May 25, 2022 Mr. Sukhbir Singh Controller of Aid Accounts and Audit Department of Economic Affairs Ministry of Finance 5th Floor, “B” Wing Janpath Bhawan, Janpath New Delhi, India 110 001 Re: IBRD Loan No. 9219-IN and AIIB Loan C2070 Gujarat Outcomes for Accelerated Learning (GOAL) Program Additional Instructions: Restated Disbursement and Financial Information Letter Mr. Sukhbir Singh, I refer to the Loan Agreement between India (the “Borrower”) and the International Bank for Reconstruction and Development (the “World Bank”) for the Loan 9219-IN, and to the loan C2070 assigned under the Loan Agreement (“the AIIB’s Loan Agreement”) between the Borrower and the Asian Infrastructure Investment Bank (the “AIIB”) for the Loan L0479A to co-finance the Gujarat School Education Excellence (GOAL) Program. The General Conditions, as defined in the World Bank’s Loan Agreement, provide that the Borrower may request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter (DFIL), and such additional instructions as the World Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the DFIL may set out Program specific financial reporting requirements. This letter constitutes such DFIL, and it is a restatement of the previous version, and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Loan Funds, and Reporting of Uses of Loan Funds (i) Schedule 1. The table in Schedule 1 sets out the disbursement methods, considerations on disbursement conditions, information on registration of authorized signatures, processing of withdrawal applications, and instructions on documentation, with respect to the AIIB’s loan and the World Bank’s loan. (ii)Withdrawal Applications. Applications for withdrawal from the Loan Account (“Withdrawal Applications”) of amounts of the Loan allocated to individual Disbursement Linked Results (“DLR”) may, pursuant to the provisions of the AIIB’s Loan Agreement, as well as section IV of Schedule 2, and Schedule 3 to the World Bank’s Loan Agreement, be sent through the World Bank’s system Client Connection to the World Bank at any time after the World Bank has notified the Borrower in writing that it has accepted evidence of achievement of disbursement-linked indicators through specific DLRs. (iii) Withdrawal Amount. The Withdrawal Application may be for an amount not to exceed the amount of the loans confirmed by the World Bank for the specific DLR in respect of which the withdrawal is requested, as specified in the World Bank’s notice to the Borrower. (iv) Prior Results.  World Bank. The World Bank’s loan will finance up to USD 125,000,000 corresponding to prior results, per section IV.B.2. of Schedule 2 to the World Bank’s Loan Agreement.  AIIB. The AIIB’s loan will finance up to USD 15,250,000 corresponding to prior results per section III.B.1. of Schedule 2 to the AIIB’s Loan Agreement: (v) Electronic Delivery. Section 10.01 (c) of the General Conditions. The Borrower will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Borrower who are authorized to sign and deliver Withdrawal Applications for the Gujarat School Education Excellence (GOAL) Program have registered as users of “Client Connection”. The designated officials will deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Borrower may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower encounters legal limitations), and which were previously agreed with the World Bank. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the World Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Statements and Audits. Section 5.09 of the General Conditions. (i) IFRs – The Interim Financial Reports will not be required for the Program. (ii) Audits - Each audit of the Financial Statements must cover the period of one fiscal year (April to March) of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audit report of the consolidated annual Program financial statements prepared by the Gujarat Council of School Education (GCSE) and audited by a private firm, will be submitted to the World Bank not later than nine (9) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements under the AIIB’s loan and/or World Bank’s loan, please refer to the Loan Handbook available on the Bank’s website (http://www.worldbank.org/) and “Client Connection”. The World Bank recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the World Bank by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact us through the service account AskLoans@WorldBank.org, using the reference Loan No. 9219-IN and Loan No. C2070 Gujarat Outcomes for Accelerated Learning (GOAL) Program. Yours sincerely, __________________________ Hideki Mori Acting Country Director India Attachments 1. Form of Authorized Signatory Letter Schedule 1 : Disbursement Provisions Basic Information Loan Numbers Country: India Closing Date AIIB IBRD Borrower: India Section IV.B.4. of Schedule 2 to the World Bank’s Loan Agreement and Section C2070 9219-IN III.B.3. of Schedule 2 to the AIIB’s Loan Agreement. Name of the Program: Gujarat Outcomes for Accelerated Learning Disbursement Deadline Date: Six months (GOAL) Program after the closing date. Disbursement Methods and Supporting Documentation Disbursement Method Type and Supporting Documentation Advance Not Applicable Reimbursement Financing of DLIs through achieved DLRs in the “Confirmation” issued by the World Bank to support each Withdrawal Application Authorized Signatures The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications The Authorized Signatories Letter (ASL) will be sent to the following address: The World Bank Group No. 11, Taramani Main Road Taramani, Chennai – 600 113, India Attention: Loan Operations Department (WFACS) All Withdrawal Applications and its supporting documentation will be electronically sent through the World Bank’s system ClientConnection. Other Instructions  Co-financing from AIIB. The Program is co-financed by the AIIB based on the co-lenders agreement, and spelled out in Attachment 3 of this DFIL.  