Argentina - Decentralization and Improvement of Secondary Education Project

Do==t of The World Bazk FOR OMCaL USE ONM Rept No. P-6342-A1 EMO)RANDlUM AND RECOMMENMATION OF THE PRESIDENT OF THE IW ERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPME TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOA IN THE AMOUNT EQUIVALENT TO US$190 MILLI TO THE ARGENTINE REPUIBLIC FOR A DECENTRALIZATION AND IMPROVEMT OF SECONDARY EDUCATION PROJECT AUGUST 12, 1994 MICROGRAPh ICS Report No: P- 6342 AR Type: MOP Tis document has a resricted distribudon and may be used by recipients ondy In the perfomance of their official duties Its contents may not otherwise be disclosed without World Ba autoriton.  CURRENCY EQUIVALENTS Currency Unit - Argentine Peso (A$) Official Rate: US$1 = A$1 FISCAL YEAR January I to December 31 ABBREVTIATIONS AND ACRONYMS CAS Country Assistance Strategy (Estrategia de Asistencia al Pais) FEL Federal Education Law (Ley Federal de Educaci6n) LATEN Latin America Environmental Division (Divisi6n de Medio Ambiente de America Latina) NMCE National Ministry of Culture and Education (Ministerio Nacional de Cultura y Educaci6n) NMIS NaticJal Management Information System (Sistema Nacional de Informaci6n Gerencial) NPCU National Project Coordination Unit (Unidad Nacional de Coordinaci6n del Proyecto) NSAS National Student Assessment System (Sistema Nacional de Evaluacion Educativa) PME Provincial Ministries of Education (Ministerios Provinciales de Educaci6n) PPCU Provincial Project Coordination Units (Unidades Provinciales de Coordinaci6n de Subproyectos) SSMTAL Social Sector Management Technical Assisne Loan (Pr6stamo de Asistencia T6cnica para la Administraci6n del los Sectores Sociales)  FOR OFFICIAL USE ONLY ARGENTINA DECENTRALIZATION AND EMPROVEMENT OF SECONDARY EDUCATION PROJECT Loan and Project Summary Borrower: Argentine Republic. Beneficiary: National Ministry of Culture and Education (NMCE) and seven Provincial Ministries of Education (PMEs), i.e. Cordoba, La Pampa, Mendoza, Misiones, Neuqu6n, Rio Negro and Santa FV.1 Amount: US$190 million equivalent, with retroactive finance of up to US$ 13o, snilion. Terms: 15-year repayment period including a grace period of five years with loan amortization based on level repayments of principal. Plan: Pject Cost (US$ million) Source Local Foreign Taxes Total Percent Federal and Provincial Governments 63.9 0.0 14.8 78.7 29 Bank Loan 155.5 34.5 0.0 190.0 71 Total 219.4 34.5 14.8 268.7 100 Project Objective: The objective of the project is to: increase student learning in seven selected provinces by financing improvements in the quality and efficiency of secondary education; increase or improve physical capacity to serve the secondary school age group more effectively; and strengthen institutional capacity in the PMEs under a decentralized framework. The project would strengthen the capacity of the NMCE to provide policy guidance and supervision as defined by the Federal Education Law (FEL). Additionally, the project would strengthen institutional capacity by: (i) strengthening sector management; (ii) improving admninistrative efficiency; and (iii) improving productivity. Economic Rate Not applicable. of Return: 1. Out of a total of 24 jurisdictions: 23 provinces and the Municipality of Buenos Aires. This docume has a restricted distibution n may be used by recipients only in the ofthir offcial duties Its contensy not othawise be disclosed ilthout World Bank m_1horizitio  Povert Category: Not applicable; however,' the ptoject will cover investments in marginal areas with a high incidence of poverty. The following activities will assist the poor: provision of educational materials, which are a key fcor in improving educational quality; and constuction and rehabilitation of school facilities, which will also improve educational equt and qualiy by reducing overowding and facilitating access. Provision of inforation systems and improved management capacity wil} enable the Federal Government and provinces to target investments on the needs of the poor. Staff Appras No. 12993-AR, -Agust 12, 1994 Report: Map: IBRM No. 20450  MEMORANDUM AND RECOMMEKNDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE DiRECTORS ON A PROPOSED LOAN TO THE ARGENTINE REPUBLIC FOR A DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION PROJECT 1. 