Guatemala - Second Basic Education Project

Document of The World Bank FOR OFFICIAL USE ONLY 1,A 3o C)C 3 - Gr0 Reprt No. 7004-GU STAFF APPRAISAL REPORT GUATEKALA SECOND BASIC EDUCATION PROJECT November 4, 1988 Country Department II and Technical Department Latin America and Caribbean Regional Office This document bas a resicted distribution ad may be used by ecipients only ih the perfonnace of their oficil duties. its cotnts may not otherwise be disosed witot Wodd B21k authoriaIon.  CUMCY IQUIVALZNTS Currency Unit - Quetzal Q) US$1.0 - Q2.50 Q 1.0 - US$0.20 HEASUZS 1 Square meter HM2) - 10.78 sq. ft. 1 kilometer (km) - 0.62 miles GLOSSARY OF ABBREVIATIONS CENALTEX National Center of Textbooks DGE Directorate General of Education DOP Department of Projects ICB International Competitive Bidding IDB Inter-Amer!can Development Bank LCB Local Competitive Bidding MCPW Ministry of Communications, Transport and Public Works MIS Management Information System MOE Ministry of Education PEAC National Program for Adult Education by Correspondence PICU Project Implementation Coordination Unit PRONEBI National Program for Bilingual Education UCEE School Construction Unit of MCPW USAID United States Agency for International Development USIPE Sectoral Unit for Educational Planning MOE VFP World Food Program FISCAL YEAR January 1 to December 31 ACADEMIC YEAR February 1 to October 31  FOR OFICIAL USE ONLY GUATD4ALA SECOND BASIC EDUCATION PROJECT STAFF APPRAISAL REPORT Table of Contents Pate No. I. LOAN AND PROJECT SUMARY ................................ i II, THE SECTOR ........... 1 A. Background. 1 B. Overviev of the Education System. 1 C. Performance, Issues and Constraints in Primary Education ................. ......... 3 D. Sector Objectives and Strategies. 9 E. Rationale for Bank Involvement.. 12 III. THE PROJECT A. Background........ ....... 13 B. Project Objectives ............... 13 C. Project Description ............... 13 D. Implementation Arrangements ............... 19 E. Project Costs and Financing .. ............. 21 F. Procurement ............... 22 G. Disbursements ............... 23 H. Accounting and Auditing .... ........... 23 I. Project Benefits ............... 23 J. Risks and Safeguards ............... 24 IV. AGREEMENTS REACHED AND RECOMMENDATIONS .25 TABLES 2.1 Summary Data on the Education System in 1985 ....... 2 2.2 Primary Education in Guatemala in 1985 ............. 3 ANNEXES I. Enrollment Projections .27 II. Summary Description of the Project .30 III. Teacher Training Program .32 IV. Textbook Production Schedule .36 V. Technical Assistance Program .37 VI. Studies .39 VII. Support to Nutrition Program of Rural Children 41 VIII. Distance Education .42 IX. MOE Building - Cost/benefit Analysis .44 This report is based on the findings of the Appraisal Mission which visited Guatemala from August 19 to September 9, 1987. The mission consisted of Messrs. Jacques Hallak (Senior Economist, Mission Leader); John St. Germain (Architect); Robert Ruiz-Esparza (Educator, Consultant); Alfonso de Guzman (Textbook Specialist, Consultant). This document has a restricted distribution and may be used by recipients only in the performance of their of ficial duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (Cont'd) Page No. X. Project Cost Sumary (including Procurem_nt and Disbursements) ....... 0. .. ... . ...... ..... 46 XI. Preliminary List of 200 Schools to be Ixpanded During the First Year of the Project . .53 XII. Implementation Schedul .. .54 XIII. Kew Perforace Targets ..55 XIV. List of Documents on File .............. . 57 CHARTS I. Organization Chart of the Ministry of Education 58 II. Implementation Organigra .61 MAP IBRD No. 20316  SECOND BASIC EDUCATION PROJECT I. LOUN AND PROJECT SUMMARY Borrowers Republic of Guatemala Executing Agency: Ministry of Education (MOE) Amount: US$30.0 million equivalent Termst 20 years, including 5 years of grace, at the Bank's standard variable interest rate. Proiect Obiectives: The proposed project would assist the Government in achieving its goal of providing a minimum of four years education to at least 80 percent of all six to nine year olds by 1991. Specifically, the objectives of the proposed project would be to: (a) increase net enrollment; (b) improve the quality and efficiency of lower primary education; and (c) improve educational management. Emphasis would be on the lower level of primary education in rural areas. Proiect Description: The proposed project would support the above objectives by: (a) expanding the existing school capacity at the lower primary level and extending an existing distance education program to the upper primary level and increasing the demand for education through programs such as public campaigns and support for school nutrition programs: (b) providing learning materials including textbooks, teacher training programs (especially in multi-grade teaching, bilingual education and teaching for a new preparatory first grade), and a program of studies to identify and define areas for further quality and efficiency improvements; and (c) strenthening management of the MOE at the central level (including construction of central offices) and decentralizing to and strengthening of administration at the regional and school level.  - ii - Proiect Benefits$ The main benefits of the proposed project would be: (a) reduced illiteracy rates by Jr.reasing toth the participation in lower primary e:ducation from about 60 percent at present to about 80 percent in 1993 and the number of children successfully completing grade III from about 126,000 at present to about 163,000 in 1993; (b) increased efficiency of lower primary education (upon completion of the project about 27 percent of students would have completed grade III without having repeated against a figure of about 17 percent at present); (c) increased equity of educational opportunities for the rural poor, including indigenous families; and (d) improved management and operation of the education system. The project would produce important benefits for the long-term developrant and integration of rural Guatemala. Resourrz savings resulting from efficiency irnprovements together with stronger managerial and operational capacity of the MOE would contribute to further system expansion and improvemerts. Proiect Risks: Two principal implementation risks would be associated with the proposed project. The first is the possible shor' fall of counterpart funds which would be reduced by the Bank's close mionitoring of annual budgetary allocations through review of annual work plans. The second risk concerns the overall implementation capacity of the MOE. This risk has been considerably reduced by the experience acluired under the First Basic Education Project, by the establishment of the PICU which would act as an expeditor/facilitator with strong administrative authority and through technical assistance. Intensified monitoring both by the DOP and the Bank through annual work plans would be important for the early detection and resolution of implementation problems. In addition, there is a risk that the project may not have the desired impact on improving efficiency because of resistance to change on the part of administ-ators, teachers, and parents. The project has been specifically designed to address this risk through efforts to mobilize support for project objectives, such as training programs and public information campaigns which are expected to significantly mitigate this risk.  - iii - Estimated Cost a/ Project Component Cost (USS million) L2ca] Foreian Total A. INCREASING NET ENROLLMENT 33.76 5.93 39.69 Expansion of School Capacity 33.54 5.56 39.10 Distance Education 0.02 0.10 0.12 Public Campaigns 0.20 0.27 0.47 B. IMPROVING QUALITY AND EFFICIENCY 5.21 4.63 9.84 Training materials 3.78 4.06 7.854 Teacher Training 1.41 0.48 1.89 Studies 0.02 0.09 0.11 C. IMPROVING MANAGEMENT 3.67 2.19 5.8b Central Level 3.18 2.04 5.22 Local Levet 0.08 0.05 0.13 Project Aaministration 0.41 0.10 0.51 E'roject Base Cost 42.64 12.75 55.39 Physical Contingencies 1.71 0.91 2.62 Price Contingencies 2.30 0.46 2.76 TOTAL PROJECT COST 46.65 14.12 60.77 Interest during construction 5.80 1.70 7.50 TOTAL FINANCING REQUIREI) 52.45 :5.82 68.27 Financing Plan: Government 38.27 - 38.27 IBRD 14.18 15.82 30.00 TOTAL 52.45 15.82 68.27 Z of Total 77Z 23Z 1007 Estimate' Disbursements: Fiscal Year 89 90 91 92 93 94 95 ----------------US$ million------------- Annual 0.6 2.4 7.2 7.6 6.8 4.2 1.20 Cumulative 0.6 3.0 10.2 17.8 24.6 28.8 30.00 Rate of Return: not applicable Map: IBRD No. 20316 a/ Net of taxes and duties equivalent to approximately US$1.5 million.  II. TU SECTOK A. lackaround 2.1 Guatemala ts the most culturally and socially diverse country in Central America. About half of its eight million people are deceendants of the Maya-Quiche civiliaationu, with liaited assisllatit;n into the socio- economic mainstream. Only one-fifth of the Indian population are able to use Spanish, the rest speak 23 different Indian languages. Economic and social integration has also been made more difficult by the country's rugged topography--about one-balf of the territory is mountainous--as well at by tLe scattered settlement of the Indian population in the Western Highlands. Given these conditions, a*s well as the traditionally slow pace of Government investment in basih social infrastructure, a large segment of the population does not have access to adequate schoo'l, with literacy rates in rural areas not exceeding 40 percent. 2.2 In an effort to reverse long years of neglect and address more edequately the basic needs of Guatemala's uriderprivileged majority, Guatemala's current Government has embarked upon a bold program of national reorganization. This program, which was announced in July 1987, is designed to strengthen Guatemala's fledgling democrscy, mainly through increased community participation and an accelerated effort to meet basic social and economic needs. The program established special task forces to coordinate the execution of priority projects in key sectors, including education, while also calling for a major reorganization and decentralization of the public administration to improve efficiency and responsiveness. In education, the program aims at increasing the number of classrooms and availability of materials, decentralizing services and administration, and developing a more balanced and adequate curriculum taking into account the existing cultural context. The proposed project would directly support the Goverrm ant's national reorganization objectives in the field of education. B. Overview of the Education System 2.3 Table 2.1 presents an overview of the education system in Guatemala. In 1985, the system comprised about 1.5 million students of which 81 percent were enrolled in pre-primary and primary schools, 14 percent in secondary schools and 5 percent in higher education institutions. The structure of the system consists of: two years cf pre- primary (ages 5 and 6), six years of primary (ages 7-12), six years of secondary (three years basic and three years diversified), six years of higher and three years of post-graduate studies. According to the Constitution, education is compulsory for the age group 5 to 15 years old, however, actual attendance is much less and the Government is currently unable to provide the coverage mandated. Overall, the Government finances about 80 percent of education in Guatemala, the remainder being provided by the private sector.  - 2 - Table 2.1 Suvmarv Data on the Education System in 1985 Duration Enrollment Teachers Schools Lenel (aze in years) Total I Urban Pro-primary 2 ( 5-6) 134,271 111-95Za/ 4,381 2,781 Primary 6 ( 7-12) 1,020,000 442 28,467 8,121 Secondary: -Basic 3 (13-15) 135,613 932 9,184 861 -Divers. 3 (16-18) 68,436 982 5,445 449 Higher 3-9 (19-25+) 67,428 992 bI bl a/ 112 for the program of Castellanizacion;* 952 for the rthers. b/ Not available. 2.4 Sector Oraaniwtion. With the exception of school construction, and furniture and equipment procurement which is the responsibility of a School Construction Unit (UCEE) in the Miristry of Communications, Public Works and Transport (MCPW), all matters pertaining to the organization, staffing and administration of the education system are entrusted to the Ministry of Education (MOE). The organizational structure of the MOE is presented in Chart I. Two Vice-Ministers (Technical and Administrative), as well as aix specialized departmental units, including a Sectoral Unit of Educational Planning (USIPE), report directly to the Minister of Education. USIPE is responsible for general sectoral planning, coordination and evaluation, and for providiri technical assistance to all MOE programs when necessary. The National Board of Out of School Education and the Directorate General of Education (DGE) (comprising seven directorates, each responsible for a different type and level of education, and a General Inspectorate) report to the Technical Vice-Hinister. Responsibility for primary education is shared by the Directorate of Preprimary and Urban Primary and the Directorate of Education in Rural Areas. The Directorate of Literacy and Adult Education is responsible for the National Program of Distance Education for Adults (PEAC) (Annex VITI). Seventeen offices and/or administrative units responsible for the operation and management of schools (personnel, textbooks, supplies, technology, transport, maintenance, etc.) report to the Administrative Vice-Minister, Including the National Center of Books and Textbooks (CENALTEX) which is in charge of the procurement and/or production and distribution of textbooks and did&ctic materials. A newly established Directorate of Nutrition, also reporting to the AdministLitive Vice-Minister, is entrusted with the planning, coordination, implementation and evaluation of all school nutrition programs. 2.5 The education system has grown rapidly over the last 20 years, with public primary enrollment nearly txebling and public secondary enrollment more than quadrupling from 1965 to 1985. Howiver, Guatemala still has a long way to go in order to meet the educational, social and economic needs of its people. The overall literacy rate is only about 53 percent, the lowest in Latin America except for Haiti (50 percent). The economically active population still has predominantly low levels of education: about 88 percent has either no formal education or only a few years of primary education, about 9 percent has some secondary education and only about 3 percent of the population has some higher education. As a  -3- result, the occupational distribution of the workforce is skewed towards jobs requiring limited skills (well below those in the other countries of the region), thereby adversely affecting the level of production and productivity in agriculture and industry. The relatively low level of education in the labor force is reflected in the high rate of return for families and individuals investing in education, particularly at the primary level. This rate is estimated to be above 30 percent for those who complete primary school, about 22 percent for basic education and about 19 percent for higher education. These figures suggest that returns to investment in education are as high ni 3r higher than returns for other potential investments. They also strongly suggest that there is clearly underinvestment in education in Gaatemala at all levels. C. Performance, Issues and Constraints in Primary Education 2.6 Although primary education has expanded significantly in recent years, with enrollment growing, on average, five percent per annum from 1973 through 1985 (Table 2.2), primary education still faces aerious problems: (a) Guatemala has the second lowest primary school enrollment rate in Latin America (only 63 percent of the school-age children attend school, an estimated half million are not enrolled and rural children and females are overrepresented in the excluded group); (b) the flow of students through the system is inefficient (it requires, theoretically, 18 years of education--instead of six--to produce a graduate); and (c) financial constraints and deficiencies in management hamper the effective operation and development of the system. These issues are described in more detail below. Table 2.2 Primary Education in Guatemala in 1985 Total Urban Rural ENROLLMENT DATA School age population(7-12 years in 000) 1,330 520 810 Estimated enrollment (000) 1,020 450 570 Gross enrollment rate (Z) 77 87 70 Estimated Z of students not in age group (7-12) 18 12 24 Net enrollment rate (Z) 63 76 53 Estimated population not enrolled (000) 500 120 380 SCHOOL DATA Number of schools 7,975 1,455 6,520 -of which incomplete (with less than 6 grades) 3,265 173 3,092 -of which public 6,633 860 5,773 -Z in good condition 60 Classrooms (1983) 17,579 5,838 11,741 Students/classrooms (1983) 49 63 42 Teachers 27,854 13,768 14,086 Students/teachers 37 33 40 AVERAGE ANNUAL GROWTH RATE(1973-85) School age population(Z) 2.7 2.9 2.7 School enrollment(Z) 5.0 3.6 7.8 ---------------------------------------------------------------------__-  4- Low Enrollment 2.7 The net enrollrent rate in primary education in Guatemala (63 percent) continues to be the second lowest in Latin America. Despite a concerted effort to increase enrollment in rural areas with enrollment in rural areas growing, on average, 7.6 percent per annum from 1973 through 1985 compared to five percent per annum overall, educational opportunities in rural areas lag far behind those in urban areas, both in terms of access and in terms of quality of education. As a consequence, while approximately 76 percent of primary school age children were enrolled in urban areas in 1985, only 53 percent were enrolled in rural areas. 