Program, program and Expenditure Framework. Paragraphs 29, 31, and 69 of the main text, and Paragraph 123 of Annex 4 of PAD provide information on the programs and the expenditure framework. This information is detailed in the Operations Manual approved by the Bank.  Deposits of Loan Amounts. All withdrawals from the Loan Accounts will be deposited by the World Bank and AIIB into an account established by CAAA at the Reserve Bank of India (RBI).  Disbursement Table. Schedule 3 to the WB’s Loan Agreement and Schedule 4 to the AIIB’s Loan Agreement provide detailed information on the Disbursement Linked Indicators, Disbursement Linked Results and Allocated Amounts Applicable to the Program. Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan 9219-IN. and AIIB Loan C20701 Gujarat Outcomes for Accelerated Learning (GOAL) Program I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “World Bank”) and [name of borrower] (the “Borrower”), dated _______, providing the above IBRD Loan and the Loan Agreement signed between the Asian Infrastructure Investment Bank (“AIIB”) and the Borrower dated ___________________. For the purposes of Section 2.02 of the IBRD’s General Conditions as defined in the Agreement, any 2[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal under these IBRD and AIIB Loans. For the purpose of delivering Applications to the World Bank, 3[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 4 [individually] 5[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 1 Under the AIIB’s Loan Agreement for the AIIB Loan L0479A 2 Instruction to the Borrower: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Bank. 3 Instruction to the Borrower: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank. 4 Instruction to the Borrower: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. 5 Instruction to the Borrower: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. 1 [This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. In full recognition that the World Bank shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation (“Terms and Conditions of Use of SIDC”), the Borrower represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 1 Instruction to the Borrower: Add this paragraph if the Borrower wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Bank. Attachment 2 Program Expenditure Framework The Program for Results (PforR) Gujarat Outcomes for Accelerated Learning (GOAL) Program will support the program in strengthening decentralized educational management for improved education outcomes. A Separate budget line has been created for the Bank financed operation (nomenclature: Schools of Excellence under Externally Aided Projects (EAP); Budget Code: 4202-01-201-13) in the budget document of FY 20-21 with a token provision of INR 10 Million (INR 1 crore). The activities to be supported correspond to specific sub-programs and activities under the overall Samagra Shiksha centrally sponsored scheme, as well as that of the Government of Gujarat’s state prioritized educational reform under the School Education Excellence Program (SEEP). The total government education expenditure USD 2,068,000,000 out of which the overall Government of Gujarat’s (GOG) expenditure on SEEP is USD 1,568,800,000. The overall PforR Program cost of GOAL is USD 1,071,400,000 out of which USD 500,000,000 (or 47%) comprises of the World Bank loan, USD 250,000,000 (or 23%) comprises the AIIB’s Loan, and USD 321,400,000 (or 30%) is the GOG contribution to the PforR Program. Program Financing Financing Source Amount USD million Borrower/Recipient (GoG) 321.4* IBRD (World Bank) 500.0 Co-Financing from AIIB 250.0 TOTAL 1,071.4 *Note: USD 214.3 million and USD 107.1 million is the Borrower contribution against the World Bank financing (USD 500 million) and co-financing from AIIB (USD 250 million), respectively. Program budget is allotted by the State Education Department to Gujarat Council of School Education (GCSE) based on which GCSE draws funds from the treasury into its bank account. GCSE (i) has had an annual average budget outturn of 73% in the Samagra Shiksha Program in the last three years; and (ii) operates through program/scheme-specific commercial bank accounts. Program funds will also flow from GCSE to 33 District units, School Management and Development Committees (SMDCs in schools), Gujarat Council of Educational Research and Training (GCERT) along-with its District level outfits (33 DIETs) and to GSQAC. Flow of funds to