Colombia - Secondary Education Project

L ~~~~~~- Sv*j- G-Rv Document of The World Bank FOR OFFICIAI. USE ONLY Report No. 11834-CO STAFF APPRAISAL REPORT COLOMB IA SECONDARY EDUCATION PROJECT NOVEMBER 19, 1993 M 1(-,NICKGRAPHI( Pe E,,:rt NC,n llbU4 Type: SAP Country Department III Human REsources Operations Division Latin America and the Caribbean Reg'on This document has a restricted distribution snd 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 Equivalent Currency Unit = Colombian Peso (Col $) Col$1.00 = US $0.001233 (September 1993) US$1.00 = Col$ 810.8 (September 1993) Fiscal Year January I - December 31 Academic Year Calendar A Febniary I - November 30 Calendar B Septeinbcr I - June 30  FOR OFFICIAL USE ONLY PRINCIPAL ABBREVIATIONS AND ACRONYMS USED BCH Banco Central Hipotecario (Central Mortgage Bank) CEP Centros Experimentales Piloto (Pilot Experimental Centers) DANE Direcci6n Nacional de Estadisticas (National Statistics Department) DNP Departamento Nacional de Planeaci6n (National Planning Department) FER Fondos Educativos Regionales (Regional Education Fund) FECODE Federaci6n Colombiana de Educadores (Colombian Teackers Union) FINDETER Financiera del Desarrollo Territorial S.A. (Financial Development Corporation) FIS Fondo de Inversi6n Social (Social Investment Fund) ICETEX Instituto Colombiano de Credito Educativo y Estudios Tlcnicos en el Exterior (Colombian Institute of Educational Credit and Training Abroad) ICFES Instituto Colombiano para el Fomento de la Educaci6n Superior (Colombian Institute for the Development of Higher Education) ICONTEC Instituto Nacional de Normas Tecnicas (National Institute of Technical Norms) INEM Instituto Nacional de Ensefianza Diversificada (Diversified Secondary School) ITA Institutos Tecnicos Agricolas (Agriculture Technical Schools) IVA Impuesto al Valor Agregado (National Value-added Tax) MEN Ministerio de Educacion Nacional (National Ministry of Education) MEP Municipal Education Plan MHCP Ministerio de Hacienda y Credito Publico (Ministry of Finance) PCU Unidad Coordinadora de Proyecto (Project Coordinating Unit) SENA Servicio Nacional de Aprendizaje (National Vocational Training Service) SNP Servicio Nacional de Pruebas (National Examination Service) TVET Technical Vocational Education Training 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.  - I COLOMBIA SECONDARY EDUCATION PROJECT STAFF APPRAISAL REPORT Table of Contents BASIC DATA SHEEW ................................ v LOAN AND PROJECr SUMMARY ............................... vi I. INTRODUCION ................................. 1 A. The Economic and Social Setting . ........................... 1 B. The Education Sector ................................ 2 C. Main Issues in Secondary Education .......................... 6 D. Government Sectoral Objectives and Strategy ................... 12 E. Bank Role and Strategy ................................. 13 HI. THE PROJECT ....................................... 14 A. Project Objectives ..................................... 14 B. Project Description . .................................. 14 III. PROJECT COST AND FINANCING PLAN .......... ............. 23 A. Project Cost ....................................... 23 B. Financing Plan ...................................... 24 This report is based on the fiadings of preparation and pre-appraisal missions which visited Colombia during June and October 1992, comprisin5 Mmes./Messrs. Michael Potashnik (Mission Leader, LA3HR), Himelda Martinez (EAPH), Maria Helera Maldonadi-Villar (Consultant, LA3HR), Luis Lmas, Luis Secco, Emesto Schiefelbein, Steven Hoenack (Consultants). An Eppraisal mission visited Colombia in March 1993, consisting of Mmes./Messrs. Michael Potashn i (Mission Leader LA3HR), Himelda Martinez (EA3PH), Eduardo Velez (LA2HR), Maria Helena Maldonado-VIllar (Consultant, LA3HR), Luis Secco, Clemencia Chiappe, Oscar Alvarado, Colin Seelig (Consultants). Maria Victoria Lister (LA3HR) prepared the cost tables. Emmanuel Jimenez (PRDPH) advised on the ovaluation sub-component. William Mayville (LA4DR) helped edit the report. Rafael Orduz (Vice Minister of Education of Colombia), Javier Serrano (MEN), Carmen Helena Vergara (DNP) and an inter-ministerial team of officials from MEN and DNP contributed greatly in the preparation of this report. The peer reviewers of this report were Mmes. Himelda Martinez (EA3HR) and Estelle James (CECPS). Messrs. Jacques van der Gaag and Yoshiali Abe were, respectively, the managing Division Chief and Department Director.  