Document of The World Bank Report No 75315-LC RESTRUCTURING PAPER ON A PROJECT RESTRUCTURING OF OECS (SAINT LUCIA) SKILLS FOR INCLUSIVE GROWTH PROJECT CREDIT 4300-SLU APPROVED BY THE BOARD ON MAY 8, 2007 TO SAINT LUCIA MARCH 13, 2013 ABBREVIATIONS AND ACRONYMS CVQ Caribbean Vocational Qualifications MIS Management Information System NVQ National Vocational Qualifications OECS Organization of Eastern Caribbean States PDO Project Development Objective TVET Technical and Vocational Education and Training Regional Vice President: Hasan A. Tuluy Country Director: Françoise Clottes Sector Director: Keith Hansen Sector Manager: Reema Nayar Task Team Leader: Harriet Nannyonjo ii Restructuring Status: Final Restructuring Type: Level two Last modified on date : 03/13/2013 1. Basic Information Project ID & Name P097141: OECS (St Lucia) Skills for Inclusive Growth Country St. Lucia Task Team Leader Harriet Nannyonjo Sector Manager/Director Reema Nayer/ Keith Hansen Country Director Françoise Clottes Original Board Approval Date 05/08/2007 Original Closing Date: 03/15/2012 Current Closing Date 09/15/2013 Proposed Closing Date [if applicable] NA EA Category C-Not Required Revised EA Category EA Completion Date Revised EA Completion Date 2. Revised Financing Plan (US$m) Source Original Revised BORR 0.87 0.87 IDA 3.50 3.50 Private Sector 0.95 0.00 Total 5.32 4.37 3. Borrower Organization Department Location Government of Saint Lucia St. Lucia Ministry of Finance, Economic Affairs and National Development 4. Implementing Agency Organization Department Location Ministry of Education and Culture St. Lucia iii 5. Disbursement Estimates (US$m) Actual amount disbursed as of 02/20/2013 2.99 Fiscal Year Annual Cumulative 2013 0.40 3.39 2014 0.11 3.50 Total 3.50 6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N Does the restructured project trigger any new safeguard policies? If yes, please select from N the checklist below and update ISDS accordingly before submitting the package. 7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The objective of the first phase (operation) of the APL is to assist the Government of St. Lucia to increase the employability of youth through private-sector driven training. iv SAINT LUCIA OECS (SAINT LUCIA) SKILLS FOR INCLUSIVE GROWTH PROJECT CONTENTS Page SUMMARY ................................................................................................................................. 1 PROJECT STATUS .................................................................................................................. 1 PROPOSED CHANGES .......................................................................................................... 1 ANNEX 1: RESULTS FRAMEWORK AND MONITORING....................................... 3 v OECS (SAINT LUCIA) SKILLS FOR INCLUSIVE GROWTH PROJECT RESTRUCTING PAPER SUMMARY 1. The major change and rationale for this proposed Level Two Project Restructuring is to revise the PDO indicator in order to better measure the Project’s impact on the employability of youth over the long term. PROJECT STATUS 2. The Project was approved by the Board on May 8, 2007 and became effective on December 19, 2007. It was first restructured on December 5, 2011, and it is expected to close on September 15, 2013. It has three components: i) Skills training for unemployed youth; ii) Improving the policy framework for delivering of training; and iii) Project management and institutional strengthening. 3. Under Component 1, the Project has been successful in enrolling a total of 945 (against an end-of-Project target of 870) trainees, and diversified training with 38.7 percent of the youth enrolled in training other than hospitality (against an end-of-Project target of 30). 4. However, Saint Lucia’s economy has been hard-hit by the financial crisis, and this has affected the job market and employment has been cyclical particularly in the hospitality sector, which has affected trainee ability to secure jobs. In addition, as employers have been reducing employees to adjust to a weaker market, their willingness to take on trainees for traineeships has weakened as well, affecting the number of completed traineeships and consequently the number of youth certified. As a result, about 44.6 percent of the youth are employed 15 months after the start of training (against an end-of-Project target of 65 percent). Interviews with trainees and training providers indicate that those who have managed to secure employment before completion of training to obtain certification have in most cases dropped out and are the first ones to be let go when the business situation deteriorates. 