1 submit for your approval the following me m and recommendation on a proposed loan to the Argendne Republic for the equivalent of US$190 million to help finance a project to improve Argendna's recenty-decentralized secondary education system. The loan would have a 15-year repayment period including a grace period of five years with loan amortization based on level repayments of principal. 2. Background. After one of the most severe economic crises in the Region's recen history, Argentia has embarked on a comprehensive program of structura refoms. Reform of the social sectors-severely affected by fte economic crisis of the 1980s and suffering from years of neg'ct-supports the Govermment's economic goals of ensuring economic stability, long-term growth, and competitiveness in world markets. 3. Argeina's education sector has deteriorated as a result of low and misdivcted invesmts: public expenditues in education flucated sharply between 1980 and 1993; and expendiures were mainly concenrt on personnel. As a consequence, students lack educaticnal materials, teacher morale is low, and physical facilites are in poor conditon. The low quality and efficiency of secondary education -a crucial link with the labor market-- is a major problem in Argentina. Evidence includes low scores on achievement tests as well as excessive repetition and high dropouts. Forty-nine percent of a sample of stuents tested in Buenos Aires scored 50 percent or less on a Spanish proficiency test, while on a mathematics test 82 percent of stdents answered less tham half the questions correctly. Low quality and efficiency tend to reduce the nmber of secondary school-aged students (13-18 years old) in school so that only 56 percent of this population natonwide is enrolled. These problems are in part attibutable to inadequate spending on educational materials and other educational inputs, which is less than 5 percent of the education budget. Inefficiency is earated by low staff productivity, with student-teacher ratios among the lowest in the region. 4. To increase quality and efficiency in the education sector, the Goverment in 1993 passed and has begun to implement a new Federal Education Law (FEL). The FEL provides a framework for reorganizing the management and internal structure of the educational system. A central tenet of Government strategy is decentralization of the provision, financing, and management of -a process carricd out for primary schools in 1978 and now recently completed for national secondary schools. This policy redefines the roles of the cental and provincial governments: The provinces now finance and adminisr all public pre-university education while the central goverment provides policy guidance, estabLishes only basic curricular content, monitors student achievement, and provides technical assistance. Long-term objectives outlinrd by the FEL comprise: (i) raising compulsy education from 7 to 10 years, including one year of preschool; and  2 (ii) changing the curriculum of each cycle, converting the prmary level into a General Basic Education cycle and establishing a multi-modal cycle at the secondary level. As a first step towards improving sector productivity, the Government currenly is carrying out a nationwide survey of education sector personnel. 5. Transfer of the secondary schools formerly under federal control to the provinces has created new demands and serious stresses on provincial managerial, fimacial, and infrastructure capacity. The impact of this transfer varies widely among provinces. The proposed project is designed to strengthen the capacity of a downsized NMCE to establish qualitative norms, evaluate how well they are being achieved, and respond to the demands of decentralization by strengthening provincial sector management and implementation capacities, providing technical assistance and financing for pedagogical improvements, and impro-ving urgently-needed infrastructure. 6. Project Objectives. The objeetive of the project is to increa- student learning in the seven selected provinces by financing improvements in the qiz-1.y and efficiency of secondary education, strengthen institutional capacity under a decentralized framework and increase/improve physical capacity to serve the secondary-school-aged population better. The project would strengthen the capacity of the NMCE to provide policy guidance and supervision, as defined by the FEL. Additionally, the project would strengthen institutional capacity by: (i) modernizing sector management; (ii) improving admiistrative efficiency; and (iii) improving productivity. Several subcomponents, such as the School Innovation Programs, and school rehabilitation will be implemented with community partucipation. 