rate is 35 percent (compared to 47% in Kazakhstan, 15% in Tajikistan). A child born today in the Kyrgyz Republic can expect to complete 1 year of higher education. Factoring in the quality of higher education, expected years of higher education is only 0.8 years (HCI 2020). Almost 30 percent of 30- to 34-year-old in Kyrgyz Republic have a tertiary degree, however since the tertiary system relies mostly on households’ contributions, students from underprivileged families are underrepresented. Inequalities in terms of access and completion of higher education remain a concern. Only 27 percent of students in rural areas are likely to complete higher education compared to 56 percent of those in urban areas. 10. Although disparities by gender in Kyrgyzstan remain relatively small, it becomes significantly noticeable in science, technology, engineering, and mathematics (STEM) fields. The proportion of female graduates in STEM is about 30 percent and further gender differences have been identified in the career and academic advancement of women in STEM fields in the country (UNESCO, 2021). According to the Multiple Indicator Cluster Survey (MICS)6, only one out of three girls aged 15-19 have computer literacy. Female enrolments in tertiary education and performance in learning outcomes assessments are higher than that of men. In fact, the World Bank HCI is higher for girls than for 6 MICS is conducted by the National Statistics Committee and supported by UNICEF which focuses on the situation of children and women May 10, 2022 Page 5 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) boys, at 0.62 and 0.58, respectively. Yet, data from the late 2010s showed that women earn less than men in Kyrgyzstan, irrespective of their age, level of education, location and family structure. Women participation in the labor market has been declining in recent years also and young women account for 78.5 percent of 15-24-year-old Youth not in employment, education or training Not in Education or EETs (Hou et.al. 2021), signaling that women, and especially young women, are still an untapped resource for the Kyrgyz economy. Also, according to the Europe and Central Asia Economic Update report (Fall 2020), there is a gender segregation in terms of the discipline studied as women’s presence in STEM majors is considerably lower than that of men (Europe and Central Asia Economic Update Fall 2020: COVID-19 and Human Capital). 11. The higher education system, which used to be state funded went through a transformation towards a more diverse system. It has been through a transformation from an elite system to a mass access higher education system with participation rate of 41 percent in 73 institutions with about 219,030 students (KR MoES 2021). The non- state/private sector participation has also increased (accounting for 40 out of the 73 institutions). Growing demand for higher education has created certain challenges with regard to equity, access and completion of higher education, as well as quality assurance and internationalization. The activities of higher educational institutions (HEIs), regardless of the legal form of ownership and departmental affiliation, are governed by the Law on Education dated 30 April 2003, which is currently being revised. Moreover, the Kyrgyz National Development Strategy that focuses on human development incorporated Target 4.3 of Sustainable Development Goal 4 (SDG 4), which highlights the importance of equal access to and quality of higher education. It also stresses the need to strengthen international cooperation in developing cross-border higher education and research programs and expanding the number of scholarships available for developing countries. Even though the Government expenditures on education almost doubled over the last ten years, higher education receives a small percentage of the government funds. Allocations to science are 0.08 percent of GDP. Low allocation of funds has resulted in minimized expenditure on research, lack of scientific equipment, and low salaries for faculty. Research, science, and innovation systems requires significant support from the Government in order to enhance contribution from the HE system into the strategic development of the country. 12. Recent reform efforts have been implemented in higher education governance, autonomy, and quality assurance but the existing model lacks concrete performance-based indicators and competitive funding schemes for excellence. There are no local universities ranked on any of the most popular international university rankings7. Advancing quality, boosting science and research and standing in international rankings are national priorities. Public universities are not incentivized to innovate, modernize, and align their education programs with the immediate needs of the labor market. Universities are in dire need to develop the entire research ecosystem and increase research output8 with real impact on the economy. The higher education system is also in need for meaningful partnerships with local industries and international institutions to improve relevance of degrees and generate new streams of revenues. The network of HEIs is growing but the impact on labor market is not seen as firms are always looking for skilled workers. 