Nicaragua - Basic Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6491-NI MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN THE AMOUNT EQUIVALENT TO SDR 23.1 MILLION TO THIE REPUBLIC OF NICARAGUA FOR A BASIC EDUCATION PROJECT February 22, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY AND EQUIVALENT UNITS US$1.0 = 6.6 Nicaragua C6rdoba (C$) (December 1994) SDR1.0 = US$1.472 FISCAL YEAR January 1 - December 31 ACADEMIC YEAR February 1 - November 30 ACRONYMS AND ABBREVIATIONS ERC Economic Recovery Credit (Cr. 2302, 1991) FISE Emergency Social Investment Fund project (Cr. 2434, 1993) GON Government of Nicaragua ICB International Competitive Bidding IDA International Development Association LCB Local Competitive Bidding MEC Municipal Education Council MED Ministry of Education MIS Management Information System MOF Ministry of Finance NGO Non-Governmental Organization PCU Project Coordination Unit PPU Project Preparation Unit SIMEN UNESCO/Dutch Project for Improvement of Nicaraguan Education SOE Statement of Expenditure UNESCO United Nations Educational, Scientific and Cultural Organization UNICEF United Nations International Children's Education Fund USAID U.S. Agency for International Development  FOR OFFICIAL USE ONLY NICARAGUA BASIC EDUCATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Nicaragua Beneficiary: Ministry of Education (MED) Poverty: Program of Targeted Interventions. The project will target poor children in the rural and urban marginal areas for the pre- primary education component, and will select locations for infrastructure investments by poverty indicators developed and used by the Government for poverty alleviation programs. Amount: SDR 23.1 million (US$34.0 million equivalent). Terms: Standard IDA terms with 40 years maturity including 10 years grace period. Commitment Fee: 0.50% on undisbursed credit balances, beginning 60 days after signing, less any waiver. Financing Plan: See Schedule A. Net Present Value: Not applicable. Staff Appraisal Report: Report No. 13705-NI; dated February 22, 1995. Map IBRD-24714 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO NICARAGUA FOR A BASIC EDUCATION PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed credit to the Republic of Nicaragua (GON) for SDR23.1 million (US$34.0 million equivalent) to help finance a Basic Education Project. The proposed credit would be repayable on standard IDA terms with a maturity of 40 years, including 10 years of grace. The Ministry of Education (MED) would be the implementing agency for the project. 2. Background. Education indicators reflect Nicaragua's poverty. Nationally, 23 percent of the population age ten and older is illiterate. Among the extremely poor in rural areas this figure is 51 percent. The average number of years of schooling is 4.5 nationally, but only three years for extremely poor urban dwellers, and 1.6 years in rural areas. Pre- primary enrollment is low (15 percent) and classes are concentrated primarily in non-poor urban areas. Approximately 80 percent of children in the age bracket 7-12 (net enrollment rate) are enrolled in the primary schools. The gross enrollment rate of 104 percent reflects a large number of over-age students. Secondary schools enroll 27 percent of the population in the age bracket 13-17, one of the lowest rates among Latin American countries. Grade repetition and dropout rates are high, particularly in the early grades. 3. The quality of primary school teaching is generally low and few textbooks or other teaching materials are available. About 36 percent (7,000) of the primary teachers are unqualified. About 20 percent of total primary classes are multigrade teaching, but teachers are not trained, teaching materials are unsuitable, and physical facilities are inadequate for multigrade teaching. A recent Bank financed survey of school buildings concluded that approximately 9,000 out of 12,000 public classrooms are in need of rehabilitation or major repair. Classes are overcrowded, with an average of 47 students per classroom, but capacity can be expanded by doubling shifts in many schools before construction of new classrooms becomes necessary. The IDA-financed Social Investment Fund project (FISE, Credit 2434- NI, 1993) is contributing to school rehabilitation in rural areas, but considerable needs remain to be covered in school sanitary facilities and small buildings in poor condition. 4. Expenditures in education reached 4.5 percent of GDP in 1991, up from a low of 2.7 percent in 1989. But these resources are not used efficiently. Practically all resources are used for teacher salaries. Annual cost per student in primary schools is estimated at about US$42, which is extremely low by Latin American standards. Consequently, only 17 percent of the students entering the first grade in a given year graduate six years later. For each student that graduates from primary school, the system must finance 11 student years instead of 6. 