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Document of

The World Bank

FOR OFFICIAI. USE ONLY

Report No. 11834-CO

STAFF APPRAISAL REPORT

COLOMB IA

SECONDARY EDUCATION PROJECT

NOVEMBER 19, 1993

M 1(-,NICKGRAPHI(

Pe E,,:rt NC,n llbU4Type: SAP

Country Department IIIHuman REsources Operations DivisionLatin America and the Caribbean Reg'on

This document has a restricted distribution snd may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Currency Equivalent

Currency Unit = Colombian Peso (Col $)Col$1.00 = US $0.001233 (September 1993)

US$1.00 = Col$ 810.8 (September 1993)

Fiscal Year

January I - December 31

Academic Year

Calendar A Febniary I - November 30Calendar B Septeinbcr I - June 30

FOR OFFICIAL USE ONLY

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

BCH Banco Central Hipotecario(Central Mortgage Bank)

CEP Centros Experimentales Piloto(Pilot Experimental Centers)

DANE Direcci6n Nacional de Estadisticas(National Statistics Department)

DNP Departamento Nacional de Planeaci6n(National Planning Department)

FER Fondos Educativos Regionales(Regional Education Fund)

FECODE Federaci6n Colombiana de Educadores(Colombian Teackers Union)

FINDETER Financiera del Desarrollo Territorial S.A.(Financial Development Corporation)

FIS Fondo de Inversi6n Social(Social Investment Fund)

ICETEX Instituto Colombiano de Credito Educativo y EstudiosTlcnicos en el Exterior (Colombian Institute ofEducational Credit and Training Abroad)

ICFES Instituto Colombiano para el Fomento de la Educaci6nSuperior (Colombian Institute for the Development ofHigher Education)

ICONTEC Instituto Nacional de Normas Tecnicas(National Institute of Technical Norms)

INEM Instituto Nacional de Ensefianza Diversificada(Diversified Secondary School)

ITA Institutos Tecnicos Agricolas(Agriculture Technical Schools)

IVA Impuesto al Valor Agregado(National Value-added Tax)

MEN Ministerio de Educacion Nacional(National Ministry of Education)

MEP Municipal Education PlanMHCP Ministerio de Hacienda y Credito Publico

(Ministry of Finance)PCU Unidad Coordinadora de Proyecto

(Project Coordinating Unit)SENA Servicio Nacional de Aprendizaje

(National Vocational Training Service)SNP Servicio Nacional de Pruebas

(National Examination Service)TVET Technical Vocational Education Training

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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COLOMBIA

SECONDARY EDUCATION PROJECT

STAFF APPRAISAL REPORT

Table of Contents

BASIC DATA SHEEW ................................ v

LOAN AND PROJECr SUMMARY ............................... vi

I. INTRODUCION ................................. 1A. The Economic and Social Setting . ........................... 1B. The Education Sector ................................ 2C. Main Issues in Secondary Education .......................... 6D. Government Sectoral Objectives and Strategy ................... 12E. Bank Role and Strategy ................................. 13

HI. THE PROJECT ....................................... 14A. Project Objectives ..................................... 14B. Project Description . .................................. 14

III. PROJECT COST AND FINANCING PLAN .......... ............. 23A. Project Cost ....................................... 23B. Financing Plan ...................................... 24

This report is based on the fiadings of preparation and pre-appraisal missions which visited Colombia during Juneand October 1992, comprisin5 Mmes./Messrs. Michael Potashnik (Mission Leader, LA3HR), Himelda Martinez(EAPH), Maria Helera Maldonadi-Villar (Consultant, LA3HR), Luis Lmas, Luis Secco, Emesto Schiefelbein,Steven Hoenack (Consultants). An Eppraisal mission visited Colombia in March 1993, consisting of Mmes./Messrs.Michael Potashn i (Mission Leader LA3HR), Himelda Martinez (EA3PH), Eduardo Velez (LA2HR), Maria HelenaMaldonado-VIllar (Consultant, LA3HR), Luis Secco, Clemencia Chiappe, Oscar Alvarado, Colin Seelig(Consultants). Maria Victoria Lister (LA3HR) prepared the cost tables. Emmanuel Jimenez (PRDPH) advised onthe ovaluation sub-component. William Mayville (LA4DR) helped edit the report. Rafael Orduz (Vice Ministerof Education of Colombia), Javier Serrano (MEN), Carmen Helena Vergara (DNP) and an inter-ministerial teamof officials from MEN and DNP contributed greatly in the preparation of this report. The peer reviewers of thisreport were Mmes. Himelda Martinez (EA3HR) and Estelle James (CECPS). Messrs. Jacques van der Gaag andYoshiali Abe were, respectively, the managing Division Chief and Department Director.

