Program Implementation Document. Project Number: November People s Republic of China: Guizhou Vocational Education Development Program

Transcription

1 Program Implementation Document Project Number: November 2015 People s Republic of China: Guizhou Vocational Education Development Program

2 CONTENTS Page ABBREVIATIONS... 4 I. PROGRAM DESCRIPTION... 1 II. RESULTS AND DISBURSEMENT... 2 A. The RBL Program s Overall Results... 2 B. Disbursement-Linked Indicators... 7 C. Disbursement-Linked Indicator Verification Protocols...10 D. Disbursement Allocation and Status...15 III. EXPENDITURE FRAMEWORK AND FINANCING...16 A. Expenditure Framework...16 B. Program Financing...16 IV. PROGRAM SYSTEMS AND IMPLEMENTATION ARRANGEMENTS...17 A. Monitoring and Evaluation System...18 B. Fiduciary Systems...19 C. Safeguard Systems...22 D. Gender and Social Dimensions...26 E. Communication and Information Disclosure Arrangements...27 F. Development Coordination...28 V. INTEGRATED RISKS AND MITIGATING MEASURES...30 A. Key Risks and Mitigating Measures...30 B. Issues and Changes...32 VI. PROGRAM ACTION PLAN...33 A. Status of Program Action Plan...33 B. Issues and Changes...34 VII. TECHNICAL ASSISTANCE...35 A. Outputs and Key Activities...35 B. Consulting Service Requirement...36 VIII. ACCOUNTABILITY MECHANISM...38 IX. PROGRAM ORGANIZATIONAL STRUCTURE AND FOCAL STAFF...39 A. Organizational Structure...39 B. Program Officers and Focal Persons...39

3 PURPOSE OF THE PROGRAM IMPLEMENTATION DOCUMENT The developing member country (DMC) is wholly responsible for implementing the program supported by results-based lending (RBL). The Asian Development Bank (ADB) staff support the results based lending program design and implementation. The program implementation document (PID) consolidates the essential program implementation information. The PID is a management tool which supports effective program implementation, monitoring, and reporting. It is developed throughout the program processing, and should be discussed with the DMC at Loan Negotiations. It is a living document that should be refined and kept up to date during program implementation.

4 ABBREVIATIONS ADB Asian Development Bank CBC competency-based curriculum CNY Chinese yuan CDTA capacity development technical assistance DLI disbursement-linked indicator DMC developing member country EA executing agency EM ethnic minority GDRC Guizhou Provincial Development and Reform Commission GED Guizhou Education Department GPFD Guizhou Provincial Finance Department GPG Guizhou Provincial Government GVEDP Guizhou Vocational Education Development Program IA implementing agency M&E monitoring and evaluation MIS management information system MOE Ministry of Education MOF Ministry of Finance PAP program action plan PID program implementation document PLG program leading group PMO program management office PRC People s Republic of China RBL results-based lending RRP report and recommendation of the President TVET technical and vocational education and training

5 I. PROGRAM DESCRIPTION 1. The proposed Asian Development Bank (ADB) assistance will support Guizhou Provincial Government (GPG) to improve the quality of technical and vocational education and training (TVET) within the province, and to make TVET more relevant to the needs of employers from 2016 to The proposed Guizhou Vocational Education Development Program (GVEDP) will support the People s Republic of China s (PRC) strategy to strengthen development of human resources and play a demonstration role for other provinces in the western region. The program will contribute to poverty reduction and inclusive growth in the economic development of Guizhou Province, by improving skills and employment outcomes. The proposed program is aligned with the ADB s country partnership strategy for the PRC, and the recommendations of the Midterm Review of Strategy 2020 that emphasize promoting TVET to address the human resource agenda. 1 It conforms to ADB s education policy and education sector strategies, which prioritize investment in TVET. 2 Developing high quality TVET is a GPG priority for upskilling the provincial workforce to facilitate continued inclusive economic growth, and also to improve the employment prospects of young migrant workers seeking urban jobs. Table 1: Program Scope Item Government RBL Program ADB RBL Program (GVEDP) Outcome A strengthened TVET system An inclusive and responsive TVET system Key outputs Activity types (i) Quality TVET institutions developed in Guizhou (ii) Quality of TVET improved (iii) Industry partnerships expanded (iv) TVET system reformed (i) Development of provincial demonstration TVET institutions (ii) CBC development (iii) Establishment of TVET resource center (iv) Human resource development (v) Capacity development and coordination developed (i) Quality of teaching in TVET institutions strengthened (ii) Responsiveness of TVET institutions improved (iii) TVET management capacity strengthened (i) Select demonstration TVET institutions upgraded (ii) Industry-responsive CBC developed and implemented by national demonstration schools and colleges (iii) Management training for strengthened capacity conducted (iv) Provincial TVET management and monitoring system established Program expenditure $1,610 million for the RBL ( ) $150 million Main financiers and GPG and local governments in Guizhou ADB (100%) the respective financing amounts Geographic coverage The whole of Guizhou Province Demonstration TVET Institutions and Guizhou TVET Schools and Colleges Implementation period ADB = Asian Development Bank, CBC = competency-based curriculum, GPG = Guizhou Provincial Government, GVEDP = Guizhou Vocational Education Development Program, RBL = results-based lending, TVET = technical and vocational education and training. Source: Asian Development Bank. 1 ADB Country Partnership Strategy: People s Republic of China, Manila. (ADB s strategy includes a pillar on inclusive growth and outlines the importance of investing in TVET to upgrade labor skills and enhance inclusiveness); ADB Midterm Review of Strategy 2020: Meeting the Challenges of a Transforming Asia and the Pacific. Manila. 2 ADB Education by 2020: A Sector Operations Plan. Manila.

