Document of The World Bank and The Inter-American Development Bank IDB Report No. 0083-ES IBRD Report No. 14129-ES STAFF APPRAISAL REPORT EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT September 8, 1995 Country Department II Region II Human Resources Operations Division Social Programs Division Latin America and the Caribbean Regional Office Inter-American Development Bank World Bank CURRENCY EQUIVALENTS Currency unit = Colon (C) US$1.00 = C8.75 (July 1995) FISCAL YEAR January I - December 31 ACADEMIC YEAR January 15 - October 31 PRINCIPAL ABBREVIATIONS AND ACRONYMS USED ACE Community Education Association (Asociaci6n Comunalpara la Educaci6n) Becas CAPS Basic Education Leadership Training Program (Capacitacion de Lideres de Educacion Bcasica) CEC Education Training Center (Centro Educativo de Capacitacion) CCM Teacher Training Centers (Centro de Capacitacion de Maestros) DNE National Directorate of Education (D)ircccion Nacional de Educaci6n) EDUCO Community-managed Schools Program (Educaci6n con Participacion de la Comunidad) EMDE Model School for Education Development (ELscuela Modelo de Desarrollo Educativo) FIS Social Investment Fund (Fondo de Inversion Social) GOES Government of El Salvador IBRD Intemational Bank for Reconstruction and Development ICB International Competitive Bidding IDB Inter-American Development Bank MICDES Ministry of Coordination of Economic and Social Development (Ministerio de Coordinacion del Desarrollo Econ6mico y Social) MIS Management Information System MINED Ministry of Education (Ministerio de Educacion) MOH Ministry of Health (Ministerio de Salud Pu6blica y Asistencia Social) NCB National Competitive Bidding NGO Nongovernmental Organization ODEPOR Planning and Organization Office - MINED (Oficina de Planificacion) OPCI Office of International Programs - MINED (Oficina de Proyectos de Cooperaci6n Internacional) SABE Strengthening Achievement in Basic Education (Solidificaci6n del Alcance de la Educacion Basica) SAL Structural Adjustment Loans (IBRD Loan 3293-ES and IBRD Loan 3646-ES) SETEFE External Financing Technical Secretariat (Secretaria Tecnica de Financiamiento Ex.rterno) SNF National Secretariat of the Family (Secretaria Nacional de la Familia) SOE Statement of Expenditure SSRP Social Sector Rehabilitation Project (IBRD Loan 3348-ES) TAL Technical Assistance Loan (IBRD Loani 3648-ES) UNDP United National Development Program UNICEF United Nations Children's Fund USAID United States Agency for International Development EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT TABLE OF CONTENTS IBRD Loan and Project Summary .................................... iii IDB Loan and Project Summary ................................... . iv Executive Summary ....................................v Basic Socioeconomic Data .................................... xii Education Glossary .................................... xiii 1. ECONOMIC AND SOCIAL BACKGROUND ..................................1 2. THE EDUCATION SECTOR ....................................3 A. Sectoral Overview ....................................3 B. Sectoral Issues in Education ....................................5 C. The Government's Strategy for Education ................ 15 D. World Bank and Inter-American Development Bank Roles and Assistance Strategy ... 18 E. Lessons Learned from Past Experience ................................................................ 18 3. THE PROJECT ................................................................. 20 A. Project Objectives and Scope ................................................................ 20 B. Project Target Areas ................................................................ 21 C. Project Components ................ 21 D. Project Description ............... 22 (1) Component 1 - Expansion of Access to Preschool and Basic Education .. 22 (2) Component 2 - Improvement in Education Quality ................................... 24 (3) Component 3 - Institutional Modernization and Strengthening ..................................... 28 4. PROJECT COSTS, FINANCING, PROCUREMENT, DISBURSEMENTS AND AUDITING ......................................................... 33 A. Project Costs .......................................................... 33 B. Project Financing ......................................................... 36 C. Procurement .......................................................... 37 D. Disbursements ......................................................... 42 E. Accounting and Auditing ......................................................... 44 5. PROJECT IMPLEMENTATION AND MANAGEMENT .................................................... 44 A. Borrower, Guarantor and Executor for the Project .......................................................... 44 B. Project Organization ......................................................... 45 C. Project Management ......................................................... 45 This report is based on the findings of the appraisal mission that visited El Salvador in February-March 1995. The mission was composed of Mmes./Messrs. Madalena R dos Santos (LA2HR, IBRD mission leader), Ana-Maria Rodriguez-Ortiz (R2/S02, IDB mission leader), Diane Steele (LA2HR), Charles Richter, Roberto Linares, and Emilio Cueto (IDB), Valeria Pena (LATEN), Maria Elena Anderson, Alfredo Sarmiento, (RUTA Social), Miriam Abramovay, Jose Pedro Alberti, Raimundo Arroio, Eduardo Atalah, Alain Berthier, Antonio Cintra, Beatriz Fernandez, Henry Forero, Narayan Sastry, Gabriel Schor, Alfred Wood, and Alberto Zuniga (Consultants). Daniel Artana and Thereza Lobo (Consultants) also contributed to the report. Carman Hamann, Rosita Estrada, Andrea Guedes, Patty Romero and Eleanor Schreiber contributed to the report at IBRD headquarters. The IBRD peer reviewer is Barbara Bruns (ESP). The IDB Peer Reviewer is Steve Doherty. Messrs. Edilberto L. Segura and Kye Woo Lee are the IBRD Department Director and Division Chief, respectively, for this operation. Messr. Miguel Martinez is IDB Region II Manager and Mme. Eleanor H. Howard is Acting IDB Division Chieffor this operation. D. Preparation and Review and Annual Work Programs and Budget ...................................... 47 E. Annual and Mid-Term Reviews by the Banks ..................................................... 47 F. Loan Supervision ..................................................... 49 6. PROJECT BENEFITS AND RISKS ..................................................... 49 A. Project Benefits ...................................................... 49 B. Impact on Women ..................................................... 50 C. Environmental Impact ..................................................... 50 D. Project Risks ..................................................... 51 E. Program Objective Category ..................................................... 52 7. AGREEMENTS REACHED AND RECOMMNDATION ................................................. 52 8. ANNEXES ...................................................... 55 1. Basic Data ..................................................... 56 2. Basic Education Public Financing and Financial Impact of the Project ............................ 75 3. Economic Analysis ..................................................... 84 4. Social Assessment: Summary of Main Results ..................................................... 95 5. Proposals for the Modernization of the Education Sector within the Modernization of the Public Sector ..................................................... 100 6. Prioritization of Municipios ..................................................... 102 7. Expansion of Access to Preschool and Basic Education Component ............................. 107 8. Improvement in Education Quality Component ..................................................... 1. 1 9. Institutional Modernization Component ..................................................... 121 10. Project Administration ..................................................... 128 11. Project Costs ..................................................... 129 12. Tentative Procurement Plans ..................................................... 135 13. Disbursements ..................................................... 137 14. Project Performance Indicators ..................................................... 139 15. Terms of Reference for Project Review and Supervision Schedule ............................... 144 16. Project Implementation Schedule ..................................................... 148 17. Education Projects Funded by Inter-American Development Bank ............................... 151 18. List of Documents in Project File ..................................................... 152 EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT IBRD LOAN AND PROJECT SUMMARY Borrower: The Republic of El Salvador. Implementing Agency: The Ministry of Education. Beneficiary: The Ministry of Education. Poverty: Program of Targeted Interventions. The project will be targeted to the 135 municipios in the country most in need of social services as defined by education indicators such as repetition rate, percentage of overage students and net enrollment rate, and nutrition indicators such as percent of undersized children. Amount: US$34.0 million. Terms: Variable rate US dollar single currency loan for 17 years, including a five year grace period. Financial Benefits and Risks: The Borrower has selected LIBOR-based variable rate US dollar single currency loan terms in order to improve its overall liability management and reduce its risks. It considers US dollars to be an appropriate currency for its debt management strategy, and prefers the standard country repayment terms for LEBOR-based single currency loans compared to the shorter final maturity for fixed rate single currency loans. Commitment Fee: 0.75% on undisbursed loan balance, beginning 60 days after signing, less any waiver. On-lending Terms: Not applicable. Financing Plan: See para. 4.6. Net Present Value: Not applicable. Map: IBRD No. 27213. Project ID: ES-7169 iv EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT IDB LOAN AND PROJECT SUMMARY Borrower The Republic of El Salvador. Executing The Ministry of Education. Agency Amount: US$37.3 million. Terms: Repayment in 30 years including 5¼/2 years of grace with interest at the IDB's standard variable rate (ordinary capital). The IDB's financing would be chargeable to the ordinary capital, under the Intermediate Financing Facility (IFF) subsidy, in the amount of US$37.3 million, considering that: (a) El Salvador is eligible to use the IFF under the Eighth General Increase in Resources (document AB-1683); (b) El Salvador is conducting a peace process following a period of armed conflict that ravaged the country for over 10 years; (c) a significant majority of the beneficiaries of the operation, according to conditions prevailing in the country, are poor; and (d) the program supports preschool and basic education. It is proposed that the IFF resources be used to defray up to five percentage points of the interest rate on the total amount of the loan. It is also proposed that up to 90 percent of total program costs be financed with IDB resources, since the direct beneficiaries are low- income earners. For the same reasons, it also proposed that the OC loan be granted for 30 years. Disbursement period: 5 years. Commitment Fee OC: 0.75 percent annually on undisbursed balances. Inspection and supervision: 1 percent of the loan amount. v EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT EXECUTIVE SUMMARY BORROWER AND The Republic of El Salvador GUARANTOR: EXECUTING AGENCY: Ministry of Education (MINED) AMOUNT AND SOURCE: IBRD: US$34.0 million IDB: US$37.3 million (OC under the IFF subsidy) Local counterpart funding: US$8.9 million Total: US$80.2 million IBRD Amortization period: 17 years FINANCIAL Grace period: 5 years TERMS AND Disbursement period: 5 years CONDMONS: Interest rate: IBRD standard variable rate Commitment fee: 0.75 percent annually on undisbursed balances, beginning 60 days after signing, less any waiver IDB Amortization period: 30 years FINANCIAL Grace period: 51/2 years TERMS AND Disbursement period: 5 years CONDmONS: Interest rate: IDB standard variable rate (1FF subsidy) Inspection and supervision: 1% of the loan amount Credit fee: 0.75 percent annually on undisbursed balances BACKGROUND: Following the peace accords, signed in 1992, the Government of El Salvador (GOES) committed itself to the reconstruction of the country. The achievement of peace was a prerequisite for the implementation of a series of measures in support of social and economic development, including education. The education system will play a key role in the reconstruction process because of its effects on social equity and economic growth at a time when economic globalization imposes highly competitive standards for progress. Over the last five years, the political and economic policies put into effect by GOES have put the country on a path of positive growth of GDP (6 percent in 1994) and have laid the basis for sustained growth. In that context, during the last administration vi (1989-May 1994), the Ministry of Education (MINED) began to address the problems of the education system through a number of sectoral policies. The current Government is continuing, expanding and consolidating the education sector reform measures initiated by the previous administration. Central to this strategy are the processes of decentralization and modernization. The overall objective of the current education policy is to create an education system that can be an effective tool for promoting the economic and social development of the country. OBJECTIVES: The proposed project will promote greater equity, quality and efficiency in the provision of education services by: (a) improving access to education; (b) improving education quality in both academic achievement (output) and learning environment (education inputs); and (c) strengthening the managerial, financial and administrative capacity of MINED to set policies and guidelines for the sector and deliver public education services efficiently. DESCRIPTION AND The project has been organized into three major components as COST: follows: (a) Expansion of Access to Preschool and Basic Education (US$12.5 million or 16 percent of total project costs) in 135 target municipios to provide for: (i) supporting the expansion of community-managed schools (EDUCO) including rehabilitating the school infrastructure in rural schools; and (ii) technical assistance for strengthening the EDUCO model. (b) Improvement in Education Quality (US$49.2 million or 61 percent of total costs) would contain activities that impact the quality of preschool and basic education in the country as a whole, including: (i) technical assistance for supporting curriculum development activities for preschool and basic education, designing a new student promotion system, and establishing multigrade classes in schools in rural areas; (ii) educational materials, such as textbooks, didactic materials, and classroom and school libraries; (iii) training and assistance to upgrade the skills of preschool and basic education teachers, principals and supervisors, and preparing studies to improve pre-service teacher training; and (vi) developing an education assessment system. The component would also include activities to develop a school health and nutrition program giving priority to the poorest 135 municipios in the country. (c) Institutional Modernization and Strengthening vii (US$13.3 million or 17 percent of total costs) to provide for: (i) technical assistance for a review of MINED's legal and organizational framework to increase system efficiency, to implement institutional reforms in the areas of management of human and financial resources, planning, information, evaluation, monitoring, supervision, and communication systems and to establish a staff development program to improve the capacity of administrators and technical personnel; and (ii) establishing a funding mechanism, the Pilot Basic Education Fund, to test alternative methods of providing basic education, through the municipios and non-profit private institutions, and to experiment with pedagogical and administrative innovations. This component will have an effect that will extend throughout the education sector and the country. ENVIRONMENTAL The project is not expected to have direct environmental effects, CLASSIFICATION: and has been classified as Category C for IBRD and Category II for IDB (December 12, 1994). BENEFITS: Faced with the urgent need to improve coverage and quality of basic education, the project would support the efforts of the Government to undertake a balanced process of improving equity, quality and efficiency of the school system. The project would target some resources to poor and vulnerable groups, would improve learning achievements, and promote the efficiency of resource allocation. At the same time it would strengthen the institutional capacity of MINED to provide services and to evaluate and monitor educational policies and programs. Decentralization and community participation will boost responsiveness by teachers and administrators since all will be sharing administrative responsibilities, and clarity will promote accountability at all levels. The proposed project will support the Public Sector Modernization by establishing the conditions for MIED to be an active and responsive actor in the process while being consistent with the general guidelines of the Public Sector Reform. The program will also help to identify efficient methods and procedures to deliver education services that will be a seed for future improvements within the sector. RISKS: The fiscal requirements to support the modernization of basic education will depend on the assumptions made regarding growth and real recovery of teachers salaries. Under a conservative scenario the financial viability of the program will require that public sector spending in education be increased by 0.7 percent of GNP to a total of 2.7. As noted in Annex 2 the macroeconomics and fiscal risks leading to inadequate funding are low. The Government has been adamant in declaring its commitment to fund viii the program, even under a less favorable scenario that will require an additional fiscal effort to the detriment of other sectors. Due to the comprehensive scope of the operation, the success of the program will depend upon the capacity of MINED to implement the program. MINED has proven to be one of the most dynamic ministries in El Salvador and has shown its capacity to respond to increasingly demanding tasks under the SABE Project (Strengthening Achievement in Basic Education) and the SSRP (Social Sector Rehabilitation Project). The program relies on the EDUCO model for providing services in rural areas. The expansion of EDUCO will introduce new challenges to maintain its efficiency, an adequate incentives structure, and timely responsiveness to the demands of the community. The expansion of EDUCO will also have to be matched with the revision of the incentive structure for all teachers (EDUCO and traditional) to avoid the conflict that could arise from a dual labor regime for teachers. The program addresses both issues to minimize those risks. The introduction of a new teacher incentives system, the establishment of a performance assessment system and the rationalization of MINED's staff could create political tensions between the GOES/MINED and the teachers, supervisors, principals and MINED's staff. The political support for the modernization program of MINED, the support of the Comisi6n Nacional de Educaci6n, Ciencia y Desarrollo, and the introduction of an active communication campaign will reduce the risk of a confrontation with MINED's employees. The decentralization process bears the risks of an inadequate articulation between different levels of operation. The design of pilot programs and the consideration of lessons learned in other Latin American experiences when designing the implementation process are the best ways to limit those risks. THE BANKS' The IBRD's country assistance strategy (CAS) for El Salvador, STRATEGIES: discussed by the Board on September 14, 1993 with the Second Structural Adjustment Loan, focuses on supporting the Government in meeting its critical development challenges and facilitating the transition from a wartime economy to a peaceful, more participatory society. The Structural Adjustment Loans (SAL I, Loan 3293-ES, 1991; SAL II, Loan 3646-ES, 1993), the Technical Assistance Loan (TAL, Loan 3648-ES, 1993), and the on-going SSRP (Loan 3348-ES, 1991) have been supporting Government economic reforms and the social sector strategy by emphasizing, in the long-term, the provision of targeted preschool ix and basic education which directly benefit the poor. The proposed project would be a key instrument for supporting the efforts of the Government to implement public sector reforms and to continue the strategies developed under the SSRP by increasing community participation in the basic education system. The proposed project is also in line with the IDB country strategy which was discussed during a programming mission with the Government in August 1994. This strategy, which covers 1994- 1996, was defined in the Country Programrning Paper of March 1993. Its objectives include: (a) improving social and economic infrastructure; (b) supporting economic reforms; (c) increasing IDB support to the social services; (d) protecting the environment; (e) supporting the modernization of the State; and (f) strengthening the participation of communities and women in the national reconstruction process. POVERTY TARGETING: The project would be an integral part of El Salvador's antipoverty strategy through its assistance to improve coverage and quality of basic education services for the poorest groups in the country. The Expansion of Access to Preschool and Basic Education Component and the Health and Nutrition Subcomponent, are both targeted to poor children in rural and urban marginal areas in the 135 poorest municipios of the country. The IDB's financing would be chargeable to the ordinary capital, under the Intermediate Financing Facility (IFF) subsidy. It is proposed that the IFF resources be used to defray up to five percentage points of the interest rate on the total amount of the loan. It is also proposed that up to 90 percent of IDB financed subcomponent costs be financed with IDB resources, since the direct beneficiaries are low-income earners. For the same reason, it also proposed that the OC loan be granted for 30 years. RETROACTIVE The IBRD and the IDB have agreed to finance retroactively up to FINANCING: US$300,000 each to help cover eligible start-up expenditures. For the IBRD this financing will cover expenditures made on or after March 15 1995. For the IDB this financing will cover expenditures six-months prior to Board approval. ADVANCES: Given the degree of preparation and the proposed implementation plan, it is recommended that an advance equivalent to 10 percent of the proposed IDB loan be approved to assist the Government to implement project activities during first 120 days. The fund would be replenished upon presentation by MINED of the required documentation. PROCUREMENT: All procurement will be undertaken by a procurement agent. The benefits of using a procurement agent are consequence of (i) MINED's limited capacity to manage extensive procurement x procedures simultaneously; and (ii) the technical support provided to the MINED on a daily basis resulting from a procurement agent's experience in the implementation of projects financed by international donors. The IDB would finance all construction and rehabilitation works. All civil works contracting would be managed by FIS which has proven experience in this area and is also familiar with IDB procurement norrns and procedures since it has been the recipient of four IDB loans. SPECIAL At negotiations, agreement was reached: (a) on the schedule and CONTRACTUAL terms of reference for the modernization of MINED; (b) that the CONDITIONS: required funds for incremental teacher salaries as established in the annual work plans review would be included in the MINED budget for the following year; (c) on the IBRD Special Account and on retroactive financing; (d) on appointment of key project technical and administrative staff and/or consultants and their terms of reference; (e) that MINED would: (i) conduct, jointly with MICDES, IBRD and IDB, annual project implementation reviews; and (ii) submit to the Banks annual progress reports on the implementation of the project in accordance with targets established in previous annual work and investment plans; (f) that: (i) the in-depth mid-term review would cover all aspects of project implementation and be conducted jointly by MINED, MICDES and the Banks, and (ii) on the basis of this review, action plans, satisfactory to the Banks, would be prepared and initiated by January 1, 1999; and (g) on the Development Objectives for the project. During negotiations: (a) a signed agreement (convenio) with FIS to guarantee the timely construction of new schools was presented (para. 3.7); and (b) a letter signed by the Minister of Finance, acceptable to the Banks, assuring the Borrower's commitment to provide the required funds for the project including an annual increase in the education ordinary budget was received (para. 6.6); As a dated covenant, the borrower will: (a) select the local university/research center to develop the education assessment system no later than January 30, 1996 (para. 3.21). As conditions for IBRD loan effectiveness: (a) the OPCI action plan will be completed to the satisfaction of both Banks (para. 4.8); (b)the Government will present evidence that the Revolving Fund had been created (para. 4.9); (c) the Operational Manual, satisfactory to both Banks, will be put in use (para. 4.10); and (d) a signed contract with a procurement agent would be presented xi (para. 4.11); and (e) final bidding documents, and consultant invitation packages will be put in force (para.4. 11). Conditions for IDB Board presentation: (a) MIED will present a satisfactory draft of an agreement between MINED and UNDP (para. 4.23); and (b) key technical and administrative staff and/or consultants and their terms of reference would be presented (para. 5.6). Conditions for IBRD disbursement: (a) for the Institutional Modernization and Strengthening component, MINED will present the work plan for the staff development activities (para. 3.28(f)). Conditions for IDB disbursement: (a) for the Expansion of Preschool and Basic Education in Rural Areas subcomponent, MINED will present assurances of the continuance of the school maintenance program for rehabilitated schools (para. 3.9); (b) for the Basic Education Program Fund subcomponent, the Operational Manual for the Fund, including the eligibility criteria, will be agreed with the Banks and put in place by MINED (para. 3.33);(c) the OPCI action plan will be completed to the satisfaction of both Banks (para. 4.8); (d) an agreement between the borrower and the executing agency to transfer resources from the loan (para. 5.1); and (e) evidence of the establishment of the Management Modernization Unit and the Quality Improvement Unit in the Project Management Office (para. 5.6). xii EL SALVADOR BASIC SOCIOECONOMIC DATA . . -. .Ee EiEi . .. i-EEE EE.:. . :. f . -E-:E- E :.. . .. . . ............ ... ....... . . ....... s....... . . . ... ......iEEE iE .So,i S, tas ti stcsi:l:0f ::0'0i.A:;i-Tj0TCE;A::f::00gt00.7f;--SS'0:'ltVtt00,0: Land Area (Km2) 1994 20,935 Population (Thousands) 1994 5,641 Population (Average Annual Growth Rate (%)) 1985-1994 1.9 Rural (Percent) 1994 52.7 Density (Population per Km2) 1994 269.5 Vital Statistics Crude Birth (Rate per 1,000 Population) 1992 33.4 Infant Mortality (Rate per 1,000 Live Births) 1992 40.0 Crude Death (Rate per 1,000 Population) 1992 6.9 Life Expectancy at Birth (Years) 1992 66.3 Illiteracy (Percent) 1990 27.0 Primary School Enrollment Rate 1993 83.1 .Exchange Rate (Colones/US$) March 1995 8.8 .GDP per Capita (Average Annual Growth Rate) 1985-1994 1.6 !Labor Force (Thousands) 1992 2,306 Unemployment Rate (Percent) 1994 7.2 lConsumer Prices (Twelve Month Variation) March 1995 8.8 NF Public Sector Overall Balance (% of GDP) 1994 -0.6 |Domestic Credit (% of GDP) 1994 30.6 XBalance of Payments (Millions of US $) | Current Account Balance 1994 -18 Trade Balance 1994 -1,220 Capital Account Balance 1994 161 Change in Reserves (- Increase) 1994 -143 Total External Debt (Millions of US$) 1994 2,245 Total Debt Service (Millions of US$) 1994 345 Debt to GDP Ratio (Percent) 1993 28.9 DebtiServiceuRation(Percent) 1994 25.95 Statistics and Quantitative Analysis Integration and Regional Programs Department Inter-American Development Bank 15 May 1995 xiii EDUCATION GLOSSARY Completion Rate For nine-year basic education, the ratio between the number of students exiting grade 9 in a given year T and the number of students entering grade 1 in year T-9 as a close approximation of the percentage of students of a given cohort to complete nine year basic education. Dropout Rate Percentage of students who abandon the system without completing the education cycle. Education Attainment Number of formal schools years achieved by a student. Educational Achievement Magnitude achievement in any subject area, generally measured on the basis of national curriculum learning objectives. Enrollment Rate Percentage of children of any age group or a given age group enrolled in their corresponding grade level. Gross Enrollment Rate Percentage of children of any age group enrolled in a grade level. Percentages may be more than 100 because some pupils are younger or older than the standard school age. Incomplete School School with fewer than the official number of education grades. Multigrade Classroom A classroom where children of several different grades are taught by one teacher. Net Enrollment Rate Percentage of children of a given age group enrolled in their corresponding grade level. Promotion Rate Percentage of students enrolled in a given grade who enroll in the next higher grade the following year. Repetition Rate Percentage of students enrolled in a certain grade who are not promoted to the next grade and who enroll again in the same grade the following year. I EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT STAFF APPRAISAL REPORT INTRODUCTION 1. At the request of the Government of El Salvador (GOES), the World Bank (IBRD) and the Inter-American Development Bank (IDB) have worked together to assist GOES in designing a project to continue their efforts in improving the quality of education and the delivery of education services. The following document is one of the first efforts between the IBRD and the IDB to prepare a project using a single document. This document was written by members of both Banks and combines the elements of documents needed to comply with the requirements of each Bank. 2. The first chapter presents information on the economic and social context of El Salvador and Chapter 2 provides an overview of the education sector. Chapter 3 is a detailed description of the project components and subcomponents. Chapter 4 provides information on project costs and the mechanisms to be used for procurement, disbursement and auditing. Chapter 5 describes project implementation and management. The final chapters summarize information on the beneficiaries, the risks, and the agreements needed to proceed with the project. Annexes provide specific details on education statistics and the project components and subcomponents. An economic analysis and social assessment were done to better assess the risks and benefits of the project. These are presented in Annexes 2, 3 and 4. 1. ECONOMIC AND SOCIAL BACKGROUND 1.1 Following the peace accords, signed in 1992, GOES committed itself to the reconstruction of the country. The achievement of peace was a prerequisite for the implementation of a series of measures in support of social and economic development, including education. The education system will continue to play a key role in the reconstruction process because of its effects on social equity and economic growth at a time when economic globalization requires a highly competitive labor force. 1.2 Afder a twelve-year war and a 50 percent reduction in social expenditures as a proportion of GDP during the 1980s, more than two-thirds of the population was poor in 1991. Despite substantial improvements since the end of the war, poverty and inadequate social services are still widespread. Raising social sector expenditures and modernizing inefficient public sector institutions are major challenges faced by the Government as it strives to achieve better social indicators while maintaining sound fiscal policies. 1.3 Over the last five years, the political and economic policies put into effect by GOES have put the country on a path of positive growth of gross domestic product (GDP) (6 percent in 1994) and have laid the basis for sustained growth. Under stable economic conditions, the 2 Government's economic and social strategy sets the alleviation of poverty as the principal social objective. The plan calls for progress toward a long-term objective of establishing a national network of basic social services that assures access to all the population, especially to the most vulnerable groups. It places special attention on human capital formation (especially for education, health and nutrition), the well-being of the poorest groups, basic infrastructure, community development and the monitoring and evaluation of social programs. As part of this strategy, the Government implemented an IBRD-supported US$35.6 million Social Sector Rehabilitation Project (SSRP, Loan No. 3348-ES, 1991) which was designed to enhance the public sector's capacity to manage and deliver health and education services efficiently by supporting institutional reforms, increasing the flow of funds to the social sectors, and improving basic social services for the poor. 1.4 As another key element in the social plan, the Government instituted the Social Investment Fund (Fondo de Inversi6n Social - FIS) in 1990. This agency is responsible for approximately 5,000 small investment projects which have benefited 60 percent of the poor population in the majority of the country's municipios. The FIS has distinguished itself as an agency capable of rapidly, efficiently and transparently channeling resources to the needy population through small- scale contracts, with the ample participation of community groups. By July 1994, the FIS had built or repaired 4,000 classrooms and supplied 200,000 desks. It implemented 250 water projects, in and near urban areas, benefiting about 160,000 persons (over 3 percent of the country's population). In its first three and one-half years of operation, the FIS has been supported by UNDP, UNICEF, the Government of Japan, the German Credit Institute for Reconstruction (Kreditanstalt fur Wiederaufbau - KfW) and the IDB. IDB's support in four consecutive loans sums to US$153 million (Loans 861/SF-ES, 905/SF-ES, 765/OS-ES, 829/OC- ES). 1.5 During the last administration (1989-May 1994), the Ministry of Education (MINED) began to address the problems of the education system through a number of sectoral policies which included: (a) re-allocating public education resources to favor preschool and basic education for the population living in the poorest areas of the country (especially in the countryside and in urban squatter settlements); (b) the development of non-formal education for adults; (c) improvement in the basic education curriculum; (d) decentralization of education services as a means to improve the efficiency in the use of resources; and (e) the participation of nongovernmental organizations (NGOs) and other private organizations in the execution of cultural and educational programs and projects. 1.6 The new administration, which came to power in June 1994, will continue the reforms initiated by the previous administration, and requested that the two Banks finance the proposed project. The proposed project would support the reform program by: (a) expanding basic education services through alternative delivery means targeted to the most disadvantaged population; (b) improving the quality of basic education services; and (c) further strengthening the institutional capabilities of MINED to plan and manage the delivery of social programs in a decentralized manner by incorporating new areas in the reform. 3 2. THE EDUCATION SECTOR A. Sectoral Overview 2.1 Since 1989, GOES has made great progress in rehabilitating the critical status of the education system which was severely affected by the war. The education sector has been developing a set of programs to shape the education reforms considered essential to the building of a new society in the country. With the education strategies adopted by the 1989-1994 administration, preschool education offered by the public sector for 4 to 6 year-old children has increased significantly from 15 percent in 1989 to 35 percent in 1993. The total enrollment rate for grades I to 6 has increased from 76 percent in 1989 to 83 percent in 1993. The current Government is continuing and consolidating the education sector reform measures initiated by the previous administration (see paras. 1.5-1.6). In addition, it is expanding reforms in new directions, emphasizing the provision of services to the poor. Sector Organization and Administration 2.2 Organization. The formal education system consists of one year of preschool, nine years of basic education, three years of secondary education, and higher education with courses of two to six years. Basic education starts at age seven and is organized in three cycles of three years each. The first cycle contains grades 1-3, the second contains grades 4-6 and the third contains grades 7-9. Secondary education, grades 10-12, is diversified and prepares students for the Bachillerato diploma in any of the following specialized programs: academic, business administration, home economics, industrial, vocational arts, agriculture, hotel catering and tourism, navigation and Table 1. El Salvador School System, 1993 STUDENTS NET NUMBER NUMBER TOTAL PUBLIC AGE ENROLLMENT OF OF LEVEL ENROLL (%) GROUP RATE (%) TEACHERSa SCHOOLS" Preschool 126,048 73 4-6 35 2,367 1,406 Basic - Grades 1-6 863,478 88 7-12 83 18,967 3,349b Grades 7-9 205,226 79 13-15 32 5,004 Secondaryc 105,093 50 16-18 18 1,334 180 1igherc - Tech/Voc. 4,341 25 19-21 667 30 University 81,773 32 19-23 598d 37 a Public only. b Includes all basic education schools, grades 1-9. c Harvard Study. Data for 1992. d Full-time professors. Sources: Annex 1, Tables 1, 2, 3, 4, 7; "Diagnostico del Sistemna de Desarrollo de Recursos Humanos de El Salvador" (Harvard Study). fishery, health, and teacher training. Higher education is offered in two forms, technical/ vocational and academic, through 30 technical institutions, a national university, and 36 private universities. 2.3 Administration. The main institution in the education sector is NINED which is responsible for administering all levels of education, except universities, and monitoring the 4 private sector provision of services (see Annex 9 for organigram). Except for the national university, which receives resources directly from the national budget, administration is highly centralized with programming and administrative and financial management all concentrated in the central office. Adult education and vocational education are administered by the Directorate of Adult Education in MINED through private institutions like the Fundaci6n Empresarial para el Desarrollo Educativo (FEPADE), Instituto Salvadoreno de Formacion Profesional (INSAFORP) and NGOs. The National Council for Culture and Art (Consejo Nacional para la Cultura y el Arte - CONCULTURA), created in 1992 as a decentralized unit of MINED, was put in charge of watching over the preservation, development and dissemination of the cultural patrimony of El Salvador.' 2.4 With the support of the SSRP, MINED developed and implemented a decentralized model of services provision in rural areas, the Community-managed Schools Program (Educaci6n con Participaci6n de la Comunidad - EDUCO), which transferred the management of schools to communities. This innovative program, based on the direct involvement of parents and members of the community, and institutional strengthening activities at the central and regional levels, promotes the participation of rural communities in defining and administering education. The Community Education Associations (Asociaciones Comunales para la Educaci6n - ACEs) have been instrumental in promoting community participation not only in educational matters, but also in matters concerning the community as a whole. Under the program, ACEs are organized by communities, and are the key management mechanism for program operation at the local level. MINED transfers funds to the ACEs who are responsible for: (a) managing the schools; (b) selecting (qualified) teachers, and hiring and dismissing them; (c) maintaining the infrastructure and furnishing the schools; and (d) negotiating with the different Government agencies and/or international agency programs to obtain funds for improving the school program. Additionally, they interact with supervisors to maintain adequate communication with MINED. 2.5 In 1993, there were approximately 27,700 teachers for preschool, basic, and secondary education in El Salvador (see Annex 1, Table 7). These are divided into three categories: (a) Docente I teachers who are prepared to teach preschool and grades 1 to 6; (b) Docente II teachers who are prepared to teach grades 7 to 9; and (c) Docente III teachers who are prepared to teach secondary education. Although teachers are categorized by Docente level, they may not be teaching at the level in which they are categorized (see para. 2.26). MINED employs 5,520 technical and administrative personnel, 38 percent assigned to posts outside San Salvador, to administer traditional education services throughout the country. The existence of regional offices does not represent effective decentralization. Local staff activities are limited to a passive follow-up of decisions taken at the central level. The only outstanding exception to centralization is the EDUCO program where decentralization is effective through the administrative support of the ACEs. 2.6 The National Teacher Organization (ANDES) is strong in El Salvador. Although membership is not obligatory, the majority of traditional teachers, and some EDUCO teachers, belong. ANDES has been participating with MINED in the definition of the education reform.2 MINED is also responsible for the preservation of the national patrimony, which includes parks and the zoo, and for the so-called cultural extension executed by 100 "houses of culture" (casas culturales). 2 There is no formal trade union with legal support for collective labor negotiation, but the organization acts and performs as a trade union. 5 2.7 Teacher salaries, in real terms, have steadily declined since 1980. The purchasing power of a teacher's wage in 1992 was 32 percent of its level in 1980. Per capita income rose 5.4 percent between 1984-92, while teacher wages fell 50 percent in the same period. The apparent benefits of the reduction of the economic burden of providing education is illusory. Quality standards drop and absenteeism increases. By reducing the number of teaching hours, teachers adjusted the real salary by quantity and quality to offset the drop in wages. Gender in Education 2.8 El Salvador has advanced significantly towards gender balanced educational attainment. At the preschool level, female enrollment is 50.2 percent (see Annex 1, Table 17). In basic education and secondary education, female students slightly outnumber male students with 51 percent and 54 percent, respectively. Female students also outnumber their male counterparts in post-secondary technical education where 58 percent of the enrollment is female, but in post- secondary academic education, male students (52 percent) outnumber female students (48 percent). A recent study jointly prepared by the IBRD and IDB3, shows that place of residence and income level are more significant determinants of literacy than gender (see Table 2). There are, however, four women's issues in education that have not been resolved: teenage pregnancy; women's narrow preferences for careers and fields of study; lower rates of return on education for women; and gender stereotypes in textbooks. Gender stereotyping is closely related with preschool and basic education. The Ministry has taken steps toward eliminating sex-role modeling in the textbooks for grade 1 through 4. The proposed project will continue these efforts by removing gender stereotyping from textbooks and other classroom materials (see also paras. 2.24 and 3.14). Table 2. Jllitera Rates by Income Decile and Gender --- Income Urban Rural Deciles Male % Female % Male % Female % First 26 33 48 50 Tenth 3 8 25 28 % Difference 8.67 4.13 1.92 1.79 Source: Ministry of Planning, 199 1-1992 Household Survey. B. Sectoral Issues in Education 2.9 The Salvadoran education indicators reveal an education system with interrelated problems causing poor system performance. The main education sector issues are: (a) low internal efficiency; (b) insufficient access to education; (c) unsatisfactory education quality in both academic achievement (output) and learning environment (education inputs); (d) weak managerial and administrative capacity; and (e) inadequate financing of the sector. 3 'El Salvador - Moving to a Gender Approach in El Salvador: Issues and Recomendations," joint study by the IBRD and IDB. 6 2.10 To better understand education issues, a Social Assessment was undertaken (see Annex 4) to consider the perceptions of the stakeholders - MINED, teachers, parents, students, etc. The provision of well-organized information on the public perceptions of the education sector has been an especially useful tool for MINED in the process of changing the provision of public education services to rely more on community participation. The lack of regular communication channels transformed the Social Assessment into an unintended communication mechanism for education reform and helped the Banks in the fine tuning of the design of project components. Low Internal Efficiency 2.11 Late entrance to school, the existence of a large number of 'incomplete" rural schools not offering at least the full first two cycles of education, and high repetition and dropout rates in basic education have the greatest impact on the education system's internal efficiency. 2.12 Late entrance to schooling. Fifty-three percent of urban students and 67 percent of rural students enrolled in grades I to 9 are over the age expected for the grade in which they are enrolled (Annex 1, Tables 3 and 4). In 1993, the 1 st and 2nd cycle gross enrollment rate, in urban schools, was 113.6 percent and the net enrollment rate was 89.6 percent. A similar situation occurred in rural schools where the gross enrollment was also significantly higher than the net enrollment in the same grades, 101.9 percent and 77.3 percent, respectively (Annex 1, Table 2). In El Salvador, the main reasons for late entrance to school include: (a) absence of services during the war years; (b) ignorance on the part of parents about the benefits of schooling; and (c) low levels of family income which: (i) prevent parents from being able to afford the costs of sending their children to school; and (ii) require children to work in order to augment the family income. Late entrance in school, particularly in the rural areas, has provoked the overage phenomenon and age heterogeneity in the classroom. Age heterogeneity in the classroom without the use of appropriate methodologies can have an unfavorable impact on overall academic achievement. Available data show that late entrance, however small, increases repetition rates and decreases the completion rates of basic education. The introduction of preschool education is one of the most effective ways to promote prompt entrance of students. The proposed project will have a positive effect in increasing internal efficiency by expanding the coverage of preschool (para. 3.6). 2.13 Incomplete basic education schools. Too frequently public schools do not offer education services for the entire basic education cycle. According to a recent survey4, almost all schools cover the 1st cycle, but only 80 percent cover the 2nd cycle, and 50 percent cover the 3rd cycle. The deficiencies are more severe in rural areas. The existence of these incomplete schools keep many student from completing their basic education. The expansion of coverage provided in the proposed project will cover preschool through grade 6 (para. 3.7). 2.14 Repetition and dropout rates in basic education. Repetition rates for basic education range from a high of 22 percent in 1 st grade in the Central Region to less than one percent in the 9th grade in all regions (Annex 1, Table 6). Repetition rates in grades 1 to 3 are slightly higher in EDUCO schools where late entrance to school is a more frequent phenomenon than in traditional 4 Diagn6stico del Sistema de Desarrollo de Recursos Humanos de El Salvador. 1994. (Harvard Study) Report for the Harvard Institute for International Development in collaboration with Fundaci6n Empresarial para el Desarrollo Educativo, Universidad Centroamericana Jose Sime6n Cafias. 7 schools (17 percent and 15 percent, respectively). At the national level, many students repeat more than once and eventually drop out of school. Preschool education has proven to be an effective method to reduce repetition rates in higher grades. Through the expansion of preschool coverage, the proposed project will help to reduce repetition rates (para. 3.6). 2.15 Because of repetition and dropout, completion and promotion rates are very low. The cumulative effects of late entrance, repetition and dropout, and incomplete basic schools, mean that only 47 percent of the initial student cohort finish the first two cycles of basic education, and only 33 percent finish the 3rd cycle.5 On average, members of the urban population who are 15 years of age or older have completed 7 years of schooling. In rural areas, on average, only 2.8 years of school have been completed. 2.16 Repetition in grades 1 to 9 adds approximately 23 percent to the cost of producing a graduate.6 It is estimated that repetition adds to the system some US$37 million in additional costs each year. In addition to the financial costs, these inefficiencies are costly in terms of lost human capital, and they compound the difficulty of addressing problems of low coverage and quality. The proposed project will address issues of efficiency in a comprehensive way through a series of actions to improve the quality of education services provided by MINED. It is important to emphasize six actions that will have a direct impact on repetition rates and are considered in the proposed project: (a) the revision of curriculum to meet the needs and interests of the rural school population (para. 3.13); (b) the expansion of preschool coverage (para. 3.6); (c) the development of a multigrade program in rural areas that introduces the flexibility required in rural environments (para. 3.13); (d) the establishment of a new promotion system for students, allowing for automatic progression within cycles (para. 3.21); (e) the development of a nutrition program targeted to the poorest schools in rural areas (para. 3.23); and (f) the promotion of an active participation of parents in school management (para. 3.1 1). Insufficient Access to Education 2.17 Access to education varies depending on the part of the country in which the person lives, and is hindered by lack of sufficient infrastructure. It is also heavily dependent on the level of income of a student's family. Children from the poorest households not only have less opportunity to enter school, but also enter at a later age, and stay less time in school, than do children from families with more economic resources. Education figures show that by 1993, only 24 percent of children aged 4-6 attended preschool in rural areas, compared to 46 percent of students the same age in the urban areas. At the same time, only 56 percent of children between the ages of 7 and 15 were enrolled in basic education in rural areas, compared to 77 percent of the same age group in urban areas (Annex 1, Table 2). Although low, the levels of rural enrollment have increased because of the EDUCO program. Despite its success in increasing enrollment, problems remain in regards to the ACE management capability. The proposed project will include measures to increase ACE efficiency with the support of NGOs and other private organizations. 