5. Government Strategy. The GON's educational policy assigns top priority to an improvement of the quality and efficiency of primary education. Key elements of the GON's strategy to achieve this objective include increased financial resources for the primary  2 schools, an improved primary curriculum, better trained teachers, making primary textbooks available to all students, expanding pre-primary services to the poor with an emphasis on school readiness, and rehabilitating the physical plant of primary schools. A teacher training program has been undertaken with assistance from a USAID grant (BASE Project), and new curricula for primary education are being developed with a UNESCO project financed by the Dutch government (SIMEN Project). The Ministry of Education has asked the Bank's support to develop a textbook program including cost recovery mechanisms, a non-formal pre-primary program for the rural and urban marginal areas, and a program of school rehabilitation with local and community participation. 6. Central to the government's strategy to improve the quality and efficiency of primary education is decentralization of school administration to local school management councils (Consejos Escolares). Through decentralization the Government aims to mobilize community involvement in school management and finances, thereby improving the quality and efficiency of children's learning. The GON began a pilot program in 1993 to delegate school administration to Councils formed by parents, teachers and local authorities. The regulatory framework was provided by the MED's 1993 Rules and Regulations which established the concept of "autonomous" and "municipal" schools. As of December 1994, 40 of a total of 191 public secondary schools and 15 of 120 potential municipal councils have signed decentralization agreements. Initial experience shows that decentralized management enhances local interest in the success of the schools, increases accountability of teachers, and motivates parents and the community to provide local financial support to the schools. 7. However, the autonomous schools and municipal councils still have serious limitations in their effectiveness, and need training and technical support. The proposed project would support the GON's strategy by strengthening the institutional and financial mechanisms for effective operation and expansion of the decentralized system. The MED has instituted cost sharing by charging user fees of 10 c6rdobas per month to secondary school students. Compliance with payment of the fee was limited at first, but in autonomous schools parents have shown more willingness to pay. The Government's strategy is to make secondary education self-sufficient so that GON can allocate more resources to primary education. Public primary schools are prohibited by law from charging user fees, but they are authorized to collect 5 c6rdobas per month from each student on a voluntary basis. Parent contributions are used mostly to supplement teachers' salaries and are estimated to reach approximately US$210,000 equivalent in the last year of the project, or 0.5 percent of the 1993 MED budget. 8. Project Objectives. The main objectives of the proposed project are to improve the efficiency and quality of basic education in Nicaragua (pre-primary and grades 1 to 6) by reducing the repetition and dropout rates and enhancing student academic achievement; ensuring sustainable financing to meet recurrent and capital cost needs; and providing suitable schools for a satisfactory learning environment. The project focuses on pre-primary and primary public education where the vast majority of students come from poor segments of the population. The project also supports decentralization of the school system at both the  3 primary and lower secondary levels to help improve quality and efficiency at both levels and mobilize additional financial resources for the sector. While quality and efficiency could be improved in a centralized system, the government's policy of decentralization introduces the additional benefit of community participation and local control, which has been shown to encourage greater resource mobilization, better use of available resources, and better school performance. 9. Project Description. The project has been organized into four components: (a) school decentralization; (b) educational materials; (c) expansion of pre-primary education; and (d) infrastructure rehabilitation. (a) School Decentralization (US$11.3 million, or 29 percent of total costs) to finance training, technical assistance, and equipment at the central and local levels to decentralize administration of the 191 public secondary schools to autonomous local school councils, and the 4,700 primary schools to 120 municipal education councils (MECs) covering the 143 municipalities. Decentralization will be implemented gradually over a 4 year period, with approximately 25 percent of the schools being transferred to local school councils each year. The project would also help finance, on a declining basis, performance incentives for primary teachers serving in decentralized schools to encourage regular attendance, reduce teacher turnover and absenteeism, and promote community involvement and responsibility in the regular operation of the schools. A decentralized school maintenance program will be financed on a