Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3283b-NI NICARAGUA STAFF APPRAISAL REPORT BASIC EDUCATION PROJECT (EDUCATION III) April 2, 1981 Regional Projects Department Latin America and the Caribbean Regional Office 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. Currency Equivalents (as of January, 1981) Currency Unit = Cordoba (C$) US$ 1.0 = C$10 C$ 1.0 = US$0.10 C$ 1.0 million = US$100,000 Measures 1 square meter (m ) = 10.76 sq. ft. 1 kilometer (km) = 0.62 miles Government of Nicaragua Fiscal Year January 1 to December 31 Academic Year September - June (1980) NICARAGUA FOR OFFICIAL USE ONLY BASIC EDUCATION PROJECT Contents Page No. BASIC DATA ............ . . . . . . ............ i 1. INTRODUCTION .................. . . ....... 1 2. BASIC EDUCATION SUB-SECTOR.. 2 A. Issues in Basic Education ................................ 2 Unequal Participation in Primary Education ............... 2 Low quality of Education. 4 The Need for Continuous Programs for the Adult Population 5 B. Plans and Programs. 7 Government Sector Policy and Strategy. 7 3. THE PROJEC'.. 9 Objectives and Content. 9 Project Components .10 A. Primary Education .10 Physical Facilities .10 Organization of Physical Facilities .10 Training .12 Textbooks ..15 Fellowships and Consultancy Services .15 B. Adult Education .15 Physical Facilities .................. ............... 16 Training ....... ........... ..................... 17 Course Content .18 Fellowships and Consultancy Services .18 4. PROJECT COST, FINANCING AND IMPLEMENTATION .20 Cost of the Project .20 Base Costs .21 Contingency Allowances .21 Foreign Exchange Component .22 Duties and Taxes .22 Financing Plan .22 Recurrent Costs ..23 Unit Recurrent Costs .................... 25 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. TABLE OF CONTENTS (Continued) Page No. Project Administration and Implementation .............. .. 25 Administration ................................... 25 Readiness for Implementation . . 26 Implementation . . ............. 26 Procurement ...27 Disbursements .............................. 27 ltonitoring and Evaluation ..28 Monitoring ..28 Evaluation ......................... 29 5. BENEFITS AND RISKS ..30 Benefits .30 Risks .31 6. AGREEMENTS REACHED .32 TABLES 2.1 Representation Indices and Net Enrollment Rates by Department, Total and Rural, 1978. 3 3.1 Distribution of New Facilities Provided under the Project by Department .11 3.2 Participants, Main Course Content and Total Duration of the Training Courses for the Personnel of Primary Education .................... 14 3.3 Fellowships and Study Tours for Primary Education .15 3.4 Location of the Rural Adult Schools .16 3.5 Participants, Mlain Course Content and Total Duration of the Training Courses for the Personnel of Adult Education.. 17 3.6 Fellowships and Study Tours for Adult Education .19 4.1 Total Cost of the Project by Type of Expenditures .20 4.2 Schedule of Estimated Expenditures and Disbursements 22 4.3 Estimated Annual Recurrent Costs for School Nuclei and Rural Adult Schools to be Generated by the Project .23 4.4 GDP, Central Government, Ministry of Education and Project Recurrent Expenditures, 1975-1980-1986 .24 TABLE OF CONTENTS (Continued) ANNEXES 1. Comparative Education Indicators. 2. Summary of Total Project Cost. 3. Criteria for Locating the Physical Facilities Provided under the Project. 4. Selected Documents and Data Available in the Project File. CHARTS 1. Structure of the Education System 2. Organization of the Ministry of Education 3. Administrative Organization Chart of PIIJ 4. Implementation Schedule 5. Implementation, Expenditures and Disbursements Diagram MAP This report is based on the findings of missions to Nicaragua during August/September and November, 1980, composed of Messrs. Y. Tencalla (Educator and mission leader), L. Concepcion (Architect), M. Botti (Economist, UNESCO), and A. Zuniga-Wager (Architect, consultant). . NICARAGUA Basic Data Enrollments and Participation Rates, by Level Enrollment Rates Level Enrollments (1978) Gross (%) Net (%) Primary 379,000 79 61 Urban 250,000 101 76 Rural 128,000 56 44 Secondary 99,000 29 4 Teaching Force by Level (1978) Urban Rural Total Primary level 6,000 2,600 8,600 Secondary level 2,700 Student: Teacher Ratios, by Level (1978) Primary level 41:1 49:1 44:1 Secondary 37:1 Education Finance (1979) Public Expenditure on Education as % of GNP 3% Public Expenditure on Education as % of Total Public Expenditure 14% Recurrent 98% Capital 2% 1. INTRODUCTION 1.01 The Bank group has supported educational development in Nicaragua through two education loans. In addition, an Earthquake Reconstructicn Project (Credit 389-NI, closed on March 31, 1980) provided US$2.0 million f,)r the reconstruction of 6 secondary schools and one technical college. The First Education Loan (Loan 532-NI, US$4.0 million, signed on April 10, 1968, completed on March 31, 1978), built or expanded 18 secondary schools and 3 teacher training colleges. The project completion report indicates that "the educational objectives originally set had generally been satisfactorily attained...", and that "enrollment of project schools in 1977... was 60% above the appraisal target...", even under the most difficult political circumstances. Nevertheless, it could not fully realize the qualitative improvements in the secondary education system mainly because of unforeseen circumstances (natural disasters and civil war). The two lessons drawn in the report are: (i) the project unit should have full authority over project implementation; and (ii) standardization of equipment and furniture, and of buildings' designs should be considered. The Second Education Loan (Loan 1244-NI, US$11.0 million, signed on June 15, 1976), supports the expansion of access to basic education in rural areas by establishing 18 education nuclei and 18 lower secondary schools in eight departments (50% of the total number). The Second Education Project is being implemented satisfactorily, although about 10% of primary schools along the frontier area with Honduras will not be built, because of security problems. The project is expected to be completed bv the completion date of June 1981, postponed by one year because of the civil war. 1.02 The new Government, which assumed power in 1979, places education among the top development priorities of the country. Formal primary and adult basic education and training are the two top priorities of its educa- tional policy. In July 1980, the Government submitted an education project to the Bank for possible financing, which focuses on basic education (primary and adult). The project request document prepared by the Ministry of Education formed the basis for the Bank's appraisal, carried out by missions visiting the country in August/September and November 1980. The proposed Basic Education Project would include IBRD/IDA financing of US$38.0 million to assist the govern- ment in: (a) increasing enrollments in primary education in the remaining eight departments not covered by the Second Education Project; (b) improving the quality of primary education offered in rural areas; (c) expanding educational programs for adults and out-of-school youths, together with training in agri- cultural skills. 1.03 The proposed project is recommended for Bank financing because: (a) it is relevant to the priority needs in education of the country and is consistent with current goverment policies; (b) it is feasible in terms of the projected financial and implementation capacities of the Ministry of Education; and, (c) it is economical in that it would encourage a more rational utilization of the existing school infrastructure and improve the productivity of the labour force in the project areas. These matters are considered in sequence in the following chapters. - 2 - 2. BASIC EDUCATION SUB-SECTOR A. Issues in Basic Education 2.01 The Nicaraguan education system faces three main issues: (a) unequal participation of the school age population in primary education among the various regions of the country; (b) the low quality of primary education offered in rural areas; and (c) the need for continuous educational programs for the population. An effective solution to these key issues is essential for the success of the socio-economic policy defined by the new government. This policy is based on the active participation of all citizens of the country in the national development process. Such a participation is possible only if both the young and adult population, throughout all the regions of the country, attain at least a common basic educational level. This basic education, to be effective, must be: (i) equally accessible to all school-age youths; (ii) of good quality; and (iii) differentiated in its content in accordance with the needs of the youngsters and the adults. Unequal Participation in Primary Education 2.02 Inequalities in participation in primary education in rural areas are mainly evidenced by: (a) insufficient enrollment rate; and (b) the high wastage in the system. These two factors discriminate against rural people and create imbalances in access among regions of the country. 2.03 Insufficient enrollment rate. Between 1973 and 1978, gross enroll- ments at primary level increased by 16% from 327,000 to 379,000, reaching a net enrollment rate of 67%. Although enrollments in rural areas increased by 20% in the same period (from 107,000 to 128,000) total coverage remained low at 44% of the relevant age group (compared to 76% for urban areas). Great disparities in access to formal primary education exist among the 16 depart- ments of the country; the net enrollment rates range from 26% (Department of Jinotega) to 82% (Department of Esteli) and rural representation indices 1/ vary from 0.44 (Jinotega) to 1.52 (Zelaya) as shown in the following table: 1/ Percentage of national school enrollment in grades 1-6 in any given department divided by the percentage of national school age population 7-12 years old in that department. - 3 - Table 2.1: Representation Indices and Net Enrollment Rates by Department, Total and Rural, 1978 Department Representation Net Enrollment Indices Rate Total Rural Total Rural (%) (%) Boaco 0.76 0.73 47 Carazo 1.28 1.44 78 Chinandega 1.15 1.19 71 Chontales 0.84 0.57 51 Esteli 1.28 1.29 82 Granada 1.15 1.26 70 Jinotega 0.46 0.44 26 Leon 0.89 0.82 3 Madriz 0.85 0.81 55 Managua 1.06 1.40 65 Masaya 1.07 1.25 66 Matagalpa 0.78 0.62 49 Nueva Segovia 0.73 0.57 45 Rio San Juan 1.00 1.13 53 Rivas 1.12 1.27 68 Zelaya 1.22 1.52 71 Nicaragua 1.00 1.00 61 44 Source: Mission calculations based on MED 1/ statistics. 