EDUCATIONAL INFRASTRUCTURE
BORROWER AND
GUARANTOR:
Republic of El Salvador
EXECUTING AGENCY:
Ministry of Education (MINED)
AMOUNT AND SOURCE:
IDB: ORDINARY CAPITAL US$ 69.84 million
IDB/FSO (Local currency) US$ 1.10 million
Borrower US$ 7.90 million
Total: US$ 78.84 million
FINANCIAL
TERMS AND
CONDITIONS:
OC:
Amortization period: 25.0 years
Grace Period: 4.5 years
Interest rate: variable
Inspection and supervision: 1% of Loan Amount
Credit fee: 0.75%
Currency: US Dollars - Single Currency Facility
FSO:
Amortization period - FSO 30.0 years
Grace period: 10.0 years
Interest rate: 1% grace period; 2% thereafter.
Inspection and supervision: 1% of loan amount
Disbursement Period: 4 years
OBJECTIVES:
The objective of the project is to improve the physical learning environment for 20% of the nation's pupils. The project will address the needs for infrastructure in 831 of the highest priority schools out of the 2450 ( 34%) of schools deemed by a MINED survey to be in need of repair, extension or replacement. It is calculated that 250,000 predominantly poor children, who attend the participating schools, will benefit from the program.
DESCRIPTION:
The project responds to the demand for schooling generated by the modernization of the sector through the rehabilitation, reconstruction and expansion of school infrastructure. The project focuses on funding critical gaps in the quality and availability of infrastructure in all levels of education; preschool, basic and high school; in the different systems, EDUCO and traditional; and in zones of extreme poverty, both rural and urban, throughout the country, not covered by previous IDB and World Bank loans. Given the urgency and scale of need, and the availability of a reliable mechanism, in the form of the FIS, for the execution of large scale programs of small works, the project will include those schools already in the FIS pipeline and meeting FIS eligibility criteria, and use FIS operating procedures for the management of construction.
The project will finance five related components:
1. Construction and reconstruction (US$36.7 million). The project will invest US$14.4 million to construct 575 classrooms in 193 schools, in order to replace temporary classrooms which are rented, borrowed or unsuitable for teaching. It will spend US$21.2 million to construct 765 classrooms in 328 schools, to meet the expansion of urban marginal and rural demand; and US$1.2 million to construct 51 classrooms in 17 additional EDUCO schools for secciones whose number and size now justify a permanent base.
2. Repair and rehabilitation (US$11.8 million). The project will devote US$5.1 million to rehabilitate 561 classrooms in urgent need of repair, in 74 traditional rural and EDUCO schools. It will invest US$5.9 million for the rehabilitation of 1,191 classrooms in 211 out of the 400 schools which will be equipped with resource centers under project ES-0108, so that schools in poor condition need not be excluded from that project. Additionally, to meet the demand for space in high schools in underserved rural areas, the project will invest US$0.5 million to repair 23 classrooms in 5 rural high schools. Finally, it will provide US$0.4 million to rehabilitate and partially equip 31 classrooms in three technological centers: San Miguel, Zacatecoluca and Santa Ana.
3. Materials, equipment and furniture (US$5.2 million). The project will provide materials, equipment and furniture for the schools included in the works program.
4. National preventative maintenance fund US$3.0 million. The project will introduce a systematic nationwide maintenance program for public schools, based on the successes of a community managed maintenance pilot program carried out in MINED schools, and including schools in the EDUCO project. The project will also seek to prevent vandalism, through the promotion of community responsibility for care of schools. The component will consist of establishing a fund and technical support to: (a) equip communities with the skills and information they need to manage and undertake maintenance; (b) improve maintenance programming; and (c) improve monitoring of maintenance.
5. Institutional strengthening (US$0.9 million). This component has three elements. The first (US$0.28 million) is to design, implement and train MINED staff in the use of a dynamic and integrated Geographical Information System (GIS) which will enable MINED to manage all aspects of the educational infrastructure of the country. The second element of institutional strengthening (US$0.28) would be technical consultant support to ensure the efficient operation of the preventative maintenance program. The third element of institutional strengthening (US$0.34 million) is for administration and supervision of works and provision of support to the MINED for project execution.
ENVIRONMENTAL
AND SOCIAL REVIEW:
The CESI/TRG considered the ESIB and its recommendations are found in paragraphs 2.15 b, 4.17, 4.18 and 4.19. These include the appointment of an environmental specialist to the MINED for the construction phase and the inclusion of environmental considerations in school maintenance.
BENEFITS:
It is calculated that 250,000 predominantly poor children who attend the participating schools will benefit from the immediate impact of the program. In addition, the MINED will have a better system by which to monitor and maintain its educational patrimony.
RISKS:
The main risk faced by the project lies in the implementation capacity of the GOES. A number of steps have been taken to ensure timely implementation. The construction of schools is to be divided between the FISDL and civil society institutions. The measures taken to minimize the risks are described in paragraphs 4.22 and 4.23.
THE BANK'S
COUNTRY AND
SECTOR STRATEGY:
The program is consistent with the IDB's country and sector strategies. The IDB country strategy is consistent with the GOES strategy and the main programming areas for IDB are: (a) social reform and local development; (b) environment and sustainable development; (c) promotion of private sector development; and (d) modernization of the state. IDB strategy for education in El Salvador is to promote greater equity and both internal and external efficiency. The bank places emphasis on: (a) updating school curricula, teacher training and upgrading materials and equipment; (b) reinforcing the administrative, managerial and technical capacity of the MINED; (c) developing innovative ways to expand coverage, including specific targets for girls and informal education for women, adults and disadvantaged adolescents; (d) promoting community and parent participation in education and strengthening school boards; and (e) upgrading and expanding basic infrastructure.
EXCEPTIONS TO BANK
POLICY:
See Procurement of goods, works and consulting services.
PROCUREMENT OF
GOODS, WORKS AND
CONSULTING
SERVICES:
The thresholds above which international competitive bidding is mandatory are: US$250,000 for goods; US$ 2,000,000 for works and US$200,000 for consulting services. In addition, direct hiring of three specialized agencies (FIS and two NGOs - Habitat and Fundasal) is recommended, as an exception to selection by open competition. The referred agencies will carry out any procurement or other required activitiesobserving the procedures of the Bank. The direct hiring procedure is in accordance with Chapter GS-403 of the Procurement Manual (see justification in paragraphs 3.3 and 3.13).
SPECIAL
CONTRACTUAL
CONDITIONS:
The following conditions will be incorporated:
a. Conditions Prior to First Disbursement:
(i) Approval by the Bank of cooperation accords to be signed between the MINED and the Executing Agencies (3.2 through 3.9).
(ii) Presentation of the annual work plan for the first year of execution (3.11)
b. Special conditions:
(i) Establishment of a funding procedure and technical support mechanism, including the adoption of operating rules and regulations, should be complied with prior to the approval of work plan for year two (2.12).
(ii) Adoption of the GIS prior to the agreement of work plan for year 3. ( 2.13)
POVERTY TARGETING:
The program qualifies as a poverty targeted investment under the Eight Replenishment (Document GN-1964-2). It supports predominantly pre-school and basic education. In addition the project has been geographically targetted to poor beneficiaries. It has been determined that a significant majority of the beneficiaries of the operation, according to the classification prevailing in the country, are poor.