OFFICIAL USE ONLY IDA/R2009-0026/1 February 26, 2009 Public Disclosure Authorized Streamlined Procedure For meeting of Board: Tuesday, March 17, 2009 FROM: Vice President and Corporate Secretary Bangladesh - Higher Education Quality Enhancement Project Project Appraisal Document Public Disclosure Authorized Attached is the Project Appraisal Document regarding a proposed credit to the People's Republic of Bangladesh for a Higher Education Quality Enhancement Project (IDA/R2009-0026). This project will be taken up at a meeting of the Executive Directors on Tuesday, March 17, 2009 under the streamlined procedure. Distribution: Executive Directors and Alternates President Bank Group Senior Management Vice Presidents, Bank, IFC and MIGA Public Disclosure Authorized Directors and Department Heads, Bank, IFC and MIGA 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 Group authorization. Document of The World Bank FOR OFFICIAL USE ONLY Report No: 44827-BD PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 54.4 MILLION (US$8 1 MILLION EQUIVALENT) TO THE PEOPLE'S REPUBLIC OF BANGLADESH FOR A HIGHER EDUCATION QUALITY ENHANCEMENT PROJECT February 20,2009 Human Development Sector South Asia Region 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 August 3 1,2008) Currency Unit = Taka Taka 1 = US$0.0144 US$1.oo = Taka69.50 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS AIF Academic Innovation Fund ARP Area Review Panel BANBEIS Bangladesh Bureau ofEducational Information and Statistics BBS Bangladesh Bureau of Statistics BCN Basic Campus Network BdREN Bangladesh Research and Education Network BEC Bid Evaluation Committee B.Ed Bachelor of Education BPC Bangladesh INASP-PEN Consortium CAS Country Assistance Strategy CPTU Central Procurement Technical Unit CTG Care Taker Government DG Director General DP Development Partners DPC Development Policy Credit DPD Director of Planning and Development DPP Development Project Proposal DSC Development Support Credit EMF Environmental Management Framework EMP Environmental Management Plan ERD Economic Relation Division FM Financial Management FMQ Financial Management Questionnaire FMS Financial Management System FY Fiscal Year GOB Government of Bangladesh HE1 Higher Education Institution HEMIS Higher Education Management Information System HEQEP Higher Education Quality Enhancement Project HEQEPU Higher Education Quality Enhancement Project Unit HSC Higher Secondary Certificate ICT Information & Communication Technologies IDA International Development Association IUFRs Interim Unaudited Financial Reports FOR OFFICIAL USE ONLY KPI Key Performance Indicator LAN Local Area Network M&E Monitoring and Evaluation MEU Monitoring and Evaluation Unit MoE Ministry ofEducation MoF Ministry ofFinance MTBF Medium-Term Budgetary Framework MTR Mid-Term Review NCTB National Curriculum and Textbook Board N- HEMIS National Higher Education Management Information System NOC Network Operating Center OM Operation Manual PAD Project Appraisal Document PC Procurement Consultant PCT Procurement Core Team PEC Proposal Evaluation Committee PFM Public Financial Management PFP Procurement Focal Point PIM Project Implementation Manual POP Point ofPresence PPA Public Procurement Act PPT Project Preparation Team PRMP Procurement Risk Mitigation Plan PRSP Poverty Reduction Strategy Paper REN Research and Education Network SA Self-Assessment ssc Secondary School Certificate TST Technical Supervisory Team UAIFS University AIF Secretariat UGC University Grants Commission UGCAIFS University Grants Commission AIF Secretariat UGCBAIF University Grants Commission Board for Academic Innovation Fund U- HEMIS University Higher Education Management Information System UPSC University Project Screening Committee Vice President: Isabel M. Guerrero Country Director: Xian Zhu Sector Director: Michal Rutkowski Sector Manager: Amit Dar Task Team Leaders: Benoit Millot and Subrata S. Dhar 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. BANGLADESH Higher Education Quality Enhancement Project 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 .............................................................................................................. 4 A . Lending instrument ............................................................................................................. 4 B. Project development objective and key indicators .............................................................. 4 C . Project components ............................................................................................................. 5 D. Lessons learned and reflected in the project design.......................................................... 10 E. Alternatives considered and reasons for rejection ............................................................ 11 I11. IMPLEMENTATION ................................................................................................................. 12 A . Partnership Arrangements ................................................................................................. 12 B. Institutional and Implementation Arrangements .............................................................. 13 C . Monitoring and Evaluation ofOutcomes .......................................................................... 14 ... D. Sustainability ..................................................................................................................... 14 E. Critical risks and possible controversial aspects ............................................................... 15 F. Credit conditions and covenants ....................................................................................... 19 IV. APPRAISAL SUMMARY .......................................................................................................... 20 A . Economic and financial analyses ...................................................................................... 20 B . Technical ........................................................................................................................... 21 C . Fiduciary ........................................................................................................................... 22 D. Social................................................................................................................................. 23 E. Environment ...................................................................................................................... 24 F. Safeguard policies ............................................................................................................. 24 G. Policy Exceptions and Readiness ...................................................................................... 25 Annex 1: Country and Sector or Program Background ....................................................................... 26 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ............................... 31 Annex 3: Results Framework and Monitoring...................................................................................... 32 Annex 4: Detailed Project Description ................................................................................................... 39 Annex 5: Project Costs ............................................................................................................................. 55 Annex 6: Implementation Arrangements ............................................................................................... 56 Annex 7: Financial Management and Disbursement Arrangement .................................................... 69 Annex 8: Procurement Arrangements.................................................................................................... 81 Annex 9: Economic and Financial Analysis ........................................................................................... 94 Annex 10: Safeguard Policy Issues ....................................................................................................... 107 Annex 11: Project Preparation and Supervision ................................................................................. 110 Annex 12: Supplemental Information on Academic Innovation Fund Activities ............................. 112 Annex 13: Documents in the Project File ............................................................................................. 118 Annex 14: Statement of Loans and Credits.........................................................................................