Colombia - Pasto Education Project

Document of The World Bank Report No. 17112 CO PROJECT APPRAISAL DOCUMENT ONA PROPOSED LOAN IN THE AMOUNT OF US$7.2 MILLION EQUIVALENT TO THE MUNICIPALITY OF PASTO IN THE REPUBLIC OF COLOMBIA FOR AN EDUCATION PROJECT October 17, 1997 Human and Social Development Group Colombia, Venezuela and Ecuador Subregion Latin America and the Caribbean Region  CURRENCY EQUIVALENTS Currency Unit = Peso (As of May 9, 1997) (As of October 8, 1997) US$1.00= 1150.00 Pesos US$1.00= 1244.00 Pesos FISCAL YEAR ACADEMIC YEAR January 1 - December 31 1 September - 30 June ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CMU Country Management Unit DNP National Department of Planning (Departamento Nacional de Planeaci6n) EDI Economic Development Institute FER Regional Eduction Fund (Fondo Educativo Regional) FINDETER Finance Center for Fish and Agriculture Sector (Financiamiento para el Sector Agropecuario) FIS Social Investment Fund (Fondo de Inversi6n Social) FMM Financial Management Manual FSD School Management Accounts (Fondo de Servicios Docentes) GOC Government of Colombia IBRD International Bank for Recontruction and Development ("World Bank") ICFES Secondary School Existing Exam IDA International Development Association IEC Information, Education and Communication IFC International Finance Corporation JUME Municipal Education Board (Junta Municipal de Educacidn LCSHD Latin America and the Carribean Social and Human Development Group MIS Management Information System MOE Ministry of Education NEBI Unattended Basic Education Needs (Necesidad Educativa Basica Inmediata NGO Non-Governmental Organization PCU Project Coordinating Unit PDR Network Development Plan (Plan de Desarrollo de Red) PEI School Education Project (Proyecto Educativo Institucional PHRD Policy and Human Resources Development Fund PPF Project Preparation Facility POA Annual Investment Plan (Plan Operativo Anual) SA Special Account SEM Municipal Secretariat of Education (Secretaria de Educacion Municipal) SIP School Improvement Plan SOE Statement of Expenses TOR Terms of Reference WB World Bank Vice President: Shavid Javed Burki, LAC CMU Director: Andres Solimano, LCC4C Manager: Julian Schweitzer, LCSHD Education Specialist Donald Winkler, LCSHD Sector Leader Constance Corbett, LCC4C Task Manager: Joel Reyes, LCC4C  COLOMBIA PASTO EDUCATION PROJECT Table of Contents Page BLOCK 1: PROJECT DESCRIPTION ..................................................................................... 2 1. PROJECT DEVELOPMENT OBJECTIVES ................................................................................................2 2. PROJECT COMPONENTS .................................................................................................2 3. BENEFITS AND TARGET POPULATION .................................................................................................3 4. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS .............................................................................................4 BLOCK 2: PROJECT RATIONALE ..................................................................................... 6 5 CAS OBJECTIVES SUPPORTED BY THE PROJECT ...................6...................... _ .__ ..__.. .........6 6. MAIN SECTOR ISSUES AND GOVERNMENT STRATEGY .6 7. SECTOR ISSUES TO BE ADDRESSED BY THE PROJECT AND STRATEGIC CHOICES .8 S. PROJECT ALTERNATIVES CONSIDERED AND REASONS FOR REJECTION. 9 9. MAJOR RELATED PROJECTS FINANCED BY THE BANK ANDIOR OTHER DEVELOPMENT AGENCIES 11 10. LESSONS LEARNED AND REFLECTED IN THE PROJECT DESIGN ............................................................. ......................... 13 11. INDICATIONS OF BORROWER COMMITMENT AND OWNERSHIP ............................................................. ........................ 13 12. VALUE ADDED OF BANK SUPPORT ................................................................................................ 13 BLOCK 3: SUMMARY PROJECT ASSESSMENTS ..................................................................................... 14 13. ECONOMIC ASSESSMENT ................................................................................................. 14 14. FINANCIAL ASSESSMENT ................................................................................................. 14 15. TECHENICAL ASSESSMENT ........................................................... . 15 16. INSTITUTIONAL ASSESSMENT ................................................................................................. 15 17. SOCIAL ASSESSMENT ................................................................................................. 16 18. ENVIRONMENTAL ASSESSMENT ................................................................................................. 