2.04 Different primary enrollment rates by region are caused mainly by lack of facilities, their dispersed locations and lack of teachers in isolated areas. About 50% of the departments have an absolute deficit of facilities in relation to their respective rural school age populations. Schools are often dispersed, compelling students to walk distances exceeding 5 km. This factor discourages potential students from enrolling at all. It causes late enroll- ment for the physically weaker children, not being able to walk long distances particularly under rough weather conditions. The overall demand of primary teachers is expected to be met in the near future by: (i) the estimated output of about 500 primary teachers from the four existing teacher training colleges; and (ii) the construction of four integrated educational complexes at secondary level, offering also teacher training streams (with financial assistance by USAID). Nevertheless, in isolated areas of the country there is a lack of teachers because of the absence of teachers' accomodations. This deters teachers from accepting service in rural areas, and adds to the general unattractiveness of the rural teaching service for teachers who are trained in an urban environment (all existing four teacher training colleges are located in urban areas). Rural teachers do not commonly teach in their home communi- ties although they usually remain within their Departments. It is, therefore, 1/ MED= Ministry of Education -4- common practice in Nicaragua for a rural teacher in remote areas to return home only for the week-ends. The provision of free lodgings (as planned by the government) would provide strong incentive for teachers to serve in isolated rural areas. 2.05 The high wastage in the system is particularlv acute in rural areas. In 1978, only about 7% of the original rural cohort reached the sixth grade, compared to 39% for urban enrollments. The efficiency ratio 1/ of the system for the first five primary grades was 17% for rural areas and 59% for urban areas. About 52% of rural primary level students were concentrated in grade I compared to 27% for urban students. Overage students represented about 20% of rural enrollment, and 11% for urban enrollment. Over the period 1973-73, it took 29 student-years to produce a rural sixth grader, compared to 8 student- years for an urban student. One major factor for student dropout is the opportunity cost for parents: children are withdrawn from school during peak labor periods in the fields when they are immediately productive. School and crop calendars do not coincide; therefore, students who have to work in the fields may have missed so much classwork that they dropout for the whole school calendar year. Those who return to school the following year have to repeat, creating overcrowding of the classes. A second major factor is the fact that about 90 % of existing rural schools are incomplete and offer. only a maximum of four grades. Rural children, therefore, rarely can complete full primary education. In schools where only two or three grades are offered, teachers often make students repeat some grades on purpose. Students can thereby attain at least a consolidated literacy level. Nevertheless, this procedure results in further overcrowding of classes. Low Quality of Education 2.06 The quality of primary education offered in rural areas is partic- ularly low. Presently, there are no reliable indicators on general learning achievements in rural areas of Nicaragua. Learning quality can be measured indirectly by inputs such as physical facilities, level of teacher education and availability of textbooks. A substantial proportion of school premises are in bad conditions. About 50% of the existing facilities are in "iunusable" conditions. Only about half of the rural teachers are fully qualified, compared with about 80% for urban teachers. Rural teachers are not trained in multigrade teaching techniques, which are indispensable for proper teaching in multigrade rural classrooms (i.e. where two or three grades are taught in one classroom at the same time). Presently, the curriculum of the teacher training colleges does not differentiate between the needs of the teaching service in urban and rural areas in terms either of content or of applied pedagogy. Until 1979, textbooks were used almost exclusively in urban schools, where parents could afford direct costs of attendance including textbooks. 2/ In 1979/80 the government received direct assistance from bilateral sources in an effort to overcome the acute shortage of textbooks for rural areas. A further factor of low quality derives from the loose supervision of the rural schools system. This deprives rural teachers of necessary pedagogical support. The supervisory network is presently organized as follows: regional education offices (covering one to 1/ Ratio of successful student-years completed to the total number of student-years invested. 2/ A survey conducted in 1977 of 13 rural and 7 urban schools showed that textbooks availability ranged from 2 to 28 per classroom. - 5 - three Departments, and under direct responsibility of the V;ce Minist- c'{ School Administration) supervise circuit supervisors through six supervisors in each office, specialized according to curriculum subjects. In each educa- tion circuit (presently covering one to two municipalities), a circuit super-- visor performs mainly inspection tasks on all primary schools within the circuit, with practically no pedagogical assistance to the teachers. The ratio circuit supervisor:teachers is presently 1:66 (national average); this ratio is as high as 1:160 in certain rural areas. 2.07 The differences in primary enrollments and in quality of educaticn between urban and rural people and among geographical areas lead to serious consequences for the country. First, people from rural areas and sparsely populated regions of the country are virtually excluded from access to middle- high and professional level technical occupations, because they have no access to secondary and vocational education. A great potential in human resources is, therefore, not exploited. Second, the imbalanced growth of basic level enroll- ments tends to discriminate against the rural population, adding thereby to their marginality. The access to more modern techniques in farming and small industries and to such social programs as health and nutrition is limited. Thirdly, more than two thirds of the financial effort by the government in primary education is spent on pupils who drop out before grade 4 and therefore for all practical purposes, do not achieve permanent literacy. 2.08 The solution to the problem of differences in access consists in correcting imbalances by providing more physical facilities (both schools and housing for selected teachers) in underserved areas. Such provision of facil- ities must take into account not only potential students (and, therefore, demographic variables) but also the socio-geographical conditions of the catchment area of each school, such as topography, existing facilities, inter- village relationships and calendar of social events. The collection of such data, which is usually carried out through a school mapping exercise, would provide the basic frame on which to plan and distribute facilities. The use of such facilities, their administration and the network for pedago- gical support form a system which ought to be as simple and rational as possible, so as to allow the maximum efficiency with the given investments. This system allows also for substantial quality improvements through strengthened school supervision. Additional improvements in quality would be achieved through regular in-service training of teachers and school administration personnel, and distribution of textbooks and teachers' guides. The Need for Continuous Programs for the Adult Population 2.09 Until 1980, the educational level of the adult population was low: about half the adult population was illiterate. In absolute terms, about 800,000 adults over age 15 were illiterate. In addition, an estimated 450,000 young people aged 15 to 24 years had received less than three years of basic education and were, therefore for all practical purposes, functionally illi- terate. The labor force reported similarly low educational attainments, with only 6% having received post-basic education. The causes of this situation, were multiple and rooted in socio-political factors. Some examples are: (a) the traditional neglect shown by the public sector for the rural living conditions (as an example, all teacher training colleges are located in urban - 6 - areas, 96% of rural youths have no access to secondary education); (b) the concentration of the educated and trained population in urban zones creating a pressure for more and better investments in the same areas to the detriment of the needy rural regions; (c) the lack of social pressure by the rural population for more and better education; and, (d) the general belief by urban educated people that education was not required for the simDle activities, both farm and off-farm, performed by rural people. 2.10 The cumulative effects of the low educational achievements of the adult population, particularly rural, accentuated the concentration of economic power into a small core of well educated and trained people, mainly in urban areas. The lack of education and basic-training by the adults has limited the skilled occupational mobility even within the same rural sector. This partly explains the low productivity of the population active in the primary sector. 1/ The unavailability of skilled manpower in rural regions has not given incentive to productive investments, thus adding to the traditional population migration to urban or suburban centers, which is generally due to the great socio-economic appeal of these areas. 