Mexico - Labor Market and Productivity Enhancement Project

Document 'Of The World Bank FOR OMCLAL USE ONl MICROFICHE COPY Report No. :P- 5869 ME Type: (PM) Title: LABOR MARKET ANND PRODUCTIVITY I Author: RIBOUD, M Rqprl w P-5869-IE Ext.:39250 Room:I 7125 Dept.:LA2HR MMORADM ANID RECOMMENDATION OF THE PRESIDENT OF THE ITENATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAM IN TE AMOuNT EQuivALE TO US$174 MILLION TO NACION,L FIltANCIERA, S.N.C. WITR THE GUARNTEE OF TE UTNITED MEXICAN STATES FOR A LBOR MARKET AND PRODUCTIVITY ENHANCEMENT PROJECT * NOVMBNER 23, 1992 This documel* Oas a restricted distributon and may be used by recpients only in the performance of tdeir oficial duties& Its contents may not othrwie be disclosed without World Bank authorization.  CRJRENCY EOUl S Currency Unit Peso (Mex$) US$1.00 = 3,112 Pesos (July 1992) MCALlEAR January 1 - December 31 UNITS OF WEGHTS AND MEASURES Metric US/British Equivalent 1 kilogram (kg) = 2.20 pounds (lb) 1 metric ton (m ton) = 2,250 pounds 1 liter ) = 0.26 gallons (gal) I kilometer (kIn) = 0.625 miles GLOSSARY OF ACRONYMS dMO Multiple Support Service Program to MSMEs (Programa de CaUdad Integral y Modernizaci6n) CONALEP National System for Vocational and Technical Education (Colegio Naconal de Educaci6n Tdcnica Profesionat) INEA National Institute for Adult Education (Instituto Nacional de Educaci6n para Adultos) INEGI National Institute of Statistics (Instiuto Nacional de Estadistica, Geograf(a e Jnfordneica) MSMEs Micro, Small and Medium sized Enterprises NAFTA North American Free Trade Agreement NAFIN National Financing Company (Nacional Financiera, S.N.GC) PROBECAT Labor Retraining Program (Programa de Becas de Capacitaci6n para Trabajadores) SECOFI Secretariat of Commerce and Industrial Development (Secretarfa de Comerclo y Fomento Industrial) SEE State Employment Service (Seruicio Estatal de Empleo) SHCP Secretariat of Finance and Public Credit (Secretarta de Hacienda y Credito Pablico) STPS Secretariat of Labor and Social Welfare (Secretarta del Trabayo y Previsi6n Social) UPC Regional Productivity Support Unit (Unidad Promotora de Competitivida)  FOR OMFCL USE ONLY AMCO LABOR MR AND YRODUCTIII ENHANCMEN ioE LOAN AND PROJECT SlUMMARY Borram: Nacional Financlera, S.N.C. (NAFIN) Gaa*nSr: United Mexican States Secretariat of Labor and Social Welfare (STPS) Becdiduies: Entrepreneurs and employees of micro, small and medium sizm enterprises, enterprise associations, unemployed and displaced male and feniale workers, and rural migrants. Amount~: US$174 million equivalent =Terms: Repayment in 15 years, including 5 years of grace at the standard variable interest rate Local Foreign Total -US$ million- Federal Government 114.9 0.0 114.9 State Governments 18.0 0.0 18.0 Private Enterprises 49.0 0.0 49.0 IBRD 159.9 14.1 174.0 Total Financing 341.8 14.1 Eoonougc Rk or Retum: Not Applicable SlE-l Appad Rlot:Report No. 11095-ME; dated November 23, 1992 Mu., IBRD No. 24094 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  MIMORANDUM AND RECOMMENDATION OF TH PRESIDENT OF THE IBRD TO THE EXECIVE DnECORS ON A PROPOSED LOAN TO NACIONAL FANCMEA, S.N.C. WITH THE GUARANTE OF THE UNIM MXCAN SATES FOR A LABOR MARKEr AND PRODUClIVITY ENEHANCEMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to Nacional Financiera, S.N.C. (NAFIN), with the guarantee of the United Mecan States, for US$174.0 million equivalent to help finance a project for Labor Market and Produativity Enhancement. The loan would be at the Bank's standard variable interest rate, with a maturity of 15 years, including five years of grace. NAFIN would be the Borrower and the Secretariat of Labor a.d Social Welfare (STPS) would be the executing agency. 2. RaftmwW. The Government's success in stabilizing, liberalizing and privaizing the economy in recent years has set the stage for long-term economic development. However, prospects for sustained private sector-led growth remain constramed by several long-standing labor market issues. First among these is Mexico's low rate of labor productivity growth, which limits the international competitiveness of its producers and the potential for improvements in the living standards of workers. Low labor productivity growth, especially prevalent among micro, small and medium sized enterprises (MSMEs), is linked to insufficient levels of on-the-job human capital accumlation and to a limited capacity to adopt new production processes and technologies. A second issue is employment instability for a significant portion of the population, which results in lower on- th-job training and, thus, reduced earnings opportunities. A third concern is a possible increase in rural migration flows and unemployment resulting from the acceleration of the economic resuctuing process expected from the North American Free Trade Agreement (NAFTA). Address;ng these issues will require policies aimed at increasing the productivity of Mexican workers, facilitating the transformation of production processes and the adoption of new technologies, and improving the flow of labor between expan6ing and contrctig sectors and regions. These policies, which emphasize post-school accumulaion of human capital, would complement efforts aimed at increasing the general educational level of the population. However, at present, effective policy design and implementation is impeded by limitations of existing data and &;te lack of analysis of labor market issues. 