$ Report No: RES00489 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Expanding Opportunities for Learning APPROVED ON 30-Sep-2019 TO Republic of Djibouti Education Middle East And North Africa Regional Vice President: Ousmane Dione Regional Director: Fadia M. Saadah Country Director: Stephane Guimbert Practice Manager: Fadila Caillaud Task Team Leader(s): Ryoko Tomita, Abdo Said Abdo The World Bank Expanding Opportunities for Learning (P166059) ABBREVIATIONS AND ACRONYMS AA Administration Agreement BETF Bank Executed Trust Fund COVID 19 Coronavirus disease 2019 E&S Environmental and Social EAA Education Above All EMIS Education Management Information System ESF Environmental and Social Framework ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plans GPE Global Partnership of Education IDA International Development Agency MENFOP Ministry of National Education and Vocational Training (ministère de l’Éducation Nationale et de la Formation professionnelle) OOCS Out-of-school children PAD Project Appraisal Document PBC Performance Based Condition PRODA Djibouti Expanding Opportunities for Education Project (Project de Renforcement des Opportunités d’Apprentissage) RETF Recipient Executed Trust Fund The World Bank Expanding Opportunities for Learning (P166059) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P166059 Expanding Opportunities for Learning Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Djibouti Approval Date Current Closing Date 30-Sep-2019 30-Jun-2025 Environmental and Social Risk Classification (ESRC) Moderate Organizations Borrower Responsible Agency Republic of Djibouti Ministry of Education and Vocational Training @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The project development objective is to increase equitable access to basic education, improve teaching practices, and strengthen MENFOP's management capacity. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 i The World Bank Expanding Opportunities for Learning (P166059) IDA 15.00 10.92 4.04 72.82 Grants 14.46 11.31 3.15 78.20 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 Expanding Opportunities for Learning (P166059) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................3 III. PROPOSED CHANGES ................................................................................................................................................4 IV. DETAILED CHANGE(S) ...............................................................................................................................................5 ANNEX ............................................................................................................................................................................6 The World Bank Expanding Opportunities for Learning (P166059) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction. 1. This Restructuring Paper seeks the approval to process the transfer of funds to RETF (Grant Number TF0B6756) of the third and final installment of US$1 million – paid by the Education Above All (EAA) Qatar Foundation (Trustee TF073330) on October 4, 2024. No other changes are proposed in this restructuring. B. Project Background and Status. 2. Project summary. The Expanding Opportunities for Learning Project (PRODA) - for a total sum of $24.25 million (comprising US$10 million IDA funding, a US$5 million grant from the IDA18 Refugee and Host Communities Window (RHW), and a US$9.25 million grant from the Global Partnership for Education (GPE) -was approved by the World Bank on September 30, 2019, and became effective on February 14, 2020, with a closing date of December 15, 2024. 3. The Project Development Objective (PDO) is to increase equitable access to basic education, improve teaching practices, and strengthen the Ministry of National Education and Vocational Training (MENFOP)'s management capacity. The Project comprises four Components: Component 1: Establishing foundations for quality preschool education (US$3 million); Component 2: Expanding access to and improving retention in primary and lower secondary education (US$14.75 million); Component 3: Building capacity to support teaching and learning (US$10.05 million); and Component 4: Strengthening MENFOP’s management capacity and data systems (US$2.55 million). 4. Additional Financing: PRODA was appraised for US$28.05 million, including a US$3.8 million grant from a first partnership with the EAA Qatar Foundation, although funds could not be secured at the time. During the second year of implementation, the Project was restructured to secure the EAA grant funding of US$3.8 million, together with an Additional Financing of US$2.3 million in grant funding from the GPE, bringing the current Project envelop to US$30.35 million. 5. The EAA Administration Agreement (Trust Fund No. TF073330), signed on June 8, 2021, provided for the US$3.8 million grant to be paid in three installments. As part of the approval process, the first installment of US$1.18 million, was paid on June 30, 2021, and executed by the signing of the EAA Grant Agreement (TF0B6756) between the Government of Djibouti (GoD) and the Bank on September 15, 2021. 