Colombia - Subsector Project For Rural Basic Education

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-3364-CO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT OF US$15.0 MILLION TO THE FONDO DEL MINISTERIO DE EDUCACION WITH THE GUARANTEE OF THE REPUBLIC OF COLOMBIA FOR A SUBSECTOR PROJECT FOR RURAL BASIC EDUCATION July 8, 1982 This document has a restricted distribution and may be used by recipients only in the performance of their offlcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Peso - Col$ Average Calendar 1980 Average Calendar 1981 US$1 = Col$47.280 US$1 = Col$54.491 Col$1 = US$0.02115 Col$1 = US$0.01836 Exchange Rate Effective May 4, 1982 US$1 = Col$62.21 Col$1 = US$0.01607 WEIGHTS AND MEASURES Metric System FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY COLOMBIA SUBSECTOR PROJECT FOR RURAL BASIC EDUCATION LOAN AND PROJECT SUMMARY Borrower: Fondo del Ministerio de Educacion Guarantor: Republic of Colombia Amount: US$15.0 million equivalent, including capitalized front end fee. Terms: Repayment in 17 years, including four years of grace at 11.6% interest per annum. Project Description: The project aims at supporting the first phase (1982-84) of the Government's 10-year Subsector Program for Rural Basic Education, thereby helping the introduction of policy changes as follows: (a) concentration of integrated packages of edu- cational inputs in carefully selected areas; (b) decentraliza- tion of educational administration; (c) incentives for reten- tion of teachers for rural service; (d) establishment of an academic (pedagogical) supervisory service; and (e) expansion of new but tested educational programs adapted to the rural setting. To this end, the project involves the carrying out of (a) about 30 local subprojects (1,600 schools, 6,100 tea- chers and 112,000 students in total) and (b) six national sub- projects. Each local subproject is an investment plan aimed at the educational needs of some 20-70 rural primary schools and 1,800-7,200 pupils. It includes training of teachers, supply of educational materials and furniture, supervision, equipment, and civil works for repair and upgrading of existing buildings. The national subprojects are for (a) production of the needed textbooks and other educational materials, (b) production of furniture and equipment, (c) training of administrators and planners, (d) development of a computerized management information system, (e) expansion of applied research on education, and (f) impact evaluation of 4 the Subsector Program. Project Benefits and Risks: This project will increase coverage, quality and efficiency of primary education, and brIng about institutional improve- ments. As a result of improvements in efficiency, the project is expected to decrease the real recurrent cost per primary graduate from US$1,700 to about US$700 in 1980 prices. At the same time, the enrollment rate in participating areas would increase from about 78% to over 90% and quality Improvements in curriculum, teaching methods, and materials would lead to higher student achievement. The risks of this project are mainly associated with the innovative and complex character This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents mnay not otherwise be disclosed without World Bank authorization.  of the Government's Subsector Program for Rural Basic Education. In its first phase the project involves a management risk as new systems of administration are established, and, should the program be continued over the 10-year period, it will face uncertainty with regard to the priority it will be given over time. These risks are reasonable given the consensus within the country about the need for improved rural basic education, the benefits to be derived fran this project/program and the coordinating mechanisms that have been established. Estimated Cost: 1/ Local ja4in Total --(US$ million equivalent)-- Teaching Materials 0.5 0.5 1.0 Training of Teachers and Administration 4.8 0.2 5.0 Furniture 4.1 0.5 4.>6 Transport Facilities - 0.2 0.2 Civil Works (new and repairs) 10.3 1.8 12.1 Equipment - 0.5 0.5 Technical Assistance 4.4 0.3 4.7 Incremental Recurrent Expenditures 4.9 - 4.9 Total Base Cost Estimate 29.0 4.0 33.0 Physical Contingencies 1.8 0.2 2.0 Price Contingencies 7.3 0.8 8.1 Total ProJect Cost (1982-84) 38.1 5.0 43.1 Front End Fee on Bank Loan - 0.2 0.2 Total 38.1 5.2 43.3 Financing Plan: Government 28.3 - 28.3 i IBRD 9.8 5.2 15.0 Total 38.1 5.2 43.3 1/ Total project costs are 18% for national and 82% for local subprojects.  - iii - Estimated Disbursements: FY83 FY84 FY85 FY86