3. Recognizing the importance of these problems, the Mexican Government is now giving highest priority to the development of human resources th'ough investments in human capital, both before and after entry into the labor market. It is also making major efforts to reduce the cost of labor mobility and facilitate labor market adjustment. Recent policy documents expanding on the National Development Plan 1989-94 reflect the strong commiment of the Government to build up Mexico's human capital in the context of a free-market oriented str. The Secretariat of Labor and Social Welfare (STPS)-by law, the leading institution in matters related to employment, labor market regulations, inservice training, productivity, and working conditions-is ffie exetig agency for the National Traning and Productivity Program 1990-94, intended to: (a) support private sector- led growth by increasing the skills of the labor force, promoting productivity improvements and faciltating labor mobility; and (b) broaden the basis for growth through a wider distribution of income-generting opportunities within the population. The importance attached to increases in productivity and competitiveness in light of NAFTA is also reflected in the National Agreement for Inceased Oualt and Prod cti signed in May, 1992 by the Government and representatives of business and labor, which aims to modify traditional forms of organization and management, including promotion and wage schemes to reward individual performance and foster productivity growth. Over time, the Government intends to concentae on a technical assistance and policy formulation role in labor markets as privae enterprises sharply increase their contributions to training  costs. The Government has prepared a sector policy statement in support of the proposed project and the policy changes it embodies. 4. Proect O ives. The proposed project would assist the Government of Mexico in promoting private sector-led growth and in easing the costs of labor mobility and labor market adjustment by: (i) increuing the productivity and competitiveness of MSMEs; (ii) reducing costs incurred by employees and employers of hiring and job search, providing education and training opportunities for displaced and unemployed workers, with special attention to women; and (iii) improving the availability, timeliness and dissemination of labor market information and, more broadly, the capacity to monitor labor market changes and to design, evaluate and implement relevant policies and programs in the sector. 5. j l. The proposed project would consist of three major components: (a) the Productivity Enhancement Component (28% of total project cost including contingencies) would support activities aimed at increasing the productivity and competitiveness of MSMEs by: (i) extending the coverage of the pilot in-service tiaining program (Multiple Support Service Program to MSMEs, CIMO) initiated under the Manpower Training Project (La. 2876-ME, 1987) and expanding the scope of support services provided to MSMEs; (ii) strengthening coordination between CIMO and other instiuons rendering -upport to MSMEs; and (iii) promoting the gradusA privatization of CIMO by increasing the involvement of enterprise associations in its financirg and operation and the gradual ransformation of Regional Productivity Support Units (UPCs); (b) the Labor Market Adjustment 5omponent (61% of total project cost) would improve the coverage and efficiency of State Employment Services (SEEs) and provide education and training opporities for displaced workers, through: (i) strengthening the operation and management of the SEEs, and improving the quality and availability of information on local and regional labor markets; (ii) providing improved retraining programs for approximately 300,000 displaced and unemployed workers meeting stringent selection criteria; and (iii) intoducing, on a pilot basis, an education and trainig program for underqualified rural migrants who are ineligible for rvegular retraining; and (c) the Information. Policy and Instixtiona Strnhein Mg (11% of total pro;ct cost) would improve the availability, timeliness and dissemination