6. Restructuring to process the second EAA installment payment. In accordance with the Bank guidelines, a project restructuring is required to transfer the remaining installments received by TF073330 to the child Trust Funds (Recipient Executed Trust Fund (RETF) TF0B6756 and Bank Executed Trust Fund (BETF) TF0B7348). The second installment of US$2 million was paid and executed by the signing of the amendment to the EAA Grant (TF0B6756) on January 10, 2024. 7. Restructuring to extend the project closing date. The extension of the closing date from December 15, 2024, to June 30, 2025, requested by the Government of Djibouti on June 20, 2024, was approved on June 30, 2024, to capture the results for the school year 2024-25. The approved additional 6-months extension to June 30, 2025, allows adequate time for the independent verification of both enrollment and retention to be undertaken for school year 2024-2025. Page 1 The World Bank Expanding Opportunities for Learning (P166059) 8. As a result of the second restructuring, GPE TF0B1108 and TF0B6054, IDA Credit Number 6449-DJ and GPE Grant Number D485-DJ were extended until June 30, 2025. The EAA Grant (TF0B6756) was initially extended to September 30, 2024 (by reducing the grace period to one month), while an agreement with the EAA was pending for signature. This agreement was confirmed by the signing of the amendment to the Administration Agreement between the EAA and the World Bank on July 10, 2024, which extended the end of the disbursement date to December 30, 2025. Based on the signed amendment, the extension of the closing date of the EAA Grant (TF0B6756) to June 30, 2025, was approved on October 1, 2024. 9. Third and final EAA installment: The Bank received the third and final installment payment of US$1 million on October 4, 2024, thus completing the total grant allocation of US$3.8 million. The transfer of the amount received to RETF TF0B6756 will be processed under the proposed restructuring. The current RETF TF0B6756 allocation will be amended to show the total grant allocation US$3.8 million, as detailed in the chart below. The remaining balance after the transfer to RETF TF0B6756 will be allocated to BETF TF0B7348. Current RETF TF0B6756 allocation US$2,909,486.00 With the payment of the third tranche, the amount transferred to complete the total RETF TF0B6756 grant allocation of US$3.8M, as referenced on the right side, will be: US$890,514.00 Total grant allocation after the amendment US$3,800,000.00 10. Project overview. • Achievement Progress towards the Project Development Objective (PDO) is rated Moderately Satisfactory and Implementation Progress is rated Satisfactory.    As it approaches closure, the Project continues to make steady progress and is stepping up the pace of delivering its development objectives. Progress continues under all components and the Project Implementation Unit (PIU) is making concerted efforts to deliver the Project and PDOs by the project closure date of June 30, 2025.  It is the first project with MENFOP to adopt a results- based financing approach. This has been strategic in keeping the focus on results and performance, following some initial difficulties in adaptation and the need to change the Independent Verification Agency (IVA) due to delivery issues. PRODA is currently on track to deliver the majority of its Performance Based Results (PBRs), with the Bank team working closely with the PIU to accelerate the disbursement of the remaining PBRs. The school year 2023-24 saw a substantial improvement in school enrolment (PDO Level Indicator 1) and progress on national assessments (PDO Level Indicator 4). The first data to assess improvement in teacher skills (PDO Level Indicator 3) became available in July and shows an improvement of 79% for pre- school teachers and 58% for primary schoolteachers. Meanwhile progress on gender parity (PDO Level Indicator 2) has stabilized and is expected to show some increase for the school year 2024-25. Intermediate indicators are overall showing improvements with 9 indicators achieved.    • Procurement is rated Satisfactory and Financial Management (FM) is rated Moderately Satisfactory. There are no overdue external audit reports. • The Environmental and Social (E&S) aspects are rated Satisfactory. • Legal covenants. There have been no changes under the legal covenants. Page 2 The World Bank Expanding Opportunities for Learning (P166059) 11. Component performance. Over the past four years, MENFOP has made positive strides in implementing its reform and delivering project objectives, including navigating the challenges of the COVID period and ensuing school closures. Started in February 2020, one month before the COVID-19 pandemic, the Project has supported the achievement of a series of results including:   •   Component 1: Establishing foundations for quality preschool education: a new area for Djibouti, the Project has supported the development of quality standards and a mechanism to quality assure public preschools, teacher training and coaching, and the construction and equipment of 41 preschool classes which have facilitated the enrolment of over 1,000 preschool children. Enrolment has more than doubled since 2016 but remains low at 13.06 percent. MENFOP’s commitment to providing 1 year of preschool education to all children by 2035 represents a concerted effort to ensure that all children can benefit from the early development of cognitive and socioemotional skills.  • Component 2: Expanding access to and improving retention in primary and lower secondary education: over 22,000 out-of-school children (OOSC) have been enrolled in school so far, out of an ambitious target of 35,000, reflecting MENFOP’s efforts to increase enrolment, including a new program to provide catch-up learning for students who dropped out early and strategies to enhance girls’ enrolment and integrate children with special needs into public schools. Reducing repetition in Grade 5 from 24 percent to 6 percent represents significant progress towards increasing the efficiency of the education sector.  As part of Djibouti’s progressive approach to education for refugees, the Project has supported the equipment and construction of new classrooms and made the revised curriculum and learning materials available in refugee languages.  • Component 3: Building capacity to support teaching and learning: to date the Project has supported the revision of the curriculum for all grades from years 1-9, a revamp of teacher professional development, including pre-service training, and the rollout of the World Bank’s TEACH/COACH model to support regular coaching of teachers to improve teaching practice, and the promotion of Djibouti’s first national learning assessments in literacy and numeracy to track progress and identify where additional support is needed to improve foundational learning outcomes. • Component 4: Strengthening MENFOP’s management capacity and data systems: a major achievement is the incremental rollout of a digital education management information system at a national scale, starting with all public primary schools. The introduction of the first unique student identifier allows the enrolment and attendance of students to be monitored digitally and in real-time and is recognized by school principals as an efficient way to manage student enrolment and retention, enabling early tracking of children with low attendance and high risk of drop-out.  In addition, the Project is supporting digital literacy for the early grades and an online platform offering teachers continuous development and students learning materials to build system resilience to shifts to distance learning in the event of a future crisis.  C. Rationale for restructuring. 12. In line with Bank guidelines, a project restructuring is required to process the transfer of funds to RETF (TF0B6756) and BETF (TF0B7348) of the third and final installment of US$1 million – paid by the EAA based on the Administrative Agreement (Trust Fund No. TF073330). II. DESCRIPTION OF PROPOSED CHANGES 13. The third and final paid installment of EAA funds will be transferred to the child Trust Funds No. TF0B6756 and TF0B73480 (which finances the Bank team implementation support activities), as per the payment schedule listed in the EAA Administrative Agreement. This process does not require any changes to the project objective or its implementation. The transfer of funds from the Trustee to the RETF will be processed upon the signing of the grant amendment. Page 3 The World Bank Expanding Opportunities for Learning (P166059) 14. The Project and Components costs will remain unchanged, as the EAA funding was included and appraised under Component 2, as mentioned in paragraph 4 of this document. 15. There will not be any reallocation of funds given that the Project only has one category. 16. The Performance Based Condition (PBC) funds allocation table under Grant No. TF0B6756 will be updated to reflect the payment of the third and final installment (See Annex). 17. The Results Framework. No changes 18. Environmental and Social. The ESCP will continue its implementation. 19. Financial Management (FM). FM arrangements will remain unchanged. 20. Procurement arrangements. Procurement arrangements will remain unchanged. 21. Adjustments to Legal Covenants. Not required. