World Bank Office, Beijing OFFICIAL L DOCUMENTS '

February 13, 2014

Mr. Wang Xuejun

Public Disclosure Authorized Governor Anhui Province Anhui Provincial Department of Labor and Social Security No. 333, Changjiang Zhong Lu Hefei, Anhui, 230001 People's Republic of China

Ms. Liu Hui Governor Ningxia Hui Autonomous Region Labor and Social Security Department of Ningxia Hui Autonomous Region No. 40, Shanghai Dong Lu Yinchuan, Ningxia Hui Autonomous Region, 750001 People's Republic of China Public Disclosure Authorized

Mr. Guo Shuqing Governor Shandong Province Shandong Provincial Department of Labor and Social Security No. 22, Jiefang Lu, Lixia District Jinan, Shandong, 250014 People's Republic of China

Dear Messrs./Mmes. Wang, Liu, Guo: Public Disclosure Authorized Re: China Rural Migrant Skills Development and Employment Project (Loan 7559-CN) Amendment to Project Agreement

We refer to the Project Agreement dated August 13, 2008 between the International Bank for Reconstruction and Development (the Bank) and Anhui Province, Ningxia Hui Autonomous Region, and Shandong Province for the above-referenced project (the Project Agreement). I also refer to the letter dated November 12, 2013, requesting certain amendments to the Indicators set out in the Annex to the Schedule Project Agreement.

We are pleased to inform you that, after due consideration, the Bank accedes to this request and consequently proposes to hereby amend such Annex to read as set out in the Attachment to this letter. Autonomous Region, and Public Disclosure Authorized Please confirm the agreement of Anhui Province, Ningxia Hui Shandong Province, respectively to this amendment letter by countersigning and dating the forms of confirmation set forth below, and returning one fully signed original of this amendment letter to us.

1 EMR 2 16 & (100004) 16thFloor, China World Tower 2, No.1 Jianguomenwai Avenue, Beijing 100004, China rmb3AmnflAA* Tel. EIM: (86-10) 5861-7600; Fax. *X: (86-10) 5861-7800 Loan 7559-CN Page 2 February 13, 2014

This amendment shall become effective as of the date of countersignature, upon our receipt of your confirmation.

Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Mara Warwick Acting Country Director, China Authorized Representative

CONFIRMED ANHUI PROVINCE

By: _) 'v Authorized Representative

Name: YA^;A

Title: P?ePeLX i 7.ie&1 f/,~~ot~P/o"

Date: 20/

CONFIRMED NINGXIA HUI AUTON )MOYS REGION

By:______Authorized Represen(ative

Name: )7 f/

Title: OL N - GVe~*4&(of At efJ-

Date: Aa"N.'( 2-1A 2oly

CONFIRMED SHANDONG PROVINCE

By: _)_ F_ Authorized Representative

Name: ______

Title: [- -,e 2ote of&e

Date: AQ-.; 2 oI\ Loan 7559-CN Page 3 February 13, 2014

Cc: Ms. Zou Jiayi Director General International Department Ministry of Finance Beijing, China Loan 7559-CN Page 4 February 13, 2014

ATTACHMENT

Annex to SCHEDULE Indicators

PDO Project Outcome Indicators Use of Project Outcome Information Support the transition of rural I. % of graduates of the project I Track the number of graduates workers to urban areas to training institutions that find from the project training i access better employment employment within 6 months of institutions. opportunities that improve training completion (total and their incomes and working among students originating from conditions rural areas)

2. % of graduates of the project 2. Track the number of graduates training institutions that find from the project training employment within 6 months in institutions. the occupational field for which they are trained (total and among students originating from rural areas)

3. Wage of graduates of long term 3. Track wage of graduates who training program of the project received long term training from training institutions (total and the project training institutions. among students originating from rural areas) 4. Track the number of graduates 4. # of graduates receiving short, receiving short, medium and medium and long term training long term training from the from the project training project training institutions institutions (total and among students originating from rural areas) Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring Component 1: Component 1: Component 1: Expanded and improved 5. % of graduates from the project 5. Track the number of graduates skills development training institutions by type of receiving short, medium and opportunities for migrants training (long, medium, and long term training from the short terms) project training institutions

6. % of graduates from the project 6. Track completion of training training institutions obtaining a (training progress) diploma or certificate (total and among students originating from rural areas)

