Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 77131-KZ
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED grant
IN THE AMOUNT OF US$ 21.763 MILLION
TO THE
REPUBLIC OF KAZAKHSTAN
FOR A
YOUTH CORPS PROJECT
March 25, 2014
Eastern Europe and Central Asia Human Development Unit
Education Department
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.CURRENCY EQUIVALENTS
(Exchange Rate Effective December 18, 2013)
Currency Unit / = / Kazakhstan TengeKZT 154.13 / = / US$1
FISCAL YEAR
January 1 / – / December 31ABBREVIATIONS AND ACRONYMS
BYCCA
CAIG
CDD
CPS
CSR
CYA
ECA / Babylon Youth Centers
Coordinating Agency
Coordinating Agency Implementation Guidelines
Community-driven Development
Country Partnership Strategy
Corporate Social Responsibility
Committee on Youth Affairs of the Ministry of Education and Science
Europe and Central Asia
FBS / Fixed Budget Selection
FM
FRM / Financial management
Feedback and Resolution Mechanism
GAC / Governance and Anti-Corruption Action Plan
GDP
GOK
HBS
HEI
HS
HQ / Gross Domestic Product
Government of Kazakhstan
Household Budget Survey
Higher Education Institution
High School
Headquarters
IBRD
IDA
IC / International Bank for Reconstruction and Development
International Development Association
Individual Consultants
ICB
ICC / International Competitive Bidding
Information and Communication Campaign
IFR
ISP / Interim Financial Report
Implementation Support Plan
KZT
LFS
LCS / Kazakhstan Tenge
Labor Force Survey
Least Cost Selection
M&E / Monitoring and Evaluation
MOES / Ministry of Education and Science
MOLSP / Ministry of Labor and Social Protection of the Population
MTR
NA
NCB
NCS / Midterm Review
Non Applicable
National Competitive Bidding
Non-Cognitive Skills
NGO
NEE
NEET / Non-governmental organization
Neither in Education or Employed
Neither in Education, Employment or Training
OECD ORAF / Organization for Economic Co-Operation and Development
Operational Risk Assessment Framework
PDO
PFM
PISA
PMU / Project Development Objective
Public Finance Management
Programme for International Student Assessment
Project Management Unit
POM
PP
PPL
PPP
P-RAMS
QCBS / Project Operational Manual
Procurement Plan
Public Procurement Law
Purchasing Power Parity
Procurement Risk Assessment and Management System
Quality and Cost Based Selections
SDC
SSS
SW / Swiss Agency for Development and Cooperation
Single Source Selection
Staff Weeks
TA
TOR / Technical assistance
Terms of Reference
TVE / Technical and Vocational Education
UNDB
UNDP / United Nations Development Business
United Nations Development Program
UNESCO
UNICEF
UNV
WHO
WP / United Nations Educational, Scientific and Cultural Organization
United Nations Children's Fund
United National Volunteers
World Health Organization
Working Poor
Regional Vice President: / Laura Tuck
Country Director: / Saroj Kumar Jha
Acting Sector Director: / Alberto Rodriguez
Acting Sector Manager: / Andrea Guedes
Task Team Leader: / Keiko Inoue
COUNTRY
Youth Corps Project
TABLE OF Contents
Page
I. STRATEGIC CONTEXT 1
A. Country Context 1
B. Sectoral and Institutional Context 2
Youth Policy Framework and Programming 5
C. Higher Level Objectives to which the Project Contributes 6
II. PROJECT DEVELOPMENT OBJECTIVE 6
A. PDO 6
Project Beneficiaries 6
PDO Level Results Indicators 7
III. PROJECT DESCRIPTION 7
A. Project Components 7
Component 1: Support Community-Based Service Learning and Life Skills Development 8
Component 2: Support Institutional Development of the Committee on Youth Affairs for Youth Policy Implementation 14
Component 3: Project Management, Monitoring, and Evaluation Activities 15
B. Project Financing 15
Project Cost and Financing 15
IV. IMPLEMENTATION 16
A. Institutional and Implementation Arrangements 16
B. Results Monitoring and Evaluation 16
C. Sustainability 17
V. KEY RISKS AND MITIGATION MEASURES 18
A. Risk Ratings Summary Table 18
B. Overall Risk Rating Explanation 18
VI. APPRAISAL SUMMARY 18
A. Economic and Financial Analysis 18
Expected Benefits and Costs 19
Rationale for Public Intervention 20
Rationale for Bank Involvement 20
B. Technical 20
C. Financial Management 21
D. Procurement 23
E. Social (including Safeguards) 24
F. Environment (including Safeguards) 24
Annex 1: Results Framework and Monitoring 25
Annex 2: Detailed Project Description 31
Component 1: Support Community-Based Service Learning and Life Skills Development 31
Component 2: Support Institutional Development of the Committee on Youth Affairs for Youth Policy Implementation 38
Component 3: Project Management, Monitoring, and Evaluation Activities 39
Annex 3: Implementation Arrangements 40
Annex 4: Operational Risk Assessment Framework (ORAF) 50
Annex 5: Implementation Support Plan 54
Annex 6: Economic and Financial Analysis 56
Annex 7: Profile of Young People in Kazakhstan 64
PAD DATA SHEETKazakhstan
Kazakhstan "Youth Corps" program (P127966)
PROJECT APPRAISAL DOCUMENT
.
