Unlocking New Cofinancing for Education Programs with GPE's Support

Support for GPE Partners DRAFT FOR PILOT USE This version: November 2021

The Multiplier provides an incentive and the resources to unlock and unblock new cofinancing for education programs. To access the grant, countries work with a range of cofinancing partners to mobilize new funding for education programs. The key criterion is that the cofinancing is new and additional : it is unlikely to have been mobilized for education or mobilized as quickly if the Multiplier were not available. DRAFT FOR PILOT USE

All GPE-eligible countries are eligible. Allocations for 2021 to 2025 have been set by GPE s Board. You can see them at: www.globalpartnership.org/funding/gpe-multiplier It is not a new or different type of grant, but a different modality to mobilize further implementation funding from GPE. With a secured allocation, a country prepares a grant application in the same way as for a System Transformation Grant. Any allocations that are secured are in addition to any other GPE grants a country can access. DRAFT FOR PILOT USE

GPE emphasizes coordinated support for education. Countries are encouraged to maximize the alignment and harmonization and minimize transaction costs of external support for the sector. Countries that are eligible for both the System Transformation Grant and / or the Girls Education Accelerator and the Multiplier should seek to mobilize their Multiplier allocations at the same time as they access these other grants. DRAFT FOR PILOT USE

Girls Education Accelerator MDB Multiplier concessional loan US$ 25mn US$ 15mn US$ 60mn US$ 60mn (Loan) US$ 40mn (GPE Grant) US$ 100mn Implement programs to support transformational change in a country's education system DRAFT FOR PILOT USE

Developed by the country and Local Education Group with GPEs support A strategic framework to identify interventions that can transform a country s education sector captures a country s situation regarding enabling conditions: equity, efficiency, and volume of domestic finance; sector planning, policy, and monitoring; data and evidence; and sector coordination identifies focus areas for external support, targeting bottlenecks in education systems The enabling conditions are reviewed by an independent technical advisory panel (ITAP) DRAFT FOR PILOT USE

Countries that access a Multiplier grant alongside a Systems Transformation Grant (STG) and / or the Girls Education Accelerator (GEA) develop a Partnership Compact as part of the process for securing the STG and / or GEA. Countries that access a Multiplier allocation without an STG / GEA still develop the parts of the Compact on the enabling conditions. And these countries are encouraged to develop a full Compact, comprising the enabling conditions and the focus areas the Multiplier will target. DRAFT FOR PILOT USE

Eligible for a Systems Transformation Grant Not Eligible for a Systems Transformation Grant Timing of Multiplier EOI The country articulates elements of the Compact related to enabling conditions. The country is encouraged to develop a full Compact to guide the articulation of the Multiplier grant. In the absence of a full Compact, the country can base the Multiplier's focus area(s) on a national planning document like an Education Sector Plan or equivalent. The subsequent Compact notes the focus areas of the Multiplier grant and cofinancing to ensure coherence with the Systems Transformation Grant. The Compact is a platform to support resource mobilization to access the Multiplier alongside other GPE resources. The country articulates elements of the Compact related enabling conditions. The country is encouraged to develop a full Compact to guide the articulation of the Multiplier grant. In the absence of a full Compact, the country can base the Multiplier's focus area(s) on a national planning document like an Education Sector Plan or equivalent. Before Compact During Compact The Multiplier grant and cofinancing should target or complement the focus areas identified in the Compact. After Compact DRAFT FOR PILOT USE

Countries generally access their STGs in a staged manner (by cohort), based on when previous GPE grants are expected to be fully disbursed. For countries that are eligible for the STG, it may be possible to accelerate access to the STG to match the timing of the Multiplier. The goal is to avoid a revolving door of grant applications and enable harmonized, larger programs wherever possible. Similarly, for the STG, GPE s Board may withhold part of an allocation based on the enabling conditions (for example, low and declining domestic spending on education). However, a Multiplier allocation, if secured, is available in full DRAFT FOR PILOT USE

Eligible countries can potentially access Multiplier grants up to a predetermined maximum. Allocations are available online: www.globalpartnership.org/funding/gpe-multiplier Why are they potential ? Unlike other grants, Multiplier allocations are not guaranteed Countries confirm their allocations by securing an approved Expression of Interest (EOI) The EOI is a brief document. It is not a full grant application. DRAFT FOR PILOT USE