Iv. IMPLEMENTATION, PROCUREMENT, DISBURSEMENT, AUDITING,MON1rORING ANDSUPERVISION .......................... 25A. P'oject a1a t . ................................ 25B. ImplementationSchedule ............................... 28C. Procutsanent ....................................... 29D. Acoonts dDb z .............................. 32E. Audts ........................................... 32F. ProeMo it g,EvaluationandSSuprsion .................. 33

V. EXPECTED BENuEFS AND RISKS ........................... 34A. Benefits .......................................... 34B. isks .................................. ..... 34

VI. AGREEMENTS REACHED AND RECOMMENDATION ............... 34

ANNEXES AND CHARTS

Annex 1: The Education System, Structure and Curriculum

Annex 2: Education Administration

Annex 3: Education Statistics

Table 1: National Enrollment Projections by Grade for 1991-1997Table 2: Estimated Actual and Projected Progressions of Efficiency Rates

for Secondary Education (Grades 6 to 11)Table 3: Total Enrollment in the Colombian Education System ('000) and

Annual Grcwth Rates (in percent)Table 4: Cohort of Projected Progression and EfficiencyTable 5: Adult IllitWcy RateTable 6: Years of Schooling of the Labor Force

Annex 4: School Renovation and Construction: Role of FINDETER

Annex 5: Vouchers for Private Secondary Schools

Annex 6: Educational Quality Enhancenment

Annex 7: Management and Institutional Strengthening

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Aam 5: Sttcs for Da ad Municipalit PaJicipag in the Poject

Table 1: Papultion of the 87 Prticipating Pilct MunicipalitiesMg* 2: Pqulaton by Department of the 87 Pa Mipaig Pilot

MunicipalidesTable 3: Basc Education Data for 87 Pcipating Pilot Mu liesTable 4: Not Pdmary Educa Enromt Ratio 1990bble 5: Not Seconday Education Elrolmnt Ratio 1990ble 6: Primazy Pupil Teacher Rat 1990

able 7: Snday Pupil Teacher Ratio 1990

Ane 9: Prct CooMditon Unit Stnicturo and uincdons

Ann 10: Poec Costs

Table 1: Costs by Categories of ExpendituresTable 2: Project Components by YearTable 3: Summary Accounts by YearTable 4: Summary Accounts by Project ComponentTable 5: Estimated Schedule of DisbursementsTable 6: Allocation of Loan Proceeds

Anna 11: Project Flow of Funds

Ann 12: Monitoring Indicators, Supervision Plan and Evaluation Studies

Ann 13: Seected Documents and Data Available in the Project File

MAP: IRD No. 24591

v

COLOMBIA

SECONDARY EDUCATION PROJECT

BASIC DATA SHEET

A. General Country Data: Data Year

1. Population Estimate (million) 32.3 19902. Population Growth Rate 1989-2000 (%) 1.5 19903. GDP Per Capita (US$) 1,260 19904. GDP Growth Rate (%) 4.1 19905. Area ('000 Sq. Km.) 1,139 1990

B. Education Data:

1. Enrollment Rate (%):

Net Primary Education 84 1990Net Secondary Education 46 1990

2. Public Education Expenditures:

As % of GDP 2.4 1992As % of Govemment Spending 29 1989In per Capita US$:

Primary Education 62 1990Secondary Education 125 1990Tertiary Education 666 1990

3. Estimated Average Student/Teacher Ratio:

Primary 30 1990Secondary 19 1990

4. Year of Schooling of the Labor Force 6.1 1990

5. Illiteracy Rate 12.2 1985

Sources: Human Development Report, UNDP, 1992Social Indicators of Development, World Bank, 1991-92Plan de Apertura Educativa Statistical Annex, DNP-UDS-DEC-2518, 1991

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COLOMBIASECONDARY EDUCATION PROJECT

STAFF APPRAISAL REPORT

LOAN AND PROJECT SUMMARY

Borrower: Republic of Colombia

ef-ards : Ministry of Education (MEN), Local Governments, and Private Schools

Loan Amount: US$90.0 million equivalent

Tems: Repayment in 20 years including a 5-year grace period, at the Bank's standardvariable interest rate.

Project Objectives: The project would support education initiatives designed to: (a) implement a newnational government strategy of cofinancing investments in education with thedepartments and municipalities; (b) provide incentives to regional and localgovernments to support national educational development targets; and (c) supportthe "municipalization" of educition by building local capacity for the planning,co-financing, and execution of investments by municipalities.

