$ Report No: RES00794 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE GUYANA EDUCATION SECTOR IMPROVEMENT PROJECT APPROVED ON APRIL 28, 2017 TO THE CO-OPERATIVE REPUBLIC OF GUYANA March 5, 2025 Education Latin America and Caribbean Regional Vice President: Carlos Felipe Jaramillo Regional Director: Jaime Saavedra Country Director: Lilia Burunciuc Practice Manager: Andreas Blom Task Team Leaders: Vincent Perrot, Lauren Justine Marston, Denise Felicia Elida Stolt The World Bank Guyana Education Sector Improvement Project (P159519) ABBREVIATIONS AND ACRONYMS E&S Environmental and Social FM Financial Management GoG Government of Guyana IRI Intermediate Results Indicator MoE Ministry of Education PDO Project Development Objective PDOI PDO-level Indicator UG University of Guyana UG-FHS University of Guyana-Faculty of Health Sciences The World Bank Guyana Education Sector Improvement Project (P159519) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P159519 Guyana Education Sector Improvement Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Guyana Approval Date Current Closing Date 28-Apr-2017 30-Apr-2025 Original EA Category Partial Assessment (B) (PAD Approval Package-28 Apr 2017) Organizations Borrower Responsible Agency Co-operative Republic of Guyana Ministry of Education @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Current Development Objective The objectives of the Project are to: (i) improve teaching practices and implement curricular reform at the primary level at selected schools; and (ii) strengthen the teaching capacity and improve the learning environment of the University of Guyana Faculty of Health Science. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 i The World Bank Guyana Education Sector Improvement Project (P159519) IDA 13.18 11.18 2.25 83.24 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Guyana Education Sector Improvement Project (P159519) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2 III. PROPOSED CHANGES ................................................................................................................................................3 IV. DETAILED CHANGE(S) ...............................................................................................................................................4 The World Bank Guyana Education Sector Improvement Project (P159519) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Restructuring Paper seeks the approval of the Country Director for a Level Two Restructuring of the Guyana Education Sector Improvement Project (GESIP, P159519). This is the Project's second restructuring, financed by the International Development Association (IDA). The World Bank supports the Ministry of Education (MoE) in developing, implementing, and monitoring the Project, providing fiduciary and technical oversight and support throughout its duration. The restructuring proposes to (i) process a partial cancellation due to cost savings and (ii) revise disbursement and implementation schedules accordingly. 2. An official request was received from the Government of Guyana (GoG), dated March 3, 2025, to proceed with the adjustment and cancel SDR$1.7 million, or approximately US$2.25 million in Credit funds. A. Project Status 3. The Project was approved by the World Bank’s Board of Executive Directors on April 28, 2017, and is scheduled to close on April 30, 2025. As of February 20, 2025, the Project has disbursed 83 percent of the total Credit amount of US$13.33 million, with US$2.25 million remaining undisbursed and remaining committed funds pending allocation. The Project Development Objective (PDO) aims to (i) enhance teaching practices and implement curricular reform at the primary level at selected schools; and (ii) strengthen the teaching capacity and improve the learning environment of the University of Guyana (UG) Faculty of Health Science (FHS). The Project consists of three components: (i) Integrated Curriculum Reform; (ii) Strengthening the Teaching Capacity and Improving the Learning Environment for the UG-FHS; and (iii) Project Implementation Support. The Project complies with all relevant legal covenants. 4. Progress towards the PDO and Overall Implementation Progress were rated Moderately Satisfactory in the latest Implementation Status and Results Report, dated February 21, 2025. Significant achievement has been made across the PDO indicators. PDO-level indicator (PDOI) 1 has been achieved with the completion of the curriculum rollout in the pilot schools for grades 1-4. The final impact evaluation report, expected before the closing of the Project, will provide more details on the achievement of PDOI 2. In the last 6 months, there has been continued progress for Component 2, with the construction for the UG-FHS continuing according to schedule, and PDOI 3 is also on track to be achieved. Activities under Components 1 and 2 continue to be on track to achieve the PDO. Despite the positive implementation progress across components, limited time remains, and there may be delays in the completion of UG- FHS, particularly regarding the delivery and installation of lab equipment and furniture. The construction of the building and installation and training for most of the equipment are expected to be completed prior to closing. Progress by Component 5. Component 1: Integrated Curriculum Reform (US$5.36 million). The renewed curriculum for Nursery 1-2 and Grades 1-9 has been completed. Despite piloting the national curriculum for Grades 5 and 6 being postponed by the MoE, the new curriculum has been scaled nationally for grades 1-4, surpassing the end targets for teachers trained. The impact evaluation remains in progress, but final results are expected in the coming weeks and will be reported in the Implementation Completion and Results Report. The national assessment for Grade 2 was indefinitely cancelled, but the Project financed the software GradeMaker, which is being used by the National Centre for Educational Resource Development (NCERD) to create diagnostic exams. All teaching and learning materials have been procured and distributed, including utilization and maintenance plans, where appropriate. 