16 19. PARTICIPATORY APPROACH ................................................................................................ 17 20. SUSTAINABILITY ................................................................................................. 17 21. CRITICAL RISKS ......... ................................... ..................................................... 18 22. POSSIBLE CONTROVERSIAL ASPECTS ................................................................................................ 19 BLOCK 4: MAIN LOAN CONDITIONS ...................... ............................................................... 19 23. EFFECTIVENESS CONDITIONS ................................................................................................. 19 24. OTHER................................................................................................. 19 BLOCK 5: COMPLIANCE WITH BANK POLICIES ..................................................................................... 20 ANNEX 1: PROJECT DESIGN SUMMARY ................................................................................................ 21 ANNEX 2: DETAILED PROJECT DESCRIPTION ................................................................................................ 25 ANNEX 3: ESTIMATED PROJECT COSTS ................................................................................................ 30 ANNEX 4: ECONOMIC PRINCIPLES THAT GUIDE PROJECT DESIGN ...................................................1........ 31 ANNEX 5: FINANCIAL SUMMARY ................................................................................................. 35 ANNEX 6: PROCUREMENT AND DISBURSEMENT ARRANGEMENTS ....................................................................................... 37 ANNFX 7: PROJECT PROESSING BUDGET AND SCHEDULE ................................................................................................ 43 ANNEX 8: DESCRIPTION OF IMPACT AND PROCESS EVALUATION TORS ................................... ......................................... 44 ANNEX 9: DOCUMENTS IN THE PROJECT FILES ......................................... ................................................ 46 ANNEX 10: STATEMENT OF LOANS AND CREDITS .............................................. .................................................. 47 ANNEX 11: COLOMBIA AT A GLANCE ............................ .. . 48   INTERNATiONAL BANK FOR REcoNsTRucTioN AND DEVELOPMENT INTERNATIONAL DEvELoPMENT AssoCIATION Latin America and the Caribbean Regional Office LCSHD Project Appraisal Document COLOMBIA - MUNICIPALITY OF PASTO Education Project Date: October 16, 1997 [ ] Draft [x] Final Task Manager: Marco Mantovanelli, LCSHD Country Unit Manager: Andres Solimano, LCC4C Project ID: CO-PA-46112 Sector: Education Lending Instrument: Specific Investment Loan PTI: [x] Yes [ ] No Project Financing Data [xl Loan [] Credit l ] Guarantee [ Other (specify) For Loans/Credits/Others: Amount: US$ 7.2 million Proposed Terms: not negotiated [ Multicurrency [xl Single currency Grace period (years): 4 [] Standard [] Fixed [x ] LIBOR-based Variable Years to maturity: 17 Commitment fee: 0.75% Service charge: 0.0% Financing plan (US$m): Source Local Foreign Total Municipal Government 4.8 - 4.8 IBRD/IDA 5.9 2.3 7.2 ............................................................ ............................................................................................. ....................................................... ....................................... Borrower: Government of the Municipality of Pasto, Colombia Guarantor: Government of Colombia, Ministry of Finance Responsible agency(ies): Municipal Secretary of Education Estimated disbursements (Bank FY/US$M): 1998 1999 2000 2001 2002 Annual 2.0 2.2 1.9 0.9 0.2 Cumulative 2.0 4.2 6.1 7.0 7.2 ........ ....................................................................................................... .............. ................................................................... .......................... .. .......... ............... For Guarantees: [] Partial Credit [ Partial risk Proposed coverage: Project sponsor: National Govermnent of Colombia Nature of underlying financing: Terms of financing: Principal amount (US$) Final maturity Amortization profile naci~ gavailable without uarantee?: j>J Yes [. If yes, estimated cost or maturity: Estimated financing cost or maturity with guarantee: Expected effectiveness date: January 31, 1998 l Closing date: June 30, 2002  Pasto Education Project Page 2 Block 1: Project Description 1. Project development objectives (see Annex 1 for key performance indicators) The Project development objectives are to: (a) improve the capacity of schools, education communities and the municipality to provide effectively and in a participatory way their respective education services.