2.11 A country with great agricultural potential such as Nicaragua cannot afford to waste would-be-productive human resources. The recovery plan outlined by the new government called for the immediate active participation of all the adult population in the country's development. Urgent measures were taken. In the education sector the government decided that a widespread system for adult education had to be urgently organized. The first step in setting up this program was the launching in March 1980 of a five-month national literacy campaign (Cruzada Nacional de Alfabetizacion) under administrative responsibi- lity of MED. About 180,000 secondary students, teachers, militia persons, adult volunteers and foreign assistants, instructed an estimated population of 500,000 illiterates throughout the entire country, with strong backing of mass media (radio, newspaper and printed materials distributed to the participants). The total cost was estimated at about US$20 million; the unit cost per partici- pant was approximately US$40. The campaign officially ended in August, 1980 and was, according to government sources, highly successful. A second phase has been started to reach minority groups along the Atlantic coast (English speaking, miskitos and rama) and the estimated remaining illiterate 10% of the total population. The Ministry of Education, with assistance from UNESCO, will soon start an evaluation of the educational achievements of the campaign. CELADE 2/ and some bilateral agencies together will carry out an evaluation study of the whole campaign. 1/ The production per capita (active population) is about US$1,500 for the primary sector, compared to US$3,500 and US$2,050 for the secondary and tertiary sectors, respectively. 2/ Latin American Centre for Demographic Studies, with headquarters in Santiago de Chile. -7- ?.1' The second step 1n ttmq process of setting-up a permanent adult education system, called "' upport` (sostenimiento), started immediately 1f ter f; -, c3ncln i on of t:' litaracy campaign with the creation of a new lctu M.i7istry 1-!. 1t L<A ,uioi- tJ an ellocated budget of US$12 million) .u .h, ,3 tun t -ning o. the 0leceTltralized provisional mechanisms at municipal leb7el, set i1p -,L' the literacy campaigu. This step will lead to the "follow-up" phase (seguimiento) namely the creation of the permanent structures at all levels (Chart 1), forming the mechanisms through which all non-formal adult education and cultural programs will be given. These mechanisms will be based on '"tunicipal Adult Education Committees," responsible for planning and coordinating all aduilt education activities. The primary schools organized into the nuclear system will provide the facilities for such activities with the involvement of rural teachers. B. Plans and Programs Government Sector Policy and Strategy 2.13 The Ten Year Education Development Plan (1971-80) implemented under the previous regime emphasized the expansion of secondary education, particularly at pre-vocational level as a means for preparing graduates for entry into the labor market. A reformulation of the plan in 1975 tried to correct the imbalance in access created at basic level by according higher priority to the poorer segments of the population living in rural areas. The revision emphasized formal and non-formal education and agricultural training. The achievement of equal access i basic education was deferred by the subse- quent political events. 2.14 In 1979, the new government took some measures having a long-term social impact: education was declared compulsory and free for all students at primary and secondary levels (grades 7 to 11/12), teacher salaries were increased by about 40%, a provisional new basic level curriculum was applied which gives more emphasis to practical activities, the decentralization of the education system was initiated, two new vice ministries were created (Planning and Education Administration, Chart C-2). The most striking social program has been the accomplishment of the massive national literacy campaign which reached illiterates even in the most isolated areas of the country (para. 2.11). 2.15 One of the fundamental axioms for social development, as advocated by the new government, is the need for developing a "new man" (el hombre nuevo) to participate in the development process of the country. This objec- tive involves a long-term and a short-term strategy: the long-term strategy aims at expanding and improving primary education for the youngest population as a means to sustain any future human development. The short-term strategy seeks to consolidate the basic education attainments of the adult population as a follow-up to the achievement of full literacy. The government has chosen to attack the two fronts at the same time with considerable financial effort. A new "Three-Year National Plan for the Development of Education" is to be completed by the end of 1980. The draft plan has already outlined basic principles for the new education system, such as: (a) the strict relevance of education at all levels to the world of work; (b) a close integration between - 8 - primary formal and non-formal education in terms of utilization of both human and physical infrastructure; and, (c) the need for institutionalizing life-long education. For the school calendar 1981/82 the Ministry of Education will start the distribution of one textbook per student and per grade, covering all subjects, to rural schools giving priority to project schools. By the school calendar 1982/83, five basic textbooks per student and per grade (one for each subject) and teachers' guides would be distributed. These textbooks would be based on a full revision of the primary curriculum, 1/ allowing time for increased and better organized practical activities, to be completed in 1981 and tested in 1982. 2.16 The Ministry of Education plans to expand access to primary education in rural areas by strengthening the "nuclear" approach. This system has been introduced on a limited scale under the Second Education Project, Loan 1244-NI. The number and location of school facilities to be built or expanded is determined by a school mapping exercise (para. 2.07). A number of satellite schools of 4 grades are organized around sub-central schools having four or six grades. These schools are organized around a central school of 6 grades, so as to provide access to the six years of basic education to all school-age children within a certain catchment area; furthermore, the central school represents the focal point from which the pedagogical supervision is provided and the distribution of all teaching/learning materials will be organized. This system has already been adopted widely in Latin America and has proved fundamentally sound. 2.17 The urgent need for raising agricultural productivity justifies a new approach to education-and-work, to be sought through new rural adult schools. Together with the above non-formal structure, the Ministry of Education plans to introduce accelerated basic education for adults. About 27 "rural adult schools" are to be built within the next four years. These will offer: (a) two- to four-year accelerated basic education courses for young rural people; (b) agricultural courses of a maximum duration of 10 months; and (c) short courses on various skills (including nutrition, hygiene, cooperativism and home economics) for rural adults. The total duration of the agricultural courses (approximately ten months) is determined by basic instructional "packages" of one month duration each; these will deal with the main crops and animal husbandry typical of the regions where the schools will be located. 1/ With assistance provided under the proposed project (para 3.14). - 9 - 3. THE PROJECT Objectives and Content 3.01 The proposed project addresses the three top priorities of the Nicaraguan education system, namely the need for increasing participation in primary education, for improving the quality of primary education offered in rural areas, and for expanding basic education programs for the adult popula- tion (para. 2.01). More specifically, the proposed project pursues five major objectives: (a) to increase participation by about 20% in primary education in rural areas by providing: (i) about 720 new classrooms; (ii) about 90 teacher lodgings to accommodate teachers and visiting school supervisors and other personnel in charge of adult education programs. These lodgings would be located in isolated areas of the project departments; (b) to reduce wastage of primary level bv: (i) applying the school nuclearization system in distributing the new facilities, allowing better participation of students by reducing commuting time and distances, and promoting the completion of the full six grades of primary level; and (ii) adapting gradually the school calendar to the crop calendar so as to avoid recurrent student dropout; (c) to improve the quality of primary education by: (i) substituting about 200 classrooms, presently in unusable conditions, with new premises; (ii) training all the teachers (about 1,300) of the project school nuclei in multigrade teaching techniques, to improve their teaching within the school system; (iii) upgrading school supervisors and directors of school nuclei (about 80) to improve the efficiency of the school supervision system; and (iv) providing financial assistance to the Ministry of Education to purchase the paper necessary for printing the textbooks and teaching guides to be distributed to all project schools; - 10 - (d) to extend educational programs to the adult population by: (i) providing all new school facilities to be built under the project with multipurpose workshops and covered areas to be used for practical courses in fields of primary interest to the rural communities; (ii) building nine new rural adult schools, in selected zones of nine departments, to offer accelerated primary education courses to adults together with training in basic agricultural skills; and (iii) training about 100 instructors for adult practical activities and 50 directors and teachers of the rural adult schools. (e) to strengthen institution building of the Ministry of Education by providing: (i) 72 man/months of fellowships and study tours in the region for selected MED personnel in fields such as non-formal education, curriculum development, school administration and community development; and (ii) 18 man/months of consultancies in the above fields. Project Components A. Primary Education 3.02 Assistance would be provided for physical facilities, staff training, consultancy services, and fellowships. 3.03 Physical Facilities (Proposed Outlay: US$35.0 million equivalent). 1/ Construction, furnishing and equipping 2/ of central, subcentral and satellite schools, included in 35 school nuclei. 3.04 Organization of Physical Facilities. Three types of schools would be provided within each school nucleus: (i) One Central School accommodating about 240 students of grades 1-6, and located in the largest community in the nucleus. The average number of teachers would be 6. It would have an average of 6 class- rooms for 40 students each, a workshop for practical activities and a home economics workshops for 20 students each, an open multi- purpose area for about 40 participants in adult education/community activities, and an administration-library area; 1/ This and subsequent statements of proposed outlays exclude contingencies. 