OFFICIAL
DOCUMENTS
THE WORLD BANK
BRD WORLDBANKGROUP
FARIS H. HADAD-ZERVOS
Country Director for Maldives, Nepal, and Sri Lanka
South Asia Region
December 9, 2021
Mr. Madhu Kumar Marasini
Secretary
Ministry of Finance
Government of Nepal
Kathmandu, Nepal
Dear Mr. Marasini:
Re: Nepal: Enhanced Vocational Education and Training Project II
(Credit No. 6142-NP)
Amendment to the Financing Agreement
We refer to the Financing Agreement ("Agreement") between Nepal ("Recipient") and the
International Development Association ("Association"), dated January 21, 2018, as amended, for the
above-referenced Project ("Project"). We also refer to letters from the Ministry of Finance dated August
3, 2021 and October 10, 2021, requesting a restructuring of the Project, which requires certain
amendments to the Agreement.
We are pleased to inform you that, after due consideration, the Association accedes to the
request and hereby proposes to amend the Agreement as follows:
1. Paragraph 4 of Section III of Schedule 2 is deleted and replaced with the following:
"4. Notwithstanding the provision of paragraphs 2(b) and 3 above, in the event that the
Association is not satisfied that any or various DLR(s) set forth in Schedule 3 to this Agreement
has/have been achieved by the end of the DLR period provided for such DLR in such Schedule,
then the Association may, at any time, by notice to the Recipient, decide, in its sole discretion,
to:
(a) authorize the withdrawal of such lesser amount of the respective Allocated Amount(s)
allocated to said DLR(s) which, in the opinion of the Association, corresponds to the
extent of the achievement of said DLR;
(b) withhold all or a portion of the Allocated Amount(s) allocated to said DLR(s) until such
DLR(s) has/have satisfactorily met;
(c) reallocate all or a portion of the Allocated Amount(s) corresponding to
such unmet DLR(s) to any other DLR(s) and or disbursement categories; and/or
(d) cancel all or a portion of the Allocated Amount(s) corresponding to said DLR(s).
2. Schedule 2, Section III, paragraph 5 is amended to read as follows:
"5. The Closing Date is July 16, 2023."
Mr. Madhu Kumar Marasini -2- December 9, 2021
3. Schedule 3 to the Agreement is hereby deleted and replaced in its entirety as set forth in the
Attachment to this letter.
4. Section I of the Appendix to the Agreement is amended by adding the following definitions in
alphabetical order and renumbering the remaining definitions accordingly:
"Round 3" means the third cohort of youth selected to receive short-term training under the
Project."
"Round 4" means the fourth cohort of youth selected to receive short-term training under the
Project"
"Round 5" means the fifth cohort of youth selected to receive short-term training under the
Project"
"Year 5' means the fifth year of implementation of Project activities, expected to take place in
Fiscal Year 2021/2022 including the period up to July 16, 2023, in order to achieve the results
shown in the sixth column of the table in Schedule 3 of this Agreement."
Except as specifically amended in this letter of amendment, all other provisions of the Financing
Agreement shall remain unchanged and in full force and effect.
The Association will disclose this letter of amendment and related information in accordance with
the World Bank's Policy on Access to Information. By entering into this letter of amendment, the Recipient
consents to such disclosure.
