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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1802 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF EURO 47.0 MILLION (US$ 50.0 MILLION EQUIVALENT) TO THE REPUBLIC OF SERBIA FOR AN INCLUSIVE EARLY CHILDHOOD EDUCATION AND CARE (ECEC) PROJECT Public Disclosure Authorized January 30, 2017 Education Global Practice 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 November 30, 2016) Currency Unit = EUR EUR 0.94 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CFU Central Fiduciary Unit CG Consultative Group CPF Country Partnership Framework CQS Selection based on Consultants Qualifications DILS Delivery of Improved Local Services ECEC Early Childhood Education and Care EMIS Education Management Information System EMP Environmental Management Plan ESMF Environmental and Social Management Framework FBS Fixed Budget Selection FM Financial Management FSA Family Social Assistance GAC Grant Approval Committee GDP Gross Domestic Product GOM Grant Operations Manual GoS Government of Serbia GRS Grievance Redress Service IBRD International Bank for Reconstruction and Development IC Individual Consultant Selection IEP Individual Education Plan IPF Investment Project Financing ISC Inter-Sectoral Commission LCS Least-Cost Selection LSA Local Self Administration LSG Local Self Government MICS Multiple Indicator Cluster Survey MoCTI Ministry of Constructions, Transport and Infrastructure MoESTD Ministry of Education, Science and Technological Development MoF Ministry of Finance MoLEVSA Ministry of Labor, Employment, Veterans and Social Affairs MoPALSG Ministry of Public Administration and Local Self-government NDF Novak Djokovic Foundation i NGO Non-Governmental Organizations OECD Organization for Economic Co-operation and Development OSF Open Society Foundation PAD Project Appraisal Document PDO Project Development Objective PMU Project Management Unit POM Project Operations Manual PPP Preparatory Preschool Program QBS Quality-Based Selection QCBS Quality and Cost-Based Selection REF Roma Education Fund RPF Resettlement Policy Framework RSD Republic of Serbia Dinar SCCPE Social Care for Children and Preschool Education SCD Systematic Country Diagnostic SDIS Strategic Development Indicators SIEF Strategic Impact Evaluation Fund SIPRU Social Inclusion and Poverty Reduction Unit SORS Statistical Office of the Republic of Serbia SSS Single Source Selection ToR Terms of Reference WBG World Bank Group WBIF Western Balkans Investment Framework WG Working Group Regional Vice President: Cyril E. Muller Country Director: Ellen A. Goldstein Senior Global Practice Director: Amit Dar Practice Manager: Mario Cristian Aedo Inostroza Task Team Leader: Sophie Naudeau; Marijana Jasarevic ii REPUBLIC OF SERBIA Inclusive Early Childhood Education and Care (ECEC) Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ........................................................................................................1 A. Country Context .................................................................................................... 1 B. Sectoral and Institutional Context ......................................................................... 1 C. Higher Level Objectives to which the Project Contributes .................................. 4 II. PROJECT DEVELOPMENT OBJECTIVES ..........................................................................5 A. PDO....................................................................................................................... 5 B. Project Beneficiaries ............................................................................................. 5 C. PDO Level Results Indicators ............................................................................... 6 III. PROJECT DESCRIPTION ......................................................................................................6 A. Project Components .............................................................................................. 6 B. Project Cost and Financing ................................................................................. 11 C. Lessons Learned and Reflected in the Project Design ........................................ 11 IV. IMPLEMENTATION ............................................................................................................12 A. Institutional and Implementation Arrangements ................................................ 12 B. Results Monitoring and Evaluation .................................................................... 13 C. Sustainability....................................................................................................... 14 D. Role of Partners ................................................................................................... 14 V. KEY RISKS ...........................................................................................................................15 A. Overall Risk Rating and Explanation of Key Risks ............................................ 15 VI. APPRAISAL SUMMARY .....................................................................................................15 A. Economic and Financial (if applicable) Analysis ............................................... 15 B. Technical ............................................................................................................. 16 C. Financial Management ........................................................................................ 16 D. Procurement ........................................................................................................ 18 iii E. Social (including Safeguards) ............................................................................. 18 F. Environment (including Safeguards) .................................................................. 19 G. World Bank Grievance Redress .......................................................................... 20 Annex 1: Results Framework and Monitoring...............................................................................21 Annex 2: Detailed Project Description ..........................................................................................31 Annex 3: Implementation Arrangements .......................................................................................46 Annex 4: Implementation Support Plan .........................................................................................60 Annex 5: Economic and Financial Analysis ..................................................................................62 iv PAD DATA SHEET Republic of Serbia Inclusive Early Childhood Education and Care (ECEC) Project (P157117) PROJECT APPRAISAL DOCUMENT . EUROPE AND CENTRAL ASIA 0000009252 Report No.: PAD1802 . Basic Information Project ID EA Category Team Leader(s) P157117 B - Partial Assessment Sophie Naudeau, Marijana Jasarevic Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 22-Feb-2017 31-Aug-2022 Expected Effectiveness Date Expected Closing Date 17-August-2017 30-Dec-2022 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Mario Cristian Aedo Amit Dar Ellen A. Goldstein Cyril E Muller Inostroza . Borrower: Ministry of Finance Responsible Agency: Minister of Education, Science and Technological Development Contact: H. E. Mr. Mladen Sarcevic Title: Minister Telephone No.: 381-112688-047 Email: [email protected] . Project Financing Data(in USD Million) [ X ] Loan [ ] IDA Grant [ ] Guarantee [ ] Credit [ ] Grant [ ] Other Total Project Cost: 50.00 Total Bank Financing: 50.00 v Financing Gap: 0.00 . Financing Source Amount Borrower 0.00 International Bank for Reconstruction and 50.00 Development Total 50.00 . Expected Disbursements (in USD Million) Fiscal 2017 2018 2019 2020 2021 2022 2023 0000 0000 0000 Year Annual 0.00 6.00 8.00 10.00 10.00 8.00 8.00 0.00 0.00 0.00 Cumulati 0.00 6.00 14.00 24.00 34.00 42.00 50.00 0.00 0.00 0.00 ve . Institutional Data Practice Area (Lead) Education Contributing Practice Areas Social Protection & Labor Proposed Development Objective(s) The PDO is to improve access to quality Early Childhood Education and Care (ECEC) services, in particular for children from socially disadvantaged backgrounds. Components Component Name Cost (USD Millions) Expanding the supply of preschool spaces 34.00 Strengthening the quality of preschool services 5.00 Supporting young children and families 9.00 Project management, technical assistance, and monitoring and 2.00 evaluation . Systematic Operations Risk- Rating Tool (SORT) Risk Category Rating 1. Political and Governance Moderate 2. Macroeconomic Substantial 3. Sector Strategies and Policies Low 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Moderate vi 6. Fiduciary Substantial 7. Environment and Social Moderate 8. Stakeholders Moderate 9. Other OVERALL Moderate . Compliance Policy Does the project depart from the
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