2/ Includes the purchase of paper for printing textbooks. - 11 - (ii) Sub-Central Schools, would accommodate about 160 students of grades 1-6. They would include an average of four classrooms with one teacher each, a workshop for practical activities and for home economics of a capacity of 40 adults, an open multipurpose area, administration, storage, and library areas. (iii) Satellite schools, located in communities of at least 800 inhabitants, accommodating about 80 students of grades 1-4; they would be provided with two classrooms for 40 students with two teachers. All schools are provided with the necessary sanitary facilities (usually of the latrine type). The distance between each type of school would be about 3 km, considered by educators as a reasonable walking distance for rural children at primary level. 3.05 The distribution of the new facilities to be pro> .ded under the project would be as follows: Table 3.1: Distribution of New Facilities Provided under the Project by Department No. of New No. of No. of Schools Student Education Sub- Places Department Nuclei Central Central Satellite Total Provided 1. Carazo 3 3 13 48 64 2,320 2. Esteli 4 4 16 90 110 2,640 3. Granada 1 1 - 6 7 250 4. Jinotega 8 8 16 97 121 9,360 5. Managua 3 3 10 61 74 2,040 6. Masaya 4 4 4 27 35 840 7. Matagalpa 10 10 44 219 273 15,440 8. Rio San Juan 2 2 11 39 52 3,880 TOTAL 35 35 114 587 736 36,720 Teachers' lodgings 90 up to 360 These Departments were selected so as to extend the nuclearization system to the regions of the country not covered by the Second Education Project. About 21% of the new classrooms are replacement of existing unusable premises. The number of new and replaced classrooms has been determined on the basis of a school mapping exercise (providing the basic information as indicated in para 2.07). School inputs would be distributed so as to equalize the repre- sentation indices as shown under para 2.03. Primary enrollments would be raised to about 70% of the school age population. - 1 2 - 3.06 The regions within the project departments where the school nuclei would be built were selected according to the following criteria: (i) high concentration of rural population; (ii) minimum of physical and human resources infrastructure allowing the establishment of a "nucleus"; and, (iii) minimum of 2,500 persons within the area of each "nucleus". The criteria for deter- mining the location of schools (Annex 3) were agreed upon with the Borrower during appraisal. Central and selected sub-central schools would operate on a two-shift basis; satellite schools would introduce two shifts when distances and population density (a minimum of about 1,700 people within an area of approximately 28 km ) are appropriate within the respective catchment area. Students would come from within the nucleus; nevertheless, the catchment area might extend beyond the limits of the nucleus, particularly for those schools where two full shifts would be introduced. The introduction of two shifts would also be determined by the availability of teachers to teach at all shifts. Generally, the same teacher is expected to teach two shifts and would receive two salaries. School facilities, particularly the workshops and multipurpose areas, would be utilized by adults and out-of-school youths during afternoon and evening courses (para 2.12). These courses would be theoretical (basic education) and practical (in fields such as carpentry, simple metal working, home economics, pottery, leather working, backyard gardening, small animals raising). It is estimated that a yearly average of about 8,000 adults would attend the above courses, using the facilities provided under the project. 3.07 The proposed project would assist the Government in financing the costs for constructing, furnishing and equipping the schools mentioned under para 3.04. During negotiations, the Government provided assurances that any changes in the agreed criteria for determining school locations would be subject to prior Bank approval. 3.08 Training (Proposed Outlay: US$0.95 million equivalent). The proposed project would assist the government in financing the following costs: (i) salaries and transportation for course instructors, subsistence allowances for course participants, and teaching and consumable materials required for the courses. In-service training and upgrading would be provided for rural teachers, circuit supervisors, nuclei directors and practical teachers. 3.09 At full project capacity, an estimated 1,300 rural teachers would teach in the 35 school nuclei to be established under the project. About 700 would be new teachers active in the additional classrooms provided under the project. Furthermore, 35 new school nuclei directors would have to be appointed, and 35 circuit supervisors would have to be selected to supervise the municipalities where the proposed nuclei would be introduced. An estimated 100 teachers for practical activities (para 3.06) would also have to be appointed. No shortage of teachers for the rural school nuclei is expected. Directors of school nuclei would be selected among existing teachers, graduated from a teacher training college and having at least three years of teaching experience, including two years in rural areas. Circuit supervisors would be selected from among existing supervisors having at least five years of teaching - 13 - experience, including three in rural areas. Teachers for practical activities would be existing teachers receiving an additional training on manual activ- ities. The selection process would stretch over a four-year period. No difficulties in recruiting personnel for the above functions are expected. 3.10 The above personnel would receive general in-service training to serve under the new nuclearized system. School nuclearization implies the multigrade use of the same classroom (para 2.08) for which all project teachers would be trained. Nuclei directors would be trained to coordinate the flow of students from satellite to sub-central schools and from these schools to the central school so as to allow all students to complete full primary education. They would also receive training in pedagogical super- vision of all rural primary teachers within the nucleus. The ratio directors of the central school to rural teachers would be 1:40 as an average, which is not high considering the short distance planned among the nuclei (para 3.04). Furthermore, directors of nuclei would receive training in how to plan and organize the use of school facilities for adult courses (para 3.06), together with the Municipal Adult Education Committee under establishment (para 2.12). Circuit supervisors within the new nuclearized system would provide constant pedagogical assistance to the nuclei directors (at a ratio of 1:1 or 1:2) and would collaborate with them in supervising the teachers of the nucleus. In supervising schools, circuit supervisors would partic- ularly focus on administrative tasks such as the control of enrollments, flow of students, and preparation of budgetary proposals to be submitted to the regional education offices. Teachers for practical courses would undergo special training in simple practical activities adapted to primary students; in addition they must be trained to collaborate with the personnel providing the practical courses to the adults utilizing the school facilities during afternoons and evenings (para 3.06). - 14 - 3.11 In summary, the following training and upgrading courses would be provided under the proposed project: Table 3.2: Participants, Main Course Content and Total Duration of the Training Courses for the Personnel of Primary Education Total Participants No. Main Course Content Duration (man/months) Rural teachers 1,300 - multigrade teaching 2 - subject content and pedagogical updating - use of textbooks in classroom instruction - introduction of the revised curriculum Nuclei directors and 1/ 40 - school nuclei administration 2 Circuit supervisors 40 - elements of facilities planning I - community development - pedagogical updating - elements of statistics Practical teachers 100 - elements of pedagogy for adult courses I - community development 1/ About 40 directors and 40 supervisors would be trained for the 35 proposed nuclei, to compensate for expected attrition during training and the initial period of service. The courses for teachers would combine self-instruction and direct training, to be held on week-ends and during vacation periods. All the courses would be organized by the Department of Human Resources of the Ministry of Education. The Ministry is recruiting a minimum of four specialized personnel to organize and partially conduct the courses. Experienced school supervisors and teachers, and subject specialists would also be called upon as instructors. Assistance would be provided by UNESCO specialists presently attached to the Ministry of Education. The criteria for selecting course participants have been agreed upon with the government at appraisal. During negotiations the government gave assurances that candidates successfully completing the training courses would be appointed for a minimum period of two years, in accordance with the training received. 3.12 Under the proposed project, about 90 lodgings, each of an average capacity of four persons, would be constructed and furnished. They would be attached to the central schools of the nuclei and to selected sub-central schools to be mainly used by teachers teaching at the satellite schools. These teachers would use the lodgings during the week and return home for week-ends (para 2.04). The fact that the use of the lodgings would be provided free of charge constitutes an incentive for rural teachers to enter and stay in the teacher service. Visiting circuit supervisors and staff involved in community education activities would also use the lodgings. - 15 - 3.13 Textbooks. Provision is made under the project (US$300,000) for the purchase of about 9,000 reams of paper and 1,000 reams of manila cardboard necessary for printing the textbooks and teachers' guides for the school years 1981/82 and 1982/83 (para 2.15). Circuit supervisors, together with nuclei directors, would assume responsibility for distributing the textbooks and teaching guides. The textbooks would be used by the students for three years, under a school library lending arrangement. The government is considering the establishment of a central printing office, with external financing; if not in place by 1982, the textbooks for project students would be printed by private firms. 