The World Bank EU4Innovation STEM Project (P170001) REPORT NO.: RES49670 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT PAPER ON A PROPOSED RESTRUCTURING AND ADDITIONAL FINANCING IN THE AMOUNT OF EUR 1,443,014.60 MILLION (US$1,626,421.75 MILLION EQUIVALENT) TO THE REPUBLIC OF ARMENIA FOR THE EU4INNOVATION STEM PROJECT APPROVED ON APRIL 30, 2020 EDUCATION GLOBAL PRACTICE EUROPE AND CENTRAL ASIA Regional Vice President: Anna M. Bjerde Country Director: Sebastian-A Molineus Global Director: Jaime Saavedra Chanduvi Practice Manager: Harry Anthony Patrinos Task Team Leader: Renata Freitas Lemos The World Bank EU4Innovation STEM Project (P170001) ABBREVIATIONS AND ACRONYMS BETF Bank-executed Trust Fund ICT Information Communication Technology ISR Implementation Status and Results Report MoESCS Ministry of Education, Science, Culture and Sport NCEDI National Center for Education Development and Innovation RETF Recipient-executed Trust Fund STEM Science, technology, engineering, and mathematics The World Bank EU4Innovation STEM Project (P170001) BASIC DATA Product Information Project ID Financing Instrument P170001 Investment Project Financing Environmental and Social Risk Classification (ESRC) Low Approval Date Current Closing Date 30-Apr-2020 31-Dec-2022 Organizations Borrower Responsible Agency Ministry of Finance Ministry of Education, Science, Culture and Sport Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 Project Development Objective (PDO) Original PDO To increase the capacity of the National Center for Education Development and Innovation (NCEDI) to formulate and manage key policies affecting general education quality and improve the learning environment for STEM education in selected regions. OPS_TABLE_PDO_CURRENTPDO The World Bank EU4Innovation STEM Project (P170001) Summary Status of Financing (US$, Millions) Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-B2692 22-Sep-2020 22-Sep-2020 30-Oct-2020 31-Dec-2022 2.93 .68 2.29 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank EU4Innovation STEM Project (P170001) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Bank has supported the Ministry of Education, Science, Culture and Sport (MoESCS) in the redevelopment of science, technology, engineering, and mathematics (STEM) curricula and pedagogies and advancing piloting activities in the Tavush region, with the objective of generating lessons to facilitate a nationwide roll-out. The Project is currently being implemented under both Bank-executed Trust Fund (BETF) and Recipient-executed Trust Fund activities (RETF). The BETF (P167562) grant agreement was signed on December 2018 and activities focus on improving STEM education and piloting revised curricula and pedagogies, with activities currently in the piloting and evaluation stages. The signing of the RETF grant agreement (TF0B2692) was completed in September 2020 and the transfer of funds took place in May 2021. Recipient-executed activites under this project are described below. 2. Component 1. Increasing capacity of the NCEDI to better regulate policies affecting the professional development of teachers. (a) Developing the teacher professional development framework: MoESCS, with technical support from international partners, has developed a first draft of the teacher professional development framework, which includes a draft of the teacher accreditation standards. The draft is currently being finalized and will be presented for public consultantions with the education community in Armenia in the coming months. (b) Technical assistance for strengthening of NCEDI capacities: The NCEDI has completed the hiring of staff that will support the overall curriculum reform. The MoESCS has developed the terms of reference for selecting an international firm to provide technical assistance to the Government; carried out a call for expression of interest to carry out the assignment and completed the evaluation of submissions. The technical assistance will include development of: (i) an implementation roadmap for the designed teacher professional development framework tailored to the country, including methodology for the monitoring and evaluation of the trainings and elaboration of other professional development opportunities for teachers, school principals and deputy principals, (ii) a school management system, and (iii) a strategy to outsource the provision of teacher training to eligible training providers (including accreditation standards for providers). 3. Component 2. Acquisition of hardware and equipment for the roll out of the regional pilot on new approaches to STEM teaching and learning. As planned, a needs assessment on the availability and conditions of infrastructure and existing laboratory and computer equipment was conducted two months after the confirmation of the effectiveness of the RETF in 2020 to inform the procurement of equipment. (a) Procurement of science laboratory equipment and furniture for schools in Tavush: The MoESCS has developed lists and technical specifications of STEM laboratory equipment, conducted a market study to determine the estimated cost of the provision of laboratory equipment for natural science subjects (chemistry, biology, physics, and geography), launched tenders and awarded contracts for laboratory equipment and furniture. The World Bank EU4Innovation STEM Project (P170001) (b) Procurement of education technical equipment for schools in Tavush: The MoESCS has developed lists and technical specifications of computer equipment, conducted a market study to determine the estimated cost of the provision of Information Communication Technology (ICT) equipment, launched tenders and awarded contracts for computer equipment and ICT materials. 4. The needs assessment revealed that the available equipment in Tavush schools was outdated and incompatible with other new equipment to be procured, suggesting the need for additional equipment to be procured for the project to be able to establish laboratories for the pilot in Tavush. 