GCERT, DIETS and Gujarat School Quality Accreditation Council (GSQAC) will be mainly for operational costs. Attachment 3 Co-financing ratio AIIB:World Bank by DLI and DLR Allocated Amount (USD Financing million) Percentage DLIs and DLRs AIIB World AIIB World Bank Bank DLI 1 Stakeholder owned planning systems institutionalized 37.5 75 33 67 Piror Results State Implementation Society trained by a National/State Planning Institute for 2 3 40 60 overseeing the planning and appraisal outcome based AWPB Year 1 DLR (i) 17 District Planning Teams trained by a National/State Planning Institute on 14.75 19 44 56 AWPB creation that includes partnerships with NGOs/non state actors; and (ii) Undertaken an assessment of governance and public finance bottlenecks (with an emphasis on planning and budgeting) for improved service delivery at school level Year 2 DLR (i) An additional 16 District Planning Teams trained by a National/State Planning 15 26 37 63 Institute on AWPB creation that includes partnerships with NGOs/non state actors; and (ii) 20 percent of School Management Committees (SMCs) trained on the development of evidence-based School Development Plans (SDPs) and AWPBs; and (iii) Prioritized action plan initiated to address constraints identified in the governance and public finance assessment report Year 3 DLR (i) 5 district AWPBs approved, and show at least 75 percent utilization of funds 3 9 25 75 sanctioned against AWPBs; and (ii) An additional 10 percent of SMCs trained on the development of evidence- based SDPs and AWPBs Year 4 DLR An additional 10 percent of SMCs trained on the development of evidence-based 0.5 4 11 89 SDPs and AWPBs Year 5 DLR (i) An additional 5 district AWPBs approved, and show at least 75 percent 1.6 9 15 85 utilization of funds sanctioned against AWPBs; and (ii) An additional 10 percent of SMCs trained on the development of evidence- based SDPs and AWPBs Year 6 DLR An additional 5 district AWPBs approved, and show at least 75 percent utilization 0.65 5 12 88 of funds sanctioned against AWPBs DLI 2 Performance grants to schools to incentivize improved outcomes 25 50 33 67 Piror Results Performance based grants mechanism with school selection process prepared and 1 2 33 67 cleared with the World Bank Year 1 DLR (i) 300 schools meeting minimum performance criteria as per agreed standards; 3.54 5.625 39 61 and (ii) 30 schools move to Lighthouse status based on agreed selection criteria Year 2 DLR i) 400 additional schools meeting minimum performance criteria as per agreed 4.69 7.125 40 60 standards; and (ii) 30 additional schools move to Lighthouse status based on agreed selection criteria and 30 schools of Year 1 maintain Lighthouse status Year 3 DLR (i) 400 additional schools meeting minimum performance criteria as per agreed 4.72 7.5 39 61 standards; and (ii) 40 additional schools move to Lighthouse status based on agreed selection criteria and 60 schools of Year 1 and Year 2 maintain Lighthouse status Year 4 DLR (i) 500 additional schools meeting minimum performance criteria as per agreed 3.67 9 29 71 standards; and (ii) 40 additional schools move to Lighthouse status based on agreed selection criteria and 100 schools from Years 1 to 3 maintain Lighthouse status Year 5 DLR (i) 500 additional schools meeting minimum performance criteria as per agreed 3.7 9.375 28 72 standards; and (ii) 50 additional schools move to Lighthouse status based on agreed selection criteria and 140 schools of Years 1 to 4 maintain Lighthouse status Year 6 DLR (i) 500 additional schools meeting minimum performance criteria as per agreed 3.68 9.375 28 72 standards; and (ii) 50 additional schools move to Lighthouse status based on agreed selection criteria and all 190 Lighthouse schools from Years 1 to 5 maintain Lighthouse status DLI 3 Improved foundational learning outcomes at the lower primary level 37.5 75 33 67 Piror Results Package for training of ECE teachers/facilitators notified by the State 1 2 33 67 Implementation Society Year 1 DLR 30 percent of teachers from schools with co-located Aanganwadis trained to 8.25 9 48 52 provide academic support on ECE in each of the 5 selected districts. Year 2 DLR (i) 40 percent of teachers from schools with co-located Aanganwadis trained to 22.4175 29 44 56 provide academic support on ECE in each of the 10 additonal selected districts; and (ii) Baseline learning outcomes assessment for Grade 4 language completed Year 3 DLR One year pre-school program rolled out in 1000 schools 3.5425 7.5 32 68 Year 4 DLR 2 percentage point improvement in the percentage of students achieving minimum 0.8325 10 8 92 proficiency in learning outcomes assessment for Grade 4 language Year 5 DLR One year pre-school program rolled out in 1000 additional schools 0.625 7.5 8 92 Year 6 DLR An additional 2 percentage point improvement in the percentage of students 0.8325 10 8 92 achieving minimum proficiency in learning outcomes assessment for Grade 4 language DLI 4 Strengthened teacher development for classroom performance 37.5 75 33 67 Piror Results State level agency designated for carrying out periodic teacher training needs 1.75 2 47 53 assessments Year 1 DLR First teacher training needs assessment completed, and baseline created 4.5 5 47 53 