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World Bank Document DOCUMENT OF THE WORLD BANK FOR OFFICIAL USE ONLY Public Disclosure Authorized REPORT NO: 52703-YE PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED GRANT IN THE AMOUNT OF SDR 8.5 MILLION (US%13MILLION EQUIVALENT) TO THE REPUBLIC OF YEMEN FOR A Public Disclosure Authorized HIGHER EDUCATION QUALITY IMPROVEMENT PROJECT March 26,2010 Human Development Sector Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their Public Disclosure Authorized official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 15,2010) Currency Unit = Yemeni Rial (YER) YERl = US$0.0046 US$1 = YER216.15 FISCAL YEAR January 1 - December 3 1 ABBREVIATIONS AND ACRONYMS AFMlS Accounting Financial Management Information System MoHESR Ministry of Higher Education and Scientific Research CAS Country Assistance Strategy MoPlC Ministry of Planning and International Cooperation CBY Central Bank of Yemen MoTEVT Ministry of Technical Education and Vocational Training CFAA Country Financial Accountability Assessment NCB National Competitive Bidding CPAR Country Procurement Assessment Report NPM National Procurement Manual CQ Consultants' Qualification NS National Shopping cso Civil Society Organization NSDHE National Strategy for the Development of Higher Education CSR Country Status Report PA Performance Agreement DA Designated Account PAD Project Appraisal Document DFID U.K. Department for International Development PDO Project Development Objective DP Development Partners PFS Project Financial Statement EFA Education for All PHRD Japan Policy and Human Resources Development Fund EMP Environment Management Plan PIRC Program Identification and Review Committee FBS Fixed Budged Selection PMU Project Management Unit FM Financial Management POM Project Operations Manual FOE Faculty of Education PP Procurement Plan FTI Fast Tract Initiative PPA Project Preparation Advance GCC Gulf Cooperation Council PSC Project Steering Committee GER Gross Enrollment Ratio QA Quality Assurance GDP Gross Domestic Product QAC Higher Education Quality Assurance Council GNI Gross National Income QAU Quality Assurance Unit . GOY Government of Yemen QBS Quality-based Selection HE1 Higher Education Institution QCBS Quality- and Cost-Based Selection HELP Higher Education Learning and Innovation Project QIF Quality Improvement Fund HEMIS Higher Education Management Information System QIT University Program Quality Improvement Team HEQIP Higher Education Quality Improvement Project QPR Quarterly Progress Report ICR lmplementation Completion Report SBD . Standard Bidding Document ICT Information and Communication Technology SCEP Supreme Council for Education Planning IDA International Development Association scu Supreme Council of Universities IFR Interim Financial Report SIL Specific Investment Loan 1SA International Standards on Auditing SOEs Statements of Expenditure KPI Key Performance Indicator sss Single Source Selection LCS Least Cost Selection STR Student to Academic Staff Ratio M&E Monitoring and Evaluation SWOT Strengths, Weaknesses, Opportunities and Threats MDGs Millennium Development Goals TA Technical Assistance MENA Middle East and North Africa TEVT Technical Education and Vocational Training MIS Management Information System TIMMS Trends in International Mathematics and Science Study MM Mitigating Measures TOR Terms of Reference MoE Ministry of Education WA Withdrawal Application MoF Ministry of Finance YER Yemeni Rial Vice President: Shamshad Akhtar Country Director: A. David Craig Country Manager Benson Ateng Sector Manager: Mourad Ezzine Co-Task Team Leaders: Ayesha Vawda and Lianqin Wang .. 11 FOR OFFICIAL USE ONLY Contents I . STRATEGIC CONTEXT AND RATIONALE ............................................................................... 1 A . Country and Sector Issues ............................................................................................................. 1 B . Rationale for IDA Involvement ..................................................................................................... 2 C . Higher Level Objectives to which the Project Contributes ........................................................... 3 I1 . PROJECT DESCRIPTION .............................................................................................................. 3 A . Lending Instrument ....................................................................................................................... 3 B . Project Development Objectives and Key Performance Indicators ....................... ...................... 3 C . Project Components ...................................................................................................................... 4 D . Lessons Learned and Reflected in the Project Design .................................................................. 7 E . Alternatives Considered and Reasons for Rejection ..................................................................... 8 I11 . IMPLEMENTATION ...................................................................................................................... 9 A . Partnership Arrangements ............................................................................................................. 9 B . Institutional and Implementation Arrangements ........................................................................... 9 C . Monitoring and Evaluation of Results and Outcomes ................................................................. 10 D . Sustainability ............................................................................................................................... 10 E . Critical Risks and Possible Controversial Aspects ...................................................................... 10 F . Project Conditions and Covenants .............................................................................................. 12 IV . APPRAISAL SUMMARY ............................................................................................................ 12 A . Economic and Financial Analysis ............................................................................................... 12 B . Technical ..................................................................................................................................... 13 C . Fiduciary ..................................................................................................................................... 14 D . Environment and Social .............................................................................................................. 14 E . Safeguard Policy ......................................................................................................................... 15 F . Policy Exceptions and Readiness ................................................................................................. 15 Annex 1: Country and Sector Background ................................................................................................ 16 Annex 2: Major Related Projects Financed by the World Bank and/or other Agencies ........................... 24 Annex 3: Results Framework and Monitoring .................................................. ;....................................... 25 Annex 4: Detailed Project Description ...................................................................................................... 31 Annex 5: Project Costs .............................................................................................................................. 43 Annex 6: Implementation Arrangements ................................................................................................... 44 Annex 7: Financial Management and Disbursement Arrangements ......................................................... 49 Annex 8: Procurement Arrangements ....................................................................................................... 59 Annex 9: Economic and Financial Analysis .............................................................................................. 68 Annex 10: Safeguard Policy and Issues ..................................................................................................... 81 Annex 1 1: Project Preparation and Supervision ........................................................................................ 82 Annex 12: Documents in the Project File .................................................................................................. 84 Annex 13: Statement of Loans and Credits ............................................................................................... 85 Annex 14: Country at a Glance ................................................................................................................. 86 Annex 15: Country Map ............................................................................................................................ 88 This document has a restricted distribution and may be used by recipients only in the performance of their official duties . Its contents may not be otherwise disclosed without World Bank authorization . REPUBLIC OF YEMEN HIGHER EDUCATION QUALITY IMPROVEMENT PROJECT PROJECT APPRAISAL DOCUMENT Middle East and North Africa Region MNSHD ~-~~~ Date: March 26, 201 0 Co-Team Leaders: Country Director: A. David Craig Ayesha Vawda,
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