NA

E-32, Agargaon, Sher-e-Bangla Nagar,GPO Box 97, Dhaka 1207, Bangladesh

INTERNATIONAL BANK FOR RECONSTRUCTION AND) DE LOPMENT Tel (80-2) 815-9001, (880) 96-0440-4000INTERNATIONAL DEVELOPMENT ASSCCIATION rFax (880-2) 815-9030, Telex 642302 IDA BJDOUU N TS http lwww worldbank org bd

November 26, 2012

Mr. lqbal MahmoodSenior SecretaryEconomic Relations Division I ERD)Ministry of FinanceBlock 8, Room 3Sher-e-Bangla NagarDhaka-1207

Dear Mr. Mahmood:

Third Primary Education Development Program (IDA Credit 4999-BD)Amen dment to the Financing Agreement

We refer i:o the Financing Agreement (the Agreement), between the People'sRepublic of Bangladesh (the Recipient) and the International Development Association'the Association), dated Octoler 1', 2011 for the above Project as subsequently amended.We also refer to the letter dat,d October 25, 2012 from the Economic Relations Divisionof the Recipient's Ministry f F nance, requesting the Association to restructure theProject by revising the proto.ol of the Sector Finance Disbursement Linked Indicator

'DLI).

The Association hereby agrees to amend the Agreement by replacing Schedule 4with the revised Schedule 4 atiached to this Letter of Amendment.

It is the Association's policy to make publicly available the Agreement and anyinformation related thereto, including this Letter of Amendment. By confirming itsagreement below, 1he Recipie it consents to disclosure of this Letter of Amendment afterLetter of Amendment has becc me effective.

Except as specifically amended hereby, all other terms and conditions of theAgreement shall remain unchanged and in full force and effect.

Please con irm your a!reerient with this Letter of Amendment by countersigning,dating and returning to us the (nclosed copy of this letter.

Please confirm your agreement to the foregoing on behalf of the Recipient bycountersigning and dating Ih form of confirmation below and returning one signedoriginal copy of this Letter of Am!ndment for our files. This Letter of Amendment duly

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Mr. Iqbal Mahmood -2- November 26, 2012

countersigned by an authori;:ed re,presentative of the Recipient shall become effective asof the date of cou itersignatuie.

Sincerely,

Ellen GoldsteinCountry Director

CONFIRMED:

PEOPLE'S REPUBLIC OF BANGLADESH

Bv

Dale: ) )

(At astoo Khe n)Additional Secret 3ry

Econoric Relationr clivis10Ministry of Finaco

SCHEDULE 4

Disbursement Linked Indicators (DLIs)

I - Improving Quality of the Learning Environment and Measurement of Student Learning

DLI Baseline Year 0 (May-.June aVer 1 Year 2 Yenr 3 (Anril/May 2014_)I PrntnnI2011) (April/May (April/May

2012) 2013)1. Textbooks/ Textbook At least 75% of all At least 80% of At least 85% of At least Grades 1 textbook Definition: Grades 1 to 5 textbooks

I Corricnlum I ditrihiitinn to Ilicihip -chn)q I qff elh ioihl nll pliaihlp I reviced hqPd on nPiw -nnrn-.Pr k, alTR Qrp to kbe m

schools spread receive all schools receive schools receive competency-based available to all eligible schools1111PIuviig UIC ove beveal appIovU texLoKN al appovU all approveu curriculum developed by (through me Unus) and denveredtimeliness of months (Grades I to 5) textbooks textbooks NCTB to all schools under the purview oftextbook within one month (Grades 1 to 5) (Grades I to 5) MOPME and MOE. Eligibledistribution Textbook of school opening within one within one month At least 90% of all eligible schools are all those mentioned inand quality of content still day month of school of school opening schools receive all the Book distribution guidelines andtextbook based on opening day day approved textbooks (incl. following NCTB curriculumcontent current revised Grade I textbook)

curriculum Third party Monitoring within one month of school Source: DPE's Administrationvalidation of system of opening day Division's reconciled reports basedmonitoring textbook on receipts signed by head mastersmechanism distribution and compiled by UEOs and DPEOs,completed improved with and (ii) reports of textbooks

actions agreed by delivery at Upazila levels submittedMOPME and by NCTB; third party validationMOE based on reports.validation results

RCA 248423. L WUI 64145 C FAX (202) 477-6391

DLI Baseline Year 0 (May-June Year 1 Year 2 Year 3 (April/May 2014) Protocol2011) (April/May (April/May

2012) 2013)2. Teacher Low standards Comprehensive All preparatory Dip-in-Ed Dip-in-Ed diploma rolled Definition: The plan and strategyEducation and TED plan prepared steps for diploma piloted out in 57 PTIs with number for primary teacher education andand competencies and adopted by introduction of in at least 7 PTIs of instructors according to development (TED plan) definesDevelopment guiding teacher MOPME Dip-in-Ed with number of the Plan the professional(TED): training (in- completed in instructors standards/competencies of

service) accordance with according to the teachers, head teachers andImproving the Plan Plan AUEOs and the strategy forteacher improving pre-service (with the

i trainine I introduction of a new I)in-in- Fd)effectiveness in-service (CPD), teacher

quality mentoring.