7. Project Description. The project includes three components: (a) enhancement of education qualitv (US$84.1 million, including contingencies, or 31 percent of total project cost): provision of in-service training and other programs for upgrading sldls of teachers and administrators, establishing meclianisms for assuing availability of textbooks and teaching materials, and strengthening curriculum development; (b) institutional stren , (US$84.5 million, including contingencies, or 31 percent of total project cost): consolidating a new, downsized structure for NMCE by providing technical and financial assistance to NMCE to operationalize its new role in areas of curriculum, information, and student assessment; and strengthening the seven participating provinces' capacities in the areas of management, budgeting, and supervision. The project would support a more efficient and simple administration of the sector. It would support improved sector productivity, develop human resource policies to ensure more disciplined management and control of sector personnel, and develop management information and student assessment systems; and (c) rehabilitation and maintenance of physical infrastmcture (up to US$76.8 million, including contingencies, or 28 percent of total project cost): repair and rehabilitation of provincial schools and essential infrastructure; and establishing systems for rational use and continuing maintenance of buildings. About 80 percent of the loan proceeds would be provided  3 directly to the seven participating provinces. The remainder would support the national component. 8. Seven provinces have been selected for this project -Cordoba, La Pampa, Mendoza, Misiones, Neuqu6n, Rio Negro, and Santa Fe- on the basis of criteria established jointly by the Bank and NMCE. Tese criteria were to: (i) have a signed Transfer Agreement for secondary schools; (ii) indcate commitment to participate in the National Management Information System (NMLS) and the National Student Assessment System (NSAS); (iii) have prepared a satisfactory diagnosis of the provincial education sector and a project proposal; (iv) demonstrate willingness to carry out reforms to improve productivity and efficiency in the sector; and (v) have significant need to improve secondary education coverage and quality as reflected by educational indicators. The remaining 16 provinces would be eligible for participation in future projects, which would complement the proposed project in objectives and design. 9. Project Costs and Fanaciug. The proposed project would be financed by a Bank loan of US$190 million or 71 percent of total project cost. The loan would cover 100 percent of foreign exchange expenditures and about 70 percent of estimated local costs (excluding taxes). The Closing Date for the project would be June 30, 2000. Given the social nature of the project, the bulk of project costs are composed of local expenditures. These include technical assistance to develop a management information and a student assessment system, teacher training, and rehabilitation of school facilities. The Government of Argentina and the seven provincial governments would finance the emaining US$78.7 million, including taxes and duties. The proposed cost-sharing is in line with current guidelines for social sector projects. A subsidiary loan agreement will be signed between the Ministry of Economy and each participating province. These agreements will include a description of the provincial subproject, its financial and project obligations, as well as prov_ons for: witdrawals, conditionalities, remedies, and bearing the foreign exchange risk. The Bank will finance up to US$13 million (approximately 7 percent of the proposed loan) retoactively for expenditures incurred after June 15, 1994 and before the date of loan signing in accordance with Bank procurement guidelines. Retroacive financing is required so the Federal and Provincial Governments may begin the gradual implementation of the sector productivity study, management and student assessment systems, and teacher training, and facilitate the timely start-up of the project. 