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Development Objective No Institutional Arrangement Yes Summary Description No Loan Closing Date Extension No (Operation Abstract) Legal Operational Policies No Loan Cancellations No MFD/PCE No Reallocations No Results No Financial Management No Risks No Procurement No Legal Covenants No Implementation Schedule No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No Page 4 The World Bank Expanding Opportunities for Learning (P166059) @#&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 ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 5 The World Bank Expanding Opportunities for Learning (P166059) ANNEX Performance-Based Conditions (EAA allocation is top up to USD 3,800,000) Performance-Based Performance-Based Result Disbursement Calculation Financing Total Condition Formula source Allocation (1) PBC #1: Quality PBR #1.1: Quality standards PBR #1.1: N/A PBR #1.1 and PBR #1.1: assurance for preschool approved by 1.2: USD 0 mechanism for MENFOP through a signed N/A preschool education Ministerial memo (note de PBR #1.2: PBR #1.2: established service) USD 250,000 for each 15 percent USD 0 PBR #1.2: At least 30 % of the of public and private preschools public and private preschools meeting the approved quality meeting the approved quality standards, up to a maximum of standards. USD 500,000, with a minimum payment threshold of USD 250,000 (2) PBC #2: Public At least 40 % of public USD 125,000 for each 10% of N/A USD 0 preschool teachers preschool teachers with such teachers with improved with improved improved competencies, as competencies, as observed competencies linked observed through COT. through COT, up to a maximum to trainings (as of USD 500,000, with a minimum measured by a payment threshold of USD classroom 250,000 observation tool as defined in the POM (“COT”) (3) PBC #3: Expanding PBR #3.1: A medium-term PBR #3.1: N/A PBR#3.1: N/A PBR #3.1: USD access to primary school expansion plan is 0 and lower approved by MENFOP through secondary a signed Ministerial memo PBR #3.2: PBR #3.2 PBR #3.2: education (note de service) (i) USD 141,430 for every 1,000 (i) N/A (i)USD 0 PBR #3.2: 35,000 primary OOSC enrolled, up to a maximum school-level OOSC students of USD 4,950,000 and 35,000 enrolled students, with a minimum payment threshold of USD 321,488 (ii) USD 108,572 for every 1,000 (ii) EAA Grant (ii) USD OOSC enrolled, up to a 3,800,000 maximum of USD 3,800,000 and 35,000 students, with a minimum payment threshold of USD 246,512, unless otherwise agreed in writing between the Bank and the Recipient for the first year of Project implementation. Page 6 The World Bank Expanding Opportunities for Learning (P166059) (4) PBC #4: Strengthen PBR #4.1: Sub-regional plans PBR #4.1: PBR #4.1: PBR #4.1: demand and to promote enrollment and N/A N/A USD 0 improve retention reduce dropout are approved of students in by MENFOP through a signed primary and lower Ministerial memo (note de secondary schools service) PBR #4.2: PBR #4.2: PBR #4.2: PBR #4.2 (included for N/A N/A 0 reference only): Decrease in grade 5 repetition rate between Year 1 and Year 5 of project implementation from PBR #4.3: PBR #4.3: N/A PBR #4.3: 24.4% to 14.4%. N/A 0 PBR #4.3(included for reference only): Increase in gender parity index for gross enrollment in lower secondary education (5) PBC #5: Improve PBR #5.1: PBR #5.1(a) and (b): PBR #5.1(a), PBR #5.1(a): learning (a) Assessment levels at the N/A (b): USD 0 assessments first cycle of primary school in N/A PBR math and at least one #5.1(b): language are approved by USD 0 MENFOP through a signed Ministerial memo (note de service) (b) National primary learning assessment administered by Evaluation Department of MENFOP PBR #5.2: Assessment levels at PBR #5.2: PBR #5.2: PBR #5.2: the second cycle of primary N/A N/A USD 0 school and lower secondary school in math and the languages French and Arabic are approved by MENFOP through a signed Ministerial memo (note de service) PBR #5.3: (a) Revised year 2 PBR #5.3(a) and (b): N/A PBR #5.3(a) PBR #5.3(a): OTI assessment is and (b): USD 0 administered by MENFOP N/A (b) Revised year 5 OTI PBR #5.3(b): assessment is administered by USD 0 MENFOP Page 7 The World Bank Expanding Opportunities for Learning (P166059) PBR #5.4 (included for PBR #5.4: PBR #5.4: PBR#5.4: reference only): N/A N/A 0 Establishment of baseline percentage of year 2 students reaching the minimum acceptable threshold learning level PBR #5.5(a): PBR #5.5(a): PBR #5.5(a): PBR #5.5(a): Schools receive 100,000 for every 28 schools, up N/A USD 0 detailed report on results of to a maximum of USD 500,000, learning assessments and with a minimum payment guidelines for their use to threshold of USD 100,000 improve teaching and learning 5.5(b): (Included for reference PBR #5.5(b): PBR #5.5(b): PBR #5.5(b): only) N/A N/A USD 0 From baseline established under PBR 5.4, increase in percentage of year 2 students reaching the minimum acceptable threshold learning level in the following years (6) PBC #6: Systematic PBR #6.1: At least 3 PBR #6.1: PBR #6.1: PBR #6.1: update of teachers’ competency frameworks N/A N/A USD 0 professional approved by MENFOP through development a signed Ministerial memo program. (note de service) PBR #6.2: PBR #6.2: PBR #6.2: PBR #6.2: 2,000 teachers USD 100,000 for every 200 N/A USD 0 trained on the new teachers trained, up to a competencies/ training maximum of USD 1,000,000, with modules a minimum payment threshold of 200,000 TOTAL AMOUNT USD 3,800,000 Page 8