3.14 Fellowships and consultancy Services (Proposed Outlay: US$0.16 million equivalent). About 51 man/months of fellowships and study tours in the region and 12 man/months of specialized consultancies. Although the Ministry of Education is receiving technical assistance from multi- and bilateral sources, the specialized training of some key staff of the Ministry in fields related to the proposed project has not been provided. Therefore, under the proposed project, provisions for the following fellowships and study tours in the region are made: Table 3.3: Fellowships and Study Tours for Primary Education Specialty/Field of Study No. of Persons Total Duration (man/months) (1) Curriculum Development 4 30 (2) Education Administration 1 12 (3) School Nuclearization 9 9 TOTAL 14 51 Consultancies for curriculum development, and education and work at basic level would assist the government in preparing and testing the revised primary curriculum (para 2.15). Criteria for selecting candidates have been agreed upon with the government at appraisal. In addition, the proposed project would finance about 12 man/months of specialized consultancies in the above or related fields to assist Ministry of Education's staff during the implementa- tion of the proposed project. The consultants would also provide follow-up to the fellows after their training abroad, and would extend the benefits of their assistance to staff not selected for the study tours abroad. During negotiations, the government provided assurances that, prior to any final arrangements with the consultants, the Ministry of Education would send proposals for selecting the consultancy services and for their final terms of reference to the Bank for approval. B. Adult Education 3.15 Assistance would be provided for physical facilities, staff training, consultancy services and fellowships. - 16 - 3.16 Physical Facilities (Proposed Outlay: US$4.0 million equivalent). The proposed project would provide financial assistance for constructing, furnishing and equipping nine rural adult schools. The Ministry of Education plans to build about 27 rural adult schools within the next four years (para. 2.16). Financing for 18 of them has been arranged by the government, with partial assistance from multilateral sources. The proposed project would assist the government in financing the establishment of the remaining nine, in nine different Departments (out of which five would also receive assistance under the project for primary education). Each rural adult school would include the following facilities: (a) two classrooms for 40 adults each; (b) a multipurpose workshop allowing the simultaneous instruction of two separate groups of 20 participants each; (c) an administration/library space; (d) storage for instructional materials; (e) dining and boarding facilities for 80 trainees; (f) sanitary facilities; (g) farm sheds for the raising of poultry, rabbits, swine and cattle; and (h) one staff house for the director of the school. The total capacity would be for 120 participants (excluding participants to short courses). Teaching groups would have a size of 40 for theoretical courses and 20 for practical activities. The land of each school (around 14 hectares) would be partitioned for building use, pasture and cropping. Site development would include fencing around the academic area, provision of water supply (wells and pumps) and internal access roads. 3.17 The schools would be located as follows: Table 3.4: Location of the Rural Adult Schools Locality Department Pantasma Jinotega Rio Blanco Matagalpa Susucayan Nva. Segovia S. Juan de Limay Esteli Omet. Altagracia Rivas El Recreo (El Rama) Zelaya La Borgona Masaya Nandayosi Managua Santo Tomas Chontales The location of the schools has been determined based on the following criteria: (a) density of rural population higher than the average of the department; (b) intensive agricultural activities with high productivity; and (c) highest percentage of adults having attended the literacy campaign. All the schools would be constructed near or within an area of high agricul- tural productivity, where the government is providing production inputs and incentives. This would facilitate the execution of the practical part of the curriculum and, in view of their immediate possibilities for employment, better attract young participants. 3.18 The practical courses would he offered to all interested partici- pants within the catchment area of each school, but preference in selecting participants would be given to out-of-school youths and adults aged 15 to 25. - 17 - Participants would be full- (about 80 per school) and half boarding 1/ (abouu 40); it is estimated that about 25% of participants would be women. It is expected that a total of about 1,000 young adults would attend the accelerated primary courses every year and an additional 10,000 adults the practical courses of short duration (para 2.17). 3.19 Training (Proposed Outlay: US$0.06 million equivalent). The proposed project would provide financial assistance for in-service training and up-grading the personnel required for the proposed nine schools. In particular, it would finance the costs for: (i) salaries and transportation for course instructors; (ii) subsistence allowances for courses. The staffing of each school would comprise one director and four teachers, out of which two would conduct the accelerated primary courses. The teaching personnel for the practical courses would be supervised and assisted by the staff of the Department of Secondary Education, Agricultural Education Unit, of the Ministry of Education (which would assume administrative responsibility of the rural adult schools). The Vice-Ministry of Adult Education would supervise the teachers of accelerated primary education. A total of about 10 directors and 40 teaching staff (considering initial wastage) would be required. They would undergo specific training as follows: Table 3.5: Participants, Main Course Content and Total Duration of the Training Courses for the Personnel of Adult Education Duration Participants No. Main Course Content (months) School directors 10 - School administration - Elements of agricultural economics and administration - Irrigation and drainage techniques - Pedagogy applied to adult education courses Teachers (i) accelerated primary 20 - Course content and curriculum 2 education development - Pedagogy applied to adult education courses - Community development (ii) practical courses 20 - Techniques for technology transfer 2 - Audiovisuals - Pedagogy applied to adult education courses - Updating of knowledges in agriculture 1/ They would receive only lunch. - 18 - Course instructors would be technicians of the Ministry of Education, and staff of the Agricultural Education Unit and Department of Human Resources Development of the Ministry of Education. Teachers for the accelerated primary courses would be selected from among experienced rural primary teachers; agricultural technicians would teach the practical courses. Criteria for selecting the staff of the proposed rural adult schools have been agreed upon with the Borrower at appraisal, and no shortage of candidates is expected. 3.20 Course content. The general objective of the courses to be conducted at the rural adult schools would be twofold: to allow participants to complete or to achieve full primary education, and to upgrade the skills of rural people in rural/agricultural activities. The course curriculum would consist of accelerated primary education (about 50% of the timetable) and practical train- ing. Prerequisite for admission would be the successful attendance of a literacy course. Participants would be grouped according to their post-literacy educational achievements; the course would be designed so as to allow those interested to bridge into the formal system. The timetable of the practical course would include training on basic elements in animal husbandry, horticul- ture and basic grains (about 15% of the practical timetable), and oni crops typical of the zone where the schools will be located. The detailed course content would be coordinated by the Ministry of Education together with the Ministry of Agriculture through the National Commission on Agricultural Education. Attendance at the basic practical course would be compulsory for all participants in the accelerated primary education course, the more specific practical training being optional and open to any other interested person. The duration of the practical courses (10 months) is determined by instructional "packages" as indicated under para. 2.17. The duration of the accelerated primary course would depend on the educational level of the participants. Basic textbooks for the accelerated primary courses are under preparation by the Ministry of Education (as an adaptation of formal school textbooks). Textbooks for agricultural basics, presently used in vocational agricultural schools, would be used for the practical courses and would be complemented by leaflets and notes prepared by the staff of the rural adult schools. Course participants would be expected to perform better in their occupations, would constitute a core of educated and better trained people who would be relied upon for promoting technology transfers to the communities, and would have easier access to leadership functions. 