6 2 II. RESULTS AND DISBURSEMENT A. The RBL Program s Overall Results 3. The GVEDP s impact will be an adequately trained human resource base that meets the province s long-term economic development needs and maintains social harmony by uplifting the status of its population from poor and ethnic minority communities. The outcome will be an inclusive and responsive TVET system. This will be achieved through the following outputs: (i) Output 1: Quality of teaching in TVET institutions strengthened. The GVEDP will transform the learning environment by modernizing and upgrading teaching and learning facilities in Demonstration TVET Institutions and training teachers across Guizhou TVET Schools and Colleges. These institutions will provide access to students and teachers from remote areas. To achieve this, the GVEDP will (i) increase the number of practical training facilities in Demonstration TVET Institutions, and (ii) train teachers across the province to strengthen the knowledge and pedagogical skills, including development of CBC, associated learning materials, knowledge of relevant industry occupational standards, and use of student-centered teaching strategies and information and communication technology for teaching. (ii) Output 2: Responsiveness of TVET institutions improved. The Demonstration TVET Institutions cater to competency-based requirements of industry in priority sectors, including logistics, light industry equipment manufacturing, information technology, agricultural engineering, and tourism. The GVEDP will develop updated CBC, with associated learning material and teachers guides, that meets the needs of occupations in the priority industries. These will be developed and implemented by Demonstration TVET Institutions for selected majors. Additionally, training and student knowledge and practical skills will be enhanced through school-enterprise cooperation. (iii) Output 3: TVET management capacity strengthened. The Guizhou TVET system is made up of selected demonstration schools and colleges mostly located in the main cities and the larger less-resourced schools and colleges scattered in the province. Provincial coordination mechanisms, particularly for quality assurance and monitoring, are relatively weak. The GVEDP will (i) train school and college managers to improve capacity for implementing institutional TVET reforms; (ii) establish and strengthen a provincial TVET management and monitoring system, including an integrated management information system platform to improve program planning and coordination; and (iii) improve provincial coordination between departments and institutions responsible for TVET. 4. The RBL program has a robust and comprehensive results framework. 3 The GVEDP will support key results from this program results framework by way of disbursement-linked indicators (DLIs). 4 The disbursement allocation is in Table 2. Six DLIs have been selected to focus on the main elements of the results chain and framework and comprise activities and 3 Program Results Framework (accessible from the list of linked documents in Appendix 2). 4 DLI targets, definitions, verification protocols, and an indicative disbursement schedule are in Appendix 3.

7 outputs that are achievable and measurable during the four year period of the program. 5 These DLIs represent ADB s value added and are important measures of improved quality of teaching, improved responsiveness of TVET institutions to priority industry needs, and strengthened management and monitoring of the TVET system. The selected DLIs are essential for realizing the objectives of the provincial TVET plan to produce more skilled graduates that are employable in Guizhou s growth sectors. 3 5 While it is not feasible to measure and link disbursements to learning outcomes which require a longer time period to achieve, the Program team is planning to implement an impact evaluation of learning outcomes in Guizhou using separate resources to assess impacts of various aspects of the program s interventions.

8 4 1. Program Results Framework Results Indicators DLI Yes/No Outcome: An Inclusive and Responsive TVET System Developed 1. Target: Number of graduates from GVEDP schools and colleges (disaggregated by sex and ethnicity) 2. Target: Increase in employment rate of graduates in key industry majors (disaggregated by TVET level, sex, major, urban and rural, and ethnicity) from the GVEDP schools within the half a year after graduation Outputs Output 1: Quality of teaching in TVET institutions Strengthened 3. Target: 15 additional practical training bases within the GVEDP schools and colleges Table 2: RBL Program Results Framework Baseline Value Baseline Year Target Values of Results Indicators Notes Yes (DLI 1) 30, ,000 33,000 34,000 Note 1 No 94.5 % % 95% 95% 95% Note 1 Yes (DLI 2) Note 4 4. Target: No. of Curriculum Development Guidance Committees established in the GVEDP schools 5. Target: 10,000 teachers trained in in pedagogy and subject knowledge across Guizhou s TVET schools and colleges 6. Target: Number of subject learning resources with ICT in the GVEDP schools and colleges No Note 1 Yes (DLI 3) 1, ,000 2,000 2,000 2,000 Note 2 No Average teaching space per student in the GVEDP schools and colleges to reach: (a) 20 m 2 in secondary schools; and (b) 30 m 2 in tertiary colleges No (a) 10 m 2 (b) 12.8 m (a) 14 m 2 (b) 18 m 2 (a) 16 m2 (a) 18 m 2 (a) 20 m 2 (b) 21 m 2 (b) 24 m 2 (b) 27 m 2 8. Target: Equipment value per student in the GVEDP schools and colleges to reach: (a) CNY5,000 in secondary schools; and (b) CNY5,000 in tertiary colleges. 9. Target: Number of multimedia classrooms in the GVEDP schools and colleges No 2, ,500 3,000 3,500 4,000 Note 4 No 1, ,500 1,550 1,600 1,650 Note 4