Please confirm your agreement to the foregoing on behalf of the Recipient by countersigning and
dating the corresponding form of confirmation set forth below and returning one fully countersigned
original of this letter of amendment to us. The above amendment to the Agreement shall become effective:
(a) retroactively as of July 16, 2019 in relation to paragraphs 3 and 4 of this letter upon receipt by the
Association of a copy of this letter of amendment duly countersigned by the authorized representative of
the Recipient ; and (b) as of the date of countersignature in relation to paragraphs 1 and 2, upon receipt by
the Association of a copy of this letter of amendment duly countersigned by the authorized representative
of the Recipient.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
F ris H. -Zervos
Country Director
for Maldives, Nepal, and Sri Lanka
AGREED
NEPAL
By:
Name: AQ', pr
Title: c 47a q
Date: - ece.4ew- 262.4
Mr. Madhu Kumar Marasini -3- December 9, 2021
Attachment
SCHEDULE 3
Disbursement Linked Indicators
Disbursement-Linked Results (DLRs)
DLI/Results (Years of achievement of the DLRs are indicative*)
Area Target Values Target Values Target Values Target Values Target Values for E
for Year 1 (July for Year 2 (July for Year 3 (July for Year 4 (July Year 5 (July 16, nd of Project
15, 2018) 15, 2019) 15, 2020) 15, 2021) 2023) Target
DLR .1. DLR 1.4 DLR 1.5 DLR 1.6
PIC has endorsed PS has disbursed PS has disbursed PS has disbursed 4th
the Quality 2nd installment of 3rd installment of installment of
Assurance (QA) performance- performance- performance-based 60 supported
Manual for TSLC based quality based quality quality TsLC/iploma
and/or Diploma improvement improvement improvement grants receive grant
offering grants to 60 grants to 60 to 60 supported funds based on
DLI I: institutions supported TSLC supported TSLC TSLC and/or funds basedto
Strengthene prepared by PS and/or Diploma and/or Diploma Diploma offering quality targets
d quality offering offering institutions on
and institutions on institutions on account of quality
relevance of DLR 1.2 account of quality account of quality targets achieved
technical PS has signed targets achieved targets achieved
education MOUs with 60 DLR 1.7
TSLC and/or 60 TSLC/Diploma
Diploma offering schools receive ICT
institutions for grant
receiving
performance-
based quality
improvement
grants
DLR 1.I DLR 1.4 DLR 1.5 DLR1.6
355,555 upon 416,770 for 10 416,770 for 10 208,389.25 for 10
achievement of institutions, and institutions, and institutions, and
the target thereafter, 41,678 thereafter, 41,678 thereafter,
per additional per additional 20,838.93 per 8,177,500
Allocated institution institution additional
Amounts and DLR 1.2 institution
Fia n 159,884 for the
first 30 DLR 1.7:
Formula per institutions and, 208,389.25 for 10
SDR) thereafter, 5,335 institutions, and
per additional thereafter,
institution 20,838.93 per
additional
institution
DLR 2.1. DLR 2.3. DLR 2.6. DLR 2.9. DLR 2.12.
40 heads of TSLC 40 heads of TSLC 82 heads of TSLC 100 additional 138 additional 400 heads of
and/or Diploma and/or Diploma and/or Diploma heads of TSLC heads of TSLC TSLC/Diploma
DLI 2: offering offering offering and/or Diploma and/or Diploma institutions
Improved institutions have institutions have institutions have offering offering institutions complete
service completed the completed the completed the institutions have have completed the leadership and
delivery and leadership and leadership and leadership and completed the leadership and management
modernizing management management management leadership and management training in QA;
curricula in training program training program training program management training program
technical over and above over and above training program (Cumulative 400)
education those in Year 1; those in Years I
and 2);
DLR2.7. DLR 2.13.
Mr. Madhu Kumar Marasini -4- December 9, 2021
Disbursement-Linked Results (DLRs)
DLI/Results (Years of achievement of the DLRs are indicative*)
Area Target Values Target Values Target Values Target Values Target Values for End of Project
for Year 1 (July for Year 2 (July for Year 3 (July for Year 4 (July Year 5 (July 16, E oret
15,2018) 15,2019) 15,2020) 15,2021) 2023) Target
DLR 2.2. DLR 2.4. 440 TVET DLR 2.10. 365 additional 1660 TVET
110 TVET 405 TVET instructors and/or 340 additional TVET instructors instructors/
instructors and/or instructors and/or assessors have TVET instructors and/or assessors assessors with
assessors have assessors have completed and/or assessors have completed enhanced
completed completed training program have completed training programs professional
training programs training programs for enhanced training programs for enhanced competencies
for enhanced for enhanced professional for enhanced professional
professional professional competencies over professional competencies
competencies competencies over and above those in competencies (cumulative 1660)
and above those in Years I and 2
Year 1
DLR 2.8.
DLR 2.5. CTEVT has DLR 2.11. DLR 2.14.