3.21 Fellowships and Consultancy Services (Proposed Outlay: US$0.07 million equivalent). The present staff of the Agricultural Education Unit of the Ministry of Education has experience in organizing and conducting agricul- tural courses for adults. Nevertheless, they need to upgrade their knowledge of: (a) adult basic education linked to training; and (b) of community organi- zation in view of the general training inputs to be provided to the community. Under the proposed project, the following provisions for fellowships and study tours in the region would be made: - 19 - Table 3.6: Fellowships and Study Tours for Adult Education Specialty/Field of Study No. of Persons Total Duration (man/months) Non-formal, adult education 1 12 Community development 9 9 TOTAL 10 21 In addition, about 8 man/months of specialized consultancies in the above or related fields are provided under the proposed project, to assist the Ministry of Education's staff in organizing the rural adult schools and in preparing the plans of study. During negotiations, criteria for selecti.rg candidates for the fellowships and study hours have been agreed upon with the government; further- more, the government gave assurances that, prior to any final arrangement with the consultants, the Ministry would send to the Bank for approval proposals for selecting the consultancy services and for their final terms of reference. - 20 - 4. PROJECT COST, FINANCING AND IMPLEMENTATION Cost of the Project 4.01 The total cost of the project is estimated at about US$53.9 million, or about US$50.8 million net of taxes. The breakdown of the costs by type of expenditures, shown in detail in Annex 2, is summarized below: Table 4.1: Total Cost of the Project by Type of Expenditures Local Foreign Total (US$ million) (a) Civil Works (i) Education Nuclei 24.94 5.35 30.29 (ii) Rural Adult Schools 2.63 0.57 3.20 Sub-total (construction and site works) 27.57 5.92 33.49 (b) Professional Services 1.36 0.15 1.51 (c) Furniture 1.76 O.30 2.06 (d) Equipment 0.21 1.83 2.04 (e) Training of Teachers, Supervisors and School Administrators 0.91 0.10 1.01 (f) Fellowships and Consultancy Services - 0.23 0.23 (g) Project Administration 1.14 0.13 1.27 Base Cost Estimates 32.95 8.66 41.61 Contingencies 9.76 2.55 12.31 Physical 1/ 3.27 0.87 4.14 Price 6.49 1.68 8.17 TOTAL PROJECT COST 42.71 11.21 53.92 Less Local Taxes 3.16 - 3.16 TOTAL NET PROJECT COST 39.55 11.21 50.76 1/ Excluding fellowships and consultancy services. - 21 - The proposed project is economical. Under the proposed nuclearization scheme a more rational utilization of existing and planned school infrastructure would allow for less intensive capital investments than under the present school distribution system applied by the government in the project areas. 4.02 Base Costs. Cost estimates have been calculated based on August 1980 prices, projected to March 1981. Construction costs for school facilities have been estimated on the basis of simplified designs of schools of the same type built under the Second Education Project (Loan 1244-NI). The use factor of the workshops for practical activities and house economics can be presently estimated at about 55%. This factor would increase with the introduction of the new curriculum emphasizing manual activities (para. 2.08). Furthermore, the use of these facilities by the community during evenings and week-ends would increase, once the various courses intended for the adults would be fully organized within each nucleus. Base costs for rural primary schools would range from US$170 to US$380 per square meter of gross construction area. The great variation in prices is due to the high cost adjustment factor applied to areas of difficult access (e.g. Department of Rio San Juan) where practically all materials and qualified manpower have to be brought in from the urban areas. For this reason, maximum community participation in school construction would be sought in the form of labor, provision of local materials or financial contribution to the costs of skilled labor (foremen and masons). This is common practice for school facilities presently built with community participation (para. 4.13). Construction costs would thereby be reduced substantially: they would range from a minimum of US$120 to a maximum of US$270 per square meter of gross construction area for all schools to be built under the project with community participation. The costs of professional services would range from 1.6% to 2.8% of construction costs and comprise site surveys and design services for electrical, water and drainage systems, and revisions of architectural designs (used in Loan 1244-NI). Furniture and equipment lists were reviewed and approved during appraisal and have been found reasonable in scope and costs. The costs for fellowships and consultancy services (mainly regional) are estimated at an average cost of about US$1,600 per man/month and US$4,000 per man/month respectively. No local consultancy services are expected. Training costs, based on a detailed analysis by type of course, have been estimated at an average rate of US$600 per participant (or US$1.50 per hour participant). 4.03 Contingency Allowances. Estimated project costs include the following contingency allowances: (a) physical contingencies (US$4.1 million), estimated at 10% of base cost for unforeseen factors; 1/ and 1/ This percentage is proposed taking into account the implementation of the Second Education Project and the fact that many sites for the schools to be built in isolated localities (identified already) have not been identified yet. - 22 - (b) price contingencies (US$8.2 million), calculated on the base cost plus physical contingencies. These assume that construction and procurement would start in 1981, and that local costs increments, expressed in US$, would follow the same tendency of foreign costs during the 1981-85 period. The annual increment of costs through 1985 would be as follows: 9.0% for 1981, 8.0% for 1982, and 7.0% for 1983-85. 4.04 Foreign Exchange Component. The foreign exchange component is estimated at about US$11.2 million or about 22.1% of the total project cost net of taxes. Foreign exchange costs were calculated on the basis of a break- down of cost components and analyzing local and foreign exchange content and proportion of each component. They are estimated at 17.7% for civil works, 10% for professional services and teacher training, 15% for furniture, 90% for equipment, and 100% for fellowships and consultancy services. 4.05 Duties and Taxes. Local custom duties and taxes on civil works and locally procured furnitures and equipment would amount to US$3.2 million or about 6.5% of the estimated cost of these items including contingencies. No custom duties are levied on directly imported educational equipment. 4.06 Financing Plan. The net project cost of US$50.8 million would be financed as follows: (a) the proposed Bank loan/credit of US$38.00 million (75% of total project cost) would meet 100% of foreign exchange costs and 67.7% of local costs; (b) the government would finance the remaining cost of US$12.8 million (25% of total project cost net of taxes). The schedule of estimated expenditures and disbursements is shown in the following Table. Table 4.2: Schedule of Estimated Expenditures and Disbursements (US$ million) Expenditures Disbursements % of % of CY/Sem FY/Sem Cumulative Total Cumulative Total 1981 1st 1981 2nd 0.3 0.5 - - 2nd 1982 1st 1.6 3.0 0.3 0.7 1982 1st 2nd 4.0 7.5 2.1 5.5 2nd 1983 1st 12.4 23.0 5.7 15.0 1983 1st 2nd 22.1 41.0 12.2 32.0 2nd 1984 1st 31.8 59.0 19.0 50.0 1984 1st 2nd 40.4 75.0 25.5 67.0 2nd 1985 1st 48.5 90.0 31.5 83.0 1985 1st 2nd 52.6 97.5 35.3 93.0 2nd 1986 1st 53.9 100.0 38.0 100.0 - 23 - 4.07 Recurrent Costs. The annual recurrent costs likely to be generated by the project at full implementation (1986) are estimated as follows (US$'000): Table 4.3: Estimated Annual Recurrent Costs for School Nuclei and Rural Adult Schools to be Generated by the Project Object School Nuclei Rural Adult Schools Total (1) Personnel: First shift 4,597.8 256.4 Second shift 1,345.0 Sub-Total 5,942.8 256.4 6,199.2 (2) Materials 614.1 45,2 659.3 Grand Total 6,556.9 301.6 6,858.5 The above estimates do not include maintenance and amortization of capital. Maintenance of rural primary schools is usually done with the help of the communities, which is regularly provided in cases where the communities have actively contributed to the construction of the school premises. The mainte- nance of the nine rural adult schools would represent a negligible burden for the Ministry of Education. 4.08 The following Table 4.4 shows the past and projected total and recurrent expenditures of the Ministry of Education, their relation to the national GDP and total budget, and the impact of the recurrent expenditures likely to be generated by the project on the corresponding sectoral recurrent expenditures of the Ministry of Education. - 24 - Table 4.4 GDP, Central Government, Ministry of Education and Project Recurrent Expenditures, 1975-1980-1986 (in million of Cordobas). 1975 1980 1986 (Current (Current (Cordobas Cordobas) Cordobas) of 1980) A. GDP 11,133 19,405 30,796 B. Total Central Government Expenditures 2,104 6,344 ------ C. Ministry of Education Expenditures: (i) Total 258.4 671.6 2/ 1,0662/ (ii) Current 206.3 655.0 1,04021/ D. Current Expenditures for Primary Education: (i) Total 113.4 292.5 465.0i/ (ii) Project School Nuclei - - 65.63/ E. Current Expenditures for Agricultural Education: (i) Total 3.7 13.3 21.1 (ii) Rural Adult Schools - - 3.0 3/ 4t Total Govt. Exp.: GDP 18.9 32.7 - Total MED Exp.: GDP 2.3 3.5 3.5 Total MED Exp.: Total Govt. Exp. 12.3 10.6 - Total current exp. primary ed.: exp. MED 55.0 44.7 44-7 Current exp. project school nuclei: - - total current exp. for primary ed. 14.1 Total current exp. agric. ed.: total current exp. MED 1.8 2.0 2.0 Current exp. rural adult schools - - total current exp. agr. education 14.2 1/ No projections are available beyond 1983. 2/ Without expenditures for universities (having an independent budget) and investment projects. 3/ 1 US$=10C$ 4! So far the Ministry of Education has budgeted recurrent expenditures related to the rural adult schools under the current budget for Agricultural Education. In the future, part of these expenditures might be shared with the Vice-Ministry for Adult Education. Source: Ministry of Education and mission estimates. - 25 - Current expenditures for primarv education are projected to increase by abou. 8% per annum, in accordance with a similar increase of the total recurrent budget of the Ministry of Education (the government projects an annual increase of MED's resources at about 12%). In 1986, recurrent expenditures for project school nuclei (assuming a twofold increase in unit recurrent costs as shown in the following paragraph) would amount to about C$ 65.6 million, or 14% of the projected current budget for primary education. The resources required in the same year to meet the increase in total primary enrollments (assuming a gross enrollment rate of 95% as indicated by the Ministry of Education), excluding project schools, are estimated at about C$ 400 million leaving C$65 million to meet the recurrent expenditures for project schools. Therefore, the Ministry * of Education would be able to meet the recurrent expenditures expected to be generated by the project schools. The proposed project is feasible also in financial terms, because it would not create an undue burden for the Government. 