9 5 Results Indicators DLI Yes/No Baseline Value Baseline Year Target Values of Results Indicators Notes 10. Target: Number of computers per 100 students in the GVEDP schools (secondary schools only) No 15 (MOE standard is 10) Note 4 Output 2:Responsiveness of TVET institutions Improved. 11. Target: 8 GVEDP national demonstration schools and colleges to prepare/update and implement industryresponsive CBC with associated learning materials and teachers guides for at least 2 majors each 12. (a) Target: Percentage of students industry-based internships created by the GVEDP schools (secondary) for more than 1 year (disaggregated by sex and ethnicity) (b) Target: Percentage of students industry-based internships created by the RBL s 5 TVET provincial demonstration schools (tertiary) for more than half a year (disaggregated by sex and ethnicity) 13. Number of quality management specialized staff in the GVEDP schools and colleges 14. Target: Number of enrolled students in the GVEDP schools and colleges (disaggregated by sex and ethnicity) 15. (a) Target: Ratio of teacher and student in the 12 GVEDP schools (secondary) (b) Target: Ratio of teacher and student in the 5 GVEDP colleges (tertiary) 16. Target: Rate (percentage) of dual certificate graduates in the GVEDP schools and colleges 17. Target: Number of occupations for which the GVEDP schools and colleges are authorized to assess national occupational certificates Yes (DLI 4) Note 4 No (a) 88% (b) 90% 2014 (a) 90% (b) 92% (a) 90% (b) 92% (a) 90% (b) 92% (a) 90% (b) 92% No Note 4 No 47, ,500 47,600 47,700 47,800 Note 1 No (a) 37 (b) (a) 32 (b) 26 (a) 29 (b) 24 (a) 26 (b) 22 (a) 23 (b) 20 No 80% % 82% 83% 84% No Note Target: Number of short term vocational trainees in the GVEDP schools and colleges (disaggregated by sex and ethnicity) No 34, ,100 34,200 34,300 34,400 Note 1 Note 4

10 6 Results Indicators DLI Yes/No Baseline Value Baseline Year Target Values of Results Indicators Notes 19. Target: Rate of students retention 12 GVEDP secondary schools 20. Target: Rate of students registration the 5 GVEDP tertiary colleges Output 3: TVET management capacity Strengthened. No 88% % 90% 90% 90% Note 1 No 80% % 82% 82% 82% Note Target 200 Managers per year trained in TVET system schools and colleges (disaggregated by sex and ethnicity) Yes (DLI 5) N/A Note Target: Develop an integrated management information system platform Yes (DLI 6) N/A CBC = competency-based curriculum, DLI = disbursement-linked indicators, EM = ethnic minority, F = female, GED = Guizhou Education Department, GVEDP = Guizhou Vocational Education Development Program, m 2 = square meter, MOE = Ministry of Education, RBL = results-based lending, TVET = technical and vocational education and training. Note 1: GVEDP schools and colleges will provide the data by gender and ethnicity but there will be no formal setting target values by sex or ethnicity. Note 2: Target is 10,000 till 2020, but for the GVEDP DLI target is 8,000 till At least 40% will be female and 30% from EM. Note 3: At least 20% will be female and 20% from EM. Note 4: Aspects of this measure and/or target are still under discussion with the GED. Source: Guizhou Provincial Education Department.

11 7 B. Disbursement-Linked Indicators 1. Description of Disbursement-Linked Indicators Table 3: Disbursement-Linked Indicators DLIs Baseline and Targets Prior Results (2015) Outcome: An Inclusive and Responsive TVET System Developed DLI 1 Demonstration TVET institutions produce skilled graduates relevant to Guizhou s economic growth Target is to ensure graduation of skilled students Baseline: In 2013, 30,279 students graduated from the demonstration TVET institutions Output 1: Quality of Teaching in TVET Institutions Strengthened n/a 32,000 33,000 34,000 DLI 2 Better facilities for quality practical training in the Demonstration TVET Institutions DLI 3 Teachers trained in pedagogy and subject knowledge across Guizhou Target is to increase the number of practical training bases in the Demonstration TVET Institutions to 45 Baseline: In 2014, there were 30 practical training bases in the demonstration TVET institutions Target is to train 8,000 teachers in pedagogy and subject knowledge across Guizhou TVET schools At least 8 demonstration TVET institutions submit to GED their Training Base Construction/ Upgradation Plans GED prepares Provincial Teachers Training Plan, with annual At least 5 detailed designs are prepared by the demonstration TVET institutions for respective practical training bases and construction commenced only after securing requisite construction permits 2,000 teachers trained in pedagogy and subject knowledge across Guizhou TVET schools 5 practical training bases for which construction commenced in 2016 are completed Additional 5 detailed designs are prepared by the demonstration TVET institutions for their respective practical training bases and construction commenced only after securing requisite construction permits 2,000 additional teachers trained in pedagogy and subject knowledge across 5 practical training bases for which construction commenced in 2017 are completed Additional 5 detailed designs are prepared by the demonstration TVET institutions for their respective practical training bases and construction commenced and completed only after securing requisite construction permits 2,000 teachers trained in pedagogy and subject knowledge across Guizhou TVET 2,000 teachers trained in pedagogy and subject

