Document of 
                           The World Bank 
           
  Public Disclosure AuthorizedPublic Disclosure AuthorizedReport No: 60303-GH 
                                 
                        RESTRUCTURING PAPER 
                                 
                              ON A 
                                 
                    PROPOSED PROJECT RESTRUCTURING  
  Public Disclosure AuthorizedPublic Disclosure Authorized 
                               OF  
                                 
                       EDUCATION SECTOR PROJECT  
                         (CREDIT NO.3865-GH) 
                                 
                         Approved on March 9, 2004 
                                 
                             TO THE 
                                 
  Public Disclosure AuthorizedPublic Disclosure AuthorizedREPUBLIC OF GHANA 
                                 
                            February 2011 
                                 
  Public Disclosure AuthorizedPublic Disclosure Authorized
                                          ABBREVIATIONS AND ACRONYMS 
                    
                   APOW        Annual Programs of Work 
                   COTVET  Technical Vocational Education and Training 
                   EdSeP       Education Sector Project 
                   EMIS        Education Management Information System 
                   GER         Gross Enrollment Rate 
                   GES         Annual Program of Work 
                   JHS         Junior High School 
                   MOFEP       Ministry of Finance and Economic Planning 
                   PPS         Pilot Programmatic Scheme 
                   SCB Sector Capacity Building 
                   TALIF       Teaching and Learning Innovation Fund 
                   TIMSS       Trends in Mathematics and Science Study 
                   APOW        Annual Programs of Work 
                    
                                   Regional Vice President:      Obiageli K. Ezekwesili 
                                          Country Director:      Ishac Diwan 
                                 Sector Manager / Director:      Peter Materu 
                                        Task Team Leader:        Peter Darvas 
                                                             2
                                                             ANNEX 2: 
                                                Reallocation of Proceeds 
                      
                     _______________________________________________________________________ 
                      
                                            GHANA —EDUCATION SECTOR PROJECT 
                                                                P050620 
                                                                CREDIT 
                                                         Restructuring Paper 
                      
                     1.      Based on the request of the Government of Ghana, the original credit amount of 
                     SDR 52,700 for the Ghana, Education Sector PROJECT (Credit No. 3865) is reduced by 
                     SDR 4,450,000 to SDR 48,249,600. The SDR 4,450,000 will be cancelled from the GES 
                     categories for goods, consultancies and Annual Programs – Part B as follows: 
                            Category                         Allocation USD                      % of Financing 
                                                         Current Revised Current  Revised 
                            Proposed Cancellation           -            7,000,000.00          -                  - 
                                                       82,396,450.00 75,396,450.00             -                  - 
                     1-A    Goods 11,100,850.00 10,600,850.00 100% of foreign                               100% of foreign 
                           (a) MOE                      9,107,387.50     9,107,387.50   expenditures and   expenditures and 
                           (b) GES                      1,563,500.00     1,063,500.00      90% of  local      90% of  local 
                           (c) NCTE                       429,962.50       429,962.50        expenditure        expenditure 
                     2-A    Consultancy 
                            Services/Training           6,074,197.50 4,574,197.50                                  
                           (a) MOE                      2,376,520.00     2,376,520.00        90%                90% 
                           (b) GES                      3,127,000.00     1,627,000.00 
                           (c) NCTE                       570,677.50       570,677.50 
                     3      Annual Programs –Part B    28,971,655.00    23,971,655.00        100%              100% 
                     4-A    SDF Sub Project                781750.00       781,750.00        100%              100% 
                     4-B    Sub Projects – Part C      32,911,675.00    32,911,675.00        100%              100% 
                     5-A Operating Costs                2,188,900.00  2,188,900.00 
                           (a) MOE                        547,225.00       547,225.00        90% 90% 
                           (b) GES                        312,700.00       312,700.00 
                           (c) NCTE                     1,328,975.00     1,328,975.00 
                     6      Refunding of PPF              367,422.50       367,422.50                              
                     7      Unallocated 0.00 0.00   
                     2.      The cancellation is based on a portfolio-wide restructuring requested by the 
                     Ghana Ministry of Finance and Economic Planning (MOFEP) in June and October, 2010 
                     with the purpose of redirecting IDA funds from slow disbursing projects with imminent 
                     closing dates to key economic sectors/areas which will ensure quick disbursements of 
                     funds.  
                                                                    3
                      3.      In addition of the cancellation, we are proposing to increase the withdrawal limit 
                      from the current US$2 million to US5 million to facilitate the effective implementation 
                      and completion of all the activities.  
                       
                      4.      The Project was restructured in June 2009, including: (i) revisions to the project 
                      development objectives; (ii) introduction of new activities and improved alignment of 
                      planned activities with the national sector strategy; (iii) revisions to outcome and output 
                      indicators and targets; (iv) a reallocation of Credit proceeds; and (v) a two-year extension 
                      of the project’s closing date from October 31, 2009 to October 31, 2011. As a result of 
                      the first project restructuring, the project became more realistic, better harmonized with 
                      Government objectives and also helped implementation. Although later various external 
                      factors influenced negatively the implementation, overall the project is now becoming 
                      marginally satisfactory in the Bank and has also improved satisfaction on with the 
                      Government. However, the initial delays may only be partially overcome and new 
                      Government strategic priorities require reallocation of resources. 
                       
                      5.      The proposed restructuring does not affect the Project Development Objectives, 
                      the results framework, the project components and activities or implementation 
                      arrangements. The bulk of the funds are taken off from the Annual Programs of Work 
                      (APOW) under the Pilot Programmatic Scheme and, to a smaller extent from services and 
                      goods complementing the APOWs. The APOWs are being pursued by the Districts this 
                      year according to the original project operational design. The APOWs are targeting 
                      improvements in education performance at district level. The indicators measuring 
                      improvements at district level were adjusted during the first project restructuring (as 
                      discussed above) to make the project objective more focused and realistic. The proposed 
                      cancellation is a reflection of earlier delays that affected negatively some of the outcomes 
                      but did not warrant any change because of the first restructuring.  
                               
                      6.      The projects three components are (i) Sector Capacity Building (SCB), (ii) Pilot 
                      Programmatic Scheme (PPS), and (iii) Teaching and Learning Innovation Fund (TALIF).    
                      The objective of the SCB component is to (i) improve the capacities of DEO offices in 
                      the 61 (used to be 53) deprived districts in delivering basic education.  Following the 
                      restructuring after mid-term, a second objective in post basic education was added to; (ii) 
                      improve the capacities of selected Technical Training Institutes.  This was under the new 
                      Skills Development Fund sub component 4-A to be implemented by the Council for 
                      Technical Vocational Education and Training (COTVET).  The objective of the PPS 
                      component is to support, on a pilot basis, the programmatic approach that will be applied 
                      to the whole sector. This programmatic approach aims at: (i) improving Gross Admission 
                      rate to primary in deprived districts, (ii) improving Gross Enrollment rate at JHS 1 in 
                      deprived districts, (iii) improving Gender parity index at JHS level, (iv) increasing the 
                      number of schools in the Northern Regions; and (v) Ensuring that capitation pilot grant is 
                      piloted in deprived districts.  The objective of the TALIF component is to raise the 
                      quality of teaching and learning performance; sharpen the relevance, competences and 
                      skill content of tertiary education, improve the efficiency by which institutions operate 
                      their academic programs, and open up greater access to tertiary level academic programs. 
                       
                                                                        4