Announcement of Six Million Dollars Financing for an Education Project in Honduras on December 28, 1973

... 4, .. INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVI~LOPMENT ASSOCIA'rION 18 18 H STREET, N W WASHINGTON D.C,20433 TELEPHONE. EXECUTIVE 3-6360 Bank Press Release N° 73/83 Subject: $6 million financing for an education IDA Press Release N° 73/93 project in Honduras December 28, 1973 The World Bank Group has agreed to provide development aid totaling $6 million for an integrated program of assistance to the educational system in Honduras. The Group's financial assistance consists of a $3 million Bank loan and a $3 million IDA credit. The project will improve primary school teacher training, increase·vocational training for middle-level agricultural workers and industrial workers, and establish experimental rural training centers for farmer training, home· economics and rural community leadership. The project, the Bank Group's first for education in eaonduras, will also include related technical assistance and fellowships for training abroad. The Honduran education system has grown rapidly in the last 10 years. Enroll- ments increased annually by about 6% in primary education, 12% in secondary schools and 15% in higher education. Public expenditure for education has increased in recent years and now stands at 21% of total public expenditure. The Government intends to improve the quality and efficiency of the educational system by modernizing teaching methods and curricula, upgrading teacher staff and improving physical facilities, increasing educational opportunities in the rural areas and expanding non-formal vocational training. To improve the quality of primary school teachers, the project will build . two new and expand two existing teacher training schools. Teacner trainees will practice in 12 application primary schools to be constructed in rural areas. New facilities for the existing secondary teacher training college and agricultural secondary school will also be built. Two vocational training centers will be established under the Instituto Nacional de Formacion Profesional (INFOP). These .centers will upgrade some 7,200 workers and train about 1,200 new entrants to the /more  • . , .. Bank P.R. N° 73/83 - Honduras - Education IDA P.R. N° 73/93 work force each year. - 2 - In addition, some 2,000 to 3,000 workers will be trained • on the job through in-plant programs. Three new agricultural training centers will be constructed and equipped to offer courses to far,µers and homemakers in farming meth~ds, organization of cooperatives, home management and connnunity leadership. The centers will also train extension workers and youths in rural development activities. The project will include technical assistance in various phases of educational improvement. The total cost of the project is estimated at the equivalent of $8.7 million, of which $5 million represents foreign exchange costs. The Bank loan and IDA credit will finance about 69% of total project costs. The remaining costs will be met by the Honduran Government. The project was identified and prepared under the World Bank-Unesco Cooperative Program. The Bank loan is being made to the Republic of Honduras for 30 years, including 10 years of. grace, with interest at t-1/4% per annum. The IDA credit • is for 50 years, with 10 years of grace, and is interest free ex~ept for 3/4 of 1% service charge to cover IDA's administrative costs. \ 0 • • TECHNICAL DATA PROJECT: Education COUNTRY: Republic of Honduras TOTAL COST: $8. 7 million BANK FINANCING: $3 million for 30 years• including 10 years of grace, with interest at 7-1/4% per annum. IDA FINANCING: $3 million for 50 years, 10 years. of grace, interest free except for 3/4 of 1% service charge to cover IDA's admin- istrative costs • • OTHER FINANCING: Government of the Republic of Honduras IMPLEMENTING ORGANIZATION: Project Unit within the.Technical Secretariat of the Consejo Superior de Planificacion Economica. PROJECT DESCRIPTION: Apart from technical assistance, the Bank loan and IDA credit will help to finance construction, furniture and equipment for the following institutions: two new and extension of two existing regional primary teacher training schools; 12 new rural applica~ion primary schools; new facilities for the existing teacher training college; one application secondary. school; two vocational training centers; one industrial training development center; three new agri- cultural. training centers; and the expansion of the existing agricultural secondary school. PROCUREMENT: International competitive bidding for furniture equipment contracts of US$5,000 equivalent or more with a 15% preference margin for local bidders of the c.i.f. bid price or the currently applicable import duty, whichever is lower. Contracts for civil works, except for the rural primary application schools, will be awarded on the basis of inter- national competitive bidding. Architectural and engineering design work not carried out by Government will be contracted to consulting firms under terms and conditions satisfactory to the Bank and IDA. •• COMPLETION DATE: 1978 • 0