4.09 Unit recurrent costs in 1986 for school nuclei students are expected to double to about US$140 from the present estimated US$70; nevertheless the increase is justified by: (a) the fact that all teachers would be graduates from a teacher training college (from the present 55% in rural areas) and, therefore, would be entitled to a higher salary; (b) in about 160 central and sub-central schools there would be workshops for adult activities, which do not exist in present schools; and (c) the Ministry of Education is committed to a higher financial effort in providing teaching and learning materials to pupils (from the present USS6 per student to about US$15). Unit costs per trainee for the rural adult schools might be estimated at approximately US$27, including the estimated number of participants to the short courses as indi- cated in para. 3.18; unit costs for rural adult schools would be subject to noticeable variations depending on the total number of yearly participants to all the courses offered. Project Administration and Implementation: 4.10 Administration. Project administration (coordination, implementation supervision and monitoring) would be the responsibility of the existing Project Implementation Unit (PIU), within the existing Education Projects Implementation Division (DEPE) of the Ministry of Education. In carrying out its functions, the PIU would be assisted by the technical agencies and units of the Ministry. The Institute for Agrarian Reform (INRA) would provide the majority of the sites for school constructions. The transportation and distribution of building materials (acquired by the Ministry) to the sites where schools would be built with community participation would be provided by INRA and ENABAS (a transporta- tion institution depending on the Ministry for Interior Commerce). The Ministry of Public Works would supervise all tendered constructions and would directly build schools located in remote areas under force account. The Ministry of Education, through the PIU, would maintain close contacts with the Ministry of Planning so as to coordinate projects financed by other public sectors in the same areas covered by the project, and with the International Reconstruction Fund (FIR) so as to ensure availability of counterpart funds for the project. - 26 - 4.11 The project implementation unit of the second education project (Loan 1244-NI), upon project completion in June 1981, would form the core of the PIU of the proposed project as shown in Chart 3. The following seven additional core staff personnel are expected to be appointed by the Ministry of Education: (a) the project unit director for the proposed project (who would be assistant to the director of DEPE, presently in charge of the implementation of the second project); (b) one architect; (c) one field engineer; (d) two community promoters (in charge of organizing the communities in view of their participation in the construction of schools; (e) one build- ing materials procurement officer; and (f) one storekeeper for the materials to be distributed to the communities. The additional personnel required would be trained initially by the staff of the existing PIU. Criteria for selecting candidates for the above posts have been agreed upon with the Borrower during appraisal. The proposed project would provide financial assistance to the Ministry of Education for strengthening the existing PIU in charge of the execution of the second education project by financing: (a) some basic equipment for the PIU; and, (b) emoluments for short-term contracted personnel. 4.12 Readiness for Implementation. The project is at an advanced stage of readiness for implementation. The activities for the construction with community participation of the first 40 schools in the first phase of imple- mentation have been initiated. Construction of the remaining first phase schools would commence in September 1981. During negotiations, the master lists of equipment for the following documents were reviewed: (a) construction plans for all physical facilities to be built under the project; (b) master lists of furnitures for the same physical facilities; and (c) bidding documents for civil works, equipment and furniture. 4.13 Implementation. Project implementation is expected to be completed within five years. A detailed project implementation schedule is shown in Chart 4. Given the wide dispersal of the project elements, the limited number of registered/qualified civil works contractors and experienced project personnel, the project implementation has been planned so to avoid overloading the available manpower resources within MED/DEPE at any given phase of project execution. Of particular interest and importance in this project is the construction of the satellite schools engaging the assistance of local communities through their contribution mainly of labor. The Ministry of Education is experienced in this system for constructing rural schools. In 1980, about 200 classrooms in about 90 different localities were built with community participation; therefore, the procedures for promoting and organizing community participation have been sufficiently well defined and have proved positive. This system is especially feasible for the construction of small and isolated schools; therefore, between 30% and 50% of the total number of satellite schools to be built under the proposed project (para. 3.04) would use this procedure. The implementation procedure involving community participation described above would require the establishment of special sub-groups within the PIU, responsible for the execution of the physical infrastructure (for civil work projects awarded through tendering, school constructions by force account with community participation, building materials procurement and delivery, and furniture and equipment procurement). The establishment of the sub-units required for administration and accounting of the building procedure using community participation is essential to achieve efficiency and timely implementation. - 27 - 4.14 The Department of Human Resources (DRH) of the Ministry of Education would be in charge of the implementation of the training subcomponent of the project (para. 3.11). The selection of candidates for the basic teachers in-service training courses would be done by the local Circuit Directorates, with the approval of the Departmental Director. The selection of candidates for the other training courses would be made by the Ministry. An annual project implementation schedule would be prepared by the PIU. It would contain detailed information on the number and location of schools to be built, the number, kind and location of training courses to be organized, the expected number of participants, the expected instructors, the fellowships plan (specialty, duration and participants list) and the proposed consultancy services. 4.15 Procurement: Construction. The size and dispersed locations of the project items make it impractical to form large bid packages substantial enough to attract foreign civil works contractors. All Livil works contracts would therefore be awarded using LCB procedures acceptable to the Bank, and interested foreign contractors would be permitted to bid. Civil works contrac- tors would be pre-qualified. In the case of schools constructed with community participation (the total cost without contingencies is expected to range between US$2.5 M and US$4.0 M depending on the final number of schools built under this procedure, para. 4.13), construction materials would be procured in bulk by the PIU and delivered to the project sites by INRA and/or ENABAS (see para. 4.10). Construction materials would be procured as follows: (i) all materials such as rough and finished hardware, and electrical equipment (which are usually imported) through international competitive bidding; and (ii) all other construction materials through LCB procedures acceptable to the Bank. It is possible that bids may not be received even for larger schools (central and sub-central) located in isolated areas; in this case construction would be carried out on a force account contract, under super- vision of the Ministry of Public Works (for up to a total aggregated cost esti- mated at about US$4.0 million), and subject to Bank review on a case by case basis. Equipment. In general, equipment packages for a value of US$300,000 or more would be procured through ICB procedures. Total procurement of items that cannot be grouped in packages of more than US$300,000 would be procured through local competitive bidding. Miscellaneous items, not to exceed US$10,000 per contract or US$150,000 total cost, could also to be procured through local shopping. The paper for the textbooks and teachers' guides would be procured through ICB. In the event of a donation of paper to the government by a bilateral source, covering partially or totally the esti- mated needs, the Bank would reallocate the equivalent provision under the project to another category. Furniture. Most furniture is expected to be of local manufacture. Furniture will be procured using LCB procedures acceptable to the Bank, but interested foreign manufacturers/suppliers would be permitted to bid. 4.16 Disbursements. The proposed loan/credit, which would finance 75% of the total project costs, is expected to be disbursed over a period of about five years (Chart 5). To ensure that funds would be available in a timely manner for efficient implementation, a revolving fund with an initial amount of US$1.5 million would be established (with an expected contribution by the - 28 - Bank of US$1.125 million and government of US$0.375 million equivalent). This revolving fund is estimated to cover project expenditures over a 3-month period, and would be replenished periodically. The initial contribution to the revolving fund by the government would be considered a condition for loan/credit effectiveness. 4.17 Disbursements would be on the following categories of expenditures: (a) civil works, 65%; (b) building materials, 100% of foreign and 85% of local expenditures; (c) furniture, equipment, paper for textbooks and educational materials, 100% of foreign expenditures and of ex-factory cost of locally manufactured goods, and 85% of local expenditures; and (d) specialists' services, fellowships, training, professional fees, salaries of short-term consultants for project administration and pre-investment studies, 100%. Disbursements would be made against withdrawal applications prepared by the PIU and submitted to the Bank, with standard documentation covering procurement of major civil works, furniture and equipment. Withdrawal applica- tions for payments of items procured using LCB procedures in amounts less than US$300,000, works completed under force account contracts and expenditures for construction projects employing community assistance, would be supported only by statements of expenditures. Supporting documentation of such expenditures would not be sent to the Bank but would be made available to Bank staff for review during supervision missions. 