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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 74711-AF EMERGENCY PROJECT PAPER ON A Public Disclosure Authorized PROPOSED GRANT IN THE AMOUNT OF SDR 35.7 MILLION (US$ 55 MILLION EQUIVALENT) TO THE ISLAMIC REPUBLIC OF AFGHANISTAN FOR A Public Disclosure Authorized SECOND SKILLS DEVELOPMENT PROJECT March 1, 2013 Human Development Unit South 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 January 31, 2013) Currency Unit = Afghani (AFN) AFN 51.2 = US$1 US$ 1.54 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AIT Afghanistan Institute of Technology ARTF Afghanistan Reconstruction Trust Fund ANIM Afghanistan National Institute of Music ASDP Afghanistan Skills Development Project BP Business Plan BDS Business Development Services CTI Computer Technology Institute DA Designated Account DAB Da Afghanistan Bank DOI Department of Infrastructure DOP Department of Planning DMTVET Deputy Ministry of Technical and Vocational Education Training EC European Commission EMIS Education Management Information System EQUIP Education Quality Improvement Program ESMF Environment and Social Management Framework FM Financial Management FMM Financial Management Manual GAAP Generally Accepted Accounting Principles GC Grants Committee GCL Governing Council GDP Gross Domestic Product GOA Government of Afghanistan GIZ German Agency for Technical Cooperation IBRD International Bank for Reconstruction and Development ICT Information and Communication Technology IFC International Finance Corporation IDA International Development Association IP Implementation Partners IROA Islamic Republic of Afghanistan ISDS Integrated Safeguards Data Sheet LMIS Labor Market Information System M&E Monitoring and Evaluation MIS Management Information System MOE Ministry of Education MOHE Ministry of Higher Education MOLSAMD Ministry of Labor, Social Affairs and Martyred and Disabled MOU Memorandum of Understanding NGO Non-Governmental Education NIMA National Institute of Management and Administration NOSS National Occupational Skills Standards NPP National Priority Program NQF National Qualifications Framework NRVA National Risk and Vulnerability Analysis NSDP National Skills Development Program NSP National Solidarity Program NVETB National Vocational Education Training Board PIM Project Implementation Manual SC Steering Committee TEC Technical Evaluation Committee TTTI (3TI) Technical Teacher Training Institute TVET Technical and Vocational Education and Training Regional Vice President: Isabel M Guerrero Country Director: Robert J. Saum Sector Director: Jesko S. Hentschel Sector Manager: Amit Dar Task Team Leaders Bappaditya Chakravarty/Leopold Remi Sarr AFGHANISTAN Second Skills Development Project TABLE OF CONTENTS Page A. Introduction ......................................................................................................................... 1 B. Emergency Challenge: Country Context, Recovery Strategy and Rationale for Proposed Bank Emergency Project ..................................................................................... 1 C. Appraisal of Project Activities .......................................................................................... 11 D. Implementation Arrangements and Financing Plan .......................................................... 15 E. Key Risks and Mitigating Measures ................................................................................. 25 F. Terms and Conditions for Project Financing .................................................................... 26 Annex 1: Detailed Project Description ......................................................................................... 28 Annex 2: Results Framework........................................................................................................ 41 Annex 3: Summary of Estimated Project Costs ............................................................................ 45 Annex 4: Operational Risk Assessment Framework (ORAF) ...................................................... 46 Annex 5: Financial Management and Disbursement Arrangements ............................................ 51 Annex 6: Procurement Arrangements ........................................................................................... 65 Annex 7: Implementation Arrangements ...................................................................................... 87 Annex 8: Project Preparation and Appraisal Team Members ...................................................... 92 Annex 9: Environmental and Social Safeguards Framework ....................................................... 