7. % of graduates from the project 7. Track performance of trainees training institutions that obtained (performance) National Occupational Qualification Certification (total and amonMstudents onrinatin Loan 7559-CN Page 5 February 13, 2014

from rural areas)

8. Ratio of actual average weekly hours of lab use in project 8. Track capacity utilization of training platforms to designed training platforms (efficiency) capacity (use a common denominator for all training platforms) (Shandong only)

9. Ratio of students taking "ordered training" requested by enterprises to total students in the project 9. Track partnership with industry training institutions (total and among students originating from rural areas)

10. % of graduates from the project training institutions that find jobs in firms with which the school 10. Assess value of partnership with has a partnership (total and industry in smoothing the among students originating from transition to work rural areas)

Component 2: Component 2: Component 2: improved provision of labor 11. Frequency of workers using I L.Track use of employment center market information and employment services services by workers services to migrant workers (counseling, job referral, and guidance, etc.) in project- invested localities annually (total and among users originating from rural areas)

12. Frequency of workers using LM 12. Track use of LM information information system in project- system invested localities monthly

Component 3: Component 3: Component 3: Improved working conditions 13. # of rural migrant workers 13. Track use of legal assistance of migrants receiving legal assistance in services provided by the project project-invested localities annually

14. # of policy studies to inform 14. Track project design and actual policy reform and formulation of delivery of policy studies relevant to rights protection for rural migrant rights protection of rural migrant workers at the national level workers

are Note: In this project, "migrant students" refer to those students holding rural Hukou, including those who migrants and currently rural migrant workers in urban areas, those who will potentially become rural to urban short term (below graduates who will join the labor force in rural areas. Unless otherwise noted, "training" includes 3 months), medium terms (3-12 months), and long term training (above 12 months). Loan 7559-CN Page 6 February 13, 2014

30-Apr- 31-Jul- 31-Jul- 31-Jul- 31-Dec- PDO Project Outcome PDO___Indicators Province Type 09 II 12 13 14 1. % of graduates of the Anhui Total 51% 98% 98% 98% 98% project training Rural 48% 95.6% 96.2% 97% 97.6% institutions that find R9 employment within 6 Ningxia Total 86% 90% 90% 89% 90% months of training Rural 86% 88% 88% 89% 90% completion (total and Ra88%%90 among students Shandong Total 63% 76% 89% 87% 91% originating from rural 94% areas) Rural 71% 82% 91% 92% 2. % of graduates of the Anhui Total 20% 75% 76% 78% 85% project training 78% 84.5% institutions that find Rural 16% 66% 71% employment within 6 Ningxia Total 64% 75% 86% 87% 90% Support the months in the 62% 75% 84% 85% 87% transition of rural occupational field for Rural workers to urban which they are trained Shandong Total 54% 68% 76% 75% 78% areas to access (total and among a. better students originating from Rural 53% 70% 76% 76% 79% employment rural areas) 2840 3300 opportunities Anhui Total 1430 2300 2420 that improve 3. Wage of graduates of Rural 1400 2220 2310 2700 3100 their incomes long term training R. and working program of the project Ningxia Total 1808 1630 2104.5 2396 2650 conditions training institutions (total Rural 1770 1655 2092 2326 2600 and among students originating from rural Shandong Total 1300 1500 2300 2598 2792 areas) Rural 1300 1450 2200 2540 2775 42223 48564 64758 4. # of graduates Anhui Total 37123 39985 receiving short, Rural 30258 34987 37463 43556 57632 medium and long term training from project Ningxia Total 23858 20810 21140 22795 25000 training institutions Rural 19747 18521 18607 19965 22500 (total and among students originating Shandong Total 22050 25865 27553 30815 32190 27105 from rural areas) Rural 17902 22217 23496 25763 31-Jul- 31-Jul- 31-Dec- Intermediate Intermediate Outcome Pro%ince Type 30-Apr- 31-Jul- Outcomes Indicators 09 11 12 13 14 Anhui Total 100% 100% 100% 100% 1l00% Short term 14% 39% 40% 41% 35% Medium 44% 19% 23% 35% 40% Long-term 42% 42% 37% 24% 25% 100% 100% Component 1: 5. % of graduates from NTotal 100% 100% 100% 0% 0%0 Expanded and the project training Ningxia Tt10 1% 78% 82% 83% 85% improved skills institutions by type of Short term 67% development training (short, Medium- 21% 11% 8% 9% 10% opportunities for medium and long term migrants terms) Long-term 12% 11% 10% 8% 5%