declining basis to encourage local initiative and responsibility in the maintenance of school buildings. (b) Educational Materials (US$12.0 million, or 30 percent of project costs) to finance the development, printing, and distribution of textbooks at the primary school level. About 2 million re-usable textbooks and 3.9 million workbooks would be distributed to 2.9 million children nationwide over the four years of the project. Costs would be partially recovered through a leasing system. Funds collected would be retained at the school level and used to improve the quality of the school programs. Children unable to pay would be exempt from fees, and textbooks would be reused for a minimum of three years. (c) Expansion of Pre-primary Education (US$6.0 million, or 15 percent of total costs) to finance the expansion of an informal pre-primary program for the one year preceding primary level. The program would grow gradually from 34,000 at present to cover about 92,000 children per year in the fourth year of the project, and would be targeted to the rural and marginal urban areas. The program will use existing facilities of community centers, and complement day care and health and nutrition activities currently being offered to poor children with the provision of teaching programs. (d) Infrastructure Rehabilitation (US$8.5 million, or 22 percent of total costs) to finance: (i) rehabilitation, or replacement, of about 1,000 dilapidated primary school classrooms; and (ii) rehabilitation or installation of basic sanitary services in about 139 primary schools.  4 Project administration costs will total approximately US$1.5 million or 4 percent of total project costs. 10. A breakdown of estimated costs and financing are shown in Schedule A. Amounts and methods of procurement and disbursement and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Nicaragua are given in Schedules C and D, respectively. The Staff Appraisal Report No. 13705-NI, dated February 22, 1995, is also attached. 11. Project Implementation and Sustainability. The project would be implemented over a four-year period. The MED will be the principal implementing agency, but decentralized local and municipal school councils will also have a major implementation role. The MED has established a clear strategy, is fully committed to the project, and is undergoing institutional reforms and improvements which will enable it to better implement the project and absorb the technical assistance to be provided. Existing Nicaraguan legislation provides sufficient legal framework to expand the decentralized models of school autonomy and municipal administration. New directors for the key areas affecting the project -- decentralization, personnel and supervision -- have been named. 12. Administrative decentralization would sustain project benefits in two ways. First, greater community involvement in school management would increase local pressure for the allocation of adequate resources to the education system and efficiency of educational expenditures. Second, new sources may be opened for financing education, including voluntary and mandatory parental contributions and mobilization of other local resources. Cost savings are likely to occur through efficiencies introduced by decentralization, rationalization of resource allocations to MECs, and economies achieved by textbook leasing. 13. With a conservative target of reducing the repetition and dropout rates by 30 percent over a period of four years, the financial impact of incremental recurrent project costs and of the increased number of students due to efficiency gains and population growth, will require annual increments of the current primary education budget between 0.5 percent and 2.9 percent during the project implementation years. This would be equivalent to 0.2 percent to 1. 1 percent of the projected total Ministry of Education budgets in 1994 prices. This level of budget growth is within the possibilities of the country, and would be more than offset by the improved internal efficiency and lower cost per graduate from the system. 14. Lessons from Previous IDA Involvement. Recent IDA experience in Nicaragua shows that project start-up is slowed by unfamiliarity with Bank legal, procurement, and disbursement procedures, and that borrower ownership of the project is important to implementation success. The proposed project will use two techniques which have been successfully tried in the Health Sector Reform project (Cr. 2556-NI, 1994): establishing a Borrower Project Preparation Unit (PPU), which will become the Project Coordination Unit (PCU); and holding a project launch workshop to orient and train Borrower personnel. The FISE project has demonstrated the utility of a specialized agency in undertaking small scale  5 infrastructure operations in scattered locations that are often beyond the capacity of a line ministry. The proposed project will utilize FISE for contracting and supervising school construction and rehabilitation through an implementation agreement with the MED. 15. Studies in other countries have concluded that school decentralization is not an end in itself and does not