El Salvador - Education Project

RESTRICTED fhico i TRICy 'FILE |,( '. Report No. P-704 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF EL SALVADOR FOR AN EDUCATION PROJECT May 21, 1969  INMTIMATIO?LIL BANK FOR RECONSTRUCTION AND DhEVELOPMET REPORT AND RECON aDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS CN A PROPOSED LOAN TO THE REPUBLIC OF EL SALVADOR FOR AN EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed loan in an amount in various currencies equivalent to US$4.9 million to the Republic of El Salvador, for an education project. PART I - HISTORICAL 2. The proposed project was submitted to the Bank group in October 1966, It was appraised first in November/December 1966, and after a revised request which shifted emphasis towards more industrial, agri- cultural and commercial education, again appraised in March 1968. Ne- gotiations took place in Washington on December 9 through 11, 1968c The Borrower was represented by the Minister of Education, Dr. Ttlter Beneke, the Technical Director of the National Planning Council, Dr. Eduardo Reyes, and Ing. Mauricio Eduardo Burgos, Chief of the Planning Section in the Ministry of Education. 3. Presentation of the loan to the Executive Directors has been delayed because of the need for the Government to obtain authorization from the National Assembly wihich, in El Salvador, is a constitutional re- quirement. 4. The proposed loan, the ninth to El Salvador, would increase the Bank's total lending to $57.9 million (net of cancellations). IDA has made one credit of US$8.0 million. The following is a summary of Bank loans and IDA credits to El Salvador as of April 30, 1969: Loan or lon(U$mli) Credit Year Borrower Purpose amount (US$ million) No. Bank IDA Undisbursed 7 loans 1949-63 51eO Credit 31-ES 1962 Republic of El Salvador Roads - 8.0 0.5 Loan 521-ES 1967 Republic of El Salvador Roads 2.8 - 2.8 Total (less cancellations): 53.0 8.0 of which has been repaid to Bank and others 23.3 Total now outstanding (carried forward) 29.7 8.0 3.3  -2- C-ntinued Loan or Amount (US$ millions Credit Year Borrower Purpose Bank IDA Undsbarsed No. I Total now outstanding (brought fonrard) 29.7 8.0 303 Amount sold: 309 of which has been repaid 3.2 0.7 Total now held by Bank and IDA 29