12 8 DLIs Baseline and Targets Prior Results (2015) TVET schools and colleges and colleges (at least 40% targets of teachers trained are female, and 30% teachers trained are from EM) Baseline: N/A Output 2: Responsiveness of TVET Institutions Improved DLI 4 Industry-responsive CBC with associated learning materials and teachers guides developed and implemented by the Demonstration TVET Institutions for selected majors Target is for 8 demonstration TVET institutions to prepare/update and implement industryresponsive CBC with associated learning materials and teachers guides for at least 2 majors each Baseline: N/A 8 demonstration TVET institutions provide their CBC development plans to GED for collation and endorsement Output 3: TVET Management Capacity Strengthened DLI 5 Managers trained in the Demonstration TVET Institutions DLI 6 Provincial TVET management and monitoring system established Target is to train 800 managers (20% female and 20% from EM) Baseline: 0 Target is to develop an integrated management information system platform Baseline: Ad hoc arrangements at provincial level, with Guizhou TVET schools and colleges conducting their own monitoring GED prepares the Management Training Plan, targeting at least 800 managers GPG establishes a PMO with adequate capacity to implement the GVEDP in an effective and timely manner GPG prepares and approves the GVEDP management manual and colleges according to the Training Plan All 8 demonstration TVET institutions initiate development of the CBC in at least 2 majors each 200 managers targeted in the Management Training Plan are trained GPG develops an integrated management information system platform Guizhou TVET schools and colleges according to the Training Plan All 8 demonstration TVET institutions complete development of the CBC in at least 2 majors each Additional 200 managers targeted in the Management Training Plan are trained PMO conducts effective and timely monitoring and reporting using data from the platform schools and colleges All 8 demonstration TVET institutions prepare associated learning materials and teachers guides Additional 200 managers targeted in the Management Training Plan are trained knowledge across Guizhou TVET schools and colleges, to complete training of 8,000 teachers Additional 200 managers targeted in the Management Training Plan are trained Integrated management information system is functional. Only informal program management

13 9 DLIs Baseline and Targets Prior Results (2015) arrangements are in place CBC = competency-based curriculum, DLI = disbursement-linked indicator, EM = ethnic minority, GED = Guizhou Education Department, GPG = Guizhou Provincial Government, GVEDP = Guizhou Vocational Education Development Program, PMO = program management office, TVET = technical and vocational education and training.

14 10 C. Disbursement-Linked Indicator Disbursement Principles and Procedures 5. Disbursement Principles Financing prior results. The Guizhou Vocational Education Program (GVEDP) will finance prior results. The prior results that have been selected are those that are critical to the successful subsequent implementation of the GVEDP, and are accomplished latest by the effectiveness date of GVEDP. The total amount for such financing will not exceed 20% of the ADB financing (i.e., $30 million). The time frame for such financing should be no earlier than 12 months before the signing of the legal agreements. Advance financing. The GVEDP will also provide advance financing for Year 1 DLIs in the amount of $15 million. Partial disbursements are allowed. Partial disbursements are allowed for DLIs 1, 3, 5, and the formulas for partial disbursement for those DLIs are detailed in the verification protocols (see Table A3.2 below). Once the remaining targets are met for any partially met DLI, the balance of disbursement allocation for the DLI can be disbursed. 6. Disbursement Procedures GPFD may submit a withdrawal application upon achievement of any DLIs, along with evidence verifying achievement of the DLIs. Disbursements are allowed for early or late achievement of DLIs. Verification mechanisms and protocols have been established using public and independent sources and are clarified in the verification protocols. GED s PMO will collect all reports and information necessary to verify accomplishment of the DLIs and prepare a draft DLI achievement report. Achievement reports will refer to the month and year of the DLI achievement indicated in the DLI Table A3.3 below. All such reports will be appropriately authorized by a designated signatory, acting for and on behalf of GED and forwarded to GPFD who will make the withdrawal application accompanied by the evidence of DLI achievement. Where ADB identifies issues with the DLI achievement, it will relay its concerns to the GED s PMO and GPFD within one month of its receipt of the withdrawal application for further verification.

15 Appendix 3 11 D. Disbursement-Linked Indicator Verification Protocols 1. Description of the Verification Protocols DLIs Definition and Description of Achievement and Verification Timeframe Outcome: An Inclusive and Responsive TVET System Developed DLI 1 Demonstration TVET Institutions continue to produce skilled graduates relevant to Guizhou s economic growth Table 4: Disbursement-Linked Indicator Verification Protocols Definition The Demonstration TVET Institutions are the demonstration secondary technical schools and tertiary TVET colleges, 6 which are directly administered by GPG. Graduates are (i) secondary schools graduates holding medium level skills and qualifications; and (ii) tertiary college graduates holding higher level skills and qualifications. Partial disbursement is allowed as long as the achievement level is at least 50% and in a such case the level of the partial disbursement will be proportionate to the achievement (e.g., achieving 75% of target will qualify for disbursement of 75% of the total annual amount earmarked for disbursement for this DLI in Table A3.3 below). Information Source and Frequency This DLI will be assessed by GED annually in July once the annual examination results are available. Demonstration TVET Institutions will maintain records of the numbers of graduates, disaggregated by sex and EM. Each Demonstration TVET Institutions will provide these numbers to GED for collation and assessment of DLI achievement. Verification Agency and Procedure Each Demonstration TVET Institution will provide the relevant data, containing the number of graduates, disaggregated by sex and EM, duly verified by its authorized signatory to GED by August each year. GED may undertake an audit at three demonstration secondary technical schools and/or tertiary TVET colleges selected randomly or where a particular school or college return causes suspicion (e.g., increase much higher than expected). GED will submit a disbursement claim to GPFD, accompanied by verified collated data and random audit reports, if any. 6 Five secondary TVET schools: Guizhou School of Economics & Business; Guizhou Province Commercial School; Guizhou Province Water Resource and Hydro Power School; Guizhou Provincial Machine and Industry School; and Guizhou Province Tourism School; and three tertiary TVET colleges: Guizhou Province Transportation School; Guizhou Province Light Industry College (in Huaxi); and Guizhou Agriculture & Livestock College.

