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