10. Project Implementation. The project would be carried out within the existing organizational strctures of the NMCE and PMEs, supported by project coordination units at both the federal (the National Project Coordination Unit, NPCU) and the provincial level (Prvincial Project Coordination Units, PPCUs). Each province would be responsible for executing its respective subproject while the center (NPCU) would execute its own subproject and provide general coordination. Each of the project coerdination units would be responsible for a wide range of activities including: (a) planing, programming, monitoring, and evaluation of subproject activities; (b)  4 procurement of civil works, goods and services; (c) contracting technical assistance, and personnel; and (d) contracting independent auditors satisfactory to the Bank. Both NMCE and PMEs would be assisted in policy formulation and monitoring by a Project Consultative Council (pCC).2 11. Project Su nbilit. The finacial and institutional sustainability of the project has been a matter of continuous discussion with national and provincial authorides throughout project preparation. Education expenditures average approximately one fourth of public expenditures in the seven participating provinces. It is clear that ivements in quality and access during the next few years must come primarily from efficiency gains and improved use of resources. Improving sector efficiency is a key focus of the project. Financial sustainabiity: Counrpar financing requiements and incremental recurrent expenditures arising from the project will average less than 0.5 percent of anal public spending in the participating provinces during the lidtime of the project and should not place an undue burden on them. The economic ministies of the seven provinces have signed financial commitment letters to the national government guaraneing adequate counterpart funding. During negotiations, assuraces were obtained from the national and provincial governments on the provision of agreed counterpart funding during each year of project implementation. Insttional sinaiIi1 improving national and provincial capacity to plan, manage and evaluate education is key to the success of the government's decenlization efforts. A key focus of the project will be institutional strengthening: training of staff; development of mawnagement information systems; improved budgeting and planning; decentralized decision making and incresed productivity. 12. Lessons Learned from Previous Bank Involvement. There bas been only one education project, the Vocaional Training and Technical Education Project (1980). This project of US$58 million was intended to improve institutional capacity and expand the quality of Argentina's voaional trinng system. It was cancelled seven years after approval, disbursing less than 2 percent of funds because of deterioratng economic conditions, political turmoil, project complexity and unanticipated changes in project administration. Also, as the initial project in the sector, counterparts were not fbmiliar with Bank procedures; in particular there were misnderstandings about procme. To overcome this problem the proposed project has already provided extensive traing to project staff and agreed with the Government on the content of bidding documents. Important lessons learned from previous Bank secondary education projects worldwide involve a nunber of factors, such as the need to: simplify project design; strengthen implementation capacity; support a decentalized implementation framework; establish a clear definition of functions between the central and provincial level; support teacher 2.The PCC would comprise fte National Minister of Educaton or his(er) representative, the Secrety of Educationad Progmmg and Evaluation, and the pr ci Ministers of Education from all the poject provinces.  5 trang; and provide learning inputs to improve quality. These lessort have been incorporated into the project. 