93 Annex 10: Economic and Financial Analysis ............................................................................... 98 Annex 11: Documents in Project Files ....................................................................................... 104 Annex 12: Statement of Loans and Credits ................................................................................ 105 Annex 13: Country at a Glance ................................................................................................... 106 Annex 14: Map ........................................................................................................................... 107 AFGHANISTAN Second Skills Development Project PROJECT PAPER SOUTH ASIA Basic Information Country Director: Robert J. Saum Sectors: Education Sector Manager/Director: Amit Dar/Jesko Themes: Technical Vocational S. Hentschel Education and Training (100%) Team Leaders: Bappaditya Chakravarty/ Environmental category: B Leopold Remi Sarr Expected Closing Date: 06/30/ 2018 Project ID: P132742 Joint IFC: Expected Effectiveness: Date: 07/01/2013 Joint Level: Lending Instrument: ERL Project Financing Data [ ] Loan [ ] Credit [ X ] Grant [ ] Guarantee [ ] Other: Proposed terms: Financing Plan (US$m) Source Total Amount (US $m) Total Project Cost: 60.0 Cofinancing: Borrower: 5.0 Total Bank Financing: IBRD IDA 55.0 New Recommitted Client Information Recipient: Islamic Republic of Afghanistan Responsible Agency: Deputy Ministry of Technical and Vocational Education and Training, Ministry of Education, Govt. of Islamic Republic of Afghanistan Contact Person: Mohammad Asif Nang Telephone No.: +93 700 044 305 Fax No.: N/A Email: [email protected] Estimated disbursements (Bank FY/US$m) FY 2014 2015 2016 2017 2018 Annual 11.6 14.5 15.6 10.5 2.8 Cumulative 11.6 26.1 41.7 52.2 55.00 Project Development Objective and Description The objective of the Project is to increase the potential for employment and higher earnings of graduates from Technical and Vocational Education and Training (TVET) schools and institutes through improvements in the skills delivery system Project description: Component 1: Strengthening of the TVET institutional system Component 2: Improving performance of TVET Schools and Institutes Component 3: Improving Teacher Competencies Component 4: Project Management, Monitoring & Evaluation and Public Awareness Safeguard and Exception to Policies Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) [ X ]Yes [ ] No Natural Habitats (OP/BP 4.04) [ ]Yes [ X ] No Forests (OP/BP 4.36) [ ]Yes [ X ] No Pest Management (OP 4.09) [ ]Yes [ X ] No Physical Cultural Resources (OP/BP 4.11) [ ]Yes [ X ] No Indigenous Peoples (OP/BP 4.10) [ ]Yes [ X ] No Involuntary Resettlement (OP/BP 4.12) [ ]Yes [ X ] No Safety of Dams (OP/BP 4.37) [ ]Yes [ X ] No Projects on International Waterways (OP/BP 7.50) [ ]Yes [ X ] No Projects in Disputed Areas (OP/BP 7.60) [ ]Yes [ X ] No Does the project require any exceptions from Bank policies? [ ]Yes [ X ] No Have these been approved by Bank management? [ ]Yes [ X ] No Conditions and Legal Covenants: Financing Description of Condition/Covenant Date Due Agreement Reference Section I, Recipient to (1) establish a ASDP II Steering Committee, (1) July 15, 2013 (A)2 of chaired by the Minister of Education, and with members, (2) Recurrent Schedule 2 their roles and responsibilities satisfactory to the Association and (2) maintain it throughout the project. Section I, Recipient will (1) establish a ASDP II Standing July 15, 2013 (A)3 of Committee in DMTVET, chaired by Deputy Minister, Schedule 2 DMTVET, and with members, their roles and responsibilities satisfactory to the Association and (2) maintain it throughout project implementation. Section I, Recipient to maintain the Skills Team within DMTVET Recurrent (A)4 of with staffing and terms of reference satisfactory to the Schedule 2 Association throughout project implementation. Section I, Recipient to devise and implement a plan for providing (A)5 of administrative autonomy to beneficiary schools and Schedule 2 institutes under the project Financing Description of Condition/Covenant Date Due Agreement Reference Section I, Recipient to devise a plan for gradual provision of June 15, 2014 (B)2 of financial autonomy to beneficiary schools and institutes Schedule 2 under this project Section I, Recipient to prepare and adopt a (1) Project (1) September 30, (B)1 of Implementation Manual (PIM) satisfactory to the 2013 Schedule 2 Association, and implement the project in accordance (2) Recurrent with the same, and (2) make no changes in the PIM without concurrence
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