The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) REPORT NO.: RES34708 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF EARLY CHILDHOOD CARE AND DEVELOPMENT FOR FLOATING VILLAGES PROJECT APPROVED ON JUNE 10, 2016 TO CAMBODIA MINISTRY OF EDUCATION, YOUTH AND SPORT EDUCATION EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Ellen A. Goldstein Senior Global Practice Director: Jaime Saavedra Chanduvi Practice Manager/Manager: Tobias Linden Task Team Leader: Simeth Beng i The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) ABBREVIATIONS AND ACRONYMS CB - Community-Based ECCD - Early Childhood Care and Development ECERS - Early Childhood Environmental Rating Scale GPE - Global Partnership for Education HB - Home-Based JSDF - Japan Social Development Fund SCI - Save the Children International ii The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) BASIC DATA Product Information Project ID Financing Instrument P146085 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 10-Jun-2016 10-Jun-2019 Organizations Borrower Responsible Agency Ministry of Education, Youth and Sport Save the Children International Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 iii The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) Project Development Objective (PDO) Original PDO The PDO is to improve access to quality Early Childhood Care and Development (ECCD) services through community and home-basedprograms for 0 to 5-year-olds, particularly for those from disadvantaged background, in the targeted areas. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A2429 30-May-2016 10-Jun-2016 10-Jun-2016 10-Jun-2019 2.79 2.25 .54 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Summary of Project Status 1. The Early Childhood Care and Development (ECCD) for Floating Villages Project (hereinafter referred to as the Project), with grant funds provided by the Government of Japan under the Japan Social Development Fund (JSDF), supports the Government of Cambodia, through Save the Children International (SCI) as an implementing agency, to improve access to quality ECCD services through community-based (CB) and home-based (HB) ECCD programs. To this end, the Project supports: (i) the construction of onshore and floating CB ECCD centers; (ii) establishment of HB ECCD programs; (iii) building capacity of CB ECCD center facilitators as well as government officials for improving CB ECCD services; (iv) training to core mothers and parent group leaders for conducting HB ECCD programs; and (v) maternal literacy program for promoting ECCD activities. The baseline and end-line studies are included to assess the output and outcome results and indicators agreed in the project results framework. 2. The Project was to be implemented over three-years from June 2016 – June 2019. The first Project restructuring was undertaken in May 2018 following recommendations from the Mid-Term Review in November 2017. It included (i) reduction of the end target of the PDO Level Indicator One – Number of children enrolled in CB ECCD program to 770 children; (ii) reduction of the end target of the PDO Level Indicator Two – Number of children enrolled in HB ECCD program to 10,070 children; (iii) reduction of the Intermediate Results Indicator One – Number of ECCD centers to be constructed to 11 centers (4 onshore and 7 floating); and (iv) reduction of the end target of the Intermediate Results Indicator Two – Number of parents participating in HB ECCD program to 8,483 parents. Although the last archived ISR (approved in January 2019, based on the ISM in August 2018) rated MU for the overall progress towards the PDO, the ISM in March 2019 upgraded the rating to MS as (i) the four onshore centers have been completed and utilized, and (ii) other soft components are going well (The ISR is now in draft and will be processed shortly). iv The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) The table below summarizes the progress of the indicators both at the PDO and the intermediate results levels. Thus far, three out of seven indicators have been achieved and two are on track to be achieved. The remaining two indicators related to the completion of the CB ECCD center construction (percentage of CB ECCD programs rated as level 5 overall on the adjusted Early Childhood Environmental Rating Scale (ECERS) and number of ECCD centers constructed) are currently off track, but will be achieved by the proposed extended closing date. Indicators Target (after first Current value On track, off track or restructuring) achieved PDO Level Results Indicators Number of children enrolled in CB 770 770 Achieved ECCD program Number of children enrolled in HB 10,070 9,098 On track ECCD program Percentage of CB ECCD programs 50 0 Currently off track, but will be rated as level 5 overall on the achieved by the proposed adjusted ECERS extended closing date. Intermediate Results Indicators Number of ECCD centers with health 11 4 Currently off track. The target corners constructed number is reduced to 7 centers because of the government’s relocation policy in some of the project sites. Number of parents participating in 8,483 7,622 On track HB ECCD program Number of parents/ mothers who 150 198 Achieved participated and completed maternal literacy programs Number of communes that address 24 32 Achieved ECCD services in their official annual plans of commune council 3. The Project