Preparatory steps forintroduction of the Dip-in-Ed include sufficientinstructors in each PTI,curriculum, trainingmaterials & assessmenttools development, andtraining of instructors asspecified in the TED plan.

Source: TED plan asapproved by MOPMESecretary; reports fromtraining division andNAPE, curriculum andtraining materials andadministrative data

DLI Baseline Year 0 (May-June Year 1 Year 2 Year 3 (April/May 2014) Protocol2011) (April/May (April/Tlay

2012) 2013)

3. Grade 5 Grade 5 A 5 -year Action Revised 2011 Action plan Action plan implemented Definition: The Grade 5 actionCompletion completion plan for Grade 5 implemented with at least 25% of items plan specifies the number of newExam: exam improvements in Completion with at least 10% competency-based competency-based items to be

implemented Grade 5 Exam, based on of items introduced in the 2013 introduced each year, with theImproving the for all primary Completion Exam action plan and competency- grade 5 exam and an aim of achieving a fullyquality of school students developed by pilot results based introduced additional 25% of competency-based exam by end-primary in 2009. NAPE and implemented, in the 2012 Grade competency-based items 2016completion approved by incl. guidelines 5 exam and an pilotedexam and the Content MOPME and developed for additional 15% of Analysis of results includes: (i)regular focused on rote including revising markers and competency- analysis of pass rates by gender,measurement learning test items to training of based items Analysis of 2013 Grade 5 subjects, Upazilas conducted by

DLI Baseline Year 0 (May-June Year 1 Year 2 Year 3 (April/May 2014) Protocol2011) (April/Mav (April/May

i 2012) 2013)of learning gradually transform markers piloted completion exam results DPE; and (ii) analysis of NAPE

exam into and content completed by of marking and scoring of acompetency-based Analysis of 2012 DPE and NAPE and results sample of answered scripts intest Analysis of Grade 5 disseminated selected Upazilas

2011 Grade 5 completion examNew test items completion results and content Source: Action plan as approved

developed by exam results completed by DPE by DG, NAPE and MOPME;NAPE on selected and content and NAPE and sample of test items andcompetencies and completed by results questionnaire of grade 5 exam:piloted with DPE and NAPE disseminated test analysis reports by DPE andsev.nmnanvincr nnd reqidtq T%T A Dr

guidelines for pilot disseminatedtest administrationand training of testadministrators

4. Teacher Approximately, Assessment of All teachers and All teachers and All teachers and head Definition: Needs-based analysisand Head 5,000 to 6,000 yearly needs for head teachers' head teachers' teachers' positions (regular (conducted by DPE) require aTeacher vacancies to be new teachers and positions positions (regular vacancies and newly detailed review of EMIS andrecruitment: filled every head teachers based (regular vacancies and created positions) filled teacher database to identify schools

year. In on verification of vacancies and newly created according to merit-based below minimum standards for STREnsuring addition, new current teaching newly created positions) filled recruitment procedures and 1:56) followed by site verificationquality of new positions force, and on positions) filled according to on needs basis. by UEOs and AUEOs.teachers hired needed to needs-based according to merit-based

reduce infrastructure merit-based recruitment And at least 90% of new The competitive, merit-basedclassroom development plan recruitment procedures and teachers and head teachers teacher recruitment rules currentlyovercrowding. completed and procedures and on needs basis. positions to be created for in place would be applied to all

approved by on needs basis. current year in accordance ecruitment. They include: (i)Teacher MOPME And at least 90% with needs assessment pplications screened by committeerecruitment And at least of new teachers filled. or on-line): (ii) anonymous exam;procedures in 90% of new and head teachers Iiii) weight given to exam (80),

DLI Baseline Year 0 (May-June Year 1 Year 2 Year 3 (April/May 2014) Protocol2011) (April/May (April/May

2012) 2013)place are teachers and positions to be Recruitment rules with academic record (5) and viva vocecompetitive head teachers created for career paths for teachers (15)and merit- positions to be current year in and head teachers; careerbased created for accordance with paths, recruitment and

current year in needs assessment promotion rules for DPE Source: Needs-based analysis ofaccordance with filled. officers( field and head new teacher positions approvedneeds quarters) approved by by MOPME; administrative data,assessment Government of Bangladesh sample of exams, implementationfilled. plans and schedules for

recruitment cycles; career paths,Revise-d fina! -4rtmn -1-rooin ueproposal for for teachers, head teachers andcareer paths for DPE officers as approved byteachers and Government of Bangladeshhead teachers, through a Government ordercareer paths, issued by the Ministry of Publicrecruitment and Administration (status of approvalpromotion rules process to be communicatedfor DPE officers annually)(field and headquarters)submitted byMOPME to thecommittee of theJoint Secretary,Regulations,Ministry ofPublicAdministration