16 12 DLIs Definition and Description of Achievement and Verification Timeframe Output 1: Quality of Teaching in TVET Institutions Strengthened Information Source and Frequency Verification Agency and Procedure DLI 2 Better facilities for quality practical training in Demonstration TVET Institutions DLI 3 Teachers trained in pedagogy and subject knowledge across Guizhou TVET Schools and Colleges Definition A practical training base will include infrastructure, training facilities and equipment, a simulated industry environment, and qualified instructors and will be used for students practical training, internships, research and development, and skills competitions, etc. Only practical training bases contained in the Training Base Construction/Upgradation Plans (prioritization list of training bases to be developed with information on purpose/capacity) to be prepared by GED and approved by ADB will qualify for disbursement. Construction of training bases will only commence after securing requisite construction permits. There will be no partial disbursement against this DLI. Definition Guizhou TVET Schools and Colleges are all TVET schools and colleges across the province. Training of teachers will provide upgraded skills including subject-specific competency-based curriculum development, delivery and assessment, and for use of ICT-based and student-centered teaching strategies (pedagogy). Only teachers training included in the Provincial Teachers Training Plan (the scope will cover all Guizhou TVET Schools and Colleges with specific annual targets covering 8,000 teachers over the course of GVEDP), to be prepared by GED and agreed with ADB before the end of 2015, will qualify for disbursement. Partial disbursement is allowed as long as the achievement level is at least 70% and in such cases the level of the partial disbursement will be proportionate to the achievement. Approved Training Base Construction/ Upgradation Plans. Certified completion reports, evidencing completion of practical training bases, by the authorized signatories of the Demonstration TVET Institutions. Provincial Teachers Training Plan. GED reports based on their records. The adequacy of the Training Base Construction/ Upgradation Plans and designs will be subject to independent review by an expert appointed by ADB, in consultation with GED. Completion reports, evidencing completion of practical training bases, certified by the authorized signatories of Demonstration TVET Institutions will be forwarded to GED for processing the disbursement via GPFD. GED will carry out periodic inspections of practical training bases to ensure that they continue to be fit for the purpose, and remain in use. ADB review missions will undertake random inspections of the completed practical training bases to confirm that they continue to be fit for the purpose, and remain in use. The adequacy of the Provincial Teachers Training Plan will be subject to independent review by an expert appointed by ADB, in consultation with GED. GED will confirm by documentary evidence certified by its authorized signatory that the requisite training has been conducted and pass copies of such evidence to GED who will verify that the training qualifies for disbursement under the Provincial Teachers Training Plan. GED will process the disbursement via GPFD. Gender and ethnic minority targets will be ensured, and the final disbursement for 2019 will measure and verify the aggregate achievement of these targets before disbursement is made.

17 Appendix 3 13 DLIs Definition and Description of Achievement and Verification Timeframe Output 2:Responsiveness of TVET Institutions Improved DLI 4 Industry-responsive CBC with associated learning materials and teachers guides developed and implemented by Demonstration TVET Institutions for selected majors Output 3: TVET Management Capacity Strengthened DLI 5 Managers trained in Demonstration TVET Institutions Definition This activity involves the preparation, review, and approval of new/updated CBC by Demonstration TVET Institutions with associated learning materials and teachers guides to allow the teaching of a major that is customized to the needs of key industries. The CBC development is a priority activity, supported by MOE which the Demonstration TVET Institutions will implement. Each of the 8 Demonstration TVET Institutions will complete one comprehensive set of learning materials and teachers guides for the CBC for 2 majors. Selection criteria for key majors are based on the priorities of each Demonstration TVET Institutions. Definition: Managers include principals, deputy principals, faculty heads, and deputy faculty heads. Training will target school management, leadership, course selection. Management Training Plan based on requirements and mutually agreed by ADB. Partial disbursement is allowed on the same basis as DLI No. 3 (teacher training). Gender and ethnic minority targets will be ensured, and the final disbursement for 2019 will measure and verify the aggregate achievement of these targets before disbursement is made. Information Source and Frequency Demonstration TVET Institutions CBC development plans. Progress reports prepared by Demonstration TVET Institutions. 7 GED reports based on their records. Verification Agency and Procedure The adequacy of the CBC development plans will be subject to independent review by an expert appointed by ADB, in consultation with GED. The Curriculum Development Guidance Committee of each Demonstration TVET Institutions will endorse the curriculum. Curriculum certified by the authorized signatory of each GVEDP school and college will then be forwarded to the GED who will countersign that the major concerned is in the agreed plan and hence qualifies for disbursement, and then pass to the GED for processing the disbursement via GPFD. Note: A Curriculum Development Guidance Committee primarily consists of industry experts thus providing an external stakeholder verification that the CBC meets industry needs. Same procedure as for DLI 3 (teacher training) will apply. 7 These progress reports can be the same as those submitted to or shared with Ministry of Education.