of labor market information, and strengthen institutional capacity to design, operate and evaluate labor market policies and proprams, including: (i) supporting the development of an information system and the undertking of inAepth surveys to provide the basis for periodic and systematic labor market data generation and analysis; (ii) promoting an extensive program of studies and research on labor market issues, programs and policies; (iii) fostering regular publication and dissemination of labor market information; (iv) instituting a systematic framework for program evaluation; and (v) stengthening STPS's management and teh capacity through human resource development and modernization of its data management system. 6. The total project cost is estimated at US$355.9 million equivalent, including taxes and duties (estimated at US$8.1 million), with a foreign exchange component of US$14.1 million equivalent. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursement, and the disburement schedule are shown in Schedule B. Retroactive financing of US$11.0 million equivalent would be granted for expenditures on key actvities of the productivity enhancement and labor market adjustment components icurred after July 1, 1992 to avoid interruption of tehnica support to enterprises and of the training of unemployed and displaced workers between the loan closing of the existing Manpower Training Project and effectveness of the proposed project. A timetable of key processing events and the status of Bank Group operaions in Mexico are given in Schedules C and D, respectively. The Staff Appraisal Report No. 11095-ME dated November 23, 1992, is being distributed separately.  -3- 7. Project nMlementation. The project would be implemented over a five-year period (1993-97) by STPS, asisted by NAFIN, under management arragement similar to those used for the Manpower Training Project, selectively strengtened as justified by the experience of the operation. The project organization would have two levels: the central level, represented by STPS, which would have overall responsibility for project coordination and implementtion; and the local level through the SEEs and the regional MSME support units, which would be responsible for the implementation and delivery of services to unemployed workers and enterprises. These arrangements have proven to be highly conducive to effective and efficient project implementation under the previous project. 8. Poect Sustainability. The project aims to develop self-sustaining 'inancing and implementing capabilities for human capital investments in enterprises through a growing involvement of private sector organizations. It also aWms at developing more flexible labor markets and more effective Government assistance to firms, individuals and training providers, without increasing permanent STPS staff. Sustainaility of the retraining program would be encouraged by providing proceeds of the Bank loan on a declining basis. Strong monitoring and evaluation systems and a substantial program of studies would underpin improved govermnent policies and further strengthen the long- term sustainability of expected project achievements. 9. Lessons Learned from Previou Bank Ivolvement. Lessons learned during the implementation of the CONALEP I and II and Manpower Training projects (Lns. 2042-ME in 1981, 2559-ME in 1985, and 2876-ME in 1987, respectively), as well as training sector experience Bank- wide, have been incorporated into the proposed project's design: (i) it supports sector policies and strategies th seek to strengthen the links between private enterprises and public institutions. Formal institutional arrange are also in place to encourage private sector training and involve industrial business associations in program activities; (ii) it includes cost-sharing arrangements that proved to be successful between the GCovernment and enterprises for in-service training of workers; (iii) it takes into account the results -he evaluation of the labor retraining program supported under the Manpower Training Project to improve the design of the new retraining program, and selection cnteria for program paiticipation were modified to target those for whom the program was found to be most cost-effective; (iv) it includes monitoring mechanisms and formal evaluations of the retraining program and of the MSME support program, based on comparisons with control groups; (v) it was designed by an experienced team that successfully managed the Manpower Training Project, taking into account their experiences with the first operation and the results of its mid-term review; and (vi) it places emphasis on institution-building to improve policy-making capacity. 