Dominican Republic - Education Project

RESTR I CTED FILE COPY Report No. P-8.78 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE DOMINICAN REPUBLIC FOR AN EDUCATION PROJECT November 12, 1970  I M7LRNATIQ'A .L DEVELORPIr':' i`SOC Ii22i :o: REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE DOMINICAN REPUBLIC FOR AN EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed credit in an amount in various currencies equivalent to US$4 million to the Dominican Republic. PART I - HISTORICAL 2. The proposed credit wzould be the first by IDA to the Dominican Republic. Because of its balance of payments weakness, discussed in Part V and an annex to this Report, the Dominican Republic is not pres- ently regarded as eligible for Banl loans except for projects of an enclave type, such as that made to Falconbridge Dominicana, C. por A. on December 10, 1969. 3. The Government requested financial assistance from the Asso- ciation in January 1970 for the education project which had been pre- pared with the help of an IBRD/UlNESCO reconnaissance-identification mission. The project was appraised in April/May and negotiations were held on October 27-30, 1970. The Government was represented by Lic. Victor Gomez Berges, Secretary of State for Education, Arts and Religions. 4. The following is a summary statement on the only Bank loan to the Dominican Republic as at October 30. Loan Number Year Borrower Purpose Amfount UnCisbursec. (USZi millions) 646-DO 1969 Falconbridge Dominicana Industry 25.o 20.6 C. por A. Construction and disbursements under the loan are on schedule. 5. A livestock project has been appraised and should be ready for presentation to the Eaecutive Directors later in the fiscal year 1971; other projects in the fields of irrigation and industrial credit are now being prepared for later consideration by IDA.  - 2 - PART II - DESCRIPTION OF THE PROPOSED CREDIT 6. Borrower: The Dominican Republic. Amount: In various currencies equivalent to US$4 million. Purpose: To cover the estimated foreign exchange cost of (a) construction and equipment of comprehensive secondary schools and primary teacher colleges and (b) the establishment of long range educational development planning. Amortization: In 50 years, including a 10-year period of grace, through semi-annual installments of one-half of 1% from April 1, 1981 through October 1, 1990 and of 1