CTEVT has revised/developed CTEVT has CTEVT has 40
revised/developed the curricula for revised/developed revised/developed TSLC/Diploma
the curricula for 10 additional the curricula for the curricula for 10 curricula
10 TSLC/Diploma, 10 additional TSLC/Diploma, revised/develope
TSLC/Diploma, apprenticeship TSLC/Diploma, apprenticeship d with industry
apprenticeship and/or short-term apprenticeship and/or short-term participation to
and/or short-term training courses and/or short-term training courses reflect employer
training courses, with industry training courses with industry requirements
with industry participation to with industry participation to
participation to reflect employer participation to reflect employer
reflect employer requirements reflect employer requirements
requirements requirements (cumulative 40)
DLR 2.1 DLR 2.3 DLR 2.6 DLR 2.9 DLR 2.12
88,803 142,070 142,070 for 40 94,313 94,313
for 20 heads of for 40 heads of heads of for 40 heads of for 40 heads of
institutions, and institutions institutions, and institutions, and institutions, and
thereafter, 4440 thereafter, 3,552 thereafter, 2,357.5 thereafter, 2,357.5
per additional per additional per additional per additional head
head of institution head of institution head of institution of institution
DLR 2.2 DLR 2.7 DLR2.10
106,555 for 60 DLR 2.4 213,120 for 240 110,557.5 for 180 DLR 2.13
Allocated instructors and/ or 213,120 for 240 instructors and/or instructors and/ or 110,557.5 for 180
Amounts and assessors, and instructors and/ or assessors, and assessors, and instructors and/ or
Financing thereafter, 1,776 assessors, and thereafter, 710 per thereafter, 615 per assessors, and
Formula per per additional thereafter, 710 per additional additional thereafter, 615 per 5,333,333
oDLR (in instructor and/or additional instructor and/or instructor and/or additional instructor
SDR) I assessor instructor and/or assessor assessor and/or assessor
assessor
DLR 2.8 DLR 2.11 DLR 2.14
DLR 2.5 71,181.5 for each
356,000 for 5 curriculum 71,181.5 for each 71,181.5 for each
curricula revised/developed curriculum curriculum
revised/developed revised/developed revised/developed
, and thereafter,
71,163 per
additional
curricula
revised/developed
DLR 3.1. DLR 3.2. DLR 3.3. DLR 3.4. 6,000
DLI3: Pro- 488TSLC/Diplom 1539 2,000 additional 1,973 additional scholarships for
a students have TSLC/Diploma TSLC/Diploma TSLC/Diploma TSLC/Diploma
pors been selected students have students have students have students selected
s r for/awarded Pro- been selected been selected been selected using a PMT
Mr. Madhu Kumar Marasini -5- December 9, 2021
Disbursement-Linked Results (DLRs)
DLI/Results (Years of achievement of the DLRs are indicative*)
Area Target Values Target Values Target Values Target Values Target Values for End of Project
for Year 1 (July for Year 2 (July for Year 3 (July for Year 4 (July Year 5 (July 16, Target
15,2018) 15,2019) 15, 2020) 15,2021) 2023
using a PMT poor Scholarships poor Scholarship poor Scholarships
method using a PMT using a PMT using a PMT
method, over and method method
above those (Cumulative
selected/awarded 6,000)
in Yearl
DLR 3.1 DLR 3.2. DLR 3.3. DLR 3.4.
Allocated 178,020 for 250 356,040 for 1,000 358,175.5 for
Amountsn Pro-poor Pro-poor 1,000 Pro-poor 180,675.5 for 500
Fancing Scholarships, and Scholarships, and Scholarships, and Pro-poor
Formula per thrar, 11 thereafter, 355 per thereafter, 355 per Scholarships, and 2,311,389
DLRthereafter, 711 per additional additional thereafter, 355 per
SDR) scholarship scholarship scholarship additional
scholarship
DLI 4: Share
offemale and
disadvantage
dyouth
completing DLR 4.1. DLR 4.2. DLR 4.3. DLR 4.4. DLR 4.5.
market 50% in Year 1 55% in Year 2 60% in Round 3 65% in Round 4 65% in Round 5
relevant
short-term
training
DLR 4.1 DLR 4.2 DLR 4.3 DLR 4.4
Allocated 355,350 upon 533,000 upon 710,700 upon 889,600 upon DLR4.5
Amounts and achievement of achievement of achievement of achievement of 889,656 upon
Financing 25%, and the target of 30%, 35%, and 40%, and achievement of
Formula per thereafter, 14,240 and thereafter, thereafter, 28,430 thereafter, 35,550 0%, and thereafter, 6,755,556
DLR(in SDR) for each 21,320 for each for each for each 35,550 for each
percentage point percentage point percentage point percentage point percentage point
increase increase increase increase increase
DLI5: DLR 5.1 DLR 5.2. DLR 5.3. DLR5.4.
