Announcement of Ecuador Receives Four Million US Dollars for Vocational Training on May 23, 1975

f\Ll\.L 8/\N K FOR N AND DEVELOPfVlENT 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 BANK NEWS RELEASE NO. 75/43 May 23, 1975 ECUADOR RECEIVES $4 MILLION FOR VOCATIONAL TRAINING The War ld Bank today announct.."1 the approval of a loan of $4 million to help improve and expand vocational training in Ecuador. The project will redress a major constraint to Ecuador's economic development--the lack of qualified middle-level manpower. Inadequate training opportunities in both the formal and non-formal systems ha.ve contributed to producing a work force with a low skill profile. Ecuador has given priority to rapid expansion of non-formal vocational training • programs as the most efficient means of meeting urgent manpower requirements. The project being assisted by the Bank loan is part of this strategy. The $8 million project will finance a sixfold expansion in the Servicio Ecuatoriano de Capacitacion Profesional (SECAP), a semi-autonomous training agency. It will help SECAP to diversify and strengthen its vocational training programs in order to meet the demand for middle-level manpower. Under the project SECAP will be able to expand training opportunities for unemployed adults and youths, workers in need of professional upgrading and graduates of secondary technical schools in both urban and rural areas. The project is scheduled to be completed ill 1978. The Bank loan to Ecuador is for 25 years, including 5 years of grace, with interest at 8-1/2% per annum • • Note: Money figures are expressed in US dollar equivalents. PROJECT, T E CHNI CAL DATA Vocational Training • COUNTRY: Ecuador TOTAL COST: $7. 9 million BANK FINANCING: $4 million, 25 years, :tncluding 5 years of grace, with interest a.t 8-1/2% per annum. OTHER FINANCING: Government of Ecuador IMPLEMENTING ORGANIZATION: Servicio Ecuatoriano de Capacitacion Profesional, Santa Prisca No. 310, Quito, Ecuador. PROJECT ~ES~RIPTION: Construction. furnishing and equipping of two voc~tional training centers, including: 1) one new. center at Guayaquil with capacity of 1,245 student places to p~ovide opportunities for abo~·t 2,895 trainees annually; 2) extension of the vocational. training center at Quito to increase its capacity from 390 to 1,110 student places and thereby provide opportunities for about 2, 745 trainees a year; and 3) provisi.on of two mobile units to provide training to about 500 persons a year in the rural com- munities and small townships. ?ROCUREME1"T: Contracts for civil works wj_ll be awarded on the basis of competitive bidding advertised locally and in accordance with local procedures which are satisfactory to the Bank. Since the amount of civil works are small, foreign contractors are not expected to be interested. The above procedures do not preclude bidding by local firms. Con- tractors will be required to prequalify. Contracts for furniture and equipment will be awarded on the basis of international competitive bidding in accordance with Bank guidelines. Items will be grouped to the extent practicable to form sizable bid packages and to permit bulk procurement. Items that cannot be grouped into packages of at least US$40,000 will be purchased in accordance with the Government's regular procurement procedures which are satisfactory to the Bank. The total value of items purchased in this manner will not exceed US$200,000, corresponding to about 10% of the total value of the furniture and equipment component. Local manufacturers of furniture and equipment: will be allowed a margin of preference equal to the prevailing tariff, or 15% of the c.i.f. prices, whichever is lowt · ESTIMATED COMPLETION·DATE: 1978 -0- •