13. Rationale for Bank nv olement. The proposed project is dircted at supporting and deepenung the Government's current efforts to improve the quality and efficiency of secondary education in a decentralized framework. The project is consistent with the Country Assistance Strategy, which was discussed with the Board on Febrary 4, 1994 in connection with a Capital Market Development Project (Report No. P4161-AR). The second of four main polic) objectives of the Bank's Country Assistance Strategy (CAS) for Argentina is "strengthening greatly weakened public institutions, with incmvs attention to those responsible for social service delivery. " The CAS makes explicit reference to the proposed project, mentioning that it will "support deentalization of the (education) system in seven provinces and strengthen their capacity to deliver cost- efficient education." This project is also consistent with Bank policy to shift from adjustment lending tC investment loans, and to extend federal reforms to the provinces. The proposed project contributes directly to transferring public service responsibilities to the provinces, reform of provincial finances and downsizing provincial governments. The Bank has been a strong advocate of educational decenuaizon: Sector work (Bank Country Study, Argentina: Reallocating Resources for imovement of Education, 1991) and the ongoing FY89 Social Sector Management Technical Assistance Loan, SSMTAL (Loan 2984-AR), have provided the groundwork for many interventions proposed in this project. The FY90 Provincial Development I (Loan 3280-AR) project is financing investments in primary education infrasc and, in a complementary project under preparation, the Inter-American Development Bank will support basic education (pre- school and primary) focusing on problems similar to those faced at tlh secondary level, especially with regard to quality and efficiency. The proposed Bank involvement at the secondary level thus complements existing and proposed investmezs in basic education and focuses on the urgent need to improve secondary education to ensure the trainabilit, adaptability, and productivity of the workforce. 14. Agreed Actions. During negotiations, agreements or assurances were reached with the Argentine Government on the following: (a) project implementation arrangements between the NMCE and PMEs including the distibution of responsibilities for procurement and disbursement procedures; (b) provision of specified amounts of counterpart funds for each year of project implementation and thereafter by the Federal and Provincial Governments; (c) final ver-sion of model docuwens for LCB, ICB and a letter of invitation for consultants; (d) final version of the subsidiary loan agreements between the Federal Govermnent and Provincial Governments; (e) final agreement on impact and project monitoring indicators; and (f) schedules for carrying out the Sector Productivity Studies, and presentation to the Bank of the corresponding Action Plans for the provinces. The Bank also discssed current measures in place to improve efficiency.  6 15. As conditions of loan effectiveness, the Bank would reuire: (a) at least two signed subsidiary loan agreements; (b) the legal establishment of the NPCU and at least two PPCUs, in those same provinces witt signed subsidiary agreements; and (c) the resolution establishing the Project Consultative Council (Instancia de Consulta Instutucional). As a condition of disbursement in each subproject, the Bank would require: (a) signed subsidiary loan agreements for each remaining subproject; (b) the legal establishment of PPCUs in each remaining province; and (c) Action Plans by subproject to address sector inefficiencies, satisfactory to the Bank (for disbursement of civil works) in light of the suadards set by the project's impact indicators regardless of whether a Sector Productivity Study and the corresponding Action Plan have been carried out with Bank iancing. 16. Environmental Impact. The project does not present environmental risks other than the relatively minor ones associated with school construcuon and maintance activities. These will be addressed in the design and approval stage of investment subprojects. An environmental rating of "C" has been granted by the Environmental Department (LATEN). 17. Project Benefits. The project would: (a) contribute to a more educated and trainable workforce by raising students' cognitive achievement and problem-solving skills; (b) increase the opportunity of children in marginal areas to receive a better quality education, thus increasing their possibilities in the labor market as well as increasig their social mobility; (c) help consolidate the decentralization process by strengthening provincial inStitUtions, thus inducing more efficient responses to local problems; and (d) help increase sector productivity, thus creating net savings of approximately US$55 million a year once the project's programs have taken effect. 