2.18 Regional characteristics play an important role in explaining differences in access. These differences are a result of the priority given by the Government and other donors to regions 5 Ibid. 6 Ibid. 8 affected by the war, and to population increases caused by migration to the Central Region. The Central Region has the highest gross and net enrollment rates for both preschool and basic education (see Annex 1, Table 5). 2.19 Another factor affecting access to schools is inadequate infrastructure. Many existing schools need rehabilitation, and lack equipment and furniture. Based on the results of the microplanning/microlocation exercise7 the proposed project will include measures to promote the construction of new sections in areas presenting infrastructure deficits and to rehabilitate rural schools. Under the proposed project, MINED will work together with the FIS to increase and rehabilitate infrastructure following MINED's infrastructure (see para. 3.7). Low Quality of Education 2.20 The low quality of education in El Salvador has been caused primarily by: (a) deficiencies in the provision and the quality of textbooks, and in the curriculum on which they are based; (b) lack of supplementary educational materials; (c) inadequate teacher training programs; (d) insufficient student achievement evaluation; (e) lack of systematic pedagogical supervision; and (f) the precarious nutritional status of the preschool/basic education age population. 2.21 Textbooks and curriculum deficiencies. Studies show that there are deficiencies in basic education textbooks and instructional materials in schools throughout the country in terms of the number of textbooks provided, the quality of the texts, and the curriculum on which they are based. A recent evaluation study8 shows that only 44 percent of the teachers in traditional schools and 31 percent of the teachers in EDUCO schools surveyed indicated that each of their students had their own textbooks. Forty-three percent of traditional school teachers and 31 percent of EDUCO teachers indicated that their students had no textbooks.9 Since 1991, with the support of the Strengthening Achievement in Basic Education Project (Solidificaci6n del Alcance de la Educaci6n Bdsica - SABE) (see para. 2.52), MINED has provided textbooks to urban and rural students (grades I to 3) to use for the school year at no charge. With MINED funds, a limited number of textbooks produced under SABE has been printed and distributed to urban and rural students in grades 4 to 6. However, because the SABE project is phasing out and the amount of MINED funds for textbooks is limited, there are not enough books to cover all students in those grades. Textbook deficiencies can be particularly significant when teachers themselves lack mastery of the material, and when students lack supplemental learning opportunities in the home or at the school, mainly when the environment is not conducive to formal learning as in rural areas. Current textbooks lack complementary teaching materials relevant to the rural areas. In this environment, an improved curriculum and textbooks may be the most cost-effective means to improve learning. No cost-recovery policies on textbooks and/or teaching materials has so far been implemented by the Salvadoran authorities, but the current administration has agreed to study and consider cost-recovery schemes. The proposed project wvill include measures to Under the SSRP, an intensive survey of the existing education infrastructure has been undertaken to determine the costs for providing infrastructure, the amount of rehabilitation required for existing infrastructure, and the areas where services are needed. 8 World Bank. 1994. 'El Salvador - Community Education Strategy: Decentralized School Management" (EDUCO Study). Report No. 13502-ES. Country Department II, Human Resources Operations Division, Latin America and the Caribbean Regional Office, Washington, DC. 9 The rest of the teachers indicated that their students shared textbooks. 9 establish universal provision of textbooks to students in basic education, and will support the establishment of textbooks cost recovery policies ( paras 3.15 and 3.16). 2.22 Rural student absenteeism is related to inadequacies in curriculum plans and the school calendar, and is also connected to low internal efficiency. MINED has devoted time and effort to rethinking the curriculum for basic education in general and for rural students in particular. In addition, the school calendar in the rural schools needs to be organized taking into account the demand for family labor. Such an adjustment is be expected to relieve parental pressure to pull children, particularly boys, out of school at times when their labor is in high demand. The proposed project will include measures to increase the provision of textbooks and to adapt the curriculum to rural areas (paras. 3.13, 3.15). 2.23 Multigrade methods in rural areas have been considered an important pedagogical method to improve the provision of education.'0 However, teachers must learn how to deal with this situation on the job. Building on the strong participation of the community in the school activities under the EDUCO program, the proposed project will support, where necessary, the adoption of multigrade approaches in the rural schools to improve quality of learning and solve traditional problems of rural students (para. 3.13). Instructional materials, in-service teacher training, school administration, and community participation will be integral parts of the model to be adopted by the rural schools, first on a pilot basis. UNICEF would support the pilot experience before expansion to a large number of rural schools. 2.24 Textbooks and zender issues. As in many countries, textbooks used in El Salvador tend to foster and support gender stereotypes. Women are typically depicted in jobs consistent with traditional nurturing roles. MINED has acted to counter negative gender-based stereotyping through efforts funded by UNICEF/UNIFEM and USAID, but results have been only partially achieved. An IBRD/IDB study on textbooks indicates that in the revised texts for grades I to 6, although illustrations were more gender balanced, texts continue to portray predominantly male characters, and women continue to be depicted in a traditional context."1 The proposed project includes measures to counteract gender stereotypes both in curriculum and textbooks (para. 3.14). 2.25 Lack of supplementary educational materials. In addition to the lack of textbooks, schools lack supplementary educational materials such as globes, maps, charts, educational toys, supplemental texts, and workbooks. Likewise, more costly but effective resources, such as libraries, classroom reading resources, science kits, and computers, are rarely in evidence. The above situation is more acute in the rural and marginal urban schools. Under the SABE project (para. 2.52), MINED started to develop an educational package program (canasta bdsica) with basic educational materials for grades I to 6. However, more needs to be done to make a more extensive provision of these materials and supplementary teaching/learning materials to all basic education schools and students. The provision of instructional materials is also considered by teachers as a key incentive for teaching as noted in the Social Assessment (see Annex 4). The 1 For example, Escuela Nueva in Colombia. 'El Salvador - Moving to a Gender Approach in El Salvador: Issues and Recommendations,"joint study by the IBRD and IDB. 10 proposed project will include measures to increase the provision of instructional materials to preschool and basic education schools through the canasta blsica (para. 3.15). 2.26 Inadequate teacher training. Teacher pre-service training specifically for preschool education or the early years of basic education barely exists in El Salvador. Most Salvadoran basic education school teachers are graduates of universities and have been prepared to teach the upper grades of the basic education cycle. As a result, most teachers lack the pedagogical skills needed to foster effective interaction with students in the lower grades, make the best use of the textbooks and instructional materials, and identify and orient students with learning disabilities. Therefore, they are most in need of training because of: (a) their lack of previous teacher training preparation; (b) the general lack of systematic supervision; and (c) the added difficulty of handling multigrade classes. The proposed project will include measures to establish a systematic in- service training system for all teachers in preschool and basic education and funds for assessing the pre-service training system, currently administered by the private sector, which will recommend policy options to improve the basic education pre-service training programs administered by the private sector (para. 3.16). 2.27 Insufficient student achievement evaluation. MINED has only recently started to apply achievement tests to measure the learning status of students in the education system. Under the SABE project, MINED began using achievement tests to assess the impact of the new core curriculum for grades 1-6. However, the results of this exercise showed that MINED's resources and capacity are too limited to monitor and evaluate academic achievement and standards of teaching across the country and in the different modalities of education services provided. There is a need to create in MINED the '"ulture" of evaluation to support education policy options regarding teacher training, textbooks and instructional materials. The proposed project will include measures to improve the institutional and technical capacity in El Salvador for monitoring student achievement as a tool to increase education efficiency and accountability (para. 3.21). 2.28 Lack of systematic pedagogical supervision. The education supervision system, which had disappeared during the armed conflict, was reorganized in 1990. Since the system was re- established, school supervisors have played an important administrative role in the implementation of the EDUCO program. However, they have not been able to provide pedagogical support and guidance to teachers in either system, traditional or EDUCO. Inadequate supervision mechanisms, unclear assignment of activities, and low technical preparation, are factors impeding the better performance of the supervisors and their contribution to improving school and teaching efficiency. The proposed project would support activities to re-orient the supervision system in the direction of providing technical support to teachers and school principals, disseminating results of education program evaluation, and giving feedback to correct shortcomings in the education process. To increase the professional capacity of the supervisors, the proposed project will seek to achieve a qualitative change in the supervisors functions by increasing the time employed in monitoring teaching activities and by reducing their strictly administrative responsibilities (para. 3.28(d)). 2.29 Children's low nutritional status. Hunger and malnutrition diminish the physical and mental capacity of poor children. Protein-energy malnutrition and the lack of certain micronutrients, especially iodine and iron, reduce learning capacity and academic achievement. Deficiencies of vitamin A and iron also reduce resistance to infections which can increase 11 absenteeism. In addition, research shows that children who go to school without breakfast have difficulty in concentrating, and perform less well than children who have had breakfast. This effect is greatest in children who are also malnourished. School nutrition and health programs to alleviate hunger and malnutrition can complement other efforts to improve the quality of basic education, and contribute to improving the efficiency and effectiveness of the education system. 2.30 According to the first height-for-age census of first grade school children conducted in 1988, one-third of Salvadoran children in first grade are malnourished. In the least developed municipios 2, the prevalence of malnutrition rises to half the children. A Ministry of Health (MOH) study conducted in 1994 corroborates the results of the census. It showed that 61 percent of preschool children in the least developed municipios are malnourished. 2.31 Goiter (an enlarged thyroid gland caused by a lack of iodine) affects 25 percent of children between the ages of seven and 14. The problem is especially severe in the Western region where, on average, 40 percent of the school age children are affected (Annex 8). Goiter is higher in girls than in boys (28 percent versus 21 percent) and also higher among children aged 10 to 14 years old. MOH has initiated a program to fortify salt with iodine, however, it will take several years, at least, before fortification can alleviate iodine deficiency in the country. The consequences of iodine deficiency can be most severe and irreversible when experienced in utero, causing, for example, mental retardation and deafness. School-aged children deficient in iodine perform worse on tests of intelligence and other tests of learning capacity compared to iodine-replete children. Iodine deficiency is also linked to impaired hearing in school-aged children. 2.32 The lack of vitamin A is a widespread problem in El Salvador. All of the studies over the last 40 years have shown that more than 70 percent of infants consume inadequate amounts of vitamin A, especially in rural areas. A study conducted in 1994 showed that 99 percent had insufficient consumption of vitamin A. Blood tests among preschool children show that 40 percent are deficient. The MOH has embarked on a program to fortify sugar with vitamin A. So far the coverage of this program is low. It will take several more years before this program can alleviate vitamin A deficiency. 2.33 Anemia from a lack of iron affects a large proportion of the population in all developing countries. A sample study with teenagers done in 1988 indicated that 51 percent suffered anemia. There is no updated and systematic information about iron deficiency, but the accepted estimate is half of the school population. It affects physical capacity, achievement and immunity. Children deficient in iron are less alert and attentive, less motivated, and perform less well on tests of development and school achievement. Controlling this problem can be achieved through the fortification of foods (flour, cookies, drinks) and provision of iron supplements. 2.34 In regions with deficient sanitary conditions, half or more of children suffer from parasitic infections. These infections reduce appetite, increase the risk of anemia, in some cases, and cause absenteeism because of diarrhea. They also independently contribute to poor school performance by diminishing a child's ability to pay attention and concentrate. Broad spectrum single dose drugs, effective against several species of worms, are now available to treat helminth infections. 12 A municipio is the second administrative level of the govermmental system. The levels, in order, are: departamento, municipio, cant6n, caseria, comunidad. 12 The proposed project will include the provision of basic nutrition supplements and health education measures, and targeted treatment activities as a highly cost-effective approach to improving children's readiness to learn via better nutrition and health (para. 3.23). Weak Managerial and Administrative Capacity 2.35 Despite the major efforts of the Government to foster an effective administration and the existence of a highly qualified group at the managerial level in MINED that is leading the education reforms, institutional weaknesses still remain. The education sector has insufficient institutional capability to strengthen and consolidate ongoing education reforms to assure efficiency, quality and equity improvements, especially among low-income areas. Overall institutional weaknesses and lack of adequate personnel policies in MINED underline much of the poor performance in the sector. These weaknesses include: (a) an inappropriate institutional organization; (b) an inadequate incentive structure for teachers and MINED technical staff, and (c) the absence of an effective communication system (within MINED and between MINED and the public) that weakens MINED's capacity to deliver its services timely and effectively. Moreover, the lack of a timely, trustworthy, and relevant management information system (MIS) has not allowed the Salvadoran education authorities to ascertain the impact of policies and activities in the delivery of the education services. These weaknesses impede MINED in effectively translating education policies and strategies into concrete programmatic actions, target resources to most needed areas, and periodically monitor achievements. 2.36 Inappropriate institutional organization. MINED's rigid and centralized organizational structure, the wide range of responsibilities, the weakness of local institutions and the complex administrative procedures are not conducive to the efficient management of education services. MINED devotes its limited management resources to a wide range of activities which lessens its efficiency and exacerbates the problem of limited management capacity. Moreover, the basic management tools - planning, information systems, and evaluation mechanisms - are almost non- existent. Under the shield of investment projects financed by external donors, MINED is able to bypass some of the rigidities of the current structure to implement more efficient practices. EDUCO is the most successful structural change in the way MINED provides education services. Based on this experience, MINED has been gradually shifting responsibilities to the regional and local levels. Other changes have happened in an unsystematic way, contributing to the lack of transparency - an inadequacy of the current structure. The problems of organization are worsened by severe personnel constraints. The degree to which improvements could be developed under the current structure are limited by the current legal framework of the education sector and further actions need to be conceived in a consistent and systematic way. 2.37 The incentive to modernize MINED and increase its efficiency is part of a much broader Public Sector Reform that has been underway and will be supported by the Banks under a Public Sector Modernization Project under preparation (Annex 5). MINED was selected as the pilot institution for reforms in the budgetary planning process that is expected to facilitate allocation and flow of funds by level of education and to regions and departments. The proposed project will: (a) build on the successful decentralization experience of MINED to develop pilot modernization programs that will subsequently be implemented at the national level; (b) strengthen the management tools available to MINED; and (c) revise the legal framework of the education sector to make it suitable for the new organization of MINED (para. 3.27). 13 2.38 Inadequate incentive structure for teachers and MINED technical staff. Deficiencies in teacher performance and low efficiency of technical staff are, in part, the result of an inadequate incentive structure for both teachers and technical staff. During the last decade, performance of traditional public school teachers decreased and absenteeism and turnover increased. This could be only partially explained by the decline in real wages. Teachers are ruled by specific regulations (Escalaf6n Magisterial) that guarantee job stability, and reward time in service and pre-qualification, but fail to compensate for work environment or to promote excellence. In addition, there are no specific criteria, based on qualifications, to select school principals. Moreover, the lack of adequate supervision restricts effective control of teacher performance. As a consequence, teacher salaries are linked more to the strength of the negotiating capacity of the organizations representing them. On the other hand, teachers under the EDUCO program are not formal employees of MINED; they are selected, hired, supervised and dismissed by the parent associations and, unlike traditional teachers, are judged by their performance. Their salaries are higher, but they do not have the job stability of regular teachers. The better attendance, performance and commitment of EDUCO teachers confirm the importance of improving the incentive structure for traditional teachers based on performance evaluation. 2.39 Despite the success of the EDUCO program in improving teacher performance, it is proving difficult in practice to hold teachers within the EDUCO system for appreciable lengths of time because they prefer to be in the official career stream which is more stable and less demanding.'3 In addition, the regular teacher organizations could obstruct the expansion of the EDUCO system if it is perceived as threatening their interests. This calls for a comprehensive revision of the incentive structure for both EDUCO and traditional teachers. A basic incentive, such as the improvement of teacher real wages, should be combined with the revision of the structure of incentives, including regulations, supervision, training, performance evaluation, and better communication with MINED. The proposed project will finance a revision of the legal framework including the Escalaf6n Docente, a strengthening of supervision, the development of a broad in-service training program and the development of a communication strategy for MINED (para. 3.28). 2.40 Performance of the technical staff at MINED is limited by low motivation and low salaries, high turn over of management and technical personnel. In the absence of adequate and defined policies for recruitment and career development, 50 percent of MINED's staff provides only administrative support and the salary structure is very flat. Consequently, although MINED offers very good remuneration and stable labor conditions for low administrative positions, it has enormous difficulties in hiring or retaining competent technical and professional personnel. To fully achieve the objectives of the education reform, a highly trained work force should be in place to carry out the decentralized processes"and systems. The proposed project will provide for technical assistance to MI4NED to revise the salary structure that will have to be consistent with the revision of the Civil Service System under the Public Sector Modernization Project. The proposed project will finance a revision of the education legal framework including the Escalaf6n Docente, a strengthening of supervision, the development of a broad in-service training program and the development of a communication strategy for MINED. It will also provide funds for the definition of new job descriptions and training programs, and for the implementation of the rationalization plan for personnel under the new structure of MINED (para. 3.28(f)). 13 EDUCO Study, op. cit. 14 2.41 Absence of an effective communication system. The Social Assessment (Annex 4), undertaken during project preparation, pointed out the severe problems resulting from MINED's lack of an effective communication policy. Within the Ministry, the general guidelines set at the highest levels do not always reach lower levels, and fragmented infornation undermnined the rapid implementation of reforms. Communication with teachers, supervisors and principals is constant but not necessarily efficient, and communication with other stakeholders has been very limited despite its proven effectiveness in the EDUCO program. Although there is a consensus that the education system should be changed, the lack of communication led to public misconceptions of GOES' plans to modernize the education sector, and prevented the stakeholders from developing a sense of ownership. The Social Assessment exercise contributed to promoting a better informed discussion of education reform between stakeholders. Based on its results, the project includes specific actions to develop a communication system within MINED, and between MINED and other stakeholders (para. 3.28(e)). 2.42 To promote a national dialogue about education and to seek a national ownership for education reform, in October 1994 the Government set up a National Commission for Education, Science, and Development (Comisi6n Nacional de Educacz6n, Ciencia y Desarrollo). The Commission was composed of 12 members who represent a wide range of political affiliations and are acknowledged for their professional capacity and strong technical skills. The Commission presented specific recommendations for the modernization of the education sector that are fully consistent with the proposed project. The Commission will continue to support MINED in the definition of further actions to improve education services in El Salvador. Inadequate Financing of the Sector 2.43 Inadequate and deficient sector financing has been caused by: (a) sharp decreases in education spending as a percentage of GDP; (b) the relative reduction of fiscal resources allocated to education; and (c) inadequate financial/management mechanisms. Education expenditure in relation to Central Government expenditure and to GDP has steadily decreased since 1981 and has only slightly increased in the last two years. Its share of GDP fell from 3.6 percent in 1981 to 2.0 percent in 1994. This is partially due to the fact that total government expenditure fell from nearly 20 percent of GDP in the early 1980s to 15 percent in 1994; however, the share of education expenditure in the Central Government budget has also declined from nearly 28 percent at the beginning of the 1970s to 14 percent in 1994 (Annexes 2 and 3). 2.44 Fiscal austerity has also resulted in a severe curtailment of investments in education. The most important investments in the last four years have been financed by international donors in projects associated with considerable technical assistance programs. Investment expenditures have been drastically reduced, and only partially executed. Since 1990, executed spending on education has fallen short of budgeted spending on education. In 1992 and 1993, the shortfall was approximately 10 percent of total spending. In contrast, recurrent expenditures have been almost fully executed as budgeted, and their share has increased to nearly 90 percent of the budget. 2.45 Cumbersome financial mechanisms impede better management of budgetary allocations. Apart from the ordinary budget, which finances most recurrent costs, El Salvador also has an 15 extraordinary budget, principally used to finance investment expenditures with external resources. The extraordinary budget, however, has expanded to cover some recurrent expenditures. As part of its macroeconomic reform program, the Government is taking measures to consolidate the two budgets. This effort will provide a better management of education funding to support decentralization and local provision of education services and to make more cost-effective decisions in the sector. Moreover, the proposed project would allow GOES to implement a vast investment program for the expansion of education services and is part of a broader effort to expand the fiscal support for the education section. C. The Government's Strategy for Education 2.46 The severe economic crisis of the 1980s, followed by a drastic fall in real per capita income and in government expenditures in education, an earthquake, and a civil war have severely impacted the performance of the education sector in El Salvador. In 1989, only 14 percent of the preschool age population and 65 percent of the basic education population were enrolled in the education system. Illiteracy among those 15 years old and over was 27 percent; in Latin America only Guatemala and Haiti had higher illiteracy rates.'4 During the war period, most education indicators held steady because of an increase in services by the private sector and foreign aid. Starting in 1989, GOES initiated policy reforms aimed at rehabilitating the public sector's capacity to manage and deliver social services, including education. 2.47 The overall objective of the education policy currently being followed by GOES is to create an education system that can be an effective tool for promoting the economic and social development of the country. This will be done by promoting the formation of human capital which will allow the recipients to reach higher levels of productivity and capacity. By promoting personal development, the level of income and the quality of life of the population will be enhanced.15 2.48 The strategy of GOES for the education sector is based on three fundamental elements: (a) the focusing of human, financial and material resources on basic education; (b) the decentralization of services and the participation of the communities; and (c) the provision of services through the private sector which are more efficiently provided by that sector.'6 The first element implies that the majority of human resources, as well as materials and financing, should be focused towards increasing coverage and improving the quality of preschool and basic education until the sixth grade. Specifically, large amounts of resources need to be directed towards those rural areas in which no education services. currently exist. 2.49 The goals for basic education in 1995-1999 include: (a) increasing preschool enrollment rates from 24.5 percent in 1993 to 40 percent in 1999 in the rural areas; (b) raising enrollment rates in the 1st and 2nd cycles from 83 percent in 1993 to 90 percent in 1999; and (c) reducing overage students in basic education from 29.2 percent in 1993 to 15.3 percent in 1999. MINED would continue involving the community in the provision of basic education services, 14 Harvard Study, op. cit.. 15 Ministry of Planning, "Plan de Desarrollo Econ6mico y Social, 1994-1999." 16 Ibid. 16 strengthening and increasing the ability of communities to organize and assume a protagonist role in the administration of basic education services. 2.50 For secondary education (grades 10-12), the emphasis will be on improving the academic skills and capabilities of the graduates in order to respond to the dynamic changes of the labor market. This will be accomplished, in part, by reforming the curriculum to respond to the requirements of the labor market and the possibility that graduates may continue their studies at higher levels. For technical education, the participation of the private sector in the administration of technical institutes will be promoted by supporting a scholarship fund for students with limited resources. Finally, as the result of curriculum reform and public/private interaction in the provision of services, higher education should produce highly qualified professionals who will be able to respond to the conditions of the modern workplace in terms of scientific and technological investigation. 17 2.51 The strategy for education is part of a larger Public Sector Modernization Action Plan which will be implemented with the technical and financial support of the IEBRD, IDB and other donors through a proposed Public Sector Modernization Project (see Annex 5). Central to the Government's strategy for education are the processes of decentralization and modernization, which include the provision of selected education services through the private sector. To support the education reform, both in academnic content and the provision of education services, the Government set up the National Commission for Education, Science, and Development composed of members of NGOs and other private organizations, universities and teacher unions (see para. 2.42). 2.52 Since 1989, priority in the education sector has been given to both preschool and basic education with emphasis on expanding coverage to rural areas through an innovative program based on direct involvement of parents and community groups, the Community-managed Schools Program (Educaci6n con Participaci6n de la Comunidad - EDUCO) (see para. 2.4). In addition to sectoral policies to address problems of access in the education system, MINED also instituted several programs to enhance the quality of basic education. Several of these programs were supported by the USAID-financed SABE Project. Under this project, curricula in basic education were redesigned up to the fourth grade. New curricular contents were established based on a diagnosis of needs, interests and problems, and were validated in more than 100 schools throughout the country. To support the new basic education study programs, textbooks and workbooks were prepared, and 1.5 million were distributed to students in grades I through 3. Training programs for teachers, school directors, and supervisors were intensified in the areas of teaching methods as well as in education evaluation and administration. 2.53 The Government's EDUCO strategy to increase education opportunities in rural areas has proven to be a good instrument for targeting education services to the poor and increasing access and quality to preschool and grades I to 3. It helped expand preschool enrollment from 2 percent of the rural preschool population to 10 percent between 1989 and 1993. The enrollment of children in the first three grades of basic education increased 6.4 percent between 1989 and 1993. Despite the lower average socio-economic status of EDUCO students compared with students in " Ibid. 17 traditional schools, EDUCO students performed on a level comparable with students in traditional schools (rural and urban), and in some cases better. Tabe 3 St~d~t Ahi~exnntScores ...._____. A |bievemni Rural Urban EDUCO Trad. Trad Preschool 51 61 74 Languagel 38 41 43 Math 1 47 38 43 Language 2 60 63 59 Math 2 44 40 44 Note: Average percent score (score/total possible). Source: EDUCO Study. 2.54 While the overall cost of the EDUCO program appears to be slightly higher than the cost of the traditional program overall, the benefits of the program seem to more than offset the higher cost involved. These benefits include providing of basic education in areas which did not previously receive education, community involvement in providing basic education services, and better control over teacher attendance and performance. EDUCO has also contributed to improved dialogue between communities and MINED, and between MINED and the international agencies and NGOs that support program implementation. 2.55 Nevertheless, despite the Government's recent efforts, the education system still faces severe problems of access in rural areas and low internal efficiency. Because of problems of internal efficiency related to repetition, on average, 10 years of instruction are required to produce a 6th grade graduate.18 Without considering the high incidence of dropping out between the 2nd and 3rd cycles (on average for 5.4 years), four years of instruction are needed to complete the 3rd cycle. 2.56 The proposed project will play an important role in supporting the Government strategy to improve equity, quality and efficiency of the school system. It will: (a) increase investments in basic education, thus helping to accumulate human capital, the lack of which is a serious constraint to growth; (b) address the needs of the poor, and contribute to a more equitable distribution of basic social services, thereby alleviating poverty; (c) improve the efficiency of using the scarce public resources through measures to strengthen MINED's institutional capacity. Additionally, the project will contribute to lowering the education flow wastage and repetition and dropout rates by improving the quality of the services through better qualified teachers, improved availability of instructional materials, -an updated curriculum, a more effective learning environment, and direct involvement of parents, teachers and the community in the management of the schools. Decentralization and community participation will boost responsiveness by teachers and administrators since all will be sharing administrative responsibilities, and transparency will promote accountability at all levels. Furthermore, the proposed project will support the Public Sector Modernization Program by establishing the conditions for MINED to be an active and responsive actor in the process, while being consistent with the general guidelines of the Government's strategy for the public sector. "' Harvard Study, op. cit. 18 D. World Bank and Inter-American Development Bank Roles and Assistance Strategy 2.57 The IBRD's country assistance strategy (CAS) for El Salvador, discussed by the Board on September 14, 1993 with the Second Structural Adjustment Loan Project, focuses on supporting the Government in meeting its critical development challenges and facilitating the transition from a wartime economy to a peaceful, more participatory society. The IBRD's strategy is to support the Government in meeting its four principal development challenges - modernizing the public sector, enabling private sector-led growth, reducing poverty and investing in human capital, and strengthening natural resource and environmental management - through a blend of adjustment lending, investment lending in selected sectors, analytical work to address sectoral issues and guide the policy dialogue, technical assistance to deepen reforms and strengthen institutions, and donor coordination.'9 The Structural Adjustment Loans (SAL I, IBRD Loan 3293-ES, 1991; SAL II, IBRD Loan 3646-ES, 1993), the Technical Assistance Loan (TAL, IBRD Loan 3648-ES, 1993), and the on-going SSRP (IBRD Loan 3348-ES, 1991) have been supporting Government economic reforms and the social sector strategy by emphasizing the provision of targeted preschool and basic education which directly benefit the poor. The proposed project would be a key instrument for supporting the efforts of the Government to implement public sector reforms and to continue government strategies for decentralization and community participation in the basic education system which were supported by IBRD under the SSRP. 2.58 The proposed project is also in line with the IDB country strategy which was discussed during a programming mission with the Government in August 1994. This strategy, which covers 1994-1996, was defined in the Country Programming Paper of March 1993. Its objectives include: (a) improving social and economic infrastructure; (b) supporting economic reforms; (c) increasing IDB support to the social services; (d) protecting the environment; (e) supporting the modernization of the State; and (f) strengthening the participation of communities and women in the national reconstruction process. E. Lessons Learned from Past Experience 2.59 The IBRD has financed four previous education projects in El Salvador. Three of these projects (First Education Project, Loan 609-ES, 1969; Second Education Project, Loan 1007-ES, 1974; and Industrial and Agricultural Training Project, Loan 1571-ES, 1978) covered such areas as: (a) improving the secondary school system; (b) establishing rural basic education schools; (c) improving the teacher training college; (d) testing a national non-formal adult training program; and (e) creating a network of non-formal training centers for agricultural and industrial workers. The SSRP (see para. 1.3 ), funded in 1991, supported the development of EDUCO which included improvements in the delivery and the quality of basic education services in rural areas, and tested a decentralized education system based on community management of service delivery. 2.60 The IDB has financed nine education projects in El Salvador since 1962 (Annex 17). These loans have covered such areas as: (a) improvement of general education and basic sciences; 9 World Bank. 1993. Report and Recommendation of the International Bank for Reconstruction and Development to the Executive Directors on a Proposed Second Structural Adjustment Loan of US$50 million to the Republic of El Salvador. Report P-6108-ES, August 23. 19 (b) expansion and improvement of academic and physical infrastructures; (c) studies of the supply and demand of human resources in secondary and higher education; (d) programs to combat illiteracy and provide adult education; and (e) studies of non-university technical education. Prior to the proposed project, IDB's involvement in the finance of basic education in El Salvador has been minor. 2.61 Implementation experience and the impact of the education component of the SSRP was reviewed in 1994 and lessons learned from the project have been incorporated in a sector report, 'El Salvador Community Education Strategy: Decentralized School Management" (Report No. 13502-ES, December 8, 1994). Among other lessons, three should be highlighted. First, the EDUCO model, with its strong community participation, offers education services at a reasonable cost to some of the lowest income groups in rural areas, and provides efficient management of those services. Despite the lower socio-economic status of EDUCO students20, their achievement results are comparable to students in traditional (urban and rural) schools. Although overall costs of the EDUCO schools are similar to those of traditional schools, the benefits of the program appear to be much higher. These benefits include bringing education to areas which did not previously receive these services, community involvement in providing education services, and better control over teacher attendance and performance. EDUCO also established channels for better communication between communities and N4INED. The proposed project continues supporting the participation of the community by expanding the EDUCO model in rural areas which are currently without services. Second, although the Ministry of Coordination of Economic and Social Development2' (Ministerio de Coordinaci6n del Desarrollo Economico y Social - MICDES) Project Coordinating Unit (PCU) had an important role in implementing the project and acquired project implementation expertise, this expertise was not fully transferred to the executing agencies. To guarantee a high level of project implementation, the managerial capacity must be reinforced, not only at the PCU level, but also within the executing agencies involved in project operation. Thus, project management for the proposed project has been established as an integral part of the MINED, with staff drawn from the operational units that prepared the project. In addition, a staff development program to improve, in a timely and coordinated way, the skills of administrators, technical/administrative and pedagogical personnel required by the institutional development process will be implemented. Third, the education loans in the 1970s experienced significant implementation delays arising from shortage of counterpart funds. The SSRP took this into account in its design. Annual implementation targets were included in the Government's budget proposal presented to the Assembly to avoid shortages of counterpart funds, and consequently funds were made available at the onset. Also building upon lessons from the SSRP, a revolving fund (see para. 4.9), operated by MINED's Office of International Cooperation Projects (Oficina de Proyectos de Cooperaci6n Internacional - OPCI), would be opened in the name of the project. 2.62 The EDUCO program has also provided valuable experience that has been incorporated into the project including: (a) the effectiveness of incentives to improve teacher performance; (b) the positive impact of classroom libraries in complementing teacher strategies and in stimulating 20 EDUCO schools are in some of the lowest income areas of El Salvador, where factors such as health, nutrition, and the need for child labor weigh in heavily against school performance. 21 Formerly the Ministry of Planning and Coordination of Economic and Social Development (Ministerio de Planificacion y Coordinaci6n del Desarrollo Econ6mico y Social - MIPLAN). 20 student interests and reading habits; and (c) the importance of having learning materials that complement textbooks to stimulate more active learning in school. 2.63 Feedback from other education projects in Latin America indicates that a proper policy framework and adequate institutional capacity are major factors in determining the success of project implementation. The proposed project focuses on improving the quality and efficiency of basic education on the basis of (a) a clearly stated government policy framework; and (b) improvement of the institutional capacity of MINED at the central and departmental levels. Other specific lessons learned from basic education projects in Latin America which have been incorporated in the design of the proposed project include: (a) increasing education expenditures, especially those targeted to the poorest regions; (b) promoting adequate nutrition and health practices; (c) developing an integrated, inter-disciplinary curriculum that can be adapted to the needs of the urban and rural sectors; and (d) the need to keep the public informed and involved in the changes being contemplated by the Ministry. 2.64 Decentralization experiences in Latin America have pointed out some key elements that have to be present to ensure that decentralized units of government, are capable of absorbing new responsibilities and implementing them effectively. "Successful decentralization requires: (i) full political commitment from national, regional, provincial, municipal, and local leaders; (ii) a model addressing the issue of which educational functions and responsibilities could be more efficiently and effectively delivered at the central level, smaller decentralized government units, and/or the private sector, and explicitly defining the degree of accountability of the different participants; (iii) an implementation strategy and a timetable; (iv) clear operational manuals and procedures; (v) continuous training for the skill levels to be performed at the central and decentralized units of government; (vi) relevant performance indicators to be continuously monitored; and (vii) adequate financial, human, and physical resources to sustain the process. 2 2.65 The decentralization process that is supported by the proposed project (para. 3.28(a)) has been designed with the full support of the Government and through an active communication campaign that has already created a sense of ownership within the education community. The process will be guided by a prototype that defines functions at all levels in a systematic way and its implementation will be sustained by the development of an MIS, and will be implemented gradually using pilot experiences that will allow for the introduction of corrective measures in a timely basis. The process will also be accompanied by a comprehensive training program at all levels. 3. THE PROJECT A. Project Objectives and Scope 3.1 The proposed project will promote greater equity, quality, and efficiency in the provision of education services by: (a) improving access to education; (b) improving education quality in 22 Prawda, J. 1992. 'Educational Decentralization in Latin America, Lessons Learned." A View from LATHR, No. 27, Human Resources Division, Technical Department, Latin America and the Caribbean Region, World Bank. 21 both academic achievement (output) and learning environment (education inputs); and (c) strengthening the managerial, financial and administrative capacity of MINED to set policies and guidelines for the sector and deliver public education services. 3.2 Greater equity will be achieved by increasing coverage to include approximately 32,000 preschool age children and 64,000 basic education students who do not currently attend school. Increasing the quality of education services, and thereby increasing the educational attainment for many who do attend school (approximately 800,000 children) will be made through provision of training and education materials. Training will be provided to approximately 26,300 teachers, 13,000 community members and 23,000 parents (see para. 3.20). Textbooks will be produced and distributed to students in public schools to provide for a better learning environment. Improved efficiency will be reflected in a reduction of repetition rates, an increase in the completion rate, an improvement in the net enrollment rate and increased relevance of the curriculum. These improvements in pupil and school performance will be achieved by improving the quantity, quality and management of learning resources and improving the planning, administration and management of the national education system. B. Project Target Areas 3.3 The proposed project will continue the Government's efforts to increase education service delivery, especially in rural areas. Several interventions will be targeted to the 135 municipios (out of 262 total municipios) with the lowest levels of social services (see Annex 6). The targeted activities are comprised of: (a) expansion of preschool and basic education; and (b) increasing the learning capacity of children through improvements in health and nutrition. The remainder of the project activities will be implemented nationwide. C. Project Components 3.4 The project has been organized into three major components as follows: (a) Expansion of Access to Preschool and Basic Education (US$12.5 million (including contingencies) or 16 percent of total project costs) in 135 target municipios to provide for: (i) supporting the expansion of EDUCO to regions which currently do not have preschool or basic education services, including rehabilitating the school infrastructure and providing school furniture in rural schools not supported by the Social Investment Fund; and (ii) technical assistance for strengthening the EDUCO model. (b) Improvement in Education Quality (US$49.2 million (including contingencies) or 61 percent of total costs) would contain activities that impact the quality of preschool and basic education in the country as a whole, including: (i) technical assistance for supporting curriculum development activities for preschool and basic education, designing a new student promotion system, and establishing multigrade classes in schools in rural areas; (ii) educational materials, such as textbooks, didactic materials, and classroom and school libraries; (iii) training and assistance 22 to upgrade the skills of preschool and basic education teachers, principals and supervisors, and preparing studies to improve pre-service teacher training; and (iv) developing an education assessment system. The component would also include activities to develop a school health and nutrition program targeted to the 135 poorest municipios as defined by having the lowest levels of social services. (c) Institutional Modernization and Strengthening (US$13.3 million (including contingencies) or 17 percent of total costs) to provide for: (i) technical assistance for a review of MINED's legal and organizational framework to increase system efficiency, to increase the coverage and improve the quality of education services, to implement institutional reforms in the areas of management of human and financial resources, planning, information, evaluation, monitoring, supervision and communication systems, and to establish a staff development program to improve the capacity of administrators and technical personnel; and (ii) establishing a funding mechanism, the Pilot Basic Education Fund Program, to test alternative methods of providing preschool and basic education through, for example, such organizational entities as the municipios, NGOs or other non-profit private organizations, and to experiment with pedagogical and administrative innovations. This component will have an effect that will extend throughout the education sector and the country. D. Project Description (1) Component 1 - Expansion of Access to Preschool and Basic Education (US$12.5 million or 16 percent of total costs). 