Honduras - Rural Primary Education Management Project

Document Of The World Bank FOR 3FFICIAL USE ONLY Report No. 6609-HO STAFF APPRAISAL REPORT HONDURAS RURAL PRIMARY EDUCATION MANAGEMENT PROJECT April 6, 1987 Projects Department Latin Amevica and Caribbean Regional Office 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 Currency Unit - Lempira (L) US$1.0 - L2.0 L1.O = US$0.5 PRINCIPAL ABBREVIATIONS AND ACRONYMS USED IDB Inter-American Development Bank INFOP Vocational Training Institute (Instituto de Formacion Profesional) PCU Project Coordinating Unit SEP Minlstry of Public Education (SecretarUa de Educacion Publica) UCCE External Assistance Coordinating Unit UNAH The National Autonomous University of Honduras UNESCO United Nations Educational, Scientific and Cultural Organization USAID United States Agency for International Development GOVERNMENT OF HONDURAS FISCAL YEAR January 1 to December 31 ACADEMIC YEAR February 15 to November 30  FOR OFFICIAL UE ONLY HONDURAS RURAL PRIMARY EDUCATION MANAGDEMNT PROJECT STAFF APPRUISAL REPORT Table of Contents Page No. LOAN AND PROJECT SUMMARY . .................. . i I. THE EDUCATION SECTOR ................................. 1 Overview. . * 0 * * 0 0 . # 0 a # 0 * 6 0 4 . ....* * ..... ............... 4 0 41 The Sector's Managing Institutions and Management Issues ............................ . 3 Management and Efficiency Issues in Primary Education3........ ...... ........ . 3 The Government's Strategy ......................... . 4 Bank Strategy in the Sector........................... 6 II. THE PROJECT .......*.....***** *.. ...................... 7 Project Origin ... ..... . *..... .... .. ..... ...7 Project Objectives and Content .* .................... 7 Institutional Strengthening ......................... 8 Regional Planning and Management ...... ........... . 8 Pilot Subproject ..................................... . .......... 10 Implementation Arrangements ......, ................... 10 Project Costs and Financing ......................... 11 Procurement Procedures ....,.................... 12 Disbursements ................................................. 12 Accounting and Auditing and Reporting ............... 12 Benefits and Risks .... * ....... ......... ...... . 13 III. RECOMMENDATIONS ....................................... 14 This report is based on the finding of Appraisal Missions which visited Honduras. The first mission took place during October 1988 and was comprised of: Messrs. Robert Ruiz-Esparza (General Educator), Mission Leader; Bornardo Kuglor (Economist), Rodolfo Heredia (Demographer/Planner, Consultant), Alvaro Toledo (Micro-Planning Specialist, Consultant). The second mission took place In Decombor 1988 and was carried out by Messrs. Doug las H. Keare (Division Chief) and Robort Ruiz-Esparza (General Educator). Mr. Angel Oonzdi oz-Malaxechoverfa (Senior Financial Management Specialist) contributed to the auditing and accounting section of this report. This document has a restricted distributic 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 - ANNEX No. Pate No., 1 Initial Student Enrollment for 1985..... .......,.... 16 2 Comparative Education Indicators for Central American Countries (1986) ... ^^XXvv****v* 17 3 MOE Organizational Chart,..........................., 18 4 Student Enrollment in Project Area - 1985............ 19 5 Districts Chosen for Initiation of Micro-Planning.... 20 6 Description of Rural Primary Education Managsement Network ............................ .... 21 7 Consultants for Technical Assistance ................*. 23 8 Timetable for Contracting Technical Assistance....... 29 9 Implemenzation Schedule .............................. 30 10 Monitoring Indicators.............................. .. 31 11 SummAry of Project Costs (Net of Taxes and Duties) ... 32 12 Financing of Project Costs and Disbursement Schedule..... ....... .... 33 13 Procurement Arrangements............................. 34 map  HONDURAS RURAL PRIARY EDUCATION MAONAGEtM PROJECT LOAN AND PROJECT SUMMARY BORROWER: Republic of Honduras EXECUTING AGENCY: Ministry of Public Education (SEP) AMOUNT: US$4.4 million equivalent TERMS: 20 years with five years of grace, at the standard variable rate. PROJECT DESCRIPTION: The project objectives are: (1) to enhance the institutional capacity of SEP through technical assistance to: (a) strengthen the capacity of SEP's Executive Council and External Assistance Coordinating Unit (UCCE) in the areas of inter-ministerial coordination, sectoral policy formulation, planning of education development, allocation of expenditures (including coordination of development assistance), budget management, financial analysis, and internal administration; (b) evaluate SEP's organization and develop recommendations for its improvement for sut sequent implementation by SEP; and (c) prepare an evaluation of current decentralization policies. (2) to assist SEP in developing and testing an effective management and development planning system for rural primary education, designed to economize on recurrent expenditures, improve cost-effectiveness, and establish the basis for raising student achievement. This would entail: 'a) carrying out a micro-planning exercise for the primary schools in the project area, including a diagnostic survey of needs, projections of growth, and reorganization of the schools into a cohesive administrative network linking all schools to a system for administrative and supervisory services; (b) preparing, as part of the micro-planning exercise, action plans for construction or repair of physical facilities, teacher training, management and supervision, and a student testing system; (c) testing the results of the micro-planning effort by implementing the action plans in two school districts under a pilot subproject; and (d) preparing a comprehensive operational plan for all schools in the project area by consolidating all micro-plans and action plans, taking into account the results of the pilot subproject. A diagnostic survey would also be carried out to assess the needs of first cycle (grades 7-9) secondary schools located in the project area.  - Li - RISKS: The main risk is that SEP's weak managerial capacity might, if not improved as rapidly as onvisaged, delay project execution and fail to give the proper thrust to policies and strategies being formulated. The project's technical assistance component is designed to strengthen this capacity; together with close supervision by the Bank, this would help to minimize the risk. ESTIMATED COST: Local Foreign Total -------(US$ Million)----- School Construction/Repair 0.4 0.1 0.5 Equipment, Suppliesg Spare Parts, 20 Vehicles 0.1 0.7 0.8 Incremental Staff Salaries 1.6 0.0 1.6 Salaries and Travel of SEP Staff Devoted Full Time to Project 1.9 0.0 1.9 Technical Assistance 0.1 0.4 0.5 Furniture & Supplies 0.2 0.0 0.2 Total Baseline Costs 4.3 1.2 5.5 Physical Contingencies 0.2 0.1 0.3 Price Contingencies 1.0 0.1 1.1 TOTAL PROJECT COST 5.5 1.4 6.9 FINANCING PLAN: Local Foreign Total ------(US$ Million)------ Bank 3.0 1.4 4.4 Government 2.5 0.0 2.5 Total 5.5 1.4 6.9 ESTIMATED BANK DISBURSEMENTS: (Based on Average Profile for Bank Technical Assistance Loancj FY: 1988 1989 1990 1991 1992 1993 1994 ---------------