automatically produce the benefits often claimed for it. Successful decentralization generally requires the same elements as successful education projects: (a) political commitment from national, municipal and local leaders; (b) a clear assignment of responsibilities at different levels; (c) a workable implementation strategy and a timetable; (d) clear operational manuals and procedures; (e) training for the management skills required at the decentralized and central levels; (f) relevant performance indicators to be monitored continuously through a management information system; and (g) adequate financial, human, and physical resources to sustain the process. Moreover, experience with numerous education projects has shown that: (a) community participation in school management and maintenance tends to encourage better teacher and administrator performance and promotes efficiency in resource use and greater involvement in school finance; (b) pre-primary programs enhance achievement in the primary grades; and (c) use of well designed textbooks improves educational achievement, but its impact on increased recurrent costs must be contained. All these elements have been taken into account in the preparation of the project. 16. Rationale for IDA Involvement. The proposed project is consistent with IDA's overall country assistance strategy which was discussed at the Board on the occasion of the presentation of the Second Economic Recovery Credit for Nicaragua in June 1994. The strategy focuses on alleviating poverty, investing in human capital, strengthening institutional capacity, and rehabilitation of physical and social infrastructure. The proposed project complements IDA's Economic Recovery II credit (Cr. 7784-NI, 1994), as well as the short term poverty alleviation efforts and institutional reforms of the social sector supported by the FISE and Health Sector Reform credits. Furthermore, it will encourage the Government to move ahead with its reform program in the delivery of primary and secondary education services. The Government values the Bank Group's experience with other Latin American countries, such as Chile, Colombia, and Mexico, that have undertaken successful decentralization reforms of the education sector. It expects that experience with those reforms could be usefully adapted, with IDA assistance, to the Nicaraguan context. The education reform, and the proposed project, is an outcome of the policy dialogue with the Nicaraguan Government, based on IDA's Sector Work: Review of Social Sector Issues (Report No. 10671-NI, 1993). Moreover, investments in the project will complement those financed by the USAID BASE project and the UNESCO/Dutch SIMEN project, which concentrate primarily on curriculum improvement, teacher training and corresponding institutional strengthening of the management information system and student evaluation areas of the MED. Coordination and cooperation with these projects, as well as a clear division of labor, has been established throughout the project preparation phase, and will continue during project implementation. 17. Actions Agreed. The Government has submitted a signed policy statement, which  6 includes emphasis on improving the quality and efficiency of primary education with additional resources made available from decentralization of secondary education and efficiency improvements across the sector, and its commitment to decentralization of administrative authority and community participation, and to increase and rationalize the allocation of sector resources to compensate for inequities between richer and poorer municipalities. During appraisal, the MED agreed on detailed terms of reference and a calendar for (a) implementation of the institutional strengthening subcomponent; (b) a plan for the information campaign; (c) the design of the monitoring and evaluation system, and monitoring indicators for project implementation; (d) detailed implementation plans for each component; and (e) basic criteria for teacher incentives and allocation of budget resources to decentralized schools. 18. During negotiations, agreement was reached that: (a) the MED will submit implementation plans by November 30 of each year for each project component for the following year for IDA's approval and undertake annual project implementation reviews no later than January 31 of each year; (b) the MED and IDA will conduct jointly an in-depth mid-term review of the project and the program described in the policy letter by January 31, 1997, under terms of reference satisfactory to IDA, to be presented no later than July 31, 1996, and on the basis of this review, the MED would prepare and carry out an action plan, satisfactory to IDA; and (c) GON will provide adequate counterpart funds annually in the MED budget. 19. As conditions of credit effectiveness, the MED shall have put into use the operations manual for the project and operational guidelines for decentralized school management, and will present a copy of the signed agreement with FISE for implementation of civil works. As a condition of disbursement for training of pre-primary staff, a complete set of teaching manuals, satisfactory to IDA, shall have been presented. 