II - Increasing Participation and Reducing Social Disparities

Sub-Program Baseline Year 0 (May- Year 1 Year 2 (April/May Year 3 (April/May ProtocolJune 2011) (April/May 2013) 2014)

2012)5. Pre- About 1.4 Integrated At least 15,000 At least 60% of PPE Definition: 1 year PPE programPrimary: million Guidelines database of PPE PPE teachers teachers in GPS trained in organized for children aged 5.

children prepared and provision by type placed and trained using new pre-primaryStrengthening entering endorsed by of provider in areas of greatest curriculum and materials Guidelines define the role ofchildren's Grade 1 with MOPME on the completed need NGOs in the delivery of PPE andreadiness for some PPE role of NGOs in PPE provision in at least specify the types of partnershipslearning prior pre-primary Plan for PPE Curriculum, 75% of GPS schools that can exist with the

experience education. expansion standards and Government, in particular, inTnro(.,ed b- ~ mq'tpr,Alc frTr VPP cpTi~in n~~ cnl,'

PPE provision MOPME and teacher training PPE, training and coachingin 43% of GPS approved by teachers, preparing materials,mostly through MOPME and providing services ifnon- required in the catchment area.governmentproviders The integrated database of

providers would include thelocation of services and,combined with the child surveydata, would provide a map ofareas of greatest need for PPE.

The expansion plan, based onneeds identified through thedatabase, standards for PPE andthe role of NGOs/private sector,defines the pace of recruitmentand training, the type andduration of training, timing ofclasses, and expansion pace.

Sub-Program Baseline Year 0 (May- Year 1 Year 2 (April/May Year 3 (April/May ProtocolJunc2 011) %April/'May 20A13) 2014)

2012)

PPE teachers will be recruitedthrough a transparent process;they can be regular primaryteachers, or contract teachershired by schools with n the localcommunities.

Source: Letter of endorsement ofguidelines by MOPME; providerdqitnhqs, eypnnzon ninn

approved by MOPME;curriculum, standards andmaterials, ASC, CAMPE reportsand administrative data

6.Infrastructu 53% of GPS, Infrastructure needs At least 10% of At least 30% of At least 55% of planned Definition: The plan for prioritizedre 49% of assessment planned needs- planned needs- needs-based needs-based infrastructure

RNGPS and completed and 5 - based based infrastructure infrastructure specifies criteria and standardsReducing 31% of year plan for infrastructure development development completed used for estimates of needs. Basedclassroom community prioritized needs- development completed according to agreed on these criteria, the plan providesovercrowding schools based infrastructure completed according to agreed criteria and technical estimates of needs to be coveredand improving overcrowded finalized and according to criteria and standards over 5 years for: (i) additionalschool approved by agreed criteria technical standard classrooms and teachers rooms:environment Need for about MOPME and technical Third party validation of (ii)additional toiletss, urinals for

32,000 new standards Third party compliance of students and teachers; (iii) repairclassrooms, validation of infrastructure of existing toilets; (iv) drinking120,000 new compliance of development with criteria water; (v) school maintenance and___________ toilets for __se_ninfrratructure and technical standards repair.

Sub-Program Baseline Year 0 (May- Year 1 Year 2 (April/May Year 3 (April/May ProtocolJune 2011) (Ap..il/May 2013) 2014)

2012)teachers and development with completed Building specifications andstudents, repair criteria and technical standards are thoseof about 18,000 technical standards designed and approved by LGEDexisting ones,drinking water Source: Needs-based infrastructuresupply. plan approved by MOPME

Secretary; construction contracts;construction supervision reports byLGED engineers; third partysupervision reports

III - Improving Program Planning and Management, and Strengthening Institutions

Sub-Program Baseline Year 0 (March Year 1 (April/May Year 2 (April/May Year 3 (April/May Protocol2011) 2012) 2013) 2014)

7.School Limited Circular/ SMC guidelines At least 60% of At least 75% of schools Definition: A SLIP is a schoolgovernance: involvement of Guidelines for in accordance with schools having having prepared SLIPs level improvement plan prepared by