3.5 This component will increase access to preschool and basic education in rural areas by: (a) expanding the number of community-managed schools (Educaci6n con Participaci6n de la Comunidad - EDUCO) in rural areas; and (b) strengthening EDUCO through the support of NGOs or other private organizations. 3.6 Subcomponent (l.a) Expansion of preschool and basic education in the rural areas (US$6.0 million). The EDUCO program has contributed to improving access and raising the quality of education in rural areas.23 Based on its promising results, and following a gradual process, MINED intends to provide education coverage in rural areas under the EDUCO model. MINED will start the process by: (a) establishing approximately 3,000 new EDUCO sections in the poorest municipios which currently have deficits in preschool and basic education services24; and (b) gradually replacing approximately 3,000 traditional school sections with the EDUCO model. 3.7 The creation of new sections, that will cover preschool through grade 625, will be financed with funds from the ordinary budget26 of MINED and FIS funds. The teacher cost of increased 23 EDUCO Study, op. cit. 24 The maximum distance that a child will have to travel to school has been set at 2.5 km. 25 In an EDUCO school, all sections will be managed under the EDUCO system. 23 coverage will be fully covered by the ordinary budget of MINED. The construction of classrooms with community participation will be undertaken as a regular operation of FIS and will be financed by FIS. The microplanning/microlocation survey (see para. 2.19) will be used as the basis for approving school infrastructure. The proposed project will also provide funds for the development and promotion of the ACEs that will manage the new preschool and basic education sections. An agreement (convenio) with FIS to guarantee the timely construction of new classrooms was presented at the negotiations (para. 7.2(a)). The estimated timetable for creating new sections is presented in Table 4. Table 4. Timetable for Creating New EDUCO Sections Level Year 2 Year 3 Year 4 Year 5 Total Preschool 250 250 250 250 1,000 lst & 2nd Cycles 500 500 500 500 2,000 Total 750 750 750 750 3,000 Notes: There were 1,311 EDUCO sections and 14,602 traditional preschool, 1st and 2nd cycle sections in 1993. All EDUCO sections are managed under the EDUCO system. 3.8 The gradual transformation of rural traditional schools to the EDUCO model will not represent additional recurrent costs because in these cases, traditional schools are already operating. Nevertheless, finance for rehabilitation of school is required and will be financed by the proposed project. To transform the rural school system into community-managed schools, three methods will be used: (a) as traditional school teachers retire, transfer or resign, they will be replaced by EDUCO teachers; (b) single-teacher schools will be transformed into EDUCO sections; and (c) any new school and/or section in rural areas will use the EDUCO model. The proposed project will also support the rehabilitation of the schools. MINED will hire the services of FIS to manage the rehabilitation of infrastructure. The estimated timetable for transforming traditional sections into EDUCO is presented in Table 5. Table 5. Timetable to Transform Existing Traditional Sections to EDUCO Secdions Method Year 2 Year 3 Year 4 Year 5 Total One teacher schools 335 335 670 Retirement 250 250 250 250 1,000 Transfers 350 350 350 350 1,400 Total 600 935 935 600 3,070 3.9 At the end of the project it is expected that the provision of education in rural areas will be provided by approximately 9,400 EDUCO sections and approximately 11,500 traditional sections. This subcomponent will provide: (a) technical assistance to complete the microplanning exercise initiated under the SSRP undertaken in 50 percent of all schools in the country; and (b) funds to rehabilitate schools and infrastructure, and purchase and distribute school furniture in EDUCO schools to complement current FIS funds for infrastructure in the rural areas (see Annex 7). Maintenance of the schools will be provided under the current MINED maintenance program 26 El Salvador's annual budget is divided into two broad categories: ordinary and extraordinary. The former category is comprised of funds from domestic sources; the latter is comprised of funds from bilateral and multilateral agencies and other external donors (see also para. 2.45). 24 which was developed under SSRP. The promotion of the ACEs will be financed under the Strengthening of EDUCO Program. As a condition for IDB for the disbursement of this subcomponent, MINED will present assurances of the continuance of the school maintenance program for rehabilitated schools (para. 7. 7(a)). 3.10 Subcomponent (l.b) Strengthening the EDUCO program (US$6.5 million). This component will focus on strengthening the administrative capacity of the ACEs and parent participation in the EDUCO program with the support of NGOs or other private organizations. Pilot experiences with the participation of NGOs have demonstrated the sound contribution that those organizations can add to the communities, mainly in terms of improving ACE member management skills and parent participation in the program. Based on these pilot examples, the project will assist the Ministry in improving the participation of selected NGOs or other private organizations operating in the sector, building on their strengths to support community development programs, facilitate local resource mobilization, and to promote local participation in the socioeconomic development process. 3.11 The strategy to be developed by the component includes: (a) the selection, on an experimental basis, of ACEs to participate in administering supplementary community services (e.g. school-based health and nutrition programs) in addition to administering education services; and (b) strengthening of training programs for parents. The subcomponent will provide: (a) technical assistance and consultant services to develop an inventory of NGOs or other private organizations to be selected for supporting the ACEs, and to establish a system to monitor NGO or private organization performance; (b) financial resources for NGOs or private organizations to help with the organization, training, and monitoring of ACE activities (see Annex 7); (c) training programs for teachers and supervisors in community-related matters; (d) preparation and printing of training materials; (e) guidelines for the operation of the ACEs; and (f) resources for devising ways of launching, supporting, documenting, and disseminating information about the experience gained (see Annex 7). (2) Component 2 - Improvement in Education Quality (US$49.2 million or 61 percent of total cost) 3.12 This component would include measures to complement actions already initiated under the SABE Project and to develop new activities for improving the quality of education services. The component consists of the following interrelated parts: (a) curriculum design and development, including pilot multigrade classes; (@) design, production and distribution of textbooks, learning/teaching materials, school equipment, and school library books; (c) development of in- service training programs for preschool and basic education teachers, principals and supervisors, and a pre-service teacher training assessment study; (d) establishment of a permanent education assessment system; and (e) development of a school-based health and nutrition program. 3.13 Subcomponent (2.a) Curriculum development (US$1.4 million). The curriculum development subcomponent is aimed at providing programs of study that are more relevant and flexible to meet the needs of the school population, especially in rural areas. The subcomponent will complement curriculum activities initiated by the SABE Project (see Annex 8). These activities would involve: (a) adapting learning objectives and content for core curriculum modules 25 at the preschool level in rural areas; (b) reviewing the curriculum for the 3rd cycle of basic education (grades 7 to 9) to complement the one designed for the 1st and 2nd cycles; (c) developing a multigrade pilot program in EDUCO schools; and (d) establishing a new student promotion system. Over the life of the project, the subcomponent will provide: (a) technical assistance for studies of curriculum and student promotion; (b) production and distribution of approximately 26,000 curriculum guides for the 3rd cycle of basic education, and 31,000 curricular guides for the rural schools; and (c) production of materials for multigrade classrooms. 3.14. Subcomponent (2.b) Textbooks and instructional materials (US$32.5 million). Recent evaluation in the country links the low level of student attainment at all levels and modalities of education in the country to the lack of education materials.27 The proposed project would continue to support the current Government's effort in providing textbooks. This includes revision of gender content, adaptation to the new curriculum, and adjustment to rural student characteristics. This subcomponent is aimed at improving the quality of learning, increasing school attendance, reducing student dropout and repetition rates, and raising the academic achievement level of students. This would be accomplished through the provision of: (a) technical assistance for the development of student and teacher guides, and modular textbooks for grades 7 to 9, the selection of school and classroom library books, and the design of cost recovery studies; (b) textbooks and instructional materials; (c) complementary classroom supplies for selected preschool and basic schools; (d) school libraries for preschool and basic schools, and small classroom libraries for EDUCO classes; (e) support for the development of a sustainable textbook and education materials production and distribution system; and (f) financing for office equipment, costs of transporting textbooks and instructional materials, and operating costs. 3.15 The MINED plan calls for the production and distribution of approximately 3,500,000 books over the next five years.28 The textbooks will be provided following the strategy used by the SABE Project by which textbooks are prepared by national or/and international specialists, and printed by the private sector. The project will provide: (a) two instructional booklets designed to include multiple units for preschool students; (b) four textbooks (in the areas of Spanish, mathematics, natural sciences and social studies) for grades 1 through 9; (c) modular student instructional guides, to foster auto-instructional use by students in grades I to 6 in urban areas and in the multigrade classes in rural areas; (d) books for a total of about 3,400 school libraries to preschool and basic education schools in urban and rural areas; (e) 2,000 classroom libraries to preschool and basic education EDUCO schools; and (f) 200 laboratory kits will be produced for 3rd cycle schools. Each school library will have 2 copies of about 100 titles plus reference books, and each classroom library will be made up of 2 copies of about 20 titles plus reference books. A package of instructional materials (canasta basica) will also be distributed annually to all preschool and basic schools in urban and rural areas.29 Two strategies will be used for the provision of the basic instructional materials: (a) distribution of the canasta basica for urban schools; and (b) provision of funds (district and school fund) to schools to purchase instructional materials. The first strategy is designed to benefit from economy of scale in the purchase of the instructional materials; the second, to test the cost-effectiveness of purchasing and 27 EDUCO Study, op. cit. 28 The provision of books will be complementary to SABE's provision of textbooks. Approximately every student will receive, on average, one new textbook per year. 29 The canasta bMsica will include items such as pencils, non-durable materials such as exercise books, education toys, paper, pens, markers, scissors, rulers, etc., and will also be used to distribute nutritional supplements. 26 distributing instructional materials through the ACEs for the rural schools or school committees for selected urban schools. For the distribution of textbooks and the canasta basica to urban schools not included in the pilot district and school fund program, MINED will use the distribution system established under SSRP which involved the contracting of private transportation firms to carry pre-packaged textbooks and instructional materials from the central warehouses to the departments, and from the departments to the districts. The distribution plan ensures that the instructional materials will arrive at schools before the beginning of each school year and new textbooks will arrive before the usable life of existing textbooks expires. 3.16 Subcomponent (2.c) In-service teacher training system (US$10.8 million). Currently, with the support of the SABE Project, several in-service teacher training activities have been developed to support curriculum implementation. MINED developed 90 schools as Education Training Centers (Centros Educativos de Capacitaci6n - CECs) to act as in-service training units or resource centers on an experimental basis. The impact of these activities has been limited due to the lack of pre-service training programs for basic education teachers, and a lack of a systematic approach to improve the quality of the teacher training programs. The project will support an integrated/decentralized training system, to consist of gradually phasing in three Teacher Training Centers (Centros de Capacitaci6n de Maestros - CCMs) into existing educational facilities, and transforming the CECs into Model Schools for Education Development (Escuelas Modelos de Desarrollo Educativo - EMDEs) which will function as in-service training and pedagogical resource centers. 3.17 In addition, MINED will conduct assessment studies of the teacher pre-service training program developed by private/public institutions to address policy options to improve the quality and efficiency of these programs. 3.18 The project will support technical assistance and training activities. Technical assistance will be provided for: (a) the design of plans and programs for in-service teacher training programs; (b) the design of a systematic assessment system to identify in-service training needs for preschool, and basic education levels; (c) the production of training modules and evaluation of outcomes; and (d) the development of an assessment study of the pre-service training needs for basic education and preschool teachers. Training will be developed as: (a) seminars for teachers working in the EMDEs (80 hours); (b) programs offering specialized courses for: (i) preschool teachers (80 hours), (ii) basic education teachers (grades I to 9) (80 hours), (iii) EDUCO multigrade teachers (120 hours), (iv) school principals (80 hours), and (v) supervisors (120 hours); and (c) follow-up teacher training at the EMDEs through 12 workshops per year, supported by the district supervisors. The training of supervisors will be linked with a more pedagogical role of supervision (see para. 3.28(d)).3° The project will also provide: (a) funds for contracting out selected content/pedagogical training programs to universities or research centers; (b) furniture, equipment and rehabilitation of facilities to be used as the CCMs and the EMIDEs; and (c) specialized training libraries at the EMDEs. 3.19 The National Directorate of Education (Direcci6n Nacional de Educaci6n - DNE) will be responsible for establishing national teacher training guidelines. Training activities will be carried out by the CCMs which will be responsible for: (a) developing teacher training programs for 30 Hours of training are the numnber of training hours per teacher per year. 27 preschool and basic education teachers; (b) supporting the in-service teacher training programs to be implemented by the EMDEs; (c) preparing teacher training instructional materials, and pilot training prograns; (d) contracting out content/pedagogical training programs to universities and other private institutions; and (e) monitoring teacher training programs. The training professionals, currently working at the regional departments of education (about 12 in each of the regional training units), will form the basic staff of the CCMs. To allow full participation of trainees and minimize travel time and costs, training will be decentralized primarily to the 238 local schools (EMDEs) selected to function as in-service teacher training and resource centers which will be responsible for implementing the in-service training programs with the support of teacher trainers prepared by the CCMs. Additionally, teachers trained under the USAID- supported Basic Education Leadership Training Program (Capacitaci6n de Lideres de Educaci6n Bdsica - Becas CAPS) will be assigned to each of the schools in the network to function as animators of the in-service teacher training activities. 3.20 Beneficiaries of the training program will be all the public preschools (approximately 2,300 teachers), basic education schools (approximately 24,000 basic education teachers in grades 1 to 9 and approximately 2,150 teachers working in the EMIDEs), approximately 6,500 school principals, and approximately 250 supervisors.31 Over the life of the project, each public school teacher, including EDUCO teachers, will receive an estimated 420 hours of additional training both at the CCMs and in the EMDEs. 3.21 Subcomponent (2.d) Education assessment system (US$3.0 million). Under the SABE project, MINED began using achievement tests to assess the impact of the new core curriculum for grades 1 to 6. With the assistance of a local university/research center, MINED Curriculum Directorate staff will continue developing this system on a nationwide basis. The local university/research center will be selected no later than January 30, 1996 (para. 7.3(a)). The system of external evaluation will test, each year, a nationally representative sample of those students finishing each cycle of the basic education system (grades 3, 6 and 9) on Spanish and mathematics. Additionally, readiness tests will be administered at the beginning of first grade and at the end of third grade. To cover the whole learning evaluation process, a survey on the impact of associated factors that might impact the learning process will be applied to the sample of schools selected. Three major criteria would be considered in the sample selection: (a) type and size of school according to official typification; (b) source of funding (public, private and public/private); and (c) geographic area (department, rural, urban and urban-marginal areas). 3.22 Considering the lack of experience in the country in carrying out achievement tests on a permanent basis, this subcomponent would provide: (a) technical assistance for: (i) further developing the existing system, including the preparation of tests, and implementing it in a sample of schools on a nationwide level, and (ii) designing of training programs for the development of technical skills for both the local university/research center staff and MINED staff members responsible for the coordination of the evaluation assessment system; (b) funding for equipment, office furniture and operating costs for an external evaluation unit (university/research center); (c) the production and implementation of a sample of language and mathematics achievement tests, and a survey to determine the impact of selected associated factors to the learning process for grades not covered by the SABE Project; and (d) supplies, materials and computer services. The 31 Some teachers will receive training in more than one modality. 28 pedagogical evaluation will be complemented with management evaluation and pilot exercises (see para. 3.28(c)). 3.23 Subcomponent (2.e) School health and nutrition program (US$1.5 million). The objective of this sub-component is to improve the quality of education by increasing the learning capacity of children via improvements in health and nutrition. The component will support interventions and activities to: (a) increase knowledge and change practices related to nutrition and health in the school community; (b) prevent and treat significant nutrition and health problems of school-aged children; and (c) evaluate the on-going school feeding program while identifying and testing alternative school feeding models for the municipios with the most poverty. 3.24 The school nutrition and health measures will be built on the activities developed by MOH and MINED in the 78 targeted municipios under the SSRP. The proposed component will continue and improve upon these activities and expand them to 135 targeted municipios (see Annex 6). The specific measures include: (a) incorporating nutrition and health education into the formal curriculum, as well as developing and implementing non-formal approaches to health and nutrition education; (b) providing vitamin A and iodine supplements, and anthelminthic treatment through the schools to 400,000 children in the first two years of the project; (c) identifying visually and hearing impaired children and taking remedial action; (d) implementing a pilot test of providing school-based iron supplementation; and (e) developing alternative school feeding program mechanisms to overcome logistical and other difficulties in on-going programs. 3.25 The subcomponent will be implemented in close coordination with MOH and the National Secretariat of the Family (Secretaria Nacional de la Familia - SNF) which is in charge of food programs.32 A coordinating mechanism will also be established between MINED, MOH, and NGOs or other private organizations for supporting sub-component implementation, mainly in the rural areas through the canasta basica. Prior to the negotiations, MINED provided the draft technical agreement model and coordinating mechanisms between MINED, SNF, and MOH to implement this subcomponent. (3) Component 3 - Institutional Modernization and Strengthening (US$13.3 million or 17 percent of total costs) 3.26 The main objective of the institutional modernization component is to carry out institutional modernization and strengthening of the education sector. The policies and activities of this component will be consistent with the reforms in other sectors as part of the Government's Public Sector Modernization Action Plan which will be implemented with the technical and financial support of the IBRD, IDB and other donors through a proposed Public Sector Modernization project (see Annex 5). As presented in the Social Assessment (Annex 4), the participation of stakeholders will be critical to develop a sense of ownership that will be the base on which the reform would be successfully built. Seminars with representatives of the different stakeholders have been one of MlNED's strategies to build up consensus for the reform. Advancement of the overall public sector reform and results of the report of the High Level Commission for Education, Science and Development (para. 2.42) may cause changes that will have to be incorporated during project implementation. 32 The SNF wiUl pay for the school food program. 29 3.27 Subcomponent (3.a) Modernization of MINED (US$11.4 million). This subcomponent will address the changes needed in MINED by: (a) designing a new organizational structure for MINED and revising the legal framework of the education sector to support education activities at the school and community levels; (b) implementing the new MINED organization structure, including improving MINED management mechanisms in the areas of planning, information, communication, evaluation and monitoring systems and the introduction of a more sound incentive system; (c) revising the performance incentive system for teachers, principals, supervisors, and technical staff, (d) improving the supervision system; and (e) establishing a staff development program to improve the technical capabilities of managers, technical/pedagogical, and administrative staff to support improvements in the provision of education services. Under this subcomponent, the project will provide: (a) technical assistance and consultant services for: (i) reviewing MINED's legal and organization structure; and (ii) completing the design and implementing the planning, information, communication, evaluation, and monitoring systems; (b) funds to carry out staff development activities; (c) a review of the incentive structure for teachers and technical staff, (d) public campaigns and communication activities, including annually updated communication strategies and their use by the media; and (e) operating costs for developing the decentralized activities, and equipment, materials and supplies. 3.28 The implementation of actions to foster policy development and changes on a long-term basis will be based on the review of MINED's organizational structure and legal framework. The institutional reforms to be carried out by a national technical group would be supported by technical assistance and training provided under the project. The main activities planned include (see Annex 9 for more detail): (a) Reorganization of MINED structure, and decentralization of education activities. Education services will be decentralized to the department/district and school levels with the elimination of the current regional organization. MINED's role under the new organization will consist of providing general direction, setting goals and priorities, establishing quality standards and pedagogicaVadministrative legal norms and regulations, and evaluating the public and private education system. Its major activities will be: (i) the definition of policies, education goals and program objectives; (ii) the definition of targets, budget and staff posts for each department/district and school; (iii) establishing basic curriculum content, and quality standards for teacher training programs, textbooks, instructional materials and assessment of learning achievements; (iv) undertaking systematic evaluation of student learning achievement and impact evaluation of education programs; (v) determining physical investments; (vi) defining standards for recruitment of both teachers and administrative staff, and establishing career planning services and incentive systems for both teachers and administrative staff, (vii) the control of cash flows, and accounting and budgeting at the national level; (viii) procurement activities, when justified by economies of scale, distribution costs, and timeliness of delivery; and (ix) monitoring of departmental activities. The Departments, organized as small and responsive offices, will be responsible for administering the human, physical and financial resources at their level and for coordinating district supervision activities. The Supervision districts will be responsible for coordinating activities and processes between the schools and the department in 30 terms of teachers, textbooks, school materials, school meal programs, collecting information on public and private schools within their jurisdiction, and providing technical assistance to schools and teachers for solving administrative and pedagogical problems, the latter with the support of the EMDEs. The schools would be able to: (i) provide quality education services; (ii) prepare their school education plans (Plan Educativo Escolar - PEE); (iii) administer their financial and material resources; (iv) select qualified teachers; (v) generate data and indicators regarding the results of their operation (e.g. data on promotion, repetition, desertion and coverage33); and (vi) administer funds for small purchases. (b) Teacher and technical staff performance incentive system. To increase the effectiveness of the MINED reorganization, it is necessary to combine it with a structure of incentives promoting excellence. In order to foster the establishment of an adequate structure of incentives for all MINED personnel, the proposed project will provide technical assistance and consultant services to: (a) revise the Escalaf6n Docente for teachers in the traditional system; (b) develop an improved employment policy for teachers in the EDUCO system; (c) revise the salary structure for technical staff within the new organization of the Civil Service System to be defined under the Public Sector Modernization project; and (d) define new job descriptions. The program will also provide funds to foster the implementation of the rationalization of personnel under the structure of MINED. (c) Planning, management information, and evaluation systems will be improved through provision of technical assistance, equipment and software to: (i) expand the education statistics database to all levels of education; (ii) support planning, budgeting, accounting and evaluation activities; (iii) track the distribution of educational materials through an inventory of facilities and equipment; (iv) support human resource activities through an inventory of teachers and administrative staff (number, professional characteristics, location, vacancies) and student enrollment information; and (v) conduct joint evaluations with external agencies to measure the impact of education interventions, including an assessment of secondary education. Training activities to carry out the planning, evaluation/monitoring and management information systems will be provided under the staff development program (see para. 3.28(f)). To be consistent with the GOES program for Public Sector Modernization, priority will be given to the development of the Human Resources System (Sistema de Informaci6n de Recursos Humanos - SU" and Integrated Financial Management System (Sistema de Administracion Financiera Integrada - SAFI). (d) Supervision. Supervision activities will be re-oriented in the direction of: (i) providing technical support to teachers and school principals; (ii) disseminating results of education program evaluation; and (iii) giving feedback to correct shortcomings in the education process. Additionally, to increase the professional capacity of the supervisors, the program seeks to achieve a qualitative change in their functions by increasing the time employed in monitoring teaching activities 33 For analysis and comparison at the central level. 31 and by reducing their strictly administrative responsibilities. The supervision system will be improved through the provision of: (i) technical assistance to review the supervision system and the incentive system for supervisors working in remote rural schools; (ii) training programs especially designed for the supervisors; (iii) per-diem, vehicles, office supplies and equipment for department and district supervisors; and (iv) assessment of the revised system. (e) Communication Program. International experiences with education reform projects in developing countries show that where insufficient attention was given to identifying real needs or to mobilizing demand for changes, innovations were difficult to implement. Using these experiences, MINED has developed a series of strategies to guarantee education agents' participation in the education reform process. The social assessment (Annex 4), undertaken during project preparation to identify major education reform benefits and risks, suggests an action plan of activities to be developed by MINED to enhance public support for the education reforms envisioned by the Government. The plan calls for the establishment of an effective communication strategy as a key tool: (i) to guarantee public support for the education innovations; and (ii) for the establishment of a communication system to provide a permanent information channel within MINED, between MINED and the public and to receive feedback from the sector's stakeholders. The communication activities, which started during project preparation, will continue through project implementation to inform and mobilize the participation of parents, teachers, students, and other stakeholders. The communication program will use social research techniques, particularly the 'focus groups" technique, and mass media publicity, in the design, execution and monitoring of the program. MI4NED's communication structures will be strengthened to facilitate the fulfillment of their coordinating and monitoring roles. The project will provide: (a) technical assistance for: (i) organizing focus groups with different stakeholders; (ii) monitoring and evaluation; and (iii) design of public campaigns; (b) equipment and operation costs; and (c) school and public campaigns. (f) Staff development program. A review of the international literature shows that successful education reforms, involving decentralization of tasks, should include training for both central administrators and local implementors. Technical and managerial training must be provided not only for those to whom responsibility is being transferred, but also to central officials who will have to learn how to support local implementors more effectively. The design and implementation of the staff development program will follow MINED's reorganization to improve, in a timely and coordinated way, the skills of administrators and technical/administrative and pedagogical personnel required by the institutional development process. The staff development program will be provided through 15 courses, 10 seminars, and 15 scholarships for short courses specializing in education policy analyses, information, planning, budgeting, education methodology and human resources management. As a condition for IBRD disbursements for the modernization component MINED will present the work plan for the staff development activities (para 7.6(a)). 32 3.29 Implementation Strategy. The implementation of the new MINED organizational structure, including new planning, information, supervision and evaluation procedures, will be tested initially in three departments, which will serve as prototypes of the new structure. The redistribution of functions and roles between levels, across all systems, and the strengthening of managerial capacity at all levels, will be implemented in their entirety in the pilot departments. Only after testing and evaluating the pilot experiences will implementation be extended to the remaining departments. This strategy will allow for the control and simultaneous testing of project components, particularly the new modalities of delivering education services and the new functions envisioned by the education reform. The departments of Ahuachapan, Cabanas, and La Uni6n were selected to participate in the pilot experiment based on the following criteria: (a) their physical and institutional infrastructures; (b) the existence of a sub-regional structure; (c) the department's geographical extension; (d) the existence of human resources; and (e) demand for education services. The preparation, development and evaluation of the pilot decentralization activities are expected to be carried out in ten months, and the expansion for the new departments in 15 months (see Annex 9). MINED will establish, under the Modernization Manager's supervision, a Management Modernization Unit (MMvIU), in charge of managing the subcomponent. The MMU will be responsible for: (a) implementing the pilots in the selected departments; (b) promoting and coordinating changes at the central level; (c) selecting staff responsible for implementing the reform in the departments; (d) coordinating studies to support the organizational development activities and modernization of the legal framework; and (e) coordinating MINED's activities with the groups involved in the public sector modernization project. During negotiations, terms of reference and a schedule for the modernization of MINED, including key staff at the department level, were agreed (para. 7. I(a)). 3.30 Subcomponent (3.b) Pilot Basic Education Fund Program (US$1.9 million). As part of the principles of the Education Reform, MINED needs to explore various methods of delivering education services, in order to improve the quality and efficiency of the public and private sectors. Innovative methods of combining the public and private sectors in the provision of education services can eventually be adopted on a broader scale within the modernization of the education sector but they need to be identified and tested. A pilot fund to develop education innovations will be set up to support new initiatives in the education reform process. The main objectives of this fund are to: (a) test alternative methods of providing basic education through the municipios, NGOs or other non-profit private institutions; (b) establish a more substantial and incentive-driven financing mechanism for piloting school-oriented interventions to solve particular administrative and/or learning/teaching problems; (c) make provision for future public education initiatives in the areas of pedagogical innovations and institutional modernization which cannot be anticipated or launched immediately; and (d) disseminate the pilot results. Four principles underlie the design and organization of the Pilot Basic Education Fund Program: (a) ensuring that education innovation in pedagogical and administrative areas to provide education programs are designed according to the priority needs of implementing the education reform; (b) ensuring that funds to increase access and quality of education are used effectively; (c) pursuing efficiency in the use of human/financial resources in the sector, thus avoiding duplication of effort; and (d) providing support for the implementation of the reform program and the decentralization process. 3.31 During project implementation, the subcomponent will finance at least four innovative subprojects that contribute to improving the quality, efficiency, and coverage of preschool and basic education in the country. The subcomponent will provide: (a) financial resources for 33 identifying and implementing the approved subprojects; (b) support to establish a monitoring system to follow-up the education interventions financed by the program; (c) support to fully evaluate all subprojects funded; and (d) assistance to disseminate the results of the evaluations. By the end of the project, MINED will have developed a funding mechanism to continue supporting the education innovations piloted during the proposed project that have been evaluated as being relevant and successful. 3.32 Organization and Administration. The subprojects submitted for financing would be presented twice a year to a Review Committee which would analyze, rank and recommend approval of the subprojects according to established criteria. 3.33 Based on the Education Reform Project principles and guidelines, the Minister and Vice Minister of Education will supervise the Fund. They will be responsible for: (a) establishing the goals and policies of the Fund; and (b) defining the Fund's classification system based on considerations such as coverage, quality, efficiency, focus, and cost. The factors for consideration will reflect the priorities of MINED policies and will be established annually during the Project Annual Review. The Review Committee will evaluate each one of the proposed pilot subprojects. This Committee will be formed by five voting members: the Project Coordinator, who will preside over the Committee, the Manager of OPCI, and the three Project Component Directors. Experts in subjects related to the specific subproject proposals could be invited when deemed necessary. Each proposal will be classified and evaluated according to the classification system for that year, and points will be assigned to each one of the five areas (coverage, quality, efficiency, focus of objectives, and cost). The subproject with the largest number of total points will be selected. The 'ho objection" of the Banks is a pre-requisite for the final approval of the proposed subproject. Once a proposal is approved, a technical agreement (convenio) between MINED and the requestor will be signed whereby the former agrees to disburse the resources approved under the proposal, and the latter agrees to implement the proposed project. As a disbursement condition for IDB for this subcomponent, the Operational Manual for the Fund, including the eligibility criteria, will be agreed with the Banks and put in place by MINED (para. 7.7(b)). 4. PROJECT COSTS, FINANCING, PROCUREMENT, DISBURSEMENTS AND AUDITING A. Project Costs 4.1 The total project cost, including physical and price contingencies and taxes, is estimated at about US$80.2 million, of which about US$37.3 million will be foreign exchange. Taxes amount to about US$4.4 million. Investment costs amount to 91 percent of base costs and incremental recurrent costs amount to 9 percent of base costs (Annex 11). Project costs were estimated at July 1995 price levels and include physical contingencies of 10 percent for civil works and 5 percent for equipment, furniture, and didactic materials. Price contingencies were calculated at 1.8 percent for 1995 and 1996, 2.4 percent for 1997, and 2.5 percent annually thereafter. These rates have been applied to local and foreign costs as well, as periodic currency rate adjustments would compensate for the difference between projected US dollar inflation and local inflation rates. 34 4.2 Estimated costs of equipment, furniture, textbooks and didactic materials are based on unit prices of goods procured recently by MINED. Estimates for technical assistance and studies are based on current rates for local and foreign experts. Cost estimates for training, salaries and operating costs are based on current costs or costing standards used by MINED. Estimated construction and rehabilitation costs of schools and administrative buildings throughout the country are based on current FIS unit prices that derive from periodic cost analyses for similar standards of construction in corresponding facilities. Table 6.f Components Project Cost Summaiy (US$ million) _ _:_______ Component Local Foreign Total Expansion of Access to Preschool and Basic Education Expansion in the Rural Areas 3.2 2.1 5.3 Strengthening the EDUCO Program 5.9 0.1 6.0 Subtotal 9.1 2.2 11.3 Improvement in Education Quality Curriculum Improvement 0.6 0.6 1.2 Textbooks and istrutional Materials 7.5 21.3 28.8 In-Service Teacher Trainig System 8.5 1.0 9.5 Education Assessment System 1.5 1.4 2.9 School Health and Nutriton Program 1.0 0.6 1.6 Subtotal 19.1 24.9 44.0 Institutional Modernization Modernization of MINED 5.6 3.6 9.2 Communications 0.9 0.4 1.3 Basic Education Fund Program _1.9 0.0 1.9 Subtotal 8.4 4.0 12.4 Project Coordination and Management 2.6 1.9 4.5 Total Baseline Costs 39.0 33.2 72.2 Physical Contingencies 1.3 1.4 2.7 Price Conigencies 2.6 2.3 4.9 IDB Loan Inspection and Supwvision (FIV) l 0.4 0.4 Total Project Costs r43.1 _37.1 80.2 Note: Interest and financial costs will be paid directly by the El Salvadoran Government. Incremental Recurrent Costs 4.3 During the implementation period, the project will add an average of about US$1.5 million per year to the recurrent expenditures budget of MINED. These incremental operating costs would be generated mainly by salaries for staff at the departmental levels, incremental personnel at the central level, travel expenditures, and operation and maintenance of infrastructure, equipment, vehicles, furniture, and office supplies. Over the life of the project incremental recurrent costs generated by the project are estimated to grow from US$1.1 million in the first project year, to US$1.6 million in the last year. The recurrent costs would be financed by GOES increasingly during the life of the project. Recurrent costs under the project, in July 1995 US dollars, are estimated as follows: 35 US Million 1995/96 1996/97 1997/98 1998/99 1999i00 GOES 0.11 0.15 0.62 0.62 1.06 IBRD 0.85 1.07 0.84 0.82 0.45 IDB 0 18 026 0.12 0.11 0.04 TOTAL 1.14 1.48 1.58 1.55 | 1.55 The effect of the recurrent costs on MINED's budget is small and could be easily absorbed by MINED. Based on MINED's ordinary budget for 1995 (excluding investments) of about US$184 million, and the projected budget increments equivalent, at least, to the projected annual growth of GNP (7 percent real for next five years), the impact of those costs on the MINED ordinary budget would be 0.06 percent, 0.07 percent, 0.27 percent, 0.25 percent, 0.41 percent, for the successive years of implementation of the project. Savings accruing to MINED from increased efficiency and reduced repetition waste should amply compensate for higher incremental recurrent costs. 4.4 The recurrent costs associated with the GOES program to introduce a better incentive system for teachers including improvements in teacher salaries are not part of the project recurrent costs. To accomplish the objective of the education reform, the public sector has to generate revenues and provide them to MINED in order to: (a) cover the incremental recurrent costs associated with the proposed project investment plans; (b) pay for the enrollment increment program; (c) improve teacher real salaries; and (d) pay for the expected growth of actual expenditures that would occur without additional expansion programs. In order to fulfill these goals, it has been estimated that the education budget will need to reach 2.7 percent of GDP by the end of the century.34 The Government expects that total revenues will reach 19 percent of GDP in 1999. If this target is reached, it will not be necessary to raise the share of education expenditure in the total central Government expenditure. But any figure lower than 19 percent in total revenues would imply that the efforts on education should be pursued at the cost of other sectors. The Government has made a clear and public commitment to devote the required funds to develop an extensive and efficient education sector (Annex 18). 4.5 In addition, teacher salaries associated with the expansion of services to rural areas are not included in the project costs. The Government's decision to continue to fund all new EDUCO teachers with funds allocated to MINED reflects its commitment to increase basic education expenditures. It is estimated that the total MINED contribution for teacher salaries during the project period for the new EDUCO sections will amount to about US$3.7 million annually. During negotiations, the Government provided assurances that the required funds for incremental teacher salaries as established in the annual work plans (para. 5. 10) would be included in the MINED budgetfor the following year (para. 7.1(b)). 34 If economnic growth is lower than expected (3 percent), increases in the education budget could be as high as 3.3 percent. Nevertheless, under these adverse circumstances it would be expected that growth in all public expenditure and investment will also slow down. 36 B. Project Financing 4.6 The World Bank, the Inter-American Development Bank and the Government of El Salvador will finance the project. To allow flexibility and clarity in the choice of cost items to be financed by each of the external cofinanciers, the proposed financing plan is articulated according to the project's sub-components. Also, to allow flexibility in the percentages of financing, each sub-component is divided in investment costs (including civil works, vehicles, equipment, furniture, didactic materials, technical assistance and training), financed by both Banks at equal percentages for the same items, and recurrent costs (including incremental salaries, long-term consultants, travel allowances, operation and maintenance of infrastructure, equipment and furniture, and operating costs), these items being financed, on a declining basis, by the external cofinanciers. Table 7 lists the proposed financial arrangements. Table 7. Components byFinanciers (US$ miillion) a~ GOES IBRD IDB Total Expansion of Access to Preschool and Basic Education Expansion in the Rual Areas 0.8 5.2 6.0 Strengthening the EDUCO Program 0.0 6.5 6.5 Subtotal 0.8 6.5 5.2 12.5 Improvement in Education Quality Curriculum Improvement 0.1 1.3 1.4 Textbooks and Instructional Materials Textbooks 1.9 17.9 19.8 Instructional Materials 1.3 11.4 12.7 In-Service Teacher Training System 1.3 9.5 10.8 Education Assessment System 0.0 3.0 3.0 School Health and Nutrition Program 0.2 1.3 1.5 Subtotal 4.8 17.0 27.4 49.2 Institutional Modernization Modernization of MINED 1.8 8.1 9.9 Communications 0.2 1.3 1.5 Basic Education Fund Program 0.2 1.7 1.9 Subtotal 2.2 8.1 3.0 13.3 Project Coordination and Management 1.1 2.4 1.3 4.8 IDB Loan Inspection and Supervision (FIV) _ 0.4 0.4 Total Disbursement 8.9 34.0 37.3 80.2 a Costs include contingencies. Interest and financial costs are not included. 4.7 Given the project's major emphasis on serving the education needs of the poorest segments of the population, the Government's contribution to the financing would be reduced to about 11 percent of total costs, while the share of each of the external cofinanciers would be 42 percent for the IBRD and 47 percent for the IDB. Taxes and duties (approximately US$4.4 million), and a portion of the local costs of recurrent costs would be financed by the Government. The IBRD Loan of US$34.0 million would finance 38 percent of foreign exchange expenditures, and 51 percent of local expenditures. The IDB Loan of US$37.3 million would finance 61 percent of foreign expenditures and 37 percent of local expenditures. To ensure timely and efficient project implementation, some start-up activities, particularly those related to contracting of technical assistance for the institutional modernization component, are now being undertaken. 37 Retroactive financing of up to US$300,000 would be requested from each Bank to help cover eligible start-up expenditures.35 4.8 GOES is eligible to receive single currency loans and anticipates borrowing US$115 million from IBRD on a single currency loan basis during FY96, including US$34.0 million for this project. The loan would be a US dollar single currency loan for 17 years, including 5 years of grace, at the IBRD's standard LIBOR-based rate for such loans. 4.9 Project Financial Monitoring. MINED's Office of International Cooperation Programs (Oficina de Programas de Cooperaci6n Internacional - OPCI) would be responsible for managing and monitoring the project's flow of funds. Though OPCI has had wide experience in externally-financed projects, a recent survey identified some bottlenecks in the area of accounting, and a still extensive flow of funds cycle. To remedy this situation, and to enable OPCI to be fully operational at the project start, the following action plan has been adopted: (a) a joint analysis of the flow of funds cycle with every entity intervening in this process (mainly the External Financing Technical Secretariat (SETEFE) and the Corte de Cuentas), to identify steps to be eliminated; (b) internal reorganization and streamlining of OPCI's present structure, eliminating inefficiencies and reinforcing identified weak points; (c) preparation of a computerized financial data processing system, which will allow integration with the future 14 departmental offices (who would eventually maintain their own accounts) and with SETEFE (to accelerate the disbursement process); and (d) adoption of cost accounting, ensuring a better monitoring of the accounts and the flow of funds. This action plan has already been initiated, and all actions to be taken and investments to be made would be financed through the SSRP. This action plan is expected to be achieved by the end of December 1995, when it will be assessed by a joint IBRD-IDB mission. The completion of the OPCI action plan satisfactory to both Banks will be a condition of effectiveness for IBRD and a condition of disbursement for IDB (paras. 7.4(a), 7.7(c)). 