1. Additionality 3. Debt sustainability 2. Cofinancing Cofinancing should: be for the same program as GPE funding use the same modality (or a common funding modality, like a pooled fund) target GPE priority sectors The key criterion is the cofinancing is mobilized because of the Multiplier s incentive effect The funding is unlikely to have been mobilized in the absence of the Multiplier. If the cofinancing is a loan (for example, from the IBRD) the EOI confirms that it is consistent with the World Bank s Non- Concessional Borrowing Policy (NCBP) and the IMF s Debt Limits Policy. DRAFT FOR PILOT USE

The key criterion is that cofinancing is additional: the money is not likely to have been mobilized in the absence of the Multiplier Additionality is impossible to prove: we do not know what would have happened if the grant did not exist. Instead, it is evaluated using a negative condition: is it clear that the funding is not additional? For example, if the cofinancing were already on track to being approved, it is unlikely to be genuinely additional. DRAFT FOR PILOT USE

A country is eligible for US$ 35 million from the GPE Multiplier A Multilateral Development Bank is developing a major education sector project with a scope of US$ 180 million. It is set to be approved by the institution s Board next month. The Local Education Group seeks to use the MDB project to unlock the Multiplier. Because the cofinancing indicated in the EOI will be mobilized without the Multiplier, it is not additional. DRAFT FOR PILOT USE

Partners either invest in stand-alone projects or alongside GPEs grants in the same program The first approach is parallel financing , while the latter is cofinancing We look for evidence of cofinancing in the EOI, and track this over the course of program preparation If the cofinancing can only be provided as parallel financing, the EOI must explain why the separate modality is necessary and how it is aligned with GPE funding DRAFT FOR PILOT USE

Generally eligible and considered to be cofinancing Generally not eligible because it is not included in the same program Systems Transformation Grant Development Bank loan Donor grant Multiplier US$ 25mn US$ 40mn US$ 10mn US$ 30mn US$ 35m (Grant) US$ 40m (Loan) US$ 75m Separate program Directed through a single Grant Agent or funding mechanism, like a pooled fund DRAFT FOR PILOT USE

In principle, cofinancing should support the same sub- sectors that GPE s funding targets These are consistent with GPE s Strategic Plan For 2021-2025, this includes 12 years of quality education (primary and secondary) and one year of pre-primary DRAFT FOR PILOT USE

Cofinancing can come from... World Bank IDA / IBRD Other M/RDB loans Support from bilateral donors Private and philanthropic capital Debt forgiveness Multiplier Implement programs to support transformational change in a country's education system DRAFT FOR PILOT USE

US$ 3 in new resources secures US$ 1 in supplemental grant finance from the Multiplier Includes cofinancing through GPE s new innovative finance tools Debt2Ed Frontloaded Cofinancing GPE Match: US$ 1 from the Multiplier for each US$ 1 mobilized from foundations and the business community DRAFT FOR PILOT USE

US$ 30mn in grants from the development partner secures US$ 10mn from the Multiplier. US$ 20mn from a Foundation secures a further US$ 20mn. The total Multiplier Systems Transformation Grant Foundation partner Development partner grant Multiplier Through the GPE Match, foundations mobilize US$ 1 from GPE for each US$ 1 they contribute to a program US$ 30mn US$ 30mn US$ 20mn US$ 25mn grant is US$ 30mn. US$ 55mn (Grant) US$ 50mn (Grant) US$ 105mn Directed through a single Grant Agent or common funding mechanism, like a pooled fund DRAFT FOR PILOT USE

In some cases, the cofinancing might be a new loan or similar instrument. To support debt sustainability in these cases, the EOI should confirm that the proposed lending is consistent with two policies that might apply, such as the Sustainable Development Finance Policy (World Bank) and / or the Debt Limits Policy (IMF). These policies use Debt Sustainability Analyses prepared by the World Bank and IMF as inputs. GPE s Finance & Operations team can provide support if countries or cofinancing partners are not sure whether the proposed cofinancing is consistent with these policies / frameworks. DRAFT FOR PILOT USE