18 14 DLIs Definition and Description of Achievement and Verification Timeframe Output 3: TVET Management Capacity Strengthened DLI 6 Definition: Provincial TVET management A PMO consisting of key staff (management, monitoring and monitoring system officers [social, safeguards, technical], and program established support) established by GPG. The PMO will play an overall coordination role for GVEDP to ensure program implementation, monitoring, and reporting. The GVEDP Program Management Manual is a comprehensive set of guidelines for the implementation of the GVEDP that includes financial management, reporting, and monitoring mechanisms for the GED. An integrated management information system platform will include the enrolment and other related data from the Demonstration TVET Institutions to enable integrated and comprehensive program monitoring, analysis, and reporting. This will be based in the PMO initially and then transferred to the Planning Division of the GED to cover monitoring for all provincial TVET institutions. Information Source and Frequency Government notification of PMO establishment and that project management arrangements are in place. Six monthly GVEDP progress reports. Verification Agency and Procedure Prior results achievement to be verified by evidence of government decision and manual issuance. PMO in conjunction with GED to establish a working party to oversee the design and implementation of the integrated MIS. This working group will then be responsible for overseeing system design, testing, and certification that the system is fit for intended purpose. The certification will be confirmed by CDTA consultants and trigger the disbursement of the second (2017) DLI target. The 2018 target will be evidenced by (i) reporting from the MIS being used for comprehensive results framework reporting as certified by the PMO; and (ii) GED certifying the Planning Division of GED has taken responsibility for the system and its ongoing maintenance. CBC = competency-based curriculum, CDTA = capacity and development technical assistance, DLI = disbursement-linked indicator, EM = ethnic minority, GED = Guizhou Education Department, GPG = Guizhou Provincial Government, GVEDP = Guizhou Vocational Education Development Program, MIS = management information system, PMO = program management office, TVET = technical and vocational education and training.

19 15 E. Disbursement Allocation and Status 7. The ADB loan will be disbursed over 4 years subject to the achievement and verification of the DLIs. The initial disbursement will be after loan effectiveness and upon verification of the prior results, and includes advance financing for Year 1 DLIs in the amount of $15 million. GPG has put in much effort and resources into its TVET improvement plan. As of 31 December 2015, GED has prepared a Provincial Teachers Training Plan, as well as a Provincial Management Training Plan and at least 10 GVEDP schools and colleges have submitted to GED their Training Base Upgradation Plans and have been agreed to by ADB. These actions taken over a period of 1 year before the planned loan effectiveness provide a strong foundation for implementing the GVEDP effectively. Twenty percent of the loan will be released against these prior results, and subsequent disbursements will be made after the relevant DLIs have been met. The Guizhou Provincial Finance Department (GPFD) will submit withdrawal applications along with evidence verifying the achievement of the DLIs. Disbursements are allowed for early or late achievement of DLIs. Verification protocols have been established using public and independent sources. Partial disbursement is allowed for certain DLIs as noted in the verification protocols. The program management office (PMO) will collect all reports and information necessary to verify achievement and prepare a draft DLI achievement report, which will then be submitted to GPFD, who will prepare the withdrawal application and submit to ADB accompanied by the evidence of DLI achievement. Where ADB identifies issues with DLI achievement, it will relay its concerns to the PMO and the GPFD within one month of its receipt of the withdrawal application for further verification. The loan proceeds will be disbursed to the designated account maintained by the GPFD. Onward disbursement will follow internal funds flow mechanisms established for GVEDP by the GPG. 1. Expected Disbursement Allocation and Schedule Disbursement-Linked Indicators Outcome DLI No 1: Number of GVEDP Graduates Outputs DLI No 2: Number of Training Bases Constructed Table 5: Disbursement Schedule ($ million) Total ADB Financing Allocation Share of ADB Financing (%) Payment for Prior Results DLI No 3: Number of Teachers Trained DLI No 4: CBC and Supporting Materials Developed DLI No 5: Number of TVET School Managers Trained DLI No 6: TVET Management and Monitoring Capacity Totals CBC = competency-based curriculum, DLI = disbursement-linked indicator, GVEDP = Guizhou Vocational Education Development Program, TVET = technical and vocational education and training.

20 16 III. EXPENDITURE FRAMEWORK AND FINANCING A. Expenditure Framework 1. Expected Expenditure Framework 8. The total RBL program expenditures (Government RBL and ADB RBL) are estimated to be $1,610 million from 2016 to 2019 (Table 6), which include incremental TVET school operating budgets, construction of new TVET infrastructure, and capacity building and reform initiatives. The total costs of the GPG s 2013 to 2020 TVET reform plan inclusive of school operating costs are estimated to be $14.3 billion. Table 6: Summary of Program Expenditure Framework (in 2015 prices) Provincial TVET RBL ( ) ( ) Item Amount Share of Amount Share of ($ million) Total (%) ($ million) Total (%) 1. Recurrent budget 7, Civil works and equipment 6, Training and capacity development Total 14, , RBL = results-based lending, TVET= technical and vocational education and training. Note: Numbers may not sum precisely due to rounding. Source: Asian Development Bank. B. Program Financing 2. Expected Financing Plan 9. The PRC government has requested a loan of $150,000,000 from ADB s ordinary capital resources to help finance the RBL program. GPG will provide $1,340 million for the RBL program, and an estimated $120 million will come from student tuition fees. ADB s financing, while a small share, adds value with incentives for quality and capacity improvements. The financing plan is summarized in Table 7. Table 7: Program Financing Plan Source Amount Share of ($ million) Total (%) Guizhou Provincial Government 1, Technical and Vocational Education and Training Student Tuition Fees Asian Development Bank (ordinary capital resources) Total 1, Source: Asian Development Bank.