4.10 Revolving Fund in Local Currency. Improvements in the procurement process should improve the quality of the accounting procedure, but also improve the project's cash flow, by reducing the flow of funds cycle from the present level of six to seven months to an expected cycle of three to four months. It is thus necessary to give to the project the necessary liquidity to operate during the four first months of project activities, before the IBRD Special Account (held at and managed by the Central Bank) can operate (see para. 4.27). As was accepted at the start of the SSRP, a Revolving Fund, operated by OPCI, would be opened in the name of the project, with an initial deposit of about US$2.5 million, from the Government as its up-front participation to the project financing. The effective creation of this Revolving Fund would be a condition of IBRD loan effectiveness (see para. 7.4(b)). C. Procurement36 4.11 The project would include procurement of construction and rehabilitation of school infrastructure, textbooks and other school library and reference books, manuals and guides for 35 IBRD retroactive financing will cover expenditures made on or after March 15, 1995. IDB retroactive financing will cover expenditures six months prior to Board Approval. 36 A detailed explanation of the ad hoc procurement procedures will be included in the Loan Agreement between the IDB and the Government 38 teachers and students, educational materials, school furniture and other furniture, vehicles, and consulting services for studies. Procurement of civil works, goods and services would follow the procurement procedures agreed with each Bank. The procedures of both Banks are similar, but not identical. An effort was made to establish similar limits to facilitate MINED's management of procurement processes. Procurement for IBRD-financed contracts would be carried out in accordance with guidelines for procurement of January 1995. Procurement procedures for IDB would be carried out in accordance with guidelines for procurement of September 1994 and a detailed explanation of ad-hoc procurement procedures will be attached to the loan agreement for this project to be signed by GOES. MINED staff acquired substantial experience in handling national and international shopping procedures and preparation of technical specifications during implementation of Loan 3348-ES. MINED would continue to be supported by a procurement agent, and by qualified staff trained under the SSRP project and experienced in IBRD's procurement procedures. In addition, OPCI would be further strengthened to ensure acceptable procedures under the distinct guidelines of the two Banks by contracting one specialist to handle procurement in IBRD-financed contracts and one for IDB-financed contracts. Detailed project procurement and disbursement procedures to manage procurement and ensure acceptable procedures of IBRD and IDB would be included in the Operational Manual to be used by all relevant project executing units. A draft of the Manual would be presented to the Banks for review in December 1995, and the Manual must be put in use as a condition of IBRD loan effectiveness (paras. 7.4(c)). 4.12 All procurement under international competitive bidding (ICB), national competitive bidding (NCB), and contracting of international consultants and consulting firms will be initially undertaken by a procurement agent. MINED would continue to undertake procurement done by national and international shopping and direct contracting. A signed contract with a procurement agent would be a condition for IBRD effectiveness (para. 7.4(d)). Fees for procurement agents' services would be financed under the project. For ICB and NCB, the procurement agent would use the standard bidding documents (SBDs) to be issued by the Banks, with such modifications as agreed by the Banks to be necessary for the purpose of the project. For the purpose of comparing foreign and national bids for goods during ICB evaluation for IBRD financed contracts, national manufacturers would be allowed a margin of preference in accordance with IBRD guidelines. In all procurement carried out by NCB, foreign bidders would be allowed to participate. Prior to the negotiations, MINED prepared draft standard bidding documents, including modified ICB-2 stage documents for library books to be financed by IBRD. Final documents would be put in force by loan effectiveness. 4.13 Procurement arrangements under both Banks are summarized in Table 8 below. Civil Works 4.14 IDB would finance all civil works. Civil works are comprised of construction and rehabilitation of classrooms, rehabilitation of up to three teacher training centers and of a few small administrative buildings throughout the country, mainly in small cities, which would amount to about US$6.6 million. All civil works would be carried out under a management agreement with FIS following IDB standard procedures. As an executing agency for IDB's financed loans, FIS has acquired substantial experience in the procurement of these contracts and in its procurement norms and procedures. Packaging of works contracts would be encouraged, but is 39 not mandated to ensure competition and interest by local contractors. ICB procedures would be used only when packages of works exceed US$1.0 million, although no contract of this size is expected. Contracts costing US$250,000 or more would be done by NCB. Works expected to cost less than US$250,000 would be done by private bidding procedures requiring invitations to at least five contractors/suppliers. Direct contracting in scattered distant rural areas would be carried out for works below US$100,000. Foreign bidders' participation is not expected due to the small amounts and scattered locations of the construction or rehabilitation works. A signed agreement between FIS and MINED for the management of infrastructure and rehabilitation was presented prior to negotiations. Textbooks, Teachers' Manuals, and School Furniture 4.15 IDB would finance procurement of textbooks for grades 1-6, teachers' manuals, school furniture and printing of textbooks for grades 7-9, and distribution services for these materials. Procurement of goods and services costing US$150,000 or less would be done using private bidding procedures37, with invitations to at least five suppliers. In the case of specialized publications, direct purchase would be allowed. NCB procedures, acceptable to the IDB, would be used for procurement of goods costing between US$150,000 and US$250,000. ICB procedures would be used for goods costing more than US$250,000. Procurement through private tender and NCB procedures would be open to international suppliers. Educational Materials, Library Books, Office Furniture and Office Equipment 4.16 IBRD would finance the procurement of library and reference books, laboratory kits and education packages (canasta bdsica) for preschool and basic education students, printing services for instructional booklets for students in preschool and multigrade classes, and distribution services to transport these materials to the local level offices. In addition, some office equipment and furniture would be procured. Library books would be procured following ICB-2 stage procedures, using modified ICB standard bidding documents. NCB would be used to procure packages of goods equal to or less than US$250,000, up to an aggregate limit of US$600,000. National or international shopping, from at least three qualified suppliers, would be used for purchases equal or below US$50,000, up to an aggregate of US$1.4 million. Vehicles 4.17 The project would also finance the procurement of vehicles. IBRD procurement of vehicles, up to an aggregate amount of US$1.2 million, would be purchased using limited international bidding (LIB) procedures acceptable to IBRD. 4.18 For the IDB, for purchases of vehicles costing more than US$250,000, MINED would use ICB. NCB would be used for procurement of vehicles costing between US$150,000 and US$250,000. Private bidding procedures with invitations to at least five suppliers would be used for vehicles costing less than US$150,000. Procurement through private bidder and NCB procedures would be open to international suppliers. 37 One firm could not have individual contracts exceeding an aggregate amount of US$2.0 million. Table & Proew~eme i Arran~ements Mn i C~INCRA ~ated ii Other (08$ millioA)''____________ _____..r_.... Category ICB NCB Other Consulting Services Total IBRD . l)B IBRD IDB IBRD IDB IBRD IDB IBRD IDB Civil Works 6.6' 0.0.' 6.6 .- _____ . ______ .'_____ (5.9) . (0.0). (5.9) Equipment, Vehicles, 0.6 0.8 0.4' 1.3 052 2.3. 1.3 Furniture (0.6)- (0.8) (0.3). (1.2) (0.3) (2.1). (I. 1) Textbooks and 17.8 0.2 20b3 0 0.0 20.0 Manuals , (16.0) (0.2) . (1-7) . (0°0). (17.9) Other Educational I 1.9a. 0.2, 4b1d' 13.5 0.0 Materials (10.7).: (0.2), (1.3). . (12.2) (0.0). Micronutrients 1.2 1.2 0.0. .__ _ _ _ _ _ .__ _ _ _ _ _ (1 .0 ). .__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (1 .0 ) (0.0 ). Training, Tech. Asst. 15.7' 10.0 15.71 10.0 & Studies . . . (14.7) (9.6) (14.7). (9.6) Education Fund 194. 0,0. 1.9 .,_____ .______ '._____ (1.7) ,. (0.0). (1.7) Salaries and 6.2 f. 1.1 6.2, 1.1 Operating Costs i i (4.0) (0.7) i (4.0), (0.7) IDB Inspection and 0.4 0.0. 0.4 Supervision . . (0.4) . (0 0)- (0.4) Total 12.5, 18.6 0.6 0.2 10.1. 12.5 15.7. 10.0 38.9. 41.3 (11.3)'. (16.8) (0.5) (0.2) (7.5). (107) (14.7): (9.6) (340) (37.3 Note: Figures in parentheses are the respective amounts financed by each Bank. ICB - International Competitive Bidding; NCB - National Competitive Bidding a Includes US$3.1 million for library books to be procured under ICB-2 stage procedures. b Includes US$0.2 million for internal distribution costs. c Includes US$1.2 million for vehicles to be procured under limited international bidding. d Includes US$1.2 million procurement of materials to be purchased directly by parent associations (ACEs) with funds transferred by the central government to the schools. e Procurement will be done through limited international bidding. Includes US$0.1 million for distribution costs. f Includes about US$600,000 for consumable office supplies that would be purchased using national shopping procedures. ' Procurement procedures will be those used by the Social Investment Fund under the current IDB loan. 2Procurcment will be done through private bidding (invitation to at least five suppliers). 3 Includes printing of manuals for multigrade classes. 4 Does not involve procurement. tktwo4.xd 41 Micronutrients 4.18 IBRD would finance procurement, inspection and distribution services of micronutrients to be under the nutrition pilot program.38 Procurement of these goods would be done following LIB procedures. Procurement agents would ensure the selection of a list of international laboratories which meet World Health Organization (WHO) quality control requirements and operate under ISO regulations. Micronutrients would be procured in two packages, amounting to approximately US$1.2 million. Technical Assistance and Studies 4.19 The project would finance technical assistance and consulting services to prepare studies, design and provide training, design instructional materials and communication campaigns, and other project support activities. The studies to be performed under the project include, but are not limited to: (a) an assessment of pre-service teacher training needs; (b) an assessment of secondary education; (c) an evaluation of curriculum development; (d) an evaluation of the modernization/decentralization process; (e) an evaluation of the supervision system; and (f) an evaluation of the school feeding program and an assessment of alternative school feeding model methods. For the subcomponents financed by IBRD, individual consultants and consultant firms carrying out technical assistance, including auditing services, would be hired following the IBRD Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency (August 1981). During appraisal technical assistance required to support the components financed by the project were reviewed and agreed with each executing agency. For contracting studies and technical assistance services financed by the IBRD, all executing agencies would use a standard invitation package and contracts as agreed with the IBRD, amended as required for the purposes of the project. Drafts of a standard invitation package and contracts were presented prior to negotiations. Final documents woul be put in place prior to effectiveness. For the subcomponents financed by IDB, IDB's Standard Procedures for Consulting Services would be followed. ICB procedures would be used for consulting services contracts costing US$200,000 or more. NCB procedures, acceptable to the IDB, would be used for consulting services contracts costing between US$100,000 and US$199,999. Consulting services contracting less than US$100,000 would be done through private bidding involving invitations to at least five contractors. Direct invitations and NCB procedures would be open to international consultants. Costs not Involving Procurement 4.20 Approximately 11 percent of project costs, or about US$8.1 million would not involve procurement. These costs include the education fund and operational expenses. Review by IBRD 4.21 Prior review by the IBRD would be required for: (a) all annual procurement plans done by each executing agency, including procurement agents; (b) procurement procedures and 38 Micronutrients are organic compounds essential in minute amounts to the growth and welfare of people, and include such things as vitamin A, iron, and iodine. 42 documentation for all tender packages and contracts for ICB and LIB, and tender packages for the first contract during each year of project implementation for miscellaneous goods done under NCB, regardless of value. It is expected that these procurement arrangements would result in about 52 percent of IBRD-financed contracts by value. All terms of reference for technical assistance and studies would be subject to prior review by the IBRD. Documentation for contracts with consultant firms, valued at US$75,000 and for individual consultants, valued above US$3 5,000, would also be subject to prior review by the IBRD. These thresholds of prior review are justified, based on a careful review of estimated costs and nature of consultant services which are required by the project. All other documentation would be subject to ex-post review during auditing and by IBRD supervision missions on a random basis. Prior Review by the IDB 4.22 The IDB's Country Office would review the first contract for civil works, regardless of value, and all supporting documentation for civil works and goods contracts valued at US$250,000 or more. All other contracts would be subject to ex-post review by country office staff, on the basis of random sampling. Procurement Agents 4.23 NIvNED would enter into a one-year agreement with a procurement agent for the acquisition of goods and services financed by the project. The benefits of using a procurement agent, such as UNDP were evident in the implementation of the SSRP. The reasons to use a procurement agent to assist MINED include: (a) MINED's limited capacity to manage extensive procurement procedures simultaneously; (b) the technical support available to MINED on a daily basis resulting from a procurement agent chosen for its vast experience in the implementation of projects financed by international donors; and (c) the GOES/UNDP general agreement that grants UNDP an exemption from value added tax and exempts UNDP from the jurisdiction of the Corte de Cuentas, allowing for an expedited procurement and contracting process. As a condition to presentation of the program to the IDB Board, MINED will present a satisfactory draft of an agreement between MINED and UNDP (para. 7.5(a)). 4.24 No recent Country Procurement Assessment on El Salvador is available. However, El Salvador's procurement regulations clearly authorize, as a special provision, application of procurement procedures of international financial institutions in the procurement of works, goods and services, where financing of such procurement comes from an international financial institution. D. Disbursements Disbursements of IBRD Funds 4.25 The proposed project will be implemented over a period of five years and is expected to be completed by December 31, 2000 and closed by June 30, 2001. The proceeds of the IBRD loan would be disbursed during a five and a half year period as follows: (a) equipment furniture and vehicles, 100 percent of foreign expenditures, and 90 percent of local expenditures for other items procured locally, excluding taxes; (b) didactic materials and library books, 100 percent of 43 foreign and 90 percent of local expenditures, excluding taxes; (c) staff training, technical assistance, consultancy services, and studies, 100 percent of total expenditures, excluding taxes; (d) micronutrients and food supplements, 90 percent of total expenditures, excluding taxes; and (e) incremental salaries and local long-term consultant costs, travel and per diem costs, maintenance costs, and office supplies costs, at a rate of 90 percent until an aggregate amount of US$1.6 million has been reached, thereafter, disbursements for this category would be made at a rate of 60 percent until the aggregate amount of US$2.5 million has been reached; and the remaining funds would be disbursed at a rate of 30 percent. 4.26 Proceeds of the proposed loan would be disbursed according to the schedule shown in Annex 13 against expenditures that would be submitted to the IBRD and fully documented for contracts valued at more than: (a) US$250,000 for goods; (b) US$75,000 for consulting firms' services; (c) US$35,000 for individual consultants' services; and (d) expenditures under category 5 of the project. Claims for expenditures of lesser amounts would be disbursed against presentation of statements of expenditure (SOEs), for which the supporting documentation would be retained by the MINED for inspection by the Banks and by external auditors. The Government would set up a special account for the IBRD loan in US dollars with an initial deposit of US$2.5 million. Withdrawals from the special account would be supported by the required documentation at the exchange rate prevailing on the date of expenditure. Separate project accounts may be established in MINED for each project executing agency and these would be monitored by OPCI. During negotiations, agreement was reached on the IBRD Special Account and on retroactive financing of up to US$300,000 to cover eligible expenditures for preparation and launching of the proposedproject incurred after March 15, 1995 (para 7.1(c)). Disbursements of IDB Funds 4.27 The proceeds of the IDB loan would be disbursed during a five year period as follows: (a) civil works, 90 percent of expenditures for construction of classrooms and/or rehabilitation, repair and maintenance of existing classrooms, training centers and administrative buildings; (b) equipment furniture and vehicles, 100 percent of foreign expenditures, and 90 percent of local expenditures for other items procured locally, excluding taxes; (c) textbooks, and manuals, 100 percent of foreign and local expenditures, excluding taxes; (d) teacher training, technical assistance, consultancy services, and studies, 100 percent of total expenditures, excluding taxes; and (e) incremental salaries and local long-term consultant costs, travel and per diem costs, maintenance costs, and office supplies costs, at a rate of 90 percent until an aggregate amount of US$0.4 million has been reached, thereafter, disbursements for this category would be made at a rate of 60 percent until the aggregate amount of US$0.5 million has been reached; and the remaining funds would be disbursed at a rate of 30 percent. During negotiations, agreement was reached on the IDB Special Account and on retroactive financing of up to US$300, 000 to cover eligible expenditures for preparation and launching of the proposed project incurred after March 15, 1995 (para. 7.1(d)). 4.28 Proceeds of the proposed loans would be disbursed according to the schedule shown in Annex 13. Given the degree of preparation and the proposed implementation plan, it is recommended that an advance equivalent to 10 percent of the proposed loan be approved to assist the Government to implement project activities during first 120 days. The fund would be replenished upon presentation by MINED of the required documentation. These funds would be 44 deposited in a Special Account that will be held at the Central Bank. Retroactive financing of up to US$300,000 to cover expenditures for the preparation and launching of the proposed project incurred six months prior to Board Approval will be provided. 4.29 The procedures for the management of the Special Accounts and the revolving funds are includes in a manual (Instructivo Unico) that would be reviewed and agreed among all the Government institutions involved. The draft manual was included in MvINED's proposal (see Annex 18). 4.30 OPCI, with the support of the relevant offices of both Banks, will prepare formats for disbursements that will be adequate to comply with the requirements of both Banks. E. Accounting and Auditing 4.31 MTINED would establish and maintain separate accounts and records for each loan adequate to reflect, in accordance with sound accounting practices, the resources and expenditures related to the project. OPCI, at the central level, would maintain a consolidated account of all resources and expenditures under the project. Other sets of records, one for each operating unit, OPCI at the regional level and parents' associations at the local level, would be maintained by each unit, under supervision from the central level, and would reflect the resources and expenditures related to project implementation for their respective programs. Data from the three OPCI regional operating units would be sent to the central level for consolidation purposes. These accounts would be audited annually by private independent auditors satisfactory to the Banks. The audit reports, which would include a separate opinion on the adequacy of statements of expenditures as a basis of loan disbursements, and on the special account and the revolving funds, would be forwarded to the Banks no later than six months after the end of each fiscal year. To support the timely provision of audit reports, MINED will contract the auditing firm at the beginning of each project year to be considered for the auditing exercise. To support the timely provision of audit reports, the private independent auditors would be requested to present mid- year progress reports. The annual audits would also cover a random sample of the records and accounts maintained by parents' associations. During negotiations the Government provided assurances that MINED would: (a) have the records and accounts for each fiscal year audited by independent and qualified auditors, in accordance with generally accepted auditing standards and procedures; (b) furnish to the Banks as soon as available, but in any case not later than six months after the end of each year, a certified copy of the agreed audit reports; and (c) furnish to the Banks such other information concerning the records and accounts as well as the audit as the Banks wouldfrom time to time reasonably request (para. 7. I (e)). 5. PROJECT IMPLEMENTATION AND MANAGEMENT A. Borrower, Guarantor and Executor for the Project 5.1 The borrower and guarantor of the loan will be the Government of El Salvador. MINED will be responsible for the execution of the project. An agreement between the borrower and the executing agency to transfer resources from the loan will be a condition for IDB disbursement 45 (para. 7.7(d)). MINED has experience in implementing programs financed by international donors and its institutional capacity has been evident in the implementation of the SSRP, financed by the IBRD, and the SABE Project, financed by USAID, that are close to completion (early 1996). The size of this loan will demand expanded management capacity within MINED for its efficient implementation. The project provides adequate financing to guarantee that MINED will receive timely, adequate technical support for project implementation. In addition, before disbursements begin, OPCI will complete an action plan to strengthen its capacity to manage and monitor the project's flow of funds (see para. 4.8). B. Project Organization 5.2 The project organization would have two levels: the central level, which would have overall responsibility for project coordination and implementation, and the decentralized level which, throughout the project implementation period, would receive progressively more responsibility for the implementation and delivery of education services. C. Project Management 5.3 Project implementation would be carried out within the existing organizational structure of MINED through the Project Management Office which would be drawn from existing units whose operational and administrative responsibilities are directly linked to project components. Overall responsibility for implementation of the proposed project would be vested in the Minister of Education who would be supported in general policy setting and institutional coordination by a committee composed of the Vice Minister of Education (General Project Director) and Project Component Directors.39 To facilitate project implementation, a Project Manager would be appointed. The Project Manager would report directly to the Vice Minister of Education on the day to day operations of the project, and would be responsible for calling the directors to committee meetings. 5.4 The Ministry of Education, through the Project Manager, would assist, coordinate, monitor and evaluate the activities through the following participating units, each under the direction of a Project Component Director: (a) The Quality Improvement Unit which would be responsible for the implementation of the quality improvement comrponent through its various administrative units. The main responsibilities of the unit would include: improvement of the basic education cuniculum, production and provision of teaching materials and textbooks, in-service training for teachers and supervisors, evaluation of student achievement, revision of the supervision system and provision of nutritional and health programs through schools; (b) The EDUCO Unit which would be responsible for the expansion of the model in rural areas, and reorganization and strengthening of service delivery; 39 MINED directors involved in implementing project activities. 46 (c) A Management Modernization Unit (MM[) would be created which would be responsible for the implementation of the Institutional Modernization Component. The main responsibilities of the MMU would cover: changes and improvements in sector planning, administration, decentralized provision of services, evaluation, supervision and monitoring, a review of the organizational structure and the legal framework, the management information system, and public awareness campaigns. The MMU would include a small Decentralization Unit whose main functions would be to carry out the decentralization process, to provide support to the staff working in the decentralized units in all aspects of the operations; and (d) OPCI which would be responsible for management of the procurement and financial aspects of the project. OPCI's main responsibilities would include: contracting procurement agents, procurement of goods and services under shopping and direct contracting, maintaining the project's financial records and accounts, developing annual plans to be presented to the Ministry of Finance regarding national finance of the project, including maintenance funds and teacher salaries, making transfers to the ACEs, and making payments for goods and services required by the project. 5.5 The Project Management Office would manage the Pilot Basic Education Fund and devise adequate mechanisms to ensure that the Fund reaches its intended beneficiaries quickly and efficiently. 5.6 The proposed structure is deemed appropriate to ensure efficiency in project implementation because implementation authority is retained by the respective line and staff departments of MINED. MINED will require technical support during project implementation and the proposed project provides sufficient funds to guarantee adequate and timely support. The proposed project would include financing for contracting specialized staff and/or long-term consultants, and travel and per diem costs for project monitoring and supervision. Evidence of the establishment of the Management Modernization Unit and the Quality Improvement Unit in the Project Management Office will be a condition for IDB disbursement (para. 7.7(e)). During negotiations, agreement was reached on the appointment of key technical and administrative staff and/or consultants (para. 7.1Wf)). This condition was also required for IDB board presentation (para 7.5(b)). Other Agencies Involved in Project Implementation 5.7 MINED will sign an agreement with the FIS to ensure timely and efficient implementation of all civil works financed under the project. FIS has extensive experience in the construction and rehabilitation of small education infrastructure in isolated and scattered locations. FIS has been financed extensively by international donors (including four IDB loans) and is very familiar with IDB's procurement norms and procedures (para. 4.13). In addition, FIS has put in place procedures to deal with land tenure issues and for insuring technical construction specifications are met. 5.8 MINED will contract with a procurement agent to handle the procurement of goods and services that require ICB, NCB, ICB-2 stage, LIB, and contracting of international consultants and consulting firms (para. 4.23). 47 D. Preparation and Review and Annual Work Programs and Budget 5.9 The project implementation units, with the Project Manager's support and with OPCI's assistance, would prepare an annual work program for the project that would include the proposed activities for the year, their timing, and budget. Under SSRP, MINED has acquired considerable experience in the preparation of annual work programs that are monitored periodically to ensure that performance targets are being met. As responsibilities are delegated to lower levels of MINED administration, the relevant units would be required to prepare annual work programs and budgets that would be monitored by the central level. These work programs would cover the period January through December of each year and their preparation would take place early enough to enable MINED to incorporate the total budgetary requirements of the project in its budget proposal for the following year. E. Annual and Mid-Term Reviews by the Banks 5.10 Throughout the project implementation period, annual reviews would be undertaken jointly by MINED, MICDES, IBRD, and IDB no later than September 30 of each year to have an opportunity to assess project impact and performance, and to reach agreement on necessary adjustments. The cost estimates prepared for the various components (Annex 11) and the key monitoring indicators and implementation targets (Annex 13) would serve as a basis for project implementation planning, and would be updated annually by MINED in preparation for the annual reviews. The annual project implementation review would: (a) analyze progress made during the previous year in project execution and in attaining its objectives, based on the key monitoring indicators for the project; (b) analyze and agree on the proposed annual work plans, specific project progress reports, and budgetary requirements for the following year of project implementation to ensure the adequacy of counterpart funding; (c) assess the effectiveness of project management and coordination and discuss adjustments to be made in the project's implementation schedule or targets; and (d) review progress in implementation of the ministry's decentralization and its coordination with the Government's overall program. During negotiations, the Government provided assurances that MINED would. (a) conduct, jointly with MICDES, IBRD, and IDB, annual project implementation reviews in September of each year, beginning in 1996; and (b) by the same date each year, beginning in 1996, submit to the Banks annual progress reports on the implementation of the project in accordance with targets established in previous annual work and investment plans, including the proposed budgetary requirements for project implementation during the subsequent year (para 7.1(g)). 5.11 The third annual review would be the mid-term review and would be undertaken no later than September 30, 1998. It would assess overall project performance and initial impact in the light of project objectives and MINED policies. The key areas to be covered, in addition to all aspects of project implementation covered during the annual reviews include: (a) Expansion, reorganization and strengthening of the EDUCO model: Number of new sections created and converted from the traditional system would be reviewed. NGO and other private organization performance in the delivery of services to ACEs, and results of the school maintenance program would be analyzed to 48 determine the efficacy of the programs. Careful review of the improved mechanisms to transfer resources to the ACEs would be made, as well as of the impact of teacher incentives included in the new teacher salary structure and a thorough assessment of EDUCO's costs vis-a-vis the traditional system. In addition, close attention will be given to the existing procedures that guarantee adequate financing for maintenance of education infrastructure. (b) Quality improvement: Progress in development of improved curricula for basic education, especially in the 3rd cycle as well as in the textbook development program for all grades of basic education would be analyzed. The implementation of the pilot multigrade program would also be evaluated. Efficiency in the acquisition and distribution of didactic materials for teachers and students would be reviewed. An evaluation of the achievements and effectiveness of the training program will be undertaken. Preliminary results of the student assessment program would be analyzed to take measures to address any deficiencies that may be found. The pilot nutrition program would be reviewed to ensure that coordination mechanisms between MINED and MOH are adequate for the program. (c) Institutional modernization: The functioning of the human resources, statistics, budgeting, infrastructure and procurement subsystems at the departmental level, in the pilot departments would be reviewed, including the actual costs associated with the decentralized provision of education services. The reports produced by the information system for the above subsystems would be analyzed. The implementation of local planning and programming in some urban and rural schools as well as in the pilot departments would be evaluated. The operating and administrative manuals would be reviewed. In addition, the implementation of the human resources data base would be reviewed. The implementation of the supervisor training program, as well as the equipping of their offices would be reviewed. Particular attention will be given to the consistency between the modernization of MINED and the Public Sector Reform, including civil service conditions, decentralization, and accounting procedures. The communication strategy and its efficiency will be assessed. Finally, the procedures used to allocate funds for projects financed by the Pilot Basic Education Fund would be evaluated with respect to their efficiency and effectiveness. (d) Public education financing: Particular attention will be given to education expenditure as a share of both GDP and central Government expenditure. The composition of expenditures by academic level and expenditure category would be reviewed. An analysis of the evolution of teacher salaries and an implicit incentive structure would be undertaken. Finally, the sources of funding of other investments would be analyzed. 49 5.12 On the basis of the above in-depth review, the MINED and the Banks would agree on adjustments to project design and implementation, as necessary. During negotiations, the Government provided assurances that: (a) the in-depth mid-term review would cover all aspects of project implementation; (b) it would be conducted jointly by MINED, MICDES and the Banks, and (c) on the basis of this review, action plans, satisfactory to the Banks, would be prepared and initiated by January 1, 1999 (para. 7. 1 (h)). F. Loan Supervision 5.13 Project supervision will be coordinated by the IBRD task manager and the IDB team leader and is expected to take place at least twice a year, jointly, by the two Banks.40 The main purpose is to monitor progress of the different project components. This supervision will require an estimated 20 staff-weeks per year. Although MINED has project implementation experience, this project would require significant supervision because of its wide scope. The supervision teams would be a combination of the Banks' staff4' and consultants with the required technical expertise and experience in the operation of similar projects in Latin America and other regions. The participation of team members of the proposed joint IBRD/IDB Public Sector Modernization Project will be requested when necessary. It is expected that the main areas of expertise required would be education and education planning, student achievement testing, institutional development, management information systems and communications. Annex 15 includes a project supervision strategy. 5.14 The IDB Country Office will perform the continuous task of monitoring and supervising the proposed project for the IDB. The IDB Country Office will be responsible for all supervision tasks, coordinating with the Project Team. 5.15 Since annual evaluations of the proposed project will be undertaken (including an in-depth mnid-term review) and a loan completion report is expected, it was decided that an additional ex- post evaluation would not be required. 6. PROJECT BENEFITS AND RISKS A. Project Benefits 6.1 Faced with the urgent need to improve coverage and quality of basic education in El Salvador, the project would support the efforts of the Government to undertake a balanced process of improving equity, quality and efficiency of the school system. The project would target resources to poor and vulnerable groups, would improve learning achievements, and promote the efficiency of resource allocation. At the same time it would strengthen the institutional capacity of N4INED to provide services and to evaluate and monitor education policies and programs. The education flow wastage could be dramatically cut by improving the quality of services and by the existence of minimal nutrition conditions for the students. The 40 For IDB, the annual review mission will take place in the second semester of each year. Additionally, during execution, supervisionlmonitoring missions will take place in the first semester of each year. 41 Staff from headquarters and the country office in the case of IDB. 50 project is designed to produce significant reductions in repetition and dropout rates through the expansion of preschool education, better qualified teachers, improved availability of instructional materials, an updated curriculum, a more effective learning environment and direct involvement of parents, teachers and the community in the management of schools. Decentralization and community participation will boost responsiveness by teachers and administrators since all will be sharing administrative responsibilities and transparency will promote accountability at all levels. The proposed project will support the Public Sector Reform by establishing the conditions for the MINED to be an active and responsive actor in the process while being consistent with the general guidelines of the Public Sector Reform. The program will also help to identify efficient methods and procedures to deliver education services that will be a seed for future improvements within the sector. 6.2 The socio-economic viability and efficiency of the project is supported on the basis of the high average return of basic education in El Salvador, and the solid results obtained in a preliminary exercise to estimate the marginal returns of the Government program to expand coverage in rural preschool and basic education (20 percent, see Annex 3). These results are based on the expected economic rate of returns of students that achieve one more year of education and also the fiscal savings resulting from higher internal efficiency. The result is very conservative because it overlooks the externalities of the project and the positive effect of a more efficient and responsive Ministry of Education. 6.3 The financial benefits of the project are represented in GOES' selection of a variable rate US dollar single currency loan from the IBRD to improve its overall liability management and reduce its risks. The Government considers US dollars to be an appropriate currency for its debt management strategy, and prefers the standard country repayment terms for LIBOR-based single currency loans compared to the shorter final maturity for fixed rate single currency loans. B. Impact on Women 6.4 Female students slightly outnumber male students at both the preschool and basic education levels (para. 2.8). Curriculum reform under the SABE project has sharpened the focus on the specific needs of women and the key role of educated women in reducing fertility, promoting family values, and guiding and encouraging the education of young children. The project will support these reform efforts by eliminating the remaining gender stereotypes in school texts, improving teacher quality, and introducing career guidance. The EDUCO model directly involves a significant number of mothers in school boards and decision making processes. By expanding the EDUCO model, women will be increasingly active in community activities and will benefit from the training programs that will improve their skills in education. C. Environmental Impact 6.5 The project is not expected to have direct environmental effects, and has been classified as C for IBRD and Category II for IDB.42 Civil works will be restricted to recovering existing schools. Education materials produced by the project will include appropriate environmental 42 IDB classification was approved by CMA Short Procedure on December 12, 1994. 51 topics. Therefore, an improved basic education will contribute to make children and their parents more aware of the environmental concerns and more receptive to public campaigns for conservation and protection of the environment. D. Project Risks 6.6 Although the project has been designed with a systemic and balanced approach, the technical viability is highly contingent on the participation of qualified technical support during the project. The end result, however, will be increased equity through improvements in quality and the transformation of the structure of incentives leading to more efficiency. 6.7 The fiscal requirements to support the modernization of basic education will depend on the assumptions made regarding growth and real recovery of teachers salaries (Annex 2). Under a conservative scenario the financial viability of the program will require that public sector spending in education be increased by 0.6 percent of GNP to a total of 2.5 percent.43 As noted in Annex 2 the macroeconomic and fiscal risks leading to inadequate funding are low. The Government has been adamant in declaring its commitment to fund the program, even under a less favorable scenario that will require an additional fiscal effort to the detriment of other sectors. During negotiations, a letter signed by the Minister of Finance assuring the Borrower's commitment to provide the requiredfunds, including an annual increase in the education ordinary budget, was received (para. 7.2(b)). During Annual Reviews, the provisions for adequate counterpart funds for the project and the fulfillment of agreed budgetary increase will be condition for the approval of the Annual Work Program. 6.8 Due to the comprehensive scope of the operation, the main risk will be the limited capacity of MINED to implement the program. However, MINED has proven to be one of the most dynamic ministries in El Salvador and has shown its capacity to respond to increasingly demanding tasks under the SABE Project and the SSRP. This risk will be reduced, and the institutional viability secured, through continuous technical assistance that will strengthen the institutional capacity of MINED. 6.9 The project relies on the EDUCO model for providing services in rural areas. The expansion of EDUCO will introduce new challenges to maintain its efficiency, an adequate incentives structure, and timely responsiveness to the demands of the community. The expansion of EDUCO will also have to be matched with the revision of the incentive structure for all teachers (EDUCO and traditional) to avoid the conflict that could arise from a dual labor regime for teachers. The program addresses bothissues to minimize those risks. 6.10 The introduction of a new teacher incentives system, the establishment of a performance assessment system, and the rationalization of MINED staff could create political tensions between the GOES/MINED and the teachers, supervisors, principals and MINED staff. The political support for the modernization program of MINED, the support of the Comisi6n Nacional de Educacion, Cienciay Desarrollo, and the introduction of an active communication campaign will reduce the risk of a confrontation with teachers. 4 Five percent if economic growth is half of what is predicted in MIPLAN's long term plans. 52 6.11 The decentralization process bears the risks of an inadequate articulation between different levels of operation. The design of pilot programs and the consideration of lessons learned in other Latin American experiences when designing the implementation process are the best ways to limit those risks. E. Program Objective Category 6.12 The proposed project, in the human resources development category, is a program of national and targeted interventions. The project would be an integral part of El Salvador's antipoverty strategy through its assistance to improve coverage and quality of basic education services for the poorest groups in the country. It will target poor children in rural and urban marginal areas through a ranking system based on prevalence of malnutrition, repetition rates for first grade, net enrollment rates for first grade, and percentage of overage students. The non- targeted actions of quality and efficiency will be circumscribed to improve the public education services at preschool and basic education levels. Following the guidelines of the IDB's Eighth Replenishment Poverty Targeting Mandate, this project is a poverty targeted loan. -7. AGREEMENTS REACHED AND RECOMMENDATION 7.1 During negotiations, agreement was reached: (a) on the terms of reference and schedule for the modernization of MINED, including key staff at the department level (para. 3.29); (b) that the required funds for incremental teacher salaries as established in the annual work plans would be included in the MINED budget for the following year (para. 4.5); (c) on the IBRD Special Account and on retroactive financing of up to US$300,000 to cover eligible expenditures for preparation and launching of the proposed project incurred after March 15, 1995 (para. 4.27); (d) on the IDB Special Account and on retroactive financing of up to US$300,000 to cover eligible expenditures for preparation and launching of the proposed project incurred after March 15, 1995 (para. 4.28); (e) that MINED would: (i) have the records and accounts for each fiscal year audited by independent and qualified auditors, in accordance with generally accepted auditing standards and procedures; (ii) furnish to the Banks as soon as available, but in any case not later than six months after the end of each year, a certified copy of the agreed audit reports; and (iii) furnish to the Banks such other information concerning the records and accounts as well as the audit as the Banks would from time to time reasonably request (para. 4.32); (f) on appointment of key technical and administrative staff and/or consultants and their terms of reference (para. 5.6); 53 (g) that MIvNED would: (a) conduct, jointly with MICDES, IBRD, and IDB, annual project implementation reviews in September of each year, beginning in 1996; and (b) by the same date each year, beginning in 1996, submit to the Banks annual progress reports on the implementation of the project in accordance with targets established in previous annual work and investment plans, including the proposed budgetary requirements for project implementation during the subsequent year (para. 5.10); (h) that: (i) the in-depth mid-term review in September 1998 would cover all aspects of project implementation; (ii) it would be conducted jointly by MINED, MICDES and the Banks, and (iii) on the basis of this review, action plans, satisfactory to the Banks, would be prepared and initiated by January 1, 1999 (para. 5.12); and (i) on the Development Objectives for the project (Annex 14). 7.2 During negotiations: (a) a -signed agreement (convenio) with FIS to guarantee the timely construction of new schools was presented (para. 3.7); and (b) a letter signed by the Minister of Finance, acceptable to the Banks, assuring the Borrower's commitment to provide the required funds for the project including an annual increase in the education ordinary budget was received (para. 6.7). 7.3 As a dated covenant, the borrower will: (a) select the local university/research center to develop the education assessment system no later than January 30, 1996 (para. 3.21). 7.4 As conditions for IBRD loan effectiveness: (a) the OPCI action plan will be completed to the satisfaction of both Banks (para. 4.9); (b) the Government will present evidence that the Revolving Fund had been created (para. 4.10); I (c) the Operational Manual, satisfactory to both Banks, will be submitted to the Bank (para. 4.11); and (d) a signed contract with a procurement agent would be presented (para. 4.12); 54 7.5 Conditions for IDB Board presentation: (a) MINED will present a satisfactory draft of an agreement between MINED and UNDP (para. 4.24); and (b) key technical and administrative staff and/or consultants and their terms of reference would be presented (para. 5.6). 7.6 Conditions for IBRD disbursement: (a) for IBRD disbursement for the Institutional Modernization and Strengthening component, MINED will present the work plan for the staff development activities (para. 3.28(f)). 7.7 Conditions for IDB disbursement: (a) for the Expansion of Preschool and Basic Education in Rural Areas subcomponent, MINED will present assurances of the continuance of the school maintenance program for rehabilitated schools (para. 3.9); (b) for the Basic Education Program Fund subcomponent, the Operational Manual for the Fund, including the eligibility criteria, will be agreed with the Banks and put in place by MINED (para. 3.33); (c) the OPCI action plan will be completed to the satisfaction of both Banks (para. 4.9); (d) an agreement between the borrower and the executing agency to transfer resources from the loan (para. 5.1); and (e) evidence of the establishment of the Management Modernization Unit and the Quality Improvement Unit in the Project Management Office (para. 5.6). 7.8 Recommendation. Subject to the above assurances and conditions, the proposed project would constitute a suitable basis for an IBRD loan of US$34.0 million and an IDB loan of US$37.3 million for El Salvador. 