REPORT NO.: RES58183 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DR CONGO - QUALITY AND RELEVANCE OF SECONDARY AND TERTIARY EDUCATION PROJECT APPROVED ON MAY 26, 2015 TO DEMOCRATIC REPUBLIC OF CONGO EDUCATION GLOBAL PRACTICE EASTERN AND SOUTHERN AFRICA REGION Regional Vice President: Victoria Kwakwa Country Director: Albert G. Zeufack Regional Director: Daniel Dulitzky Practice Manager/Manager: Meskerem Mulatu Task Team Leaders: Leonce Kazumba, Hamoud Abdel Wedoud Kamil The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) ABBREVIATIONS AND ACRONYMS CERC Contingent Emergency Response Component DRC Democratic Republic of Congo EVD Ebola Virus Disease IDA International Development Association MEPST Ministry of Primary, Secondary, and Technical Education (Ministère de l’Enseignement Primaire, Secondaire et Technique) PDO Project Development Objective PEQPESU Quality and Relevance of Secondary and Tertiary Education Project (Projet d’Education pour la Qualité et la Pertinence des Enseignements aux niveaux Secondaires et Universitaires) TVET Technical and Vocational Education and Training 2 The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) BASIC DATA Product Information Project ID Financing Instrument P149233 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-May-2015 30-Jun-2024 Organizations Borrower Responsible Agency DEMOCRATIC REPUBLIC OF CONGO,Ministry of Finance and Budget Project Development Objective (PDO) Original PDO The objectives of the project are to: (i) improve the teaching and learning of Mathematics and Science in general secondary education, and (ii) enhance relevance of technical and vocational education and training (TVET) in priority sectors at secondary and tertiary levels. Current PDO To (i) improve the teaching and learning of mathematics and science in general secondary education (ii) enhance the relevance of TVET in priority sectors at secondary and tertiary education levels and (iii) to provide a response in the case of an Eligible Crisis or Emergency. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-56550 26-May-2015 09-Jul-2015 14-Sep-2016 30-Jun-2024 107.84 109.37 .06 IDA-D0670 26-May-2015 09-Jul-2015 14-Sep-2016 30-Jun-2024 58.22 58.89 .21 3 The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Restructuring Paper seeks approval for a Level Two restructuring of the Quality and Relevance of Secondary and Tertiary Education Project (PEQPESU or the Project) (P149233), financed through Credit No. 5655-ZR and Grant No. D067-ZR. The World Bank has received a request from the Government of the Democratic Republic of Congo (DR Congo) (the Recipient) to extend the closing date of the Project by four months to allow an orderly closing of the remaining activities consisting of rehabilitation and construction works. This activity falls with the DR Congo’s most pressing priorities in post-primary education with sector priorities as defined in the 2016 – 2025 Sector Strategy for Education and Training. A. Project Background and Rationale for Restructuring 2. The Project was approved on May 26, 2015, became effective on September 14, 2016, and is due to close on June 30, 2024. It was designed as the first phase of a broader effort to support the Recipient in addressing supply-side challenges in post-primary education. 3. The Project Development Objectives (PDOs) are to: (i) improve the teaching and learning of mathematics and science in general secondary education, (ii) enhance relevance of technical and vocational education and training (TVET) in priority sectors at secondary and tertiary levels, and (iii) provide a response in the case of an Eligible Crisis or Emergency. Despite facing severe challenges which caused implementation delays—including an Ebola Virus Disease (EVD) epidemic, the Coronavirus Disease (COVID-19) pandemic, and institutional changes within Government—the Project has made steady progress toward achieving its objectives and thus, is succeeding in advancing the DR Congo’s overarching goal of improving the quality of post-primary education. In particular, it has supported the quality of general secondary education through curricular improvements for teacher training and student learning in mathematics and science; provided materials and infrastructure upgrades to enhance secondary teaching and learning conditions. It has also improved alignment of the Recipient’s TVET with labor market demand and increased its relevance in priority sectors of the economy by establishing new operating frameworks for secondary and tertiary TVET, curricular improvements and training programs for new teachers and students. Additionally, it has provided support to the Recipient’s emergency response efforts with respect to the EVD epidemic in 2019-2020 through an emergency cash-for-work program. 