The GPE Secretariat reviews the EOI and in two weeks or less will Approve Approve with clarifications Request clarifications If a country s EOI is approved or approved with clarifications, it has an MCA from the Multiplier (an MCAM). The country can prepare a program in line with standard GPE quality assurance procedures. If clarifications are requested, the country does not get an MCAM but can submit a revised EOI in the future. DRAFT FOR PILOT USE

Countries need an approved Expression of Interest to secure a Multiplier allocation The key criterion is that the countries and partners have worked together to identify and mobilize new and additional financing The support unlocks supplemental finance from GPE To help ensure a successful EOI, please review the Guidance for evaluating EOIs DRAFT FOR PILOT USE

Once a country has secured a Maximum Country Allocation from the Multiplier through a successful EOI, the allocation is available for a calendar year (one year). Extensions are possible but are not guaranteed. Approval of the final grant application requires confirmation that the cofinancing has been mobilized or is on track to being mobilized. This is a strong incentive to ensure that all cofinancing indicated in the EOI is credible and will be mobilized on time. DRAFT FOR PILOT USE

Countries can apply for a further Multiplier grant when their current one is sufficiently disbursed . There is no standard cut-off for when during the implementation of an existing Multiplier grant a country can apply for a new one. It will depend on context and the performance of the existing grant. DRAFT FOR PILOT USE

Review of Enabling Conditions: equity, efficiency, and volume of domestic finance; sector planning, policy, and monitoring; data and evidence; and sector coordination. Must be reviewed by the Independent Technical Advisory Panel (ITAP) and approved by GPE governance Program is designed and quality-assured, ultimately triggering a formal commitment of GPE funding Country-level discussions with possible cofinancing partners Grant approval Same quality assurance process as for GPE System Transformation Grant Review of requested allocation. An endorsed EOI secures the Multiplier allocation. Expression of Interest Showing how additional funding will be mobilized to secure an allocation Review of Multiplier s area of work. Multiplier should align with areas identified in a Compact if one is in place, or with a relevant high-level strategy if not. Final cofinancing cross-check Secretariat prepares an update to check and summarize status of cofinancing DRAFT FOR PILOT USE

The EOI lists cofinancing from partners. In some cases this will be in a currency other than US Dollars (US$) Time passes between the EOI stage and checkpoints of the Quality Assurance process, and the US$ value of commitments in other currencies could change The GPE Secretariat lists cofinancing in the original currency and then the current US$ value at each point This tracks the value of cofinancing (which should not go down) instead of exchange rates (which might change) DRAFT FOR PILOT USE

If some cofinancing listed in the EOI does not appear to be on track or agreed when the program application is submitted, this could reduce the ratio of cofinancing to Multiplier funding below the level required to access GPE s grant This, in turn, creates a risk that GPE will not approve the eventual grant application It is important that cofinancing listed in the EOI is credible and likely to be mobilized DRAFT FOR PILOT USE

Unlike country allocations for other GPE grants, Multiplier allocations are competitive Securing and not using allocations affects other countries ability to access funds To mitigate this risk, MCAMs are valid for one (1) year For example, if a country receives an MCAM in December 2022, GPE must receive an application to use those funds by December 2023 DRAFT FOR PILOT USE

Companies or foundations can provide grants or in-kind support to unlock a Multiplier allocation through the new GPE Match If a private sector organization and Local Education Group are interested in this approach, liaise with GPE s Private Sector / Foundations team through the GPE Country Lead as early as possible The team can provide oversight and due diligence to ensure GPE can work with the foundation or private company in question DRAFT FOR PILOT USE

Eligibility & Allocations https://www.globalpartnership.org/funding/gpe-multiplier EOI Form https://www.globalpartnership.org/content/form-expression-interest- gpe-multiplier Guidance for Evaluating EOIs https://www.globalpartnership.org/content/guidance-evaluate- expressions-interest-gpe-multiplier Guidelines for Preparing Multiplier grants https://www.globalpartnership.org/content/multiplier-operating- guidelines-2021-2025 DRAFT FOR PILOT USE

Visit our website: globalpartnership.org