6. Component 2: Strengthening the Teaching Capacity and Improving the Learning Environment for the UG-FHS Page 1 The World Bank Guyana Education Sector Improvement Project (P159519) (US$6.91 million). The final target for strengthening the capacity of lecturers and establishing a student performance assessment system for the UG FHS has been exceeded, with the final report on the integrated examination conducted with Examsoft software pending. Construction of the UG-FHS building, which began in November 2023, is progressing as planned and is expected to be completed by the Project's closing date on April 30, 2025. The bidding process for lab equipment and furniture has resulted in signed contracts, with most expected to be delivered and installed on time, although there is a slight risk of some items arriving post-closing. Any outstanding deliverables arriving after April 30 will need to be financed by the Government of Guyana, with any advances reimbursed to the World Bank. 7. Component 3: Project Implementation Support (US$ 1.06 million). There have been marked improvements with the completion of the outstanding semi-annual reports and updated results frameworks. These efforts have led to an upgrade in the performance rating for this Component from Moderately Satisfactory to Satisfactory. 8. Financial Management (FM). Overall, adequate FM arrangements are in place and in compliance with the Bank’s requirements, as confirmed during the 2024 implementation support mission. The Project complies with FM covenants, including those related to audits and reporting requirements. There are no outstanding audit reports, and FM performance is satisfactory. 9. Environmental and Social (E&S). The proposed changes will not lead to new E&S risks; therefore, there is no change to the risk classification or update to the Project’s E&S instruments. B. Rationale for Restructuring 10. The proposed restructuring aims to facilitate a partial cancellation amounting to SDR$1.7 million (approximately US$2.25 million) to ensure full disbursement of Project funds. The Project has realized savings in this amount from the construction of UG-FHS (Component 2) and the GoG’s decision not to implement the curriculum for Grades 5 and 6, given that these years are dedicated to preparation for the National Grade Six Examination (Component 1). Given the limited time left before closure, using these additional funds within this Project is no longer feasible. Consequently, the unallocated amount under GESIP will be cancelled (SDR$1.7 million), after reallocating SDR$86,415.36 to account for an overdraw on spending under Category 3. 11. Despite this cancellation, the Project’s activities and PDO remain relevant and closely aligned with government priorities, and the PDO is expected to be achieved by the closing date. Despite the revised curriculum for Grades 5 and 6 not being implemented during the Project's duration, the target for number of schools implementing the new curriculum was surpassed, given the decision to scale up the revised curriculum for Grades 1-4 nationally. Further, the core curricula for Nursery 1-2 and Grades 1-9 were revised (Intermediate Results Indicator, IRI, 2) and teachers trained (IRI4). Activities under Component 1 were also expanded nationwide, significantly exceeding the original end targets. Additionally, the UG- FHS is expected to be completed by the closing date, although some lab equipment and furniture may be missing due to procurement delays. II. DESCRIPTION OF PROPOSED CHANGES 12. Adjustment of Loan Amount. A partial cancellation will be processed in the amount of SDR$1.7 million (approximately US$2.25 million) from the IDA balance under Categories 1 and 2, corresponding to Components 1 (Integrated Curriculum Reform) and 2 (Strengthening the Teaching Capacity and Improving the Learning Environment for the UG-FHS), as detailed below: Page 2 The World Bank Guyana Education Sector Improvement Project (P159519) Table 1: Summary of current and future allocations based on proposed cancellations (as of 3/3/2025) [SDR] Current Cancellation Future IDA 60090-GY Allocation proposed Allocation (XDR) (XDR) (XDR) (1) Goods, non-consulting services, consulting services and Training 3,980,000.00 (1,186,415.36) 2,793,584.64 for Part 1 of the Project. (2) Goods, works, non-consulting services, consulting services 5,130,000.00 (600,000.00) 4,530,000.00 and Training for Part 2 of the Project. (3) Goods, non-consulting services, consulting services, Training 790,000.00 86,415.36 876,415.36 and Operating Costs for Part 3 of the Project. Total 9,900,000.00 1,700,000.00 8,200,000.00 13. Revision of Disbursement Estimates. Considering the partial cancellation, disbursement estimates will be revised to reflect disbursement to date and projections for the revised implementation period. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Disbursements Estimates Yes Loan Cancellations Yes Development Objective No Reallocations Yes Safeguard Policies Triggered No Loan Closing Date Extension No ISDS No Financial Management No MFD/PCE No Procurement No Results No Institutional Arrangement No Risks No Implementation Schedule No Legal Covenants No Conditions No Implementation Modalities No Page 3 The World Bank Guyana Education Sector Improvement Project (P159519) Disbursements Arrangements No DDO No Additional Regional No Institutions Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Cancellations Reason Value Loan/Credit/ Current Cancellation New for Status Currency Date of Trust Fund Amount Amount Amount Cancellati Cancellation on LOAN Disbursi RESTRUCT IDA-60090- ng&Rep XDR 9,900,000.00 1,690,293.32 03-Mar-2025 8,209,706.68 URING, 001 aying COST SAVINGS Reallocations IDA-60090-001 Cancellations (if any): New Allocation: Currency: XDR 1,690,293.32 8,209,706.68 Category Expenditure Current Actuals + Proposed Financing % No. Category Allocation Committed Allocation (Type Total) Page 4 The World Bank Guyana Education Sector Improvement Project (P159519) Current Proposed 1 GO,NCS,CS & TR Part 3,980,000.00 2,714,729.32 2,803,291.32 100.00 100.00 1; 2 GO,CW,NCS,CS & TR - 5,130,000.00 2,212,270.05 4,530,000.00 100.00 100.00 Part 2; 3 GO,NCS,CS,TR & OP - 790,000.00 818,805.84 876,415.36 100.00 100.00 Part 3; Total 9,900,000.00 8,209,706.68 DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Implementation Start Date Operation Closing Date 28-Apr-2017 30-Apr-2025 Projected Date for Full Disbursement 30-Apr-2025 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 28 Apr 2017) FY2017 0.00 0.00 0.00 FY2018 658,828.83 1,163,341.00 1,163,341.00 FY2019 1,062,285.69 360,346.15 360,346.15 FY2020 1,923,999.87 3,984,827.49 3,984,827.49 FY2021 3,223,999.77 984,652.24 984,652.24 FY2022 3,030,856.92 0.00 0.00 FY2023 0.00 2,402,979.91 2,402,979.91 FY2024 0.00 2,029,708.35 2,029,708.35 FY2025 0.00 2,401,029.86 249,321.80 Page 5