Year 2 DLR 20 percent of teachers provided with need-based teacher training 14.4 12 55 45 Year 3 DLR Second teacher training needs assessment completed, and grade level learning hard 2.75 10 22 78 spots identified through needs assessment reduced by 5 percent Year 4 DLR An additional 30 percent of teachers provided with need-based teacher training 10.8 18 37 63 Year 5 DLR An additional 30 percent of teachers provided with need-based teacher training 2.3 18 11 89 Year 6 DLR Third teacher training needs assessment completed, and grade level learning hard 1 10 9 91 spots identified through needs assessment reduced by an additional 5 percent DLI 5 Improved learning environment in schools and teacher education institutions 74.375 148.75 33 67 Piror Results Inclusive state strategy for school learning environment development including 1.5 3 33 67 functional school designs and facilities finalized Year 1 DLR Strategy with functional designs and staffing needs finalized to enhance training in 3 5 37 63 5 new DIETs Year 2 DLR Strengthened child friendly learning environment in 1,500 schools 11.25 20 36 64 Year 3 DLR Strengthened child friendly learning environment in an additional 1,500 schools 11.25 20 36 64 Year 4 DLR (i) Strengthened child friendly learning environment in an additional 1,500 21.25 10 68 32 schools; and (ii) Construction of the superstructure of 5 DIETs complete with at least 75% staff in position in each DIET Year 5 DLR Strengthened child friendly learning environment in an additional 2,500 schools 13.125 50 21 79 Year 6 DLR (i) Strengthened child friendly learning environment in an additional 2,000 13 40.75 24 76 schools; and (ii) Construction of 5 new DIETs completed and facilities made operational with 75% staff position in each DIET DLI 6 Improved learning assessment systems for focused remedial programs 25 50 33 67 Piror Results Digital device mapping completed to enable the statewide roll out of ICT- 2.5 5 33 67 supported Periodic Assessment Tests (PAT) that provide student, subject and school wise reports on learning gaps and corresponding remedial education plans Year 1 DLR i) Gujarat Assessment Center (GAC) for managing classroom, state and 8 3 73 27 international level student assessments, notified; and (ii) Partnership established with OECD for conducting PISA- based Test for select Schools Year 2 DLR 20 percent of schools covered under ICT-supported Periodic Assessment Tests that 4 8.25 33 67 provide student, subject and school wise reports on learning gaps and corresponding remedial education plans Year 3 DLR (i) Review of state examinations with time bound reform action plan completed 5 6 45 55 and report highlighting proposed reform agenda published; and (ii) State Assessment Center managed PISA-based Test for Schools completed Year 4 DLR An additional 40 percent of schools covered under ICT-supported Periodic 2 16.5 11 89 Assessment Tests that provide student, subject and school wise reports on learning gaps and corresponding remedial education plans Year 5 DLR i) State examinations aligned with international competency-based learning 2.5 3 45 55 standards; and (ii) Partnership established with OECD for state’s participation in PISA 2028 Year 6 DLR An additional 20 percent of schools covered under ICT-supported Periodic 1 8.25 11 89 Assessment Tests that provide student, subject and school wise reports on learning gaps and corresponding remedial education plans DLI 7 COVID 19 response strategies built in for systemic resilience 12.5 25 33 67 Year RESULT At least 60 percent of students provided with home-based learning 5.5 6 48 52 materials/workbooks designed to provide remedial support for reducing learning deficiencies Year 1 DLR (i) Baseline assessment to measure COVID-19 related learning loss completed; - 3 - 100 and (ii) Classroom and home-based remedial support provided to address learning losses caused by the COVID-19 pandemic Year 2 DLR (i) 20 percent of educators trained in digital competencies; and 3 4 43 57 (ii) 20 percent of decentralized education functionaries/ personnel trained on emergency response strategies for systemic resilience Year 3 DLR (i) An additional 15 percent of educators trained in digital competencies; and 1 3 25 75 (ii) An additional 15 percent of decentralized education functionaries/ personnel trained on emergency response strategies for systemic resilience Year 4 DLR (i) An additional 15 percent of educators trained in digital competencies; and 1 3 25 75 (ii) An additional 15 percent of decentralized education functionaries/ personnel trained on emergency response strategies for systemic resilience Year 5 DLR (i) An additional 15 percent of educators trained in digital competencies; and 1 3 25 75 (ii) An additional 15 percent of decentralized education functionaries/ personnel trained on emergency response strategies for systemic resilience Year 6 DLR (i) An additional 15 percent of educators trained in digital competencies; and 1 3 25 75 (ii) An additional 15 percent of decentralized education functionaries/ personnel trained on emergency response strategies for systemic resilience Front-End Fee 0.625 1.25 Total Loan Amount and Overall Co-financing Ratio USD 250 USD 500 33% 67% MILLION MILLION