Project Description: The project comprises four main components designed to provide participatingmunicipalities with the assistance needed to implement their education plans andinvestment programs for secondary education development. In order to receiveproject support, each municipality would be required to prepara a MunicipalEducation Plan (MEP) with sub-projects. Funding for sub-projects would beprovided in the following areas:

(1) Increasing Coverage (US$62.9 million). The project would providefunding--within the framework of municipal plans and investment programs forsecondary education---for grants and loans for the rehabilitation of an estimated50 percent of some 1,250 public secondary school facilities in the 87 pilotmunicipalities and for new construction of public secondary school facilities tomeet projected increases in enrollment; (a) US$5.5 million for furniture; and(b) US$2.8 million for architectural fees.

(2) Expanding Access (US$8.3 million). In municipalities where low-incomestudents do not have access to public secondary schools, and are at high risk todropout of the education system, the projcct would fund vouchers to enable thesestudents to gain access to selected private schools that have excess capacity. Theproject would fund some 55,000 voucher years through 1997 at an averageannual cost of 100,000 pesos (US$143) per voucher year at 1991 prices.

(3) Educational Quality Enhancement (US$65.7 million). The project wouldprovide the following inputs to improve instruction and enhance studentachievernent in municipal public schools: (a) funding fo. School Improvement

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Plans (SIP) to encourage principals and teachers to diagnose their school aaidformulate programs to improve school quality and efficiency; (b) in-servicetraining for secondary school teachers and principals; (c) funding for thepurchase up to 4.2 million textbooks; and (d) resources to purchase otherinstructional material and equipment to cover a wide range of curriculumrequirements.

(4) Managenent and Jmtitutional Atrengthening (US$13.1 million). Theproject would provide for: (a) management and institutional strengthening in thedepartments and municipalities and in MEN, based on the adoption of a planprepared by MEN for implementing the decentralization of education; (b)improve quality and reliability of educational statistics; (c) assist MEN inconducting national assessments of student achievement in math and reading atthe secondary school level; and (d) conduct policy and evaluation research.

Project Benefits: The project will support on average 60 percent of the total investmentrequirements for the 87 municipalities with the potential benefits as follovs: (a)increasing access to secondary education for an estimated 90,000 primary schoolgraduates in 87 municipalities; (b) providing opportunities for secondaryeducation for up to 22,000 students of low-income families; (c) enhancing thequality and efficiency of education in the 1,250 public secondary schools in the87 municipalities through the provision of up 4.2 million textbooks, teacher andprincipal training and instructional materials and equipment; (d) strengthening theadministrative and managerial capacity of 11 departments, 87 municipalities, andup to 1250 public school administrations to plan and implement educationimprovement programs; and (e) increasing the overall level of investments ineducation, and secondary education in particular, made by regional and localgovernments.

Project Risks: The major risks to project implementation are: 'a) insufficient impiementationcapacities in the MEN, FIS and other government agencies could result in slowproject execution; (b) the institutional weakness of local government and the highturnover of key municipal personnel could jeopardize the pursuit of coherenteducation programs at the local level; (c) local governments may not bp willingto participate in the project, because they lack confidence in the centralgovernment's commitment and ability to deliver on its promises; (d) localgovernments may not be able to invest in secondary educational facilities to theextent needed to reach the enrollment targets; and (e) the voucher program willnot gain the requisite political acceptance, although the first year of the programnhas been generally successful. The project design, including the sequencing ofBank assistance, implementation arrangements, a flexible manage,ment approach,and the use of technical assistance would help diminish these risks,

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- US$ million-Local Foeign ToWl

Incaing Coverae 37.5 15.7 53.2Expanding Acsu 7.5 0.0 7.5Quality F _ancemst 42.8 16.7 59.5Maagment Strengthening 9.4 2.5 11.9

BEl Colo 97.2 34.8 132.0Physical Contingencies 1.9 0.8 2.7Prie Contnecies ILl 1

Toal Project Costsa V' uQ 1A

' Totals may not add exactly due to rounding.Note: Estimates exclude taxes and dutes.

Fhmnding Plan:

- S$milliollLocal Foreign Total

Loa Govenments 30.0 - 30.0Financial Intermodiary/ia 30.0 - 30.0National GovernmentIBRD - ° 9

Total Costs §U 2Q

EslbatEd IBRI Dhbmieasg:

MDX D F Y m mim 199 '9 2Qw 2MQAnnual 1.8 9.0 13.5 18.0 18.0 18.0 9.0 2.7Cumulative 1.8 10.8 24.3 42.3 60.3 78.3 87.3 90.0

Rate of Retn: Not applicable.