2.8 From 1973 through 1985 the growth rate of primary school enrollment (5 percent per annum) was almost double that of the school age population (2.7 percent per annum). This would imply, pro"-ided past growth rates remain relatively constant, that the entire school age population would be enrolled in the very near future. In fact, however, actual increases in new enrollment are much smaller given a larger proportion of students repeating grades because of late access and lack of continuitv in attendance, especially in rural areas. 2.9 Low primary school enrollment is also affected by: (a) lack and mlsallocation of school space; 'b) lack and misallocation of personnel; (c) poor economic conditions of families; and (d) poor parental attitudes towards schooling. 2.10 Lack and Misallocation of School Space. A recent study by the MOE estimates a deficit of about 4,300 primary school classrooms. An additional 7,300 existing classrooms need repair or reconstruction. Almost half of the existing 6,520 primary schools in rural areas are incomplete, often providing less than six grades of primary. In urban areas, the Governmcnt is presently renting 67 buildings to serve as primary schools (of which 60 are in Guatemala City). The study reveals that in both urban and rural areas some classrooms are under-occupied. There is, therefore, a need to improve the planning of school and classroom location so as to better utilize existing space and to expand the number of classrooms and repair schools where necessary. 2.11 Lack and Misallocation of Personnel. Although there is a large oversupply of primary school teachers from teacher training schools--an estimated 15,000 graduate teachers are unemployed or underemployed--the Government has not been able to recruit an adequate number of teachers due to budgetary constraints. In addition, teachers resist assignments in remote schools in spite of incentives provided in the form of points for faster promotion and the cost of living differential between urban and rural areas (teachers' salaries are uniform throughout the country).  2.12 Poor Economic Conditions of Families. The poor economic condition of the families with school age children causes not only low enrollment but aAso late entrance into the system, increased absenteeism and high drop-out rates. In 1980/81, it is estimated that about 32 percent of families (or 39 percent of the population since extremely poor families have, on average, four children as opposed to non-poor families which have, on average, two children) lived in extrme poverty.1 As a result, most families are unable to finance the direct and indirect costs of schooling. Direct costs which include clothing, transportation, and learning materials and supplies can total up to US$59 per student per year in Guatema2a City, approximately US$14 in other urban areas and approximately US$3.20 in rural areas. Indirect costs include the opportunity costs of child labor. Children often assist parents in farm labor and in household chores, instead of attending school. When poor children do attend, they are generally undernourished--a 1986 school census revealed that about 35 percent of grade I students suffered from malnutrition. 2.13 Parental Attitudes Towards Schoolin. Parental attitudes towards schooling, especially in rural areas, lead to a low initial enrollment of primary school aged children. In addition to the economic factors described in para 2.12, parents, most of whom lack education themselves, are generally unaware of the benefits of primary education, and especially of the importance of early enrollment, towards the future achievement of their children. In addition, parents in rural areas do not always see the relevance of the primary school curriculum to their expectations of their childrens' future activities. Once children are enrolled, a number of socio-cultural factors, in addition to economic reasons, lead to low learning and achievement levels. These factors, which also affect decisions to enroll children in school, are described in detail in para. 2.18. Inefficient Flow of Students and Poor Studen' Achievement 2.14 Because of high repetition rates, the flow of students through the primary school cycle is slow, resulting in a waste of scarce resources available for primary education. Almost 50 percent of children repeat the first grade and about 30 percent repeat subsequent primary grades. The first grade repetition rate in rural areas (about 60 percent) is significantly higher than in urban areas (about 39 percent). As a result, there is a great concentration of students in the first two grades (about 52 percent) while few children attend the fifth and sixth grades (about 18 percent on average, less than 13 percent in rural areas). High repetition rates contribute to the poor utilization of classrooms and teachers, resulting in excessive concentration and lack of space in the lower grades, and underutilization of capacity (evidenced by low student to class and teacher ratios) in the upper grades. They also result in heterogeneous age groups in the same classrooms, making the teaching process less efficient. I/ r filn i1 nn th lh ,24 nf -ffnr- hi4l4iv tn ir-irrh ini I fr-4 h- l F  - 6 - 2.15 Ir. general, student achievement levels are low. Although there are no nationwide tests to substantiate learning problems, high repetition rates imply that, in many cases, students are not learning the basics of reading, writing or arithmetic in the primary grades. 2.16 As many students spend less than six years in school before joining the labor force, high repetition rates result in a relatively low proportion of students completing the full six years of primary education. In fact, 1983 data indicates that only about six percent of primary school ertrants complete school in six years, with another 37 percent of entrants completing primary school after six or more years of study. At the same time, high secondary school repetition rates--only eight percent of entrants completed secondary school in six years and 33 percent required additional years--underscore the poor quality of primary school education and the fact that primary school graduates ate ill-prepared to follow the secondary school curriculum. 2.17 Low learning achievement levels and high repetition rates (which lead to an inefficient flow of students) are the result of: (a) socio- economic and cultural factors; (b) the low quality of teaching-learning; and (c) the poor conditions of schooling. 2.18 Socio-economic and cultural factors. Various socio-economic and cultural factors contribute to low learning levels, and consequently high repetition and drop-out rates. Poor nutrition levels, which according to a recent school census deteriorate as children get older, adversely affect learning capacity of a considerable proportion of primary school students. Although school nutrition programs have been initiated with external assistance (para 2.30), they are generally insufficient and furthermore, have until today mostly concentrated on children under the age of six. A further serious complicating factor is the fact that approximately 50 percent of primary school students speak only one of the twenty three indigenous languages. They do not succeed in school because they do not understand Spanish, the language of instruction. The National Program for Bilingual Education (PRONEBI) introduced in 1984 has offered non-Spanish speaking children in about 400 schools initial education in one of four indigenous languages, followed by transition to Spanish. However th's program covers only about five to ten percent of students at present and additional bilingual textbooks and teachers are required to expand the program both in absolute terms and in terms of the number of indigenous languages covered. Seasonal migrations which affect rural families and the demand for child labor by poor parents result in school participation characterized by a lack of continuity in comporition of the group through the school year. These temporary drop-outs generally repeat grades. Finally, lack of education prevents parents from assisting children with le&rning problems.  -7- 2.19 Low qualitv of teachint-learnina. The teaching-learning process in primary education is of low quality. The primary aducation curriculum is biased in favor of urban students. Most teachers lack training and experience in classroom management, student evaluation, multigrade teaching and bilingual education all of which are particularly needed in rural areas where they must deal with classes of heterogeneous entry age and background. Although most teachers speak only Spanish, those who do speak one or more of the indigenous languages have not (except under the bilingual education program) been assigned to appropriate language areas. A policy of assigning teachers to schools vhere they can speak the language of the children was adopted in 1985 and has had a positive impact on students' learning. Furthermore, the existing grade promotion system is inadequate as teachers lack evaluation guidelines and grading is done subjectively with no relation to criteria used by other teachers. There are no feedback mechanisms fcr teachers to evaluate their jobs and teachers are not aware of their teaching deficiencies since there are no feedback mechanisms with which to evaluate their performance. 2.20 Poor conditions of schooling. Conditions of schooling in Guatemala are very poor due to the: (a) lack of textbooks; (b) lack of materials and supplies; (c) large class sizes; and (d) short time devoted to learning. (a) Lack of Textbooks. The lack of textbooks and workbooks has been a serious constraint, especially in rural schools. In many regions, a schcol textbook is the only reading material available to students. Furthermore, since more than 40 percent of the population enters the system without knowledge of Spanish, textbooks in indigenous languages are essential. (b) Lack of Materials and Supplies. Materials and supplies, for both classrooms and students, are generally not available. Furniture is also often unavailable. A recent study estimates a deficit of about 295,000 student desks, i.e., about one desk for every three students. (c) Large Class Sizes. The lack of double shifts and high repetition rates in the lower grades result in excessively large class sizes in the lower grades and inefficiently small classes in the upper primary grades. In rural areas where most schools operate only one shift per day, more than one- fifth of teachers handle classes with more than 50 students. First grades may have 70 or 80 students while upper grades may have as few as 15 students. (d) Time Devoted to Learning. Finally, in addition to a reduced number of years in school, children in Guatemala also experience shorter school years (120 days vs. standard 180 days; and shorter school days (about 4 hours vs. standard 6 hours) because of social events, inefficient classroom management and absenteeism.  - 8 - Financial Conrtraints and Manaaenent Deficiencies 2.21 Financial constraints and management deficiencies contribute to the inefficiency of the entire education system. Their effect on primary education is particularly serious. 2.22 Financial Constraints. The share of primary education in the MOE's budget remained reasonably high during recent years: 56.8 percent in 1980 and 57.9 percent in 1985. However, because of the traditionally low level of public expenditures in general and comparatively small allocation of expenditures to education, the amount of resources available for primary education were limited, and were used primarily to finance teachers' salaries (91 percent of total current expenditures in 1985). Very few resources were spent on the operation of the schools, on textbooks and didactic materials, school supplies, maintenance of buildings and equipment, or pedagogical support. 2.23 Management Deficiencies. Deficiencies in management are the result of: (a) the overconcentration of authority and lack of coordination; (b) the lack of an adequate information reporting system; and (c) the lack of adequately trained personnel. (a) Overconcentration of authority and lack of coordination. Although the Government is committed to decentralize the public sector including education, the authority for decision-making in education remains concentrated in the Office of the Minister to whom a total of 17 administrative units report directly (para 2.4). At the same time, however, because the MOE's operations are scattered in 13 buildings dispersed in the capital, and because of the difficulty of communications in the city, there is poor coordination of activities leading to a duplication of efforts among the various administrative units of the MOE. As is often the case in overly centralized systems, the operation and line divisions have weak managerial capacity. (b) Lack of an adeauate information reporting system. Lack of an adequate information system affects decision-makers at all levels throughout the education system. The First Basic Education Project (para 2.31) assisted the Government in establishing the computing center in the MOE. As a result, information about space use, enrollment, teacher training, pass-fail rates and statistics of students by age is now being compiled in the new Management Information System (MIS). However, efficient reporting mechanisms need to be developed to transmit information according to users' needs. For example, the central offices of the MOE require global and summary data about the state of the education system, its performance and weaknesses, the eight districts require relevant regional data, and the individual schools need comparative data so that problems can be identified.  -9- (c) Lack of adequately trained personnel. As in many countries, administrative and managerial personnel of the HOE are recruited from the teaching profession. Consequently, though trained and skilled as teachers, they are rarely competent supervisors or managers. They often lack a perception of their role in the education system or how to perform it. Both a revised definition of the tasks of various managerial/administrative personnel and training programs are needed for them to perform their tasks efficiently. 