EUROPE AND CENTRAL ASIA
ECSH2
Report No.: PAD257
.
Basic Information
Project ID / Lending Instrument / EA Category / Team Leader
P127966 / Investment Project Financing / C - Not Required / Keiko Inoue
Project Implementation Start Date / Project Implementation End Date
01-Aug-2014 / 29-Dec-2017
Expected Effectiveness Date / Expected Closing Date
01-Aug-2014 / 29-Dec-2017
Joint IFC
No
Sector Manager / Sector Director / Country Director / Regional Vice President
Andrea Guedes / Alberto Rodriguez / Saroj Kumar Jha / Laura Tuck
.
Borrower: Republic of Kazakhstan (“Borrower” includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant)
Responsible Agency: Ministry of Education and Science of the Republic of Kazakhstan
Contact: / Aslan Sarinzhipov / Title: / Minister, MOES
Telephone No.: / 7-7172-74-99-53 / Email:
.
Approval Authority
Approval Authority
RVP Approval
.
Project Financing Data(in USD Million)
[ ] / Loan / [ X ] / Grant / [ ] / Other
[ ] / Credit / [ ] / Guarantee
Total Project Cost: / 21.763 / Total Bank Financing: / 0.00
Total Cofinancing: / Financing Gap: / 0.00
.
Financing Source / Amount
Borrower / 0.00
Trust Funds / 21.763
Total / 21.763
.
Expected Disbursements (in USD Million)
Fiscal Year / 2015 / 2016 / 2017 / 2018 / 0000 / 0000 / 0000 / 0000 / 0000
Annual / 3.00 / 6.00 / 9.00 / 3.763 / 0.00 / 0.00 / 0.00 / 0.00 / 0.00
Cumulative / 3.00 / 9.00 / 18.00 / 21.763 / 0.00 / 0.00 / 0.00 / 0.00 / 0.00
.
Proposed Development Objective(s)
The proposed Project Development Objective is to promote young people’s community engagement and life skills through a community-based service learning program, especially for vulnerable youth.
.
Components
Component Name / Cost (USD Millions)
Support Community-Based Service Learning and Life Skills Development / 20.00
Support Institutional Development of the Committee on Youth Affairs for Youth Policy Implementation / 0.763
Project Management, Monitoring, and Evaluation Activities / 1.00
.
Institutional Data
Sector Board
Education
.
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector / Sector / % / Adaptation Co-benefits % / Mitigation Co-benefits %
Education / Adult literacy/non-formal education / 100
Total / 100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project.
.
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme / Theme / %
Human development / Education for the knowledge economy / 100
Total / 100
.
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects? / Yes / [ ] / No / [ X ]
.
Does the project require any waivers of Bank policies? / Yes / [ ] / No / [ X ]
Have these been approved by Bank management? / Yes / [ ] / No / [ X ]
Is approval for any policy waiver sought from the Board? / Yes / [ ] / No / [ ]
Does the project meet the Regional criteria for readiness for implementation? / Yes / [ X ] / No / [ ]
.
Safeguard Policies Triggered by the Project / Yes / No
Environmental Assessment OP/BP 4.01 / X
Natural Habitats OP/BP 4.04 / X
Forests OP/BP 4.36 / X
Pest Management OP 4.09 / X
Physical Cultural Resources OP/BP 4.11 / X
Indigenous Peoples OP/BP 4.10 / X
Involuntary Resettlement OP/BP 4.12 / X
Safety of Dams OP/BP 4.37 / X
Projects on International Waterways OP/BP 7.50 / X
Projects in Disputed Areas OP/BP 7.60 / X
.
Legal Covenants
Name / Recurrent / Due Date / Frequency
Project implementation in accordance with Project Operations Manual (POM) / X / Continuous
Description of Covenant
The Recipient shall cause the Coordinating Agency to carry out the Project, in accordance with the provisions of a manual satisfactory to the World Bank (“Project Operations Manual”).
Name / Recurrent / Due Date / Frequency
Submission of project reports / X / Quarterly
Description of Covenant
The Recipient shall monitor the progress of the Project and prepare Project Reports. Each Project Report shall cover the period of one quarter and shall be furnished to the World Bank not later than forty five days after the end of the period covered by such report.
