The World Bank
    Xinjiang Technical and Vocational Education and Training Project (P147367)




                                                                                     REPORT NO.: RES41029

                                      DOCUMENT OF THE WORLD BANK




                                          RESTRUCTURING PAPER
                                                   ON A
                                    PROPOSED PROJECT RESTRUCTURING

                                                       OF

               XINJIANG TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING PROJECT
                                       APPROVED ON MAY 29, 2015
                                                       TO

                                       PEOPLE'S REPUBLIC OF CHINA


EDUCATION

EAST ASIA AND PACIFIC




                            Regional Vice President:    Victoria Kwakwa
                                  Country Director:     Martin Raiser
                                  Regional Director:    Daniel Dulitzky
                        Practice Manager/Manager:       Tobias Linden
                               Task Team Leader(s):     Liping Xiao, Jeffrey Waite
           The World Bank
           Xinjiang Technical and Vocational Education and Training Project (P147367)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P147367                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Partial Assessment (B)                                         Partial Assessment (B)

Approval Date                                                  Current Closing Date
29-May-2015                                                    31-Dec-2020




Organizations

Borrower                                                       Responsible Agency
                                                               Foreign Loan Management Office of Xinjiang Uygur
People's Republic of China
                                                               Autonomous Region Education Department



Project Development Objective (PDO)
Original PDO
Improve the quality and relevance of project schools to produce students' skills that respond to the labor market
demand in Xinjiang.
Summary Status of Financing


                                                                                       Net
Ln/Cr/Tf                  Approval         Signing Effectiveness        Closing Commitment Disbursed Undisbursed

IBRD-85100            29-May-2015     11-Jul-2015   08-Oct-2015 31-Dec-2020             50.00       34.93           15.07


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
       The World Bank
       Xinjiang Technical and Vocational Education and Training Project (P147367)



I.    SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
Background. The IBRD loan of US$50 million for the Xinjiang Technical and Vocational Education and Training Project
was approved by the Board on May 29, 2015. The loan became effective on October 8, 2015 and has a closing date of
December 31, 2020. The Project Development Objective (PDO) is to improve the quality and relevance of project
schools to develop students' skills that respond to the labor market demand in Xinjiang. The Project consists of two
components: (i) School-Based Reforms and Innovations; and (ii) Provincial Policy Development, School Twinning
Partnership, Monitoring and Evaluation and Project Management. The total project cost was estimated at US$102.68
million at Appraisal. This is the second project restructuring. The first restructuring, approved in November 2019,
cancelled one component from the project, involving activities in partner schools in remote rural areas of Xinjiang
Uygur Autonomous Region, which proved challenging to supervise, and reallocated unutilized funds to other
components.

Implementation Status and Achievements to Date. The PDO remains relevant to current conditions and the priorities
reflected in government strategies, as well as the World Bank Group’s China Country Partnership Framework (CPF) for
2020-2025 (Report No.117875-CN) dated December 5, 2019, especially on the engagement area of sharing the
benefits of growth and by improving the quality of skills development. Progress towards achieving the PDO and the
Implementation Progress are rated Satisfactory. The latest data shows that all three PDO indicators (graduate
employment rates, certification rates and starting salary of graduates) exceeded end-project targets. The results of
tracer studies of those graduating in 2019 in project schools confirmed the continuous rising for both graduates’
employment and quality of employment throughout the project implementation period. Collaboration between
project schools and industry investments in improved facilities and equipment have contributed to curriculum,
pedagogy and assessment reforms at the school level. Curriculum reform has spread to an increasing number of
programs over the project period and student-centered teaching gradually took root in the project schools. Although
the start of the school year had to be extended from early February to April 7, 2020 due to the Covid-19 outbreak,
some procurement activities continued and the disbursement rate has reached 70% with US$34.93 million of the
US$50 million Bank loan disbursed. As most of contracts have reached the final stage of implementation, the project
management office (PMO) is preparing the final impact evaluation, an implementation completion survey and the final
social safeguards external monitoring report.

Reasons for the Change. In the letter dated April 17, 2020, the government requested to end the project early - on
April 30, 2020. The authorities noted that the PDO of the project has been achieved and the implementation is
reaching completion and hence requested early closure.

II.    DETAILED CHANGES
This restructuring proposal is to agree with the government’s request and advance the Project’s closing date from
December 31 to April 30, 2020. The project is well advanced, the PDO have been achieved and most contracts will be
completed by that date. However, a small number of contracts will require longer to complete and the authorities
have confirmed that they will finance remaining commitments under these contracts estimated at US$4.4 million with
their own funds. The expected completion date for these remaining contracts is June 30, 2020. The Bank will continue
to supervise these contracts after the revised closing date following applicable fiduciary and safeguard policies. With
the early project closing, an estimated amount of about US$7.5 million under the IBRD loan is expected to remain
undisbursed. It is proposed that the Bank agree to allow disbursements to be made against activities delivered prior to
the closing date during a grace period of four months, following which the remaining undisbursed amount will be
cancelled.
           The World Bank
           Xinjiang Technical and Vocational Education and Training Project (P147367)



II. DETAILED CHANGES


LOAN CLOSING DATE(S)


                                         Original                Revised                Proposed    Proposed Deadline
Ln/Cr/Tf         Status                  Closing               Closing(s)                 Closing      for Withdrawal
                                                                                                          Applications
IBRD-85100       Effective           31-Dec-2020                                    30-Apr-2020           30-Aug-2020