20. Environmental Aspects. The project will have no direct impact on environmental conditions, and has been classified as Category C. 21. Program Objective and Poverty Categories. The proposed project, in the human resource development category, is a program of targeted interventions. The project will target poor children in the rural and urban marginal areas for the pre-primary education component, and will select locations for infrastructure investments by poverty indicators developed and used by the Government for poverty alleviation programs. 22. Participatory Approach. Representatives of parents and teachers, as well as local authorities and the teacher unions, have been actively involved in discussing the main features of project design with the MED, especially regarding decentralization and teacher incentives. Parents, teachers, local authorities, and private sector organizations will participate in implementation as members of the municipal education councils. Incentives to community participation will be provided in the form of compensatory funds allocated to the poorer communities for the teacher incentives component.  7 23. Project Benefits. The project will reinforce the efforts of the Government of Nicaragua to achieve a better quality of primary education and greater efficiency of the school system. The combined inputs of the project and the USAID financed BASE project, are designed to produce better learning achievements by 720,000 primary and 92,000 pre- primary children and thereby significantly reduce repetition and dropout rates. Reducing repetition and dropout rates by 30 percent would improve the efficiency of the annual operating cost of MED-supported schools by about US$4.0 million or 15 percent, and the cost per graduate would drop from $461 to $414. Decentralization would make teachers and administrators more responsive to the concerns of parents and the community, and would optimize the use of available resources through close monitoring of expenses by interested user groups. Approximately 92,000 children of pre-primary age and their parents, as well as over 4,000 community volunteers, would benefit each year from an improved non-formal program of pre-primary education. 24. Project Risks. The main risk to the project is the institutional and administrative weakness of the MED and the low management capacity of municipal governments and other local management groups. To reduce this risk, the project provides for technical assistance to strengthen the institutional capacity of the MED and local education councils, train council members and staff, and develop norms and procedures for decentralized school management. Another potential risk is the weak condition of the country's economy which may make it difficult for the Government to absorb an increase in recurrent costs of the educational system. To minimize this risk the project focuses on qualitative improvements which would enhance efficiency and better use of available resources, rather than on expansion of the system's capacity. The size of the project takes into account the Government's financing capacity. Another potential risk is initial resistance by the teacher unions to decentralization, though minimized by the teachers' acceptance of the program during the pilot phase. To reduce this risk, a comprehensive information campaign will promote better understanding of the benefits of local control of the schools among teacher unions and parents. The mid-term review of the project components will propose any necessary adjustments to reduce the risk. 25. Reconunendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Ernest Stern Acting President Attachments Washington, D.C. February 22, 1995   Schedule A NICARAGUA - BASIC EDUCATION PROJECT Project Cost Summary. Local Foreign Total ------ US$ million ------ Decentralization 7.3 3.4 10.7 Educational Materials 0.5 10.2 10.7 Pre-primary Education 3.7 2.0 5.7 Infrastructure 4.0 3.8 7.8 Project Administration 1.3 0.1 1.4 BASE COST 16.8 19.5 36.3 Physical Contingencies 0.3 0.8 1.1 Price Contingencies 0.8 1.1 1.9 TOTAL PROJECT COST' 17.9 21.4 39.3 Financing Plan Local Foreign Total ------ US$ million ------ Government of Nicaragua 5.3 - 5.3 IDA 12.6 21.4 34.0 TOTAL 17.9 21.4 39.3 Includes taxes and duties estimated as about US$1.5 million.   Schedule B Page 1 of 2 Procurement arrangements US$ million Category ICB LCB Other Total Civil Works (FISE) 3.1 5.0' 8.1 - (2.8) (4.5) (7.3) Civil Works (MED) 2.2*t'- 2.2 (2.0) (2.0) Equipment, vehicles, and school and office 0.4 1.7 0.5!' 2.6 furniture (0.4) (1.5) (0.5) (2.4) Textbooks and printing services 4.8 1.8 0.9!' 7.5 (4.8) (1.8) (0.9) (7.5) Exercise books and other educational materials 4.3 0.7 0.2a' 5.2 (3.8) (0.7) (0.2) (4.7) Technical assistance, training, studies and - 5.8E' 5.8 management fees for infrastructure component - - (5.7) (5.7) Incentives, incremental salaries, educational | 0.6 7.3 7.9 supplies and other operational costs (0.3) (4.1) (4.4) TOTAL 9.5 7.9 21.9 39.3 (9.0) (7.1) (17.9) (34.0) Notes: Figures in parentheses are amounts estimated to be financed by IDA. !' To be processed through shopping. b/ Direct contracting with communities and local contractors not exceeding US$0.6 million in aggregate. c, Individual consultants and/or consultant firms to provide technical assistance, training and studies to be retained according Bank guidelines.  