I. INTRODUCTION

A. The Economk and Social Setting

1.1 High rates of economic growth averaging 4.5 percent per year and a reduction in thepopulation growth rate--from a peak of 3.7 percent between 1964-78 to less than 1.8 percentbetween 1978-88, have enabled Colombia to make impressive social progress in recentdecades. Water supply, health care and educational services have all grown rapidly and haveproduced substantial improvements in social conditions. Infant and maternal motalitydeclined from 80 to 40, and from 2.5 to I per 1,000 births, rwpectively, between 1965 and1990; life expectancy at birth now stands at 69 years, compared with 59 years in 1965.Over 80 percent of the relevant age group now attends primary school, 46 percent of the agegroup attends secondary school and the average schooling of the labor force is approximately6 years.

1.2 Despite economic growth and social progress, the distribution of social benefitsremains highly skewed. Marked disparities persist in key social indicators and across regionsand among rural, peri-urban and urban aeas. Poverty also remains a critical problem; anestimated 25 percent of the population is living below the poverty line and rural poverty ismore than 50 percent higher than in urban areas. Where there is high social servicecoverage, the indicators often mask serious shortfalls in quality and efficiency. There arealso large service deficits in health and education resulting from insufficient social sectorexpenditures. In the 1970s, overall per capita public expenditure for education was amongthe lowest in Latin America. During the 1980s, social sector expenditures stagnated ataround 7.5 percent of GDP, and have declined as a proportion of public expenditures from astigh as 43 percent in 1984 to a low of 33 percent in 1989.

1.3 Education and other social services are primarily financed by the natic-algovernment. However, the administration of social services has been a joint rftponsibility ofthe national govermnent and regional authorities. In the years prior to the mid-1970s,education was centrally financed but administered regionally, and after the mid-1970s untilrecently, education became a national government service. The decentralization process hasaccelerated during the last decade and is now an integral part of Colombia's newConstitution, which was promulgated in 1991. The new Constitution provides for the directelection of regional and local officials and greater responsibility for the management of localaffairs by the 33 departments and territories and over 1,000 municipalities. It also requiresthe national government to transfer an increasing share of budgetary resources to regionaland local governments to help defray investments and operating expenditures of socialservices. At the same time, the national government has adopted a strategy offeringcofinancing to local authorities to stimulate local investments in social services of nationalimportance. The expansion of secondary education and the improvement in its quality at themunicipal level figures prominently in this strategy.

1.4 The Colombian Government's economic and social development plan for 1990-94known as La Revoluci6n Pacifca makes education the centerpiece of its social developmentstrategy. Under the program known as the apertura educativa Government has declared itshigbest sector priority to be the expansion and inprovement in the quality of secondaryeducation. While giving priority to secondary education, Government has not lost sight of the

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imporSance of early childhood or primary education. However, the expansion of secondaryeducation and improving its quality is an appropriate goal at this time, given the fact thatduring the past 20 years the Colombian urban labor force has nearly attained universalprimary education and that the social retums to investments in secondary education,conservatively estimated at about 11 perceni, remain relatively high compared to otherinvestments in Colombia and to secontary education investments in most other LatinAmerican countries '.

B. The Educat. n Sector

Orpnization of the Education System (Ann 1)

1.5 The Colombian education system begins with 1 year of obligatory preschool forchildren under 6 years, followed by five years of primary schooang for children 7 to 1 1years, and six years of secondary education for children from 12 to 17 years. The five yearsof primary and the first four years of secondary comprise the basic education cycle (ciclobdsico). The last two years of secondary school are referred to as middle education(educaci6n media). It provides further general education or diversified technical-vocationaleducation culminating in general or vocational bachiller degrees. Post-secondary technicaleducation and vocational training are widely available through the National ApprenticeshipService (SENA) and private schools. Higher education is provided in numerous public andprivate universities offering undergraduate and graduate degrees.