13. The quality assurance system under MoES is undergoing a radical restructuring. A new body was established to coordinate the development of independent accreditation: National Accreditation Council (NAC) under the MoES of the Kyrgyz Republic chaired by its Minister. The NAC has recognized seven accreditation agencies. All educational 7 Such as the Times Higher Education, the Quacquarelli Symonds, Academic Ranking of World Universities, the Center for World University Rankings, the U.S. News Global Universities Ranking, and U-Multirank) 8 According to Thomson Reuters' Web of Science, Kyrgyz scientists published 46 articles in internationally catalogued journals in 2005 and 82 in 2014. This amounts to 15 articles per million inhabitants in 2014. The global average in 2013 was 176 per million and the average for sub-Saharan Africa was 20 per million May 10, 2022 Page 6 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) organizations are accredited in accordance with the procedure established by the legislation of the Kyrgyz Republic in order to confirm the quality of educational services provided. In 2004, Kyrgyzstan has signed and ratified the Lisboan Convention on the Recognition of Qualifications concerning Higher Education in the European Region. The two-cycle system of higher education was introduced in 2012. Joining the Bologna Process for Kyrgyzstan means implementing reforms to fit in the European Higher Education Area and to harmonize higher education systems and facilitate greater mobility, which include aligning degree cycles to the Bologna Bachelor’s-Master’s-PhD cycle to ensure mutual recognition of qualifications and upgrading quality assurance processes. However, the quality assurance system requires further development through methodological support, training of the staff, revision of legislation and strengthening of the bodies involved in the quality assurance process. 14. While internationalization and education export are also on the rise in the Kyrgyz Republic, there is a need to focus on improving the quality and sustainability of the system. The Kyrgyz Republic attracts many international students. For the 2019/2020 academic year, 63,889 students, or approximately 29 percent of total higher education students, were from other countries. While the Commonwealth of Independent States (CIS) is traditionally a big market for Kyrgyz higher education export, the number of international students from non-CIS countries is currently increasing (especially from India and Pakistan). To tap into the market and become a regional leader in attracting foreign students, investments in higher quality education programs are critical. Relationship to CPF 15. The proposed project is aligned with the World Bank Group’s twin goals of eliminating extreme poverty and boosting shared prosperity as well as with the current Country Partnership Framework (CPF) for 2019-20229. The project would contribute directly to Focus Area 3 “Enhance economic opportunities and resilience�? (aimed at creating economic opportunities and building resilience through investments in human capital, efforts to decentralize and support regional development and adapting better to environmental and climate risks), in particular to Objective 7 “Develop human capital�?. The Project will help to reduce the mismatch between education programs and labor market in keys areas of the economy. The centers of excellence will support innovations and in the provision of certification for skilling and reskilling of researchers and graduates. C. Proposed Development Objective(s) 16. The objectives of the project are to improve quality of teaching and research of the higher education system and improving its quality and relevance to the labor market. Key Results (From PCN) Public HEIs staff and students benefiting from project inputs in teaching, learning and research. Networks around strategic priorities established to include academics, researchers, industries, and practitioners from KG universities and abroad. Kyrgyz HEI research gains national and international recognition and visibility. Increased quantity and quality of strategic academic programs. Students’ success increased and dropouts reduced especially among special groups due to programs redesigned and 9 Kyrgyz Republic - Country Partnership Framework for the Period FY19-FY22 (English). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/358791542423680772/Kyrgyz-Republic-Country-Partnership-Framework-for-the-Period-FY19-FY22 May 10, 2022 Page 7 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) student support services. Enhanced employment outcomes of HEI graduates. External accrediting agencies utilizing results-based indicators in the accreditation process of universities. The number of universities implementing a tracking system to monitor graduates up to three years after graduation. Theory of Change Challenges Interventions Activities Outputs Outcomes Impact Establish five centers of Set up of inter-university research hubs/centers of Public HEIs staff and students utilize the centers of excellence. excellence. excellence in teaching, learning and research. Support subscription to research Training modules and activities on research Academic staff involved in research and training at the Insufficient Improved Strengthen resources and journals. commercialization, patenting and partnership centres of excellence or through the competitive funds contribution research and Create knowledge transfer opportunities supported projects gain skills to develop further research and of the HE system to innovation functionality with focus on Partnerships established between the centers of innovation research and updates teaching programs in line with research and capacity for incentivizing commercialization of excellence HEIs, industrial partners and international services to research trends and results. innovation for increased research outputs. institutions government the strategic relevance and Networks around strategic priorities established to and industries Expand opportunities for post- Academic programs of all public HEIS utilizing the centers include academics, researchers, industries and development international in strategic of the country doctoral and visiting fellows. of