Peru - Primary Education Quality Project

Document of The World Bank Report No.13426-PE STAFF APPRAISAL REPORT PERU PRIMARY EDUCATION QUALITY PROJECT NOVEMBER 14 ,1994 HUMAN RESOURCES DIVISION COUNTRY DEPARTMENT III LATIN AMERICA AND THE CARIBBEAN REGION OFFICE  CURRENCY EQUIVALENTS (as of August 31, 1 994) Current Unit = Nuevo Sol (S/.) US$1.00 = S 2.25 US$1 million = S 2.250 million US$444,444 = S 1 million FISCAL YEAR January 1 - December 31 ACADEMIC YEAR April 1 - December 1 5 PRINCIPAL ABBREVIATIONS AND ACRONYMS USED APAFAS Asociaci6n de Padres de Familia ADES Areas de Desarrollo Educativo CEI Centros de Educacion Inicial COMUNED Consejo Comunal de Educaci6n DINFE Direcci6n de Infraestructura Educativa DRE Direcci6n Regional de Educaci6n ENSA Encuesta Nacional de Salud FONCODES Fondo Nacional de Compensacion y Desarrollo Social GDP Gross Domestic Product GOP Government of Peru GTZ German Agency for Bilateral Cooperation IDB Inter-American Development Bank INFES Instituto Nacional de Infraestructura Educativa y de Salud ISP Institutos Superiores Pedag6gicos KfW Kreditanstalt fur Wiederaufbau MHC Ministry of Housing and Construction MOE Ministry of Education MEF Ministry of Economy and Finance MEP Ministry of the Presidency NEC Nucleos Escolares Comunales ORDES Organismos Regionales de Desarrollo PRONOEI Programas no Escolarizados de Educaci6n Inicial OREALC/UNESCO Oficina Regional de las Naciones Unidas Para la Educaci6n y Cultura SENCICO Servicio Nacional de Capacitaci6n para la Industria de la Construcci6n UNDP United Nation Development Program USES Unidades de Servicios Educativos  PERU STAFF APPRAISAL REPORT PRIMARY EDUCATION QUALITY PROJECT Table of Contents LOAN AND PROJECT SUMMARY ...................................... iii BASIC DATA SHEET ............................................... iv 1. BACKGROUND, ISSUES AND STRATEGY .... .................... 1 A. Economy and Poverty in Peru .... ...................... 1 B. Overview of The Education Sector .............................. 3 C. Main Issues in Primary Education ............................... 5 D. Government Strategy in Primary Education .... ................. 8 E. Bank Role and Strategy ...................................... 9 F. Lessons Learned .......................................... 10 2. THE PROJECT ........................ ........................ 13 A. Project Objectives ..1 3 B. Project Components ....................................... 14 C. Project Description ........................................ 1 5 3. PROJECT COSTS, FINANCING, PROCUREMENT AND DISBURSEMENT ........ 27 A. Project Costs ...... .............. ........................ 27 B. Financing Plan ........................................... 29 C. Recurrent Costs Arising from the Project ......... ............... 30 D. Project Sustainability ................ ...................... 30 E. Procurement ............................................ 31 F. Disbursement ............................................ 35 G. Accounting and Auditing ............... .................... 36 4. PROJECT IMPLEMENTATION AND MANAGEMENT ........ .. ............ 37 A. Status of Preparation ................ ...................... 37 B. Implementation Schedule ................................... 37 C. Project Management ....................................... 37 This report is based on the findings of en identification misson In November 1993, a preparation missions in January 1994, a preeppreisal n-ossion in April 1994, and en apprasalr mission in June 1994 comprised of Messrs. Ernesto Cuedra Mission Leederl, Donald Winkler ILATADI) Emmanuel Jimenez end Laura Rawlings IPRDPH-, Jamil Selmi tLA2HR), Linda Lsrach and Josd Moscoso (LAlHRI, Richard Moore (LA3PSI Hoveida Nobakht (PMDTRI; and Messrs. Herbert Bergmann (GTZI, Erika Himmel, Alison McGowan, Jos6 Robles, Alfonso Oporto, Rodolio Sanjurjo. Carlos Ihlie y Cerlos Chemorro (consultanlel. Eduardo Velez (LA2HRI and Vincent Greeney (ASTHR) acted as peer reviewers. The Department Director. Project Advisor, and Sector Division Chief were Mssrs. Yoshiaki Abe, Robert Crown and Julian Schweitzer, respectively  ii 5. PROJECT BENEFITS AND RISKS ............ .. ................ 39 A. Project Benefits ............... .. .................... 39 B. Project Risks ....................................... 40 C. Environmental Impact ................................. 40 6. AGREEMENTS AND RECOMMENDATIONS ...................... 40 7. LIST OF TABLES IN MAIN REPORT Table 3.1: Summary of Project Costs by Component ............. 27 Table 3.2: Summary of Project Costs by Category of Expenditure ..................................... 28 Table 3.3: Financing Plan ................................ 30 Table 3.4: Procurement Arrangements ....................... 33 Table 3.5: Allocation and Disbursement of IBRD Loan ............. 35 Table 3.6: Estimated IBRD Disbursement ..................... 36 8. ANNEXES ANNEX 1: SELECTED EDUCATION STATISTICS ................ 42 ANNEX 2: PROJECT COST TABLES ........................ 50 ANNEX 3: PROJECT IMPLEMENTATION STRATEGY ............. 56 ANNEX 4: BANK SUPERVISION REQUIREMENTS ............... 66 ANNEX 5: PROPOSED NATIONAL ASSESSMENT SYSTEM ... ..... 69 ANNEX 6: TEACHER TRAINING SUBCOMPONENT .............. 71 ANNEX 7: INSTRUCTIONAL MATERIAL MODULES .............. 74 ANNEX 8: PILOT PROJECT ON DECENTRALIZATION ... ......... 78 ANNEX 9: SCHOOL INFRASTRUCTURE COMPONENT ... ......... 87 ANNEX 10: DOCUMENTS IN PROJECT FILES .................. 89  iii PERU PRIMARY EDUCATION QUALITY PROJECT LOAN AND PROJECT SUMMARY Borrower: Government of Peru Implementing Agencies: MOE, INFES Beneficiary: Ministry of Education Poverty: Program of Targeted Interventions Amount: US$ 146.4 million equivalent Terms: Repayment in 17 years, including a grace period of five years with loan amortization based on level repayments of principal at the Bank's standard variable rate. Commitment Fee: 0.75 percent on undisbursed loan balances, beginning 60 days after signing. Financing Plan: See Schedule paragraph 3.6 Net Present Value: Not Applicable Staff Appraisal Report N