55 8. ANNEXES 1. Basic Data 2. Basic Education Public Funding and Financial Impact of the Project 3. Economic Analysis 4. Social Assessment: Summary of Main Results 5. Proposals for the Modernization of the Education Sector Within the Modernization of the Public Sector 6. Prioritization of Municipios 7. Expansion of Access to Preschool and Basic Education Component 8. Improvement in Education Quality Component 9. Institutional Modernization and Strengthening Component 10. Project Administration 11. Project Costs 12. Tentative Procurement Plans 13. Disbursements 14. Performance Indicators 15. Terms of Reference for Project Review and Supervision Schedule 16. Project Implementation Schedule 17. Education Projects Funded by Inter-American Development Bank 18. List of Documents in the Project File 56 Annex 1 Basic Data EL SALVADOR BASIC EDUCATION MODERNAZATION PROJECT BASIC DATA Table 1. Preschool Enrollment Data 1993 Public 47,615 44,410 92,025 4-5 29,826 24,607 54,433 6 17,7891 19,8031 37,592 Private 30,880] 3,143 34,023 4-5 19,912 1,961 21,873 6 10,968 1,182 12,150 Total 78,495 47,553 126,048 4-5 49,738 26,568 76,306 6 28,757 20,985 49,742 Population 170,703 193,960 364,663 4-5 113,388 128,974 242,362 6 57,315 64,986 122,301 Deficit 92,208 146,407 238,615 4-5 63,6501 102,406 166,056 6 28,558 44,001 72,559 Net Enrollment Rate 45.98% 24.52% 34.57% 4-5 43.87% 20.60% 31.48% 6 50.17% 32.29% 40.67% Note: Includes EDUCO Enrollment Source: Ministry ofEducation, Information Unit Table 2: Basic Education Enrollment 1993 Urban Rural Total Urban Rural Total Urban Rural Total Public 334,119 421,962 756,081 117,368 45,492 162,860 451,487 467,454 918,941 Correct age 257,035 319,124 576,159 74,412 26,954 101,366 331,447 346,078 677,525 Over/underage 77,084 102,838 179,922 42,956 18,538 61,494 120,040 121,376 241,416 Private 93,565 13,832 107,397 39,014 3,352 42,366 132,579 17,184 149,763 Correct age 80,579 11,550 92,129 29,365 2,466 31,831 109,944 14,016 123,960 Over/underage 12,986 2,282 15,268 9,649 886 10,535 22,635 3,168 25,803 Total 427,684 435,794 863,478 156,382 48,844 205,226 584.066 484,638 1,068,704 Correct age 337,614 330,674 668,288 103,777 29,420 133,197 441,391 360,094 801,485 Over/underage 90,070 105,120 195,190 52,605 19,424 72,029 142,675 124,544 267,219 Population 3q6,500 427,872 804,372 194,126 212,413 406,539 570,626 640,285 1,210,911 Deficit 38,886 97,198 136,084 90,349 182,993 273,342 129,235 280,191 409,426 Net Enrollment Rate 89.67% 77.28% 83.08% 53.46% 13.85% 32.76% 77.35% 56.24% 66.19% Gross Enrollment Rate 113.590/o 101.85% 107.35% 80.56% 22.99% 50.48% 102.36% 75.69% 88.26% Notes: Correct age for Istl2nd Cycles (grades 1-6) is 7-12 years. Correct age for 3rd Cycle (grades 7-9) is 13-15 pars. Over/underage are children over or under the correct age for the cycle. Deficit is calculated as pqoulation for the correct age group minus the enrollment for the correct age group. Enrollment counts for IstV2nd Cycles includes EDUtCO enrollment Source: Ministry of Education, Information Unit Ca Z m X 1._1sup2%-9I Table 4: Basic Education Enrollment 1993 Public Sector, Rural Zone Age 1 2 3 4 5 6 7 8 9 Total 5 839 839 6 11,755 760 12,515 7 28,853 8,892 959 38,704 8 16,274 16,833 8,881 1,016 43,004 9 8,041 10,842 14,372 7,814 953 42,022 10 4,776 7,228 11,356 13,748 7,289 915 45,312 11 2,679 4,312 7,472 11,083 12,708 6,313 865 45,432 12 1,749 3,003 5,492 8,761 11,734 12,692 6,776 869 51,076 13 819 1,559 3,265 5,743 8,550 11,513 12,654 6,049 751 50,903 14 308 601 1,477 2,871 4,875 7,462 10,768 11,686 5,647 45,695 ] 5 97 225 553 1,278 2,413 4,298 7,018 9,563 10,280 35,725 16 47 83 186 416 922 2,021 3,867 6,180 8,352 22,074 17 23 23 48 152 302 720 1,585 2,956 4,787 10,596 18+ 84 61 82 106 175 367 939 1,901 3,875 7,590 in ~~~~~~~..' . ' .. - .'' ".- ..."'''-' ''''-.,-Xi .---.'. ..-... Underage 12,594 9,652 9,840 8,830 8,242 7,228 7,641 6,918 6,398 77,343 Overage 34,897 27,937 29,931 30,410 28,971 26,381 24,177 20,600 17,014 240,318 Correct age 28,853 16,833 14,372 13,748 12,708 12,692 12,654 11,686 10,280 133,826 Underage 16.50% 17.74% 18.17% 16.66% 16.51% 15.61% 17.18% 17.65% 18.990/0 17.13% Overage 45.71% 51.33% 55.28% 57.39% 58.03% 56.98% 54.36% 52.55% 50.50%/o 53.23% Correct age 37.79%/ 30.93% 26.54% 25.95% 25.46% 27.41% 28.45% 29.81% 30.51% 29.64% Source: Ministerio de Educacion, Oficina de Planificaci6n Educativa, 1994. Z uz Table 4: Basic Education Enrollment 1993 Public Sector, Rural Zone ......... ... .. ....~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ......................................................... .. Age 1 2 3 4 5 6 7 8 9 Total 5 1,624 1,624 6 14,279 569 14,848 7 43,604 6,221 377 50,202 8 31,892 17,797 4,574 401 54,664 9 19,411 18,433 12,131 3,600 395 53,970 10 12,983 15,494 14,341 9,626 3,124 315 55,883 11 7,611 11,426 12,065 11,244 7,608 2,640 197 52,791 12 5,316 8,581 10,037 10,923 9,995 6,971 1,913 180 53,916 13 2,893 5,475 6,958 7,958 8,518 8,347 4,540 1,636 154 46,479 14 1,169 2,492 3,602 4,694 5,512 6,384 4,945 3,793 1,359 33,950 15 504 1,160 1,614 2,277 3,011 3,999 3,579 3,862 3,089 23,095 16 237 488 630 1,022 1,376 2,079 2,259 2,747 2,972 13,810 17 91 203 270 346 577 850 1,043 1,505 2,123 7,008 18+ 90 206 200 257 315 550 713 1,012 1,871 5,214 . ....... ...... .... . ..1 .. Underage 15,903 6,790 4,951 4,001 3,519 2,955 2,110 1,816 1,513 43,558 Over age 82,197 63,958 49,717 38,721 29,304 22,209 12,539 9,126 6,966 314,737 Correctage 43,604 17,797 12,131 9,626 7,608 6,971 4,540 3,793 3,089 109,159 Underage 11.22% 7.67% 7.41% 7.64% 8.70% 9.20% 11.00% 12.32% 13.08% 9.32% Over age 58.01% 72.23% 74.43% 73.97% 72.48% 69.11% 65.34% 61.93% 60.22% 67.33% Correct age 30.77% 20.10% 18.16% 18.39% 18.82% 21.69% 23.66% 25.74% 26.70% 23.35% Source: Ministerio de Educaci6n, Oficina de Planificaci6n Educativa, 1994. a, a) Co. > nz Oz 60 ANNEX 1 Basic Data Table S. ENROLLMENT RATES BY DEPARTMENT, 1993 (percent) Ahuachapan 9.9 62.3 21.1 50.2 125.1 66.7 56.2 139.2 74.5 Santa Ana 20.1 55.0 35.8 70.3 92.7 79.8 76.4 101.9 87.2 Sonsonate 16.0 50.8 29.6 59.6 116.5 81.3 66.0 129.8 90.3 Chalantenango 44.1 70.5 52.8 68.4 90.3 76.1 77.4 104.4 86.9 La Libertad 25.0 60.5 38.9 70.1 97.8 81.2 82.9 109.5 93.5 San Salvador 38.3 56.4 52.0 95.8 73.3 78.3 106.1 81.7 87.2 Cuscatlan 29.8 63.0 42.7 63.4 145.4 93.4 72.8 164.8 106.5 LaPaz 21.8 60.7 34.5 65.5 116.9 83.2 72.6 137.8 95.1 Cabanas 19.4 41.8 26.0 65.2 92.5 73.6 72.5 105.4 82.6 San Vicente 42.1 69.5 52.8 71.0 107.4 86.0 83.0 126.8 101.1 Usulutan 29.6 69.2 42.9 59.6 109.7 78.7 68.6 126.2 90.6 San Miguel 33.3 51.3 41.1 72.9 94.1 82.3 85.6 108.2 95.5 Morazan 20.0 41.4 26.2 39.6 112.4 58.3 44.6 130.0 66.5 LaUnion 27.3 81.2 38.4 65.1 109.4 75.3 71.6 124.0 83.7 5 A .~~~~~~ 4~~~4*~~~ 5~~w .. . ... . Gross enrollnmnt for Buic Education. .,-rateXs Table 6. TRANMSITION RATES BY DEPARTMENT, 1993 (percent) ....~... ~ . .... . .. . .. . . .. . .. . . .... ........ .... ..... .... .... ..... .. ... . Ahuadupan 16.7 6.1 3.8 5.0 3.7 1.6 1.2 0.7 0.2 14.1 - 7.7 0.7 3.3 2.6 11.4 0.4 2.8 SantaAna 16.4 6.0 5.0 4.1 3.3 4.3 3.6 1.9 0.6 12.7 1.4 0.4 - 2.8 - 7.6 2.4 3.2 Sconate 20.5 9.2 6.6 4.6 3.6 3.2 2.6 1.9 0.6 11.4 0.5 4.3 3.6 7.1 8.9 11.0 1.8 2.6 Chalantenan 23.0 11.1 8.6 7.1 5.3 6.3 4.9 2.7 0.9 14.2 0.1 6.5 2.0 7.3 - 10.0 5.9 7.3 LaLibertad 19.1 8.1 6.1 5.1 3.5 2.8 2.6 1.7 0.6 10.3 0.7 0.2 1.3 4.0 3.7 11.3 9.8 10.4 SonSalvador 19.5 9.9 6.8 5.7 4.1 3.7 2.3 1.5 0.7 11.3 .- - - 2.7 4.5 6.7 11.6 11.9 Cuscatlan 24.1 9.1 6.9 4.4 4.1 2.6 2.0 2.0 0.4 9.2 - - 10.3 3.8 10.2 7.0 11.0 12.2 LA Paz 24.6 10.9 9.2 6.6 3.7 3.9 3.9 2.2 0.5 9.9 3.1 - 7.4 -- - 7.9 14.7 15.9 Cabanm 27.9 11.8 8.6 5.9 3.4 3.3 4.3 1.5 0.5 13.9 - 2.6 1.7 7.7 7.9 13.6 9.5 10.0 San Vicente 25.0 95 7.9 52 3.4 4.7 3.5 1.8 1.6 14.0 0.7 5.1 1.5 2.8 -- 1.3 7.4 7.0 Usulutan 18.4 6.6 3.2 3.8 1.8 1.4 1.2 0.4 0.2 19.9 - 9.5 4.4 3.2 -- 6.0 9.0 8.8 SanMiguel 21.9 7.0 5.2 3.8 1.7 1.7 1.1 0.7 0.3 14.2 3.5 3.4 2.4 5.9 1.8 92 3.1 3.0 Morazn 23.4 7.6 6.1 4.5 2.1 1.3 0.7 0.9 0.1 13.6 6.0 - 10.9 20.3 - 8.2 13.1 13 4 LaUniwn 23.5 10.2 5.7 4.9 3.0 1.5 1.0 0.5 0.2 16.5 0.2 5.9 - 31 1.1 9.4 5.2 5.0 ~.__ K. . . . K 1. : . t. >.. . .. . *2: $ : I:*.::. ............M: *t: : > . ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~ ..... *.'*: ........ Ahuachapan 69.2 96.9 88.5 94.3 93.0 95.8 87.4 98.9 97.0 Santa Ana 70.9 92.6 94.6 96.3 93.9 98.3 88.8 95.7 96.2 Scnsonate 68.1 903 89.1 91.8 89.3 87.9 86.4 96.3 96.8 Chalantenango 62.8 88.9 84.9 91.0 87.4 102.4 85.1 91.3 91.8 LaLibertad 70.6 91.2 93.6 936 92.6 93.5 86.1 88.5 89.0 San Salvador 69.2 90.9 93.5 94.9 93.2 91.8 91.0 87.0 87.5 Cuscatlan 66.8 93 8 93.2 85.3 92.1 87.2 91.0 86.9 87.4 La Paz 65.4 86.0 94.4 86.0 97.5 108.6 88.2 83.1 83.6 Cabaas 58.2 91.5 88.8 92.3 88.8 88.8 82.0 89.0 89.5 Son Vicente 61.0 89.8 87.0 93.3 93.8 95.9 95.3 90.9 91.4 Usulutan 61.7 94.1 87.2 91.8 95.0 99.3 92.8 90.6 91.1 Son Mguel 63.9 89.6 91.4 93.8 92.4 96.5 89.8 96.2 96.7 Mcz n 63.0 86.4 96.6 84.6 77.6 107.1 91.1 86.0 86.5 La Unin 60.0 89.6 88.5 96.6 93.8 97.4 89.6 94.3 94.8 q4 w01 lb I-. 62 ANNEX 1 Basic Data RURAL URBAN Traditional EDUCO Traditional TOTAL Preschool 813 593 1,406 Basic Educations 2,471 878 3,349 Secondary Education 14 128 142 _ m X W ' m '.,..2~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~......... ~~~~~~~~~~......... .. .........j ...... .................. ....... Preschool 1,060 394 1,472 2,926 lst/2nd Cycles,,d 13,542 917 9,674 24,133 3rd Cyclee 1,573 3,497 5,070 Secondary Education 71 1,518 1,589 Preschool 1,066 394 907 2,367 1st/2nd Cyclesod 7,228 917 10,822 18,967 3rd Cyclee 1,408 3,596 5,004 Secondary Education 50 1,284 1,334 _ _ __............ District 210 Department 14 B Basic Education covers grades 1 through 9. b A section is the unit (students and classroom) administered by a teacher. Ist/2nd Cycles of Basic Education cover grades 1 through 6. d EDUCO sections, teachers and students are in the 1st cycle only (grades 1 through 3). 3rd Cycle of Basic Education covers grades 7 through 9. f Estimations derived from the specifications of hours/class established in the 1993 Salary Law. Source: Ministerio de Educaci6n, Oficina de Planiflcacifn Educative, 1994. 63 ANNEX I Basic Data Table 8. Public Sector: Preschool and Primary Education PUBLIC PRESCHOOL 47,615 44,410 12,608 28.4% Deficit (to be covered by Public Sector) 92,208 146,353 146,353 100.0% Total to be covered by Public Sector 139,823 190,763 158,961 83.3% Public Sector Deficit % 65.9% 76.7% Private Preschool 30880 3,143 _ _ Total 170,703 170,703 _ _ ___ Net Enrollment Rate (including private) 46.0% 27.9% = = PUBLIC BASIC (lstl2nd CYCLES)b 257,035 319,124 29,304 9.2% Deficit (to be covered by Public Sector) 38,886 97,198 97,198 100.0% Total to be covered by Public Sector 295,921 416,322 126,502 30.4% Public Sector Deficit % 13.1% 23.3%°/ Private Basic (lst/2nd Cycles)b 80,579 11,550 Total 376,500 427,872 Net Enrollment Rate (including private) 89.7% 77.3% == PUBLIC BASIC (3rd CYCLE)b 74,412 26,954 Deficit (to be covered by Public Sector) 90,349 182,993 Total to be covered by Public Sector 164,761 209,947 Public Sector Deficit % 54.8% 87.2% _= Private Basic (3rd Cycle)b 29,365 2,466 Total 194,126 212,413 Net Enrollment Rate (including private) 53.5% 13.9% a EDUCO counts included in rural totals. b Correct age students only. Sources: Ministry of Education, Infornation Unit World Bank. 1994. "El Salvador, Community Education Strategy: Decentralized School Management." 64 ANNEX 1 Basic Data Table 9. Public Sector Teachers and Sections in Preschool and Basic Education Students 47,6157 44,410| 12,608| Teachers 907 1,460| 394 Sections 1,472 1,454. 394 Teachers/Students 0.02 0.03 0.03 Students/Section 32.35 30.54 32.00 Sections/Teacher 1.62 1.00 1.00 Students 334,119 421,962 29,304 Teachers 10,822 8,145 917 Sections 9,674 14,369 394 Teachers/Students 0.03 0.02 0.03 Students/Section 34.54 29.37 74.38 Sections/Teacher 0.89 1.76 0.43 Students 117,368 45,492____ Teachers 3,596 1,408 ____ Sections 3,497 1,573 Teachers/Students 0.03 0.03 ____ Students/Section 33.56 28.92 Sections/Teacher 0.97 1 .12 Note: Calculations of Teachers/Students, Students/Section and Sections/Teache They do not take into account teachers who teach more than one section. ' EDUCO counts included in rural totals Sources: Annex 1, Tables 1,2, 7, and 8. 65 ANNEX 1 Basic Data Table 10. Teacher Population by Level, 1994 ._.PIPeW~# __~t~S<{X~t%1f.. Ahuachapan 841 167 40 1,048 Santa Ana 1,830 436 96 2,362 Sonsonate 1,070 287 72 1,429 WESTERN REGION 3,741 890 208 4,839 Chalatenango 1,037 150 66 1,253 La Libertad 1,816 468 99 2,383 San Salvador 4,557 1,616 396 6,569 Cuscatlan 755 157 30 942 La Paz 1,229 194 68 1,491 CabaiSas 665 63 25 753 San Vicentes 930 183 63 1,176 CENTRAL REGION 10,989 2,831 747 14,567 Usulutan 1,558 374 110 2,042 San Miguel 2,209 585 179 2,973 Morazan 741 105 39 885 La Union 984 219 51 1,254 EASTERN REGION 5,492 1,283 379 7,154 Docente 1: Teachers with pre-service training to teach preschool and primary education. Docente I: Teachers with pre-service training to teach the last grades of basic education (6-9). Docente III: Teachers prepared to teach the last grades of primary education and secondary education. Source: Ministry of Education, General Directorate of Human Resources. 1:0\ssrp2\docentc.x1s 66 ANNEX I Basic Data Years of Schooling (percent) Male 24 19 22 16 12 7 100 Female 30 19 20 13 12 6 100 Total 27 19 21 15 12 6 100 Note: Population 15 years or older Source: Encuesta de Hogares de Prop6sitos Muiltiples, 1992-1993 Ministerio de Planificaci6n y Coordinaci6n del Desarrollo Econ6mico y Social . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,----------i- Total 75 Male 78 Female 72 Note: Population 13 years or older Source: Encuesta de Hogares de Prop6sitos Multiples, 1992-1993 Ministerio de Planificaci6n y Coordinaci6n del Desarrollo Econ6mico y Social 1 - ---.--- -; ~~~Mle 78.n sp gX Note:Popul tuon13 ear o3r Npoldery geGr |Age 1980 1985 1990 19953 2000' 0-4 790373 788195 839679 952399 1050366 5 - 9 687934 747805 763324 821867 935623 10- 14 603282 658898 730931 752815 812767 15 - 19 498259 545953 621584 707598 732881 20 - 24 392004 393763 483496 582536 673382 Total" 4525400 4767569 5251678 5943260 6739295 a Projections. b Population of country as a whole. Source: CELADE, 1991. ....-.... :.............. 3n...... . Age 80 - 85 85 - 90 90 - 95' 95 - 00' 0 - 4 -0.06 1.27 2.52 1.95 5 - 9 1.67 0.41 1.48 2.59 10 - 14 1.76 2.08 0.59 1.53 15 - 19 1.83 2.59 2.59 0.70 20 - 24 0.09 4.11 3.73 2.90 Total 1.04 1.93 2.47 2.51 a Projections. Note: Expected average annual population growth could be overestimated. According to MIPLAN, aggregate population growth could be smaller for all groups ( something close to 35 percent) Source: CELADE, 1991 67 ANNEX 1 Basic Data Table 15. Female Population by Age Group 198 1985 ". 190 195 O0 0 - 4 388,642 386,614 408,134 460,440 508,510 5 - 9 339,122 367,059 373,599 398,200 451,103 10- 14 298,244 324,229 359,751 369,111 394,313 15- 19 250,654 269,336 311,724 352,162 362,637 20 - 24 202,432 204,501 248,541 299,294 341,418 Female Population as Percentage of Total Population by Age Group R:': :::~~~~~~~.:....- - .'.'R'-: 'R.:.R.R.-. - ....-. ':' -:'' .:.-.-. -.-.-.'.'- -RR'.-'...-.-. 0 - 4 49 49 49 48 48 5-9 49 49 49 48 48 10- 14 49 49 49 49 49 15- 19 50 49 50 50 49 20 - 24 52 52 51 51 51 a Projections. b Total female population in the country. Source: CELADE, 1991. 68 ANNEX 1 Basic Data Table 16. SALARIES AND MONTHLY INCOME BY GENDER AND NUMBER OF YEARS OF STUDY 0 628.94 531.67 583.54 786.86 643.42 732.26 1-3 776.90 583.11 694.45 1,002.53 708.78 893.40 4 - 6 956.14 655.09 834.55 1,066.64 795.55 963.25 7 - 9 1,133.29 787.78 1,009.85 1,190.36 954.00 1,108.51 10 - 12 1,627.03 1,208.55 1,435.38 1,816.99 1,330.27 1,596.67 13+ 2,863.97 1,825.26 2,412.92 3,721.06 2,070.27 3,009.88 Other 962.15 744.14 861.18 842.63 1,178.98 972.87 ~~~~~~~~~~~~~~~F. .i.. t. .-i .. Note: Colones. a Includes only employed people. Source: Encuesta de Hogares de Prop6sitos Multiples, 1992-1993 Ministerio de Planificaci6n y Coordinaci6n del Desarrollo Econ6mico y Social. Table 17. EL SALVADOR ENROLLMENT BY GRADE, SECTOR, ZONE AND GENDER 1993 .,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~_. ... ..... Age Male Female Total Male Female Total Male Female Total Male Female Total 4 6,594 7,094 13,688 4,318 4,643 8,961 4,083 4,379 8,462 323 327 650 5 7,817 8,321 16,138 7,556 8,090 15,646 5,656 5,794 11,450 645 666 1,311 6 8,707 9,082 17,789 9,856 9,947 19,803 5,619 5,349 10,968 620 562 1,182 ,,~~~~~~~~~~~.,,.,,,,,,...,,,....,,,,. .....,,,X. . .. ,h .... ..... ..., '~~~~~~~~~~. . . . .. .'.'.. . . ' ...... . . . .. . . ' ' ' : ' " : ..'..''.......' ~~~~~~~~~~~~~~~~~~~~~~~~~~~..: vop fl, X: ...... -- . n..:.-- Grade Male Female Total Male Female Total Male Female Total Male Female Total 1 39,279 37,066 76,345 63,584 78,119 141,703 10,123 9,274 19,397 1,729 1,435 3,164 2 27,467 26,955 54,422 41,455 47,091 88,546 8,385 7,715 16,100 1,387 1,149 2,536 3 27,169 26,974 54,143 33,493 33,306 66,799 7,911 7,382 15,293 1,233 1,052 2,285 4 26,272 26,715 52,987 26,681 25,668 52,349 7,534 7,395 14,929 1,218 969 2,187 5 24,523 25,399 49,922 20,761 19,670 40,431 7,107 6,945 14,052 1,048 881 1,929 6 22,335 23,965 46,300 16,592 15,542 32,134 6,932 6,862 13,794 924 807 1,731 7 22,214 22,258 44,472 9,942 9,247 19,189 6,812 6,855 13,667 754 578 1,332 8 18,783 20,421 39,204 7,688 7,047 14,735 6,555 6,414 12,969 660 449 1,109 9 15,999 17,693 33,692 5,823 5,745 11,568 5,958 6,420 12,378 548 363 911 Tota 2444 21 227,446 4544 ....22601 24,3 4.67,454 6..317 65221259 41 77,184 * Includes EDUCO enrollment. Source: Unidad de Infonnatica, Ministerio de Educaci6n. > X Table 18. HIGHEST LEVEL OF SCHOOLING ATTAINED (%) Belize 1991 25+ 12.8 63.3 14.7 9.2 Bolivia 1976 25+ 48.6 28.5 10.8 7.1 5.0 Brazil, 1989 10+ 18.7 57.0 6.9 11.9 5.5 Chile 1982 25+ 9.4 55.6 26.9 7.2 Cuba 1981 25 - 49 3.7 22.6 27.6 40.2 5.9 Ecuador 1990 25+ 2.2 54.3 28.0 15.5 El Salvadorb 1993 25+ 34.5 21.0 19.7 9.0 9.2 6.5 Guatemala 1981 25+ 54.7 27.1 8.6 4.8 2.5 2.2 Haiti 1986 25+ 59.5 30.5 9.3 0.7 Honduras' 1983 25+ 33.5 51.3 4.3 7.6 3.3 Mexico 1990 25+ 18.8 28.6 19.9 12.7 10.7 9.2 Panama 1990 25+ 12.9 20.0 21.6 17.2 11.5 16.8 o Paraguayd 1982 25+ 14.2 51.0 15.4 16.0 3.4 Perud 1981 25+ 24.0 27.3 17.2 10.7 10.7 10.1 Uruguay 1985 25+ 62.4 28.6 9.0 Venezuelad 1990 25+ 21.2 55.0 12.0 11.8 a Does not include rural population of the region in the north of Brazil. b Category "completed primary" includes individuals who entered the 2nd cycle of Basic Education, but did not complete it. c Based on a sample survey referring to 51,372 persons. d Persons who dod not state their level of educatoin have been included in the category "no schooling." Sources: El Salvador: Encuesta de Hogares de Prop6sitos Muiltiples, 1992-1993. All others: UNESCO, Statistical Yearbook, 1994. Iiiy 71 ANNEX I Basic Data Table 19. RETURNS TO INVESTMENT IN EDUCATION BY LEVEL Bolivia 1989 9.3 7.3 13.1 9.8 8.1 16.4 Brazil 1989 35.6 5.1 21.4 36.6 5.1 28.2 Chile 1989 8.1 11.1 14.0 9.7 12.9 20.7 Colombia 1989 20.0 11.4 14.0 27.7 14.7 21.7 Costa Rica 1989 11.2 14.4 9.0 12.2 17.6 12.9 Dominican Republic 1989 -- -- -- 85.1 15.1 19.4 Ecuador 1987 14.7 12.7 9.9 17.1 17.2 12.7 El Salvador 1990 16.4 13.3 8.0 18.9 14.5 9.5 Guatemala 1989 -- -- -- 33.8 17.9 22.2 Honduras 1989 18.2 19.7 18.9 20.8 23.3 25.9 Mexico 1984 19.0 9.6 12.9 21.6 15.1 21.7 Panama 1989 -- -- -- 5.7 21.0 21.0 Paraguay 1990 20.3 12.7 10.8 23.7 14.6 13.7 Peru 1990 -- -- -- 13.2 6.6 40.0 Uruguay 1989 21.6 8.1 10.3 27.8 10.3 12.8 Venezuela 1989 23.4 10.2 6.2 36.3 14.6 11.0 Latin America 17.9 12.8 12.3 26.2 16.8 19.7 Table 20. RETURNS TO EDUCATION BY GENDER .:m .......a ,al .,: ,--; Bolivia 1989 7.3 7.7 Brazil 1989 15.4 14.2 Chile 1989 12.1 13.2 Colombia 1989 14.5 12.9 Costa Rica 1989 10.5 13.5 Dominican Republic 1989 7.8 12.0 Ecuador 1987 9.8 11.5 El Salvador 1990 9.6 9.8 Guatemala 1989 14.2 16.3 Honduras 1989 17.2 19.8 Mexico 1984 14.1 15.0 Nicaragua 1978 8.5 11.5 Panama 1989 12.6 17.1 Paraguay 1990 10.3 12.1 Peru 1990 8.5 6.5 Uruguay 1989 9.0 10.6 Venezuela 1989 8.4 8.0 -- Not available. Source: Psacharopoulos, G. 1993. "Returns to Investment in Education: A Global Update." 1:\ssp2cetrns.xis Table 21. PERCENTAGE OF 1989 COHORT REACHING Total Male Female Total Male Female Total Male Female Bolivia 84 85 83 69 71 67 44 47 41 0.64 lBrazilb 77 50 20 0.38 Chileb 98 98 98 95 95 95 77 73 80 0.83 Colombia 80 78 81 63 60 65 56 53 59 0.66 Costa Rica 95 89 79 0.78 Cuba 98 92 89 0.92 Dominican Republic 64 50 14 0.24 Ecuador 81 81 81 71 70 72 63 63 65 0.78 El Salvador 74 73 75 52 52 53 24 24 23 0.43 Guatemala 68 46 36 0.59 Haiti 80 80 80 55 55 55 39 40 38 0.53 Hondurasb 68 63 72 47 42 52 34 30 23 0.59_ Mexico 90 82 72 0.77 Nicaragua 76 57 41 0.54 Panama 92 92 93 85 83 88 79 76 82 0.81 Paraguay 90 90 90 76 75 76 59 57 60 0.68 Uruguay 100 100 100 98 97 99 93 91 94 0.86 Venezuela 100 __ _ _ _94 _ ____ _____ 48 __ _ _ _ ____0.53 a Ratio between the theoretical number of pupil-years that it would have taken to graduate the cycle of education, had there been no repetition or drop-out, and the numnber of pupil-years actually spent by the cohort. b Data on repeaters not included. Source: UNESCO. World Education Report 1993. O. m I:'ssrp2s:obattx1s 73 ANNEX 1 Basic Data Table 22. PUPIL-TEACHER RATIO : 4¢ . -: A...- . . . .--- . F ir s t - - e e . S... . . . . . . . . Belize 8 25 25 4 16 14 Bolivia 8 20 25 4 -- 18 Brazil 8 26 23 3 14 14 Chile 8 33 29 4 -- 17 Colombia 5 31 30 6 20 20 Costa Rica 6 33 32 5 19 19 Cuba 6 17 13 6 13 10 Dominican Republic 8 50 41 4 -- -- Ecuador 6 36 29 6 17 -- El Salvador 9 48 40 3 24 28 Guatemala 6 37 34 6 14 15 Haiti 6 44 29 6 23 20 Honduras 6 37 38 5 28 -- Mexico 6 39 31 6 18 17 Nicaragua 6 35 33 5 33 24 Panama 6 27 20 6 21 19 Paraguay 6 27 25 6 -- -- Peru 6 37 38 5 25 21 Uruguay 6 22 22 6 -- -- Venezuela 9 26 23 2 -- 9 Source: UNESCO. World Education Report 1993. 1:\ssrp2\puptc1Lx1s Table 23. PERCENTAGE OF AGE GROUP ENROLLED IN EDUCATION Total Female Total Female TERTIARY 1970 1991a 1970 1991a 1970 1991a 1970 1991a 1970 1991a Bolivia 76 85 62 81 24 34 20 31 13 23 Brazil 82 106 82 -- 26 39 26 - 12 12 Chile 107 98 107 97 39 72 42 75 13 23 Colombia 108 111 110 112 25 55 24 60 10 14 Costa Rica 110 103 109 102 28 43 29 45 23 28 Dominican Republic 100 - 100 - 21 -- -- -- -- -- Ecuador 97 -- 95 -- 22 -- 23 -- 37 20 El Salvador 85 76 83 77 22 25 21 27 4 16 Guatemala 57 79 51 73 S 28 8 -- 8 -- Honduras 87 105 87 107 14 19 13 34 8 9 Mexico 104 114 101 112 22 55 17 55 14 15 Nicaragua 80 101 81 104 18 44 17 46 14 10 Panama 99 106 97 105 38 60 40 62 22 24 Paraguay 109 109 103 108 17 30 17 31 9 8 Peru 107 126 99 -- 31 70 27 -- 19 36 Uruguay 112 108 109 107 59 84 64 - 18 32 Venezuela 94 99 94 100 33 34 34 40 21 30 Latin America 95 106 94 105 28 47 26 54 15 18 - Not available. a Or most recent year. b Weighted by population. Source: World Bank. 1994. World Development Report. I:\ssrp2\ageenro.xls w :> -. 75 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT BASIC EDUCATION PUBLIC FINANCING AND FINANCIAL IMPACT OF THE PROJECT1 1. Basic education enrollment in El Salvador increased 24 percent between 1991 and 1993, reaching 1.19 million children at the end of this period. El Salvador's net enrollment deficit in basic education remains high (34 percent) and disparities between rural and urban enrollment persist. While net enrollment in preschool and the 3rd cycle have reached 46 percent and 53.4 percent, respectively, in urban areas, it is about half as much as that in rural areas - 24.5 percent and 13.8 percent, respectively. 2. Education expenditure as a share of both gross domestic product (GDP) and central Government expenditure has steadily declined since 1981. Its share of GDP decreased from 3.6 percent in 1981 to 2.0 percent in 1994. This reflects the fact that total government expenditure fell from nearly 20 percent of GDP in the early 1980s to 13 percent in 1993 while, at the same time, the education share of the budget declined by more than half during the same time period (see Figure 1). 3. There are several issues of concern in El Salvador's education budget: (a) Investment expenditures have been drastically reduced, and only partially executed. In contrast, recurrent expenditures have been almost fully executed as budgeted, and their share has increased to nearly 90 percent of the budget. (b) In El Salvador, the percentage of the Government's education expenditure is less than its Central American neighbors. (c) El Salvador allocates proportionately more resources than its neighbors to basic education, however, its expenditure on secondary education is low compared to other Central American nations. There is a high private sector share in secondary education (55 percent in 1993). (d) There is a high private sector share in secondary education (55 percent in 1993) and transfers to the University of El Salvador are very low for regional standards (an average of 0.19 percent of GDP in the last five years). (e) Teacher salaries in real terms have steadily declined since 1980. Between 1984 and 1992 per capita income rose by 5.4 percent while teacher wages fell by 50 percent. The purchasing power of teacher wages in 1992 was 32 percent of its This annex refers only to public expenditures because there is no available information about private education sector finances. 76 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project level in 1980. Hence, in the last decade education became a less attractive sector for young people in the job market.2 (f) The key education investments in the last four years have been financed by international donors in projects associated with considerable technical assistance programs 4. In summary, in El Salvador the amount of resources being allocated to education have been reduced in the past 20 years, and concentrated in basic education. Most of those resources are being used to cover recurrent expenditures. Additionally, there has been a sharp deterioration in teacher remuneration, and El Salvador has shown a limited managerial capacity to undertake investment projects. 5. Repetition and dropouts are costly for El Salvador. In 1994, the average per student annual cost was around US$149. However, due to repetition, a child spends an average of 5 years longer than necessary to complete the primary level costing as much as US$37 million per year, that is, almost one-fourth of the total government expenditure in basic education. Between repeating grades and temporarily dropping out of school, a child needs, on average, 19 years to complete a 9 year cycle. GOVERNMENT GOALS FOR ENROLLMENT IN BASIC EDUCATION, 1995 - 1999: 6. El Salvador's basic education goals for 1995-1999 include: (a) increasing preschool rural enrollment from 24.5 percent in 1993 to 40 percent in 1999; (b) raising enrollment in the 1st and 2nd cycles from 83 percent in 1993 to 90 percent in 1999; and (c) reducing overage students in basic education from 29.2 percent in 1993 to 15.3 percent in 1999. No specific target has been set for increasing enrollment in the 3rd cycle which is currently 32.8 percent (net enrollment). 7. Calculations of the cost of meeting the goals are based on the following assumptions: (a) GOES' Economic Plan for the next five years assumes an annual economic growth of 7 percent per year. To avoid distortions implicit in this assumption, estimations of recurrent costs (cost per student involving all inputs) were made as a percentage of GDP. The estimation of capital costs (investment) was made under two scenarios, 7 percent and 3 percent GDP growth. (b) The school-age population is assumed to grow by 2 percent annually. This projected growth is larger than the Ministry of Education's (MINED's) projections of 1.95 percent growth rate for 4-6 year olds and 1 percent for 7-12 year olds. (c) Sections3 are assumed to have 32 students, the average number of students in EDUCO schools. 2 There is some evidence that suggests that teachers in the traditional system have high absenteeism. But even adjusting teacher salaries by the net hours worked, real wages declined by about 50 percent between 1980 and 1992. 3 A section is a group of students under the charge of a teacher. 77 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project (d) Since increased coverage will focus on schools in rural areas and in small towns, it is assumed that EDUCO will play a fundamental role. Some of the planned expansion will be based on adding a second session to the already existing infrastructure. Because teachers receive a premium of 43 percent of their base salary for teaching a second session, the expansion of the EDUCO system through adding a second session can be achieved with a 43 percent increase in base salaries, far below from the cost of opening a new EDUCO session.4 (e) The simulation allowed for increases in expenditures in the 3rd cycle of the basic level and on the secondary level due to the natural increase in the population and for the preservation in real terms of other education programs. 8. Based on the above, the projected cost of meeting the government's medium-term goals is projected in Table 1: Ta. .. P ted Public Expenditures on Education, 1995-1999 (% of GDP) Scenario 1 Scenario 2 GDP gro h) 7% GDP groth) Recurrent Capital Recurrent Capital Year costs costs Total costs costs Total 1995 2.0% 0.9% 2.9% 2.0% 0.4% 2.4% 1996 2.0% 1.2% 3.2% 2.0% 0.5% 2.5% 1997 2.1% 1.2% 3.3% 2.1% 0.5% 2.6% 1998 2.2% 1.2% 3.4% 2.2% 0.5% 2.7% 1999 2.2% 1.2% 3.4% 2.2% 0.5% 2.7% Note: For a detailed presentation of the methodology used, see Artana 'Education Program for El Salvador," 1995. 9. These public expenditures will provide for the implementation of the Government expansion of the education system as described in paragraph 6. This includes additional actions to those financed by this proposed IBRD/IDB project including an average of 0.15 percent of GNP investment financed by other donors. For a specific assessment of counterpart funds for the project see Annex 11. EDUCATION BUDGET 1995-99: 10. MINED's total expenditure plan aims at annual education investments of 0.5 percent of GDP during the next 5 years. Approximately 80 percent of the investments will be used for infrastructure, equipment and training. The remaining 20 percent will be used for recurrent expenditures associated with the investments, in particular with didactic materials. 4 The recurrent cost of a new EDUCO section is assumed to be $32,800 colones (of 1994) per year. Teacher salaries are, by far, the important recurrent cost of the EDUCO program. 78 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project 11. It is expected that the public sector will generate revenues and assist MINED in: (a) covering the incremental recurrent costs associated with these investment plans; (b) paying for the enrollment increment program; (c) improving teacher salaries (real) at least in the EDUCO program; and (d) paying for the passive growth of actual expenditures. In order to fulfill these goals it will be necessary that the education budget reach between 2.7and 3.4 percent at the beginning of the next century depending on the rate of GDP growth and the wage policy adopted for teachers in the traditional system (see Table 8). 12. The emphasis of government programs will change the composition of expenditure among levels of education, favoring preschool and basic at the cost of secondary and higher education. In the above scenarios, the share of education expenditures channeled to preschool and basic education would climb from 76 percent of the total in 1992 to 79 percent in 1999. The remainder of education expenditures goes to secondary education (9 percent), vocational training (2 percent), adult education (1 percent), and the university (9 percent). The program will reduce the share of private education in preschool from 27 percent in 1993 to 22 percent in 1999, will slightly reduce its share in basic education, and will increase its share in secondary school from 55 percent in 1993 to 56 percent in 1999. 13. The ability of the Government to increase education expenditures hinges on: (a) implementation of sound macroeconomic policies that increase tax revenues; and (b) a substantial increase in the surplus of public enterprises. The government expects that total revenues will reach 18 percent of GDP in 1999; if this target is reached it will not be necessary to raise the share of education expenditure on central government expenditure. But any figure lower than 18 percent in total revenues would imply that the education goals should be pursued at the cost of other sectors. 14. It is important to mention that the expected reduction in repetition rates can yield savings up to 38 percent of the education costs per graduate in grades 1 through 6 and 21 percent in grades 7 through 9. Under a very conservative assumption, the process will reduce repetition rates by 25 percent (one year for 1st and 2nd cycles). The reduction in repetition would be equivalent to savings of US$5 million per year. Those savings will be an additional source for funding the expansion of education services. 1:Assrp2\ann_edsc.doc 79 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project Education Expenditure as % of GDP 4 0. 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 Year Edcicaion Bqpendttre as % of Govemn(nt Bperdture 21)~~ - -- Teacher Wage I ndex ( 1978=1 00) 120 100 ~ 0 x 40- 20 - 20 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 Year 80 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project oMbles2. -.SW4k: Nlic Ex enditurs onE ion 1973-1994(in:mill of5cu ..tre.utco1onEs Expenditures Expenditures Unbudgeted Education (ordinary (extraordinary USAID-financed expenditures (% Year budget) a budget) expenditures Total GDP of GDP) 1973 124 124 3,332 3.7 1974 157 157 3,944 4.0 1975 176 176 4,478 3.9 1976 223 223 5,706 3.9 1977 266 266 7,167 3.7 1978 292 292 7,692 3.8 1979 308 308 8,607 3.6 1980 355 355 8,917 4.0 1981 347 347 8,647 4.0 1982 338 338 8,966 3.8 1983 328 4 4 336 10,152 3.3 1984 374 4 0 378 11,657 3.2 1985 427 17 12 456 14,331 3.2 1986 472 7 29 508 19,763 2.6 1987 536 40 51 627 23,141 2.7 1988 566 47 60 673 27,366 2.5 1989 647 62 31 740 32,230 2.3 1990 754 33 15 802 41,057 2.0 1991 825 31 20 876 47,792 1.8 1992 912 131 15 1,058 54,583 1.9 1993 b 1,063 257 N/A 1,320 66,239 2.0 1994 b 1 1,296 210 N/A 1,506 76,840 2.0 * Includes expenditures by the Ministry of Education and transfers to the University of El Salvador. Excludes current expenditures on education, of 0.1-0.2% of GDP, by other public sector entities. b Estimated. Sources: Jorge Quintana, "Economria de la Educacion," May 1993. Secretaria Tecnica de Financiamiento Externo (SETEFE) Daniel Artana, "El Programa Educativo del Gobierno de El Salvador," February 1995. ::Tbl3.; El :Salvador - Evolution of GDP and Fiscal Varnables. Real GDP Central Govt. as % of GDP Growth Year Rate (%) Revenues Spending Educ. Spending 1984 13.3 19.8 3.2 1985 1.6 13.9 17.8 3.2 1986 0.7 14.5 19.4 2.6 1987 2.4 11.4 15.2 2.7 1988 1.5 10.2 14.6 2.5 1989 1.6 8.3 13.1 2.3 1990 1991 3.0 8.4 11.9 2.0 1992 3.9 9.2 13.8 1.8 1993 4.9 10.0 14.7 1.9 5.7 10.1 13.1 2.0 Source: Inter-American Development Bank. 81 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project -T.e *4. .Ah&G% C Per. Stident iitio ion Preschl 1 Cycie Bas, 19.4 Operating Expenses Source Personnel Servicesb $102.54 Official Expenses, Education Branch, IBRD Report Classroom Supplies $2.06 Directorate for Educational Materials Books/Student Materialsc $1.66 Directroate for Educational Materials Teacher Training $4.95 Annual Progranuning Costs for EDUCO Sections Subtotal $111.21 Administrative Expenses Central $7.24 IBRD Report Regional $2.75 IBRD Report Local (ACE) $0.00 Teacher Supervision $0.83 Annual Programming Costs for EDUCO Sections Subtotal $10.82 Annualized Capital Expenses Costs of Typical, Social Investment Fund Construction $9.10 Straight Line Depreciation, 75 Year Life Furniture and Equipment $12.67 Straight Line Depreciation, 20 Year Life Maintenance $4.52 Alberto Zuniga, Evaluation Unit, IBRD School Library $0.48 Straight Line Depreciation, 10 Year Life Subtotal $26. 77 Total Per Student $148.80 Total Section of 31 Students $4,612.75 a Assumes 31 students per section. (Source: Ministry of Education, Directorate for Planning and Statistics) b Weighted average across teachers in the three pay scales (Docente I, II, and III). c Assumes five year replacement cycle for books and student materials. Source: 'An Analysis of the Unit Costs of Preschool and Primary School Education in El Salvador," Melamid, Sastry and Ross, RAND Corporation, April 1995. Table 5. ExpeXditure on Education in Various Counr ies % of Central Distribution of Government Expenditure (/) Year Govt. Budget Preschool Primary Secondary Higher El Salvador 1993 14 5 71 9 15 Costa Rica 1991 19 - 43 23 34 Guatemala 1990 20 - 54 18 28 Honduras 1992 15 - 61 22 17 Nicaragua 1992 18 - 57 8 35 Mexico 1991 14 - 39 35 26 Panama 1992 17 - 45 22 33 Notes: Higher education includes 10 percent for the University of El Salvador, 3 percent for training and 2 percent for adult education. Source: Dewees et al. 1995, and World Bank. 82 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project Tale 6. ExpCnditue -per Student as reer eaf Pe Capita GDP, 1988 Preschool Basic El Salvador 6 9 Honduras 12 2 Ecuador 6 11 Nicaragua 13 22 Latin America 9 12 Africa 14 60 Asia 11 18 World 14 30 Source: Costos Beneficios y Financiamiento de la Educaci6n Dewees, A., S. Kless, and J. Quintana in Educaci6n en El Salvador, de Cara al Siglo AXX. Table 7. Number of Years-to Produce-A Grad.uae l__________________ Years Per Level Actual Years Required Preschool Basic (grades 1-9) 9 19.4 Ist/2nd Cycles 6 10.1 3rd Cycle 3 3.9 Sources: Costos Beneficios y Financiamiento de la Educaci6n. Melamid, E. et al. 'An Analysis of the Unit Costs of Preschool and Primary School in El Salvador,"World Bank. Table 8, Etitd.Cost of pAnn Preschool gan Basic Educ tion_Services' - ______ Teacher Salary Growth Scenarios 1995 1996 1997 1998 1999 Teacher salarygrowth= 0 2.3% 2.3% 2.3% 2.2% 2.1% EDUCO Teacher salary growth = GDP growth 2.3% 2.4% 2.3% 2.3% 2.2% All teachers salary growth = GDP growth 2.4% 2.6% 2.6% 2.7% 2.7% Percentage of Investmentb 0.4% 0.5% 0.5% 0.5% 0.5% Project Cost Absorbtionb 0.04% 0.08% 0.12% 0.16% 0.16% Enrollment Goalsc Preschool 29.7% 32.3% 34.6% 37.4% 40.0% Basic 85.3% 86.5% 87.7% 88.8% 90.0% * Other levels of education would be expanded to maintain current levels of coverage. b For all scenarios. Percentage of coverage. 83 ANNEX 2 Basic Education Public Financing and Financial Impact of the Project Table 9. Non-fmancial Pubic Sectr (*/a of -D- Mone Program Medium Term Outlook 1994 1995 1995 1999 Current Revenues 15.2 15.8 16.3 17.6 Operating Surpus 1.4 1.9 1.8 3.1 Capital Revenues 0.3 0.2 0.2 0.0 Donations 1.4 1.1 1.7 0.1 TOTAL INCOME 16.8 17.1 18.2 17.7 Current Expenditures 13.2 13.3 13.3 13.1 Capital Expenditures 4.1 5.0 7.3 5.5 TOTAL EXPENDITURES 17.3 18.3 20.6 18.6 Net Financing External 2.1 1.5 2.7 1.8 Internal (1.6) (0.4) (1.0) (2.2) External Gap 0.0 0.0 0.8 1.3 Source: "Plan Desarrollo Econ6rnico y Social 1994," and "Programa Monetario" Table 10. Public Sector Revenue (% of ODP . . Monetary Program Medium Termn Outlook 1994 1995 1999 Tax Revenues 10.87 11.39 11.85 Income Tax 2.57 3.24 3.80 VAT 4.63 4.96 4.99 Imports 2.11 2.05 2.02 Other 1.56 1.14 1.05 Non Tax Revenues 2.90 3.03 2.69 Public Enterprise Operating Surplus 1.43 1.83 3.09 Transfers to Central Government 0.20 1.20 Source: "Plan Desarrollo Econ6mico y Social 1994,"and "Programa Monetario." 84 ANNEX 3 Economic Analysis EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT ECONOMIC ANALYSIS 1. Empirical evidence suggests that the overall rate of return to primary education is high in El Salvador. Using 1990 data, Psacharopoulos and Ng estimated the average private rate of return for primary education at 18.9 percent.' The same study estimated the average private rates of return for secondary education at 14.5 percent and for university education at 9.5 percent. Social rates of return of 16.3 percent for primary school, 13.3 percent for secondary school and 8.0 percent for university education show a similar pattern of the highest rates of return for primary education and the lowest for university education. 2. Although one cannot assume that the above-cited average rates of return are the same as the marginal rates of return from investments by project activities, high average rates of return augur well for the overall returns to investments in primary education. Moreover, the available evidence suggests a positive assessment of the project's returns when compared with alternative investments available in the country. Under the assumption that the private marginal return will be half of the average return (9.5 percent), returns are still considerably higher than the current average real lending rate (7.4 percent). 3. A brief analysis of the components of the project will give additional evidence of the economic soundness of the proposed project. Component 1. Expansion of Access to Preschool and Basic Education 4. The expansion of EDUCO schools, supported by the first component of the project, seeks to follow cost-effectiveness criteria in offering education services at a reasonable cost to some of the lowest income groups in rural areas, and provides efficient management of those services. Despite the lower socio-economic status of EDUCO students2, their achievement results are comparable to students in traditional (urban and rural) schools. Although overall costs of the EDUCO schools are similar to those of traditional schools, the benefits of the program appear to be much higher. These benefits include bringing education to areas which did not previously receive these services, community involvement in providing education services, and better control over teacher attendance and performance. EDUCO also established channels for better communication between communities and the Ministry of Education (MINED). 5. The EDUCO model accomplishes a balance between the benefits of an active participation of parents in the education of their children, and the economic benefits of public sector intervention. The proposed project will support the strengthening of the partnership between communities and MINED. ' Psacharopoulos, G. and Y.C. Ng, "Earnings and Education in Latin America: Assessing Priorities for Social Investments," World Bank Policy Research Working Paper, WPS 1058, December 1992. The results reported use the full discounting method. 2 EDUCO schools are in some of the lowest income areas of El Salvador, where factors such as health, nutrition, and the need for child labor weigh in heavily against school performance. 85 ANNEX 3 Economic Analysis 6. By delegating the administrative functions to the local communities, the EDUCO model builds in an adequate structure of incentives because the parents are empowered to make the best out of the resources provided by the government and by themselves to educate their children. 7. The financial support of the government circumvents two phenomena which hinder private demand for education. Parents do not perceive the full economic return of education because they only take into account private costs and returns, and, even when they do, they may be unable to pay its price, or to borrow against the future returns of this investment. Facilitating the access to education services, based on the expansion of the EDUCO model, allows the capitalization of economic returns that could otherwise be lost in a poverty trap. 8. Through the use of double sessions and, whenever possible, the rehabilitation of existing schools rather than construction of new schools, the expansion of EDUCO that is supported by the current project uses cost-efficient criteria to achieve better school coverage. Double sessions in existing infrastructure and in new schools reduce expensive infrastructure investments. Additionally, experience shows that teachers are willing to assume responsibility for a second session at a premium of about 43 percent of their regular salaries, this means that the marginal costs of adding double sessions are substantially below those of adding new sections with new teachers. In reference to classrooms, the project calls for rehabilitating 9,152 classrooms at a cost of approximately $2,600 each. A much smaller number of new classrooms (1,140 at a cost of about $23,000 each) will be built where rehabilitation of existing infrastructure cannot meet the demand for increased coverage, and will be financed by the communities and the Social Investment Fund (Fondo de Inversi6n Social - FIS). 9. It is important to mention that the expansion of EDUCO could face increasing marginal costs. The program introduces a more active participation of the private sector to provide promotion and organization services for the community which are currently provided directly by NMINED. The project will compare the cost effectiveness of contracting services with the potential negative economies of scale of extensive MINED micromanagement of the project. Component 2. Improvement in Educational Quality 10. The education flow wastage could be dramatically cut by improving the quality of services and by the existence of minimal nutrition conditions for the children. The five subcomponents supporting education quality - curriculum improvements, teaching materials, teacher qualification and training, student achievement evaluation, and health and nutrition - respond to the weakest elements of the Salvadoran education system. 11. There is substantial room for improvement in dropout and repetition rates. The average period required by a student to finish 9 academic years is 19 years. The dropout rate is particularly high between the 2nd and 3rd cycles. 12. The transition to 3rd cycle increases by 51 percent the required surplus time needed to complete the basic education cycle. Dropout rates within cycles are known to be considerably less. Under the assumption that repetition explains 90 percent of education waste within cycles, repetition is responsible for 4.5 of the extra years needed to finish basic education. 86 ANNEX 3 Economic Analysis L Expeniture er Stuent an Numbe of Yv to~ Prdue a. .......e__..... Years per Graduate Education Wastage (years) Annual Cost Effective Acadeniic Total Repetitionb Per Student' Basic (1-9) 19.4 9 10.4 4.5 US$149 lst/2nd Cycles 10.1 6 4.1 3.69 US$149 3rd Cycle 3.9 3 0.9 0.81 US$149 (7-) . Transference to 3rd Cycle 5.4 ' Annual costs per student include capital costs. b Number of years out of the total that are due to repetition. Source: Rand. 1995. "An Analysis of the Unit Costs of Preschool and Primary School in El Salvador. 13. Reduction of repetition rates can yield savings up to 23 percent of the education costs per graduate in grades 1-9. Annual expenditures for students in basic education are US$149 dollars. With a basic enrollment of 1.06 million in 1994, the cost of repetition may be as high as US$37 million per year. This cost will increase with expansion of education services if it is not combined with actions to improve quality to reduce repetition and dropout rates. 14. The proposed project will address issues of efficiency in a comprehensive way through a series of actions to improve the quality of education services provided by MINED. It is important to emphasize six actions that will have a direct impact on repetition rates and are considered in the proposed project: (a) the revision of curriculum to meet the needs and interests of the rural school population; (b) the expansion of preschool coverage; (c) the development of a multigrade program in rural areas that introduces the flexibility required in rural environments; (d) the establishment of a new promotion system for students allowing for automatic progression within cycles; (e) the development of a nutrition program targeted to the poorest school in rural areas; and (f) the promotion of an active participation of parents in school management. Under the assumption that repetition is responsible for 4.5 of the years needed to finish basic education, a reduction of repetition rates in one year will reduce the annual average repetition waste in the amount of US$9 million. If that goal is accomplished, an amount similar to that estimated for the quality component could be 'internally" financed by the savings. 15. Dropout costs are difficult to measure because of the complex interconnections with labor and production. Nevertheless, the costly pedagogical difficulties of having overage students, the increased cost of generating human capital, and the potential loss of economic returns sustain the importance of reducing dropout rates. 16. The importance of the subcomponents included under the quality component have further support in international experiences. A recent study of Chile, Colombia, Argentina and Mexico stated that "the study flow inefficiency, specially among the urban and rural low-income students, is primarily prompted by lack of: (a) early stimulation programs; (b) appropriate educational inputs such a as textbooks, learning and teaching materials, in-service teacher training, 87 ANNEX 3 Economic Analysis pedagogical supervision, feeding programs, health screening, and school construction and maintenance; (c) relevant curricula; and (d) suitable learning environments."3 17. One aspect that deserves special attention is the introduction of evaluation schemes to monitor the effectiveness of the education policy, including this project. The evaluation component and the development of a MINED information system, introduce powerful tools to value the effectiveness of the education policies. The establishment of accountability through achievement tests has proven its capacity to improve teacher performance and student achievement, the case of Thailand is one remarkable example.4 Component 3. Institutional Modernization and Strengthening 18. The government has set realistic targets for improving enrollment, and the project emphasizes quality enhancing investments. The increase in resources has to be paired with an effort to enhance efficiency in the provision of education, and in the performance of government agencies. 19. Moreover, the Government is developing a full Program of Modernization of the Public Sector that aims to improve the overall efficiency of the public sector. The project will contribute to this process from within MINED by supporting improvements in MINED's incentive structure, strengthening the information system, improving communications, strengthening the supervision of personnel, and developing an effective monitor system. 20. One important underlying decision in the modernization process that the Government wants to implement is the decentralization of services (particularly education and health). The examples of education decentralization in Latin America indicate the paramount importance of the coexistence of a strong management capacity that will allow policy makers and government officials to monitor the decentralization process and the development of managerial capacity at local levels to absorb new responsibilities. The timely provision of technical support and the establishment of an efficient information system to implement the monitoring process are also critical. The project will closely support the decentralization process and is expected to provide the necessary technical assistance to empower the MINED to finish that process. 21. The major bottleneck of the education sector is the limited managerial capacity of MINED. In spite of the willingness of the Government and international agencies to provide funds to expand and improve the education sector, the implementation capacity is limited. By contributing to the development of MINED's managerial capacity, the education sector could reap the benefits of a vast set of social investment opportunities. 22. Finally, the availability of funds and technical support for pilot projects is a cost efficient way to introduce efficient methods and procedures to deliver education services. The pilot projects will encourage innovations on an experimental basis. The pilot projects will identify, test, improve, and evaluate different pedagogical methods and administrative procedures to improve 3 Prawda, J. 1992. "Educational Decentralization in Latin America: Lessons Learned." A View from LATHR, No. 27. World Bank, Human Resources Division, Technical Department, Latin America and the Caribbean Region, Washington, DC. 4 Lockheed, M., A.M. Verspoor, et al. 1991. Improving Primary Education in Developing Countries. New York: Oxford University Press. 88 ANNEX 3 Economic Analysis coverage, quality and increase efficiency. The evaluation of such experiments will give extremely useful inputs for policy makers to make cost effective decisions in the allocation of capital and human resources. Marginal rate of return of the medium term education plan of GOES for expanding coverage and reducing repetition and dropout rates 23. The medium term plan of the government of El Salvador aims at increasing the coverage in rural preschool and in primary education, and to reduce the presence of overage students. 