SMCs in SLIPs revised, SLIP guidelines) prepared SLIPs and and received funds the SMC, and the schoolStrengthening school (including revised and received funds according to SMC community.SMC's and management monitoring approved by according to SMC guidelines validated byUpazilas for and arrangements), MOPME guidelines(1) XX% expenditure tracking A UPEP is a planning instrumentsupporting improvement approved by of schools having survey (at least 25% of setting out ways to support schoolsschool MOPME and 50% of schools received guidelines Upazilas having received and the quality agenda.management Low capacity distributed to all having prepared and prepared SLIPs funds based on UPEPS

of Upazila schools SLIPs and received guidelines and validated Revised guidelines foroffices to funds according to At least 10% of by expenditure tracking SLlPs/TIPEPs specify howprovide support the SMC guidelines Upazilas having survey improvement plans should beto schools prepared UPEPs prepared, what are expenditures

Revised guidelines and received funds eligible for block grants as well asfor UPEPs, according to UPEP the fund flow mechanism, tracking

Sub-Program Baseline Year 0 (March Year 1 (April/May Year 2 (April/May Year 3 (April/May Protocol2011) 2012) 2013) 2014)

including guidelines. and training. They will allow foridentification of differential support to schoolsexpenditures forblock grants, SMC guidelines specifyapproved by membership, roles andMOPME and responsibilities of SMC membersdistributed to all (including fiduciary)Upazilas

Source: SLIPs, UPEPs, and SMCsguidelines as approved byMOPME; MOF's approval of

data; sample analysis of SLIPs andUPEPs

8. Education Links between FYI 1-12 FYI2-13 Primary FY13-14 Primary FYI4-15 Primary Definition: Primary educationsector budgetary Primary education budget education budget education budget aligned financing adequate to implementfinancing: process and education aligned with aligned with with program framework the goverment's PEDP II1, not less

medium-term budget aligned program program and consistent with 14-19 than the originally approvedEnsuring education with program framework and framework and MTBF primary education allocation foradequate sector strategy framework and consistent with 12- consistent with 13- FY20 10-11 and whereby PEDP IIIfinancing of still weak consistent with 17 MTBF 18 MTBF Actual primary share of overall primary educationprimary 11-16 MTBF expenditures for FYI3-14 budget is incrementally increasingeducation Low level of Actual primary Actual primary within 15% deviation of each year.program and public education expenditures for the originally approvedimproving financing of expenditures for FY12-13 within budget Process: May review will check ifmedium-term primary FY1-12 within 15% deviation of in the draft primary educationbudgeting education 15% deviation of the originally budget all PEDP III program

the originally approved budget components have adequate budget,approved budget and if draft primary educationexpendiures6fo

Sub-Program Baseline Year 0 (March Year 1 (April/May Year 2 (April/May Year 3 (April/May Protocol' 2011) 2012) 2013) 2014)

budget is consistent with the MTBFand exceeds Taka 80 billion (i.e.,the originally approved primaryeducation allocation for FY 2010-

11).

In May, the July-March expenditurestatement will be reviewed to assessthat expenditure is on track.

Final compliance with DLI to beAhptL.-d ;n Oco~rNc~phrNn

the basis of: (i) the originallyapproved budget allocation for theongoing FY; (ii) the originallyapproved budget allocation for theprevious FY, and (iii) June IFR forthe full primary educationexpenditure during the previous FY.

Source: Budget circulars I & 2;Detailed budget framework andexpenditure forecast; draft budget(May), and expenditure statementuntil March, approved budget fornext FY; simplified AOP and IFRJune.

S -_ _ Raseine Year 0 (March Year 1 (April/Mav Year 2 (April/May Year 3 (April/May Protocol

2011) 2012) 2013) 2014)

9. M&E: M&E and ASC New ASC 2013 Census 2014 Census Definition: the current census

EMIS questionnaire questionnaire fully administration, administration, report questionnaire collects information

Improving the insufficiently and software implemented in report preparation preparation and on enrollment, repetition, teachers

quality of the staffed adjusted to meet 2012 census. and dissemination dissemination complete qualification and training, physical

Annual School PEDPIII complete within the within the academic year infrastructure, furniture and

-ess(ASC)' IT upr reqnuiurementszaaei aalblt-_-fACl' r M'PlA'n develoned ycdmiear: covering at least 6types aviaiiyof teach ing-learning

data and the functions and approved by expanding s of primary schools materials. To adjust to PEDPIII

effectiveness preventing DPE for expanding coverage to at least needs, new information is required

of the M&E adequate and coverage of 6 types of schools Third party validation of on pre-primary education,,

A-+ I mn~nitnrina vztem I census data completed itextbook distribution and stipend

analysis and (to all primary Internal data beneficiaries

ettective M&L schools) WIL1 vat1iationperiodic validations mechanisms in Internal data validation mechanisms

Census data place and include background checks during

covering only 4 IT function validation of data data entry and data cleaning rules

types of separated from accuracy completed

primary EMIS function; Source: EMIS, M&E units

schools EMIS and M&Estaffed with at least2 statisticians each