Administrative Structure and Functions (Annex 2)

1.6 Up until the late 1960s, Colombia's departments and municipalities wpere responsiblefor the administration and financing of primary and secondary education. However, thenational government began to exert increasing control over education in order to addressgrowing concerns about low standards, inadequate financing and poor administration ofeducational services. After having increased its responsibilities for the financing andadministration of education, in the late 1980's the national government began once again toreturn the responsibility for education to the departments and municipalities as part of a trendtoward political, administrative, and fiscal decentralization. As a result of the many shifts inresponsibility for education over the years, a myriad of laws, decrees, and statutes havedefined the roles and responsibilities of each level of government, some of which, lackingregulations, have never been implemented. Thus, in order to implement provisions of thenew Constitution concerning inter-governmental transfers of social expenditures and to clarifythe roles and responsibilities of regional and local governments in managing the social sector,the national Government adopted Law 60 (1993). It is also has a new law underconsideration in the Congress which defines other political and administrative 'oles andresponsibilities of each level of Government for education. Law 60 delineates each level ofgovemment's roles and responsibilities as follows:

(a) At the local level some 1,000 municipalities are charged with administering publiceducation from preschool through middle secondary; making the necessavy

1. George Psacharopoulos and Ying Chu Ng, Earnings and Education in Latin America. World Bank,December, 1992.

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investments in infrastructure and equipment and providing for their maintenance; andinspecting and evaluating educational services.

(b) At the regional level, 33 departments are charged with administering nationalgovernment budget transfers to the local level (situadofiscaO; coordinating andharmonizing sector planning; financing educational services at the local level andregulating public service delivery; and regulating curricula and use of educationalmaterials in line with national norms.

(c) At the national level, MEN retains the tasks of formulating national educational plansand policies, establishing curricular and other educational norms to guide regionalauthorities, administering co-financing funds for sectoral development, anddetermining the overall guidelines, rules and regulations of service for teachers andadministrators.

1.7 The thrust of the new legislation is clearly to transfer responsibilities for themanagement of education from the national level to regional and local governments. Whilethis process was initiated several decades ago, its outcome has varied, since in practiceneither the departments nor the municipalities have always assumed new roles andresponsibilities transferred by the national government. However, departments are nowtaking charge of what were previously national govemment educational administrative entitiessuch as the Regional Education Funds (FER) v.'hich administer teachers' salaries, and theCenters for Pilot Experiments (CEP) which provide teacher training and technical assistance;The larger cities have their own municipal secretaries of education, which hire teachers,administer salaries, and manage schools. Other municipalities have also assumed theseresponsibilities--which were transferred to them by the national government under lawspassed in 1988. However, for the majority (77 percent) education remains a national ordepartmental responsibility that is administered by Educational Development Units (Nicleosde Desarrollk Educativo), paid for by the national government and headed by a mayoralappointee. These units are currently responsible for executing national and departmentalpolicy, preparing educational development plans and assessing and overseeing the operationof schools.

Enrollment (Annex 3)

1.8 Over the past four decades, Colombia's tducation system expanded dramatically at alllevels. Whereas in the early 1950s less than 50 percent of children between 7 and 11 yearsof age attended school, the number with access increased to approximately 80 percent by1990. During the same period, net secondary education enrollments also grew rapidly,doubling during the decades of the 1970s and 1980s to reach the current net enrollment levelof 46 percent. Higher education enrollments have also increased dramatically over theperiod. Enrollments in the education system are currently as follows.

1.9 As pre-school education was only made obligatory under Colombia's 1991Constitution, enrollments remain low and are mainly in private schools in urban areas.However, the current Government has an ambitious program called APso 0 to expand accessrapidly to public preschool education as a complement to other pre-school, integrated-service

programs. The intent is to reduce first-year repetitions and subsequent dropouts in primaryschool and to improve student achievement at the primary level.

1.10 Primary education enrollment in public and private schools has grown rapidly duringthe past three decades and reached an estimated total of 4.1 million students in 1990. Anestimated 16 percent of primary enrollments are in private schools. Students are almostequally divided between males and females. Access to primary education has increaseddramatically in rural areas as a result of the Government's campaign for universal primaryeducation and its innovative multigrade teaching system, Esruela Nueva. However, some 20percent of children in rural areas still do not attend school beginning at age 7. Enrollmentratios and access also vary according to the level of development in the departments andincome distribution.

1.11 Secondary education enrollment has also grown rapidly. In 1991 there was anestimated enrollment of 2.4 million students. Although Colombia has a diversified secondaryeducation system, the general education track remains the predominant mode, enrolling some78 percent of students; the balance is distributed among five vocational tracks offered in twodifferent types of schools: (a) basic secondary vocational schools (including agricultural,commercial, industrial, pedagogical and social services schools) that account for 95 percentof vocational enrollments, and (b) the comprehensive secondary schools (INEMs) of whichthere are 21, and agricultural technical schools (ITAs) with 5 percent of vocationalenrollments.