24. Even without detailed econometric work based on the Household Surveys,5 it is worthwhile to estimate a rudimentary internal rate of return for the project. In order to do so, the following assumptions were made: (a) A higher coverage demands additional resources. A yearly average cost per student of US$149 (including capital costs) was multiplied by the increase in the number of preschool and primary students in public schools.6 The yearly cost was assumed to increase at an annual rate of 7 percent until 1999 and 5 percent thereafter.7 (b) A more rudimentary method was used to estimate the benefits of the plan. It was assumed that an improvement in coverage will have the following positive effects: (i) Dropout decisions will be postponed by a year. This means that the average wage of those students who dropout from school will increase. Using data about the relationship of wages and years of schooling from Dewees et al.8, it was estimated that the average income of primary school dropouts will increase by about 10 percent. This income differential was multiplied by the projected number of dropouts from 1995 to 2024. (ii) A higher coverage allows new students to receive higher wages. The extra annual income was assumed to be the same obtained by postponing dropout decisions (i.e. about 10 percent of actual wages). It was applied to the difference between the enrollment in the three cycles of public basic education with and without the project. This is a very conservative assumption. 5 National Survey of Household Income and Expenditures (Encuesta Nacional de Ingresos y Gastos de Hogares) and the Multiple Purpose Household Survey (Encuesta de Hogares de Prop6sitos Multiples). 6 Stulents in the 3rd cyvle of basic education w~ere also mcluded 7 Based on the mid-term projections implicit in the current Economic Plan. 5 Dewees, A., S. Klees, and J. Quintana. 1994. "Costos, Beneficios y Financiamiento de la Educaci6n en El Salvador." In Diagnostico del Sistema de Desarrollo de Recursos Humanos de El Salvador. Report for the Harvard Institute for International Development in collaboration with Fundaci6n Empresarial para el Desarrollo Educativo, Universidad Jose Sime6n Caffas. The differential in income was adjusted so as to allow for a 5 percent anmual teal gmwth in salaries of the economy. 89 ANNEX 3 Economic Analysis (iii) A better coverage of preschool in rural areas will reduce the repetition rate of 1st. grade. This reduction was estimated as 20 percent (i.e. repetition rate in the 1st grade in rural areas declines from 20 percent to 16 percent). This allows the saving of fiscal resources. (iv) Benefits accrue after 1999. This assumes that the benefits of the program require time to mature before becoming effective. 25. With these assumptions the annual real marginal rate of return of the medium term plan for education was estimated as 19.7 percent. This underestimates the true rate because: (a) private and social returns for education are increasing as a consequence of an increasingly competitive economy; (b) returns gaps between levels of education are widening as a consequence of the demand for a better educated labor force by the productive sector; (c) the assumptions about expanded years of education are very conservative; and (d) no external positive effects were included. I:Awp2Mazm_ecmdoc E z. >7.:tkt :*zAs.: : 2w::.I x: :.:xz:..(:Y:<:28 2 i;.:;: TOTALRURAL PRESCHOOL COVERAGE 47,553 53,651 59,975 66,530 72,692 80,146 87,432 89,181 90,965 92,784 94,640 96,533 98,463 100,432 102,441 104,490 Public RuPl Preschool Coverage 44,410 50,446 56,705 63,194 69,290 76,676 83,893 85,571 87,282 89,028 90,808 92,625 94,477 96,367 98,294 100,260 -Private Rural Prescho-ol Coverage 3.143 3,206 3,270 3,335 3,402 3,470 3,540 3,610 3,683 3,756 3,831 3,908 3,986 4,066 4,147 4,230 EXPECTEDRURALCOVERAGE 24.5% 27.1% 29.7% 32.3% 34.6% 37.4% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% |Preschooi Populaion 194,094 197,976 201,935 205.974 210,093 214,295 218,581 222,953 227,412 231.960 236,599 241,331 246,158 251,081 256,103 261,225 PUBLIC PRESCHOOL WITH PROGRAM 44,410 50,446 56,705 63,194 69,290 76,676 83,893 85,571 87,282 89,028 90,808 92,625 94,477 96,367 98,294 100,260 PUBLIC PRESCHOOL WITHOUT PROGRAM 44,410 45,298 46,204 47,128 48,071 49,032 50,013 51,013 52,033 53,074 54,136 55,218 56,323 57,449 58,598 59,770 INCREASED COVERAGE WhIt PROGRAM 0 5,147 10,501 16,066 21,219 27.644 33,880 34,558 35,249 35,954 36,673 37,406 38,154 38,918 39.696 40,490 BASIC EDUCATION: TOTAL CYCLES L& I 863,498 889,922 914,935 929.401 935,513 934,764 932,180 948,486 965,117 982,081 999,385 1.017,034 1,035,037 1,053,399 1,D72,129 1,091,233 - Urban 427,704 440,303 452,098 459,650 463,329 4637997 463,873 472,118 480,527 489,104 497,853 506,777 515,879 525,163 534,633 544,292 -Rujral 435,794 449,619 462,637 469,751 472,183 470,767 468,30Y7 476,368 494,590 492,977 501,532 510,258 519,158 528,236 537,496 n 5 146,4 PUBLICA BASIC EDUCATION 756,081 780,356 803,178 815,409 819,241 816,167 811,211 85,097 839,261 853,708 868,444 883,475 898,806 914,444 930,394 946,664 PoUrbain 334,119 344,447 354,932 360,337 362,030 360,672 358,482 364,618 370,877 377,261 383,753 390,415 397,190 404,101 411,150 418,339 P Rural 421,962 435,510 448,247 455,073 457,211 455,496 452,730 460,479 468,384 476,447 484,671 493,059 501,615 510,343 519,245 528,325 ... of wvbicb -~Overage :195,529 1.99,09 4 201,085 191.03.1 171,927 146.138 116,911 H6,911 1t6,911 116,911 116,911 : 116,911 1t6,9tl: 116,91.1 11.6,911 116,911 EnlroDnma. 7412 : 560.552 581,~262 602.09 624,3787 647,314 670i029 694.300 708,186 722,350 736,797 751,533 .766,5.64 781,895 :797,533 813,483 829,7L53 PRIVAT'EBASIC EDUCAnON 107,417 109,565 111,757 113,9912 116,272 118.597 120,969 123,388 125,856 128,373 130,941 133,560 136,231 138,955 141,734 144,569 -Urbanl 93,585 95,457 97,366 99,313 101,299 103,32.5 105.392 107,500 109,650 111.843 114,080 116,361 118,688 121,062 123,483 125,953 -Rural 13,832 14,109 14,391 14,679 14,9172 15,272 15,577 15,889 16,206 16,531 16,861 17,Z98 17,542 17,893 18,251 18,616 ESTIMAllE OF BASIC EDUCATION COVERAGE 83.0% 84.2% 85.3% 86.5% 87.7% 88.8% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%1 lPopulatimn7-12 804,373 820,460 836,870 853,607 870,679 888,093 905,855 923,972 942,451 961,300 980,526 1,000,137 1,020,139 1,040,542 1,061,353 1,082,580 |PUBLIC RURAL CYCLES I & 421,962 435,510 448,247 455,073 457,211 455,496 452,730 460,479 468,384 476,447 484,671 493,059 501,615 510,343 519,245 528,325 PUBUC RURAL FIRST GRADE 143,889 148,509 152,852 155,180 155,9D9 155,324 154,381 157,023 159,719 162,468 165,273 168.133 171,051 174,027 177,062 IS0,159 STUDENTS REPEATING GRADE 28,669 29,590 30,455 30,919 31,064 30,947 30,760 31,286 31,823 32,371 32,930 33.500 34,081 34,674 35,279 35,896 COSTS USS/rodN dollars $146 S156 $167 $179 $191 $191 $191 $191 $191 $191 $191 $191 $191 $191 COST OF EXPANDING PRESCHOOL COVERAGE (in hosansal) $1,533 $2,510 $3.547 S4.944 $6,484 $6,601 $6,733 $6,867 $7,005 $7,145 $7,288 17,433 17,582 $7,734 COSTSOFPERSISTENTREPETMITON (io thousand[s) $889 $966 $1,039 $1,107 $1,177 $1,195 $1,216 $1.237 $1,258 $1,280 $1,302 $1,325 $1,348 $1,371 C, 0 t . .... .... ... . : : E ..............E . ;. S sM............; TOTAL RURAL PRESCHOOL COVERAGE 106,58D 104711 110,886 113,103 115,365 117,673 120,026 122,427 124,875 127,373 129,920 132,518 135,169 137,872 140,630 143,442 Pubc Rural Prewcool Coverge 102,265 104,310 106,397 108,524 110,695 112,909 115,167 117,470 119,820 122,216 124,661 127,154 129,697 132,291 134,937 137,635 Private Rural PreschDol Coveage 4,315 4,401 4,489 4,579 4,670 4,764 4,859 4,956 5,055 5,156 5,260 5,365 5,472 5,581 5,693 5,807 rEXPECIrED RURAL COVERAGE 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%1 |Preschool Populati 266,449 271.778 277,214 282,758 288,413 294,182 3C0,065 306,066 312,188 318,432 324,806 331,296 337,922 344,681 351,574 358,606 PUBLIC PRESCHOOL WITH PROGRAM 102,265 104,310 106,397 108.524 110,695 112,909 115,167 117,470 119,820 122,216 124,661 127,154 129.697 132,291 134,937 137,635 PUBLIC PRESCHOOL WITHOUT PROGRAM 60,965 62,185 63.428 64,697 65,991 67,311 68,657 70,030 71,431 72,859 74,316 75,803 77,319 78,865 80.443 82,051 IINCREASED COVERAGE W1I7 PROGRAM 41,300 42,126 42,968 43,828 44,704 45,598 46,510 47,440 48,389 49,357 50,344 51,351 52,378 53,425 54,494 55,584 BASIC EDUCATION: TOTALCYCLES I &m 1,110,720 1,130.596 1,150.869 1,171,549 1,192,641 1,214,156 1,236,101 1,258,485 1,281,316 1,304.604 1,328.358 1,352,587 1,377,301 1,402,508 1,428,220 1,454,447 - Urban 554,145 564,195 574.445 584,901 595,566 606,444 617,539 628,657 640,401 652,175 664,186 676,436 688,931 701,677 714,677 727,937 - Rural 556,575 566,401 576.424 586,648 597,076 607,712 618.562 629,628 640,916 652,429 664,173 676,151 688,369 700,832 713,543 726,509 PUBLIC BASIC EDUCATION 963,259 960,186 997,452 1,015,062 1,033,025 1,051,348 1,070,036 1,089,099 1,10S,543 1,128,375 1,148,605 1,169,238 1,190,285 1,211,752 1,233,649 1.255,9S4 - Urban 425,673 433,153 440,783 448,565 456,503 464,600 472.859 481,283 489,875 498,639 507,579 516,697 525,998 535,484 545,161 555,031 - Rurnl 537,536 547.033 556,669 566,497 576,522 586,748 597,178 607.816 618,668 629.736 641,026 652.541 664,287 676,268 688.489 700,953 ... of which -Overage 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 116,911 t16,911 116,911 - Enroliwme. 7-12 146,.4U 863,275 880,541 898,151 916,114 934,437 953.125 972,188 991,632 1,011,464 1,031,694 1,052,327 1,073,374 1,094,841 1,116,738 1,139,073 PRIVATE BASIC EDUCATION 147,461 150,410 153,418 156,486 159,616 162,808 166,064 169,386 172,774 176.229 179,754 183,349 187,016 190,756 194,571 198.462 - Urban 128,472 131,042 133,662 136,336 139,062 141,844 144,681 147,574 150,526 153,536 156,607 159,739 162,934 166,192 169,516 172,907 - Rural 18,968 19,368 19,756 20,151 20,554 20,965 21,384 21.812 22,248 22,693 23,147 23,610 24,082 24,563 25,055 25,556 ESTMATE OF BASIC EDUCATION COVERAGE 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% |Populatior 7-12 1,104,232 1,126,316 1,148.S43 1,171,820 1,195,256 1,219,161 1,243,544 1,268,415 1,293,783 1,319,659 1,346,052 1,372,973 1,400,433 1,428,442 1,457,010 1,486,151 PUBLIC RURAL CYCLESIAIIH 537,586 547,033 556,669 566,497 576,522 586,748 597,178 607,816 618,668 629,736 641,026 652,541 664,287 676,268 688,489 700,953 PUBLIC RURAL FnRST GRADE 183,317 1S6,538 189,824 193,176 196,5914 200,081 203,638 207,265 210,966 214,740 218,590 222,517 226,522 230,607 234,775 239,025 ISTUDENTS REPFATTNG GRADE 3,6,525 37,167 37,821 38,489 39,170 39,865 40,574 41,296 42,034 42,786 43,553 4.4.335 45,133 45,947 46,778 47,624 COmST USS/W,&M Sl91 Sl91 Sl91 S191 Sl91 Sl91 Sl91 Sl91 Sl91 Stl9 Sl91 Sl91 5191 Sl91 Sl91 Sl91 COST OF EXPANDING PRESCHOOL COVERAGE S7,S8S SS,046 SS,207 SS,371 SS,538 SS,709 SS,8S3 S9,061 S9,242 S9,427 S9,616 9Sq0Sm 510,0C4 S10,204 S10,408 $10,617 COSSOF PERSISTENT REPETITION S1,395 Sl,420 Sl,445 Sl,470 S1,496 Sl,52 S,5 S178 16C Sl34 S1,664 S1,694 Sl,724 Sl,755 S1,787 S1,819 0S hn PUBLICBASICEDUCATIONSTUDENTS 920,394 947,945 974,119 989,769 997,088 997,571 996,243 1,016,168 1,036,491 1,057,221 1,078,366 1,099,933 1,121,931 1.144,370 1,167,258 1,190,603 -URBAN 452,196 465,285 477,779 485,641 4899840 491,038 491,455 501,285 511,310 521,536 531,967 542,606 553,459 564,528 575,818 587,335 -RURAL 468,188 4S2,660 496,340 504,128 507,248 506,533 504,788 514,883 525,181 535,685 546,398 557,326 568,473 579,842 591,439 603,268 PUBLIC BASIC EDUCATION SUDENTS (IhvuMWI) 920 948 974 990 997 998 996 1,016 1,036 1,057 1,078 1.100 1,122 1,144 1,167 1,191 PUBLIC THIRD CYCLE EDUCATION STUDENTS 164,303 167,589 170,941 174,360 177,847 181,404 185,032 222,038 266,446 319,735 383,682 460,418 552,502 663,003 795,603 954,724 -URBAN 118,077 120,439 122,847 125.304 227,810 130,367 132,974 159,569 191,4S2 229.779 275,735 330,882 397,058 476,469 571,763 686,116 -RURAL 46,226 47,151 48,094 49,055 50,037 51,037 52,058 62,470 74,963 89,956 107,947 129,537 155.444 286,533 223,840 268,608 OVERAGE 196 299 201 191 272 146 117 119 122 124 127 129 132 134 137 140 PUBLIC EDUCATION STUDENTS EXCLUD. OVERA 725 749 773 799 825 851 S79 897 915 933 952 971 990 1,010 1,030 1,051 DROPOUTS 95 98 101 102 103 103 103 105 107 109 III 114 116 218 121 123 PUBLIC EDUCATION STUDENTS WITHOUT THE PROGRAM 754 769 784 800 816 832 849 866 883 901 919 937 956 975 INCOME DIFFERENTIAL (In millia) (1) 12 12 13 13 13 13 13 13 14 14 14 14 15 15 15 16 GROWTH IN REAL INCOME (2) 1 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 2.980 INCOME DIFTERENTIAL FOR LATER DROPOUT 13 14 IS 16 17 18 19 20 22 23 25 27 29 31 INCOME DIFFERENTIAL FOR INCREASED COVERAGE (3) 3 4 6 8 10 I1 12 12 13 14 15 16 17 19 TOTAL INCOME DIFERENTIAL FOR BASIC EDUCATION 16 18 21 24 27 29 31 32 35 37 40 43 46 50 REDUCTION IN REPETITION I I I I I I 1 I I I I I I I COSTS COST PER STUDENT (2) 149 159 171 183 195 205 215 226 237 249 262 275 289 303 BASIC EDUCATION COSTS WITH PROGRAM Millions 115 227 141 155 172 184 197 211 226 242 259 278 297 318 8O BASICEDUCATIONCOSTSWITHOUTPROGRAM 112 123 134 146 159 171 183 196 210 225 240 258 276 295 S) DlFERENTIAL IN COSTS WrOUT OVERAGE 3 5 7 9 12 13 14 15 16 17 19 20 21 23 COST OF INCREASED COVERAGE OF PRESCHOOL 2 3 4 5 7 7 8 8 9 9 10 II I1 12 SOCIAL GAINS (wiKcA munity) 13 12 11 10 9 9 10 10 I1 12 12 13 14 15 SOC1AL GAINS AFTER 5 YEARS (4) -4 -6 -0 -13 -18 9 10 10 21 12 12 13 14 15 INTERNAL RATE OF RETURN 20% S slF _ i7 - - e -iSit? -. . -.. .......... .. ,,:',:: .: .. ::::: ....... ..:::.: .... ::.::. ........ . -:::E::-:::E:::::::::::: : :: :7 7 I ; o;i:i"itl,i,vm ,p ,,;;}j, f.0igailll:jll,rZSis .-|s lll-:i ..llL--jl'_ 'i|||FE : " Ei ~~Mhfl2' 4 ~~~~~A ........ ... '56 _, - 46ix4- W *4 46 't f PUBUC BASIC EDUCAllON STUDENTS 1,214.415 1,238,703 1,263,477 1,288.747 1,314.522 1,340.812 1,367,628 1,394,981 1,422.880 1.451,338 1,480,365 1,559,972 1,540,172 1.570,975 1,602,394 1,634,442 -URBAN 599,081 611,065 623,284 635,750 648,465 661,434 674,653 658,156 701.919 715,958 730,277 744,882 759780 774,976 790.475 806.285 -RURAL 615.333 627,640 640,193 652,997 666,057 679,378 692,965 706,825 720,961 735,380 750,088 765,090 780,391 795.999 211.919 t28,258 PUBUC BASIC EDUCATION STUDENTS (Tbhm s 1,214 1.239 1,263 ,289 1,315 1,341 1,368 1,395 1,423 1,451 1,480 1,510 1,540 1,571 1,602 1,634 PUBUC n'[RD CYCLE EDUCAIION 51UDEJS 2,145,669 2.374.802 1,649,763 1,979,715 2,375,658 2,850,790 3,420,948 4,102,137 4,926,165 5,911,398 7,093,678 8,512,413 10,214,896 12.257,875 14,709,450 17,652,340 -URBAN 823,339 968.007 1.185,60 1,422,730 1,707,276 2,048,731 2,458.478 2,950.173 3,540.208 4,248,250 5,097,899 6,117,479 7,340,975 8,809,170 10,571,C04 12,685.205 -RURAL 322,329 386,795 464,154 556,985 668,382 802,058 962,470 1.254.964 1,385,957 1.653,148 1,995,778 2,394,934 2,873.921 3,448,705 4,138.446 4.966,135 OVERAGE 143 145 148 151 154 157 160 164 167 170 174 177 181 184 128 192 PUBUCEDUCAllONSTUDENTSEXCLUDINGOV 1,072 1,093 1,115 1,138 1.160 1,183 1,207 1,231 1,256 1,281 1,307 1,333 1.359 1,387 1,414 2,443 DROPOUTS 125 228 130 133 136 138 141 144 147 ISO 153 156 159 162 165 169 PUBIC EDUCATION STI ENTS W1rHOUT THE P 995 1014 1035 1055 2077 1098 1120 1142 1165 1189 1212 2237 1261 1287 1312 1339 INCOME DlFERNflAL (In mlin) (1) 16 16 16 17 17 17 28 28 19 19 19 20 20 20 21 21 GROWTH IN REAL INCOME (2) 2.079 2.183 2.292 2.407 2.527 2.653 2.786 2.925 3.072 3.225 3.386 3.556 3.733 3.920 4.116 4.322 INCOME DIFERENI'lAL FOR LATER DROPOUT 33 35 38 40 43 46 50 53 57 61 65 70 75 so 86 92 INCOME DIFERENTIAL FOR INCREASED COVER 20 21 23 25 26 2a 30 32 35 37 40 42 45 49 52 56 TOTALINCOMEDIFERENTIALFORBASICEDUC 53 56 61 65 69 74 85 85 92 98 105 222 120 129 138 142 REDUCTION IN REPETMON I I I I 1 2 2 2 2 2 2 2 2 2 2 2 COSTS COST PER STUDENT (2) 318 334 351 368 387 406 426 448 470 494 518 544 571 6C0 630 661 BASIC EDUCATION COSTS WITH PROGRAM 341 365 391 419 449 481 515 551 590 632 677 725 777 832 891 954 8O BASIC EDUCATION COSTS WlHOUT PROGRAM 316 339 363 389 416 446 478 511 548 587 628 673 722 772 827 885 w DIFERENTlAL IN COSTS WllHOUT OVERAGE 25 26 28 30 32 35 37 40 43 46 49 52 56 60 64 69 COSTOFINCREASEDCOVERAGEOFPRESCHOO 13 14 15 16 17 19 20 21 23 24 26 28 30 32 34 37 SOCIAL GAINS (wiltint mnrity) 16 27 l8 28 21 22 24 25 27 29 31 33 35 38 40 43 SOCIAL GAiNS AFTER 5 YEARS (4) 26 27 28 20 21 22 24 25 27 29 31 33 35 38 40 43 0 o'a> * 3 flc:w iiiSL:kim$ witkrDEl TTAL YCoESf t 34i.1 11E'EFYON lRAEIN FlRS DE: : ::: l3% Total Emnployment EnMPtym lncm, by Eeployme~ Diffeou by G.&t Years of Schooling (K.e) A.u1 1992 prevedie 0 436 6324 Ge : :e 1-3 377 7980 1.26 1.26 4-6 411 9708 1.22 1.54 7-9 233 10909 1.12 1.72 10-12 197 15672 1.44 2.48 13+ 126 23668 1.64 4.06 TOTAL (in thouad) 1780 1 ______ Swm S Dppo. Reet o N- o Dnrpra I.: US$ : P."o GRADES 92 93 7. lEm h Q Deopons boorc Q2 O 424815 66,324 S.944 I n~~~~~~~~~~~~~27.99 220.353 19.4% 18.97. 61.67. 12.391 17.980 $11,309 42.815 $390D47 2 354.375 153.732 0.1% 8.6% 83.4% 10,512 17,980 19.404 12.391 $11,309 3 1357656 137.304 7.5% 6.3% 86.2% 9.992 17,980 19,113 10,312 19,404 4 118,293 122.452 8.2% 4.7% 87.2% 8.028 19,706 99,807 9,992 SI11,086 4 102,449 106.334 7.6% 3.2% 19.3% 10.251 $9,706 111.373 8,92 59.7 6 80,490 93.959 10.9% 2.8% 86.3% 7.975 $9,708 $89,84 10.251 $111.373 7 T7.459 79,7419 10.0% 2.1% 87.9% 6.171 $10,988 57.693 7.975 $9,942 7 63989 69233 1 9.0% 1.3. 79.7% 0 $10,906 s0 6.171 $7,693 9 16,297 59.422 0.3% TOTAL 10291 12042 1 06 $97,53 106,753 AVERAGE INCOME PER YEARS (Colones) 904 GADES0TIIW PWOGRAMACINV THE PO9 b ONEMENT 'QFDROPOUT 1 R:\ssrp2\'irtabl2. xQs 0 0 42,815 S6,324 S30.944 >~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r 95 ANNEX4 Social Assessment: Summary of Main Results EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECr SOCLL ASSESSMENT: SUMMARY OF MAIN RESULTS Background and Objectives 1. As part of the preparation of the project, a Social Assessment (SA) was undertaken between November 1994 and February 1995. The SA supports the operation by identifying major benefits and risks, and proposing an action plan on how to maximize the former and minimize the latter. Given that background and statistical information were already available, the SA focused on both the enforcement capability of the government and on the involvement of school communities in canying out the education reforms. The SA had two components. The first component, institutional, analyzed the organization and legal framework of the education system as well as its constraints. The second component, community participation, identified the main stakeholders, their values and interests, their evaluation of the education system, their level of information about it, and their willingness to participate. The SA sources consisted of desk review, focus groups, in-depth interviews, and a case study. Focus groups, rather than individual interviews, were chosen for both practical and methodological reasons: the practical reason was the limited time frame in which the SA had to work; the methodological reason was that the reform would rely upon the capacity of groups (school boards), rather than individuals (principals) taking over responsibilities in school management. Findings * The access and quality of basic education are considered a priority by the government. The priority placed on basic education is reflected in the 1994-99 National Plan for Development and in the government's budget. The first draft of the Plan identifies as main objectives, for 1995-1999, to: (a) increase the coverage of pre-primary education from 24.5 percent in 1993 to 40 percent in 1999 and increase coverage in the first six grades of basic education from 83 percent in 1993 to 90 percent by 1999; (b) expand the EDUCO program; (c) improve the quality of education in first through sixth grades by financing curricula, training and supplies; and (d) provide parents with incentives to discourage school drop-outs and encourage teachers to spend more time in the classroom. MINED's 1995 National Budget reflects this priority placed on basic education. * Education is valued and parents' attitude towards teachers is positive. Parents speak well of the school and teachers: "Teachers do miracles" according to one mother. There are fewer criticisms than expressions of support for teachers, and criticisms are attenuated by generalizations such as "80 percent of the teachers are very dedicated, very responsible, but 20 percent no longer want to teach." Because parents value education, they are critical of the government, which, according to many, "is neglecting health and education and building more roads. " * The new education goals are not yet known to their beneficiaries. Although there is a consensus that the education system should be changed, there is fear that the Government intends to privatize and "municipalize" education, thus undermining children's sole access to social mobility: "The reform is announced as if it were a privatization. If it [school] is to privatize we parents would have to pay more, and would not be able to support our families." Municipalization raises the fear that personnel decisions will be politicized even firther, and that 96 ANNEX 4 Social Assessment: Summary of Main Results they will be more arbitrary. A parent stated, "the municipal mayor's office is a political post. Mayors do not have the training or the time to take care of education issues." * The main constraints to reforming the education system are not economic but rather social, cultural and institutional. The SA provides evidence of satisfaction with the system among parents whose children are enrolled in EDUCO, although they must contribute to school building and maintenance. EDUCO's system is the best way for parents to be taken seriously. On the other hand, parents of children enrolled in traditional schools resent being called to meetings only to be asked for money. Another bottleneck in the system is the lack of teacher incentives. Thus, teachers seem to be more willing to move to the private sector because they feel it offers a better incentive system. Teacher incentives are strongly tied to self-esteem. Low self-esteem is correlated to lost prestige, poor benefits, arbitrary promotions, poor infrastructure and lack of access to good training. When teachers are asked what would make them feel more satisfied, they answer that they would like to receive more support from the Ministry as well as more incentives, more training, and more teaching material. Finally, the Government's inability to disburse all of its available financial resources is an indicator of its weak institutional capacity. - Self-esteem and respect in the community are linked to participation for both parents and teachers. In general, participation is considered important because it gives a role for people to play in society, bringing social recognition and creating a sense of self-worth. For parents, this is achieved through helping to define the interactive system their children belong to; for teachers it is found as they achieve the professional status they lost. * There is frustration with authority at every level. Results from focus groups indicate that teachers don't trust either the government, which they think is disdainful, or principals, who they think are erratic and unaccountable. One of the interviewed teachers said, "l was in a school where the director didn 't even have a promotion list. One day he took off his belt and hit one of my colleagues." Parents also distrust principals, often complaining that they only want their money, never telling them how the money is spent. On the other hand, principals claim to that it is difficult to reach parents because few of them attend meetings. They are also apprehensive about parents supervising their activities claiming that parents are not prepared to be active in their children's education. * Gender bias: women exercise their influence through husbands or companions. Women are not completely marginalized from making decisions, but men are the ones who vote in the ACEs. In 1992, 60 percent of the total ACEs' membership and 78 percent of their presidents were men. * Repetition and dropout rates are high, particularly in the fist grade. There are several reasons for high repetition in the first grade: teachers' inexperience, higher enrollment in first grade than in any other grade, lack of teaching materials, low family income, nutritional deficiencies, and absenteeism because of distance from school. Similarly, explanations for the dropout rate are rooted both within and outside the system. Common justifications for dropping- out of school include questioning the relevance and usefulness of what the student learns, claiming that earning a living takes precedence over education, and believing that the costs of sending children to school seem to outweigh benefits. Parents who live in communities far from education centers often wait 97 ANNEX4 Social Assessment: Summary of Main Results until their children are older to send them to school. Another common problem amongst poorer families is how to afford to have more than one child in school at the same time. * The institutional capacity of the education system is fragile. This fragility is shown in many ways: - Since 1989, MINED has been supported by a multiplicity of bilateral and multilateral organizations. However, an analysis of its financial cooperation projects during 1989-1993 confirms that the Ministry was able to execute only 42.3 percent of programmed financial resources. - MlNED's goals and strategies have been complemented by "compensatory" strategies promoted by the Social Investment Fund (FIS) and the Secretariat for National Reconstruction (SRN). Nonetheless, there is no effective coordination among the three offices to complement and maximize institutional resources. NflNED has not kept accurate records of the contributions that the FIS and SRN have made to education, particularly in the area of infrastructure. - Besides the Constitution, there are approximately 300 laws in the education system. The excessive number of laws results in confusion and ineffective regulation of the sector - Approximately 110 NGOs with education programs are registered in El Salvador; about half of them with technical training programs and the other half with management training programs. NGOs are capable of expanding coverage with subsidies from the public sector, but the SA reveals a distrust from both NGOs regarding the government and from the government regarding NGOs. - Current teacher training is problematic in three aspects. First, there is a concentration on secondary education training and in three subjects. About 81 percent of the teachers are being trained for the secondary level, 14 percent for the pre-primary level and 5 percent are certified as special education teachers. About 21 percent of the training is in social sciences, 18 percent in philosophy/humanities/esthetics and 14 percent in English. Training for the elementary education level has been suspended since 1990 and training for physical education teachers corresponds to less than 1 percent of total enrollment. Second, the Ministry is not fulfilling its role as quality control enforcer for training. Third, teachers are not receiving sufficient training for the posts they are to occupy. If this trend continues, supply and demand will be completely incongruous by the year 2000 resulting in 83 percent of teachers certified to teach secondary education while the demand would represent only 19 percent of total student enrollment. On the other hand, the demand for elementary education teachers would be 72 percent by the year 2000 while the current supply is zero percent. The structure of the current promotion system sends an implicit message that secondary education is more important than elementary education, thus steering teacher training demand towards the former. - The supervising function, which should be pedagogical, is also administrative. This creates double expectations and inefficiencies. 98 ANNEX 4 Social Assessment: Summary of Main Results Recommendations As a result of the SA, the following strategies are suggested: * Recognize that MINED's most critical problem is not the lack of resources but rather inappropriate management. It is suggested that the project include an institutional component to: (a) improve the information systems for monitoring, evaluating and making decisions; (b) develop mechanisms to increase coordination between the central units and units at the regional and community/local levels; (c) improve the quality of the supervisory system and the participation of the private sector, NGOs and groups from communities and universities; (d) perform a follow-up assessment of the project's impact, including promoting an evaluation system for learning performance that should be an integral part of curricular development; (e) structure and organize teacher training to: take place during vacation periods, be recognized academically by the University of El Salvador, begin as early as university training, and provide health care training to children and other community members. * Communicate to society that the main goal of education reform is not to privatize education, but rather to extend coverage and improve quality. * Suspend traditional hiring practices for teachers in order to reorganize the current system of teacher administration and education coverage. To take advantage of EDUCO's innovations, the traditional system has to be dismantled. Personnel hiring and replacement should be specifically assigned to each departmental education center and managed by community or civil institutions. * Simplify the legal framework which oversees the functions of MINED to serve as the basis for administrative and financial restructuring. k Ensure that teacher promotion is not based solely on seniority, but rather includes merit. Salaries should also correspond to the level of academic preparation and training required for each level. Categories should be flexible enough to recognize and to give incentives for further professional training. The Teaching Profession Law should: (a) apply exclusively to teachers (not supervisors, directors and technical staff); (b) abolish position assignments traditionally based on seniority; and (c) establish that teachers will compete for assigned posts and eliminate transfers of posts. Action Plan * Support MINED's Communication Unit in implementing mechanisms for consulting school communities (teachers, parents, supervisors, administrators and principals), NGOs, unions and other governnental institutions, in order to keep them informed about the project as well as to get feedback and suggestions from them. * Disseminate community and teacher innovations on administrative, financial and teaching/learning procedures through radio, videos and community meetings to help communities learn from each other. 99 ANNEX 4 Social Assessment: Summary of Main Results * Support MINED's initiative of following-up the project's implementation with focus groups of parents and teachers, adding new groups with different stakeholders, including school boards, school administrators, and administrative personnel from MIN4ED. * Promote public discussion of the goals and achievements of the new policy through workshops with conmmunity representatives and NGOs. Listen to suggestions on adaptations and changes needed. * Create mechanisms to inform MINED's employees of their new role and of the role expected from communities. * Study and compare the Salvadoran reform and the experience of community participation with other efforts carried out in Latin America to upgrade their experience in this material. * Create mechanisms to enlighten commnunities about the importance of having women participate in school boards and in decision making processes. 1:\ssrp2\ann_scas.doc 100 ANNEX5 Proposals for the modernization of the Education Sector within the Modermization of the Public Sector EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT PROPOSALS FOR THE MODERNIZATION OF THE EDUCATION SECTOR WITHIN THE MODERNIZATION OF THE PUBLIC SECTOR 1. This Annex summarizes the main aspects of three recent proposals for the modernization of the public sector in El Salvador. The first Public Sector Modernization Program was developed by the previous administration which was in power between 1989 and 1994. The other two have been developed by the current administration which took power in June 1994. The common theme that runs through each proposal is the decentralization of the delivery of services as a means of achieving increased coverage and improved quality in performance. Background 2. During the previous administration (1989-1994), the process of modernizing the Salvadoran public sector was launched with the support of the World Bank (IBRD) (Structural Adjustment Loans Ln. 3293-ES, 1991, Ln. 3646-ES, 1993, and Technical Assistance Loan, Ln. 3648-ES, 1993) and other external donors. Reform proposals were directed towards economic and social policies, and the promotion of a strong market economy. The strategy focused on six areas: institutional reorganization; administrative simplification; decentralization; privatization; strengthening of human resources; and fiscal and financial management. 3. The following three proposals are reviewed: (a) the IBRD supported Public Sector Modernization Program; (b) the 1994-1999 Plan de Desarrollo Econ6mico y Social; and (c) the Ministry of Education's (MINED's) general proposals for the modernization of the education sector. Public Sector Modernization Program (Programa de Modernizaci6n del Sector Pfiblico, PMSP) 4. Decentralization is one of the most important mechanisms developed in this strategy. The commission for Decentralization and Municipal Development was created in 1992 and developed concrete proposals within the scope of the general strategy. The document, "Socio-Economic Development Policy and Operational Strategy" (Sept 1994), explains the main guidelines. The model proposed for the strategy defines three areas to be tackled: local socio-economic development; municipal strengthening; and decentralization. Modernization of the Education Sector - Plan de Desarrollo Economicoy Social 1994-1999 5. In the education sector, the main guidelines mirror the overall social sector strategy. The main elements of the education strategy, according to the Plan, for the next five years will be: stronger focus on human, financial and material resources; decentralization and community participation; and privatization of some MINED actions, especially those related to technical education. 101 ANNEX 5 Proposals for the modernization of the Education Sector within the Modernization of the Public Sector 6. Policies designed to meet basic needs pursued objectives consistent with the priorities represented in the strategy, such as: to focus on poorer groups and areas; decentralization of services; and the reduced role of the state, with stronger roles assigned to the private sector and to the organized community. Emphasis was given to activities that could be completed in the short- and medium-term. Medium-term activities included the modernization of those entities responsible for planning and executing priority policies and services - the Ministries of Finance, Planning, Health, Education, Agriculture, Civil Works, Economy and the administrative entities working at the local level. MINED's Proposal for Education Reform 7. MINED's proposal for education reform intends to achieve two basic objectives: (a) increased coverage of the system; and (b) improved quality of the delivery of education services. While acknowledging the important advances that have been made since 1990, the proposal emphasizes the need for institutional modernization of the education sector, focusing on the administrative and planning systems. 8. The proposal considers two innovations as the axes of the reform: (a) schools and communities will jointly manage transferred resources for the operation and maintenance of the system; and (b) the central office (MINNED's central units) will be limited to the financing and regulation of activities, to technically support the system, and to evaluate its outcome. In other words, the decentralization process is the chosen way to achieve the main objectives of the reform, including a more effective relationship with the society, especially beneficiaries of the education sector. 9. The current institutional arrangements are plagued with inefficiencies due to MINED's highly centralized structure. To remedy these problems, the proposal has developed the following guidelines: (a) at the preschool and basic levels the management of services would be turned over: (i) to the community in rural areas by expanding the EDUCO model to the whole system; and (ii) in urban areas, management of resources would be the responsibility of schools with a gradual process of transfer of funds and responsibilities to intermediary bodies (department, district); (b) at the secondary level, resources would be directly transferred to schools; (c) for technical education, management would be transferred to other entities of the private sector (NGOs or profit oriented); and (c) at the university level, mechanisms of control of the provision and the quality of services would be created. 10. To guarantee that these changes are made, actions directed towards the improvement of the administrative and planning systems are required. Many of them are detailed in the proposal. Some of these include: an adjustment plan for technical and administrative personnel; creation of a permanent system of technical assistance for administrative matters; revision of MINED's organizational structure; implementation of technical and administrative career plans; reform of the legal framework of the education sector; and improvements in the budget planning system. 1:Asaap2\ann_prop.doc 102 Annex 6 Prioritization of Municipios EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT PRIORITIZATION OF MUNICIPIOS 1. The Ministries of Education (MINED) and Health (MOH), working together, have developed a system to classify the rural areas of the municipios' in order to target social services to those areas which are most in need. A ranking system for the rural areas in all 262 municipios in the country was developed based on the following indicators: (a) 1st grade repetition rate; (b) percentage of overage students in grades 1-9; (c) net enrollment rate for grades 1-9; and (d) percent of undersize children. The first three indicators are based on data collected in 1993, and the last on the 1988 census of size. 2. Each indicator was classified into four categories and was assigned points according to the category. REPETITION RATE PERCENTAGE OF OVERAGE STUDENTS Range Points Range Points 0-10 1 0-18 1 10.1-20 2 18.1-36 2 20.1 - 30 3 36.1 - 54 3 30.1+ 4 54.1+ 4 NET ENROLLMENT RATE PERCENTAGE OF UNDERSIZE CHILDREN Range Points Range Points 0-40 4 0-15 1 40.1 - 50 3 15.1- 30 2 50.1 - 60 2 30.1 - 40 3 60.1+ 1 40.1+ 4 These points were then summed for a total point score. Priority was assigned to the following ranges of point scores: Range Priority 13 -15 1 11-12 2 8 -10 3 1-7 4 Priority 1 represents those areas most in need of services. 3. The following table presents the 135 municipios selected by MINED to receive services. Activities in two parts of the project will be targetted to these municipios: the Expansion of Access to Preschool and Basic Education Component, and the School Health and Nutrition Subcomponent. A municipio is the second administrative level of the governmental system. The levels, in order, are: departamento, municipio, cant6n, caseria, comunidad. 103 Annex 6 Pnoritization of Municipios Net 1st Grade Overage Enrollment Repetition Students Rate Department Municipio Rate (Grds 1-9) (Grds 1-9) Undersize Ahuachapan Apaneca 11.0 45.3 29.8 47.6 Ahuachapan Concepci6n de Ataco 8.8 39.6 52.5 45.2 Ahuachapan El Refugio 0.0 0.0 0.0 32.0 Ahuachapan Guaymango 13.4 43.9 32.3 42.5 Ahuachapan Jujutla 14.6 75.7 48.5 30.1 Ahuachapan San Francisco Menendez 15.6 72.7 58.7 29.4 Ahuachapan San Pedro Puxtla 5.8 49.2 75.3 51.4 Ahuachapan Tacuba 13.1 54.5 51.6 46.6 Cabafias Cinquera 2.0 0.0 0.0 n.a. Cabanias Guacotecti 16.4 64.8 79.8 37.1 Cabafias Ilobasco 28.1 72.5 78.6 36.2 Cabafias Jutiapa 35.5 71.9 49.1 26.1 Cabafias Sensuntepeque 27.2 79.3 75.4 36.1 Cabanias Tejutepeque 16.5 46.2 18.7 28.3 Cabafias Villa Dolores 21.6 60.4 63.4 56.7 Cabafias Villa Victoria 35.9 67.1 34.6 45.6 Chalatenango Agua Caliente 21.5 82.6 66.4 25.3 Chalatenango Arcatao 2.0 0.0 0.0 27.0 Chalatenango Citala 12.8 70.0 51.0 21.9 Chalatenango Comalapa 21.7 61.1 88.0 40.4 Chalatenango Concepci6n Quezaltepeque 18.6 52.7 50.7 38.6 Chalatenango El Carrizal 14.2 80.0 102.9 45.4 Chalatenango El Paraiso 11.0 72.5 72.6 34.2 Chalatenango La Laguna 11.2 73.5 60.6 58.6 Chalatenango La Palma 18.2 59.4 76.3 38.3 Chalatenango Las Vueltas 2.0 0.0 0.0 n.a. Chalatenango Nueva Trinidad 2.0 0.0 0.0 n.a. Chalatenango San Antonio de la Cruz 47.6 60.8 60.8 40.7 Chalatenango San Antonio los Ranchos 2.0 0.0 0.0 n.a. Chalatenango San Femando 7.8 84.8 0.0 42.8 Chalatenango San Francisco Morazan 2.0 84.7 52.0 50.0 Chalatenango San Isidro Labrador 2.0 0.0 0.0 n.a. Chalatenango San Jose las Flores 2.0 0.0 0.0 n.a. Chalatenango San Luis del Carmen 2.0 50.2 66.9 17.4 Cuscatlan Candelaria 9.0 33.3 29.4 60.0 Cuscatlan El Carmen 11.6 49.0 39.8 50.0 Cuscatlan El Rosario 20.6 72.7 141.5 35.7 Cuscatlan Monte San Juan 8.1 56.6 36.3 46.4 Cuscatlan San Jose Guyabal 20.8 52.4 56.6 42.9 Cuscatlan San Ram6n 29.1 49.3 59.0 40.1 La Libertad Chiltiupan 14.6 43.2 66.1 41.4 La Libertad Comasagua 12.1 42.9 73.8 37.3 La Libertad Huizucar 4.8 31.5 73.6 43.4 104 Annex 6 Pnoritization of Municipios Net 1st Grade Overage Enrollment Repetition Students Rate Department Municipio Rate (Grds 1-9) (Grds 1-9) Undersize La Libertad Jayaque 11.8 47.3 71.5 46.7 La Libertad Jicalapa 19.6 74.7 44.8 36.9 La Libertad Nuevo Cuscatlan 20.3 63.3 0.0 30.2 La Libertad Sacacoyo 14.3 52.9 75.2 46.4 La Libertad San Matias 11.3 66.9 33.0 33.8 La Libertad San Pablo Tacachico 9.8 55.2 62.6 37.6 La Libertad Tamanique 13.2 50.1 159.9 38.1 La Libertad Teotepeque 18.5 77.2 64.5 29.0 La Libertad Tepecoyo 12.1 35.4 37.7 43.4 La Paz Jerusalen 53.1 56.4 35.2 30.7 La Paz Mercedes la Ceiba 2.0 0.0 0.0 16.6 La Paz Paraiso de Osorio 0.0 12.0 17.5 49.4 La Paz San Antonio Masahuat 38.8 74.2 61.9 32.0 La Paz San Emnigdio 41.1 86.3 64.3 33.3 La Paz San Juan Talpa 30.2 70.8 66.9 30.3 La Paz San Juan Tepez6ntes 18.7 52.5 64.8 46.8 La Paz San Luis la Herradura 32.9 67.0 50.7 27.9 La Paz San Rafael Obrajuelo 43.7 61.9 93.1 36.7 La Paz Santa Maria Ostuma 23.5 44.0 57.8 45.0 La Uni6n Bolivar 25.3 65.3 65.9 16.6 La Uni6n Conchaqua 28.9 72.9 50.4 30.9 La Uni6n El Carmen 25.4 68.9 61.3 38.5 La Uni6n Intipuca 23.0 89.0 35.1 28.2 La Uni6n Lislique 5.2 57.1 48.8 54.4 La Uni6n Meanguera del Golfo 12.3 73.6 57.6 23.0 La Uni6n Nueva Esparta 28.2 76.1 62.7 33.4 La Uni6n San Jose la Fuente 4.2 50.5 40.9 45.4 Morazan Arambala 2.0 0.0 0.0 28.0 Morazan Cacaopera 28.8 75.7 19.5 35.5 Morazan Chilanga 22.4 65.8 44.7 36.9 Morazan Corinto 19.4 78.5 31.7 51.0 Morazan Delicias de Concepci6n 18.8 54.7 30.7 39.1 Morazan El Divisadero 28.2 54.4 64.9 31.9 Morazan Guatajiagua 20.2 71.8 28.8 27.2 Morazan Jocoaitique 2.0 0.0 0.0 30.0 Morazan Jocoro 16.8 48.3 71.8 38.5 Morazan Lolotiquillo 13.2 86.4 61.1 25.8 Morazan Osicala 19.8 68.9 28.2 30.2 Morazan Perquin 3.6 33.8 4.5 51.8 Morazan San Fernando 2.0 0.0 0.0 36.0 Morazan San Isidro 61.9 94.3 25.6 14.0 Morazan San Sim6n 13.6 67.9 36.5 50.0 Morazan Sensembra 24.5 67.5 43.6 75.0 105 Annex 6 Prioritization of Municipios Net 1st Grade Overage Enrollment Repetition Students Rate Department Municipio Rate (Grds 1-9) (Grds 1-9) Undersize Morazan Sociedad 33.2 79.6 70.9 37.0 Morazan Yamabal 55.1 80.1 48.5 36.4 San Miguel Carolina 5.4 88.4 46.6 24.0 San Miguel Ciudad Barrios 13.9 79.2 39.8 33.5 San Miguel El Transito 8.6 50.0 79.7 37.6 San Miguel Lolotique 12.6 45.0 74.7 38.7 San Miguel Nuevo Eden de San Juan 10.7 90.3 74.0 31.0 San Miguel Quelepa 19.9 59.5 43.0 15.4 San Miguel San Antonio del Mosco 29.1 84.2 13.2 28.0 San Miguel San Gerardo 2.6 85.4 52.2 27.0 San Miguel San Jorge 3.3 69.6 55.6 30.4 San Miguel San Luis de la Reina 15.9 84.9 40.9 31.0 San Miguel Sesori 18.0 81.9 48.2 23.5 San Salvador Ayutuxtepeque 18.5 53.8 103.9 38.4 San Salvador Guazapa 41.6 78.9 38.5 27.5 San Salvador Nejapa 25.5 72.5 33.9 30.0 San Salvador Panchimalco 31.3 70.8 43.5 44.3 San Salvador Rosario de Mora 40.5 80.0 62.2 27.5 San Salvador Santiago Texacuango 28.2 55.7 29.2 50.4 San Salvador Santo Tomis 14.8 51.8 44.7 43.8 San Vicente Apastepeque 26.5 61.3 78.9 39.6 San Vicente San Cayetano Istepeque 14.5 61.1 68.2 42.0 San Vicente San Ildefonso 32.8 68.1 63.3 31.4 San Vicente San Lorenzo 19.4 49.9 99.0 38.2 San Vicente Santa Clara 19.3 75.0 39.9 23.1 San Vicente Santo Domingo 4.4 38.0 79.7 46.9 San Vicente Tecoluca 19.8 73.8 74.4 26.2 Santa Ana El Porvenir 28.4 60.9 50.8 32.5 SantaAna Masahuat 22.0 51.0 59.8 43.4 Sonsonate Cuisnahuat 21.3 72.7 58.6 37.1 Sonsonate Izalco 22.8 66.4 58.6 33.3 Sonsonate Juayua 20.1 60.6 60.4 39.6 Sonsonate Nahuizalco 17.8 65.3 43.1 41.0 Sonsonate Salcoatitan 10.9 44.6 32.7 39.1 Sonsonate San Antonio del Monte 12.3 69.8 55.5 39.6 Sonsonate San Julian 35.0 79.1 49.7 27.6 Sonsonate Santa Catarina Mazazuat 18.4 42.1 46.1 37.8 Sonsonate Santo Doniingo de Guzman 10.6 71.4 42.4 38.8 Usulutan Alegria 10.3 62.5 54.8 39.2 Usulutan Berlin 20.2 61.5 26.9 37.9 Usulutan California 2.0 75.0 16.6 19.2 Usulutan Concepci6n Batres 29.9 70.3 81.5 36.5 Usulutan Estanzuelas 17.3 61.4 72.9 39.2 106 Annex 6 Prioritization of Municipios Net 1st Grade Overage Enrollment Repetition Students Rate Departrnent Municipio Rate (Grds 1-9) (Grds 1-9) Undersize Usulutan Nueva Granada 13.4 80.4 27.4 28.4 Usulutan Ozatlan 26.4 69.1 64.4 31.1 Usulutan San Agustin 17.2 42.2 52.3 49.5 Usulutan San Diomnsio 21.2 64.0 37.4 53.8 Usulutan Santa Elena 16.4 52.8 44.4 37.8 1:\ssrp2\pdorit4.xJs n.a. Not available. 107 ANNEX 7 Expansion of Access to Preschool and Basic Education Component EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT EXPANSION OF ACCESS TO PRESCHOOL AND BASIC EDUCATION COMPONENT Background 1. Despite the efforts of MINED in the last years, serious problems of coverage remain, especially in rural low-income areas. This results in a lack of equity in the offering of education services. As the data demonstrate, despite the fact that basic education is guaranteed by the Constitution, the reality is that the coverage is less than universal. One of the best ways to increase coverage is to improve the administration of education services, and one of the most effective ways to improve the administration is to increase the involvement of the community. Thus, since 1991, MINED has established the increase in coverage as an objective in its education policy, emphasizing preschool and basic education services for the rural sectors through the EDUCO model. 2. A fundamental element for the achievement of a quality school is the availability of adequate physical infrastructure. The prime priority for the Government for improving school infrastructure is the rural sector, especially in those schools administered under the EDUCO system. Rural schools are clearly deficient in space provided by the community and much of the space is in a precarious state. According to Social Investment Fund (Fondo de Inversi6n Social - FIS) projections, the Government estimates that the financing of EDUCO schools would require approximately US$26 million. Emphasis will be given to the geographically unattended areas insuring a norm of a maximum distance of 2.5 km for children to travel to school. Infrastructure for new schools will be provided by FIS under an agreement with MINED. Objectives 3. The objectives of this component are to support the increase of rural coverage in preschool and basic education, and to strengthen the administrative mechanism through community participation as developed under EDUCO. Subcomponent la. Expansion of Access to Preschool and Basic Education Description 4. This subcomponent will support the expansion of the EDUCO program by: (a) increasing the coverage of preschool education services in rural areas from 26 percent to 40 percent which will increase coverage to 32,000 children in 1,000 new sections; (b) expanding the basic education coverage in rural schools in 1st to 6th grades, from 77 percent to 90 percent by the end of 1999. This will include the natural growth of the population covered in existing EDUCO sections and the expansion to other communities in which there are currently no services (64,000 children attending 2,000 new sections); (c) changing the administration of education services in rural areas by gradually transforming 3,070 traditional sections into EDUCO sections; (d) completing the second phase of the 108 ANNEX 7 Expansion of Access to Preschool and Basic Education Component microlocation study' for those schools not surveyed in the first phase to support policies options regarding the infrastructure program; and (e) rehabilitate infrastructure to foster the transformation of rural traditional schools to EDUCO schools, providing adequate infrastructure that will be administered by the ACEs. The program will have the support of FIS to provide new schools when they do not exist, including some substitution of current infrastructure that is inadequate.2 Implementation Strategies 5. For the creation of new sections, the strategy includes the following criteria: (a) the existence of a minimum school-age population (25 students per section) available to attend in both preschool and basic education (1st & 2nd cycles); (b) a community that demands education services and demonstrates a minimum level of organization; (c) the existence of physical space with at least minimum conditions; (d) the existence of qualified teachers in the community; and (e) municipios defined as priorities (see Annex 6). Mechanisms for Execution 6. The program for the creation of new sections has been adjusted to the capacity of MINED. The results of a pilot program that will be executed by MINED in the current year to determine the capacity of private institutions to accomplish the tasks of organization and promotion of the community will be evaluated. 7. The preliminary experiences and some studies seem to demonstrate that there exist in the country a considerable number of institutions that could offer services. This is of great importance because the planned increase of coverage already requires support for MINED. Rehabilitation of Education Centers 8. The project will finance the rehabilitation of the schools that are transformed to the EDUCO model. The deterioration of these 3,070 schools is estimated as 17 percent of the cost of building new schools. The rehabilitation of 1,535 classrooms will be required for the 3,070 sections that are estimated for transformation. This will require a cost estimated at US$2,600 per classroom, or financing of US$4 million that would be administered within the framework of this project. This will be critical to foster the process of administration/maintenance under the full responsibility of the ACEs. Under the SSRP, MINED started a program for maintenance of schools with the support of the ACEs that will guarantee the maintenance of infrastructure. ' Under the SSRP, an intensive survey of the existing education infrastructure has been undertaken to determine the costs for providing infrastructure, the amount of rehabilitation required for existing infrastructure, and the areas where services are needed. 2 The infrastructure needs will not be financed using project funds. 109 ANNEX7 Expansion of Access to Preschool and Basic Education Component Subcomponent lb. Strengthening the EDUCO Program Description 9. The first phase of EDUCO has given birth to a radical departure in the way basic education is administered and operated in El Salvador. This rests on the principle of local responsibility through elected Community Education Associations (Asociaciones Comunalespara la Educaci6n - ACEs) for the provision of basic education services for the children of a given community. ACEs have emerged with little planned effort to develop the specific skills which are essential if they are to support the physical extension of schools, hire and monitor the performance of teachers, develop supplementary education programs for adults through associated Parents Schools. 