10. Rationale for Bank Involvement. The proposed project's objectives are fully consistent with the Bank's country assistance strategy to support the shift in the Government's focus toward long-run development issues, and provide support to private sector-led growth through the provision of social infrastructre and a well-structured set of incentives. By supporting productivity enhancement activities in the labor market, the project would contribute to human resource development, which is key for long-term growth and poverty alleviation. By improving the efficiency in the use of public resources and by inducing an increased involvement of the private sector in training activities, the project would support the Government's efforts to rationalize the role of the public sector and promote private sector-led growth. By targeting specific actions to more vulnerable socio-economic groups, the project would also promote social mobility and a more equal distribution of the gains from economic reform. The project would be justified on economic efficiency and equity grounds. Ihe Government has been showing increasing interest in involving the Bank more closely in policy and program development in the human resource sector. Follhwvng the good experience of the CONALEP I, CONALEP II and Manpower Training project, the Bank has been expanding its support to human capital development in Mexico through the Basic Health, CONALEP m, Primary Education, and Science and Technology projects (Lns. 3272-ME in 1991, 3358-ME in 1991, 3407-  4 - M In 1992, and 3475-ME in 1992, respecvely), and trough the recently signed Initial Education Project (Lu. 3518-ME). The Bank S the only aid agency in Mexico involved in large-scale numan resource development prograns and would be able to transfer to Mexico leSons learned Crom Bank exence in other countries. Future Bank sate for Mexico aims at supportng private sector-led growth. An important element of this is ensuring that an adequately educated and trained labor force exists to take advantage of economic opportunites and that labor displaced as a result of economic cne can be re-absorbed into more productive activities at minimal human cost. 11. Isues ad Aco. During a=9W= the Government and the Bank reached agreement on: (a) a final statement of sector policies; (b) modalities for collaboration between STPS, NAFIN and the Secretatiat of Comrierce and Industrial Development (SECOFI) in providing servces to MSMEs; (c) the presentation to the Bank by June 30, 1993 of: (i) satisfactory guidelines for the work incentive scheme for SEE staff; and (ii) satisfatry revued operational manuals for the SEES; (d) the guidelines for the operation of the pilot Basic Education and Training Program for inexperienced workers; (e) the submission of the set of short, medium, and long-term statics to be used for labor market monitoring that would be updated and published regularly, satisfactory to the Bank, by April 30, 1993; (f) annual project reviews, to be held in November of each year, conducted joindy by STPS, the Secrtat of PRnance and Public Credit (SHCP), NAFIN and the Bank, progress reports for which would include proposed budgetary requirements for project implmention for the subsequent year; (g) the mid-term review, to be held in November 1995, conducted jointly by STPS, SHCP, NAFIN and the Bank, including the preparation and initiation of an action plan, satisfctory tj the Bank, by December 31, 1995; (hi) on terms of reference, schedules, and action plans ps neetied, for: (i) evaluatiors of the Labor Retrining Program for displaced workers; (ii) evaluadons of the CIM0 program; (Oii) an evaluation of the pilot Basic Pducation and Training Program by May 31, 1994; and (IV) all the studies and surveys to be conducted under the project. 12. The conditions of disb_ ni are: (a) for the financing of mobile employment units, the presentation of an evaluation, satfory to the Bank, of the experience with the six pilot units swported under the Manpower Trainng project; and (b) for the work incemive scheme for SEE staff, prsentation of guidelines, wdsatctory to the Bank, for the operation of said scheme. 13. An event of suspension of disbursements for the retraining program for the unemployed beyond US$25.0 million would arise if: (1) the Government fils to present to the Bank, within 60 days of the time such amount is reached, a satisfctory evaluation ta: (a) measures the impact of altenative training programs and delivery systems on the employment and earnigs of the trainees; (b) identifies possible improvements in program targeting; and (c) assesses the cost-effctiveness of the program and is different modalities; and (ii) the Government falls to present a plan of acdon, the to the Bank, for improving such retraining program in a manner that takes into account the results of the evaluation. The timetable for the completion of the evaluation and agreed action plan i8 by March 31, 1995. lnter alia, the number of trainees would not exceed 55,000 per amnnu until such satisfactory evaluation has been completed. 