OFFICIAL DOCUMENTS THE WORLD BANK 41 Kazybek Bi Str. Bldg. A, 4' floor Tel. +7 (727) 3778220 IBRD* IDA I WORLBANKOROuP Almaty, 050010 Fax +7 (727) 3778276 Central Asia Regional Office Republic of Kazakhstan February 1, 2019 Mr. Alikhan Smailov I 9 /0 'I Minister of Finance Astana REPUBLIC OF KAZAKHSTAN Dear Mr. Smailov, Re: Republic of Kazakhstan: Skills and Jobs Project - Loan No. 8490-KZ Revised Performance Monitoring Indicators We refer to: (i) the Loan Agreement ("the Loan Agreement") between the Republic of Kazakhstan ("the Borrower") and the International Bank for Reconstruction and Development ("the Bank"), dated July 20, 2015 for the Skills and Jobs Project ("the Project"), and (ii) the letter of the Ministry of Finance No AF3-1-24917- H dated December 06, 2018, requesting revision to the performance monitoring indicators for the Project. Accordingly, with reference to the provisions of Section II.A of Schedule 2 to the Loan Agreement, the Borrower hereby confirms to the Bank that the indicators set out in the attachment to this letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Please confirm the Borrower's agreement to the foregoing by countersigning both copies of this letter and returning one of the countersigned copies to us. Upon receipt by the Bank of the copy of this letter countersigned by you, this letter will become effective as of the date of your countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Lilia Burunciuc Regional Director Central Asia AGREED: REPUBLIC OF KAZAKHSTAN By: Title: Date: attachment PERFORMANCE MONITORING INDICATORS Project Development Objectives(s) The proposed Project Development Objectives (PDO) are to improve employment outcomes and skills of target beneficiaries and to improve the relevance of technical and vocational education and training and higher education programs. Project Development Objective Indicators by Objectives/ Outcomes Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 To improve employment outcomes and skills of target beneficiaries Share of unemployed beneficiaries who are employed six months after 0.00 0.00 0.00 0.00 50.00 50.00 completion of the training (Percentage) Share of female unemployed beneficiaries who are employed six 0.00 0.00 0.00 0.00 40.00 40.00 months after completion of training (Percentage) Share of unproductively self- employed beneficiaries who report increased earnings (real terms) one year after 0.00 0.00 0.00 0.00 60.00 60.00 completion of training (Percentage) Share of female unproductively self- employed beneficiaries who 0.00 0.00 0.00 0.00 50.00 50.00 report increased earnings Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 (real terms) one year after completion of training (Percentage) Share of firms employing graduates from Scheme B training programs that are satisfied with the training 0.00 0.00 0.00 0.00 70.00 75.00 financed by the project (Percentage) To improve the relevance of TVET and training and higher education program Share of occupations/specialties covered by educational programs (TVET and higher education) developed based on 0.00 0.00 0.00 9.00 13.00 13.00 OS and/or analysis of professional activity (Percentage) Intermediate Results Indicators by Components Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Building the Foundation of a National Qualifications System Number of registered occupational standards 0.00 0.00 0.00 70.00 230.00 550.00 (Number) Number of new TVET educational program 0.00 0.00 0.00 30.00 45.00 45.00 Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 developed with input from industry developed based on OS and/or analysis of professional activity (Number) Number of new Higher Education programs developed with input from industry and 0.00 0.00 0.00 40.00 70.00 70.00 based on OS and/or analysis of professional activity (Number) Master plan to establish a national qualifications No No No No Yes Yes authority (Yes/No) Enhancing Skills for improved Employment Outcomes and Productivity Share of Employment Centers (ECs) with staff that successffully completed 0.00 0.00 0.00 0.00 40.00 40.00 training provided by the project (Percentage) Share of short-term training providers that meet the requirements of the pre- 0.00 0.00 0.00 15.00 20.00 20.00 qualified training provider list (Percentage) Number of unemployed people registered at the EC or EU 50,000.00 50,000.00 50,000.00 55,000.00 60,000.00 65,000.00 (Number) Number of unemployed or unproductively self-employed 0.00 0.00 0.00 0.00 5,000.00 15,450.00 beneficiaries who complete Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 project financed-training (Number) Number of female unemployed or unproductively self- employucied bnef e 0.00 0.00 0.00 0.00 4,000.00 5,500.00 employed beneficiaries who complete project financed training (Number) Number of unproductively self- employed people registered at 3,000.00 3,000.00 3,500.00 3,500.00 4,000.00 4,500.00 the EC or EU (Number) Number of firms selected to receive training Scheme B training financed by the Project 0.00 0.00 0.00 0.00 80.00 100.00 (Number) Number of employees of firms who receive Scheme B of SETP 0.00 0.00 0.00 0.00 3,200.00 4,700.00 (Number) Project Management and Monitoring and Evaluation Share of grievances addressed related to delivery of project benefits registered - 0.00 0.00 0.00 75.00 80.00 85.00 disaggregated by gender. (Percentage)