10. Given the close linkage between ACEs/Parents Schools and the wider process of community organization and development, MINED decided to explore and test ways of strengthening community-based strategies by working through NGOs or private organizations which already have the track record and specific skills needed to work at this level. The pilot will be developed in three departments (Cabanas, La Union and Ahuachapan) and an evaluation of the strategy will be made at the end of the year. Based on the success of the pilot, the schedule will be expanded according to the following table. -Schedulfor Ex p dithe Pilot Epenence Year I Year 2 Year 3 Year 4 Year 5 ACEs 300 500 1,000 1,800 2,500 Departments 3 7 14 14 14 11. The involvement of the private and nongovernmental sector as working partners is regarded as fundamental to the EDUCO approach as a whole, and especially to the community component, as the programn enters its second phase. Objectives 4 12. The broad goal of the community participation component is to strengthen the community's engagement with the basic education sector, whether in the delivery of services or as learners. There are four basic objectives in the attainment of this: (a) to build skills and capacity in parents to operate ACEs effectively; (b) to improve the organization and learning environment of Parents Schools as an essential component of the ACE strategy; (c) to further develop and refine mechanisms which will ensure that the local community participates permanently and effectively in the management of the basic education services serving its children; and (d) to execute further in-depth studies of the operation of the current ACE model, drawing out the lessons which can enhance community participation both in service delivery and in their own education. 110 ANNEX 7 Expansion of Access to Preschool and Basic Education Component Implementation 13. In the first phase of EDUCO, the ACE concept, and even the structure, was present in many instances but was largely unsupported by an institution-building effort on the part of MINED. The second phase of EDUCO must therefore address the institution-building and human resource development needs of the ACEs and of MINED itself. This implies necessarily drawing on experience outside government as in the case of the current (1995) pilot project. 14. It is envisaged that, within the framework of the proposed project, a national pilot program should be set up, subject to competitive bidding, limited to NGOs or private organizations, which over the full five years of project implementation would develop, implement and document a support mechanism for ACEs and Parents Schools. The specific field components of such a program would be: (a) the expansion of access to preschool and basic education employing the ACE mechanism; (b) the development and implementation of training programs for ACE, their members, their teachers and their supervisors; (c) the development and implementation of training and staff development programs for MINED personnel so as to ensure effective monitoring and support for the program; (d) the development and application of curriculum, materials and training methodologies to address the range of problems faced by ACEs and their clientele. 15. The system of competitive bidding for social sector projects is already well established in El Salvador. The disadvantages are that the procedure can be administratively demanding and that the awarding agency, in this case MINED, must have a very clear perception of the purposes of the exercise and the qualities sought in the ultimate winner. This relates again to the need for enhanced understanding of the program on the part of MINED. The advantages of the system are that it ensures the donor a measure of neutrality in the allocation of funds; that unless one agency is dominant in a particular field, there can be a beneficial coalition building effect among the bidders and, of course, it can have a restraining effect on costs. 16. It is recommended that the funding banks and the national authorities proceed as follows: (a) agree in principle to proceed with a competitive bidding process for the NGO-private organization/community participation component of the proposed project; (b) reach mutual consensus, drawing on external consultancy if necessary, on the criteria and content of a public Request for Proposals; and (c) establish procedures for public announcement, submission of proposals, refereeing and contracting. am_wv.dm 1 1 1 ANNEX 8 Improvement in Education Quality Component EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT IMPROVEMENT IN EDUCATION QUALITY COMPONENT SUBCOMPONENT 2A: CURRICULUM DEVELOPMENT Background 1. Curriculum is a fundamental component of the education process. It determines the socio- cultural contents that will ultimately shape the education of students. The main problems affecting curriculum in El Salvador are lack of connection with the cultural environment, and the poor teaching methodologies adopted by schools. These methodologies reinforce conservative teaching practices, which emerge from obsolete pedagogic methods that disregard education as a dynamic social process. This phenomenon is especially severe in El Salvador, a country which recently finished a violent conflict, and is currently struggling to consolidate its peace process. 2. Another important problem of the curriculum is its lack of continuity. The curriculum for the first two cycles of basic education (1st to 6th grades) has been developed, by the Education Improvement Program (Programa de Mejoramiento Cualitativo de la E4*caci6n),which was initiated by MINED at the beginning of the 1990s within the USAID-financed SABE Project (Proyecto de SolidfJicaci6n de la Educaci6n ). No curriculum for the 3rd cycle (7th to 9th grades) has been adopted. This fact hinders a consistent development of students. In addition, no curriculum has been designed especially for rural areas. Objectives 3. The main subcomponent objectives are to: (a) improve the quality of education for rural preschool and the 3rd cycle of basic education (7 to 9 grades) through a curriculum improvement program; (b) enhance the quality, and facilitate the use, of curricular instruments, planning programs, and supporting materials at the preschool and basic education levels; (c) promote participation of the community, teachers and school children, and the use of local resources in the process of quality improvements at the preschool and,basic education levels; and (d) design and implement multigrade programs for basic education students in rural areas. Description 4. The subcomponent will complement curriculum activities initiated by the SABE Project These activities would involve: (a) defining learning objectives and content for core curriculum modules at the preschool level in rural areas; (b) creating a curriculum for the 3rd cycle of basic education (grades 7 to 9) that complements the one designed for the 1st and 2nd cycles; (c) developing a multigrade pilot program in EDUCO schools; and (d) establishing a new student promotion system. 112 ANNEX 8 Improvement in Education Quality Component Implementation Strategies 5. The subcomponent will use the following strategies: (a) participation of all individuals involved in the education process for the diagnosis of education, cultural and social needs; (b) decentralization of the curricular process to the teachers. Based on the general curriculum guidelines established by the National Directorate of Education and the local conditions, teachers should adapt their teaching practices to better fit student needs; (c) development of a multigrade methodology for education in rural areas, including specific instructional materials and community involvement in school activities; and (d) use of appropriate technologies and innovative methodologies for adopting curriculum requirements to children and community's characteristics. These strategies would increase and facilitate active participation of children, parents, teachers and other community members. Finally, the subcomponent would also use: (e) implementation of systematic mechanisms for monitoring curriculum instruments and curriculum improvements.. 6. The subcomponent will provide: (a) technical assistance for studies of curriculum and student promotion; (b) production and distribution of approximately 26,000 curriculum guides for the 3rd cycle of basic education, and 31,000 curricular guides for rural schools; and (c) production of materials for multigrade classrooms. SUBCOMPONENT 2B: TEXTBOOKS AND INSTRUCTIONAL MATERIALS Background 7. MINED had three institutions specializing in designing and providing printed materials: (a) Centro de Producci6n de Materiales Educativos (CENPROME); (b) Servicios Tecnicos Pedag6gicos, whose main project was the Plan Nacional de Libro Escolar (PLANALIBRE); and (c) Education Technology. All of them received aid fromAlianzapara elProgreso, USAID and IBRD. 8. In 1990, the National Directorate of Education (Direcci6n Nacional de Educaci6n - DNE), which includes the Directorate of Education Materials (Direcci6n de Materiales Educativos - DME), was created. Since 1991, DME has developed a program of providing conventional and non- conventional materials for basic education with resources from the SABE Project. This program led to the gradual inclusion of recurrent expenditures on instructional materials into the ordinary budget of MINED. 9. Currently, school textbooks are produced by education specialists, supervised by MINED curriculum staff. Textbook printing is done by the private sector under the coordination of the DME. The supervisors are in charge of following up the distribution of textbooks and instructional materials to guarantee that all schools receive the mnaterials as planned. 10. Deficiencies in the number of textbooks provided to students and schools was clear in a recent evaluation study' that showed that one-third of traditional teachers and 43 percent of EDUCO teachers reported that their students had no textbooks. World Bank. 1994. 'El Salvador - Community Education Strategy: Decentralized School Management." Country Department II, Human Resources Operations Division, Latin America and the Caribbean Regional Office, Washington D.C. 113 ANNEX 8 Improvement in Education Quality Component Objectives 11. The main objectives of the subcomponent are to: (a) provide to preschools, basic education centers and Model Schools for Education Development (Escuelas Modelos de Desarrollo Educafivo - EMDEs) the materials needed for the development of the national curriculum to support improvements in education, and enhance teacher and student performance; (b) achieve long term sustainability in the provision of instructional materials which support the development of the curriculum and the quality of the education provided; (c) design and implement a Basic Package of Instructional Materials System for preschool and basic education students in rural and urban areas; (d) promote the development of a pernanent system for the production and distribution of textbooks and instructional materials, to preschool and basic education students; and (e) provide equipment, furniture and instructional resources to the district pedagogic centers. Descniption 12. The subcomponent will support: (a) the production and distribution of approximately 3,500,000 books, including two instructional booklets for preschool students, and four textbooks (Spanish, mathematics, natural sciences and social studies) for grades I through 9; (b) modular student instructional guides, to foster auto-instructional use by students, will be provided to students in grades 1 through 6, both in urban areas and in the multigrade classes in rural areas; and (c) books for about 3,400 school libraries will be provided to preschool and primary schools in urban and rural areas; 2,000 classroom libraries will be provided to preschool and basic education EDUCO schools; and 200 laboratory kits will be produced for 3rd cycle schools. Each school library will have 2 copies of about 100 titles plus reference books, and each classroom library will be made up of 2 copies of about 20 titles plus reference books; (d) a package of instructional materials (canasta bdsica) to be distributed annually to all preschool and primary schools in urban and rural areas; (e) equipment and laboratory kits to 3rd cycle basic education schools. Implementation Strategies 13. Basic school package (canasta bszca). MINED will continue the policy of distributing instructional material packages to schools at all levels. Through this strategy MINED will guarantee that the schools/sections have all necessary materials for curricular activities. Two strategies will be used for the provision of the basic instructional materials: (a) distribution of the canasta basica to urban schools; and (b) provision of funds (local level and school funds) to schools to purchase instructional materials. 14. Textbooks, and curriculum guides and study programs. MINED will provide textbooks for the 1st and 2nd cycles of basic education; notebooks for first grade; and the booklets for preschool education. Under this project, textbooks and curriculum guides and study programs for the 3rd cycle of basic education will be prepared and distributed. 15. School and classroom librarv books. Through this program, library books will be provided for preschool and basic education schools. In addition, specialized libraries will be created in the Teacher Training Centers (Centros de Capacitaci6n de Maestros - CCMs), and in the EMDEs. 114 ANNEX 8 Improvement in Education Quality Component 16. For the distribution of textbooks and the canasta basica, MINED will use the distribution system established under SSRP which involved the contracting of private transportation firms to carry pre-packaged textbooks and instructional materials from the central warehouses to the departments, and from the departments to the districts. The distribution plan ensures that the instructional materials will arrive at schools before the beginning of each school year, and new textbooks will arrive before the usable life of existing textbooks expires. SUBCOMPONENT 2C: IN-SERVICE TEACHER TRAINING SYSTEM Background 17. One critical input for improving quality in El Salvador is teacher training, pre-service and in-service. Teacher training specifically designed for preschool education or the early years of basic education barely exists. Currently, with the support of the SABE Project, several in-service teacher training activities have been developed to support curriculum implementation. Approximately 90 schools have been used either as in-service teacher training units or resource centers. The impact of these activities has been limited due to the lack of pre-service training programs for basic education teachers, and the lack of a systematic approach to improve the quality of the teacher training programs. Objectives 18. The major objectives of the component are: (a) develop a decentralized in-service training program through the EMDEs; (b) diagnose the in-service training needs at the local level (the schools) for teachers, directors, and supervisors; (c) provide technical assistance to the curriculum staff groups, at the national, regional and local levels (EMDEs); (d) design a follow-up model to create feedback from the central to the regional level; from the regions to the EMDE; and from the EMDEs to their associated schools; (e) establish a system to disseminate training results and teaching experiences among teachers in the same education levels; (f) identify the pre-service training needs for preschool and basic education and prepare an action plan for implementation; and (g) prepare a study on human capital available for secondary education and an action plan to identify further investments needed at the secondary level. Description 19. The proposed project will support the establishment of an integrated/decentralized training system. This system will gradually phase three CCMs into existing education facilities, and establish a network of EMDEs which will function as in-service training and pedagogical resource centers. The EMDE concept has been built upon the existing experience of the Education Training Centers (Centros Educativos de Capacitaci6n - CECs) which were developed under the SABE project on a experimental basis. 20. The proposed project will provided technical assistance for the: (a) design of plans and programs for in-service teacher training programs; (b) design of a systematic assessment system to identify in-service training needs for preschool and basic education levels; (c) production of training modules and evaluation of outcomes; (d) development of an assessment study of the pre- 115 ANNEX 8 Improvement in Education Quality Component service training needs for basic education and preschool teachers, and (e) establishment of an accreditation system for teachers. 21. Training will be developed as: (a) seminars for teachers working in the EMDEs (80 hours); (b) programs offering specialized courses for: (i) preschool teachers (80 hours); (ii) basic education teachers in grades 1 to 6 (80 hours), basic education teachers in grades 7 to 9 (80 hours year 3, 40 hours years 4 and 5); (iii) EDUCO multigrade teachers (120 hours); (iv) school principals (80 hours); and (v) supervisors (120 hours); and (c) follow-up teacher training at the EMDEs through 12 workshops per year, supported by the district supervisors. 22. The project will also provide: (a) funds for contracting out selected content/pedagogical training programs to universities or research centers; (b) funds for contracting a study on secondary education development; (c) furniture, equipment and rehabilitation of facilities to be used as the CCMs and the EM4DEs; and (d) specialized training libraries at the EMDEs. Implementation Strategies 23. The strategy will be based on the establishment of a training system designed to be implemented through: (a) the DNE at the central level which will be responsible for establishing national teacher guidelines; (b) the CCMs at the regional level; and (c) the EMDEs at the local level. 24. The CCMs will be responsible for: (a) developing teacher training programs for preschool and basic education teachers; (b) supporting the in-service teacher training programs to be implemented by the EMDEs; (c) preparing teacher training instructional materials, and pilot training programs; (d) contracting out content training programs to universities; and (e) monitoring teacher training programs. 25. Training personnel at the CCMs. The training professionals, currently working at the Regional Departments of Education (about 12 in each of the regional training units), will form the basic staff of the CCMs. 26. EMDE training activities. The EMDEs will be responsible for: (a) in-service training activities with the support of the CCMs; (b) functioning as resource centers for associated schools; and (c) providing opportunities for exchange of pedagogical experience among teachers of the associated schools. 27. Teachers trained under the Basic Education Leadership Training Program (Capacitaci6n de Lideres de Educaci6n Basica - Becas CAPS) will be assigned to each of the schools in the network to function as animators of the in-service teacher training activities. An incentive will be established to those schools and teachers that take part as trainers or monitors of associated schools. 28. Criteria for selecting the Model School. The following are the criteria to establish an EMDE: (a) the existence of school principal and teachers trained by the Becas CAPs program; and (b) infrastructure to accommodate the equipment and library to support the in-service training 116 ANNEX 8 Improvement in Education Quality Component activities. EMDEs will be gradually organized and equipped following the implementation schedule for decentralization of activities to departments and districts ( see Annex 9). 29. The implementation of the in-service training system will parallel the development of the prototypes in the three selected departments (see Annex 9). During the pilot implementation of the prototypes, the CCMs and existing CECs will continuing developing the training programs following the guidelines and plans of the DGE. Special training programs for the trainers will be provided by the staff development program. SUBCOMPONENT 2D: EDUCATION ASSESSMENT SYSTEM Background 30. Under the SABE project, MINED began using achievement tests to assess the impact of the new core curriculum for grades 1-6. However, the results of this exercise showed that MINED's resources and capacity are too limited to monitor and evaluate academic achievement and standards of teaching across the country, and in the different modalities of education services provided. There is a need to create in the Ministry of Education an evaluation system to support education policy options regarding teacher training, textbooks and instructional materials. Objectives 31. The objective of this subcomponent is to: (a) provide national, uniform criteria to determine the basic academic objectives sought at the end of each of the three basic education cycles (grades 3, 6, and 9) based on the development of learning capabilities and cognitive development; (b) improve classroom pedagogical methodologies, reinforcing the responsibility of schools and teachers for the learning achievement of their students; (c) mobilize public opinion to support education reform; (d) provide a basis to target education investments to those schools with the highest risk of student failure; (e) help define the priority needs for pre-service and in- service training programs; and (f) strengthen the country's technical capacity for monitoring student achievement as a tool to increase the education system's efficiency and accountability. Description 32. Considering the lack of experience in the country in carrying out achievement tests on a permanent basis, this subcomponent would provide: (a) technical assistance for: (i) further developing the existing system, including the preparation of tests, and implementing it on a nationwide level; and (ii) designing training programs for the development of technical skills for both local university/research center staff and MINED Curriculum Directorate staff members responsible for the coordination of the evaluation assessment system; (b) funding for equipment, office furniture and operating costs for an external evaluation unit (university/research center); (c) the production and implementation of a sample of language and mathematics achievement tests, and a survey to determine the impact of selected associated factors to the learning process for grades not covered by the SABE Project; and (d) supplies, materials and computer services. 33. The system of external evaluation will test, each year, a nationally representative sample of those students finishing each cycle of the basic education system (grades 3, 6 and 9) on Spanish 117 ANNEX 8 Improvement in Education Quality Component and mathematics. Additionally, readiness tests will be administered at the beginning of first grade and at the end of third grade. To cover the whole learning evaluation process a survey on the impact of associated factors that might impact the learning process, will be applied to the sample of schools selected. Three major criteria would be considered in the sample selection: (a) type and size of school according to official categories; (b) source of funding (public, private and public/private); and (c) geographic area (department, rural, urban and urban-marginal areas). Implementation Strategies 34. MINED will be responsible for: (a) coordinating the student achievement evaluation; (b) selecting the external agency to implement the evaluation under terms of reference approved by the Banks; and (c) disseminating the results of the evaluation. 35. The external agency (university or research center) will be responsible for: (a) selecting the contents to be measured based on the study programs; (b) developing the pilot test; (c) producing the tests; and (d) testing the school and student samples selected. 36. Test samples. The tests will be administered every year to samples of 10 percent of those children finishing each cycle of basic education. The only exception will be the readiness tests which will be administered to all students at the beginning of first grade and at the end of third grade. The samples from preschool and basic education schools should be determined according to the distribution of the countrys population and sorted by: type of school (size according official categories); funding sources (public or private); and geographic area (departments, rural, urban and marginal-urban areas). 37. Pilot test. A pilot test will be developed consisting of two parts: (a) a survey of students and teachers to gather information on teacher and student reactions to the test; and (b) the test itself. The information obtained in the pilot will help to classify the items in three categories: usable items; items to be improved; and items to be discarded. The items which can be improved will be revised and re- elaborated for further development. The usable items will be included in the definitive version of the tests, and will be part of an item bank. 38. Final tests. The final tests will be designed to measure 14, 18 and 20 goals of the 1st, 2nd and 3rd cycles, respectively. Each goal will be measured with three items, rendering 42, 54 and 60 items per test respectively. For each course and cycle there will be as many parallel forms as possible, taking into consideration the number of items contained in the item bank for each goal. A survey will be used to collect information on associated factors. 39. Technical aspects. For interpreting the test results (related to criteria), it is necessary to determine passing grades (number of points) or domain, per goal, in each cycle. 40. Dissemination of test results. The dissemination of the results of the tests will be done as part of the overall evaluation system coordinated by MINED's Evaluation Unit (Unidad de Analisis de la Calidad de Educaci6n - UACE) in the Planning and Organization Department (Oficima de Planificaci6ny Organizaci6n - ODEPOR) 41. In close coordination with DNE, UACE will be responsible for: (a) defining the information related to student achievements to be disseminated; (b) canrying on additional evaluation studies with 118 ANNEX 8 Improvement in Education Quality Component the same sample of schools, if needed; and (c) producing reports and supporting materials to deliver the achievernent test results to different target population (parents, teachers, and community). SUBCOMPONENT 2E: SCHOOL HEALTH AND NUTRITION PROGRAM Background 42. Hunger and malnutrition diminish the physical and mental capacity of poor children. Protein-energy malnutrition and the lack of certain micronutrients, especially iodine and iron, reduce learning capacity and academic achievement. Deficiencies of vitamin A and iron also reduce resistance to infections which can increase absenteeism associated with poorer school achievement. In addition, research shows that children who go to school without breakfast have difficulty concentrating, and perform less well than children who have had breakfast. This effect is greatest in children who are also malnourished. School nutrition and health programs to alleviate hunger and malnutrition can complement other effort to improve the quality of primary education and contribute to improving the efficiency and effectiveness of the education system. 43. Hunger and protein-energy malnutrition. According to the first height-for-age census of 1st grade school children conducted in 1988, one-third of Salvadoran children are malnourished. In the least developed municipiosY, the prevalence rises to more than half. A Ministry of Health (MOH) study conducted in 1994 corroborates the results of the census. It showed that 61 percent of preschool children in the least developed municipios are malnourished. Objectives 44. The overall objective of the component is to improve the nutrition and health of school- aged children in the 135 target municipios (see Annex 6). Improvements in children's nutrition status are intended to contribute to increased learning capacity which will improve education effectiveness and efficiency. The specific objectives are: (a) increase knowledge of nutrition and health among school children; (b) change certain health and nutrition practices among school children; (c) decrease overall prevalence of parasitic infection in school children, and in the entire community, served by the school-based anthelminthic program; (d) improve the micronutritient status (vitamin A, iron and iodine) of school children receiving treatment through schools, and (e) identify alternative mechanisms to facilitate the implementation of the school feeding program. Description 45. To begin to address some of the nutrition and health needs of school-aged children, the project will include a component which will support interventions and activities to: (a) increase knowledge and change practices related to nutrition and health in the school community; (b) prevent and treat significant nutrition and health problems of school-aged children; and (c) evaluate the on-going school feeding program while identifying and testing alternative school feeding models for the municipios with the most poverty. 2 A municipio is the second administrative level of the governmental system. The levels, in order, are: departamento, municipio, cant6n, caseria, comunidad. 119 ANNEX 8 Improvement in Education Quality Component 46. To improve knowledge and change practices related to school health and nutrition, the program of Science, Health and Environment includes objectives related to nutrition and health. The subcomponent will ensure that these objectives are incorporated into the curriculum of basic education, as well as into the pre-service and in-service teacher training programs. Instructional materials to support the curriculum will be developed under the Improvement in Education Quality Component. 47. To prevent and treat significant nutrition and health problems of school-aged children, the subcomponent will support the following interventions: (a) Vitamin A. iron, iodine and anthelminthics. A total of 238,000 primary school children in the poorest municipios in the country will receive iodized oil capsules, vitamin A supplements, and anthelminthic treatment once a year, and iron supplements every week, through the schools. The teacher will have the responsibility for distributing the medicines in cooperation with the community and the representatives who are in charge of the school feeding program. The rnicronutrition supplementation will be coordinated with the fortification efforts underway in the country. Where possible anthelminthic treatment will be combined with efforts to improve the school sanitary environment. (b) Vision and hearing. Vision and hearing problems will be identified in the group receiving treatment as described in (a), and remedial actions taken for impaired children. One teacher in each school will be trained to apply simple vision and hearing tests. According to norms established with MOH, or with NGOs, children will be referred to a second level for diagnosis and eventual treatment. Agreements will be established with NGOs to treat certain cases. The teacher will also institute measures to facilitate teaching children who have sensory problems, such as moving the child to the front of the room. The pilot project will determine the effectiveness of these additional treatments and their operational feasibility. (c) Evaluation. The component will also support a case/control evaluation of these nutrition and health interventions. The impact on school (attendance, dropout, repetition) as well as on health and nutrition (iodine, iron and vitamin A status, parasitic infection, weight height) will be assessed. Issues related to costs and delivery will also be evaluated. 48. School meal program. MINED distributes lunch or an afternoon snack to almost all school children through donations by international organizations, primarily the World Food Program (Programa Mundial de Alimentacion - PMA). The ration of rice, oil, canned meat, and nutritive drink provides approximately 400 calories and 11 grams of protein, and costs approximately 1 colon (US$0. 11) per child per day. The subcomponent will support an evaluation of the school feeding program focusing on: distribution, storage, preparation of the food, number of rations, actual nutritional content of rations, consumption, participation of the community, and other operational issues. Based in part on the problems and issues identified through the evaluation, two pilot studies will be supported to test alternative school feeding models to eliminate logistical or other problems. One study will evaluate a system of decentralized food purchases, providing money directly to the community with which to purchase 120 ANNEX8 Improvement in Education Quality Component food locally. Another pilot will study an alternative program which delivers ready-to-eat snacks (cookies and a nutritive drink) in those areas where infrastructure is inadequate for preparing food at school. The proposed project will contribute only with the evaluation of programns actually undertaken by other GOES agencies. Implementation Strategies 49. To assure close coordination of the three agencies involved in the implementation of this subcomponent, technical agreements between MINED and MOH, and MIINED and the National Secretariat of the Family (Direcci6n de Logistica Alimentaria de la Secretaria Nacional de la Familia) will be signed. MOH will be responsible for: (a) revising the technical content of the training programs; (b) identifying the areas of highest risk of deficit of micronutrients; (c) approving the proposed therapeutic norms; (d) treating sensorial problems detected; and (e) participating in the evaluation of the impact of the nutrition intervention. The reactivation or creation of mixed commnissions of education and health at the central, regional and local levels is proposed to assist in the coordination of both the education and health sectors. The National Secretariat of the Family will be responsible for administering the school feeding program. 50. Among the low cost interventions of known efficacy and easy implementation, the decision has been made to apply programs of extended coverage (iodine, vitamin A, anti-parasitic agents). For those activities that require a major effort from the education sector, pilot studies will be performed to evaluate their feasibility before implementing programs of major coverage (iron, detection of vision and auditory problems). 51. Technical assistance will be offered to the Nutrition Unit (Unidad de Alimentaci6n) of MINED to strengthen its capacity to manage. an3_qual.doc 121 ANNEX 9 Institutional Modernization Component EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT INSTITUTIONAL MODERNIZATION COMPONENT Subcomponent 3a.: Modernization of MINED. Objectives 1. The main objective of this component is to carry out institutional modernization and strengthening of the education sector, a necessary condition to achieve the Basic Education Modernization Project's objectives in terms of: (a) expanding access to, and improving the quality of, preschool and basic education; (b) reinforcing the Ministry of Education's (MINED's) capacity to set policies and guidelines for the sector; and (c) improving the public system's capacity for delivering education services effectively and efficiently. Description 2. The modernization component includes: (a) design and implementation of a new organizational structure for MINED, including central, departmental, district, and community levels to reinforce education activities at the school center; (b) revision of the legal framework to support the new organization; (c) design and implementation of the systems to support education operations: resources management, information, planning, evaluation and monitoring, communication and supervision; (d) establishment of a staff development program to improve the technical capabilities of managers, technical/pedagogical, and administrative staff to support improvements in the provision of education services; (e) introducing an adequate structure of salaries and incentives to the teachers and administrative staff; and (f) development of a Pilot Basic Education Fund to support pedagogical and methodological innovations. 3. To achieve the goals of the education reform and to establish new ways to deliver services, new processes, procedures and systems will be developed. These new processes and systems will also be tested during the implementation of the pilot program (see para. 6). The implementation of the actions to foster policy development and changes on a long-term basis will be based on the review of MINED's organizational structure and legal framework. 4. The changes to be made aim at establishing: (a) a Decentralized System of selecting, preparing and providing fiscal resources, human and financial, that give automatic increases to the education centers and improve the efficacy and efficiency of the system. (b) Planning, Management Information and Evaluation Systems of resources allocation (human, physical and financial) based on the needs and priorities identified at the local level, and linked to the planning systems at the departmental and central levels. Management evaluation measures the opportunity, adequacy and cost of the contribution of education services in improving the activities of assigning resources. Evaluations will also look at the impact of services in terms 122 ANNEX 9 Institutional Modemization Component of effects on production, social equity and in the achievement of society's aspirations, measuring the relationship between benefits and costs. (c) Monitoring Systems able to influence policy formulation and analysis, to improve resource allocation and the budget process, and to conduct joint evaluations with external agencies to measure the impact of education interventions. The consolidation of the evaluation system within the education sector is one of the priorities for the education reform. The evaluation activities are essential to foster the technical-pedagogical system with dependable information necessary for the development of strategies, technology and material to support quality improvements. These activities will also support the planning activities which must be based on reliable, and updated information. (d) a Management Information System (MIS) capable of supporting the decision- making process in the areas of planning, budgeting, and evaluation of education activities. Project activities in the MIS will strengthen the current MINED Computer Center in terms of personnel and equipment. (e) Education Supervision. Although restructured in 1991, the supervision system has not been able to provide sound technical support and guidance to teachers in traditional or EDUCO schools. Several assessment studies done by MINED show that supervisors undertake a variety of activities without a regular pattern for supporting teachers in making learning more effective. To solve this problem, this subcomponent would support activities to: (i) reorient the supervision system in the direction of providing technical support to teachers and school principals; (ii) disseminate results of education program evaluation; and (iii) give feedback to correct shortcomings in the education process. To increase the professional capacity of the supervisors, the program seeks to achieve a qualitative change in their functions by increasing the time employed in monitoring teaching activities and by reducing their strictly administrative responsibilities. The major issues to be addressed by the subcomponent regarding the supervision system are: (i) establishing adequate supervision mechanisms; (ii) defining a clear assignment of activities; (iii) enhancing supervisor technical skills and basic equipment; and (iv) establishing incentives for the supervision system to visit schools in remote rural areas. The new organizational structure for the supervision system will be based on studies and processes to be tested in the pilot phase of this component (see para. 6). (f) a Communication Program to provide a permanent information channel within MINED, between MINED and the public, and to receive feedback from the sector's stakeholders. The reform of the education sector has to be built on an effective communication strategy, both to ensure citizen participation in the education endeavor and to facilitate participation, commitment and the sharing of common goals by the main actors in the education sector. A communication strategy will include: (i) a social communication program to support community participation and provide education planners with feedback; and (ii) institutional communication activities to generate a flow of information within and among the 123 ANNEX9 Institutional Modernization Component different agencies involved in planning, financing, administration, evaluating and executing education services. The communication strategy will use social research techniques, particularly the 'focus groups" technique, in the design execution and monitoring of these programs. MINED's communication structures will be strengthened in order to facilitate the coordinating and monitoring roles of the Ministry. A long term communication plan for MINED will be developed as part of the project. In addition, there will be a training program for the staff of the Communications Unit. (g) Staff Development Program. The staff training program is an integral part of the process of introducing new instruments and work methods into the education sector. The administrative staff must be regularly brought up to date on innovations and administrative technologies developed in the sector. Technical and managerial training must be provided not only for those to whom responsibility is being transferred, but also to central officials who will have to learn how to support local implementors more effectively. The design and implementation of the staff development program will follow MINED's reorganization to improve, in a timely and coordinated way, the skills of administrators and technical/administrative and pedagogical personnel required by the institutional development process. The staff development program will be provided through 15 courses, 10 seminars, and 15 scholarships for short courses specializing in education policy analyses, information, planning, budgeting, education methodology and human resources management. 5. Modernization Implementation. With project implementation it is expected that the education units will have different functions and responsibilities as follows: (a) School level. The schools (education centers) will be responsible for: (i) operating the education activities; (ii) preparing their school education plans; (iii) administering their financial/material resources; (iv) selecting their teachers; (v) generating data and indicators regarding the results of their operation (e.g. data on promotion, repetition, desertion and coverage); and (vi) administering funds for small purchases. (b) District level. The basic function of the district is to coordinate between the department and the schools. The districts do not make autonomous administrative decisions. The supervision districts will be responsible for: (i) coordinating activities and processes between the schools and the department; (ii) consolidating and providing school needs in terms of teachers, textbooks, school material, school meal program, and technical assistance for supporting teachers solve teaching/learning problems; (iii) collecting information on public and private schools within their jurisdiction; and (iv) supporting teacher training activities in the Model Schools for Education Development (Escuelas Modelos de Desarrollo Educativo - EMDEs). (c) Departmental level. The departments, organized as small and responsive offices, will be responsible for: (i) preparing departmental plans by specifying education 124 1 ANNEX9 Institutional Modemnization Component program objectives and goals, budgetary allocations by school, and modalities of service delivery (public, EDUCO, private subsidized); (ii) coordinating the administration of the human, physical, and financial resources at that level; (iii) monitoring the quality of school facilities and equipment; (iv) managing department budgetary allocations and accounting; (v) consolidating and analyzing public and private school data; (vi) monitoring district supervision activities; and (vii) promoting community participation. (d) MINED, at the central level will be responsible for setting goals and general guidelines, establishing priorities and quality standards, and providing systematic evaluation of the public and private education systems. Its major activities will be: (i) defining policies, education goals and program objectives; (ii) defining targets, budgets and personnel posts for each department/district and school; (iii) establishing basic curriculum contents and quality standards for teacher training programs, textbooks, instructional materials and learning achievement; (iv) evaluating student learning achievement, departmental evaluation of management process, and outcomes, and impact evaluation of education programs; (v) defining physical investments; (vi) establishing recruitment standards for both teachers and administrative staff, and establishing career planning services and personnel incentive systems; (vii) controlling cash flows, accounting and budgeting at the national level; (viii) procurement activities when justified by economy of scale, distribution cost and timeliness of delivery; and (ix) monitoring departmental activities. 6. Implementation Strategy. The implementation of the new structure will be tested initially in a limited number of departments which will serve as prototypes of the new structure. The reorganization of functions and roles between levels, across all systems, and the strengthening of managerial capacity at all levels, will be implemented in their entirety in the prototype departments. Only after evaluating and standardizing the experiment will the new processes and procedures be extended to the remaining departments. This strategy will allow for the control and simultaneous testing of project components, particularly the modalities of delivery of the education services envisioned by the education reform. Subcomponent 3b: Pilot Basic Education Fund Program Background 7. As a consequence of the peace agreements and the economic opening of the country, economic, political, and social changes occurring in El Salvador open new possibilities for cooperation between the public and private sectors. As part of the principles of education reform, MINED needs to explore various methods of delivering education services, in order to improve the quality and efficiency of the public and private sectors. Innovative methods of combining the public and private sectors in the provision of education services can eventually be adopted on a broader scale within the modernization of the education sector. 125 , ANNEX 9 Institutional Modernization Component Objectives 8. The main objectives of this program are to: (a) test alternative methods of providing basic education through the municipios, NGOs or other non-profit private institutions; (b) establish a more substantial and incentive-driven financing mechanism for piloting school-oriented interventions to solve particular administrative and/or learning/teaching problems; (c) make provision for future public education initiatives in the areas of pedagogical innovations and institutional modernization which cannot be anticipated or launched immediately; and (d) disseminate the pilot results. Description 9. During project implementation, the subcomponent will finance at least four innovative subprojects that contribute to improving the quality, efficiency, and coverage of preschool and basic education in the country. The funds allocated to this subcomponent would be set aside to finance subprojects under the procedures, principles, and criteria of selection described in para 19. The subcomponent will provide: (a) financial resources for implementing and identifying the approved subprojects; (b) support to establish a monitoring system to follow-up the education interventions financed by the program; (c) support to fully evaluate all subprojects funded; (d) technical assistance for selecting the proposals; and (e) support for disseminating the results. 10. The Fund's resources (US$1,916,000) will be divided as follows: US$31,000 for assessment and US$1,885,000 to finance pilot subprojects. It is expected that the Fund will not be depleted before its third year. Therefore, approximately US$628,000 will be used annually: US$571,000 to operate the pilot subprojects and US$57,000 to evaluate the implementation and impact of the pilot subprojects. Implementation Strategies 11. Organization and Administration. The subprojects submitted for financing would be presented twice a year to a Review Committee which would analyze, rank and recommend approval of the subprojects according to established criteria (see para. 19). The Review Committee would be composed of the Minister, Vice Minister of Education, the Project Manager, directors of MINED, and, as required, experts in subjects related to the types of subproject proposals. 12. The Minister and Vice Minister of Education will supervise the Fund. They will be responsible for: (a) establishing the goals and policies of the Fund based on the Basic Education Modernization Project's principles and guidelines; and (b) defining the Fund's goals. 13. A Review Committee will be formed, which will evaluate each one of the proposed pilot subprojects. This Committee will be formed by five voting members: the Project Manager, who will preside over Committee, the Manager of OPCI, and the three Project Component Directors. The Committee will be in charge of receiving the proposals. 14. The Project Manager will be responsible for: (a) managing the Pilot Basic Education Fund; (b) implementing the policies defined by the MINED, including the allocation and 126 ANNEX9 Institutional Modernization Component disbursement of resources; and (c) preparing the procedures that will be forwarded to the presentation and evaluation of the proposals. 15. The Review Committee will nominate a Technical Group to rank the proposals applying the established criteria (see Table 1). The Committee is responsible for: (a) receiving the proposals; (b) selecting a technical group to rank the proposals; (c) reviewing proposal classifications; (d) approving proposal classifications; (e) preparing the list of recommended proposals to be approved by the Minister and Vice Minister; (f) establishing subproject monitoring and evaluation mechanisms; and (g) disseminating results generated by the subprojects. The 'ho objection" of the Banks is a pre-requisite for the final approval of the proposed subproject. Every time a proposal is rejected, the Review Committee must send a formal reply to the requester explaining the reasons for the proposal's rejection. 16. Once a proposal is approved, a technical agreement (convenio) between MINED and the requester will be signed whereby the former agrees to disburse the resources approved under the proposal, and the latter agrees to implement the proposed subproject. 17. Eligible Subprojects. Every year, the Review Committee will choose the subprojects that will receive financing, selecting the subprojects with the most merit according to the criteria set in the annual priority plan established by the National Council of Education Innovations. Potential replicability is a general criteria for subproject eligibility. 