Iv. IMPLEMENTATION, PROCUREMENT, DISBURSEMENT, AUDITING, MON1rORING ANDSUPERVISION .......................... 25 A. P'oject a1a t . ................................ 25 B. ImplementationSchedule ............................... 28 C. Procutsanent ....................................... 29 D. Acoonts dDb z .............................. 32 E. Audts ........................................... 32 F. ProeMo it g,EvaluationandSSuprsion .................. 33 V. EXPECTED BENuEFS AND RISKS ........................... 34 A. Benefits .......................................... 34 B. isks .................................. ..... 34 VI. AGREEMENTS REACHED AND RECOMMENDATION ............... 34 ANNEXES AND CHARTS Annex 1: The Education System, Structure and Curriculum Annex 2: Education Administration Annex 3: Education Statistics Table 1: National Enrollment Projections by Grade for 1991-1997 Table 2: Estimated Actual and Projected Progressions of Efficiency Rates for Secondary Education (Grades 6 to 11) Table 3: Total Enrollment in the Colombian Education System ('000) and Annual Grcwth Rates (in percent) Table 4: Cohort of Projected Progression and Efficiency Table 5: Adult IllitWcy Rate Table 6: Years of Schooling of the Labor Force Annex 4: School Renovation and Construction: Role of FINDETER Annex 5: Vouchers for Private Secondary Schools Annex 6: Educational Quality Enhancenment Annex 7: Management and Institutional Strengthening  -iv - Aam 5: Sttcs for Da ad Municipalit PaJicipag in the Poject Table 1: Papultion of the 87 Prticipating Pilct Municipalities Mg* 2: Pqulaton by Department of the 87 Pa Mipaig Pilot Municipalides Table 3: Basc Education Data for 87 Pcipating Pilot Mu lies Table 4: Not Pdmary Educa Enromt Ratio 1990 bble 5: Not Seconday Education Elrolmnt Ratio 1990 ble 6: Primazy Pupil Teacher Rat 1990 able 7: Snday Pupil Teacher Ratio 1990 Ane 9: Prct CooMditon Unit Stnicturo and uincdons Ann 10: Poec Costs Table 1: Costs by Categories of Expenditures Table 2: Project Components by Year Table 3: Summary Accounts by Year Table 4: Summary Accounts by Project Component Table 5: Estimated Schedule of Disbursements Table 6: Allocation of Loan Proceeds Anna 11: Project Flow of Funds Ann 12: Monitoring Indicators, Supervision Plan and Evaluation Studies Ann 13: Seected Documents and Data Available in the Project File MAP: IRD No. 24591  v COLOMBIA SECONDARY EDUCATION PROJECT BASIC DATA SHEET A. General Country Data: Data Year 1. Population Estimate (million) 32.3 1990 2. Population Growth Rate 1989-2000 (%) 1.5 1990 3. GDP Per Capita (US$) 1,260 1990 4. GDP Growth Rate (%) 4.1 1990 5. Area ('000 Sq. Km.) 1,139 1990 B. Education Data: 1. Enrollment Rate (%): Net Primary Education 84 1990 Net Secondary Education 46 1990 2. Public Education Expenditures: As % of GDP 2.4 1992 As % of Govemment Spending 29 1989 In per Capita US$: Primary Education 62 1990 Secondary Education 125 1990 Tertiary Education 666 1990 3. Estimated Average Student/Teacher Ratio: Primary 30 1990 Secondary 19 1990 4. Year of Schooling of the Labor Force 6.1 1990 5. Illiteracy Rate 12.2 1985 Sources: Human Development Report, UNDP, 1992 Social Indicators of Development, World Bank, 1991-92 Plan de Apertura Educativa Statistical Annex, DNP-UDS-DEC-2518, 1991  - vi - COLOMBIA SECONDARY EDUCATION PROJECT STAFF APPRAISAL REPORT LOAN AND PROJECT SUMMARY Borrower: Republic of Colombia ef-ards : Ministry of Education (MEN), Local Governments, and Private Schools Loan Amount: US$90.0 million equivalent Tems: Repayment in 20 years including a 5-year grace period, at the Bank's standard variable interest rate. Project Objectives: The project would support education initiatives designed to: (a) implement a new national government strategy of cofinancing investments in education with the departments and municipalities; (b) provide incentives to regional and local governments to support national educational development targets; and (c) support the "municipalization" of educition by building local capacity for the planning, co-financing, and execution of investments by municipalities. Project Description: The project comprises four main components designed to provide participating municipalities with the assistance needed to implement their education plans and investment programs for secondary education development. In order to receive project support, each municipality would be required to prepara a Municipal Education Plan (MEP) with sub-projects. Funding for sub-projects would be provided in the following areas: (1) Increasing Coverage (US$62.9 million). The project would