1.12 Some 84 percent of enrollments are in urban areas, making secondary education anessentially urban service. The net enrollment ratio for secondary schooling was only some46 percent of children between 12 and 17 years of age. Enrollment ratios in the largemunicipalities average 58 percent but are only 36 percent in the smaller municipalities. Anestimated 60 percent of enrollments were in public schools and 40 percent in privateinstitutions. Students from upper-income families all attend private schools; however, privateschools serve students from all income groups.

1.13 Over half of the students graduating from secondary schools continue to full-timefurther education. Some 90 percent of secondary graduates take the higher educationentrance examination (ICFES); of these an estimated three out of four gain admission tosome type of post-secondary institution, university or other tertiary institution 2. There werean estimated 500,000 students enrolled in 236 higher education institutions during 1989.Some 70 percent are private. Until quite recently, higher education only served a small,select group of the population.

2. Post-secondary technical education has grown rapidly over the last decade as part of a drive to opcn up anon-university altemative for secondary school graduates. Follow-up studies indicate that only some 50 to 60percent are still studying in higher education three years after graduation. Opinions vary as to how wellqualified are secondary graduates who enter the labor market. Rates of return of secondary graduates are closeto 10 percent for those from vocational tracks.

Adult Literacy and Years of Schooling

1.14 Colombia reduced the illiteracy rate of its adult population from 37.7 in 1951 to 12.2in 1985. While in 1951 more than 40 percent of the labor force had no formal education andonly 8 percent had gone beyond primary school, by 1985 less than 10 percent had noeducation at all and more than 30 percent had finished primary school. As of 1990, theaverage years of schooling among the labor force was 6.1 years. These figures placeColombia among the countries in the region with the highest illiteracy rate and one of thelowest-years-of-schooling rate. However, considerable variations exist in average level ofeducational attainment by urban and rural areas, with the lowest rates not surprisingly in thepoorest areas of the country.

Educational Flnancing and Expenditures

1.15 Public spending on education has either stagnated or declined in real terms since themid-1980s. It is currently estimated at 2.4 percent of GDP (1992) and about 20 percent ofthe budget--well below that of many countries at a comparable stage of development. Duringthe first half of the 1980s, expenditures had reached 3.1 percent of GDP and 22 percent ofthe budget, as a result of the national government's decision to take over the responsibilityfor public primary and secondary education from the departments and to raise teacherssalaries. However, since then, the national government has sought to control educationalexpenditures by freezing the recruitment of teachers paid by the national government as aresult of which expenditures have declined to current levels. Thus, in 1990, educationalexpenditures in real terms were below those in 1984.

1.16 The pattern of per student public spending at different educational levels of educationin 1990 generally follows the skewed pattern of other Latin American countries. per pupilexpenditure for primary education grew about 50 percent between 1978 and 1984, and withsmall variations remained at this level until the end of the decade, yet was still below theaverage for Latin American countries in 1990. In 1990 per student spending at thesecondary level (US$125) was roughly double that at the primary level (US$62) while theratio of per student higher education spending (US$666) to per student spending can betenfold or more. The increase in spending directed to secondary education reflects both thetremendous growth in enrollment at that level during the 1980s and perhaps the higher unitcosts associated with the provision of secondary education. On the other hand, pupils fromhigher income levels are overrepresented in secondary and hi-her education; thus, a greaterportion of these allocations tend not to benefit the poorer segments of the population.Expenditures at the primary and secondary levels are also almost entirely personnel-related,thereby curtailing expenditures on essential instructional inputs and supplies of basicmaterials and equipment for schools.

1.17 There has been limited public investment in education in recent years. After 1984,mainly because of fiscal adjustment measures, per pupil expenditures not only stoppedincreasing but actually began to decline. Despite progress over the 1980s, per pupilexpenditure continues to be low by international standards. Per student investment in 1990reached US$4.13 at the primary level; US$5.39 at the secondary level; and US$49 for highereducation. Per student investment spending in 1990 as a percentage of per student

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operational spending was only 6.7 at the primary level, 4.3 at the secondary level, and 7.4for higher education. Investment spending per student at the primary level, while low, hasincreased significantly since the late 1980s. In addition to these investment expenditures,MEN directly allocated annually to municipalities and departments an estimated US$1 millionfrom a special Fund created under Law 21 for repairs of diversified secondary schools.