18. For subproject expansion, the proposal plan should include: (a) coverage (timetable, number of units to be established in each region, number of children that will benefit from subproject, and cost); (b) organization of the management control; (c) organization of the quality control; (d) financial plan and disbursement mechanisms; and (e) cost estimate of the expansion subproject. Evaluation of Proposals 19. Each proposal will be classified and evaluated according to how it fits into the annual priority plan of MINED. The classification system will be based on considerations such as coverage, quality, efficiency, focus, and cost. The factors for consideration will reflect the priorities of MINED policies and will be established annually. Points will be assigned to each one of the five areas (coverage, quality, efficiency, focus of objectives, and cost). The subproject with the largest number of total points will be selected. As a disbursement condition, the forms used to apply for the Fund, which will include a clear list of its conditions and pre-requisites, will be agreed with the Banks. _mod.doc --i.- *sALllD btU1X II V I 11| Itt nrs* |l oDX t 127 ANNEX9 Institutional Modernization Component Ministry of Education Organizational Chart SECRETARIA DE ESTADO ASESORIA CONSEJO NACIONAL JURIDICA DE CULTURA AUDITORIA L PLANIFICACION INTERNAI EDUCATIVA OFIC. DE PROYECTOS DE L COMUNICACIONES Coop. INTERNACIO DIRECCION NACIONAL DIRErCION NACIONAL DIRECCION NACIONAL DE ERUCACION DE SUPERVISION ADMON. GDRECCION DE DIRECCION DE DIRECCION GE CURRICULO EDUC. SUPERIOR FINANZAS GIRECCION DE G DIRECCION DE DIRECCION DE CAPACITACION I EDUC DE ADULTOS RECURSOS HUMANOS DIRECCION DE MAT. | DIIRECCION DE EDUC. DIRECCIN DE APROV EDUCATIVOS FISICA Y DEPORTES Y SUMINISTROS UNIDAD DE ASISTENCIA DIRECCION DE DIRECCION DE ALIMENTARIA JUVENTUD SERVICIOS GENERALES UNtOAD DE EDUCACION DIRECCION DE BIENESTAR| ESPECIAL L MAGISTERIAL DIREC. DE CONSTRUC. Y MANTENIMIENTO |RED DE BIBLIOTECAS EDUC CON PARTICIP. PUBLICAS , | DE LA COMUNIOAD |GERENCIA REGIONAL ASESORIA JURIDICA E PLANIFICACION EDUCATIVA GEPO. GEUASREGIONAL REGO P G AUDITORIA INETERANA REGIONA COMUNICACIDOL OFIC. REG. DE PFROYECTOS REGIONAL DE COOP ENTERNACIONAL |RED DE BIBLIOTECAS l DC. CON PARTICIPACIO| t PUBLICAS REGIONAL l L DE LA COMUNIDAD |DIRECCION REGIONAL j|DIRECCION REGIONAL ||DIRECCION REGIONAL| DE EDUCACION DE SUPERVISION } DE ADMINISTRACION DEPTO. DE EDUCACION | SUPERVISiON l DEDEPTOGERTOS I PARtVULARIA | DEPARTAMENTAL FINANZAS B EASICA DISUPERVISIONAL l HUtMANOSEI |DEPTO. DE EDUCACION C N DEPTO. DE APROVIS. E ME IA Y SUPERIOR | SUMINISTROS r |DEPTO. DE EDUCACION i||DEPTO. DE SERVICIOS DE ADULTOS | GENERALES | DEPATMNOD | DEPTO. D1E CONSTROUC. -C CAI AIO | YMNE:NIMIE~NTO r | [ D~~~~~~EPTO DE BIENESTAR t [ ~~~~~~~~MAGISTERIAL ,~~ ~ ~~~~~~~~~~~~~~~ I 128 ANNEX 10 Project Administration EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT PROJECT ADMINISTRATION 1. Project implementation would be carried out within the existing organizational structure of MINED through the Project Management Office which would be drawn from existing units whose operational and administrative responsibilities are directly linked to project components. Overall responsibility for implementation of the proposed project would be vested in the Minister of Education who would be supported in general policy setting and institutional coordination by a committee composed of the Vice Minister of Education and Project Component Directors.' To facilitate project implementation, a Project Manager would be appointed. The Project Manager would report directly to the Vice Minister of Education on the day to day operations of the project, and would be responsible for calling the directors to committee meetings. PROPOSED PROJECT ADMINISTRATION VICE MINISTER ProjePt Manager .................... ..... =.. .... .............................. .... ........ Project Management Office EDUCO Qn iality Management Unit Improvement Modernizatin _ ~~Unit Unit MINED directors involved in implementation of project activities. EL SALVADOR MODERNIZATION OF BASIC EDUCATION PROJECT Components Project Cost Summary % % Total (¢ 000) (US$ 000) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs A. Expansion of Access to Preschool and Basic Education Expansion in the Rural Areas 28,083.4 18,083.8 46,167.1 3,209.5 2,066.7 5,276.2 39 7 Strengthening the EDUCO Program 51,402.2 880.0 52,282.2 5,874.5 100.6 5,975.1 2 8 Subtotal Expansion of Access to Preschool and Basic Education 79,485.5 18,963.8 98,449.3 9,084.1 2,167.3 11,251.3 19 15 B. Improvement in Education Quality Curriculum Improvement 5,572.2 5,603.9 11,176.1 636.8 640.5 1,277.3 50 2 Textbooks 15,828.3 138,305.9 154,134.2 1,809.0 15,806.4 17,615.3 90 24 Instructional Materials 49,813.2 48,444.1 98,257.3 5,692.9 5,536.5 11,229.4 49 15 In-Service Teacher Training 74,807.3 8,972.5 83,779.8 8,549.4 1,025.4 9,574.8 11 13 Education Assessment System 13,349.7 12,421.6 25,771.3 1,525.7 1,419.6 2,945.3 48 4 School Health and Nutrition Program 7,951.6 4,870.8 12,822.4 908.8 556.7 1,465.4 38 2 Subtotal Improvement in Education Quality 167,322.3 218,618.8 385,941.2 19,122.6 24,985.0 44,107.6 57 61 C. Institutional Modernization Modernization of MINED 48,669.2 31,547.4 80,216.7 5,562.2 3,605.4 9,167.6 39 13 Communications Program 8,494.8 3,248.6 11,743.4 970.8 371.3 1,342.1 28 2 Basic Education Fund Program 16,400.0 264.0 16,664.0 1,874.3 30.2 1,904.5 2 3 Subtotal Institutional Modernization 73,564.0 35,060.1 108,624.1 8,407.3 4,006.9 12,414.2 32 17 D. IDB Loan Inspection and Supervision (FIV) - 3,210.4 3,210.4 - 366.9 366.9 100 1 E. Project Coordination and Management 20,988.6 18,009.3 38,997.9 2,598.7 1,858.2 4,456.9 46 6 341,360.4 293,862.4 635,222.8 39,212.6 33,384.3 72,596.9 46 100 Physical Contingencies 11,111.2 12,576.7 23,687.9 1,269.9 1,437.3 2,707.2 53 4 Price Contingencies 23,075.8 19,998.3 43,074.1 2,637.2 2,285.5 4,922.8 46 7 375,547.4 326,437.4 701,984.8 43,119.7 37,107.1 80,226.8 47 111 .0z (D rr m:\e1safbask;edgen\sumcom.xls EL SALVADOR MODERNIZATION OF BASIC EDUCATION PROJECT Expendture Accounts by Components - Totals incuxdkig Conthigencies (USS '000) Expasion of Access to Preschool and Baste Education hIprovement hI Education QuaSty knsttutlonal ModernItzatIon IDS Loan Expansion School Baskc hspectton Project lIthe Strengthentig Wervice Education HaIth and Education aN Coordhilon Rural the EDUCO Curuttctm InstructIonal Teacher Assessunn Nutrtltn ModernIzatIon Conunrtcilon Furad Supevon ad Areas Program tmprovemen Textbooks MaterIals TratnIng System Program ofMINED Program Program (FMV, Management Total L Inveutmwqt Costs A. CMVL WORKS 4.706.6- - -- 1.936.1- - - - - - 6.642.7 6. VEHICLES -4-7-. 28.7 27.4 763.8 29.9 363.9 i,233.7 C. EQUIPtMENT AND FURNITURE OFFICE FURNITURE 16.7 - - -- - - - 230 2 - --- 246.9 OFFICE EQUIPMENT 16.6 22.6 - 9.5 95.9 21 4 - - 229.5 395.3 COMPUTER EQUIPMENT 1.0 - - - - 6.7 4.3 721.6 - 56.1 769.7 SCHOOL FURNITURE-- - - - 944.8 - - - - - 944.6 SubtOOLEQUIPMENTANDFURNITURE 34.3 - 967.3 6.7 13.7 1,047.5 21.4 - 285.6 2.376.6 0. TEXTBOOKS,Dt11. MAT., & MCRONUTRIENTS TEXTBOOKS - - - 19,853.3 - - - - - 19,853.3 DIDACTIC MATERIALS - - 140.2 - 12,696.6 300.0 381.4 - 13,518.1 MICRONUTRIENTS - - -- . - 775.8 775.6 Subtota TEXTBOOKS3ID. MAT., &M1CRONUTRIENTS - '140.2 19,853.3 12,696.6 300.0 - 1,157.2 - - 34,147.2 E. TEACHER TRAINING TRAININGCOURSES 13.4 - 2260 - - 7,337.1 184.1 - 809.3 - - - - 8,569.8 STUDY TOURS - - 47.1 -- - -- -- - - 47.1 Subtota TEACHERTRAINtNG 13.4 273.1 - 7,337.1 184.1 809.3 ,616. F. STAFF TRAINING COURSESANDSEMINARS 12.7 - 11.0 - 2-58.9 8 6 8-92.6 STUDY TOURS - - - .- - -- 247.7 8.6 --- 256.3 SublotUSTAFFOTRANING 12.7 11.0 - - 1,106.6 8.6 - - - 1,139.0 G. TECHNICAL ASSiTANCE INTERNATIONAL T.A, 825.2 101.9 189.0 - - 43.5 101.3 31.4 533.2 30.6 371.7 8049 3,032.6 LOCALTA 14.6 6,310.1 - - 8.9 109.2 35.8 7.7 1,308.6 210.6 - - - 8,005.6 STUDIES - - 675.5 - - 35.3 2,660.6 - 98.0 - - 520.6 3,990.1 SubtotalTECHKtCALASSISTANCE 839.6 6,412.0 664.5 - 6.9 118.0 2,797.6 39.1 1,939.6 210.6 30.6 371.7 1,325.7 15.029.2 H. PRINTING OF MATERIALS - - 39.3 - - 65.8 - 556.0 - - - 661.2 I. PUBLIC CAMPAJGNS - - - - - - - - - 1,199.0 - 1,199.0 J. EDUCATION FUND - - - - 1,874.3 - - 1.874.3 Total tnvestnt Costs 5,606.9 6,412.0 1,328.1 19.853.3 12,705.5 10,757.1 3,054.3 1,237.3 6,223.1 1,469.5 1,904.8 371.7 1,995.2 72,918.7 L1 Rnacist Costs A. SALARIES 113.0 94.2 - -- - - - 1.213,7 - - - 1,243 5 2,664.5 6. OFFICE SUPPUES - - - - 62.8 - - 545.8 - - 608.6 C. OPERATIONANDAMAINTENANCE 3.6 . 29.9 2.2 34.7 884.8 - - - 315.0 1,270.2 0. OTHER OPERATINGCOSTS 261.2 - 28.2 - 251.9 1.010.7 1,212.8 2,764.8 Total Recrert Costs 377.9 94.2 28.2 - 92.6 2.2 286.7 3,655.0 - - - 2,771.2 7,30f.1 Total PROJECT COStS 5,984.9 6,506.3 1,356.3 19,853.3 12,705.5 10,49.8 3,056.4 1,524.0 9.878.1 1,469.5 1.904.8 371.7 4,766.5 80,226.8 Taxs 6461 - 52. ` 1,269.7 1,370.5 32.7 106.6 575.7 156.6 - - 12.6 4,395.5 Foreign Exchange 2,309.0 101.9 677.7 17,814.5 6,264.8 1,150.5 1,472.3 578.7 3.912,5 409.9 30.6 371.7 2,013.2 37,107.1 ti 0 L-. CI Z rF I>- V,t mefterbsicegnlexent.tjs EL SALVADOR MODERNIZATION OF BASIC EDUCATION PROJECT Expenditure Accounts by Years - Totals Including Contingencies (US$ '000) Totals Including Contingencies 1996 1997 1998 1999 2000 Total I. Investrent Costs A. CIVIL WORKS 1,785.5 2,182.3 1,815.3 859.7 - 6,642.7 B. VEHICLES 173.2 407.8 652.6 - - 1,233.7 C. EQUIPMENT AND FURNITURE OFFICE FURNITURE 8.1 89.1 97.5 52.2 - 246.9 OFFICE EQUIPMENT 39.2 318.6 37.5 - - 395.3 COMPUTER EQUIPMENT 432.4 210.9 146.4 - - 789.7 SCHOOL FURNITURE - 527.4 417.4 - - 944.8 Subtotal EQUIPMENT AND FURNITURE 479.8 1,145.9 698.7 52.2 - 2,376.6 D. TEXTBOOKS,DID. MAT., & MICRONUTRIENTS TEXTBOOKS 558.6 1,533.0 10,610.8 6,428.4 722.4 19,853.3 DIDACTIC MATERIALS 453.0 3,496.5 3,005.8 3,834.1 2,728.7 13,518.1 MICRONUTRIENTS - 775.8 - - - 775.8 Subtotal TEXTBOOKS,DID. MAT., & MICRONUTRIENTS 1,011.6 5,805.3 13,616.6 10,262.6 3,451.2 34,147.2 E. TEACHER TRAINING TRAINING COURSES 895.8 1,408.8 2,023.5 2,254.3 1,987.5 8,569.8 STUDYTOURS 13.0 16.2 17.8 - - 47.1 Subtotal TEACHER TRAINING 908.7 1,425.0 2,041.3 2,254.3 1,987.5 8,616.9 F. STAFF TRAINING COURSES AND SEMINARS 208.3 189.6 164.7 143.4 176.7 882.6 STUDY TOURS 29.1 59.5 69.9 48.3 49.5 256.3 Subtotal STAFF TRAINING 237.3 249.1 234.6 191.7 226.3 1,139.0 G. TECHNICAL ASSISTANCE INTERNATIONAL T.A. 1,332.3 501.7 407.5 407.1 383.8 3,032.6 LOCAL T.A. 773.5 972.6 1,487.4 2,059.4 2,712.8 8,005.6 STUDIES 2,023.9 1,041.7 210.5 687.6 26.3 3,990.1 Subtotal TECHNICAL ASSISTANCE 4,129.7 2,516.0 2,105.4 3,154.1 3,122.9 15,028.2 H. PRINTING OF MATERIALS 43.7 288.3 141.4 76.0 111.8 661.2 I. PUBLIC CAMPAIGNS 386.7 279.8 203.5 133.9 195.0 1,199.0 J. EDUCATION FUND 251.4 251.4 457.1 457.1 457.1 1,874.3 Total Investment Costs 9,407.7 14,550.9 21,966.7 17,441.6 9,551.8 72,918.7 II. Recurrent Costs A. SALARIES 505.9 519.0 532.5 546.4 560.6 2,664.5 o B. OFFICE SUPPLIES 57.8 178.1 121.0 124.2 127.4 608.6 rD C. OPERATION AND MAINTENANCE 72.1 185.0 341.3 350.1 321.7 1,270.2 n D. OTHER OPERATING COSTS 508.1 596.7 580.8 534.2 544.9 2,764.8 r-t Total Recurrent Costs 1,143.9 1,478.9 1,575.7 1,555.0 1,554.7 7,308.1 Total PROJECT COSTS 10,551.6 16,029.8 23,542.4 18,996.6 11,106.5 80,226.8 co X m:\elsal\basiced\gen\EAYRT.XLS EL SALVADOR MODERNIZATION OF BASIC EDUCATION PROJECT Project Components by Year - Investment/Recurrent Costs (US$0'00) Totals Including Contingencies 1996 1997 1998 1999 2000 Total A. Expansion of Access to Preschool and Basic Education Expansion in the Rural Areas Investment Costs 1,313.0 1,607.3 1,602.6 907.9 176.1 5,606.9 Recurrent Costs 71.1 73.8 75.7 77.7 79.7 377.9 Subtotal Expansion in the Rural Areas 1,384.0 1,681.1 1,678.3 985.6 255.8 5,984.8 Strengthening the EDUCO Program Investment Costs 450.7 529.8 1,079.5 1,851.4 2,500.7 6,412.0 Recurrent Costs 17.9 18.4 18.8 19.3 19.8 94.2 Subtotal Strengthening the EDUCO Program 468.6 548.1 1,098.4 1,870.7 2,520.5 6,506.2 Subtotal Expansion of Access to Preschool and Basic Education 1,852.6 2,229.2 2,776.6 2,856.3 2,776.3 12,491.0 B. Improvement in Education Quality Curriculum Improvement Investment Costs 385.6 466.6 289.7 167.7 18.5 1,328.1 Recurrent Costs 12.7 4.6 4.4 3.8 2.7 28.2 Subtotal Curriculum Improvement 398.3 471.2 294.1 171.5 21.2 1,356.3 Textbooks Investment Costs 558.6 1,533.0 10,610.8 6,428.4 722.4 19,853.3 Instructional Materials Investment Costs 241.8 3,190.8 2,882.6 3,701.1 2,689.3 12,705.5 In-Service Teacher Training Investment Costs 734.6 2,706.7 2,919.0 2,437.4 1,959.5 10,757.1 Recurrent Costs - 68.0 8.0 8.2 8.4 92.6 Subtotal In-Service Teacher Training 734.6 2,774.7 2,927.0 2,445.6 1,967.9 10,849.8 Education Assessment System Investment Costs 1,876.5 545.2 32.1 566.8 33.8 3,054.3 Recurrent Costs - 0.5 0.5 0.5 0.6 2.2 Subtotal Education Assessment System 1,876.5 545.7 32.6 567.3 34.3 3,056.4 School Health and Nutrition Program Investment Costs 242.6 982.3 12.5 - - 1,237.3 Recurrent Costs 29.7 115.0 86.9 28.2 26.9 286.7 Subtotal School Health and Nutrition Program 272.3 1,097.2 99.4 28.2 26.9 1,524.0 Subtotal Improvement in Education Quality 4,082.0 9,612.5 16,846.5 13,342.1 5,462.1 49,345.3 C. Institutional Modernization Modernization of MINED Investment Costs 2,016.8 1,675.0 1,314.9 600.4 616.0 6,223.1 Recurrent Costs 546.1 704.8 793.1 813.7 797.3 3,655.0 Subtotal Modemization of MINED 2,563,0 2,379.8 2,108.0 1,414.0 1,413.3 9,878.1 Communications Program Investment Costs 524.1 356.9 221.1 158.4 209.0 1,469.5 Basic Education Fund Program 0 Investment Costs 282.0 251.4 457.1 457.1 457.1 1,904.8 Subtotal Institubonal Modernization 3,369.1 2,988.1 2,786.2 2,029.6 2,079.5 13,252.4 D. IDB Loan Inspection and Supervision (FIV) Investment Costs 371.7 - - - - 371.7 Subtotal IDB Loan Inspection and Supervision (FN) 371.7 - - - 371.7 w xC E. Project Coordination and Management Investment Costs 409.9 706.1 544.8 165.1 169.3 1,995.2 Recurrent Costs 466.4 493.9 588.3 603.5 619.2 2,771.3 Subtotal Project Coordinaton and Management 8762 1,200.0 1133.0 768.6 788.65 Total PROJECT COSTS 10,551.6 16,029.8 23,542.4 18,996.6 11,106.5 80,226.8 Total Investment Costs 9,407.7 14,550.9 21,966.7 17,441.6 9,551.8 72,918.7 m:\esal\basied)enCOMYIFrTl ecun Costs 1,143.9 1,478.9 1,575.7 1,555.0 1,554.7 7.308,1 EL SALVADOR MODERNIZATION OF BASIC EDUCATION PROJECT Project Components by Year - Base Costs (US$ '000) Base Cost 1996 1997 1998 1999 2000 Total A. Expansion of Access to Preschool and Basic Education Expansion in the Rural Areas 1,264.3 1,493.4 1,451.3 839.5 227.7 5,276.2 Strengthening the EDUCO Program 462.5 527.4 1,030.0 1,709.8 2,245.4 5,975.1 Subtotal Expansion of Access to Preschool and Basic Education 1,726.8 2,020.7 2,481.3 2,549.3 2,473.1 11,251.3 B. Improvement In Education Quality Curriculum Improvement 385.9 445.1 272.9 155.2 18.3 1,277.3 Textbooks 525.2 1,404.7 9,476.7 5,595.8 612.9 17,615.3 Instructional Materials 227.7 2,923.8 2,574.5 3,221.7 2,281.7 11,229.4 In-Service Teacher Training 664.8 2,511.2 2,602.8 2,125.4 1,670.6 9,574.8 Education Assessment System 1,843.7 524.7 29.1 518.6 29.1 2,945.3 School Health and Nutrition Program 266.8 1,055.7 93.2 25.7 24.0 1,465.4 Subtotal Improvement in Education Quality 3,914.1 8,865.2 15,049.2 11,642.5 4,636.6 44,107.6 C. Institutional Modernization Modemization of MINED 2,469.4 2,239.6 1,936.4 1,276.7 1,245.5 9,167.6 Communications Program 498.9 328.3 198.1 139.0 177.9 1,342.1 Basic Education Fund Program 281.6 251.4 457.1 457.1 457.1 1,904.5 Subtotal Institutional Modernization 3,249.9 2,819.3 2,591.6 1,872.8 1,880.6 12,414.2 D. IDB Loan Inspection and Supervision (FIV) 366.9 - - - - 366.9 E. Project Coordination and Management 865.0 1,141.5 1,045.4 702.5 702.5 4,456.9 Total BASELINE COSTS 10,122.7 14,846.7 21,167.5 16,767.1 9,692.8 72,596.9 Physical Contingencies 296.7 585.9 938.3 635.1 251.2 2,707.2 Price Contingencies 132.2 597.2 1,436.6 1,594.3 1,162.5 4,922.8 Total PROJECT COSTS 10,551.6 16,029.8 23,542.4 18,996.6 11,106.5 80,226.8 Taxes 546.8 1,171.3 1,042.0 941.8 693.5 4,395.5 Foreign Exchange 4,625.8 6,805.9 13,692.2 9,213.8 2,769.5 37,107.1 o n sR rtZ rt rn:Nesallbaskced\genkCOMYRB.XLS EL SALVADOR MODERNIZATION OF BASIC EDUCATION PROJECT Project Components by Year - Totals Including Contingencies (US$ '000) Totals Including Contingencies 1996 1997 1998 1999 2000 Total A. Expansion of Access to Preschool and Basic Education Expansion in the Rural Areas 1,384.0 1,681.1 1,678.3 985.6 255.8 5,984.8 Strengthening the EDUCO Program 468.6 548.1 1,098.4 1,870.7 2,520.5 6,506.2 Subtotal Expansion of Access to Preschool and Basic Education 1,852.6 2,229.2 2,776.6 2,856.3 2,776.3 12,491.0 B. Improvement in Education Quality Curriculum Improvement 398.3 471.2 294.1 171.5 21.2 1,356.3 Textbooks 558.6 1,533.0 10,610.8 6,428.4 722.4 19,853.3 Instructional Materials 241.8 3,190.8 2,882.6 3,701.1 2,689.3 12,705.5 In-Service Teacher Training 734.6 2,774.7 2,927.0 2,445.6 1,967.9 10,849.8 Education Assessment System 1,876.5 545.7 32.6 567.3 34.3 3,056.4 School Health and Nutrition Program 272.3 1,097.2 99.4 28.2 26.9 1,524.0 Subtotal Improvemnent in Education Quality 4,082.0 9,612.5 16,846.5 13,342.1 5,462.1 49,345.3 C. Institutional Modernization Modemization of MINED 2,563.0 2,379.8 2,108.0 1,414.0 1,413.3 9,878.1 Communications Program 524.1 356.9 221.1 158.4 209.0 1,469.5 Basic Education Fund Program 282.0 251.4 457.1 457.1 457.1 1,904.8 Subtotal Institutional Modernization 3,369.1 2,988.1 2,786.2 2,029.6 2,079.5 13,252.4 w D. IDB Loan Inspection and Supervision (FIV) 371.7 - - - - 371.7 E. Project Coordination and Management 876.2 1,200.0 1,133.0 768.6 788.6 4,766.5 Total PROJECT COSTS 10,551.6 16,029.8 23,542.4 18,996.6 11,106.5 80,226.8 ti 0 nx rtz ox 0 M _- rt m:\e1saFftsked1gen\COWRT.XLS 135 ANNEX 12 Tentative Procurement Plans EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT TENTATIVE PROCUREMENT PLANS Main Procurement for Project Subcomponent Financing Method |Pequalify Date of PN Textbooks I pkg, $600,000 Textbooks & IDB (90%) ICB YES 9/95 3 pkgs, $1,200,000 Instructional Materials ICB NO 9/96 1 pkg, $200,000 NCB NO 9/97 6 pkgs, $10,000,000 ICB NO 9/97 3 pkgs, $5,400,000 ICB NO 9/98 1 pkg, $600,000 ICB NO 9/99 up to 10 pkgs, $2,000,000 PLB NO Instructional Materials: includes materials for teachers and students, libra, books and science labs 3 pkgs, $3,100,000 Textbooks & IBRD ICB NO 9/96 3 pkgs, $2,600,000 Instructional Materials (90%) ICB NO 9/97 1 pkg, $200,000 NCB NO 9/97 4 pkgs, $3,600,000 ICB NO 9/98 2 pkgs, $2,600,000 ICB NO 9/99 up to $1,400,000 to be shopping transferred to ACEs Vehicles: Four-wheel drive vehicles and motorcycles for supervisors I pkg, $170,000 School Health & IBRD LIB NO 1/96 2 pkgs, $400,000 Nutrition Program (90%) LIB NO 1/97 1 pkg, $600,000 Modernization of LIB NO 1/98 MINED Supervision System 1 pkg, $63,000 In-Services Teacher IDB (90%/o) shopping NO Training Communications Program Furniture for training centers and EDUCO management 2 pkgs, $500,000 In-Service Teacher IDB (90%/6) ICB NO 3/97 1 pkg, $300,000 Training ICB NO 11/97 up to 10 pkgs, $400,000 Expansion of Access PLB NO Office furniture for departmental o fices and supervisor offices 1 pkg, $90,000 Modernization of IBRD NCB 1 NO 10/95 1 pkg, $95,000 MINED (90%) NCB NO 8/96 1 pkg, $50,000 NCB NO 8/97 Office equipmentfor central and departmental offices up to $270,000 Modernization of IBRD shopping NO MINED (90%/.) Project Management Computer equipment for central and departmental offices I pkg, $330,000 Modernization of IBRD ICB NO 11/95 1 pkg, $200,000 MINED (90%/O) NCB NO 11/96 up to $150,000 Project Management | shopping NO l Micronutrients I pkg, $186,000 School Health and IBRD LIB NO 2 pkgs, $950,000 Nutrition Program j (90%) LIB NO Civil works: rehabilitation and repair of classrooms, regional teacher training centers, local pedagogical resources centers, and some administrative buildings Executed under FIS | Expansion of Access |DB (90%) PLB NO procedures, $6,600,000 In-service Teacher I Training Modernization of _ MINED l__ l l l 136 ANNEX 12 Tentative Procurement Plans Maint ProurementforProject J Subcompnent Financin Method Pr D Pat-PN... Teacher Training: contracting services to develop materials and train teachers Up to 3 contracts, $870,000 In-service Teacher IDBI IC YES 9/95 Up to 4 contracts, $1,360,000 Training (100%) IC YES 9/96 Up to 6 contracts, $1,900,000 IC YES 9/97 Up to 7 contracts, $2,200,000 IC YES 9/98 Up to 6 contracts, $1,900,000 IC YES 9/99 Staff Training: contracting services to develop materials and train managerial, technical, and administrative staff Up to 2 contracts, $200,000 Staff Development IBRD LC YES 3/96 Up to 2 contracts, $180,000 Program (100%) LC YES 4/97 Up to 2 contracts, $160,000 LC YES 5/98 Up to 2 contracts, $140,000 LC YES 6/99 Up to 2 contracts, $170,000 LC YES 6/00 Technical Assistance Contracting services to provide Expansion in Rural IDB IC, LC YES 96-2000 expertise to MINED in many Areas (100%) areas (firms and individual consultants, $779,000) Contracting local NGOs Strengthening of the IBRD LC YES 96-2000 ($5,650,000) EDUCO Program (100%) Contracting firms and individual Curriculum IBRD IC, LC YES 96-2000 consultants ($182,000) Development (100%) Contracting firms and individual In-service Teacher IDB IC, LC YES 96-2000 consultants ($175,000) Training (100%) Contracting local institutions to Education Assessment IBRD LC YES 96-2000 carry out student assessments System (100%) ($2,548,000) Individual consultants IC, LC YES 96-2000 ($134,000) _ Contracting firms and individual Modernization of IBRD IC, LC YES 96-2000 consultants ($1,500,000) MINED (100%) Contracting firms and individual Supervision System IBRD IC, LC YES 96-2000 consultants ($309,000) (100%) Contracting local firms to develop Communication IDB LC YES 96-2000 public campaigns ($200,000) Program (100%) Contracting firms and individual Project Management IDB IC, LC YES 96-97 consultants to assess secondary (100%) education Contracting firms and individual Project Management IBRD IC, LC YES 96-2000 consultants ($4,350,000) (100%) NOTES: US$ equivalent. PN Procurement Notice ICB International Competitive Bidding LIB Limited International Bidding NCB National Competitive Bidding PLB Private Local Bidding (at least five invitations) IC International Consultants LC Local Consultants Shopping Purchasing of goods using at least three quotationsl :Ap2\annpln2.doc 137 ANNEX 13 Disbursements EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT DISBURSEMENTS Allocation of IBRD Loan Proceeds Allocation of Loan Amount Disbursement Category (US$ million) Percentage to be Financed 1. Equipment, Furniture, and Vehicles 1.6 100% of foreign expenditures,and 87% of local expenditures 2. Educational Materials 11.7 100% of foreign and 87% of local expenditures 3. Technical Assistance, Training and 14.0 100% of expenditures, excluding taxes Studies 4. Micronutrients 0.7 90% of expenditures 5. Salaries and Operating Costs 2.6 90% of expenditures until an aggregate amount of US$1.6 million is reached; 60% until an aggregate amount of US$2.5 million is reached; thereafter 30% 6. Unallocated 3.4 Total 34.0 Allocation of 1IDB Loan Proceeds Allocation of Loan Amount Disbursement Category (US$ mnillion) Percentage to be Financed 1. Civil Works 5.2 90% of foreign and local expenditures, excluding taxes 2. Equipment, Furniture, and Vehicles 1.0 100% of foreign expenditures, 90% of local expenditures, excluding taxes 3. Didactic Materials 16.3 100% of foreign and local expenditures excluding taxes 4. Technical Assistance, Training and 8.9 100% of expenditures, excluding taxes Studies 5. Basic Education Fund 1.5 90% of expenditures, excluding taxes 6. Salaries and Operating Costs 0.7 90% of expenditures until an aggregate amount of US$0.4 million is reached; 60% until an aggregate amount of US$0.6 million is reached; thereafter 30% 7. Unallocated 3.7 Total 37.3 138 ANNEX 13 Disbursements IBRD Estimated Schedule of Disbursements (US$ million) .. ..... ........ Disbursed Cumuative Ba.k Fisca .. : Dur in Disbursemient Disbursement B of Ye r :Semester Endig AiSemester Aount as % of Ttal Loan 96 June 30, 1996 1.8(a) 1.8 5 32.2 97 Dec. 31, 1996 1.3 3.1 18 30.9 June 30, 1997 3.0 6.1 27.9 98 Dec. 31, 1997 4.1 10.2 42 23.8 June 30, 1998 4.0 14.2 19.8 99 Dec. 31, 1998 3.0 17.2 59 16.8 June 30, 1999 3.0 20.2 13.8 00 Dec. 31, 1999 3.5 23.7 80 10.3 June 30, 2000 3.5 27.2 6.8 01 Dec. 31, 2000 3.4 30.6 100 3.4 IJune 30, 2001 3.4 34.0 0.0 Includes Special Account first deposit of US$1.5 million that may also cover retroactive financing up to US$300,000 for eligible expenditures. IDB Estimated Schedule of Disbursements (US$ million) . . . . . . . . . . . . . . . . . , . . . . . . . . . . . Ba.. .....i . .... ...l . Duriin Disbureet Disbrseen Dalc o~f. Year0-0- Semes000:;0-t;rtr Ending 0;0000 Semster Amun as % of To;0t fi00000000; im0 tal ;200Loan;0 0000 96 June 30, 1996 0.0 0.0 0 37.3 97 Dec. 31, 1996 1.8 1.8 10 35.5 _______June 30, 1997 1.8 3.6 33.7 98 Dec. 31, 1997 3.2 6.8 27 30.5 June 30, 1998 3.2 10.0 ______27.3 99 Dec. 31, 1998 7.0 17.0 64 20.3 June 30, 1999 7.0 24.0 ______ 13.3 00 Dec. 31, 1999 4.5 28.5 88 8.8 June 30,2000 4.5 33.0 ______4.3 01 Dec. 31, 2000 2.5 35.5 100 1.8 _______June 30, 2001 1.8 37.3 _______0.0 sml_dsb2.doc 139 ANNEX 14 Project Performance Indicators EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT PROJECT PERFORMANCE INDICATORS A. Development Objectives .. . .,: ... : . , . - - -' '. ' - ....................' ' ' ivewwdd''-t' _______________. .. - -.-.. - .. . .--Annual t Mi.-T;.$ impact Ind'tor Methodology Level of Observation - Revmw --.:-ew Objective: Expand Access at the Basic Level Increase in gross Education Statistics System Yes Yes enrollment rate for basic System education Increase in the percentage Education Statistics System No Yes of those students who System finish 6th grade Average classroom size of Education Statistics System Yes Yes 32 students System Increase attendance Observation, interviews, Sample of municipios with No Yes study nutrition interventions Objective: Improve the Qu lity and Effectiveness of Basic Education X _ Increase in academic Analysis of Achievement System No Yes achievement in core skills test results in Spanish and Mathematics Reduction in the dropout Education Statistics System No Yes rate System Reduction in the repetition Education Statistics System Yes Yes rate Systemn Improve quality and Evaluation of pilot At least four subprojects No Yes efficiency in the provision subprojects of services Objective: SupportMore Dynamic and Participatory School Management Improvement in the ability Focus groups, document School No Yes of parents' associations to review support and manage the provision of education services at the local level 140 ANNEX 14 Project Performance Indicators B. Quantitative Indicators C6ornnent/Subcompdnent: i Unit TOre Year1 YerYar Yar Y 5 Operational Manual December 1995 Legal opinion asserting that pilot March programs could be implemented under 1996 the current legal framework and/or adequate provisions taken Expansion OfAccess To Preschool And Basic Education Expansion of preschool classrooms section 1,000 250 250 250 250 0 Expansion of lst/2nd cycle section 2,000 500 500 500 500 0 Transforming EDUCO sections section 3,070 600 935 935 600 ACEs strengthened by private orgs. ACE 2,500 300 200 500 800 700 School infrastructure classroom 3,070 600 935 935 600 Evaluation of private institutions study 1 1 _ Design of simplified transfer system system 2 1 1 Training of ACE members parents 580 7,000 8,200 9,400 10,600 Improvement In Education Quality Instructional booklets for preschool number 807,000 142,000 151,000 161,000 171,000 182,000 Textbooks for 1st cycle (grds. 1-3) number 0 1, 892,000 636,000 0 Workbooks for 1st grade students number 1,391,000 272,000 273,000 277,000 282,000 287,000 Textbooks for 2nd cycle (grds. 4-6) number 1,082,000 0 796,000 286,000 0 0 Textbooks for 3rd cycle (grds. 7-9) number 521,000 0 0 325,000 196,000 0 Classroom libraries number 3,349 0 500 1,000 1,000 849 Science labs for 3rd cycle number 202 0 202 0 0 0 Rehab of EMDE Infrastructure number 238 100 100 38 Teacher training needs analysis study 1 Design of Teacher Training Plan study 1 1 1 Study of Textbook Cost-Recovery study 1 | 1 Secondary Education Studies study 4 2 2 Training of multigrade teachers number 200 1,000 1,000 1,000 0 Training of preschool teachers number 3,600 900 900 900 900 Training of lst/2nd cycle teachers number 30,000 7,500 7,500 7,500 7,500 Training of 3rd cycle teachers number 5,800 1,450 1,450 1,450 1,450 Contracting institution for student contract I 1 testing Achievement tests for 3rd/6th grds tests 4 2 2 Achievement test for 9th grade tests 2 1 1 Readiness test for Ist grade tests 2 1 1 Readiness test for 3rd grade tests 2 1 1 Selection of local university/research January 30, center to develop the education 1996 assessment system 141 ANNEX 14 Project Performance Indicators ..~~ ~ ....... ...........Y .2|.Y .3 - | e - ISiibtr.~~n nent I Ytar I 1YearZ I"Year.3 1Ytar4 e Insttutional Modernization And Strengthening Information system Design the District and District and District and District and systems of departmental departmental departmental departmental humnan reports of the 4 reports of the 4 reports of the 4 reports of the 4 resources, systems (human systems (human systems (human systems (human statistics, resources, resources, resources, resources, budget, statistics, statistics, statistics, statistics, infrastructure budget, budget, budget, budget, and supply. Its infrastructure infrastructure infrastructure infrastructure collection and supply) in and supply) in 7 and supply) in and supply) in instruments the 3 depts. depts. 10 10 depts. 14 the 14 depts. applied. Design and departmental departmental Process of application of networks networks support for the the 4 systems. 7 functioning. functioning. PIL, (canasta) departmental and texts networks analyzed. The 3 functioning. networks of the prototype depts functioning. Planning System Guide for the Guide for the Guide for the Guide for the PIL designed PIL designed PIL designed PIL designed and applied in and applied in and applied in and applied in 100% of the 100% of the 100% of the 100% of the urban schools & urban schools & urban schools & urban schools & 50% of rural 50% of rural 50% of rural 50% of rural schools in the 3 schools in the 7 schools in the schools in the prototype depts. Second 10 depts. 14 departments. departnents. version of the Departmental National plan guides. plan with with ceilings by Departmental ceilings by department. guide applied in school. 3 depts. Management Indicators Indicators Indicators Indicators Evaluation of Evaluation System designed and designed and designed and designed and the management applied to all applied in all the applied in all the applied in all the in the 14 depts. the districts in districts of the 7 districts in the districts in the the prototype prototype depts. 10 prototype 14 depts. departments. Evaluation of depts. Evaluation of management in Evaluation of the management the prototype the management in the 10 depts. depts. Second in the 7 depts. version of the indicators. 142 ANNEX 14 Project Performance Indicators * ISubco=:onent Year 1 .Year .2 .Year3 Y : ar4 Y Orgarizational Manuals of the Departmental Administrator/ Administrator! Development functions and structure teacher ratio teacher ratio requirements of applied with 30% less than at 30% lower than the departmental selected the beginning of at the beginning structure. Tests personnel the program (in of the program of the according to the 10 depts). In (in 14 depts). evaluation of requirements. the non-teaching In the non- the Administrator! personnel, the teaching achievements teacher ratio technical personnel, the applied & 30% less than at personnel ratio technical analyzed. the beginning of 50% higher than personnel ratio the program (in at the beginning 50% higher than 7 depts) of the program at the beginning Departmental (in 10depts). of the program structure (in 14 depts). evaluation_of_rdefined. th_o_ec__ntenn Administration CVs CVs CVs CVs Administrative System systematized . systematized . systematized. systematized . officials More than 50% More than 50% More than 50% More than 50% provided for in of the Centros of the Centros of the Centros of the Centros 14 depts. Escolares Escolares Escolares Escolares contracting & contracting & contracting & contracting & paying paying paying paying automatically automatically automatically automatically for services (n for services (n for servtces (in for services (in the prototype the 7 depts). the 10 depts). the 14 depts). depts). Have the Administrative Administrative registries of officials officials preselected provided for in provided for in teachers & the 7 depts. 10 depts. information of vacancies in the entire country. Supervision System Supervisor Training for Training for Training for guides supervisors in 7 supervisors in supervisors in developed and depts. CECs 10 depts. CECs 14 depts. CECs supervisors provided for and provided for and provided for and trained in the 3 supervisor supervisor supervisor prototype depts. offices equipped offices equipped offices equipped CECs provided in the 7 depts. in the 10 depts. in the 14 depts. for and supervisor offices equipped in the 3 prototype depts. Public Expenditures In The Education Sector Education 2.52% of GDP 2.64% of GDP 2.76% of GDP 2.88% of GDP 3.00% of GDP Expenditures I I I I I 143 ANNEX 14 Project Performance Indicators ~~~~~~~~~~~~~~~~~. . . . . . . . . .. ..5 ~~~~~~~~~~~. . . . . ... .,.,,. , .,,,,,,,,.,............... .. . . .. . .... . . Growth in Budget GDP Growth GDP Growth GDP Growti GDP Growth GDP Growth Allocations plus 1% plus 1% plus 1% plus 1% Allocation of 68% of ordinary 71% of ordinary 74% of ordinary 77% of ordinary 80% of ordinary Ordinary Budget to budget budget budget budget budget Preschool and Basic Education Timely Provision of Timely Timely Timely Timely Timely Counterpart Funds provision of provision of provision of provision of provision of counterpart counterpart counterpart counterpart counterpart funds according funds according funds according funds according funds according I to action plan to action plan. to action plan to action plan to action plan I:B=p2\smmpa£doc 144 ANNEX 15 Tenns of Reference for Project Review and Supervision Schedule EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT TERMS OF REFERENCE FOR PROJECT REVIEW AND SUPERVISION SCHEDULE 1. Given that the project is cofinanced by the IBRD and IDB, and the comprehensive scope of the actions that MINED has to perform to carry out education reform, the proposed project will require close supervision, especially in the early years. An average of 20 staff weeks (SW) per Bank of supervision are consequently budgeted for the first two years and an average of 19 SWs a year subsequently. The first year figures includes 10 SW per Bank for the project launch mission. Fourteen staff weeks per Bank will be budgeted in 1998 to support the Mid-term Review. 2. The composition and staffing level of the supervision program for each year of project are presented in Table 1. The supervision teams will be carefully planned, and will consist of the Task Managers, IBRD and IDB staff, and consultants with expertise in the areas of education (evaluation, teacher training, textbooks and curriculum), community organization, informnation, communication, management and institutional development, procurement and project implementation. Supervision missions will normally be conducted twice a year, in March and September of each year, beginning in September of 1996. All missions will involve discussions with project officials in MINED headquarters, as well as field visits, on the basis of which the m-nission will evaluate the project. 3. Project Launch Seminar. A Project Launch Seminar will be conduct around January 1996, to: (a) review and approve the Annual Work Program for 1996, and to review counterpart funding provision included in MINED's 1996 budget; (b) review implementation of the project's rules and procedures manual, and familiarize MIPLAN, and MINED central and departmental offices with the project's planning and performance monitoring procedures and the Banks guidelines and procedures on procurement, disbursement and auditing requirements; (c) review the project's requirement for progress reports on the implementation of the Annual Work Programs; and (d) the logical framework of the project. The seminar will be followed up by a series of departmental seminars organized by MINED to provide relevant information and discuss project implementation procedures with the other international and national agencies involved in implementing education projects and with the department and local officials of MINED. 4. Annual Review. The purpose of the annual review is to assess project performance against specific objectives and targets, primarily through the analysis of two documents: (a) the Project Implementation Report for the year under review; and (b) the Project Action Plan for the next calendar year. Annual Reviews will take place in September of each year. 5. In preparation for the Annual Project Review, the Project Manager, in coordination with responsible units, will prepare and present to the Banks, no later than August 31st of each year, the following documents: (a) Project Implementation Report for the year under review, covering: (i) compliance with the Project Operations Manual; (ii) compliance with the covenants of the Banks Loan Agreements; 145 ANNEX 15 Terms of Reference for Project Review and Supervision Schedule (iii) information pertaining to all Project Monitoring and Impact Evaluation Indicators; (iv) status of procurement of goods and services; (v) progress report of Basic Education Fund subprojects approved; and (vi) highlights of findings, lessons learned and problems pertaining to the technical, institutional, administrative or financial implementation of the project; (b) Project Action Plan for the next calendar year, covering: (i) program of activities for each subcomponent of the Project; (ii) schedule of activities for each subcomponent of the Project; (iii) detailed teacher training plan; (iv) detailed plan for increasing/expanding EDUCO classes and assignment of teachers to expand the preschool and basic education in the rural areas; (v) detailed multigrade plan; (vi) detailed institutional modernization activities, including plan for decentralization of activities to schools and departments, staff development activities; (vii) detailed procurement plan; (viii) detailed budget by source of funds and uses, for each quarter, specifying counterpart funds requirements; (ix) detailed communication plan; (x) relative weights that define eligibility of Basic Education Fund subprojects; and (xi) specific reports when needed. 6. Project Mid-term Review. This review will be carried out no later than two and a half years after the initiation of project implementation (September 1998) and will take the place of the Annual Review in that year. It will have the participation of both IBRD and IDB. The focus of the review is to ascertain to what extent the project has achieved its development objectives. During such review, special attention will be paid to the education sector policies related to the project, the effectiveness of the institutional modernization measures taken, the Basic Education Fund, the evaluation of the nutrition and health subcomponent, and the allocation of fiscal funds to the education sector. The Project Manager will prepare the same reports for the Project Mid- term Review as for the Annual Project Reviews. However, if special issues warrant more detailed analysis, additional studies will be carried out under the coordination of the Project Manager. 7. Modifications to Project Design and Implementation Plans. During Annual Project Reviews and the Project Mid-term Review, there is the opportunity to update project targets and discuss changes needed in project design or implementation plans. In this context, IBRD and IDB may require that MINED prepare an action plan for the Banks review and approval within two months following the completion of the Project Review. MINED will incorporate the changes agreed upon in the Project documents, including, the Project Operations Manual if warranted. The Project Manager will be responsible for organizing the Mid-term Project Review and ensuring that agreed follow-up actions, satisfactory to the Banks, are taken in a timely manner. 146 ANNEX 15 Terms of Reference for Project Review and Supervision Schedule Table 1: Supervision/ Project Launch and Annual Reviews IBRD IDB 1996 January Task Manager(s) 4 4 (IBRD 20SW) Project launch Educator 1 2 (IDB 20SW) Workshop Nutritionist I - Community Org.Specialist I . Procurement Specialists 1 1 Implementation Specialist I I Institutional Development - - Specialist I - Logical Framework Specialist - 2 September (Annual Task Manager 3 3 Review) Educators (Textbooks , Teacher 2 2 Training and Evaluation Specialists) Nutritionist I - Procurement Specialist I 1 Implementation Specialist 1 Information System Specialist I I Institutional Modernization Spec I I Communication Specialist. - 1997 March Task Manager 2 2 (IBRD 18SW) Educator 2 2 (IDB 18SW) Nutritionist I - Community Organization Spec. I Institutional Development 2 2 Communication Specialist - September Task manager 3 3 (Annual Review) Educators 2 2 Nutritionist I - Community Organization Specialist I Implementation Specialist I Procurement Specialist I I Institutional Development 2 Communication Specialist - 1 1998 March Task Manager 2 2 (IBRD 21 SW) Educators 2 2 (IDB 21 SW) Nutritionist I - Community Organization Spec. -I Institutional Modernization Specialist 2 1 Communication Specialist -I September Task manager 3 3 (Mid-term Review) Educator-Training and Evaluation Specialists 3 4 Nutritionist I - Community Organization Specialist 2 1 Implementation Specialist - I Procurement Specialist 1 Institutional Modernization Spec. 2 1 Financial Specialist 1 I Information System Specialist I ._____________ _________________ Communication Specialist - 147 ANNEX 15 Terms of Reference for Project Review and Supervision Schedule : -.- : -:::. . |-.SUPERSIQN T.1EAM TF G :: weeks) I1BRD 1DB 1999 March Task Manager 2 2 Educators - 2 (1BRD 17SW) Nutritionist 1 - (IDB 17SW) Community Organization Spec. I - Institutional Development Specialist 2 2 September Task Manager 3 3 (Annual Review) Educator 2 3 Nutritionist I- Conummity Organization Specialist 1 I Inplementation Specialist I I Procurement Specialist I I Institutional Development Specialist 2 1 Coxmmunication Specialist - 1 2000 March Task Manager 2 2 (IBRD 19SW) Educator -Training Specialist - 2 (1DB 19SW) Nutritionist 1 - Community Organization Spec. 1 - Institutional Modernization 2 2 Specialist December Task manager 3 3 (Final Supervision Educator 3 3 and Project Nutritionist 1 1 Implementation Community Organization Specialist 1 Completion) Implementation Specialist I Procurement Specialist I I Institutional Development 2 1 Specialists - Communication Specialist 1 Financial Analyst ann sup.doc 1996 ( 1997 I 199B 1999 2000 ID Task Name Q1 Q2 Q3 04 0| Q20Q3 q4 |Q 2 Q3 Q4 Q1 Q2 Q3 Q4 1 0 2 I EXPANSION OF ACCESS TO PRESCHOOL AND BASIC ED - 2 Expansion of Preschool and Basic Education in Rural i 3 Study Redstribution of TeacherslHuman Resources 4 Create New EDUCO Sections 9 Transform Existing Traditional Sections 14 Rehabilitation of Infrastructure for Transformed School _ _ _ _ _ 15 Strengthening the EDUCO Program 16 Study Private Organizations - 17 PIlot Test New Methods 1S Evaluate Participation of NGOs - 19 Evaluate Muligrade Experience - 20 Design Parents School Program 21 Evaluate Parents School Program il S 22 Communication Campaign 00 23 Pilo Test New Financial Mechanisms 24 Revise Legal Framework 00 25 IMPROVEMENT IN EDtUCATION QUALITY 4 26 Curriculun Development 27 Textbook Cost-Recovery Study 28 Curriculum Improvement Program (Preschool, 3rd Cy 29 Improve Quality and Use of Curriculum I I I 30 Promote Participation of Community 31 Design and Implement Multigrade Programs I . 32 Textbooks and Instructional Materials i _ Task M Summary ' Rolled Up Progress Proect El Salvador Basic Education M r,______ Date: 8/215 Progress Rolled Up Task *. File Name: ES70795.MPP LilsD RoldUpMe3 Milestone *Rolled UpMILestone (J> (3 0% 1996 ~~~~1997 1991999 2000 ID Task Namne Q1 02 Q3 Q4 |Q 2 3 |4 01 02 03 |4 0 1 02 03 4 0 Q1 02 03 Q4 33 Provide Materials . ,_._: 34 Sustainable Provision System 35 Design Basic Package of Instruclional Materials Syste 36 Implement Basic Package of Instructional Materials Sy __ 37 Develop System for Production and Distribution of Tex 38 Provide Equipment, Fumiture, Instructional Resources 39 In-Service Teacher Training System 40 Design Decentralized Training Program 41 Implement System __ 42 Diagnose In-Service Training Needs 43 Technical Assistance to Curriculum Staff Groups : 44 Establsh Dissemination SystemE 45 IdentIfy Pre-Service Training Needs 46 Prepare Pre-service Assessment Study . 47 Education Assessment System 48 Provide Criteria 49 Improve Methodologies : SO Mobilize Public Opinion = 61 Provide Mechanism to Target Resources 52 Define Priority Needs for Training Programs 53 Strengthen Technical Capacity to Monitor Achievemen .s 64 School Health and Nutrition Prograrn 55 Revise Technical Content of Training Programs . 56 Identify Areas of Highest Risk Task __Summary Rolled Up Progress°D Project: El Salvador Basic Education M TsumyolUPge Date: 8/2195 Progress Roled Up Task FHe Name: ES70795.MPP M R Milestone *Rdled Up Milestone K) S oD o8 a e. a a a a ~~~~~~~~~~a a 4 U * o ~ 1 ~ - a a ua a .- a a t . a- a a -J Ln ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~~~~~~~~~~~~~~~~~~~- ial~~~~~~~~~~~~~~~~m i i - - . - - - - -... .. . . . .. . . . .. . . . . .. . . . .. . . . .. . . . .. . . . .. . . . ..-.. . .. . . . ..... .. . . . .. . . . .. . . . .. . . . . . . . . .. . . . .. . . . .. . .. . . . . Rm c u tn,~~~~~~~~~~~~~~~~~~~~~~~~~~~M A, 91 ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 M~~~~~~~~~~~~~~~~~~~~~~~~~~~~~')- olnpoq*S onlnumnlulj P* a 91 XaNw 05 1~~~~~~~~~~~~~~~~~ 151 ANNEX 17 Education Projects Funded By IDB EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT EDUCATION PROJECTS FUNDED BY INTER-AMERICAN DEVELOPMENT BANK (US$ thousands) Executing Approval Loan: Agency Objective Date Amount 50/IT-ES University of El Education improvement 12/20/62 670 Salvador in general areas and basic sciences 264/SF-ES Centroamerican Expansion and improve 7/9/70 2,000 University, Jose the academic and fiscal Simeon Canias structures 537/SF-ES Centroanerican 2nd stage project to 12/8/77 9,000 University, Jose expand and imnprove the Sime6n Canias acadermic and physical infrastructures ATN/TF-1469-ES Ministry of Contribute to financing 8/10/76 70 Planning the cost of a study about the supply and demand for human resources for secondary and higher education ATN/SF-1793-ES Salvadoran Fund Study of Technical 12/12/82 85 for Studies of Pre- Feasibility and Economic investment a Expansion and Improvement of Technical Education ATN/SF-261 1-ES Ministry of Training and Program 8/26/85 7 Education for Illiteracy and Adult Education ATN/TF-2659-ES Ministry of Preparation of a 11/18/85 117 Education Program for Illiteracy and Adult Education ATN/SF-2329-ES Salvadoran Fund Preparation of studies of 95 for Studies of Pre- backing for the request investment for a loan for the Project for Non-University Technical Education PR-1703-ES Ministry of Rehabilitation of the 2/28/90 14,400 Education Centroamerican Technological Institute a Partial support to the education sector. 152 ANNEX 18 List of Documents in Project File EL SALVADOR BASIC EDUCATION MODERNIZATION PROJECT LIST OF DOCUMENTS IN PROJECT FILE Artana, D. 1995. "El Programa Educativo del Gobiemo de El Salvador, Consistencia con las Metas Macroec6nomicas de Mediano Plazo." Ayala Alvarado, R. 1994. "Plan Global Trabajo Comunitario con las Asociaciones Comunales para la Educaci6n - ACE." Bodnar de Pilla, G. 1994. "Investigaci6n Cualitativa Educaci6n Media." de Barraza, S.R. 1995. "Reflexiones Sobre las Lirmitantes del Sector Educaci6n." (Social Assessment) "Diagnostico del Sistema de Desarrollo de Recursos Humanos de El Salvador." 1994. Un proyecto del Harvard Institute for International Development con la colaboraci6n de Fundaci6n Empresarial para el Desarrollo Educativo, Universidad Centroamericana Jos6 Simeon Cafias. Diaz Diaz, H. 1993. "Indicadores Estadisticos Basicos del Programa EDUCO." Femandez Rojos, H. 1993. "Amilisis de los Procesos de Gesti6n del Programa EDUCO." Lindo-Fuendes, H. 1994. "Informe, Investigaci6n Cualitativa Sobre la Educaci6n en El Salvador." Lindo-Fuentes, H. 1995. "Social Assessment Report on Basic Education in El Salvador: Community Participation Component." (Social Assessment) Lindo Gutierrez, I. 1994. "Investigaci6n Cualitativa, Educaci6n Basica." Manuel Enriquez Hinds. Letter From Minister of Finance to Mr. James D. Wolfensohn, President, World Bank, July 20, 1995. (Commitment to increase education budgets) Marinio Solano, G. 1993. "Sistematizaci6n del Programa EDUCO." MINED. 1995. "Convenio-Contrato Celebrado entre el Ministerio de Educaci6n y El Fondo de Inversi6n Social (FIS)." MINED. 1994. "EDUCO - Una Experiencia en Marcha." MINED. 1995. "Memoria de Labores 1989-1994." MINED. 1995. "Proyecto, Apoyo a la Reforma Educativa, Sector Educaci6n." Propuesta para ser presentada al Banco Intemacional de Reconstrucci6n y Fomento (BRIN) y al Banco Interamericano de Desarrollo (BID). MIPLAN. 1994. "Plan de Desarrollo Econ6mico y Social 1994-1999." Mora Mora, J. 1992. "Analisis Comparativo de Secciones de Primer Grado EDUCO y no EDUCO." Parra Sandoval, C.F. 1992. "Testimoniales de Una Experiencia en Marcha." 153 ANNEX 18 List of Documents in Project File Prawda, J. "Educational Decentralization in Latin America, Lessons Learned." A View from LATHR, No. 27. World Bank, Human Resources Division, Technical Department, Latin America and the Caribbean Region, Washington, DC. Quintana, J. 1992. "Informe Tecnico: Modelo de Simulaci6n Financiera." Quintana, J. 1993. "Economia de la Educaci6n," Informe del Proyecto: Solidificaci6n del Alcance de la Educaci6n Basica. Quintana, J. 1995. "Cuadros Sobre Tasas de Escolanizacion y Transici6n de la Educaci6n Parvularia y Basica Segun Datos de Poblaci6n y Matricula de 1993." Quintana, J. 1995. "Modelo de Simulaci6n para la Planificaci6n Educativa." Quintana, J. 1995. "Otros Trabajos Producidos por el Consultor." Quintana, J. 1995. "Sistema de Asignaci6n de Prioridades para la Selecci6n de Municipios de la Zona Rural." Quintana, J. 1995. "Sistema de Base de Datos de EDUCO." Rand. 1994. "Report on the Financial Impact of the Proposed Education Reform Program," by M.R. Kilbum and N. Sastry. Rand. 1995. "An Analysis of the Unit Costs of Preschool and Primary School Education in El Salvador," by E. Melamid, N. Sastry, and R. Ross. Ripoll, M. 1995. "Boletin Informativo y Formulario Aplicaci6n Fondo Innovaciones Educativas." Universidad Francisco Gavidia. 1995. "Informe Final de los Resultados de la Investigaci6n Sobre Estadisticas Educativas." World Bank. 1993. Report and Recommendation of the International Bank for Reconstruction and Development to the Executive Directors on a Proposed Second Structural Adjustment Loan of US$50 million to the Republic of El Salvador. (contains country assistance strategy). World Bank. 1994. "Cost Comparison of EDUCO Schools and Traditional Schools," by M. Minowa. World Bank. 1994. "El Salvador - Community Education Strategy: Decentralized School Management." Country Department II, Human Resources Operations Division, Latin America and the Caribbean Regional Office. World Bank and IDB. 1994. "El Salvador - Moving to a Gender Approach in El Salvador: Issues and Recommendations." a- Isdoc IBRD 2721, 80 3' 8' C'. 88~~~~~~~~~~~~~~~~~~~~~~~~~~~1 37 88500 i:o, (njce - rD p_ 6r-1 os ( / S _v '- '°in°° ,- EL SALVADOR tt) a \~ >\ O SELECTED CITIES AND TOWNS N 5O,'T'0i~ ? ~ "~ ®N Fr DEPARTMENT CAPITALS 2 _®g I < t 69 NATIONAL CAPITAL E\ 1 ,-\ PAVED ROADS G U A T E M A L A rO G aO,-:,A C', ,_ -/ \ SECONDARY ROADS EX. 4'_ / O f N I A < - _ S RAILROADS / 7 C~~~~~~~~~~~~~~~~~~% > 0 ~~~~~~~~~~~~~MAIN PORTS / 1; JA N A ., O S DUl(,NO6D,. O\s) O AS RIVERS / lO.,O d. *.p.. C K C H/ALATENAA N G G a --I- DEPARTMENT BOUNDARIES / Co,Fd.I',1 d. Ia O0sEF Cac,o. ) INTERNATIONAL BOUNDARIES h \imoC. 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