21 Appendix 3 17 IV. PROGRAM SYSTEMS AND IMPLEMENTATION ARRANGEMENTS 10. GPG will be the executing agency and will set up an interagency program leading group (PLG) including representatives from GDRC, GED, GPFD, and other concerned agencies. GED has been assigned to assume the lead role and oversee development of the TVET sector, but with most program implementation activity delegated to participating schools (i.e., the implementing agencies). An education PMO will be formally established by GPG to be responsible for the day-to-day coordination, program management, and progress monitoring. The implementation period of the proposed program is January 2016 to 31 December 2019, with activities undertaken during 2015 qualifying for loan disbursement under ADB s RBL payment for prior results facility. 11. The participating model demonstration schools within the RBL will be the implementing agencies. There will be 17 schools (see Table 8), all of which are under the direct administration of GPG. Table 8: List of Provincial Managed Demonstration Schools under GVEDP 1. Guizhou Light Industry Technical College 2. Guizhou Transport Technical College 3. Guizhou Industry Technical College 4. Guizhou Electronic Information Technical College 5. Guizhou TVET College 6. Guizhou Agriculture and Livestock Engineering College 7. Guizhou Trade and Economy School 8. Guizhou Construction School 9. Guizhou Electronic Industry School 10. Guizhou Commerce School 11. Guizhou Hydropower School 12. Guizhou Economy School 13. Guizhou Domestic Trade School 14. Guizhou Machinery Industry School 15. Guizhou Tourism School 16. Guizhou People s Hospital Nurse School 17. Guizhou Finance School 12. The roles and responsibilities of proposed key program implementation organizations are described in Table 9. Table 9: Project Implementation Organizations Roles and Responsibilities Project Implementation Organizations Management Roles and Responsibilities Guizhou Provincial Government (GPG) (executing agency) (i) (ii) Establish the program management arrangements Assume overall accountability for ensuring program success Program leading group (i) Oversee the preparation and implementation of the project, with representatives from GDRC,GPFD, GED, and other concerned agencies (ii) Provide overall program direction during the program preparation and implementation (iii) Meets regularly, discuss and take actions, if necessary, to ensure smooth program implementation Guizhou Education Program Management Office (i) On behalf of Guizhou Provincial Government, manage all implementation works during preparation and implementation

22 18 Project Implementation Organizations Management Roles and Responsibilities (ii) Communicate and coordinate with Asian Development Bank (ADB) (iii) Coordinate with all involved agencies, departments, and institutes for program implementation (iv) Direct program preparation activities (v) Submit program implementation progress reports, safeguards monitoring reports, annual audit reports to ADB (vi) Carry out program performance and compliance monitoring (vii) Review withdrawal applications and supporting documents (viii) Others as necessary Implementing Agencies (GED and Schools) (i) Responsible for day-to-day program implementation activities for all infrastructure components (ii) Engage qualified experts/institutes as may be needed to support implementation activities. (iii) Procure works and goods under all infrastructure components, and administer and monitor the contractors and suppliers (iv) Prepare bidding documents, conduct bid opening and bid evaluation, prepare bid evaluation report, and award and sign the contracts (with support of procurement agents where appropriate) a (v) Undertake contract management, construction supervision and quality control, including adherence to EMP provisions (vi) Organize training activities (vii) Develop CBC (viii) Monitor and report on program activities and progress to Guizhou Education Program Management Office (ix) Keep program accounting records as prescribed by Guizhou Provincial Department of Finance (x) Arrange for the timely provision of counterpart funding CBC = competency-based curriculum, EMP = environment monitoring plan, GDRC = Guizhou Development Reform Commission, GED = Guizhou Education Department, GPFD = Guizhou Provincial Finance Department. a Guizhou Resources Trading Center will provide logistic services for the procurement activities, such as providing venue for bids submission, bids opening and evaluation, selecting evaluation experts from its pool of experts, and disclosing contract awards. A. Monitoring and Evaluation System 1. Summary of Monitoring and Evaluation System 13. The monitoring and evaluation (M&E) assessment confirms that GED s MIS captures sex-disaggregated data on beneficiaries, and will help in tracking the outputs and outcome. However it does not currently capture data on ethnicity as a matter of routine, and monitoring and evaluation arrangements for TVET in the province are quite fragmented. The capacity development technical assistance (CDTA) will support the creation of an integrated management information platform within GED to monitor and report on TVET system performance. Table 10: Monitoring and Evaluation System Related Program Actions Status Monitoring and Evaluation Actions from PAP Agency Timeframe 1. Supported by ADB technical assistance resources, GED will construct an integrated information platform to collect, analyze, and report on the performance of Demonstration TVET Institutions, (including data and results analysis by gender, ethnic origin, urban and/or rural and poor and/or non-poor) including data required to operationalize the GVEDP results framework. Then, where anomalies exist, to explore a suitable way forward. GED/ Demonstration TVET Institutions From At program completion, GED will prepare a comprehensive completion report GED 2020