5. Under Component 2, the Project has been successful in vetting 87 standards (against an end of Project target of 85) and pre-qualified 117 accredited training providers (against an end of Project target of 65). A labor market assessment has also been completed. 6. Under Component 3, the Government has taken steps to strengthen institutional capacity to implement and monitor Project implementation through the hiring of personnel and developing the requirements of the Management Information System (MIS). PROPOSED CHANGES Results Indicators 7. The PDO indicator relating to “percentage of youth enrolled in the training schemes who are employed fifteen months after the start of their training� has been dropped, since it is not a 1 good measure of the Project’s impact on employability of youth. This is because employment opportunities are driven by other factors beyond the scope of the Project, including the state of the economy. This indicator will continue to be monitored for information purposes. 8. A new PDO indicator has been added: “Number of youth certified at level 1 or above�. Since certification is an asset that enhances ability of a trainee to get a job and / or keep one, it is a much stronger long-term measure of employability. The changes to the Results Framework are summarized in Annex 1. 9. The intermediate indicator “Number of NVQs/CVQs issued� has been dropped since it measures the same thing as the new PDO indicator. 10. End of Project targets for the following intermediate indicators have been changed as follows to reflect current achievements: o Number of unemployed youth enrolled in training increased from 870 to 945. o Percentage of enrolled youth in training in other sectors than hospitality increased from 30 to 38 percent. o Number of pre-qualified or accredited training providers increased from 65 to 117. o Number of standards vetted increased from 85 to 87. 2 ANNEX 1 Results Framework and Monitoring ST. LUCIA: OECS (SAINT LUCIA) SKILLS FOR INCLUSIVE GROWTH PROJECT Project Development Objective (PDO): The objective of this first phase of the APL is to assist the Government of St. Lucia to increase the employability of youth through private sector-driven training D=Dropped Baseline Cumulative Target Values Frequency Data Responsibili C=Continued (2007) Core N= New Source/Met ty for Data R=Revised 2008 2009 2010 2011 2012 2013 hodology Collection UoM Value Actual Actual Actual Actual Actual Target PDO Level Results Indicators Follow- up/tracking Percentage of youth of trainees Semi- employed fifteen months D % 0 0 0 0 32 44.6 65 annually and NSDC after the start of the training comparable group of non-trainees Project 1. Number of youth certified Semi- NSDC / R # 0 0 0 0 92 176 407 administration at Level I or above annually TVET Unit documents Intermediate Results Intermediate Result (Component one): To increase levels of training among unemployed youth through the establishment of a competitive training scheme that finances private sector-driven training and traineeships. Project 1. Number of unemployed # of Semi- R youth 0 0 0 0 415 945 945 annually administration NSDC youth enrolled in the training documents 2. Percentage of enrolled Project youth that become certified Semi- C % 0 0 0 0 0 45 65 annually administration NSDC one year after the start of the documents training 3. Percentage of enrolled Project Semi- youth in training in other R % 0 0 0 13 31.4 38.7 38 annually administration NSDC sectors than hospitality documents 3 Intermediate Result (Component Two): To develop an improved policy framework for delivering training by enhancing OECS collaboration in training and introducing occupational standards to increase quality and value of training. Number of NVQ/CVQ or Project Semi- NSDC / International certifications D # 0 0 0 0 92 133 407 annually administration TVET Unit awarded documents 4. Number of pre-qualified or Project # of Semi- accredited training providers R TPs 0 0 35 48 62 117 117 annually administration NSDC documents Project 5. Number of Standards Semi- R # 0 0 0 0 65 87 87 administration TVET Unit Vetted annually documents Project 6. National Qualifications Yes/ Semi- C No 0 No No No No No Yes annually administration NSDC register in operation documents 7. Action plan to improve the relevance and sustainability of training a) none a) none a) done One-time C None/ PCU / a. Study for Career Done delivery of Reports NSDC Mobility b) none b) none b) none b) none b) none b) none b) done report b. Labor market needs assessment Result (Component Three): To strengthen institutional capacity to better implement, monitor and plan training through the strengthening of the Project implementing agencies 8. Percentage of above indicators and of additional implementation indicators C % 0 0 0 25 50 100 100 Annually Reports NSDC reported on a yearly basis by NSDC 4