(b) contribute to the municipality's goal of improving student learning, school access and retention rates in the territory of the municipality and; The Project will achieve the above-mentioned objectives through: (i) a short term strategy supporting and financing Municipal plans to address Basic Unattended Educational Needs (Necesidades Educativas Basicas Insatisfechas - NEBIs), such as provision of basic education materials, urgent school infrastructure rehabilitation and expansion of access; (ii) financing a set of activities aimed at strengthening the capacity of the Municipal Education Secretariat (Secretaria de Educaci6n Municipal - SEM) to coordinate the execution of the Project and discharge its managerial and advisory role and (iii) a medium/long tenn strategy supporting and financing the development of Educational Networks (Redes Educativas) and the implementation of their education improvement plans. As an important corollary to the achievement of the above development objectives, the project aims also at providing lessons and valuable experiences, for the design of a national strategy to support municipal and departmental education investment programs in the framework of education decentralization. The departmental project designed in Antioquia in parallel to this operation is an integral part of the same learning strategy. All Departments and Municipalities over 100,000 are expected under the law to assume responsibility for the management of sectoral resources, investment planning and implementation. 2. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown) Component Category Cost ncl. % of Contingencies Total (US$M) NEBIs (Necesidades Educativas Basicas Insatisfechas - . Educational Materials 6.7 56 Basic Unattended Educational Needs) - would provide . Training resources (educational materials, training, civil works, furniture . Furniture and Equipment and equipment) for public schools (grade 0-9) of the municipal * Civil Works territory. The objective of the component is to provide a minimal level of educational materials (classroom libraries, pedagogical support material and teaching tool kits), teacher training on the use of these materials and urgent infrastructure rehabilitation. Additionally, the component would finance the expansion of school access through the construction of new classrooms, the substitution of classrooms in serious state of disrepair and contracts with nonprofit institutions. The above financing will be used as an incentive to schools and communities for the development of the School networks - Redes. Resources will be targeted to benefit more the schools and communities most in need. INSTITUTIONAL STRENGTHENING - . Physical (maintenance) 2.4 20 Resources (technical assistance, training and systems . Pedagogical Innovation development) would be provided to strengthen the SEM to fully * Training assume the management of the decentralized sector. Workshops . Educational Materials and specific technical assistance will promote and guide the . Institutional Building early development of the Redes. Additionally, a strategic media . Community Participation and public relations campaign will be designed to disseminate the objectives, implementation and results of the Project. Social marketing efforts will also be incorporated to promote positive behavior changes in the education sector.  Pasto Education Project Page 3 REDES - SCHOOL NETWORKS - * Physical (maintenance) 2.9 24 12 Redes, each comprising about 15 public schools (grades 0- * Pedagogical Innovation 9), would be created on the basis of geographic contiguity and * Training socioeconomic homogeneity criteria. The school communities of * Educational Materials the Redes would develop and implement their own education * Institutional Building development subprojects (as part of the Planes de Desarrollo * Community Participation de Red - PDRs). These subprojects would be demand-driven, and their preparation would be accompanied by promotional and technical assistance efforts to develop school and community capacity to prepare and assess projects as needed. Five Redes would participate in a pilot phase to be evaluated and then expanded to include seven additional Redes. Total 12.0 100 3. Benefits and target population The Project is expected to produce social, economic and institutional benefits with regards to: a) Social Benefits . Increase access to basic education in the Municipality to compensate for school age population growth . Increased quality of compulsory Education cycle . Increased learning and achievement of 5-15 year olds in participating communities . Greater equality of educational opportunities . Increased motivation of teachers, students and parents to integrate school teaching and learning with community outreach events