excellence and the innovation funds in their practitioners from KG universities and abroad. recognition areas Establish competitive funding curriculum, lab activities, dissertations/theses, and Kyrgyz HEI research gains national international mechanism for research and research projects. recognition and visibility . innovation. Faculty members of all public HEIs benefit from added professional development Low relevance Support Program courses redesigned in Courses redesigned based on enhanced standards, Improved Increased quantity and quality of strategic programs. HE graduates transformation support of the centers and competencies, incorporating academic-laboratory relevance of for labor of selected prepared for hybrid teaching. teaching, learning modules, and revised assessments. HEI graduates’ Students’ success increased and dropouts reduced market needs academic Design certification programs Students’ enrolments in redesigned courses and new skills and reflected in especially among special groups due programs programs’ Training of teaching and research certifications. redesigned and student support services. knowledge for employers’ labor market orientation staff. Increased number of nontraditional students participate persistent towards in HE training. Enhanced employment outcomes of HEI graduates. and national needs for Develop or strengthen HEIs’ skilled relevance and a Training modules for teaching staff created. economic career guidance services. development workers path for Students use new or strengthened HEIs career guidance international Upgrading basic teaching priorities. laboratories and initiating a services. accreditation system-level teaching excellence Students using remedial services aiming at student and student support initiative. success The quality of Underdevelop Internal quality assurance units established at higher External accrediting agencies utilizing results-based the HE system ed quality Enhance internal quality Strengthening education institutions indicators in the accreditation process of universities. is raised and is assurance assurance procedures and higher publicly system for the mechanisms in public HEIs. education Updated framework for external accreditation and re- Number of universities implementing tracking system to trusted and needs of a system Update the external quality accreditation. monitor graduates up to three years after graduation. internationally rapidly diversifying governance assurance methodology including recognized and expanding the adoption of quantitative and HE sector outcome-based indicators. D. Concept Description The project will comprise four components that will help the Government operationalize its strategies to improve human capital and labor market outcomes through enhancements in program content, the delivery system, and research and innovation capacity of the higher education system. The project will support (i) strengthening research and innovation capacity for increased relevance and international recognition, (ii) academic transformations that include course redesign using an integrated teaching and research approach, and (iii) strengthening governance and management of higher education. The project will support improved learning and realizing the value of dual education (academic and applied) in teaching and learning. This will include developing learning modules/activities, upskilling activities, collaborations on content development, coaching programs and introduction of post COVID-19 learning recovery measures, supporting the implementation and improvements of internal and external quality assurance, supporting innovations and research, and professional development of teaching and research staff. A new ecosystem for higher education would require finances for innovative projects, tech-parks, and applied research for strengthening institutional framework, improve availability of material resources and enhance the links between the science, universities and businesses, which would ultimately enable the government to achieve work class excellence in higher education. Figure 1 illustrates the conceptual framework of the project. May 10, 2022 Page 8 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) 0.2M Governance & System Strengthening $ Labor m ar k et or ien tation Program redesign in priority areas 3.5 Institutional Leadership Strengthening 1M$ M$ International academic & Course Integrated Course standards/ research Credits system enhancement Quality assurance & Accreditation Course Course 4M $ Course Course + Certifications Qu al ity Professional Capacity Collaboration & partnership Academic Capacity & Research Impact evaluation Research Centers at 5 Universities Rel evan ce Research Labs 13M Teaching Labs 2M $ $ 0.3M $ Learning management and information system strengthening 1M$ Figure 1: Kyrgyz Republic: Higher Education Quality and Innovation Project Conceptual Framework Project components Component 1. Strengthen research and innovation capacity for increased relevance and international recognition (US$16.5 million). 