IDB, EL SALVADOR SIGN $93.9 MILLION IN LOANS FOR EDUCATION, HEALTH

NR-67/99

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March 13, 1999

IDB, EL SALVADOR SIGN $93.9 MILLION IN LOANS FOR EDUCATION, HEALTH

Modern technologies to improve basic education, health services

PARIS -- Salvadorean Finance Minister Manuel Enrique Hinds and Inter-American Development Bank President Enrique V. Iglesias today signed documents for two loans totaling $93.9 million that will support a program to expand and improve basic education in El Salvador through the use of modern technologies and a project to improve health care for the poor.
The signing ceremony took place ahead of the annual meeting of the IDB's Board of Governors, which will be held here next week.

EDUCATION

A $73.2 million loan will help finance a project to improve education services for hundreds of thousands of pupils in disadvantaged Salvadorean communities through the use of interactive radio and video libraries. Under the program, 1,600 lab kits will be distributed in schools in rural and low-income areas and 400 science libraries will be established.

HEALTH

A $20.7 million loan will support El Salvador's efforts to make its health care services more efficient. At a national level, the project will assist the reorganization and decentralization of key ministerial functions, including health programs and their financial management system.
Pilot projects will be launched in the departments of Santa Ana and San Miguel, offering the disadvantaged a package of health care services furnished by both private and public providers on a results-oriented basis.
Two public hospitals will be transformed into model facilities run with modern management tools. IDB resources will also help finance technical assistance, training and equipment purchases.