1.18 The national government is primarily responsible for the funding of public education,providing 90 percent of total costs. The departments and municipalities also cover someeducational expenditures from their own resources. For example, the Fondo de ServiciosDocentes is based on a small fee charged to students and is used for maintaining adequateschool supplies (e.g., chalk and paper) and for physical maintenance (e.g., replacing brokenglass and light bulbs). A board, comprised of the principal and a teacher from the academicand technical stream, a community representative/s, an accountant, and a supplier/s, willoversee expenditures, with audits done by the National Comptroller's Office. Since 1975,the Nation's funding share has dramatically increased from 61 to 90 percent, while thedepartments' share declined from 40 to 5 percent. The municipalities, on the other hand,increased their contribution to total education expenditures to 2 percent. The funding sharesof the departments and municipalities are being used primarily co pay the salaries of teachersrecruited outside the official national roster.

1.19 The national govemment's funding for education and other social services istransferred to the departments and municipalities via two transfer mechanisms: the situadofiscal and municipal transfers. The situadofiscal flows directly to departments to be dividedbetween funding educational and public health services (66.4 percent of the situadofiscal wasallocated to education in 1992). The municipal investment transfers are apportioned directlyto local governments on the basis of population. These two transfers represent 25 percent ofthe central govemment's current revenues. In line with the 1991 Constitution, the centralgovernment is preparing a new law to implement a gradual increase in transfers to thedepartments and municipalities under the situado fiscal and municipal investment transfersthat would amount to 46 percent of the central govemment's revenues. It would also modifythe formulae for computing the transfers to take account of the social service provided, thenumber of constituents lacking service, population, fiscal effort, and administrativeefficiency. A third and new source of national government support for education is theSocial Investment Fund (FIS) which provides project cofinancing to departments andmunicipalities from national and extemal sources. The FIS was created by decree inDecember 1992 and is supposed to be operational on January 1, 1994.

C. Main lssues in Secondary Education

1.20 The main issues in secondary education are: (a) low student enrollment; (b) limitedand unequal access; (c) low efficiency; (d) unsatisfactory quality; and (e) weak institutionaland managerial capability to implement the decentralization of education.

Low Student Enrollment

1.21 While Colombia has successfully expanded enrollment in primary education and willsoon achieve universal access, secondary education enrollment lags far behind. Colombia's

net enrollment rate is 46 percent, below the Latin American average of 52 percent, andconsiderably below the secondary education enrollments in countries such as Chile's 81.6.Colombia's low enrollment rate in secondary education is the result of two causes:historically low rates of internal efficiency in primary education combined with high drop outrates after 5 to 6 years of schooling, and past under-investment in public secondary schoolfacilities. Both trends will need to be reversed in order to increase secondary schoolenrollments in the years ahead.

Internal Effciency in Primary Education

1.22 Although Colombia has improved access to primary education, low internal efficiencycontinues to be a major issue at this level and impacts on enrollment at the secondary level.While th: gross enrollment rate at the primary level reached 110 percent in 1991, the netenrollment rate (for the cohort between 7 and 11 years of age) was 75 percent. Thisdifference is explained by high average repetition rates during the five years of primaryeducation, beginning with approximately 26 percent repetition in grade 1. On average, everystudent graduating from primary requires 7 years to complete five grades. While on average87 percent of primary students complete all five grades, 19.5 percent of the graduates do soonly after repeating three or more courses. After 5 to 6 years of schooling, students whoturn 12 and 13 years of age begin to leave the school system in increasing numbers, probablyout of economic necessity.

1.23 The national policy of automatic promotion at the primary level adopted in 1988, andhigh retention rates (resulting from the school improvements introduced under the EscuelaNueva) are projected to increase both primary education completion rates and primary tosecondary education transition rates. As a consequence, whereas secondary educationenrollment has grown at an average annual rate of some 2.1 percent over the past five years,it is now projected to increase during the remainder of the decade at an annual rate ofbetween about 4 percent. This roughly translates into a projected increase of about 27percent in secondary education enrollments over the period 1991 to 1997, provided accessincreases simultaneously 3 (Annex 3).

Limited and Unequal Access

1.24 As most of Colombia's public secondary schools already operate on two and threeshifts, few municipalities are able to offer increased access to public secondary educationwithout investing in the expansion of schoo! facilities. Further, as secondary school placeshave become a premium, municipalities that can offer them have been attracting students

3. In its Plan de Apertura Educativa the Government has targeted a massive increase in secondary educationenrollment in the order of 1.1 million students by the end of the decade. However, this target is not achievablein the short run based on projected enrolment rates calculated for this project by E. Schiefelbein fromUNESCO-OREALC, with data provided by MEN. Assuming no improvements in efficiency rates at theprimary level, national enrollment growth at the secondary level from 1991 to 1997 would be in the range of230,000 students. Assuming growth of slightly over 4 percent per year, projected increases during the perod1991-97 could reach a total of 642,000.