2.24 Deficiencies in the lower levels of management have particularly affected the development ard efficiency of primary education. Because of the larger number of primas-,- schools in relation to other levels, tle geographical distribution of those schools throughout the country and the difficulty of communications, the HOE, in its present structure, has not been able to ensure that policies are p;operly implemented. Without decentralization, the central administration of the HOE is not capable of decision-making involving thousands of teachers and schools. In addition, district level supervisors and school principals are severely handicapped in performing their key roles because of their ignorance of priorities, their insufficient training and the shortage of complementary resources. D. Sector Obiectives and Strategies 2.25 The civilian Government, which came to power in January 1986, has stated that its main development objectives are to reduce poverty and stabilize the domestic environment. To meet these objectives, the Government has forcefully expressed the priority it attaches to: (a) *paying the social debtw, that is, expanding and supporting services in education, health and other social services; (b) achieving a better integration of the poor into the development process by increasing their productivity through improving their participation in basic services, including education; and (c) decentralizing the public sector and responsibilities for managing public affairs to the eight regions of the country. 2.26 In January 1987, a draft National Education Plan was prepared by USIPE. The plan proposes addressing the following three priorities: (a) eradicating illiteracy through expansicn of primary education and adult training; (b) strengthening the links between education and work; and (c) regionalizing the management of education. The document confirms the Government's intention to put relatively less emphasis on secondary and higher education in order to promote primary education. 2.27 Subsequently in June 1987, two documents were prepared by the HOE. The Anteproyecto Ley de Educacion Nacional (draft National Education Law) was prepared as a proposal for discussion and highlights the following: respect of freedom of education and recognition of the role of the private sector; pursuit of a policy of equality of educational opportunity;  - 10 - support to education for all minority groups; and confirmation that pre- primary, primary and low secondary education are compulsory. The draft law also addresses the organization of the HO, the structure of the education system, and the monitoring of the private sector. Filosofia. Politicas v Estratemias Zducstivas 1986-1990 (Educational Philosophy, Policies and Strategies 1986-1990) is a more specific document specifying the priority attached to: (a) improving administration/management at all levels of the system, and the need for related training programs; (b) developing comunities' participation in schooling; (c) adopting a continuous process of curriculum reform and teacher training; (d) defining modalities of regionalization and decentralization; (e) supporting marginal groups through provision of nutrition programs , school supplies, textbooks and didactic materials; (f) increasing support to the National Program of Bilingual Zducation; (g) promoting a systematic program for eradication of illiteracy; and (h) addressing the needs of the population aged six to nine by expanding the coverage to serve one year of pre-primary and the three first grades of primary. 2.28 Consistent with the strategy implicit in the above-mentioned publications, the Government has assigned highest priority to lower primary education, and, more specifically, has stated its goal of providing a minimum of four years of education to at least 80 percent of all six to nine year olds by 1991. In order to achieve this goal, the Government proposes to adopt the following policies and programs which address the identified sector issues described in paras 2.6 to 2.24: Ca) creating additional demand for early schooling through programs, including incentives, designed to change the attitudes of teachers and parents of schcol-age children; (b) promoting more efficient use of existing school capacity through systematic adoption of double shifts and multigrade teaching and more efficient provision of new capacity to meet increased demand for schooling; (c) splitting the first grade into two grades (children enrolling for the first time would enter in grade IA, a readiness grade in which children at the age of six would receive initial training in reading and basic numeracy skills, and the repeaters would enroll in grade IB) in order to gradually address the problems of high repetition and low achievement; (d) emphasizing the implementation of a package of measures designed to improve presently low achievement rates, with special emphasis on the needs of bilingual education in rural areas; and (e) improving the capacity of the MOE, at all levels (including teachers), to adequately provide, manage and coordinate educational opportunities in an efficient and equitable basis, through, inter alia, decentralizing responsibility and decision-making to the regional level.  - 11 - 2.29 Recognizing the urgent need to increase the traditionally low level of public expenditures in general, including the :omparatively small allocation of Government expenditures in education (one of the lowest in Latin America), the Government has recently moved on two fronts: First, it obtained legislative approval in September 1987 of a new tax reform package, which the Government expects will yield about 1 percent of GDP in increased tax revenues. Second, the Congress approved a substantial increase in the budget for 1988, including an increase in the share allocated to education from an average of 12 percent in 1982-86 to 16.2 percent in 1988. External Financint for Education 2.30 There are several international and bilateral agencies supporting the development of the education sector in Guatemala. USAID, which previously supported out-of-school education programs has, during the past four years concentrated assistance towards the establishment of bilingual education programs (para 2.18) which now cover 400 schools. IDB is financing a project supporting the expansion and improvement of rural education. UNDP/UNESCO supports two small-scale projects on adult literacy and curriculum reform. Finally, a WFP project is assisting the Government in financing school nutrition to about 1.2 million children over three years (1988 to 1990). Previous Bank Experience 2.31 The proposed project would be the fifth Bank project in the education sector in Guatemala. The first (Loan No. 576-GU for US$6.3 million, signed December 1968, closed October 1975) assisted in the expansion and improvement of secondary teacher training, the improvement of secondary schools, and the expansion of agricultural education at both secondary and post-secondary levels. The quantitative objectives of the project were largely achieved and its physical implementation was satisfactory (PPAR No. 2821). The second project (Loan No. 1212-GU for US$14.5 million, March 1976-March 1984) sought to continue the Bank's support for pre-vocational groups and to improve education data. In spite of serious delays in implementation during its first phase of operation, partly due to the priority given to reconstruction prograi which followed the 1976 earthquake, implementation improved dramatically after 1982 and both construction and software elements of the project were generally wall executed (PCR No. 5989). The third project (Loan No. 1314-GU for US$4.2 million, August 1976-June 1980) replaced primary schools damaged by the earthquake of 1976 and enhanced the quality of education in those schools by improving the skills of teachers and principals through inservice training. The project was less successful in its objective of fostering adult training as the lower secondary schools were not used for the secondary training originally intended (PPAR No. 6284). The ongoing fourth project, the First Basic Education Project, (Loan No. 2328-GU for US$18.5 million, signed November 1983) responded to the Government's emphasis on  - 12 - quantitative and qualitaSive improvements in besic education. It has assisted in establishing the institutional basis for the provision of textbooks (including textbooks in the four major Indian languages) through the creation and operation of CENALTEX. ore than 1.1 millioa textbooks were produced by the end of 1987 and an evaluation of the e :t of the textbooks vill be carried out in 1989. It has also assisted in increasing the number of school places in marginal urban areas of Guatemala City (about 150 classrooms and related facilities are already completed) and contributed to the creation and development of UCEE. Both CENALTEX and UCEE have proved to be reasonably efficient and continue to improve with experience. The project has improved management in other respects by supporting the micro-planning unit of t.e MOE whose studies were used in locating new schools and identifying fL.ilities to be repaired under the proposed project, by initiating the first phase development of the MIS under the responsibility of the computing center and through the training of officials of USIPE in project coordination and monitoring. The project is expected to be completed in December 1988. E. Rationale for Bank Involvement 2.32 Bank involvement in the sector would support the Bank's country assistance strategy to assist the Government in increasing resources devoted to basic services and strengthening public institutions to enable them to provide low-cost services, plan and execute investment programs efficiently and design effective sector policies. This strategy has been designed to support the Government's program for improving the economic and social integration of its diverse population. The education sector in Guatemala has received less resources than that of other countries at the same level of development, and resource use in the sector has been inefficient. Bank involvement is justified to complement other external assistance to the sector (para 2.30) and to build upon the achievements of the ongoing First Basic Education project (para 2.31). Furthermore, Bank involvement is justified to assist the Government in establishing a policy framework to meet the needs of higher levels of education, including prservice teacher training and upper primary education in rural areas, as well as sector-wide operations.  - 13 - III. THZ PROJECT A. Background 3.1 The proposed project was developed on the basis of the preparation and discussion of a Basic Education Sector Memorandum (Report No. 6248-GU dated June 6, 1986) and supervision of the First Basic Education Project. The Government requested assistance for the proposed project through a project proposal document Educaci6n Minima delivered to the Bank in July 1987. Appraisal took place from August 19 to September 9, 1987 and the proposed loan was negotiated in Washington on September 26-29, 1988. The Guatemalan delegation was led by the Minister of Education. B. Proiect Objectives 3.2 The proposed project would assist the Government in achieving its goal of providing a minimum of four years education to at least 80 percent of all six to nine year olds by 1991 through an integrated set of policies and programs which would support initiatives to extend the use of existing facilities by introducing double shifts and expanding the use of multigrade teaching, split the first grade into two grades (grade IA as a preparatory and grade IB) thereby encouraging earlier enrollment and reducing class size, promote bilingual education and increase the Government's capacity to effectively manage the education system. Major emphasis would be on the lower levels of primary education in rural areas. Specifically, the objectives of the proposed project would be to: (a) increase net enrollment; (b) improve the quality and efficiency of lower primary education; and (c) improve educational management. A summary description of the project which would support these objectives is presented in Annex II. C. Project Description 2 Increasing Net Enrollment (US$43.5 million; 71.5 percent of project cost) 3.3 The proposed project would support measures to increase the net enrollment rate by expanding the existing school capacity at the lower primary level and extending an existing distance education program for upper primary (on a pilot basis) and by increasing the demand for education by groups which are presently not attending schools, through program such as public campaigns and support for the school nutrition programs. Enrollment projections based on actions which would be supported under the proposed project are presented in Annex I. 3.4 Expansion of School Capacity (US$42.9 million; 70.5 percent of project cost). The project would increase the supply of school places for lower primary education by providing for: (a) constructing, furnishing and 2/ Project cost data by component presented in this section includes physical and price continvencies.  - 14 _ equipping about 1,100 new classrooms in existing schools to allow splitting of the first grade; (b) repairing, furnishing and equipping about 2,100 existing classrooms in which double shifts will be introduced; and (c) recruiting and employing about 3,200 teachers--about 1,100 of whom would be allocated to the new classrooms and about 2,100 Who would be required for the double shifts. A minimum of 320 teachers recruited would be allocated to bilingual education programs. A total of 200 new classrooms which would be built during the first year of the project have been identified (Annex XI). Evidence of acquisition of land required for expansion of schools during the first year of the project would be submitted as a condition of effectiveness. All schools to be expanded and/or furnished and equipped would be identified through micro-planning concurrently being conducted by USIPE under the First Basic Education Project (para 2.31). A minimum of 80 percent of the new classrooms would be located in rural areas and a minimum of 10 percent would provide bilingual education. In order to minimize costs, unnecessary physical expansion would be avoided through the use of double shifts, or through multigrade teaching when class sizes are small. In addition, local community participation in the construction of classrooms would be encouraged (para 3.29). Recruitment of new teachers would be carefully managed to coincide with the availability of new classrooms and with adoption of double shifts and/or multigrade teaching. Annual recruitment and construction/expansion plans would be reviewed and approved annually by the Bank. As a condition of disbursement the MOE would submit to the Bank not later than September 30 of each year, a detailed list of new classrooms to be constructed and furnished in the following fiscal year and evidence of appropriate legal action creating the corresponding new teachers' positions. 