Schedule B Page 2 of 2 NICARAGUA - BASIC EDUCATION PROJECT WITHDRAWALS OF THE PROCEEDS OF THE CREDIT Amount of the Category Credit Allocated (in % of Expenditures to be US$ million Financed equivalent) Civil Works (FISE) 5.9 90% of total expenditures Civil Works (MED) 1.8 90% of total expenditures Equipment, vehicles and furniture 2.2 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 85% of local expenditures for other items procured locally Textbooks, manuals, and training guides 6.5 100% of total expenditures ex factory Printing and distribution services 0.3 100% of total expenditures Didactic materials (including exercise 4.7 100% of total expenditures ex books and student packages) factory Teacher and other staff training 3.0 100% of total expenditures Technical assistance, studies and 3.3 100% of total expenditures information campaigns Teacher incentives in pre-primary and 3.0 100% up to US$0.7 million; primary schools 80% up to US$1.7 million; 50% up to US$2.7 million; and 25 % thereafter. Incremental operating costs, including 0.8 100% up to US$0.3 million; staff salaries, travel allowances, 80% up to US$0.5 million; maintenance of facilities, equipment and 50% up to US$0.7 million; and vehicles, and office supplies and 25% thereafter. materials Unallocated 2.5 Total 34.0 ESTIMATED DISBURSEMENTS TIMETABLE (in US$ million) IDA Fiscal Year 1995 1996 1997 1998 1999 Annual 3.02 6.0 9.4 11.0 4.6 Cumulative 3.0 9.0 18.4 29.4 34.0 2 Includes retroactive financing of US$0.4 million.  SCHEDULE C NICARAGUA BASIC EDUCATION PROJECT TIMETABLE OF KEY PROJECT PROCESSING EVENTS (a) Time taken to prepare Eight months (b) Prepared by Ministry of Education with assistance from IDA and Ruta Social (c) First IDA Mission October 1993 (d) Appraisal mission departure June 1994 (e) Negotiations February 1995 (f) Planned date of effectiveness June 1995 (g) List of relevant PCRs and PPARs Not applicable   Schedule D Page 1 of 2 STATUS OF BANK GROUP OPERATIONS IN NICARAGUA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of December 31, 1994) Amount in US$ million (less cancellation) Credit/ Fiscal Loan No. Year Borrower Purpose Bank IDA Undisburse 28 loans and 9 credits fully disbursed 229.61 197.00 Of which SECALs, SALs, and Program Loans Cr. 2302-NIC 1992 Nicaragua Economic Recovery Credit 110.00 Cr. 2302-1-NIC 1992 Nicaragua Economic Recovery Credit 10.30 Subtotal 120.30 Cr. 2434-NIC 1993 Nicaragua Social Investment Fund 25.00 10.21 Cr. 2536-NIC 1994 Nicaragua Agric. Technology & Land Mgmnt. 44.00 41.07 Cr. 2556-NIC 1994 Nicaragua Health Sector Project 15.00 14.80 Cr. 2631- NIC- 1994 Nicaragua Economic Recovery Credit II 60.00 30.79 Cr. 2631-2-NIC 1995 Nicaragua Economic Recovery Credit II 6.30 6.38 * Sub-total 150.30 103.25 Total 229.61 347.30 Of which has been repaid 184.16 6.73 Total now held by Bank and IDA 45.45 357.19 Amount sold: 5.62 Of which has been repaid: 5.62 Total Undisbursed 0.00 0.00 103.25 SAL, SECAL, or Program Loan. * Difference due to exchange rate fluctuations between SDR and US$. MdeS: LA2CO File: N:\MdeSilva\disburse\nicaragu\NI- 1 2-94.xis Jan. 19, 1994  Schedule D Page 2 of 2 NICARAGUA SUMMARY OF IFC INVESTMENTS as of December 31, 1994 (US$ Millions) Original Gross Commitments Fiscal Year Obligor Type of IFC IFC Participant Total by Held by Undisbursed Committed Business Loan Equity IFC Participants lincluding Participants) 1968 Textiles Fabricato de Nicaragua, SA Textile Mill 0.50 0.64 0.93 2.07 - - - (FABRITEX) 1976 Nicaragua Sugar Estates Ltd. Sugar Mill 6.50 - - 6.50 1976 Posada del Sol ' Hotel 0.70 0.20 - 0.90 Total Gross Commitments 7.70 0.84 0.93 9.47 Less: Cancellations, Terminations, Repayment & Sales 7.70 0.84 0.93 9.47 Total Commitments Now Held ' 0.00 0.00 0.00 0.00 Total Undisbursed Commitments 0.00 0.00 0.00 0.00 a Investments which have been fully canceled, terminated, written-off, sold, redeemed or repaid. b Gross Commitments consist of approved and signed projects. c Held Commitments consist of disbursed and undisbursed investments.  860 Th -, iho, 80- Pre;- BIrhe W -Id 8-r s oH N I C A R A G U AD S _r I.el ioh Gr ~0o The drod S O -ed ondnr bo,oreso DEPARTMENTS h -p d - -,1, - ph, Department boundaries drrproooe National capital Cities and towns International Boundaries anoy Boi-nonza La Rosito Puerto Cobezos Snto Maria ocOotll Somoto La Vigra Kuikuinao Puerto Isobel Esteli Jinotego Potosi Somotillo 0 20 40 60 80 100 1 20 140 160 Matagalpo 1 KILOMETERS Morozon Muy Muy MILES 0 20 40 60 80 100 Chinondego Molpaisillo Corinto Leon Boaco 8;2 Lo Libertod Romo _ ILIZE Puerto Sondino HONDURAS MANAGUA' El Bluff 4, JUI9OIPO ~~~~~~~~Bluetrelds 0 V # 2 Masaya Granada hglaB.fed Son Uboldo Jinotepe Nandaime SALVADOR Lo Boquito Altogrocio Morrito Rivas Managua Penos Bloncos Son Curlos Son Juan del Su, COSTA 0 dO 80 O KILOMETERS RICA C O S T A ~\ _ Son Juon del Node MILES R I C A PANAM '0 80 00 00