Uruguay - Vocational Training and Technological Development Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2343-UR REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLICA ORIENTAL DEL URUGUAY FOR A VOCATIONAL TRAINING AND TECHNOLOGICAL DEVELOPMENT PROJECT May 31, 1978 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as of April 1, 1978) Currency Unit - New Pesos (NUr$) US$1.00 - NUr$5.5 NUr$1.00 - US$0.18 NUr$1,000,000 - US$181,818 WEIGHTS AND MEASURES 2 1 hectare (ha) - 10,000 m - 2.47 acres I kilometer (km) 5 0.62 miles I square kilometer (km2) = 0.39 square miles - 100 ha 1 kilogram (kg) - 2.20 pounds I liter (1) - 0.26 gallons 1,000 kg - I metric ton - 0.98 long ton GLOSSARY OF PRINCIPAL ABBREVIATIONS USED IN THIS REPORT COCAP - Vocational Training Council LATU - Technological Laboratory of Uruguay CONAE - National Council of Education SEPLACODI - National Planning Secretariat UTU - Labor University of Uruguay GOVERNMENT OF URUGUAY FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY URUGUAY VOCATIONAL TRAINING AND INDUSTRIAL DEVELOPMENT PROJECT Loan and Project Summary Borrower: Republica Oriental del Uruguay Amount: US$9.7 million equivalent Terms: Repayable in 15 years, including 3 years grace at 7.5% per annum Relending Terms: Part of the proceeds of the Bank Loan (US$6.8 million equivalent) would be on-lent to Technological Laboratory of Uruguay (LATU) on the same terms as the Bank Loan to Uruguay. The Government would bear the foreign exchange risk. Description and Purpose: The proposed project aims at enhancing the competitive- ness of Uruguay's exports by increasing labor productivity, improving product quality and promoting the use of pro- duction technologies well suited to the country's require- ments. The project would support the initiation of a national vocational training program to meet the training needs of the export-oriented industrial sector, assist the Government and the private sector in selecting appropriate technologies and in improving and expanding quality control services for exports. The project would include construc- tion of training/administrative buildings for the Vocational Training Council (COCAP), laboratories for LATU, and provi- sion of equipment and furniture, as well as technical assistance. Benefits and The proposed project is expected to make a substantial Risks: contribution to the Government's efforts to rehabilitate the economy and to expand non-traditional exports. Uncer- tainties for both components of the project are: (a) the overall export prospects of Uruguay's non-traditional products; (b) the response of the private sector to the new services; and (c) the quality of the managerial and technical staff of COCAP and LATU. The performance of the Government since 1974 in promoting non-traditional exports bodes well for the future, provided that demand conditions and trade policies in developed countries do not change substantially. With regard to private sector response, the participation of industrialists in the activities of both COCAP and LATU should help foster a close relationship. As regards quality of management and staff, LATU's performance to date has been good; the project includes management assistance to COCAP. The Government is committed to ensure that salaries are maintained at levels adequate to attract and retain This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization  - ii - qualified staff to both agencies; extensive technical assistance programs for both components would provide further training and organizational support. Project Costs: Local Foreign Total