18. Risks and Safeguards. The main risks associated with the project would be: (a) limited implemeion capacity at both the national and provincial levels as well as limited sectoral experience with Bank-financed projects; and (b) unresolved policy decisions and political frictions among federal and provincial governments arising from implementation of the FEL such as definition of new curricuhlm content, the criteria for compensation policies towards the provinces, and fumding implications. 19. Regarding limited implementation capacity, the design of the central and provincial subprojects includes one central project coordination unit and seven implementation units at the provincial level staffed by high-level personnel. Additionally, the Bank has begun and will continue to train local staff in Bank procedure (disbursement and procurement) to speed-up project implementation. Furthermore, provincial project coordination units will benefit from the experience of other Bank project execution units. Lastly, the project will train ministerial staff in management and implementation issues. To better monitor the decenralization process and supervise project and non-project activities, a MIS will be established and training of NMCE and PME staff will be trained in management skills and Bank procedures (e.g. procu ).  7 To face unresolved policy decisions, the project design has incorporated studies and institutional strengthening, which will advance the policy process in key areas (e.g., curriculum reform and implementation of compensatory policies) by establishing planning mechanisms, providing analytical information, and training technical personnel. 20. Recommendation. I am satisfied 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 Washington, D. C. August 12, 1994  8 Schedule A ARGENTINA DECENTRALIZATION AND IMPOVENMT OF SECONDARY EDUCATION PROJECT PROJECr COST SUMMARY Local Foreip Totd % O fse 3 b of Forei National Subproject Institutional Stregthening 22.6 4.8 27.3 12.0 18.0 Infrastructre 2.5 0.2 2.6 1.0 7.0 Project Coordination Unit 12.8 0.2 13.0 6.0 1.0 Subtotal 37.9 5.2 43.1 19.0 -12.0 Cordoba SubproJect institutional StrengthenIng 4.4 0.6 5.0 2.2 11.4 Quality Improvement 5.0 4.5 9.5 4.2 47.4 Infrastrutre 4.7 0.3 5.0 2.2 6.2 Project CoordinationUnit 1.9 0.1 1.9 0.9 2.6 Subtotal 16.0 5.4 21.4 9.5 25.4 La Pampa Subproje Institudional Strengthening 3.7 1.1 4.8 2.1 23.1 Quality Improvemnut 5.0 0.7 5.7 2.5 12.2 Infastructure 4.7 0.3 5.1 2.2 6.8 Project Coordination Unit 0.9 0.0 0.9 OA 2.2 Subtotal 14.3 2.2 16.4 7.3 13.2 Mrdwoza Subproject Institutional Strengthening 3.9 0.9 4.7 2.1 18.2 Quality Improvement 21.5 6.3 27.7 12.3 22.6 lnfrastructure 11.0 0.7 11.7 5.2 6.1 Project Coordination Unit 1.6 0.0 1.6 0.7 2.8 Subtotal 37.9 7.9 45.8 20.2 17.2 Mioh Subproject Institutional StrengeinTg 6.2 0.8 7.0 3.1 11.8 Quality Improvement 5.0 1.0 6.0 2.7 16.1 Infrastructure 4.4 0.3 4.7 2.1 6.5 ProjetC oordination Unit 1.1 0.0 1.1 0.5 2.1 Subtotal 16.7 2.1 18.8 8.3 11.3  9 Local Foreig Total % of Dame % of Foreg Neuqun SubproJect slitutional Strngthening 3.4 0.7 4.1 1.8 16.2 Quality Improvement 12.0 1.9 13.8 6.1 13.5 Infastructure 9.4 0.7 10.1 4.5 6.9 Project Coordinaion Unit 1.1 0.0 1.1 0.5 0.0 Subtotal 2S.9 3.2 29.1 12.9 11.1 Rio Negro Subpoject Institutional Str5teing 7.5 1.3 8.7 3.9 14.7 Quality Improvement 3.3 0.6 3.9 1.7 15.7 nfastructe 11.7 0.7 12.4 5.5 5.7 Project Coordinton Unit 1.8 0.0 1.8 0.8 0.4 Subtotal 24.2 2.6 26.9 11.9 9.7 Santa Fi Subproject Institutional Strenghening 4.3 1.6 5.9 2.6 27.8 Quality Improvement 3.8 0.3 4.1 1.8 -7.7 Infrastructe 9.5 0.8 10.2 4.5 7.5 Unit Coordination Unit 1.2 0.0 1.2 0.5 1.6 Subtotal 18.7 2.7 21.5 9.5 12.8 Total Base Cost 191.3 31.4 222.9 100.0 13.9 Physical Contingecies 3.5 0.8 4.4 1.9 Price Confingencies 39.2 2.2 41.4 18.3 Total Cost 234.3 34.5 268.7 FINANCING PLAN Projeed Cost (US$ Million) Local Foreig Taxes Tobl Federal and Provincial Goverments 63.9 0.0 14.8 78.7 IBRD 155.5 34.5 0.0 190.0 Total 219.4 34.S 14.8 268.7  10 Schedule B ARGENTINA DECENTRALIZATION AND IEPROVEMENT OF SECON'DARY EDUCATION PROJECT