Mid-Term Review highlighted key implementation challenges especially the delays in construction of the CB ECCD centers due to the pilot nature of the design and construction of both onshore and floating centers. As of April 2019, four onshore ECCD centers have been completed. For floating ECCD centers, the construction was originally divided into two phases with three and four centers respectively. The construction of the first phase in Pursat province started in August 2018. However, the construction of this lot has been delayed due to the following reasons: (i) unavailability of steel materials in the domestic market. The materials had to be imported from Vietnam and delivered to the construction site since November 2018. The steel structure has been completed, therefore, this will no longer be an issue; (ii)deviation of material specifications that requires adjustment from the project’s architect. Due to the unavailability of certain steel structure elements and plastic drums with the original specifications in the domestic market, SCI worked with the project’s architect company to reduce the thickness of such materials and conducted the tests to ensure that they meet the strength requirement for the construction of the floating ECCD centers. This issue has therefore been resolved. The construction was resumed only in December 2018. v The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) 4. The actual progress of the construction of the three floating ECCD centers in Pursat province to-date is 80 percent. SCI has discussed the status with the contractor and paid attention to details on pending tasks to be completed by August 2019. The detailed construction plan has been set up and agreed upon between SCI and the contractor. SCI is closely monitoring the progress to ensure that the contractor strictly adheres to the plan. It has been made clear to all parties that a future project extension beyond December 2019 is not possible. The Bank task team assesses that it is very likely that the remaining construction can be completed by November 2019, as proposed, for the start of the new school year. 5. In October 2018 the Bank was informed that four floating villages in Kampong Chhnang Province, where the second phase of floating ECCD centers were to be constructed (Ses Slab, Yuk Kunthor, Kampong Uor and Peam Khnang Khnong), would be relocated to established villages on the mainland according to the Government’s relocation policy. The World Bank assessment concluded that construction of new ECCD centers in the resettlement villages would require a Due Diligence study to determine whether the resettlement program meets the Bank’s Involuntary Resettlement Policy (OP 4.12) requirements, and in areas where it does not meet the policy requirements, a Corrective Action Plan would need to be agreed upon to meet the policy requirements. In light of the costs and considerable time and effort required to undertake this additional work and the impending project closure (even with the extension proposed here), it was agreed between the Bank and SCI that the four relocation villages would be excluded from the project. 6. The exclusion of the four floating centers from the Project will generate a significant amount of savings, approximately US$95,000, under the Category 3 (Works). SCI proposes to reallocate the savings to Category 4 (training and workshop) to strengthen the institutional capacity to manage ECCD activities at the sub-national levels, under the Category 4 (Training and Workshops). This will include the following activities:(i) refresher training for CB ECCD facilitators, (ii) refresher training for HB ECCD facilitators, (iii) refresher training for preschool facilitators, whose training was supported by the Global Partnership for Education (GPE)-financed project, which was ended in 2017, and (iv) finalizing the discussion with all stakeholders at district and commune levels on roles and responsibilities before project closure. The proposed activities will help build institutional capacity for the local governments and community groups to self-sustain in delivering the ECCD activities for rural populations on and around the Lake. The training will also ensure that the centers will meet the minimum standards of community preschools, so that they will receive the budget from the government (for center operations and salaries of contractual teachers), as the community preschools under the closed GPE project. The table below summarizes the proposed changes in each of the expenditure categories. 7. The other components are going relatively well. CB ECCD programs, despite the absence of completed CB ECCD centers, are able to be organized in temporary class settings at available existing premises (e.g. village chief’s house, teachers’ house, etc.). HB ECCD activities continue to be carried out in all 137 project villages with an increasing number of participating parents. ECCD networking and coordination at the commune, district and provincial levels are reportedly ongoing on a regular basis. The monitoring system is in place and the end-line study will be undertaken to assess the project impact and document key lessons learned for further work on ECCD in the floating school areas. Expenditure Category Original Allocation in Current Allocation Proposed Revised the Grant Agreement after the first Budget (May 2019) (June 