17. This component aims to: i. Establish five research centers as interuniversity hubs in prioritized areas of high relevance to the economy and national priorities. The hubs will serve as support centers of excellence to broaden cooperation between research departments, attract external funding and strengthen partnerships with international institutions in the priority areas, incentivize researchers and provide opportunities to attract and better prepare higher education graduates to contribute to scientific progress for increased economic growth. The centers will institutionalize state, university and business collaborations to ensure shared resources and encourage startups and valued outputs. May 10, 2022 Page 9 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) ii. Support subscription to research resources and journals in support of the research agenda, provide digital access, develop and deliver training to librarians, faculty, and students. This will include preparation of training materials and brochures with research guidance, as well as purchase of software and simulation tools. iii. Create knowledge transfer functionality with a focus on incentivizing commercialization of research. This will include training of specialized personnel to support academic staff with information on patenting, spin-off setting procedures, and partnership opportunities. For instance, provision of tailor-made, one-to-one assistance, identification of resources, and fostering links with the broader community to identify opportunities and societal needs for more research production contribution. iv. Expand opportunities for post-doctoral and visiting fellows. This includes adopting new forms of professional development that is aligned with institutional strategic priorities. The project will also introduce career advancement pathways to allow for secondments or entry to academia from professional positions; schemes for visiting positions and bringing national and international expertise to research teams. v. Establish a competitive funding mechanism for research and innovation. An Academic Innovation Fund (AIF) will provide a total of US$4 million worth of grants. Individual grants will be limited to US$200,000 in funding over two years. All public HEIs, and other related institutions will be eligible to apply for these grants. The AIF will finance grant proposals in two main strategic directions: (a) strengthening university-industry links, and (b) improving research capacity and teaching and learning practices within HEIs. Collaboration between institutions in these grants will be encouraged. Also, to support engagement of key stakeholders and promote mechanisms for inclusion, the review criteria of the AIF applications would include prioritization of faculty and institutions from underdeveloped areas, citizen engagement, and the likely gender impacts. The funds will support procuring necessary laboratory equipment, software and simulation tools, research equipment for priority economic sectors (ICT industry, water management, energy/power industry, agriculture, mining industry, healthcare, etc.), and sponsoring research activities. Component 2. Support transformations to selected academic programs’ orientation towards relevance and a path for international accreditation (US$5.5 million). 18. This component aims at modernizing the curriculum in selected academic programs utilizing integrated teaching and applied research approach focusing on competences and outputs. The modernization will focus on accelerating the adoption of competences through hands-on and applied approach and ensuring compliance with international standards. This will include: i. Support for the ongoing curriculum standards reform and a pilot in selected programs aligned with the research centres that will be supported under Component 1. ii. Redesign of core courses in selected programs to ensure mainstreaming of skills and competences horizontally across the program curriculum, focus on soft and digital skills, more interdisciplinarity, and ensure full use of the credit accumulation and skill certification system. iii. Expansion of professional development opportunities (with certification) for academic teaching staff in HEIs utilizing pedagogical innovations and ICTs. iv. Strengthening the support system through outreach, bridging, and mentoring programs in HEIs directed to underrepresented and vulnerable groups, priority fields focus, identifying talented individuals, and use of tools for support and motivation. This will reinforce university readiness and provide counselling: first year students; academic skills and navigating system for successful orientation, progression, and completion; remedial interventions and tailor-made approaches to help students. May 10, 2022 Page 10 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) v. Establishing and upgrading basic teaching laboratories and initiating a system-level teaching excellence initiative. vi. Creation of flexible pathways to pursue HE studies and increase opportunities for upskilling and reskilling of workforce in strategic areas. Focus on disciplines identified as strategic priorities and improve the system capacity to recognize prior learning credentials allowing wider options of programs and delivery modes including short-courses, micro-credentials, and hybrid teaching with the involvement of industry partners. vii. Modernization of career guidance services in HEIs adopting a differentiated one-stop-shop approach with multi-stakeholder involvement. This includes the following: transforming career orientation in HEIs into one- stop shops in decentralized locations in the institutions; pro-active support in reaching out to students; using data and digital technologies to offer student support; and generating data to inform institutional policies and programs’ design. Component 3. Strengthening higher education system governance (US$2.5 million) 19. This component will strengthen MoES’ strategic planning capacity and management of the higher education system through: i. Enhancing quality assurance arrangements in the accreditation, external quality assurance, self-assessment and internal quality assurance systems. The enhancement will include the introduction of objective outcome- based indicators; adoption of teaching and learning excellence initiative; assessing digitally based teaching; setting up criteria to assess HEIs according to their differential profiles/strengths; strengthening