14. -dVvirownens Aspects. The project (Category C) would have no direct emnronmental effects. 15. Pmg g Qbjtive Ctabgrie. The project would contribute to Mexico's poverty all:.Iiation stategy through its assistance to rural migrants and unemployed workers (a large fraction of whom are women). 16. .oect Benft h e project supports the Government's efforts to promote private sectorled growth and eae the costs of labor mobility. The project would increase productvity and competiveness in MSMEs, creating higer eanings and employment opportunities for Meican  workers. About 35,000 enterprises, employing about one million worker, are expected to bif reached. Project benefits, however, would extend beyond the participating enteprses, as the project is itended to have an important demonstation effect. Through the increased involvement of private enterprises in MSME support programs and the promotion of doser interw-institudonal links, the project would also foster improvements in the quality of training services supplied to enterprises and a faster rate of adoption of new technologies through the provision of a better trined labor force. The labor market adjustment process would be eased as the improved quality of sevices provided to unemployed and displaced workers would reduce the costs of hiring and job search, improve the job matching process and thus provide better opportaities for employment stability and subsequent wage growi. Approximately two million unemployed workers are expected to benefit from placement services over the life of the prqposed project. About 300,000 unemployed workers whose cuent skills fall to match those in demand would also benefit from the training to be provided. The cost- effdctiveness of the retraining programs will be enhanced by targeting the training to those groups where evaluation has demonstrated the highest rates of reurn to such training (workers with at least completed primary education and some work experience). Th. results of an evaluation of training programs under the Manpower Training Project showed a 20-30% monthly salary increase for male trainees with some prior work experience. For male target trainees, the evaluation showed that benefits of program participation outweigh the costs of the program within three months of starting eMloyment. For younger inexperi workers and rural migrants, the project is expected to improve their entry conditions in the urban labor market. In add:ion to sharing the general benefits Of the project listed above, women would benefit from the improvements to be introduced in the raining programs and reduction of labor market barriers which hamper the realization of the full benefits of training by females. Finally, the project would enhance the Government's capacity to design, monitor and evaluate labor market policies and programs, thus contributing to a more efficient use of public resources. 17. Riaka. The main risks are: (a) a possible decline in Government commitment to project objectives after the change m adminison in 1994. This risk is small given the exitng strong support for current economic policies and the importance given to productivity and mobility issues in light of NAFTA; (b) insufficient budgetary allocations to guaratee program sustainability beyond project completion. This risk will be minimized by the coverage of trainee stipends and recrrent costs on a declining basis, by incased private sector participation in the financing and operation of the CIMO program, and by rigorous monitormg of budgetary allocations during the annual project implementation reviews; (c) slower than expected acceptance by enterprises of the productivity actions. This risk seems quite small given growing support by private entprises of inbterventions initiated under the ongoing Bak-supported MaWower Training Project and will be further mitigated by strengthened program management and availability of services; and (d) project complexity and the fact that there are many implementing agencies at different levels may limit the Achievement of the project's objectives. This risk will be mitigated through the early identification and resolution of any problems which develop through close supervision and through the mid-term and anual project reviews. 18. 'Recommendation. I am satsfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve it. Lewis T. Preston President Atahmens Washington, D.C. November 23, 1992  -6- Page 1 of 1 E8MTED ELI cm ProJectqb ~~~~~~~~~~Local Forefr Total -.