provide funding--within the framework of municipal plans and investment programs for secondary education---for grants and loans for the rehabilitation of an estimated 50 percent of some 1,250 public secondary school facilities in the 87 pilot municipalities and for new construction of public secondary school facilities to meet projected increases in enrollment; (a) US$5.5 million for furniture; and (b) US$2.8 million for architectural fees. (2) Expanding Access (US$8.3 million). In municipalities where low-income students do not have access to public secondary schools, and are at high risk to dropout of the education system, the projcct would fund vouchers to enable these students to gain access to selected private schools that have excess capacity. The project would fund some 55,000 voucher years through 1997 at an average annual cost of 100,000 pesos (US$143) per voucher year at 1991 prices. (3) Educational Quality Enhancement (US$65.7 million). The project would provide the following inputs to improve instruction and enhance student achievernent in municipal public schools: (a) funding fo. School Improvement  - vii - Plans (SIP) to encourage principals and teachers to diagnose their school aaid formulate programs to improve school quality and efficiency; (b) in-service training for secondary school teachers and principals; (c) funding for the purchase up to 4.2 million textbooks; and (d) resources to purchase other instructional material and equipment to cover a wide range of curriculum requirements. (4) Managenent and Jmtitutional Atrengthening (US$13.1 million). The project would provide for: (a) management and institutional strengthening in the departments and municipalities and in MEN, based on the adoption of a plan prepared by MEN for implementing the decentralization of education; (b) improve quality and reliability of educational statistics; (c) assist MEN in conducting national assessments of student achievement in math and reading at the secondary school level; and (d) conduct policy and evaluation research. Project Benefits: The project will support on average 60 percent of the total investment requirements for the 87 municipalities with the potential benefits as follovs: (a) increasing access to secondary education for an estimated 90,000 primary school graduates in 87 municipalities; (b) providing opportunities for secondary education for up to 22,000 students of low-income families; (c) enhancing the quality and efficiency of education in the 1,250 public secondary schools in the 87 municipalities through the provision of up 4.2 million textbooks, teacher and principal training and instructional materials and equipment; (d) strengthening the administrative and managerial capacity of 11 departments, 87 municipalities, and up to 1250 public school administrations to plan and implement education improvement programs; and (e) increasing the overall level of investments in education, and secondary education in particular, made by regional and local governments. Project Risks: The major risks to project implementation are: 'a) insufficient impiementation capacities in the MEN, FIS and other government agencies could result in slow project execution; (b) the institutional weakness of local government and the high turnover of key municipal personnel could jeopardize the pursuit of coherent education programs at the local level; (c) local governments may not bp willing to participate in the project, because they lack confidence in the central government's commitment and ability to deliver on its promises; (d) local governments may not be able to invest in secondary educational facilities to the extent needed to reach the enrollment targets; and (e) the voucher program will not gain the requisite political acceptance, although the first year of the programn has been generally successful. The project design, including the sequencing of Bank assistance, implementation arrangements, a flexible manage,ment approach, and the use of technical assistance would help diminish these risks,  -vi h~~~~~~~~~~~~H - c - US$ million- Local Foeign ToWl Incaing Coverae 37.5 15.7 53.2 Expanding Acsu 7.5 0.0 7.5 Quality F _ancemst 42.8 16.7 59.5 Maagment Strengthening 9.4 2.5 11.9 BEl Colo 97.2 34.8 132.0 Physical Contingencies 1.9 0.8 2.7 Prie Contnecies ILl 1 Toal Project Costsa V' uQ 1A ' Totals may not add exactly due to rounding. Note: Estimates exclude taxes and dutes. Fhmnding Plan: - S$millioll Local Foreign Total Loa Govenments 30.0 - 30.0 Financial Intermodiary/ia 30.0 - 30.0 National Government IBRD -