Shandong Total 100% 100% 100% 100% 100% Short term 24% 23% 22% 22% 22% Medium- 21% 24% 25% 24% 24% term I Loan 7559-CN Page 7 February 13, 2014

Long-term 55% 53% 53% 54% 54% Anhui Total 85% 100% 99.2% 99.5% 99% 6. % of graduates from Rural 83% 97.5% 98.4% 99% 99% the project training institutions obtaining a Ningxia Total 85% 91% 96% 95% 95% diploma or certificate 89% 91% 95% (total and among Rural 80% 89% students originating from Shandong Total 92% 95% 98% 99% 99% rural areas) Rural 94% 95% 94% 99% 100% 7. % of graduates from Anhui Total 50% 100% 98% 99% 98% the project training Rural 46% 95% 96% 98% 98% institutions that obtained National Occupational Ningxia Total 20% 60% 96% 95% 95% Qualification 91% Certification (total and Rural 20% 55% 94% 93% among students Shandong Total 52% 77% 82% 95% 96% originating from rural areas) Rural 53% 77% 82% 95% 96% 8. Ratio of actual average weekly hours of lab use in project training platforms to designed capacity (use a Shandong common denominator for all training platforms) (Shandong only) 72% 91% 91% 92% 93% 9. Ratio of students Anhui Total 20% 23% 38% 45% 60% taking "ordered training" Rural 20% 23.5% 38% 44.6% 60% requested by enterprises to total students in the Ningxia Total 17% 51% 83% 92% 95% project training institutions (total and Rural 15% 50% 80% 88% 90% among students Shandong Total 35% 43% 45% 57% 56% originating from rural areas) Rural 41% 49% 48% 60% 60% 57% 79% 79% 82% 85% 10.%ofgraduatesfrom Anhui Total the project training Rural 56% 75% 75.6% 80% 84% institutions that find jobs 87% 89% 90% in firms with which the Ningxia Total 83% 85% school has a partnership Rural 80% 80% 85% 86% 88% (total and among students originating from Shandong Total 43% 30% 50% 66% 68% rural areas) Rural 41% 49% 58% 71% 75% 11. Frequency of Anhui Total 30566 338501 423206 514509 623547 workers using 280658 345345 employment services Rural 17154 159252 245608 Component 2: (counseling, job referral, Ningxia Total 85956 83569 93171 91376 92000 Improved and guidance, etc.) in 73260 81931 79540 80000 provision of project-invested Rural 76660 labor market localities annually (total Shandong Total 395400 432000 476500 586500 618000 information and and among users services to originating from rural Rural 298000 313000 404000 487000 509000 migrant workers areas) 12.Frequency of workers Anhui 9630 23642 36427 39524 56356 using LM information Ningia 7 7000 system in project- gx7178 7307 6756 6835 Loan 7559-CN Page 8 February 13, 2014

invested localities Shandong monthly Shandong_ 35600 40000 48000 161000 172000 13. # of rural migrant Anhui 2853 3750 4268 5396 6150 workers receiving legal 4832 5000 assistance in project- Ningxia 7643 7307 6503 Component 3: invested localities 18300 21000 Improved annually Shandong 4000 4500 5600 working 14. # of policy studies to conditions of inform policy reform and migrants formulation of rights National 9 9 9 9 9 protection for rural migrant workers at the national level 2014 Loan 7559-CN Page 9 February 13,

Fan, H. bcc: Messrs./Mmes.: SX. Chen (EDS 17); R. Klaus, M. Warwick, X. Chen, GQ. Luo, Y. Zhu, X. Peng, T. Su (EACCF); K. Funk, L. Melgaard, YN. Jia (EACCQ); E. Sennhauser (EASOS); P. Leonard (EASDE); XQ. Yu P. O'Keefe (EASHD), J. Arulpragasam, E. Glinskaya, DW. Wang (EASHS); JX. Chu, HY. Wang, Y. Zhuo (CTRLN); Minneh M. Kane, L. Radovic (LEGES); E. Arisoy, K. Awanyo, XW. Guo (EASR2), R. Tarallo, R. Cunningham, HX. Li (EASFM); CW. Sun (EASCS); ZX. Zhu, J. Song (Consultants); China HD; EAPVP Clearance; EASOS Review; CTRLN-CHINA; WBDocs.