23 Appendix 3 19 Monitoring and Evaluation Actions from PAP Agency Timeframe detailing the results achieved and experience gained in implementing the GVEDP. This will include comprehensive reporting on the results framework indicators and will involve an employer survey, using a survey instrument to be mutually agreed, to measure the employer TVET quality satisfaction rate. 3. GED to make an early application to join the MOE's M&E system for vocational schools, namely the Diagnosis and Improvement monitoring and evaluation program. GED By GED should review and refine the M&E arrangements for provincial demonstration projects for both schools and colleges with a view to better aligning these projects with the equivalent national project. GED GED to comply with the MOE requirement that vocational colleges nationwide to accept the talents cultivation evaluation every 5 years. GED should also consider the implications of introducing a similar evaluation arrangement for vocational secondary schools GED GED to actively encourage the transparent reporting of school and college performance reports and encourage schools and colleges to produce such reports for the benefit of their various stakeholders GED All CBC and related learning materials prepared during the program under DLI 4 will be loaded on to a central online repository and made accessible free of charge to all TVET schools and colleges across Guizhou Province. GED ADB = Asian Development Bank, CBC = competency-based curriculum, DLI = disbursement-linked indicator, GED = Guizhou Education Department, GVEDP = Guizhou MOE = Ministry of Education, M&E = monitoring and evaluation, TVET = technical and vocational education and training. B. Fiduciary Systems 1. Financial Management System a. Summary of the Financial Management System 14. The program will use country fiduciary systems in respect of public financial management, procurement, and anticorruption. These systems were assessed to determine the degree to which they will be able to manage fiduciary risks and provide assurance that RBL program funds will be used for the intended purposes, with due consideration for economy and efficiency. 8 Mitigating measures to manage fiduciary risks are included in the program action plan and the project implementation document. 15. The financial management assessment confirms overall that an adequate financial management system exists in the Guizhou provincial government and demonstration TVET institutions, with sound budgeting, payment, information systems, accounting and auditing procedures and practices. The national legal and regulatory framework of the PRC s public financial management, closely replicated within GPG, is detailed and comprehensive. Over the years, the systems have been progressively revised to fill-in gaps that have been identified, and to take advantage of opportunities created by modern information technology. The centralized payments processing system and the standardized budgetary system (which operate at all levels of government across the country) are examples of this and plans exist to rationalize and simplify the system (e.g., the proposed reforms to allow integrated debt management). This is to be welcomed as criticism of the systems unearthed during the assessment largely focused on the lack of flexibility and responsiveness of the systems rather than their financial control effectiveness. Thus efficiency within government may be being compromised to a degree in the interests of strengthened control systems. 8 Program fiduciary systems assessment (accessible from the list of linked documents of the RRP).

24 Staff capacity, in terms of numbers, qualifications, knowledge, and the experience of staff in GED and school financial departments was found to be relatively strong but the duties of staff were predominantly on bookkeeping, financial accounting, routine reporting, and financial control, whilst there was little evidence of much detailed management accounting and financial planning taking place. This leads to a conclusion that use of funds is well controlled regarding the purpose of use, but efficiency of use is not so well measured and controlled. This conclusion is reinforced by the fact that internal audit staffing was found to be relatively weak, and predominantly transaction based. In the normal course of events, the status of the internal audit function does not allow it to review and question how management decisions are made. 17. External audit and financial supervision are largely exercised based on the funding source. Thus ADB loan funds, government budget, and special domestic funds used for the purpose of the GVEDP will be audited by different auditors, and with funds from some sources attracting more audit attention than others. 18. Risks identified included the predominant use of cash accounting without full income accruals, the fact the organization of audit is based on funds use and that internal audit is relatively weak, suggests an area of risk is locally raised off-budget income being misappropriated due to it not being properly accounted for at source. These risks and suggested mitigation measures are documented in the integrated risk assessment for the program and actions are stipulated in part V of this section of the PID. b. Financial Reporting and Auditing Arrangement 19. In line with the RBL approach, the PRC country existing financial reporting system will be used to generate annual unaudited consolidated program financial statements. The executing agency shall prepare and submit to ADB such annual program financial statements within 6 months of the end of each fiscal year. 20. As required by current PRC regulations, the management, utilization and audit of foreign funds should be carried out separately from domestic funds. The executing agency and implementing agencies will maintain, or cause to be maintained, separate books and records by funding source for all expenditures funded by ADB loan and associated counterpart funds. Consolidated financial statements on activities wholly or partly funded by ADB will be prepared annually in accordance with the government s accounting laws and regulations. The executing agency will cause the consolidated financial statements of ADB funded activities (including associated counterpart fund) to be audited in accordance with Government Auditing Standards by China National Audit Office and submit the audit report in the English language to ADB within 6 months of the fiscal year closing. Such audit report will include a management letter and auditor s opinions which cover (i) whether the financial statements present a true and fair view in all material respects, in accordance with the applicable financial reporting framework; (ii) whether loan proceeds were used only for the purposes intended for the program; (iii) the level of compliance for each financial covenant contained in the legal agreements for the program. 21. Public disclosure of the audited financial statements of ADB funded activities (including associated counterpart fund), including the auditor s opinion on the financial statements, will be guided by ADB s Public Communications Policy (2011). ADB will disclose such audited financial statements and the opinion of the auditors on the financial statements within 30 days of receipt by posting them on ADB s website. The management letter will not be disclosed.