--US$ million- Labor Market A _j0ment 191.9 6.5 198.4 Strengthening of SEEs 36.6 1.1 37.7 Reaing Program 155.3 5.4 160.7 Infenndon, Policy and Labor Market lnormation System 15.8 3.3 19.1 Institutional Stengthening 14.7 0.7 15.4 TOTAL BASE COST M 123 3221 Physice Con6tgencies 1.3 0.6 1.9 Price Continencies 30.7 1.2 31.9 ToTAL PROJECT COSTr' 3au. 14.1 35 tlDalcing_l1l4 I~~~~LoAlY Foreg Total -US$ miflion Federal Government 114.9 0.0 114.9 state Governments 18.0 0.0 18.0 Private EtIeprses 49.0 0.0 49.0 EBRD 159.9 14.1 174.0 TOTAL 341.8 14.1 35. Ffm Dbhmamsu Bank Fisa Year (n US$ millions) 1993 1994 1995 1996 1997 1998 A nual -6.-10 28.0 40.0 40.0 32.0 18.0 Cumulative 16.0 44.0 84.0 124.0 156.0 174.0 Economic Rate of Return: Not Applicable I/ nclds tat. of about US$8.1 nillio 21 Inclde Specl Account deposit of US$12.0 million aw up to US$11.0 million of retractive finnwi for eliile .zedire incutred after July 1, 1992.  7 - ScheduleB Page 1 of 2 hnm~ LAB9S MARKT AND PROIYJCTJVITY ENHANCEMENT PROJECT PROCUREMENT ARRANGEMENTS (US$ millions) Procurement Method Total Project Element ICB LCB Other N.B.F Cost 1. WORKS 1.4 / 1.4 1.1 Minor office vehablitaton (1.3) (1.3) 2. GOODS 2.1 Equipment and mobile units 14.0 2.0 1.2 W 17.2 (14.0) (1.7) (1.0) (16.7) 2.2 Publications and printed materials 1.4 h/ 1.4 (1.3) (1.3) 3. CONSULTANCIES 3.1 Publicity canWaigns 4.3 g/ 4.3 (3.9) (3.9) 3.2 Sbadies, surveys, and locai and 24.1 _ 24.1 foreign technical asistnc (21.7) (21.7) 3.3 Specialized astance to enterprises 93.1/dt 93.. and training for unemployed (50.1) (50.1) 3.4 Staff training 6.0 _e/_ 6.0 (6.0) (6.0) 4. MISCELLANEOUS 4.1 Stipends for trainees 140W;d/ 140.8 (42.2) (42.2) 4.2 Staff incentives, travel and 49.7 _d 18.0 67.7 inctemental operatg costs (30.8) (0.0) (30.8) 14.0 2.0 321.9 18.0 355.9 TOTAL (14.0) (1.7) (158.3) (0.0) (174.0) Not: Figures in paenth we ahe respcivo amounts financed by the Bank loan. N.B.F.: Not Bank-Financed. a Lca shopping obaining quotaions fiom at least thre suppliers. hi Local shopping and/or &rec contracting. S/ Cosulants and other smrvieo conacts proctred ki accordance with World Bank. Guidelines: Use of C emultan& by World Bank Bwowers and by the Wold Bawk aw Exe*ang Agency (WashinWon, DC, August 1981). I Does not involve procurement. gf US$2.0 million, for intea training, does not involve procuremet.  -8- Page 2 of 2 LABRM MARM; AMI POItUCrl\VrrY ENHANEMIENT PROJEC WITHDRAWALS OF THE PROCEEDS OF THE LOAN Amunmt of the Ca0g Low Allocad % of Expenditues (expressed in to be finceod US$ equivalent) 1. Equipment 15,000,000 100% of forign expnditue., 100% of local expenditures (ex-1actM cost) and 90% of local expenditures for other item pdro d localy, excluding taxes 2. Office Rehabilitation 1,200,000 90% 3. Technical Assistance and Traing a. Studies, surveys, local 2S,,000,000 100%, excluding taxes & fign TA, staff and consultant training b. Fixed-term temporary 18,000,000 100% until the aggregt rhes US$4.5 million, staff 80% until the aggregate reaches US$14.0 milion, 40% until the aggregAe reaes US$16.0 million, and 25% for the remainder c. Training of trinr 3,500,000 70% d. I-vice taining of 11,000,000 35% until the aggregate reaches US$4.5 million, workers and sueviso 25% until the aggreae reaches US$9.5 million, and 15% for the remainder o. TA to entpiss 5,000,000 70% until the aggregate reaces US$1.7 million, 60% until the aggregate reaches US$3.0 million, 50% untl the aggregate reaches US$4.0 million, and 40% for the _mainder 4. Stipends 38,000,000 55% until the aggegat reach US$16.0 million, 40% until the aggrgate raches US$25.0 million, 25% until the aggregate reaches US$35.4 million, and 10% for the remainder 5. Trainig for the Unemployed 25,500,000 100%, excluding taxes 6. Publications and Publicity 5,000,000 100%, excluding taxes Campaigns 7. Staff Inentives, Travel and 9,800,000 100% until the aggregate reaches US$3.0 million, Incremntal Opeating Costs 80% until the aggregate reaches US$7.5 million, 40% until the aggrgate reaches US$9.0 million, and 25% for the remaind0r 8. Unallocated 17,000,000 Tota 174,000,000  -9- Schedule C LABOR MARIE AND PRODUCIVIV ENHANCEMENT PROJECT METABLE OF KEY PROJECT PROCESSING EVENTS (a) Time taken to piepare: Nine months (b) Prepared by: Secrariat of Labor and Social Welfare (STPS) with Bank assistance (c) First Bank mission: October 16-25, 1991 (d) Appraisal mission deparue: June 29, 1992 (e) Negotiations: November 17-19, 1992 M Planned date of effectiveness: Expected January, 1993 (g) List of relevant PCRs and PPARs: Draft PCR Ln. 2876-ME, June 12, 1992  - 10- Schedule D Page 1 of 2 STATUS OF BANK GROUP OPERATIONS IN MEXlCO As of September 30, 1992 d ina Ia"3 OLaSM aS " .A .ina _,14 _ 1 .. te_ W DENIM Pik m -a 334 - - -w- - -r L.6402 aIkW.. swa. 3m "ads. eoul seee &"am szSo La. 2u9-94 M91 u10ow laUwey I L 1436.46 Ut M4 It" snAS go gqt I_ TOG SS.0 la. S33.1 1983 am 4aftst wi$ssa 14n.t1 La. 17014