4. While the Project has made progress toward achieving its development objectives, it has been restructured five times since coming into effect to keep it closely aligned with the evolving country context, several exogenous factors and sector priorities. The first restructuring in December 2019 scaled up a successful pilot operation carried out in Ebola hotspots to sustain the resilience of local communities in the face of the 2019 EVD epidemic. This first restructuring adjusted the PDO and added a Contingent Emergency Response Component (CERC, Component 4), reallocating US$50 million of Project funds toward the EVD epidemic emergency response. It also considered recommendations from the Project’s mid-term review, in particular, (i) scaling up the well-performing Component 1. Improve the teaching and learning of mathematics and science in general secondary education to reach additional secondary schools and scaling down Component 2. Enhance the Relevance of TVET in priority sectors at secondary and tertiary education levels, which had experienced prolonged delays and implementation challenges, (ii) reducing the number of TVET beneficiary schools and streamlining the Project’s activities. The second restructuring in July 2021 reduced the scale of the CERC component to 4 The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) reflect the end of the EVD epidemic1. It also made adjustments to the Project given COVID-19 impacts, which delayed implementation of Component 4 activities, through the cancellation of US$27 million unlikely to be spent by the Project closing. The third restructuring in December 2021 extended the closing date by three months to allow for (i) an orderly closing of existing Project activities, and (ii) the finalization and disclosure of all Environmental and Social safeguards documents pertaining to the fourth restructuring in March 2022. By the end of the third restructuring, the Project had successfully implemented all originally envisioned activities. 5. The fourth restructuring in March 2022 was a response to government’s request to: (i) expand the Project scope to allow for the use of unspent Project funds in the amount of US$20 million equivalent, and (ii) extend the closing date by 20 months from March 31, 2022 to November 30, 2023 to address a pressing need in secondary education to support the rehabilitation of the Kananga School Compound (Complexe scolaire de Kananga) in Kasaï Central province. As a result, the scope of Component 1 was expanded by adding a new Sub-component 1.3: Supporting the Rehabilitation and Construction of the Kananga School Compound (Complexe scolaire de Kananga—ARK) in Kasaï Central province, which was to support the rehabilitation of the Kananga School Compound. The ARK was erected in the 1950s and is the reference school of the province of Kasai Central regrouping secondary schools as well as primary schools. The school housed 18,500 students before the rehabilitation started and it is forecasted that there will be an influx of students once the rehabilitation will be completed, estimated at over 20,000 students. As a result, the rehabilitation and construction were expected to provide: (i) the level of classroom capacity required for the large student population; and (ii) a school environment conducive to improved teaching and learning of mathematics and science in general secondary education, including provision of sufficient pedagogical materials and functioning laboratories with appropriate equipment. 6. The fifth restructuring extended the project closing date by seven months for the completion of activities under Sub-component 1.3: Supporting the Rehabilitation and Construction of the Kananga School Compound (Complexe scolaire de Kananga) in Kasaï Central Province. 7. This sixth restructuring proposes to extend the project closing date by four months for the completion of four (4) remaining buildings out of the total twenty (20) buildings. The other 16 buildings were completed as part of the previous extension. The government has a time-bound implementation plan for the remaining construction and rehabilitation works needed to complete the activities within the four-month extension timeline. 86 percent of the construction and rehabilitation have been completed leaving only 14 percent of small works in 4 buildings. Moreover, the detailed implementation plan between the government and the construction firms includes: (i) doubling the number of staff on the ground, (ii) weekly follow-up meetings between the World Bank, government, and construction firm teams, (iii) hiring of an on– site engineer to monitor closely the construction works’ activities, and (iv) permanent rotational visit from between Project Implementation Unit coordinator and civil engineer specialist. B. Project Status and Implementation Progress 8. Project Status: The Project has maintained Moderately Satisfactory performance since the last Implementation Status and Results Report in March 2024. Progress Toward Achievement of the PDOs is rated Moderately Satisfactory. Five out of six PDO-level indicators have been attained or surpassed the endline target whereas one indicator has been partially achieved. The Project’s disbursement rate is 99 percent as of June 21, 2024. 