4.18 General auditing of the PIU's accounts would be made by the General Controller's Office of the Republic (CGR); the internal controller's office of the Ministry of Education would audit all expenditures to be made. During negotiations, assurances would be sought from the government that the yearly audit reports prepared by the CGR would be sent to the Bank for information. Retroactive financing not exceeding US$0.5 million (1.3% of the proposed loan/credit) is recommended for expenditures from October 1, 1980 for the following activities: (a) preparation of master plans and specifications for the primary schools and rural adult schools; (b) preparation of bidding documents and draft contracts; (c) topographical surveys and soil analysis of the sites for the first phase of constructions; and (d) construction of about 40 schools with community participation. Construction of the 40 schools would start in January and end in May 1981, thus taking advantage of the dry season. Monitoring and Evaluation 4.19 Monitoring. Efficient monitoring and accurate supervision are essential for proper project implementation, particularly for the execution of the components of the project involving community participation. The PIU would prepare adequate forms for use by: (a) the field personnel involved in community preparation/motivation and supervision of works; and (b) by central staff in charge of the acquisition and distribution of materials to the communities. These forms would provide information on the time required for completing each step of the process and on the costs involved. Similar forms will also be prepared for the other sub-components of the project. Progress reports, to be prepared by the PIU, would be based on summarized versions of the above forms, therefore allowing the Bank to monitor better the execution of the overall project. - 29 - 4.20 Evaluation. Education evaluation is still at a very initial stage in the country. The Ministry of Education, with external assistance, is preparing a plan for creating an appropriate and permanent school evaluation mechanism at central level. The Ministry of Education has agreed to seek membership of the International Association for the Evaluation of Educational Achievement (IEA), and would carry out a national study of academic achieve- ments. In addition, the Ministry would carry out the following activities: (a) the evaluation of the educational aspects of the proposed project; (b) the evaluation of the impact on the education system of school nuclear- ization in the various areas where the school nuclei would be introduced; and (c) the effectiveness of the rural adult schools by monitoring achieve- ments of successful participants through a tracer system. The evaluation of the efficiency of the system within each nucleus would be made through monitoring forms. These forms would be designed so as to introduce both a formative (allowing re-adjustements during project implementation) and a summative evaluation at the time of project completion. During negotiations, the government gave assurances that by June 30, 1982, the Ministry of Education would submit to the Bank for comments the terms of reference and the plan for the execution of the evaluation study. - 30 - 5. BENEFITS AND RISKS Benefits 5.01 The project would lead to a substantial improvement in primary education in terms of participation, efficiency and quality. In the project areas access to primary education would be extended to about 9,000 students, who would not have entered grade one without the project. Furthermore, about 70% of the relevant age group would be enrolled compared to the present 44%. About 5,000 rural school children, boys and girls (7-12 years) would be expected to complete the full six-year primary cycle every year, at full project implementation. In short, the number of student places to be offered under the project is large enough to have a significant impact in the project departments. The proposed project would focus on hardware components, where financial assistance is particularly needed by the Ministry of Education to implement the strategy required for attaining its education objectives (paras 2.14 to 2.17). The more limited investments required in software aspects would nevertheless result in substantial qualitative improvements at basic level. They are intended to optimize an existing infrastructure of human resources (rural teachers, supervisors and school administrators) through appropriate training and specialized assistance. The learning achievements of the students in the three basic skills would be improved because: (i) they would be exposed to the full six-year primary cycle without recurrent dropping out; (ii) they would receive appropriate textbooks on a regular basis; and (iii) primary teachers would be adequately trained. 5.02 The proposed project would also assist the expansion of educational programs for adults, as a logical follow-through on the Government large- scale literacy campaign. A total of about 19,000 adults (7,000 women) are expected to benefit directly from the proposed proje, as follows: (i) they would have easier access to off-farm or non-farm act ities, mainly in the services sector (such as cooperatives, marketing, co.i.lercialization of produc- tion inputs, credit, social services); (ii) they would improve their produc- tivity, because of the increased knowledge of simple but efficient techniques and their receptivity to the technology transfers provided by specialized agencies; and (iii) they would break the existing cultural/educational barrier with the urban people. The facilities for the proposed primary schools would be used by an expected 8,000 adults (about 50% women) every year. About 11,000 young adults (about 3,000 women) would also attend the courses offered at the rural adult schools, where they would complete their primary education, improve their skills in various sub-sectors of the agricultural economy and update their knowledge on multiple aspects of tnie rural life. The benefits of these rural adult schools would not be limited to the education field only but would encompass the economy of the rural areas covered by the project. Recent studies in developing countries show that the expansion of basic educa- tion has important positive socio-economic effects on the population (partic- ularly the rural); it increases agricultural productivity, contributes to the reduction of fertility through the behavioral change in people and allows improvements in nutrition and health. - 31 - 5.03 Risks. No major implementation risks are expected. The volume of investments is moderate so as to avoid risks of oversupplying school facilities (primary education component) or of excessive efforts in an untested educational approach (rural adult schools). Moreover, the borrower has considerable expe- rience in executing a project of this type (Ln. 1244-NI), and gives overriding priority to financing the basic education included in the project. Still, four risks can be identified. The first involves the possibility that the revised primary curriculum, not yet completed (para. 2.08), might give undue emphasis to non-educational objectives. Such a development is not likely. It would be contrary to the stated intentions of the Ministry of Education and would differ markedly from the interim curriculum of the new government. Moreover, the Bank would play an indirect role through its approval of consultancy services and terms of reference for the curricula revision. The second risk relates to the distribution of school facilities for the nuclei to be estab- lished in the frontier Department of Jinotega and in the Atlantic Department of Rio San Juan. There is a risk that some facilities these areas might be underutilized because of outwards migration although the past experience in Nicaragua has shown that, generally, physical facilities are a low risk sub-component. The risks of oversupplying school facilities would be minimized by the evaluation/monitoring mechanisms which would be instituted in the project (para. 4.20). The third risk relates to the rural adult schools: whether the new program would be effective and demanded by the rural people. Investments for these schools are limited and are designed in such a way as to allow the utilization of the schools for any kind of basic, general education program or for pure farmers training courses. A fourth risk is inherent in the process for building school facilities with community participation as expanded under the proposed project. The process is compli- cated and involves various steps (para. 4.10). A delay in any given step might result in delays in construction and cost overruns. Nevertheless, the experience accumulated by the Ministry of Education in community participation is positive and helps to minimize this risk. Furthermore, savings in unit costs are substantial (about 30%); even in the event of such a delay and cost overruns as to absorb the expected savings, the process represents a valuable educational experience for the communities worth being encouraged and sustained. In short, project design has adequately taken these risks into account. - 32 - 6. AGREEMENTS REACHED 6.01 During negotiations, the government gave assurances on the following matters: (a) criteria for determining the location of schools (para. 3.07); (b) appointment of candidates successfully completing the training courses (para. 3.11); (c) selection of consultancy services and their final terms of reference (paras. 3.14 and 3.22); (d) yearly audit reports prepared by the CGR (para. 4.18); and (e) terms of reference and the plan for the execution of the evaluation study (para. 4.20). 6.02 Condition of effectiveness would be the initial contribution to the revolving fund by the government (para. 4.16). 6.03 Subject to the above conditions the proposed project would constitute a suitable basis for a loan of US$38.0 million equivalent to the Government of Nicaragua, with a repayment period of 20 years including 5-year grace. 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Группа Всемирного банка · Staff Appraisal Report
Nicaragua - Basic Education (Third Education) Project
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