PROCUREMENT METHOD BY CATEGORYa ai US$ million) ICB LCB Otber NBF Total Civil Works 20.0 23.0 10.5b/ 53.5 (11.1) (12.8) (5.9) (29.8) Infonatics & Communicaions Equipmt 21.1cI 21.1 (14.1) (14.1) Vehicles, Furnie. Training Materials & 10.0 19.5 15.0bf 44.5 Didacic Materials/Equipment (6.8) (13.2) (10.2) (30.2) ConSultas for: T.A. 43.1 43.1 (39.0) (39.0) Stdies and Audits 13.6 13.6 (12.3) (12.3) Training 12.7 12.7 (11.5) (11.5) NPCU and PPCUs 3.9 3.9 (2.3) (2.3) Scholarships 4.5 4.5 (4.5) (4.5) Grants 8.2 8.2 (8.2) (8.2) Project Implementtion Expendiue d/ 36.8 36.8 (22.1) (22.1) Land 2.5 2.5 0.0 0.0 Incremental Recurrent Salaries 4.7 4.7 (2.3) (2.3) Operating Costs e/ 19.8 19.8 (13.6) (13.6) Total 30.0 42.5 193.7 2.5 268.7 (17.9) (26.0) (146.1) 0.0 (190.0) a/ Totals include taxes and contingencies. Amounts in parentheses show allocation of loan proceeds. b/ Local shopping. c/ Limited international bidding (LIB) up to approximately US$15.5 million, and shopping up to US$5.6 million. d/ Includes expenditures required during project implementation such as: personnel, fares and perdiems for training and project coordijation, office materials, office rentals, utlities, publications and promotion, and bidding expenditures. e/ Includes building & equme mntnance, insance, rentals, utilities, publications, and office materials.  11 Schedule B ARGENTINA DECENTRALIZATION AND IMROVEMENT OF SECONDARY EDUCATION PROJECT DISBURSEMENTS WIHRAWALS OF THE PROCEEDS OF THE LOAN Amount of the Loan % of Allocated (wessed in Expnditue Category Dolar Equivalent) to be Financed (1) Civil Works 27,000,000 60% (2) Goods (Informatics and communication 40,000,000 80% equipmet, vehicles, furniture, trainin materials, and didacic materialsequipment) (3) Consultants' services for: (a) Techimcal assistance, taning, studies 57,000,000 90% and auditing (b) NPCU and PPCUs 3,500,000 60% (4) School-based grants and scholarships 12,000,000 100% (5) Incremental recurrent salaries 2,000,000 50% (6) Operaing costs 12,000,000 70% (7) Project implementation costs 18,500,000 60% (8) Unallocated 18.000. TOTAL ESTIMATED DISBURSEMENT SCHEDULE FY95 FY96 FY97 FY98 FY99 Annala 29.4 51.8 45.9 30.6 32.3 Cumnative 29.4 81.2 127.1 157.7 190.0  12 Schedule C ARGENTINA DECENTRALIZATION AND IMPROVEMET OF SECONDARY EDUCATION PROJECT TIMETABLE OF KEY PROJECT PROCESSIG EVENTS (a) Tune taken to prepare : TLwenty Months (b) Prepared by National Ministry of Culure and Education (NMCE) and Provincial Ministies of Education (PMEs) in Cordoba, La Pampa, Mendoza, Misiones, Neuquen, Rio Negro and Santa Fe. (c) First Bank Mission September 1992 (d) Appraisal Mission Departure March 1994 (e) Negotiations July 1994 (f) Planned Date of Effectiveness January 1995 (g) List of Relevant PCRs and PPARs Not Applicable  13 Schedule D Page 1 of 3 ARGENTINA DECENTRALIZATION AND IPROVEMENT OF SECONDARY EDUCATION PROJECT STATUS OF BANK GROUP OPERATIONS IN ARGENTINA As of June 30, 1994 Amount (Wu Loan or cancellaons) Undisbursed Credit Fhcl Number Year Borrower Purpose (USS milbonr Fuly disbursed oas (40) 4,625.0 0.0 2641 1986 Arina Water Supply 44.8 10.3 2654 1987 Argentha Power Distbution 276.0 154.8 2920 1988 Argentn Municipal Development 120.0 24.2 2984 1989 Argenna social Sector 26.0 1.1 3280 1991 Argertina Provicil Development 200. 161* 3281 1991 Argernt Water Supply 100.0 98.8 3292 1991 Argen_ira PEREL 23.0 2.0 3297 1991 ArgerWin Agricultural Sevicee 39.5 19.4 3362 1991 Argentn Pub Sectr Reorm TA 23.0 15.5 3416 1992 YPF Socdad Hydrocaron Engr. 28.0 16.0 Anonim 34 1992 Argent Tax AdmnWstaton 11 20.0 6.0 3520 19 Argnrna Yacyreb it 300.0 72.8 3521 193 Argetina Flood RFhab 170.0 121.7 O556 1996 Argertn Pub Entrpre Rot 3800.0 100.0 3558 199 Argernn Fkiacal Sector Adjustmntr 400.0 10.0 3611 1993 Argenia Road Maitence & Rehab 340. 300.1 3643 1994 Argnta Maternl & Chid Health 100.0 93.5 370911 1994 Argertina Capial Markt 50.0 500.0 37101/ 1994 Argentina Capial Markes TA 6.5 a.5 TOTAL 7639.7 of which has been repaid 2.305S TOTAL NOW OUTSTANDING - S334.2 AMOUJNTSOLD 12.8 of which has been repaid 12.6 TOTAL NOW 1ED BY BANK AND IDA 5,321.4 TOTAL UNDISBURSED 1065 lI Notyet sged. 25-Jul-94  14 Schedule D Page 2 of 3 ARGENTINA DECENTRAL1ZATION AND IMPROVEMENT OF SECONDARY EDUCATION PROJECT STATEMENT OF IFC INVESTMEM IN ARGENTJNA As af Jun 30. 1994 Too Gfsudr." 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