2016) restructuring, approved in (May 2018) (1) Consultants’ Services 557,990 551,990 551,990 vi The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) (2) Goods 159,945 149,091 149,091 (3) Works 600,768 654,658 558,992 (4) Training and Workshop 1,052,803 1,015,767 1,111,433 (5) Operating Costs 418,494 418,494 418,494 Grand Total 2,790,000 2,790,000 2,790,000 8. As of May 15, 2019, the project disbursed 80.08% of committed budget (US$ 2.79 million), with the total disbursed amount of US$ 2.25 million. (Note: US$2.79 million was RETF for SCI and US$0.21 million was BETF for the Bank team’s supervision) B. Rationale for Restructuring 9. In order to ensure that the construction of the three floating ECCD centers in Pursat province will be fully completed and allow time for the project to track the total number of children reached through all ECCD centers, both onshore and floating, in the new school year (starting in November 2019), SCI has requested for six-month no-cost extension from the original closing date of June 10, 2019 to December 31, 2019. This no-cost extension will bear no cost to JSDF, the project funder. SCI has agreed in writing that any additional costs incurred by such extension will be borne by them. 10. The Bank’s task team and SCI agree that there will be no further delays on construction. Realistic construction schedules have been agreed between SCI and the contractor. SCI is advised to monitor the construction schedules closely, regularly check if there is enough on-site skilled workers employed by the contractor, and check if there are sufficient on-site materials. 11. With the project savings of approximately US$ 95,000, SCI has requested for reallocation from Works category to Training and Workshops category to include activities that will strengthen the institutional capacity to manage ECCD activities at the sub-national levels as well as to strengthen the facility resilience for sustainable impacts of the project investment. II. DESCRIPTION OF PROPOSED CHANGES C. Project Closing Date 12. It is proposed to extend the closing date from June 10, 2019 to December 31, 2019, a six-month extension, with no additional cost to JSDF. D. Reallocation Across Disbursement Categories 13. Reallocation from Category 3 (Works) of US$95,666 to Category 4 (Training and Workshop) would revise the allocations of each category as follows: Category 3 from US$654,658 to US$558,992; and Category 4 from US$1,015,767 to US$1,111,433. E. Reduced Target Value of Intermediate Result Indicator One and revised end target dates vii The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) 14. The target value of Intermediate Result Indicator One – Number of ECCD centers with health corners constructed would be reduced from 11 to 7 centers. In addition, the end date of some indicators would be revised to reflect the extension and give more time for the targets to be achieved after construction is completed. I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE viii The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) Number of children enrolled in Community-based ECCD program financed by the project Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 775.00 770.00 Revised Date 10-Jun-2016 13-Aug-2018 29-Nov-2019 Number of children enrolled in Home-based ECCD program financed by the project Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 7258.00 10070.00 Revised Date 11-Jul-2016 13-Aug-2018 29-Nov-2019 Percentage of Community Based ECCD program rated as level 5 overall on the adjusted Early Childhood Environmental Rating Scale throuhg classroom observation Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 50.00 Revised Date 11-Jul-2016 13-Aug-2018 29-Nov-2019 Intermediate Indicators IO_IND_TABLE Number of ECCD centers with health corners constructed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 7.00 Revised Date 10-Jun-2016 13-Aug-2018 29-Nov-2018 Number of parents participating in HB ECCD program Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 6078.00 8483.00 Revised ix The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) Date 11-Jul-2016 13-Aug-2018 29-Nov-2019 Number of parents/mothers who participated and completed maternal literacy programs Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 198.00 150.00 No Change Date 11-Jul-2016 13-Aug-2018 31-May-2019 Number of communes that address ECCD services in their official annual plans of commune council Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 32.00 24.00 No Change Date 11-Jul-2016 13-Aug-2018 31-May-2019 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A2429 Effective 10-Jun-2019 31-Dec-2019 30-Apr-2020 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed TF-A2429-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: TFA2429 - CONS SERV 551,990.00 427,276.35 551,990.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: TFA2429 - GOODS x The World Bank Early Childhood Care and Development for Floating Villages Project (P146085) 149,091.00 121,671.60 149,091.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: TFA2429 - WORKS 654,658.00 247,543.20 558,992.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: TFA2429 - TRAINING & WS 1,015,767.00 1,015,767.00 1,111,433.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: TFA2429 - OPERATING COSTS 418,494.00 242,088.83 418,494.00 100.00 100.00 Total 2,790,000.00 2,054,346.98 2,790,000.00 xi