Percentage of 65% in Year 2 65% in Year 3 70% in 70% in Round 4
trainees Round 3
employed/self
-employed
within 3-6
months of
completion of
short-term
train in
DLR 5.1 DLR 5.2 DLR 5.3 DLR 5.4
Allocated 887,800 upon 1,068,500 upon 1,834,100 upon 1,834,106 upon
Amounts and achievement of achievement of achievement of achievement of the
Financing the target of 50%, the target of 50%, the target of 45%, target of 45%, and 8,355,556
Formula per and thereafter, and thereafter, and thereafter, thereafter, 12,000
DLR (in 71,035 for each 71,035 for each 12,000 for each for each percentage
SDR) percentage point percentage point percentage point point increase
increase increase increase
Mr. Madhu Kumar Marasini -6- December 9, 2021
Disbursement-Linked Results (DLRs)
DLI/Results (Years of achievement of the DLRs are indicative*)
Area Target Values Target Values Target Values Target Values Target Values for End of Project
for Year 1 (July for Year 2 (July for Year 3 (July for Year 4 (July Year 5 (July 16, E oret
15,2018) 15,2019) 15,2020) 15,2021) 2023) Target
DLR 6.1. DLR 6.2. DLR 6.3. DLR6.4. DLR 6.5.
6,000 youth, 5,912 youth, 6,000 additional 6,000 additional 6,088 additional 30,000 youth,
including including youth, including youth, including youth, including including
migrants, have migrants, have migrants, have migrants, have migrants, have migrants,
DLI 6: completed the completed the completed the completed the completed the complete NSTB
Testing of NSTB skills tests NSTB skills tests, NSTB skills tests NSTB skills tests NSTB skills tests skills test
Prior Skills over and above (cumulative 30,000)
those completing
them in Year 1
Allocated DLR 6.1 DLR 6.2 DLR 6.3 DLR 6.4 DLR 6.5
Amounts and 285,110 for 3,000 285,110 for 3,000 285,110 for 3,000 40,110 for 500 41,875 for 500
Financing youth, and youth, and youth, and 40,110 for 500t4, for 500
Formula per thereafter, 142 per thereafter, 142 per thereafter, 142 per youth, and youth, and 35 5
DLR (in SDR) additional youth additional youth additional youth thereafter, 122 per thereafter, 122 per
additional youth Iadditional youth
DLR 7.1. DLR 7.3. DLR 7.5. DLR 7.7.
PS has prepared 500 trainees have 500 additional 500 additional
and adopted the successfully trainees have trainees have
Operational completed successfully successfully 1,500 supported
Manual for the Project-supported completed completed Project- successfully
apprenticeship apprenticeship Project-supported supported complete
programs programs apprenticeship apprenticeship copete
programs programs apprenticeship
DLI 7: (cumulative 1,500) programs
Apprenticesh
ip Programs
DLR 7.2. DLR 7.4. DLR 7.6. DLR 7.8. 3,000 youth
500 youth 500 additional 1,000 additional 1,000 youth have receive job
received job youth have youth have received job placement
placement received job received job placement assistance
assistance through placement placement assistance through through HR
HR Service assistance through assistance through HR Service services
Providers. HR Service HR Service Providers
Providers Providers Icumulative 3,000)
355,554 upon DLR 7.3 DLR 7.5 DLR 7.7
achievement of 355,554 355,554 355,591 for 250
DLR target for 250 trainees, for 250 trainees, trainees, and
Allocated and thereafter, and thereafter, thereafter, 1,423 per
Amounts and 1,423 per 1,423 per additional trainee
Financing additional trainee, additional trainee
Formula per 3,911,111
DL R (in
SDR) DLR 7.2 DLR 7.4 DLR 7.6 DLR 7.8
177,777 for 250 177,777 for 250 177,777 for 500 177,777 for 500
youth, and youth, and youth, and youth, and
ythef, 71d pe thereafter, 711 per thereafter, 355 per thereafter, 355 per
thadtna o11the additional youth additional youth additional youth
TotalARA 00
* Unless expressly stated otherwise in this Schedule, these DLRs are not time-bound, the Years in which they are
expected to be achieved as per this Schedule are for indicative purposes and these DLRs can accordingly be met up
and until the Closing Date.