Announcement of Colombia to Improve Secondary Education with World Bank Support on December 17, 1993

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 94/ 41 Contact: Ciro Gamarra (202) 473-8721 COLOMBIA TO IMPROVE SECONDARY EDUCATION WITH WORLD BANK SUPPORT WASHINGTON D.C., December 17, 1993 - Colombia's efforts to improve secondary education will be assisted by the World Bank. A Bank loan of $90 million will help finance a project to assist municipalities with their plans and investment programs for secondary education development. The $150-million project will support the implementation of a new national strategy of cofinancing investments in education with the departments and municipalities. It will also provide incentives to regional and local governments to support national educational development targets. In addition, the project will support the assumption by municipalities of an expanded role in education by building local capacity for the planning, co-financing, and execution of investments. The project will fund pilot programs in 87 of Colombia's over 1,000 municipalities, in or near the country's 15 largest cities in 11 departments or territories. The municipalities selected include the capital cities of each department, and others with at least 10,000 population, having high levels of primary enrollments, at least three public secondary schools, and located within 50 kilometers of the capital city. The project includes grants and loans to help local governments fund new school construction and the rehabilitation of about 50 percent of 1,250 public school facilities and equipment. It also includes provision of 55,000 vouchers to give low income students the choice of attending private schools where public school places are not available. An education quality enhancement including training for principals and teachers and provision of 4.2 million textbooks and materials will be provided under the project, as well as management and institutional strengthening in the departments and municipalities and in the Ministry of National Education. Support will also be given directly to schools for improvement plans prepared by principals and teachers with community participation. NOTE: Money figures are expressed in U.S. dollar equivalents. -2- The Government of Colombia and local governments and financial intermediaries will finance the remaining $60 million of total project cost. The World Bank loan is expected to be disbursed over 7 and 1/2 years. The project is expected to increase access to secondary education for an estimated 90,000 primary school graduates, including up to 22,000 low-income students. It is also expected to strengthen the administrative and managerial capacity of 11 departments, 87 municipalities and up to 1,250 public school administrations to plan and implement education improvement programs. The World Bank loan to the Republic of Colombia is for 20 years, including five years of grace, with a variable interest rate, currently 7.43 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. -0-