Announcement of 2,750,000 Dollar Loan for Vocational Training in Chile on August 11, 1965

/I 1NTERNATION/\L BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHlhlGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release Ne. 65/37 Subject: $2,750,000 loan for vocational August 11, 1965 training in Chile The World Bank has approved a loan equivalent to $2,750,000 for the expansion of vocational training in Chile. The loan will assist in building and equipping vocational training centers that provide accelerated training for industrial workers in a variety of needed skills. This is the first World Bank loan for the development of human resources in Latin America and the first loan to be made by the Bank anywhere for adult vocational training. The expansion will enable 14,000 additional workers a year to improve their competence and productivity in such key occupations as metalworking, mechanics, electronics, farm equipment, and mining. -- The project will provide Chile with a large part of the skilled manpower it needs for industrial growth and will also increase the earning capacity of the workers. The loan is being made to the Corporacion de Fomento de la Produccion (CORFO) in support of the vocational training program of its affiliate, the Servicio de Cooperacion Tecnica (Servicio). The Servicio was established in 1952 to foster the development of productivity and manpower services. Over the years its func- tion and scope of activities have broadened and now cover three basic services: vocational training for industry and agriculture -- by far the largest of its pro- grams -- technical assistance to Chilean industry, and development of small business. Despite a long history of public education in Chile and a high level of literacy, Chile's school system does not provide vocational skills in the number • or of the kind needed to sustain and expand industrial growth. The International Labor Office assisted the Servicio in determining Chile's skilled and technical  • - 2 - manpower needs, and in studying the job content of key occupations among them; it designed training methods for the practical requirements of the jobs and concen- trated in short courses the essential information necessary to raise quickly the • quality of Chile's labor force. The training is for men already in industry and supplements their present skills. Since the training courses are much in demand: selection is guided by the ability and motivation of the applicant. Servicio's instructors are drawn from industry, are paid a good wage and are trained by the Servicio to carry out its specialized training. The Servicio's vocational training program now produces about 16,000 trained workers a year. The number will be increased to 30,000 when the current expansion is fully realized, and will meet about three quarters of Chile's present need for training of this sort. Three levels of accelerated training are offered: full- time courses, totaling 600 hours in four months, to train unskilled workers to the semi-skilled level; part-time courses of 150-200 hours for two to four months to -- upgrade semi-skilled workers to the skilled level; and part-time courses of 40-80 hours for one to two months to train already skilled workers in new techniques, or to prepare them for foremanship. Training is gi.ven in vocational training centers, in existing industrial schools during evening hours and summer vacation periods, and in mobile workshops. When the current expansion is completed such training will be undertaken in ,46 institutions in 27 cities throughout the country. The main elements of the project being assis.ted by the Bank loan are (a) the construction and equipment of 7 new vocational training centers; structural modi- fication and further equipment for 3 existing centers, and the provision of addi- tional equipment for 4 centers; (b) the provision of equipment for the expansion of courses in 9 industrial schools, and equipment for 18 industrial schools to • start courses; (c) the provision of 5 mobile workshops for the instruction of miners in modern techniques; (d) printing, audio-visual and transport equipment for improved administration of the Servicio's training program. f • - 3 - The total cost of the project is estimated at the equivalent of $3,781,800. The Bank loan of $2,750,000 will finance the foreign exchange requirements. The local currency costs, as well as all recurrent costs, will be met by.CORFO. The loan will be for a term of 30 years and bear inte~est at the rate of 5-1/2% per annum. A.~ortization will begin May 15, 1975 after a 10-year period of grace. The loan will be guaranteed by the Republic of Chile • • •