3.5 Distance Education (US$135,100; 0.2 percent of project cost). In order to begin expanding the coverage of educational services for upper primary, the project would support a pilot program of distance education to serve about 4,500 students in grades IV to VI (1,500 students per year). The experimental program would involve expanding the responsibilities of the National Program for Adult Education by Correspondence (PEAC) (para 2.4) by recruitment of staff (from existing 6 to 10) and local coordinators (from 250 to 500) to include distance education for children. Formal authorization to expand PEAC's activities through relevant legal and normative instruments as well as a review by the Bank of the proposed strategy and logistic for distance education for children (as described below) would be a condition of disbursement against expenditures for implementing this program. PEAC would carry out an initial review of alternative options and strategies for implementing the distance education program and exchange views with the Bank on the basis of this review by December 31, 1988. After taking into account the Bank's views, PEAC would analyze the content and curriculum of grades IV to VI, adapt them to the special requirements of distance education and 'roduce the required didactic materials. Local coordinators (teachers, promotors, and voluntary agents) would select eligible students in consulteion with school principals and teachers. The proposed loan would ft.nance the cost of production of didactic materials and supplies and the incremental cost of equipment maintenance and operation. A more detailed description of the distance education program is provided in Annex VIII.  - 15 - 3.6 Public Campaigns (US$487,900; 0.8 percent of project cost). Annual Public campaigns would be carried out during the life of the project to inform the public and mobilize their support towards the accomplishment of project objectives. A series of campaigns would be developed to: (a) stress the benefits of early education in the mother tongue, targetted especially in rural areas to encourage early enrollment of children (six years of age) with emphasis on female and Mayan children; (b) reduce resistance to multigrade teaching; (c) mobilize community participation in the construction of classrooms so as to reduce costs; and (d) promote the experimental distance education program for the upper primary grades. The proposed Loan would finance the cost and production of supporting materials, the provision of specialized services (i.e., media transmission costs) and consultants' services to assist in developing the specific publicity campaigns as well as developing both monitoring techniques to ensure that publicity objectives are carried out and instruments to evaluate the effectiveness of the campaigns. 3.7 School Nutrition (US$615,000, included in the costs of school construction). The project would aim to increase the demand for education in rural areas by supporting the existing school nutrition program. The project would complement the activities of other international agencies (para 2.30) which provide food for school children through the Directorate of Nutrition of the MOE. The proposed loan would finance the construction of food storerooms and kitchens for about 500 rural schools. A more detailed description of the school nutrition programs is provided in Annex VII. Improving Quality and Efficiency (US$10.8 million; 18 percent of project cost) 3.8 The proposed project would support measures to improve the quality and efficiency of lower primary education by increasing students' achievement and, consequently, reducing repetition rates. The project is expected to produce automatic promotion for students in grade IA, a reduction in repetition rates from 50 percent to 25 percent in grade IB and from 30 percent to 20 percent in other primary grades. Splitting the existing first grade and increasing school capacity through the introduction of double shifts and construction of classrooms, would lead to reduced class sizes and more homogeneous student age groups, which in turn would lead to increased student achievement. In addition, issues of quality and efficiency would be addressed through adequate provision of learning materials and teacher training programs, with due consideration to the needs of bilingual children. A program of studies would assist in identifying and analyzing areas in which further quality and efficiency improvements would be needed. 3.9 Provision of Learning Materials (US$8.6 million; 14.3 percent of project cost). The proposed project would enhance the quality of education by encouraging a systematic use of learning materials, and providing adequate supplies and equipment. Specifically, the project would provide for the: (a) development, publication and distribution of about 380,000  - 16 - textbooks for grade IA (preparatory); (b) production and distribution of about 666,000 replacement textbooks for grade IB, about 281,000 for grade II and about 235,000 for grade III; (c) production and distribution of a minimum of 15,000 teachers' guides and about 3.0 million math and Spanish workbooks; and (d) provision of incrmental supplies for about 2,500 classrooms and approximately 780,000 pupils in grades IA through III. A minimum of 200,000 textbooks and 225,000 workbooks w'uld be produced for bilingual education. An evaluation of the effectiveness of grade IA textbooks developed under the project would be carried out and submitted to the Bank no later than December 31, 1991. Annex IV presents the proposed textbook production schedule. All textbooks, except those which would be developed for the new grade IA, would follow models developed under the First Basic Education Project, adjusted to account for any modifications which may be introduced after evaluation carried out in end-1988. Provision of these textbooks and supplies, together with those being provided by other agencies and the Bank under the First Basic Education Project, would ensure that by completion of the project, 80 percent of all six to nine years old which are to be enrolled, have access to adequate learning materials. 3.10 CENALTEX would print textbooks when less .han 10,000 copies per title are required. For more than 10,000 copies, specifications for paper, page designs, typesetting, binding and packing would be established by CENALTEX, and textbook production would be contracted with private firms. The proposed loan would finance the paper and supplies needed by CENALTEX for limited book editions and the contracts with private firms for massive printing. Following the distribution system established under the First Basic Education Project, textbook distribution would be made from CENALTEX to 23 regional warehouses and from the warehouses to individual schools. CENALTEX would prepare a list of recipient schools and would contract local transportation companies for the delivery of books to regional warehouses. Distribution to schools would be contracted by regional supervisors using funds allocated annually by CENALTEX. The textbooks would remain school property while workbooks would be distributed and replaced annually. Since the beneficiaries would be mainly the poverty group, no direct cost recovery measures are considered. The proposed loan would finance the costs of transportatior from CENALTEX to the regional warehouses and the allocation of funds to t-vional supervisors for local textbook deliveries. 3.11 Teacher Training (US$2.1 million; 3.5 percent of project cost). The proposed project would provide training to about 3,200 new teachers to be recruited for grades IA through III in the effective utilization of textbooks and teaching for grade IA. In addition, about 13,000 existing grade IB to III teachers would receive training in: (a) changes in the curriculum; (b) student evaluation; (c) community support; (d) classroom management; and (e) multigrade teaching. Teacher training would be carried out through regional workshops (of 70 hours duration each) by a teacher training unit attached to USIPE, which would be responsible for overall coordination of the program. The workshops would be followed-up by distance training activities in the following five years. Teacher training  - 17 - activities would conform to the agreed program and be subject to review and approval by the Bank through submission of annual work plans (para 3.25). Details of the teacher training program are provided in Annex III. The proposed loan would finance: (a) transportation and per diem expenditures of the trainers vho would conduct courses in different regions of the country; (b) transportation and per diem for the trainees; and (c) materials needed for training. 3.12 The proposed project would also support initial efforts to ensure that, in the future, teacher training be made consistent with the educational system improvements being implemented by the Government. At present, teachers are trained in about 85 secondary schools with a 'normal stream. The curriculum is not adequate, and there is no relation between access to training and demand for teachers. The Government is committed to address this issue and plans to either upgrade teacher training from secondary to tertiary level or extend the duration of training, revise the curriculum and limit access to the projected demand for teachers. Given the complexity of this issue, the proposed project would include a study to review preservice teacher training in general. The proposed loan would finance the cost of consultants' services to implement this study which would propose specific recommendations on how to improve teacher training in the future. Terms of reference for the study would be forwarded to the Bank for review and approval by June 30, 1989 and the study would be finalized no later than December 31, 1990. 3.13 Studies (US$120,000; 0.2 percent of project cost). In order to prepare for further quality and efficiency improvements in primary education the project would support the carrying out of studies in each of the following areas: (a) curriculum reform of grades IA through III, with emphasis on adapting the curriculum to the needs of rural areas; (b) possibilities for extension of the bilingual education program from the existing four linguistic groups to one or two additional language groups; (c) development of student evaluation techniques for use by teachers, including definition of promotion standards; (d) improving methods to manufacture school furniture; (e) local technologies for construction evaluating the experience with community participation under the project; and (f) improving maintenance of school buildings. Terms of reference for each of the studies in (a), (c), (d) and (f) would be developed by USIPE, in (b) by PRONEBI and in (e) by UCEE and forwarded to the Bank for review and approval. The proposed loan would finance the cost of approximately five staff months of consultants' services required to carry out each of the studies. The completed studies would be forwarded to the Bank for review and discussion according to the following schedule: curriculum reform no later than December 31, 1989; student evaluation, no later than December 31, 1989; bilingual education and improvement of school furniture, no later than December 31, 1990; and local technologies for construction and improvement of school building maintenance no later than December 31, 1993. Ani.ex VI describes each of the above studies in greater detail.  - 18 _ ImDrovinft Education Management (US$6.5 million; 10.5 percent of project cost) 3.14 The proposed project would aim to improve overall educational management through a series of actions vhich would suppert the strengthening of management at the central level of the MOE, and the decentralizing to and strengthening of administration at the regional and school level. The proposed project would also provide technical assistance to assist in project administration. 3.15 Strengthening Management at the Central Level (US$5.8 million; 9.4 percent of project cost). Strengthening managerial capacity of the MOE would be addressed through: (a) improving the coordination and operation of central offices by providing them with a single central location; (b) training of regional administrators and planners in the techniques of micro-planning; and (c) supporting improvements in the MIS. The MOE is presently located in thirteen rented and mostly unsuitable buildings in Guatemala City. The proposed project would provide for the construction of a new centralized building which, in addition to improving communications, internal coordination and administrative efficiency of the MOE, would contribute to cost savings in the long run. The rate of return of this investment would be about 13 percent (Annex IX). A suitable site for the building has been identified and is in the process of being acquired. Submission of evidence of title to the land required for construction of the MOE building would be a condition of disbursement for all expenditures to be financed in connection with the building. The project would include consultants' services specialized in space planning, to assist UCEE in carrying out an organization and management study including an analysis of the staffing conditions and perspectives, location of common services and ergonomic studies prior to development of the final building specifications. 3.16 In order to better define the functions and responsibilities of managerial/administrative personnel in charge of primary education, the project would provide technical assistance to assist USIPE in studying, developing and adopting the use of eight administrative handbooks, one on organization and function and one on norms and procedures for each of the following four units of the MOE: the directorate of pre-primary and urban primary, the directorate of rural education, the unit of school supervision and the unit of preparatory and primary schools. The project would provide training abroad for ten officials from USIPE and other units of the MOE in the analysis of statistical information, in education planning and in computer software. In addition, the project would include financing for specialized consultants, to assist the computing center of the MOE, for about three months per year over four years, in the development and dissemination of twenty four reports covering educational indicators for the country's eight regions. and to develop a feed-back system for the MIS based on the dissemination of the reports.  - 19 - 3.17 Decentralizing to and Strengthening Administration at the Local Level (US$134,000; 0.2 percent of project cost). The proposed project would support efforts to delegate authority to resolve local issues to regional supervisors and principals. A study to define new roles and responsibilities of regional supervisors and principals would be earried out by consultants under the coordination of USIPE. The study, which would be completed by June 30, 1990 and subsequently discussed with the Bank, would set the basis for a training program of about 150 regional supervisors. The content of training program would include, in particular, compilation of data for the preparation of annual budgets and the new reporting procedures developed for MIS (para 3.16). Regional supervisors, in turn, would assist principals to improve their performance in carrying out their responsibilities using new standardized procedures. In addition, eight regional workshops to train regional staff in the use of micro- planning methodologies would contribute to the decentralization of planning to the regional level. The proposed loan would finance transportation and per diem of trainees from USIPE and of regional supervisors and staff and the cost of materials needed to implement the training program and the regional micro-planning workshops. 