5. PDO. Progress towards meeting the PDO is rated Satisfactory. Both PDO indicators and end-of-project targets are expected to be achieved by the project closing date. (a) Draft teacher accreditation standards developed by NCEDI staff are expected to be completed within the next 6 months. (b) Pilot regions’ middle and high schools equipped with STEM material has reached 100 percent of schools for teaching and learning materials and will reach at least 80 percent for equipment within the next 2 months. 6. Implementation progress. The overall Implementation progress is rated Satisfactory in the latest Implementation Status and Results Report (ISR) dated November 1, 2021. The Financial management arrangements under the project are satisfactory and acceptable to the Bank. There are no overdue audits under the project. 7. Rationale for Additional Financing: The Government has requested additional funds to be able to carry out procurement of the necessary equipment and successfully implement the pilot. Providing laboratories for natural science subjects (chemistry, biology, physics, and geography) and ICT equipment for the required number of schools in the targeted Tavush region – 23 general schools, 52 secondary schools, and 4 high schools -- under Component 2 is critical to the Project and its mission to improve the quality of STEM education in Armenia. It is particularly important that this takes place during the current academic year, while the pilot of the revised curriculum and learning standards is being implemented (supported by BETF activities). The needs assessment showed that additional laboratory and ICT equipment was needed. A subsequent market study and average price analysis conducted to determine the estimated cost of the provision of laboratory equipment showed that the purchase of the necessary laboratory and ICT equipment (excluding furniture and materials) would require significantly higher financial resources than original planned for. II. DESCRIPTION OF PROPOSED CHANGES 8. Following the results of a market study and price analysis that proved that purchase of the needed science and ICT laboratory equipment would require higher financial resources than originally planned for, revisions were made to: (i) the list of equipment, including combining lists for chemistry and biology laboratories, and (ii) quantities needed based on more accurate enrolment numbers in each class. Revisions to reduce costs of other non-related activities were also made, resulting in savings to contribute to the science and ICT laboratory equipment costs. The additional funds requested to carry out these activities already take into account these revisions. 9. There are two proposed changes: (a) Component and Costs: Additional funds needed to adequately equip science and ICT laboratories in all schools in Tavush total EUR 1,443,014.60. The World Bank EU4Innovation STEM Project (P170001) (b) Disbursement estimates: As a result of the additional funds needed, disbursement estimates are revised. The additional funds will be disbursed in FY 2022. Revised disbursement estimates provided are as follows: EUR 264,007.81 (FY 2021); EUR 3,580,000.00 (FY 2022); EUR 261,992.19 (FY2023). 10. These additional funds will be secured through a reallocation from the BETF to the RETF. The reallocated funds will come from savings and will not jeopadirze activities currently planned under the BETF nor its successful completion. BETF savings come from (i) dropping an additional region to be piloted due to local coordination issues early in the project, (ii) revising the budget needed for teacher training and mentoring activities, (ii) cancelling travelling and holding a series of workshops and consultations with 40+ local and international consultants virtually due to travel restrictions during the COVID-19 pandemic. 11. The PDO, project components, activities, indicators, and closing dates under the RETF (as well as the BETF) will remain unchanged. 12. The project rating on Environmental & Social performance was downgraded to Moderately Satisfactory in the last ISR dated November 1, 2021 because the project had not yet recruited an Environmental & Social specialist, and Environmental & Social screening had not been conducted and reporting requirements were not followed. Since January 2022, the project has had an Environmental & Social specialist fully on board. 13. The concept Environmental and Social Review Summary of June 2020, the Environmental and Social Commitment Plan of May 2020, and Stakeholder Engagement Plan of October 2020 will be used for this AF as there are no changes to project design. ES Explanation Table III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Additional Financing Proposed ✔ Disbursement Estimates ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Legal Covenants ✔ The World Bank EU4Innovation STEM Project (P170001) Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Increasing the Capacity of the Increasing the Capacity of the NCEDI to Regulate Policies NCEDI to Regulate Policies Affecting General Education Affecting General Education 2990000.00 Revised Quality and Improve the 4627872.59 Quality and Improve the Learning Learning Environment for Environment for STEM Education STEM Education in Selected in Selected Regions Regions 2,990,000.0 TOTAL 4,627,872.59 0 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE ADDITIONAL FINANCING Source Currency Amount USD Equivalent European Commission Development EUR 1,443,014.60 1,626,421.75 Fund - TF(EUDF) Existing Net Commitment USD Amount 2,928,485.04 Total 4,554,906.79 The World Bank EU4Innovation STEM Project (P170001) OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Expected Disbursements (In US$) Fiscal Year Annual Cumulative 2020 0.00 0.00 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00