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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 47225-AM PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 17.0 MILLION (US$25.0 MILLION EQUIVALENT) TO THE REPUBLIC OF ARMENIA FOR A SECOND EDUCATION QUALITY AND RELEVANCE PROJECT (APL 11) IN SUPPORT OF THE EDUCATION QUALITY AND RELEVANCE (APL) PROGRAM Public Disclosure Authorized April 15,2009 Human Development Sector Unit Europe and Central Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective February 28,2009) Currency Unit = Armenian Dram AMD 306.00 = US$l.OO SDR 1 = US$1.476090 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ANQA Armenian National Quality Assurance Agency APL Adaptable Program Lending ATC Assessment and Testing Center CEP Center for Education Projects (Project Implementation Unit) ECD Early Childhood Development EMIS Education Management Information System ESDP Education Sector Development Project GDP Gross Domestic Product ICTs Information and Communication Technologies IDA International Development Association ISDS Integrated Safeguard Data Sheet TI Transparency International MoES Ministry of Education and Science MoF Ministry of Finance NaCET National Center of Education Technology os1 Open Society Institute SAPPU Strategic Analysis, Planning and Personnel Unit PCN Project Concept Note PDO Project Development Objective PID Project Information Document PIRL S Progress in International Reading Literacy Study PISA Programme for International Student Assessment PIU Project Implementation Unit MED Marz Education Department TEMIS Tertiary Education Management and Information System TIMSS Trends in International Mathematics and Science Study UNICEF United Nations Children’s Fund VET Vocational Education and Training Vice President: Shigeo Katsu Country Director: Asad Alam Sector Director: Tamar Manuelyan Atinc Country Manager: Aristomene Varoudakis Sector Manager: Mamta Murthi Task Team Leader: Juan Manuel Moreno ARMENIA Second Education Quality and Relevance Project (APL 11) CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ......................................................................... 1 A . Country and sector issues ........................................................................................................... 1 B . Rationale for Bank involvement ................................................................................................ 3 C . Higher level objectives to which the project contributes ........................................................... 3 I1. PROJECT DESCRIPTION .................................................................................................... 3 A . Lending instrument ................................................................................................................... $4 B . Program objective and Phases .................................................................................................... 4 C . Project development objective and key indicators ..................................................................... 5 D. Project components ................................................................................................................... -6 E . Lessons learned and reflected in the project design ................................................................... 9 F . Alternatives considered and reasons for rejection.................................................................... 10 I11. IMPLEMENTATION ........................................................................................................... 11 A . Institutional and implementation arrangements ....................................................................... 11 B . Monitoring and evaluation of outcomeshesults....................................................................... 12 C . Sustainability............................................................................................................................ 12 D. Critical risks and possible controversial aspects ...................................................................... 14 E. Credit conditions and covenants .............................................................................................. 15 IV. APPRAISAL SUMMARY ..................................................................................................... 15 A . Economic and financial analyses ............................................................................................. 15 B . Technical .................................................................................................................................. 15 C . Fiduciary .................................................................................................................................. 16 D. Social........................................................................................................................................ 16 E . Environment............................................................................................................................. 16 F . Safeguard policies .................................................................................................................... 17 G . Policy Exceptions and Readiness ............................................................................................. 17 Annex 1: Country and Sector or Program Background.................................................................. 18 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .......................... 23 Annex 3: Results Framework and Monitoring................................................................................. 24 Annex 4: Detailed Project Description.............................................................................................. 29 Annex 5: Project Costs ........................................................................................................................ 44 Annex 6: Implementation Arrangements ......................................................................................... 45 Annex 7: Financial Management and Disbursement Arrangements ............................................. 50 Annex 8: Procurement Arrangements .............................................................................................. 56 Annex 9: Economic and Financial Analysis ...................................................................................... 68 Annex 10: Safeguard Policy Issues .................................................................................................... 73 Annex 11: Project Preparation and Supervision .............................................................................. 74 Annex 12: Documents in the Project File.......................................................................................... 75 Annex 13: Statement of Loans and Credits ...................................................................................... 76 Annex 14: Country at a Glance.......................................................................................................... 77 ARMENIA SECOND EDUCATION QUALITY AND RELEVANCE PROJECT (APL#2) PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSHD Date: April 15, 2009 Team Leader: Juan Manuel Moreno Olmedilla Country Director: Asad Alam Sectors: Secondary education (55%); Tertiary Sector ManagedDirector: Tamar Manuelyan Atinc education (25%); Pre-primary education (20%) Themes: Education for the knowledge economy (P); Education for all (S) Project ID: PI07772 Environmental screening category: Not Required Lending Instrument: Adaptable Program Loan Project Financing Data [ ] Loan [XI Credit [ ] Grant [ ] Guarantee [ ] Other: Source Local Foreign Total RECIPIENT 5.09 1.17 6.26 International Development Association (IDA) 20.33 4.67 25.00 Total: 25.42 5.84 3 1.26 Recipient: Republic of Armenia Armenia Responsible Agency: Ministry of Education and Science Government House 3 Armenia Tel: 3741 526602 www. edu.am :Y 2010 2011 I 2012 2013 2014 2015 ' innual 2.00 3.00 I 6.00 6.00 5.30 2.70 hmulative 2.00 5.00 11.00 17.00 22.30 25.00 Expected closing date: November 30, 20 14 Does the project depart from the CAS in content or other significant respects? ReJ [ ]Yes [XINO PAD I.C. Does the project require any exceptions from Bank policies? ReJ PAD IKC. [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [XINO Re$ PAD ZZZ. E. Does the project meet the Regional criteria for readiness for implementation? Re$ [XIYes [ ]No PAD ZV. G. Project development objective Re$ PAD ZZ.C., Technical Annex 3 The proposed Project Development Objectives are: (i)enhance school learning in general education and improve the school readiness of children entering primary education; and (ii)support the integration of Armenian Tertiary Education system into the European Higher Education Area. Project description [one-sentence summary of each component] Re$ PAD ILD., Technical Annex 4 Component 1. Enhancing the Quality of General Education (total estimated cost: US$I9.66 million of which
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