3.18 Proiect Administration (US$540,000; 0.9 percent of project cost). The proposed project would provide assistance for project management to: (a) assist in establishing and organizing the Project Implementation Coordination Unit (PICU) for effective operation in the Directorate General of Education (DGE); (b) establish effective relationships between the PICU and other implementing agencies, as well as with the MOE and the Bank; (c) prenare and monitor the yearly work program; (d) establish and maintain effective contacts with the Department of Projects of USIPE; (e) prepare project reports; (f) revise the project operational manual, as necessary; and (g) plan and implement activities pertaining to project components under the responsibility of the PICU. The proposed loan would finance the operating costs of the PICU, including equipment and vehicles, as well as the cost of consultants' services described above. D. Implementation Arrangements 3.19 Proiect Organization and Management. Project implementation would be carried out within the existing organizational stru:cture of both the MOE through its directorates, and other administrative units whose operational responsibilities are directly linked to project components and of Ministry of Communications, Transport and Public Works through its School Construction Agencv (UCEE) (,hart II). This arrangement would assist in strengthening the existing institutional capacity while building upon the implementation experience acquired under the First Basic Education Project. With the assistance of outside experts as would be provided under the project (Annex V), all units would be capable of carrying out their respective components.  - 20 - 3.20 UCEE would be responsible for classroom construction, furniture and equipment procurement and for coordinating construction of the MOE building. In rural areas, UCEE would procure materials which would be delivered to school sites for construction by local communities and supervise construction. CENALTEX would be responsible for all textbook development, production and distribution. The project's training program would be implemented by a teacher training unit currently operating under the Planning Office of the MOE (USIPE). This unit is expected to become a permanent entity of the MOE in about another year. Other project components such as studies, the recruitment of teachers, support to the nutrition program and to distance education, would be implemented through the relevant administrative units of the MOE (para 2.4) with administrative assistance provided through the Pro5ect Implementation Coordrnation Unit (para 3.21). 3.21 A small Project Implementation Coordination Unit (PICU) headed by the Director General of Education would coordinate project activities. The PICU would be responsible for centralized implementation functions such as consolidating the yearly work plans of executing agencies, coordinating activities among participating agencies, providing administrative back-up services, and carrying out project financial management as well as direct implementation of public campaigns. The PICU would be established and staffed with an administrator, an accountant and secretaries, all with experience and qualifications acceptable to the Bank, as a condition of effectiveness. 3.22 The Department of Projects (DOP) of USIPE, which is in charge of monitoring and evaluating ongoing education projects would be responsible for monitoring project implementation progress and for stimulating achievement of project goals. Key staff of DOP would meet at least once a month to review project implementation indicators and to assess progress. 3.23 An operational manual reflecting the above organization and project-related responsibilities and procedures was agreed upon during negotiations. The Government would agree to maintain and/or follow thie structures, responsibilities, and procedures established in the operational manual. The manual would include administrative procedures such as: characteristics of the system of accounts and the related code of accounts; the system of authorizations and mechanisms for the flow of funds; procurement procedures to be followed; the intercommunications channels among all of the executing agencies; and a set of key performance indicators to be monitored by the DOP. 3.24 Schedule. The project would be implemented over a six year period in accordance with an implementation schedule (Annex XII) developed with individual executing agencies. Disbursements have been estimated over a six year period to conform with the project implementation schedule. Although this is shorter than the standard eight year sector profile, this schedule would be justified on the basis of : (a) experience under the First Basic Education Project (para 2.31); and (b) the intensive monitoring of project execution through annual work plans (para 3.25). The project would be completed by December 31, 1994 and the closing date would be June 30, 1995.  - 21 - 3.25 Honitoring and Evaluation. The DOP would be responsible for overall project monitoring and evaluation on the basis of key performance indicators (Annex XIII) incorporated ir the operational manual. The DOP would prepare and forward to the Bank no later then June 30 and December 31 of each year semi-annual project implementation reports assessing progress towards meeting the targets in the implementation schedule. Each of the project executing agencies (paras 3.19 to 3.21) would prepare a work plan for the execution of their respective components during the following fiscal year. These work plans would be submitted to the Bank for review no later than October 31 of each year and copies of said plan would also be sent to DOP to ensure that USIPE is kept informed. The annual consolidated work plan, including proposed budgetary allocations to each project executing agency would be sent to the Bank for approval. Submission of the annual work plan to the Bank for any given fiscal year would be a condition of disbursement against proposed expenditures. The executing agencies would carry out all studies under the project (Annex VI) in accordaace with terms of reference satisfactory to the Bank, and would, as appropriate, prepare plans of action for carrying out the studies' recommendations, after taking into account the Bank's comments. The DOP would also be responsible for preparation of a project completion report which would be forwarded to the Bank within six months of the date of project completion. E. Project Costs and Financing 3.26 Project Costs. The total project cost, excluding taxes and duties estimated at approximately US$1.5 million, but including physical and price contingencies, is estimated at US$60.8 million equivalent, with an estimated foreign exchange cost of US$14.1 million (Annex X, Tables 1 to 3). Base costs of US$55.4 million were calculated using October 1987 prices. Physical contingencies of 102 have been allowed for civil works, and of 52 for other components. Price contingencies have been estimated accorditz; co a six year disbursement profile on US dollar based valuep, on the assumption that periodic exchange rate adjustments would compensate for differences between projected US dollar inflation and local inflation rates, as follows! 12 annually for 1988 through 1990 and 3.52 annually for 1991 through 1994. Base costs have been calculated using unit costs, on average, equivalent to the following: US$108/sq.m. for urban schools, US$144/sq.m. for rural schools, US$1.72 for textbooks (average, including costs of textbook development, where applicable), US$2.91 for teachers' guides, US$0.90 for workbooks, US$2.00/student for school supplies and US$26.4/student fo. furniture and school equipment. 3.27 `he proposad loan of US$30 million would finance about 502 of total project cost net of taxes and duties, or the estimated foreign exchange cost plus 272 of local costs and up to US$3.1 million of interest during construction. The balance would be financed by the Government.  - 22 - 3.28 Recurrent Costs. During the six year implementation period, the project vill add to the MOE's budget recurrent expenditures for teachers' salaries and textbooks amounting to a total of US$8.0 million (expressed in constant 1987 prices)--US$6.0 million to cover additional teachers' salaries and US$2 million for textbook replacements. This total of Pix- year incremental recurrent expenditures represents about 4.8Z of the MOE's budget for 1988 and 20Z of the 1987 primary education budget (3Z increase per year). Given the existing low level of the expenditures on education, this modest increase is warranted. Moreover, with a larger share of GDP allocated to public revenue and a growing education budget, the Government is expected to accommodate the incremental recurrent costs on an increasing basis without undue difficulty. The Government provided assurances that it will allocate adequate resources to cover projected increases in recurrent expenditures. F. Procurement 3.29 Annex X (Tables 4 and 5) provides a summary of procurement arrangements under the proposed project. International Competitive Bidding (ICB) procedures would be used for civil works exceeding the equivalent of US$400,000, textbooks exceeding the equivalent of US$200,000 and equipment, furniture and construction materials exceeding the equivalent of US$100,000. Local shopping, with at least three quotations would be used when purchasing equipment, materials and supplies costing less than US$20,000 but not exceeding an aggregate of US$1.0 million equivalent. The mobilization of community labor for the construction of classrooms would be encouraged under the project. For civil works executed through community participation, UCEE would purchase construction materials and deliver them to construction sites. To the extent feasible, UCEE would bulk procurement of construction materials (roofing sheets, doors, windows, etc.) into packages which would ensure more efficient procurement. All other contracts for textbooks, furniture equipment, construction materials and supplies would be awarded on the basis of Local Competitive Bidding procedures acceptable to the Bank. Civil works, equipment and furniture and textbooks procured under LCB would not exceed in the aggregate US$11.8 million, US$3.5 million, and US$4.0 million, respectively. Prior Bank review and approval would be required for all procurement documents and contracts for civil works exceeding US$400,000 and goods exceeding US$100,000. All other procurement would be reviewed on an ex-post basis. All procurement for consultants' services and technical assistance would require prior Bank approval and would be carried out in accordance with Bank guidelines for the selection of consultants. For all contracts awarded under ICB, goods procured in the Central American Common Market would have a preferential margin in bid evaluation equal to the smaller of half the amourt of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of goods or 15 percent of the CIF price. Textbook printing contracts would include the cost of paper, textbook graphics, printing, binding and delivery to CENALTEX warehouses.  - 23 - G. Disbursements 3.30 Proceeds of the loan would be disbursed as follows (a) civil works, 80 percent of total expenditures for new school construction and 65? of expenditures for the MOE's central office building; (b) furniture, equipment and materials, 100 percent of foreign and 90 percent of local expenditures; (c) textbooks, 90 percent of total expenditures; (d) training, 40 percent of total expenditures; (e) technical assistance, 100 percent of total expenditures; (f) operating costs of the PICU, 90 percent of total expenditures and (g) interest during construction, 10O up to an aggregate of US$3.1 million. Disbursements for contracts or expenses valued at less than US$50,000 would be made on the basis of statements of expenditure, for which supporting documentation would be retained by the four executing agencies (PICU, USIPE, CENALTEX, and UCEE) and made available for inspection by Bank during supervision missions. Disbursement for all other expenditures would be fully documented. An estimated schedule of disbursements, as well as a breakdown of disbursements by category of expenditure are presented in Annex X, Tables 6 and 7. 3.31 The Government has established a Revolving Fund funded by a special budgetary allocation to assist all project financed with external contributions. This fund pre-finances activities of projects paid in local currency and receives reimbursement directly from foreign agencies accordingly. The Government would agree to allow all executing agencies to utilize this Revolving Fund for project expenditures, as follows: executing agencies, through the PICU, would withdraw local funds from the Government Revolving Fund, the Bank would then reimburse the Revolving Fund accordingly. H. Accounting and AuditinR 3.32 The four executing agencies, PICU, USIPE, CENALTEX, and UCEE would establish separate accounts and records for project expenditures. The PICU would maintain a consolidated account of all expenditures under the project. These accounts would be audited annually by independent auditors satisfactory to the Bank. The audit reports, which would include a separate opinion on the adequacy of statements of expenditures as a basis of loan disbursements, would be forwarded to the Bank no later than four months after the end of each fiscal year. Receipt by the Bank of a signed contract with independent auditors acceptable to the Bank to carry out the audit for project expenditures incurred during the first fiscal year (1989) of the project would be a condition of disbursement against all project expenditures. I. Project Benefits 3.33 The main benefits of the proposed project would be: (a) Reduced illiteracy rates. The participation in school of children aged six to nine years would increase from about 60 percent at present to about 80 percent in 1993. The number of students successfully completing grade III would increase  - 24 - from about 126,000 today to atout 163,000 in 1993. Through the well documented role of education and literacy in increasing productivity, especially of farmers, important benefits would be expected for the long term development of rural Guatemala; (b) Improved efficiency of primary education through reduced repetition rates in the lower grades of primary education: whereas in 1983 only 17 percent of students successfully completed grade III without having repeated, at completion of the project this figure would be increased to about 27 percent. The resource savings generated by efficiency improvements would contribute to financing the expansion of the system, without requiring additional physical or human capacity; (c) Increased equity of education opportunities for the rural poor (including indigenous families) who would benefit from at least 80 percent of school investments under the project; and (d) Improved management and operation of the education system through better trained personnel, more adequate circulation of required information throughout the system, and more rational allocation of space, equipment and teaching staff, thereby allowing further coverage, quality, and efficiency improvements in the future. J. Risks and Safeguards 3.34 Two principal implementation risks would be associated with the proposed project. The first is the possible shortfall of counterpart funds which would be reduced by the Bank's close monitoring of annual budgetary allocations through annual work plans (para 3.25) to ensure adequate levels of funding. The second risk concerns the overall implementation capacity of the MOE, which may jeopardize timely execution of the project. This risk has been considerably reduced by the experience acquired under the First Basic Education Project, by the establishment of the PICU which would act as an expeditor/facilitator with strong administrative authority and through technical assistance. Intensified monitoring, both by the DOP and the Bank through annual work plans, would be important for the early detection and resolution of implementation problems. 3.35 In addition, there is a risk that the project may not have the desired impact on improving efficiency because of resistance to change on the part of administrators, teachers and parents. The project has been specifically designed to address this risk through efforts to mobilize support for project objectives, such as training p-ograms and public information campaigns, which are expected to significantly mitigate this risk.  - 25 - IV. AGREEMENTS REACHED AND RECOMMENDATIONS 4.1 During negotiations, the Government provided assurances that: (a) the PICU would be established and the staff and administrator of the PICU, with qualifications and experience acceptable to the Bank, would be appointed as a condition of effectiveness (para 3.21); (b) evidence of acquisition of land required for expansion of schools during the first year of the project would be submitted as a condition of effectiveness (para 3.4); (c) the MOE or each of the executing agencies would enter into a contract with independent auditors acceptable to the Bank for purposes of carrying out the audit of project expenditures during the first year of the project as a condition of disbursement for the loan (para 3.32); (d) as a condition of disbursement, the MOE would submit to the Bank not later than September 30 of each year, a detailed list of schools to be constructed and upgraded during the following fiscal year and evidence of appropriate legal action creating the new teachers' positions (para 3.4); (e) not later than October 31 of each year, each of the executing agencies would submit to the Bank a work plan detailing the actions to be carried out during the following fiscal year and proposed budgetary allocations required to carry out the work plan. The approval, by the Bank, of all work plans would be a condition of disbursement against any expenditure incurred during the year covered by the work plan (para 3.25); (f) as a condition of disbursement against expenditures for implementing the distance education program, the PEAC would be legally authorized to e:pand its activities to cover distance education for children and PEAC would review alternative options and strategies for implementation of the component, exchange views with the Bank and incorporate the Bank's views in the proposed strategy (para 3.5); (g) the MOE would submit to the Bank evidence of title to the land required for construction of MOE building, as a condition of disbursement against all expenditures for the building (para 3.15); (h) the executing agencies would maintain and/or follow the structures, responsibilities and procedures established in the operational manual (para 3.23);  - 26 - Mi) the DOP would submit semi-annual project implementation reports to the Bank not later than June 30 and December 31 of each year (para 3.25); (j) the executing agencies would carry out all studies under the project in accordance with terms of reference satisfactory to the Bank, and would as appropriate, prepare plans of action for carrying out the respective studies' recommendations after taking into account the Bank's comments (paras 3.13 and 3.25); and (k) executing agencies would be allowed to utilize the Governments's Revolving Fund to pre-finance local currency expenditures (para 3.31). 4.2 With the above assurances and conditions, the proposed project would be suitable for a Bank loan of US$30 million equivalent, to be repaid over a period of 20 years including five years of grace at the Bank's standard variable interest rate and fees.  ANNEX I - 27 - Page 1 of 3 GUATDMLA SECOND BASIC EDUCATION PROJECT Enrollment Proiections The tables below sumarize the findings of enrollment projections based on the following assumptions of the project. 1. Admission at the age of six years will be increasing progressively to reach 802 of the children in 1991. To allow for early admission, it is further assumed that the percentage of school children in the existing grade 1 of six years of age will remain the same in grade 1B (112). 2. At present 242 of grade 1 urban students and 47Z of Grade 1 rural students are overaged. By extending the coverage of the system, the phenomenon of late admission should be expected to persist and this will contribute to increasing the number of overaged students. On the other hand, as repetition is assumed to decline, the proportion of overaged students due to repetition should also decline. On the whole, it was assumed that the percentage of overaged students in grade IB will decline to 152. 3. Using conservative assumptions of trends of repetition rates and promotion rates reflected in tables (a) and (b), enrollment projections by grade were calculated for the period 1987-1993 (tables (c), (d) and (e)). 4. Enrollment increases through the project (table (f)) were estimated on the basis of changes in admission rates at the age of 6 and in repetition and promotion rates. Negative variations were not included in the table. 5. The need for new teachers in grade IA were estimated using an assumed pupils/teacher ratio of 50:1 (a high figure decided by the MOE). Either the needs are underestimated or the enrollment growth is overestimated. For grades IB-III, it w&s assummed that free reassignment of teachers is possible and that the ratio of pupils to teacher is 50:1 (see table (g)). 6. The share of bilingual education is assumed to be 1OI oE enrollment growth. Enrollment would be as follows: Grades IA IB II III 1986 (actual) 38085 13521 1307 987 1987 (estimate) 40000 22300 8285 1110 1993 (projection) 50000 27300 13285 6000  ANNEX I - 28 - Page 2 of 3 EDUCACION MINIMA Table (a) Rleetition Rates 1986 0 0.40 0.31 0.28 0.24 0.28 0.35 1987 0 0.40 0.31 0.28 0.24 0.28 0.35 1988 0 0.33 0.30 0.28 0.24 0.28 0.35 1989 0 0.28 0.26 0.28 0.24 0.28 0.35 1990 0 0.25 0.25 0.28 0.24 0.28 0.35 1991 0 0.25 0.24 0.27 0.23 0.27 0.35 1992/93 0 0.25 0.22 0.25 0.22 0.25 0.35 Table (b) Promotion Rates 1986 100 0.45 0.62 0.62 0.63 0.58 1987 100 0.50 0.64 0.62 0.63 0.58 1988 100 0.60 0.64 0.63 0.63 0.58 1989 100 0.65 0.64 0.65 0.64 0.58 1990-93 100 0.65 0.66 0.65 0.65 0.58 Table tc) Proiected Enrollment Pop. 6yrs. Gr. IA GR. IB 2 3 4 5 6 86 251514 72430 383186 239315 186493 137173 106575 85472 87 247552 95803 331395 246626 200593 148547 116260 91729 88 253741 123572 295589 242151 214006 160019 126138 99536 89 260084 152669 288082 249999 212477 173229 136130 107997 90 266586 183145 302974 257253 216993 179685 147251 116755 91 273251 187723 333231 261247 229180 184170 154432 125702 92 280082 192360 347990 281760 234765 193140 159040 133570 93 287085 197170 358560 296640 250290 198950 166200 138970 Table td) Enrollment Total GR. IA-VI GR. IA-11 GR. IV-VI GR.IB-III 1986 1210654 881433 329221 809003 1987 1230953 874416 356536 778613 1988 1261011 875318 385693 751846 1989 1320583 903226 417356 750557 1990 1404055 960364 443690 777210 1991 1475683 1011380 464303 823648 1992 1522625 1056875 485750 864495 1993 1606780 1102660 504120 905490  ANNEX I - 29 - Page 3 of 3 Table (e) Proiected Enrollment Variation 87186 20298 -7017 27315 30390 88/87 30058 902 29157 -26767 89,88 59572 27848 31663 -1286 90189 83472 57138 26334 +26662 91/90 71628 51016 20613 +46429 92/91 66942 45495 21447 +40857 93/92 64155 45785 18370 +40995 Table (f) Enrollment Increase Through Proiect i1 IB II III IV V VI 1988 27749 1989 56866 1990 87342 10627 16400 1991 91920 1836 14621 28587 4485 1992 96557 16595 35134 34172 13455 4608 1993 101367 27165 50014 49697 19265 7160 5400 Table (a) New Teachers Needed GR.IA-VI GR. IB-III GR. IA 88/87 800 555 89188 1191 582 90189 1668 533 600 90191 1432 928 91 92191 1339 817 93 93/92 1283 820 96 7513 3098 1997  - 30 - ANNEX II Page 1 of 2 GUATEMALA SECOND BASIC EDUCATION PROJECT Summar Description of the Proiect The project would assist the Government in its objective of providing a mainimum of four years of education to 80 percent of all children aged six to nine in Guatemala. In order to achieve this the project would have the following objectivest (a) to increase net enrollment; (b) to improve quality and efficiency and (c) to improve education management. A snmary description of the project, presented by objective, is provided below. A. INCREASING NET ENROLLMENT 1. Expansion of School Capacity a. Constructing, Furnishing and Equipping about 1,lC0 new classrooms in existing schools to allow splitting the first grade; b. Furnishing and Equipping about 2,100 existing classrooms in which double shifts will be introduced; and c. Recruiting about 3,200 new teachers, about 1,100 of which would be allocated to the new classrooms and 2,100 of which would be required for the double shifts. 2. Distance Education a. Expanding the responsibilities of the PEAC through recruiting of additional staff and local coordinators; and b. Carrying out a program of distance education to serve approximately 14,000 students in grades IV through VI. 3. Public Campaigns - carrying out annual public campaigns for each of the following: a. stress the benefits of early education in the mother tongue; b. reduce resistance to multigrade teaching; c. mobilize community participation in classroom construction; and d. promote the distance education component for the upper primary grades. B. IMPROVING QUALITY AND EFFICIENCY 1. Provision of Training Materials a. Developing, publishing and distributing about 380,000 textbooks for grade IA (preparatory); b. Producing and distributing about 666,000 replacement textbooks for grade IB, about 281,000 for grade II and about 235,000 for grade III; c. Producing and distributing about 15,000 teachers, guides and about 3.0 million math and Spanish workbooks; and d. Providing incremental supplies for about 2,500 classrooms and approximately 780,000 supplies in grades IA through III.  - 31 - ANNEX 1I Page 2 of 2 2. Teacher Training a. Training about 3,200 new teachers recruited for grades IA through III in the effective utilization of textbooks and teaching for grade IA; and b. Training about 13,000 existing grade IB to III teachers int 1. changes in the curriculum; 2. student evaluation; 3. comunity support; 4. classroom managemeiit; and S. multigrade teaching. 3. Studies - carrying of a program of studies, in the following areas, to prepare for further quality a*nd efficiency improvements: a. curriculum reform of grades L to III, with emphasis on rural areas; b. extension of the bilingual education program from the existing four linguistic groups to serve additional language groups; c. development of student evaluation techniques for use by readers, including definition of promotion standards; d. alternative strategies for improving preservice teacher training; e. improving methods to manufacture school furniture; f. local technologies for cons.:lction evaluating the experience with community participation under the project; and g. improving maintence of school buildings. C. IMPROVING EDUCATION MANAGEMENT 1. Strengthening Management at the Central Level. a. Training senior officials in the analysis of statistical information, education planning and computer software; b. Improving the Management Information System through the development and dissemination of twenty four reports covering educational indicators for the eight regions; and c. Developing and adopting eight administrative handbooks, one on organization and functions and the other on norms and procedures, for each of the following MOE units: i. Directorate of Preprimary and Urban Primary; ii. Directorate of Rural Education; 'ii. Unit of School Supervision; and iv. Unit of Preparatory and Primary Schools 2. Decentralizing to and Strengthening of Administration at the Regional and Local Levels. a. Carrying out a study to define new roles and responsibilities of regional supervisors and school principals. b. Carrying out a training program of about 150 regional supervisors in their new responsibilities; and c. Promoting eight regional workshops to train regional staff irk the use of microplanning methodologies; 3. Project administration - Technical Assistance to assist in: a. Establishing and organizing the PICU; b. Preparing and monitoring the yearly work program; c. Preparing project reports; and d. Revising the operational Manual, as necessary.  - 32 - ANNEX III Page 1 of 4 GUATEMALA SECOND BASIC EDUCATION PROJECT Teacher Training Proaran 1. The proposed project provides in-service training for approximately 16,000 teachers in grades IA-III. This target group would be divided into two groups, with the first consisting of 3,200 new teachers recruited for grades IA-III, while the second group of 12,800 would include all existing teachers in grades IB-III. Responsibility for implementing this training program would rest with a special unit currently attached to USIPE but destined to become in 1988 a permanent teacher training entity in the HOE as soon as pending educational legislation is enacted. 2. Training for the first group of teachers (new teachers) would consist of: objectives and methods for the new preparatory program (grade IA), multigrade teaching techniques, use of textbooks, planning classroom instruction, evaluation of student classroom performance, and promoting community support for local schools. Training would be conducted through about 60 regional workshops of about 70 hours duration each with the assistance of field staff known as Imultipliers' who would be contracted by the teacher training unit. The Imultipliors* most of whom would be regular teachers of outstanding ability, would be given a short training course prior to the workshops for the teachers. In addition to the workshops the program would include a series of follow up distance training activities for each teacher which would cover a period of five years. This would give continuity and greater scope to the training program. Special distance training materials would be developed as part of the program, and these would be distributed to the participating teachers. School district supervisors, working with the assistance of some "multipliers, would conduct periodic review sessions with groups of teachers to ensure compliance with the distance training objectives. 3. A similar training pattern would be used for the second group comprising 12,800 existing teachers. Training for this group would focus on: multigrade teaching techniques, application of curriculum changes, planning and evaluating classroom instruction, community support of local schools, and other needs that may be identified through a current study being conducted by the MOE to ascertain the training needs of teachers. A series of 250 regional training workshops would be held to reach the target group during the life of the project. The workshops would be conducted with the assistance of 'multipliers." As in the case of the first group of teachers, the workshops would also be complemented by follow up distance training exercises which teachers would be directed to carry out individually, and which would be supervised by school district supervisors and 'multipliers.' 4. The teacher training unit, which currently consists of 16 staff members and which benefits from the assistance of a UNDP/UNESCO project, has responsibilities in the on-going Bank-financed project for training teachers in the use of textbooks. It is, therefore, already acquiring valuable training experience for its role in the proposed project. Within  33 ANNM= III Page 2 of 4 the next eight months, as its responsibilities grow, the unit's staff will increase to about 40 persons, which, coupled with 250 umultipliers* would be of adequate size to tackle the training progrrs. of the proposed project. The following two pages of this Annex contain information on the number of teachers to be trained each year and the cost of the program.  - 34 - ANNEX III Page 3 OF 4 GUATEMALA SECOND BASIC EDUCATION PROJECT Number of Teachers Expected to be Trained Under the Project New Teachers Existing Teachers Year (Grade IA-III)) (Grades IB-III) Total Trained 1988 400 - 400 1989 500 2,560 3,060 1990 700 2,560 3,260 1991 800 2,560 3,360 1992 800 2,560 3,360 1993 - 2,560 2,560 Total 3,200 12, RQQ 16,000 1/ Program content includes prepatory program, multi-grade teaching, textbook use, planning, student evaluation and community support. 2/ Program content includes multi-grade teaching, curriculum changes, planning and evaluating instruction, communicating support and other.  