Name / Recurrent / Due Date / Frequency
Submission of completion report / 28-Feb-2018
Description of Covenant
The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than two months after the Closing Date.
Name / Recurrent / Due Date / Frequency
Maintenance of Financial Management system / X / Continuous
Description of Covenant
The Recipient shall maintain a financial management system, satisfactory to the World Bank, including adequate staffing with updated terms of reference.
Name / Recurrent / Due Date / Frequency
Following World Bank Procurement Guidelines / X / Continuous
Description of Covenant
All goods, works non-consulting-services and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in World Bank Procurement Guidelines.
Name / Recurrent / Due Date / Frequency
Project reporting and accounting system / 15-Sep-2014
Description of Covenant
No later than 45 days from the Effective Date, the Project reporting and accounting system, satisfactory to the Bank, shall be operational in the Project Management Unit.
.
Conditions
Name / Type
Authorized or ratified execution and delivery of Grant Agreement / Effectiveness
Description of Condition
The execution and delivery of the Grant Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action.
Name / Type
Project Operations Manual / Effectiveness
Description of Condition
The Recipient, through the MOES, has adopted the Project Operations Manual, as defined in Schedule II, Section B.1. of the Grant Agreement, in a manner satisfactory to the World Bank.
Name / Type
Community Procurement Handbook / Effectiveness
Description of Condition
The Recipient, through MOES, has adopted the Community Procurement Handbook, in a manner satisfactory to the World Bank.
Name / Type
Establish Project Management Unit (PMU) / Disbursement
Description of Condition
Project Management Unit has been established within the Committee on Youth Affairs, with terms of reference, resources, staffing (including, at a minimum, a project coordinator, a financial management specialist, a procurement specialist, and a translator), and adequate office facilities, all satisfactory to the World Bank
Name / Type
Sign contract with Coordinating Agency (for Component 1) / Disbursement
Description of Condition
For payments made under Category 1, until the Coordinating Agency services contract, satisfactory to the Bank, has been executed between the Recipient and the Coordinating Agency, and is in full force and effect
Team Composition
Bank Staff
Name / Title / Specialization / Unit
Joseph Paul Formoso / Senior Finance Officer / Finance / CTR
Aliya Kim / Financial Management Analyst / Financial Management / ECSO3
Heather B. Worley / Senior Communications Officer / Communications / ECROC
Nurbek Kurmanaliev / Procurement Specialist / Procurement / ECSO2
Keiko Inoue / Senior Education Specialist / TTL / ECSH2
Matteo Morgandi / Young Professional / Economist / ECSH3
Ramiro Ignacio Jauregui-Zabalaga / Counsel / Counsel / LEGLE
Zinaida Korableva / Program Assistant / Program Assistant / ECSHD
Aliya Bizhanova / E T Consultant / Youth Development / ECSH2
Brooks Fox Evans / Consultant / Impact Evaluation / ECSH2
.
iii
I. STRATEGIC CONTEXT
A. Country Context
1. The Republic of Kazakhstan is the largest economy in Central Asia. Two decades ago, emerging from the break-up of the Soviet Union, the Kazakh economy was half of its size today. Isolated from the world economy, it faced the immense challenge of economic transformation. Between 2001 and 2011, Kazakhstan doubled its income per capita. Kazakhstan is now a solidly upper middle income country. Gross Domestic Product (GDP) per capita in Kazakhstan rose in terms of constant US dollars PPP from $5,406 in 2000 to $11,568 in 2011. The economy grew at an average of 5 percent per year between 2000 and 2011.
2. More recently, the country weathered the 2008-2009 crisis relatively well, and had two years of strong economic recovery in 2010-2011, before slowing down in 2012. Real GDP growth in Kazakhstan slowed from 7.5 percent year-on-year in 2011 to 5 percent in 2012 due to supply constraints in industry and agriculture. Economic activity was driven mainly by domestic consumption of goods and services, supported by higher revenue from commodity exports. Despite the slowdown in 2012 favorable terms of trade impacted positively on the external position of the country (current account surplus of 3.8 percent of GDP) and on fiscal accounts of the government (consolidated budget surplus of 4.5 percent of GDP). The economy is expected to grow by about 5 percent in 2013, as agriculture and industry recover. Inflation, which had risen to over 7 percent in 2010 and 2011, is expected to moderate at about 6 percent.
3. Kazakhstan’s growth was inclusive and strongly pro-poor, allowing the country to reduce poverty and inequality substantially, though regional variations remain. The share of the population living in poverty (as measured by the Purchasing Power Parity (PPP)-corrected $2.5 per capita per day) fell from 41 percent to 4 percent during 2001-2009. In the same period, the share of the population living below $5 per day fell from 79 percent to 42 percent. Real income gains, that have significantly improved poverty indicators, are expected to continue, contributing to poverty reduction in Kazakhstan over the medium term.