9. All other Project ratings—Financial Management, Project Management, Procurement, Monitoring and Evaluation, and Overall Safeguards—are Moderately Satisfactory, and all legal covenants have been complied with. 10. Implementation progress – Sub-component 1.3: Rehabilitation and new construction to support the upgrading of the teaching and learning conditions in the Kananga School Compound (Complex scolaire de Kananga - ARK) in Kasaï Central province. The construction and rehabilitation work under this Sub-component is ongoing with some delays. New 1The EVD epidemic was declared over on June 25, 2020. (World Health Organization: https://www.who.int/news/item/25-06-2020-10th-Ebola-outbreak-in-the- Democratic-Republic-of-the-Congo-declared-over-vigilance-against-flare-ups-and-support-for-survivors-must-continue). 5 The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) construction and rehabilitation activities are slightly behind schedule since the last restructuring caused by difficulties in acquiring imported materials which led to shortages of construction materials. As of June 21, 2024, overall completion of civil works is at 86 percent with the remaining 14 percent pertaining to small works in four (4) buildings. II. DESCRIPTION OF PROPOSED CHANGES A. Proposed Changes 11. Extension of closing date. The Project has faced delays in completion of the construction and rehabilitation works caused by unforeseen weather conditions, unusual heavy rains leading to impracticable roads, which led to the scarcity of imported construction materials. The school compound has 20 buildings with 16 completed with provisional reception done, and 4 remaining with small works to be completed. To deliver the Kananga School Compound (ARK) with desired technical and operational quality and compliance, the restructuring proposes to extend the closing date for the Project from June 30, 2024, to October 31, 2024. The proposed extension would cover the two active grants and credit lines (Credit No. 5655-ZR and Grant No. D067-ZR). This extension will allow for timely completion of the remaining unfinished activities under Sub-component 1.3. All the activities in other components and sub-components were completed and closed in December 2021. B. Fiduciary (Financial Management and Procurement) 12. Financial Management (FM). The Permanent Secretary of MEPST will continue to be responsible for managing the Project Designated Account for the restructured Project. The Project financial management team remains comprised of one Financial Management Specialist (former accountant playing that interim role), one Accountant and one Cashier. Existing financial management arrangements pertinent to budget monitoring, the use of accounting software, the internal audit function, disbursement modalities and external audit remain unchanged. An amendment of the external audit contract should be done to update the FY 2024 audit period. To date, the project has no outstanding audits and all interim financial reports (IFRs) are up to date. 13. Procurement. The main procurement activities are still at the stage of contract implementation, despite the progress achieved this time. Remaining activities including Works in progress and Goods to be used for school infrastructure will continue within the extended period under the responsibility of the MEPST, which needs continuing to benefit from a dedicated support of fiduciary staff. Consequently, remaining activities will also continue to be supported by an experienced procurement specialist to bring all ongoing contracts to a successful completion. Existing arrangements to mitigate procurement risks (such as regular training, supervision missions and support from the Bank team) will also remain in place. C. Environmental and Social Safeguards 14. Environmental and Social: The existing Environmental and Social Management Framework (ESMF) and grievance mechanism will remain unchanged during the extension and will prepare beneficiaries and community members to use the toll-free "Allo Ecole" number. Before the closing date, the Project will have to ensure that run-off water is properly drained in the schoolyard. In addition, to ensure a safe and healthy environment in the care center and laboratory built into the school, the Project will adopt, as part of the school's internal operations manual, (i) medical, fire, emergency and other procedural instructions; (ii) a code of conduct for the student laboratory and guidelines for chemical laboratory safety; (iii) principles and guidelines for the school's care center and protocols for waste management (waste, including infectious biological waste); (iv) the Resource Center and the educational authorities must closely monitor the management of student flows in and around the complex to reduce any social risks (GBV, accidents, etc.); and (v) the MGP committee must continue to manage complaints and suggestions to ensure the sustainability of the project's works even after project closing date. 6 The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE 7 The World Bank DR Congo - Quality and Relevance of Secondary and Tertiary Education Project (P149233) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Mar-2022, 30- IDA-56550 Effective 31-Dec-2021 Nov-2023, 30-Jun- 31-Oct-2024 28-Feb-2025 2024 31-Mar-2022, 30- IDA-D0670 Effective 31-Dec-2021 Nov-2023, 30-Jun- 31-Oct-2024 28-Feb-2025 2024 . 8