SECOND BASIC EDUCATION PROJECT Cost of Teacher Trainint Prograp' (US$) New Teachers Unit Cost Total Cost Workshops 3,200 80 256,000 Development of module for distance 4 modules 3,200 12,800 training Reproduction of distance training 3,200 Teachers 16 51,200 materials (4 modules each) Distance training follow up 3,200 22 70,400 Existing Teachers Workshops 12,800 Teachers 80 1,024,000 w Developing of modules for distance 3 modules 3,200 C,600 training Reproduction of distance training 12,800 Teachers 12 153,000 materials (3 modules) Distance training follow up 12,800 Teachers 22 281,600 Training Multipliers 250 40 10,000 Training Supervisors 150 40 6,000 14 0172 1,875.200  - 36 - AN=XIV OTE A U ECOND BSIC EDUCATION PR oJCT T xtbook Production Schodulo Grads. and Titles 1 1ion 199S 1991 1m 1"8 TOTAL IA Preparatory Text 199, 193,313 Preperatory Ralder 199, 191,3 Teachere' Guide 4, 4,13 IB Basic Text SSS,m 333,eo Reader 88333, 8883,W Workbookt - Moth 288, 888,33m 868,33 979,031 Workbook - Science 288, 33,313 3858,31 979,000 Toacher.' Guide 4,mW 4,31 Bxaic Text 281,313 281,000 Workbook - Math 297,11 262,3 639,00 Workbook - Sionce 257,1 282,008 639,300 T"cher.' Quid. 4,m 4,13 Basic lext 235,M 23s,ee Teacherc' ulde I,m 3,00 TOTAL 334,3 1,246,313 799,333 914,n 564,S 716,31 4,613,f00  - 37 - ANNEX V Page 1 of 2 GUATEMALA SECOND BASIC EDUCATION PROJECT Technical Assistance Program 1. Technical assistance consists of consultant services of both national and expatriate professionals. A total of 124 staff-months have been progranmed, of which about 26 are expected to be provided by expatriates. All consultants must be fluent in Spanish and willing to travel throughout the country. Consultants will assist the Ministry to: (a) manage the project, (b) study the MOE building plans prior to the adoption of final specifications, (c) develop appropriate activities in the MIS for the Computing Center, (d) organize the education publicity campaigns, and (e) develop selected studies. General Terms of Reference A. Project Management 2. Qualifications: A national with a graduate degree in business administration or management and at least five years experience in public sector management. This person should have experience in managing social programs and in interact'ng with international agencies. 3. Mength of Assignment: 48 months 4. Specific Functions: Assist in establishing and organizing the PICU for effective operation; establishing effective relationships between the PICU and other implementing agencies, as well as with the MOE and the Bank; preparing and monitoring the yearly work program; establishing and maintaining good contacts with the TEMC; preparing project reports; reviewing and revising the project's management manual; planning and implementing activities pertaining to the project components under the responsibility of the PICU. B. 0 & M Study for the MOE Building 5. Qualifications: A national or expatriate specialized in 0 & M techniques applied to the use and design of space. This person should have a graduate degree in architecture with training in designing office buildings, and experience in studies of 0 & M applied to public service or to large firms in the service sector. 6. Length of Assignments: Two months 7. Specific Functions: To assist the team in charge of the study of the MOE building with all analytical work relating to the organizational structure of the MOE, its staffing ccnditions and perspectives, location of common services, and ergonomic studies.  - 38 - ANE V Page 2 of 2 C. The Comuuting Center 8. Qualifications: The person should be specialized in operations of a management information system, and in techniques for disseminating HIS information such as routine reports and statistical data. This professional should have a degree in statistics, demography, or economics, with five years of experience in HIS work applied at the national or international level. 9. Length of Assignment: Three months per year over a period of four years. 10. Specific Functions: To assist in preparing a plan for the production and dissemination of educational statistical information; developing a network of users for the HIS; preparing MIS reports; developing a feed-back system for the HIS; improving the capacity of the MIS. D. Public CamDaigns 11. Qualifications: A professional with a degree in mass communications or journalism with five years of experience in journalism, or radio, or television. Preference will be given to specialists having experience in publicity activities directed at rural citizens in Guatemala, especially indigenous citizer,s of the country. 12. Length of Assignment: For each campaign one and half months spread over the first two years of the project. 13. Specific Functions: To assist the PICU in developing publicity campaigns to promote regular school attendance, commmuity support of local schools, and the value of bilingual education; contracting the services of mass media agencies to carry out specific campaigns; developing monitoring techniques to ensure that publicity objectives are carried out; and developing instruments to evaluate the effectiveness of the campaigns. E. Studies 14. Characteristics: Qualified professionals are to be contracted to develop eight separate studies. The contracts would be awarded to either individuals or institutions engaged in research activities, such as universities. 15. Length of Assignment: The training study requires about five staff-months; the labor market study about ten staff months. Each of the other study requires about five staff-months for a total of thirty staff- months for the six studies.  - 39 - ANNEX VI Page 1 of 2 GUATEKALA SECOND BASIC EDUCATION PROJECT Studies Terms of Reference: Given the experimental nature of the studies, each TOR would be prepared by the project executing agency respensible for a particular study. In other words, UCEE vould handle local technologies, USIPE would deal with curricular revision, evaluation, teachers training, labor markets, and teachers' incentives, directorate general of rural primary education with therole of supervisors, and PRONEBI would deal with the expansion of bilingual education to new linguistic target groups. Terms of Reference would be submitted to the Bank for approval before initiating each study. Following are brief descriptions of the purpose of each study: Local Technologies The purpose of this study is to evaluate experience gained by the proposed project in using local technologies in school construction in rural areas, in particular, through community participation, and using local construction materials. To be completed by June 30, 1993. Curriculum Revisions The purpose of this study is to assess and evaluate curriculum changes introduced by the sistema de readecuaci6n curricular in the preparation and implementation of in-service teacher training programs. To be completed by December 31, 1989. Evaluation This study aims at designing and experimenting with methods for the standardization of students' evaluations by teachers in grades one to three in primary education. To be completed by December 31, 1989. Bilinaual Education At present, bilingual education covers only four major Indian languages. The purpose of this study is: (i) to identify linguistic areas where special effort is required to reach higher education coverage, and (ii) to propose a work program for existing bilingual education to one or two new linguistic target groups. To be completed by December 31, 1990.  - 40 - ANNEX VI rage 2 of 2 Pre-Service Teacher Trainina The purpose of this study is to review alternative approaches to improve the fitness of pre-service teacher training in the light of recent changes implemented by the Government. Two major alternatives would be: Mi) through upgrading teacher training from secondary to tertiary level, and (ii) through restructuring the network of the existing teacher training institutions, revising the curriculum and expanding the duration of training. To be completed by December 31, 1990. Production and Maintenance of School Furniture To be completed by December 31, 1990. Maintenance of School Buildings To be completed by December 31, 1993. Role of Supervisors The purpose of this study is to develop new roles and responsibilities for supervisors and school participants; in particular, to produce guidelines for supervisors to perform their tasks in data collection and assist schools on ways and means to improve their performance. To be completed by October 30, 1990.  - 41 - ANNIX VII Page 1 of 1 SECOND BASIC EDUCATION PROJECT SuiDort to Nutrition Program of Rural Children in Primary Education 1. Lack of nutrition or under-nutrition of school-age children affect both their school attendance and educational achievement. This was well documented in the specialized literature. 2. In Guatemala, a large number of children in marginalized urban and rural areas suffer from malnutrition or under-nutrition. According to a school census carried out in 1986, almost 382 of Grade 1 students suffer from lack of adequate nutrition and this proportion increases ih the following grades with the age of students. 3. In Guatemala in 1986, foreign assistance in food represent 9Z of local production. Many agencies are participating and supporting several sectors. For example, CARE served in 1986, 270,000 beneficiaries (mothers and early childhood) and WFP some 36.000. An agreement (November 1987) was reached between the Government and WFP on a US$30.0 million project whose purpose is to provide, during three years, school meals to about 1.2Z million children 180 days a year. 4. The purpose of this component is to complement the efforts made by other international agencies (such as WP and other NGOs) which provide food for school children either through direct channels or through the directorate of school nutrition of the HOE. The project would finance the building of 500 storerooms and kitchens for a minimum of 500 rural schools (data would be provided by the analysis of the school's inventory).  - 42 - ANNEX VIII Page 1 of 2 GUATDEALA SECOND BASIC EDUCATION PROJECT Distance Education I. The Existina System 1. The National Program of distance education for adults is under the Directorate of Literacy and Adult Education. The program has national coverage and serves all adults who can read and write but cannot atternd courses in the formal system (i.e. evening courses). Didactic materials are sent by mail. The program is supported by a network of about 250 local coordinators (teachers, religious institutions, and different *promoters, in health, development, literacy, bilingual education, etc.) Adults enrolled meet occasionally with teachers and receive assistance from auxiliary teachers. (The program follows the speed of learning of each adults. The instruction is self-paced, and an evaluation is carried out on request when the adults feel they are ready to advance to the next phase of the program). Adults may enroll anytime during the year, and it takes about two years to complete the three phases of the program. No accurate figures are availabe: however, estimates by the MOE suggest that about 7,000 adults were following the program in 1986. II. The Proposed Component A. Purpose 2. To give opportunities to students who have completed successfully Grade III and could not enter Grade IV in a primary school to pursue their studies in a nonconventional manner through correspondence courses. B. Targets 3. Between 1989 and 1993, to serve a minimum of 14,000 students in Grades IV to VI. C. Sequence of Implementation (a) Authorization of the National Program for Adult Education by Correspondence (PEAC), through legal and normative instruments, to establish a new department of distance education for children'; (b) Review of content and curriculum of Grades IV to VI, and adapt them to the specific needs and conditions of operation of distance education;  - 43 - ANNKX VIII Page 2 of 2 (c) Production of didactic materials according to needs of distance education; (d) Support public campaigns to promote distance education; (e) Using the existing network of 250 local coordinators (teachers, promoters, voluntary agents), initiate the selection of students in consultation with school principalsiteachers. D. Resources, Requirements 5* PEAC prepared a development plan which includes: (a) recruitment of staff (from existing 6 to 10) and of local coordinators from 252 to 500 (unpaid); (b) production of didactic materials and supplies (about US$30,000); and (c) budget increments for maintenance of equipment and operation (about US$6,000).  - 44 - ANNEX IX GUATDEALA SECOND BASIC EDUCATION PROJECT Ministry of Zducation Buildini Cost/Benefit Analysis 1. The Ministry of Education (MOE) has 13 buildings and approximately 1,000 employees which are presently scattered throughout Guatemala City. this situation results in costly inefficiencies and waste of limited and valuable resources. 2. The proposed project would finance construction of a building that would house all present employees of the Ministry and would include some additional space to meet future needs. 3. Cost/benefit calculations were made to determine the viability of the proposed building. The cost of the new building is expected to be about US$4.8 million including physical and price contingencies for a four- year period (1988-1991). 4. The new building is expected to generate rent savings and other benefits. Rent savings were based on current market rates and were used during a 50-year period. Other benefits were estimated using very conservative assumptions. On the one hand, calculations do not take into account benefits resulting from efficiency improvements in the management and administration of the Central offices because they are difficult to measure. These benefits would result from (i) more functional and suitable facilities than the rented space used at present; (ii) easier and faster communications between the various units of the Ministry, particularly between the technical and the administrative directorates; and (iii) improved use of common backstaffing services by some units at present located too far to be served; and of too small size to have their own services. On the other hand, measurable lengths (salaries, transport, telephone) were estimated by assuming the smallest impact of the concentration of the offices; as follow: (i) salary savings would result only from personnel reductions from the lowest level of the scale; it is assumed lOZ of the current salary budget would be saved due to the effect of proximity; (ii) expected reductions in transportation needs and in telephone calls from building to building would produce an aggregate saving of 121 of total operating costs (five vehicles and their maintenance costs would be saved; vehicles are amortized in five years; saving in phone calls is assumed to be 2S of current expenditures). 5. The results of the analysis (Table 1) indicate that the rate of return, based on constant October 1988 values, using the above assumptions is 13Z. Hence, in spite of conservative assumptions, the rate of return is above the estimated opportunity costs of borrowed capital (10-12Z). This would justify the proposed investment.  - 45 - JiANNEX IX GMTOA Table 1 Costimfit Iulwis - Ninistrv So Edeit hildirM (in I 000) 1 2 3 4 5-50 ICIEITS SWINES IN ET PAYNTS - - - - 2.0 SARY SAYINGS - - - - 620.0 WNICLE MI CUMICATIOIS SAVINGS - - - - 31.0 TOTAL SAVINSS - - - - 1471.0 COSTS WILDING COSTS 77.2 2577.6 3969.6 3428.3 NET KNFWITS NET SAVINGS -77.2 -2577.6 -3969.6 -3429.3 A471.0 --- -- -- -- --- -- -- -- -- --- -- - - -- --- - -- -- -- - -- -- - October 129 1988 11:36 INTERNAL RATES OF RETURN OF NET STREAMS B.TOT UP Pl O Z UP DMNIOZ U 02 DOIWOt 20Z 502 LAO1 YEAR LAG 2 YEARS LAG 3 YEARS C.tOT 12.956 14.124 15.265 10.556 11.758 10.525 6.512 11.700 10.722 9.929 iP 1O0 11.868 12.956 14.019 17.084 10.752 9.602 5.840 10.783 9.924 9.220 UP 20Z 10.941 11.960 12.956 15.827 9.893 8.813 5.258 9.991 9.229 8.600 ip 502 8.913 9.680 10,525 12.956 7,919 6.991 3.993 8.142 7.588 7.119 DOW 1O0 14.252 15.516 16,751 20.309 12.956 11,623 7.304 12.780 11.652 10.750 DOuI 202 15.827 17.208 18.556 22.433 14,411 12.956 9.257 14.07-5 12.756 11.716 NO 502 23,674 25.613 27.496 32.853 21.676 19.614 12.956 20.270 17.900 16.129 AD 1 YEAR - - - - - - - 12.956 11.700 10.722 LAe 2 YEARS - - - - - - - - 12.956 11.700 LAG 3 YEARS - - - - - - - - - 12.956 5WITCHIN6 VALUES AT M1 APPRAISAL SUITCHING PERCENTAGE STREAK VALUE VJALUE CRANWE B.TOT 3,736.57 7.322.45 -16.192 C.TOT 79322.45 89736.57 19.312 Net Present Value gt OCC 112 = 1t414.1 Internal Rate ot Return = 13%  GUATEMALA SECOND BASIC EDUCATION PROJECT Project CoaPonents bY Year Totals Includint Contingencies Totals Including Contingencies (0 million) (US$ million) 1989 1990 1991 1992 1993 1994 Total 1989 1990 1991 1992 1993 1994 Total A. INCREASING I4ET ENROLLMENT 1. EXPANSION OF SCHOOL CAPACITY 2.5 16.1 19.8 24.9 25.5 18.0 106.8 1.0 6.4 7.9 10.0 10.2 7.2 42.7 2. DISTANCE EDUCATION 0.1 0.1 0.1 O.1 0.1 0.1 0.3 0.0 0,0 0.0 0.0 0.0 0.0 0.1 3. PUBLIC CAMPAIGNS - 0.2 0.3 0.4 0.4 0.3 0.2 1.6 0.1 0.1 0.1 0.2 0.1 0.1 0.7 Sub-Total INCREASING NET ENROLLMENT 2.7 16.4 20.2 25.3 25.9 18.3 108.8 1.1 6.6 8.1 10.1 10.3 7.3 43.5 B. IMPROVING QUALITY AND EFFICIENCY -------------- .-- . --------------- 1. TRAWINIlG MATERIALS 0.2 6.4 3.6 4.1 3.2 4.0 21.5 0.1 2.6 1.4 1.6 1.3 1.6 8.6 2. TEACHER TRAINING 0.7 1.0 1.0 1.0 1.3 - 5.1 0.3 0.4 0.4 0.4 0.5 - 2.0 3. STUDIES 01 0.1 0.1 - - 0.1 0.3 0.0 0.0 0.0 -. - 0.0 0.1 Sub-Total IMPROVING OUALITY AND EFFICIENCY 1.0 7.6 4.7 5.1 4.5 4.1 27.0 0.4 3.0 1.9 2.1 1.8 1.6 10.9 C, IMPROVING MANAGEMENT 1. CENTRAL LEVEL 1.2 2.8 6.1 4.3 0.1 0.1 14.6 0.5 1.1 2.4 1.7 0.0 0.0 5.8 2. LOCAL LEVEL - 00 0.0 0.0 0.0 - 0.1 - 0.0 0.0 00 0.0 - 0.0 3. PROJECT ADMINISTRATION 0.5 0.2 0.2 0.3 0.1 0.1 1.4 0.2 0.1 0.1 0.1 0.0 0.0 0.6 Sub-Total IMPROVING MANAGEMENT 1.7 3.1 6.4 4.6 0.2 0.2 16.1 0.7 1.2 2.6 1.8 0.1 0.1 6.4 Total PROJECT COSTS 5.4 27.1 31.3 35.0 30.6 22.5 151.9 2.2 10.8 12.5 14.0 12.2 9.0 60.8 N=== ===: ==== ==-= ==== ==== ==_ _ ==== === = =_ = = ==== ====9 1 November 8. 1908 tt;?'2  -47 - ANNEX X Table 2 GUATEtALA SECOND BASIC EDUCATION PROJECT Project Cowsowets by Year (0 Oillion) Total Base Costs -------- ---------- (LUSS 1989 1990 1991 1992 1993 1994 0 Million) A, INCREASING NET ENROLLMENT 1. EXPANSION OF SCHOOL CAPACITY 2.4 14.9 18.4 22.8 23.0 16.1 97.7 39.1 2. DISTANCE EDUCATION 0.1 0.1 0.0 0.1 0.1 0.1 0.3 0.1 3. PUBLIC CAMPAIGNS 0.2 0.3 0.3 0.3 0.2 0.2 1.5 0,6 Sub-Total INCREASING NET ENROLLMENT 2.7 15.2 18.8 23.2 23.3 16.3 99.6 39.8 B. IMPROVING QUALITY AND EFFICIENCY 1. TRAINING MATERIALS 0.2 6.1 3.4 3.7 2.8 3.4 19.6 7.8 2. TEACHER TRAINING 0.7 1.0 0.9 0.9 1.2 - 4.7 1.9 3. STUDIES 0.1 0.1 0.1 - - 0.1 0.3 0.1 Sub-Total IMPROVING QUALITY AND EFFICIENCY 0.9 7.1 4.4 4.7 4.0 3.5 24.6 9.8 C. IMPROVING MANAGEIENT 1, CENTRAL LEVEL 1.1 2.6 5.5 3.8 0.1 0.1 13.1 5.2 2. LOCAL LEVEL - 0.0 0.0 0.0 0.0 - 0.1 0.0 3. PROJECT ADMINISTRATION 0.5 0.2 0.2 0.2 0.1 0.1 1,4 0.5 Sub-Total IMPROVING MANAGEMENT 1.6 2.8 5.8 4.0 0.2 0.2 14.5 5.8 Total BASELINE COSTS 5.2 25,2 29.0 32,0 27.4 20.0 138.7 55.5 Physical Contingencies 0.2 1.6 1.7 1.6 0.9 0.2 6.3 2.5 Price Contingencies 0.0 0.3 0.6 1.4 2.3 2.4 7.0 2.8 Total PROJECT COSTS 5.4 27.1 31.3 35.0 30.6 22.5 151,9 60.8 Foreign Exchange 1.4 9.4 9.3 8.5 4.8 2.0 35.4 14.2 November St 1988 10:23  GUATEIALA SECOND BASIC EDUCAT10' PROJECT Suarv Account bN Project Cowonent D0 INCREASING NET EOLLIENT INPROVING OWLITY AND EFFICIENCY IMPROVING MANAGEMENT Pbxal -- - - - - - - - - - - - - - - - -- Continincins EXPANSION OF DISTANCE PULtIC SCHOOL TRAINING TEACHER MROJECT ------ -- SCHDOL CAPACITY EDUCATION CAMPAIGNS NUTRITION MATERIALS TRAINING STUDIES CENTRAL LEVEL LOCAL LEVEL ABNINISTBStION Total I Mocwt 1. INVESTMENT COSTS A. CIVIL WORKS SCHOOL BUILDINGS 349969.600.0 - - - - - - - - 349969600.0 10.0 3,4969960.0 MINISTRY OF EDUCATION - - - - - - - 10,660.000.0 - - 10660,000.0 10.0 1.066,000.0 Sub-Total CIVIL WS 349969P600.0 - - - - - - 10t660.000.0 - - 459629,600.0 10.0 495629960.0 B. FtRNITURE AND EQUIPMENT 4.280,000.0 - - - - - - 1,750,000.0 - 295,900.0 6.325.300.0 5.0 316.292.O C. SUPPLIES - - - - 4-4499294.0 - - - - - 4,44.294.0 5.0 2229464.7 D. TEXTBOOKS, WORKBOOS I TEACNER GUIDES - - - - 15.1474657.0 - - - - - 15.147,657.0 5.0 757,382.9 E. STUDIES - - - - - 25,000.0 300.000.0 - - - 125,000.0 5.0 16,250.0 F. IMAAEMIENT INFORNATION SYSTEM - - - - - - - 625,000.0 - - 6259000.0 5.0 31.250.0 G. TECHNICAL ASSISTANCE - 3089000.0 625,000.0 - - - - 25,000.0 65.000.0 - 1.023.000.0 5.0 51,15O.O Total INVESTMENT COSTS 39.249.600.0 308.000.0 625.O00.0 - 19,576.951.0 25.000.0 300.000.0 13.060-000.0 65.000.0 295,900.0 73,525.351.0 3.1 5,957,747.5 It. RECURRENT COSTS A. SALARIES 589500-000.0 - - - - - - - - 660.000.0 59,160.000.0 0.0 0.0 B. TRAINING - - 870,517.5 - - 4-688-000.0 - - - - 5559B517.5 5.0 2770925.9 C. OPERATING COSTS - - - - - - - - - 419000.0 419.000.0 5.0 20.950.0 Total RECURRENT COSTS 58-500,000.0 - 970,517.5 - - 4,688.000.0 - - - ION79,OO0.0 659137,517.5 0.5 291,875.9 Total BASELINE COSTS 979749,600.0 308.000.0 1-495,517.5 - 199596.951.0 4.713.000.0 300,000.0 13.060.000.0 65,000,0 1,374.900.0 1389662968.5 4.5 6t256,623.4 PhNsical Continwincies 3.710.960.0 15-400.0 74.775.9 - 979,947.5 235S650.0 15-000.O 1.186.000.0 3.250.0 35.740.0 6,256.623.4 0.0 0.0 Price Contingencies 5-365t042.7 14.336.7 64,235.9 - 962,077.9 172,282.4 12-017.1 343.154.0 2.395.1 36,994.9 6.972.536.6 3.1 2169646.1 Total PROJECT COSTS 106-825,602.7 337.'36.7 1,634,529.3 - 21,538,976.4 5.120.932.4 327-017.1 1'6589.154.0 704645.1 1,447.534.8 151992t02t.5 4.3 6P473t269.5 Foreign Exchange 15,648,676.6 270,1B9.4 792,154.8 - 11.092.663.2 1.294.915.3 261,613.7 5,671.546.9 56.516.1 341,25,.7 35,420,001.7 6.7 29359.543.9 w K Novube- 8. 1988 10:23  - 49 - ANNEX X Table 4 GUATEMALA SECOND BASIC EDUCATION PROJECT Procurement Method (in US$ million) ICB LCB Other Total a/ Civil Works 7.9 11.8 0.5 20.2 (7.0) (8.0) (0.5) (15.5) Furniture, Equipment & 1.0 3.5 0.5 5.0 Materials (1.0) (2.1) (0.5) (3.6) Textbooks 2.0 4.0 6.0 (1.8) (3.6) (5.4) Salaries 25.7 25.7 (0] (0] Training 2.3 2.3 (0.9) (0.9) Operating Costs 0.6 0.6 (0.5) (0.5) Technical Assistance including 1.0 1.0 Consultants (1.0) (1.0) Interest During Construction 7.5 7.5 (3.1) (3.1) Total 10.9 19.3 38.1 68.3 (9.8) (13.7) (6.5) (30.0) a/ Figures in parenthesis are amounts expected to be financed by the Bank.  - so - ANNEX X Table 5 GUATEMALA SECOND BASIC EDUCATION PROJECT Prior Review Threshold and Procurement Methods (USs'000) Prior Review Contract Aggregate Type of Threshold Value Limit Procurement Civil Works Classroom >400 >400 ICB <400 3,800 LCB with foreign bidders permitted Bdtu I in> 1* nn !bI nn TCB Materials <100 8,000 LCB < 20 500 Prudent shopping MOE Building ICB Furniture, Equipment and Materials >100 >100 ICB <100 3,500 LCB with foreign bidders permitted < 20 500 Prudent shopping Textbook Printing >100 >200 ICB <200 4,000 LCB with foreign bidders permitted  - 51 - AMP" A Table 6 GUATEMALA SECOND BASIC EDUCATION PROJECT Estimated Schedule of Disbursements ------------------------------------ ---------------------------------------------------------------------------____----- Bank Quarter Disbursed Disb. as Balance Fiscal Year Ending During Cumulative X of of Quarter Amount Total Loan 89 March 31, 1989 0.25 0.25 29.75 June 30, 1989 0.35 0.60 2 29.40 90 Sept. 30, 1989 0.60 1.20 28.80 Dec. 31, 1989 0.60 1.80 28.20 March 31, 1990 0.60 2.40 27.60 June 30, 1990 0.60 3.00 10 27.00 91 Sept. 30, 1990 1.80 4.80 25.20 Dec. 31, 1990 1.80 6.60 23.40 - arU ,1, 199'i A.8 8=4n 21.60 June 30, 1991 1.80 10.20 34 19.80 92 Sept. 30, 1991 1.90 12.10 17.90 Dec. 31, 1991 1.90 14.00 16.00 March 31, 1992 1.90 15.90 14.10 June 30, 1992 1.90 17.80 59 12.20 93 Sept. 30, 1992 1.70 19.50 10.50 Dec. 31, 1992 1.70 21.20 8.80 March 31, 1993 1.70 22.90 7.10 June 30, 1993 1.70 24.60 82 5.40 94 Sept. 30, 1993 1.20 25.80 4.20 Dec. 31, 1993 1.20 27.00 3.00 March 31, 1994 1.00 28.00 2.00 June 30, 1994 0.80 28.80 96 1.20 95 Sept. 30, 1994 0.60 29.40 0.60 Dec. 31, 1994 0.60 30.00 100 0.00 --- -- --- -- -- --- -- -- --- -- -- --- -- --- -- -- --- -- -- ---__-- ---_- --  - 52 - ANNEX X Table 7 GUATEMALA SECOND BASIC EDUCATION PROJECT Allocation of Loan Proceeds Amount of the Loan Allocated (Expressed in X of Expenditures Catesory USS Equivalent) to be Financed (1) Works a) New school construction 11,000,000 65? b) Central Office Building for MOE 2,900,000 65Z (2) Goods (excluding 2,500,000 100Z of Foreign textbooks) expenditures and 90? of local expenditures (3) Textbooks 5,300,000 90? (4) !raining 800,000 401 (5) Technical Assistance including consultants' services 1,050,000 100? (6) Operating Costs 550,000 90? (7) Interest and other charges 3,100,000 (8) Unallocated 2,800,000 TOTAL 30,000,000  - 53 - ANNEX XI GUATEMALA SECOND BASIC EDUCATION PROJECT Preliminary List of 200 Schools to be Extended During the First Year of the Project Number of Range of Deficit No. of Municipios (Enrollment New Department To Be Served in Primary) Classrooms ALTA VARAPAS 11 1,530 to 7,890 32 QUICHE 12 1,800 to 7,110 28 HUEHUETENANGO 10 1,500 to 4,370 28 SAN MARCOS 7 1,670 to 4,020 24 QUEZALTENANGO 6 1,840 to 4,610 20 ESCUINTLA 6 1,610 to 5,975 20 SUCHITEPEQUEZ 6 1,660 to 3,820 14 TOTONICAPAN 5 1,720 to 4,920 14 IZABAL 5 2,010 to 5,410 12 SOLOLA 3 1,630 to 3,380 8 Total 71 188,080 200 Source: DIF - USIPE Ministry of Education  - 54 - MEXXII SECON BSIC EDUCATION POECT I lDIm_tstlen Scbedule 1W 9 m 1991 1902 19fl 1994 Ov*ralI I Mseamsnt - Estab i ohIU & DW - Operation Manual IW - Identify Audit Fir_ I" - Budgetary Provisions 1i - Audit Flrm Contracted 10 - Opening Accounts 1N Classroom lIteo identified 27 54 32 1i constructed 27 54 n2 in quipped 27 54 32 1I Doublt Shifts Introduced 19 2 87 72 1Id Supplies claseroeo 12.6 2S 60 76 lt students a 11 24 43 6 166 Teachero - Recrulted 12.6 26 U 75 10 - Tralid (new) 12.6 26 SO 75 100 - Trained (existing) 20 46 63 6 100 Sunervislon - Study 10 - Training 20 47 78 10 Grades IA Production 1W Dlitrib-tion es 79 9S 1S Grades IA-III Textbooks 56 32 16 Workbooks 19 $6 56 76 1a Teachers Guides 83 66 1" Public Coemalans Local Participation 16 as U0 67 es 1S Distance Education 1S aS so 67 es 1" Early Enrollment 16 88 60 67 eS 1in Multigrade Teaching 16 38 60 67 $a 1in School Nutrition 40 of 1In Distance Education 11 29 s0 75 10 Studi- S hooi Furniture 10 Local Technolegies 10 Teacher Training 10 CurrIcula 1W School Me4ntenance 10 Bilingual Education 100 Student Evaluation 1W Responsibilities of regional super vlsore A principals 10 Administrative Handbooks 60 1W Trainina Reolonal Administratore 20 40 66 3 1SO Central Office Preliminary Studies (Set) 1" Construction 25 65 lee  - 55 - ANEX XIII Page 1 of 2 UCSS EsuIC EUCTICN PROJCT Key Portorems.. Tereste Obi.ctives/Activitise 19 10J imI2 LM 1994 Totel I I-rore Aes_ C ieareem - site idetiti-d 2 2 2 w 2U 1,1W - contructed am *9 * 2J 1,'1W - quipped 8W we 8W 200 1,16I Introduction of Double Shifts 4W 2W 4W en OW 2,100 Ccl mst....) Teachere Recrulted 4W so 70 US S8 8,208 Public CaomeIone - early enrollment I 1 1 1 1 1 - ultigrae teaching 1 1 6 = local participation 1 1 1 1 1 1 6 = distonce education 1 1 1 1 1 1 6 SupDort to School Nutrition - store room and kitchen 26 1in 1W0 10 60 Distance Education - WIf of student s lected for Grades IV-VI 1.6 2.5 8. 8 .6 8.6 3.5 14 II. Imorove Quslity and Efficiency Teacher Training - now teachers 400 g 7?W an an 3,200 - xleting teachers (00s) 2.6 2.5 2.6 2.5 2.6 12,80 Textbooks and Workbooks (OM6) (Production) Grdes IA Prep. 19 19w,eW Reader 1W 190,4W Teacher Guides 4 4,666 (Distrib.) Grde IA Prop. 12J a s 18 19,6,00 Reader 128 sO as 18 190,66 Teacher Guides 4 4,666  - 56 - AM=EX XIII Page 2 of 2 Objectivoe/Activitee 19_9 1990 19.1 1962 1995 194 Total Production and Distribution for Rooiec o n rt to Grades _ 2-1151,132,000 -T xtbooke ee 291 2 1 0 - Workbooks 76 514 666 564 716 a,0o ,000 - Toechers' Gides 4 4 8 11,000 of which Bilingual Education 125 76 90 6o 72 417,000 SeApp I*- for cl roor 400 500 700 600 900 3, 00 - for studete (000) 2n so 100 150 200 250 706,000 Studios - Bilingul Education 1 1 - Curricula 1 1 - School Maintonance 1 1 - Student Evaluation 1 1 - Teacher Training 1 1 - School Furniture 1 -Local Technologies 1 1 - Responsibilities of Regional Super- visors and 1 1 Principals III. Improve manogment/ Centrol Offices Building - Preli-inory Studies (set) 1 1 - Construction 1 1 central Offices Operation - Adinietrative Handbooks 4 4 8 - Training Regienei 2 2 2 2 2 10 Administrator* Supervision - Study on Roles and Functions 1 - Training (000) 30 40 40 40 10  - 57 - ANNEX XIV Page 1 of 1 GUATEMALA SECOND BASIC EDUCATION PROJECT LIST OF DOCIHETS ON FILE 1. Ministerio de Educacion: 'Cuadrom Estadisticos,* 1982 2. Ministerio de Educacion: 'Diagnostico de la Educacion Nacional' 1986 3. Ministerio de Educacion: 'Educacion Primaria, Poblacion y Desarrollo 'Bases para de Educacion Primaria en el Mediano Plazo," 1986 4. Ministerio de Educacion: "Filosofia, Politicas y Entrategia Educativas,* 1986-1990 5. Ministerio de Educacion: PEAC: 'Proyecto de Educacion Minimal 6. Ministerio de Educacion: Junta Calificadora de Personal, Documento No. 444-87, 1982 7. Ministerio de Educacion:a/ USIPE: 'Proyecto - Educacion Minima,' 1987 8. Ministerio de Educacion: 'Anteproyecto Ley de Educacion Nacional, Documento para Discusion," 1987 9. World Bank: 'Basic Education Sector Memorandum," June 6, 1986; Report No. 6248-GU 10. Ministry of Education: List of Classrooms to be Built by Municipality during First Year or Project a/ This is the project proposal document submitted to the Bank by the MOE.  _ r . iTL.3J LS I  - 59 - CHART I Page 2 of 3 ANNEX -- ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF EDUCATION A. Ministry B. Technical Viceminister B.1. National Board of Out of School Education B.2 General Directorate of Education B.2.1 Directorate of Preprimary and Urban Primary B.2.2 Directorate of Secondary B.2.3 Directorate of Literacy and Adult Education B.2.4 Directorate of Education in Rural Area B.2.5 Director of Physical Education B.2.6 Directorate of Student Wealth and Special Education B.2.7 Directorate of Aesthetic Education B.2.8 General Inspectorate C. Administrative Viceminister C.1 Directorate of Personnel C.2 National Center of Books and Textbooks C.3 Board of Personnel Evaluation C.4 School Nutrition C.5 Education Technology C.6 Materials and School Supplies C.7 INAJU INAJAV C.8 Office of Registry and Processing of Expenditures C.9 Office of International Organization C.10 Office of Transports C.11 Office of Public Relations C.12 School Furniture r 1% <rhoni RiiAi4na ? int- n'.p  - 60 - CHART I Page 3 of 3 C.14 Committee "Operacion Escolar' C.15 Office of Technical Assistance of UNESCO C.16 Small Lotery C.17 D. Special Supervision in the Minister Office E. 'Oficialia Mayor" F. Office of Planning: USIPE G. Technical Council H. Technical Advisory Office I. Legal Advisory Office  -61 - CHART II Di r A St ? r n TIeI l ofEEdatio__u i I ltt~~~~~~~~~~~~~~~~~~~~Poject lm1*- | l _~~~~~~~~~~~~~~~~~~~~ntation CoOrJ- instor Unie tellebon*- Ccn-truetion ~ ~ ritio A Workbook. A Furniture Dmrtmnt Training rAdministrative lHndbook _Handbook of Project rOperation ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Eu to  E ___ ,^,F AL. M t A I L Q ; + RAILROADS ,_ * AIRPORTS! i l 4, ~~PORTS i ~~~DEPARTMENT BOUNDARIES * -- INTERNATIONAL BOUNDARIES 4j ._._._1,~~~~~~b.1 z " 171~, XAIW< KILOMETERS > WfYLfF l ~~0 10 2'0 7;) 40 S:5 1 ob1 sxts~~~~~~~~~~~~~~W o {V __ t sY (f l~~co' 1t 1 .'~~~~~~~~~~~~~~~C OD. t,W ALo - .. y , ?/; ^C; , R ., . s F 8 , P9,- s/' \ 4~~~~~I A. t eis.ces.*< j , { .c s x_> ( X / (oo*.~~~H 0 ND U Ar> TtrMoeSmoiSO I i 9 gt< oq' Xco-^Lf~~~~~~~~~R / I5"' el ' ' 'wa-,# a ,, -e^;JW <H*s~~~~ C e .>r < X .,- .;. .; ! wa7- t f > JH r 2-_v-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~s- 0. a P . ftJ 1 j p c r '-v { ,1 A, A: s s {: ^ e A 2 X /~~~~NW % s e 4 / !11 t j n O, sJ {~~~~~~V ^;;f , - .^_.fHONDURAS S~~~~~~~~~~~~~~~~~~~~~~~~~~~~t f~t -fAtX g + u < < eZ - =z-s*wA