collaboration between internal quality assurance units and accrediting agencies; production of self-assessment reports; and improving the university ranking system. This subcomponent will support strengthening the capacity to carry out the functions of the quality assurance agencies and in the decision-making process by collecting analyzing using, and reporting quantitative and qualitative data about students, faculty, staff, curriculums, course offerings, and learning outcomes. ii. Strengthening the higher education management and tracking system, including improving and streamlining management information system functionalities, ensuring transparency in financial management and university admission process, and organizing monitoring and evaluation of results. iii. Revising a strategy to articulate higher education development into the national economic and social development in strategic areas to improve system efficiency through active management and optimization. Develop and support the implementation of a framework of clearly delineated autonomy and accountability of higher education institutions in a decentralized environment. May 10, 2022 Page 11 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) Component 4. Project management and impact evaluation (US$0.5 million) 20. This component will utilize the already established Project Implementation Unit at the Ministry of Education and Science serving the Learning for the Future Project. The activities will include conducting formative, outcomes and impact evaluations as the project is intended to pilot a new approach or a master model to strengthen academic and research programs. 21. Formative evaluations will be conducted in frequent intervals with relevant stakeholders to understand how the project is contributing to the outcomes laid out in Components 1 and 3. This would include surveys, in-depth structured interviews with key informants (state department officials/ministry officials, teachers, researchers, partners, funders) to assess: (a) how the project has led to increased collaboration between research centers and universities; (b) the extent to which resources were available and used efficiently by the relevant stakeholders; (c) the extent to which new funding and partnership opportunities were leveraged; (d) relevance to labor market and satisfaction of stakeholders; and (e) the contribution of the project to strengthened quality assurance and governance of the higher education system. 22. An impact evaluation will be designed and planned to understand the extent to which the project has contributed towards Components 1 and 2 through improved research and innovation and provided a platform for upskilling which ultimately resulted in improved labor market outcomes. In particular, the evaluation will assess: (a) improved students’ learning, (b) productivity and strengthened research and innovation capacity for increased relevance and international recognition, and (c) the extent to which the pilot has contributed to increased opportunities for upskilling and reskilling of the workforce, focusing on the marginalized and vulnerable groups. 23. Finally, a set of case studies would be developed to capture good practices in research and innovation and lessons learned, which can serve as a model for replication for strengthening higher education in the country. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . 24. Both environmental and social risks are assessed as moderate. Since the exact activities, types of work, laboratory equipment, and universities are not yet defined, the ESF framework approach is applied. The project will seek to open opportunities for disadvantaged groups to enroll in areas supported by the project and in benefiting from the reskilling, certification, and accelerated credentials. Also, the program will include support to help disadvantaged students to locate jobs in the labor market. May 10, 2022 Page 12 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) 25. At this stage of the project initiation, the environmental risks may associate with the activities related to potential minor repair works of the scientific laboratories, if needed, at higher education organizations, provision of laboratory equipment and reagents, as well as IT equipment. In particular, the risks are related to occupational health and safety, laboratory safety, and electronic waste management. No land acquisition is expected as there are existing laboratories that may need some minor repair works, no new construction is planned. The social risk associated with the project activities is an exclusion risk of underdeveloped areas and disadvantaged groups which can benefit from the project activities. Towards addressing the above risks, the MoES will need to prepare Environmental and Social Management Framework (ESMF), which will provide preliminary assessment of the relevant risks, as well as mitigation measures, implementation of monitoring. In addition, Environmental and Social Commitment Plan (ESCP), Stakeholder Engagement Plan (SEP), Labor Management Plan (LMP) will need to be prepared, consulted upon with stakeholders, reviewed and approved by the Bank and disclosed to the public. . CONTACT POINT World Bank Husein Abdul-Hamid Senior Education Specialist Borrower/Client/Recipient Kyrgyz Republic Implementing Agencies Ministry of Education and Science of the Kyrgyz Republic Almaz Beishenaliev Minister moin.mo@mail.ru FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects May 10, 2022 Page 13 of 14 The World Bank Higher Education Quality and Innovation Project (P178592) APPROVAL Task Team Leader(s): Husein Abdul-Hamid Approved By APPROVALTBL Practice Manager/Manager: Country Director: Sascha Djumena 16-Jun-2022 May 10, 2022 Page 14 of 14