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from neighboring communities that have no secondary school places available. To counterthis trend, municipalities will not only need to make investments in school facilities. Theywill need to plan their investments carefully and coordinate the location of schools withneighboring communities.

1.25 For upper and middle income families, the limited access to public schools is not acompelling problem, since most families prefer private secondary education and can pay forit. However, the poor do not often have a choice. Public secondary school places are inshort supply compared to primary school places. (For example, in 1982, in the 87municipalities of the project, some 20 percent of the students graduating from public primaryhad no places in the public secondary school). When access to public education is notavailable, parents must either spend their extremely limited income on private secondaryschooling or their children go without secondary schooling. In 1982, some 14 percent of 5thgrade students dropped out of .. ;. system, a portion of which would no doubt have gone toschool had they had access to public secondary schooling. However, the precise numbers aredifficult to determnine without further research.

1.26 The national government's voucher program, inaugurated in 1991, aims to expandaccess to secondary education by offering vouchers to low-income students to attend privatesecondary schools that have excess classroom capacity. This special program, cofinanced bythe national government, offers municipalities a short-term, cost effective, and efficientoption for expapding access to secondary schooling compared to that of constructing newclassrooms in public schools. However, the voucher program raises several issues to whichthe national government and local authorities will need to give attention in designing the nextcycle of the program. They are: substitution, quality, and sustainability.

1.27 Although the voucher program aims to increase enrollments, it is highly likely that theincreases could turn out to be substantially less than projected due to substitution. Threepossible scenarios exist in the awarding process of the vouchers, of which only one wouldincrease enrollments while the other two would cause a substitution effect. First, enrollmentswould not increase if the students that receive the voucher would have attended a privateschool with or without the vouwler. Second, a shift in enrollments would be caused by thestudents who have a place in public schools, are awarded vouchers, and go to privateschools. Finally, enrollments would increase only if the voucher is given to those studentswho would have not gone to school if the program did not exist. Thus, the targeting ofvouchers to the students most in need would be essential to limit the substitution effect.

1.28 It is essential that recipients of vouchers have access to private schools that offer aneducation equal in quality to that of other public schools or at least not below a minimallyacceptable standard. The acceptable comparative standard which can be used is the averagescores of public schools on the ICFES examination. An additional requirement might be adegree-granting license approved by the education authorities of the municipality ordepartment. Schools which offer only a partial secondary education or where students do nottake ICFES would be required to have an operating license and their teachers would have tohold a minimum standard on the escalaf6n docente. These criteria would need to be appliedin selecting schools participating in the program.

1.29 The slistainability of the voucher program depends upon the commitment of theparticipating municipalities to contribute their share of the total cost of the program.Unfortunately, however, some municipalities such as Santafe de BogotA are not evenfulfilling their financial obligation to co-fund the vouchers with the national government.This threatens the future education of thousands of students attending school on vouchers andplaces the financial burden on the Central Government to pay 100 percent of the costs. Toimprove the prospects of program sustainability, the national governnent should only fund anamount of vouchers which can be paid for by the municipality over time. Ideally,municipalities will begin to invest in the expansion of public secondary school facilities, sothat neither they nor the national government would need to sustain the voucher program toincrease access.

1.30 There is also a lack of investment incentives for private secondary education. Sinceprivate schools are roughly 50 percent of the total of secondary schools, their services play acritical role in meeting the current demand for secondary education. They also have acrucial role to play in expanding access in response to the growing demand for secondaryeducation. While the national and local governments fund public education, and would beexpected to provide cofinancing for the renovation and expansion of public secondary schoolsunder the proposed operation, they are not allowed to cofinance private schools. Privateschools that are well-endowed with solid collateral have relatively little difficulty securingcommercial credit. However, other private schools, perhaps the majority, have greaterdifficulty securing credit. As the national government would like to encourage the expansionof private secondary schools, it will need to identify appropriate incentives for commercialcredit institutions to lend to private institutions. In this way it would help establish a "levelplaying field" for both public and private school expansion. While there are no suchinvestment incentives for private schools, there is one promising option, to extend the currentsystem of guarantees for small businesses to private education. MEN is currently pursuingthis option.

Low Educational Efficiency

1.31 In addition to its low enrollment rates, Colombia's public secondary education suffersfrom unsatisfactory efficiency. Estimated 1991 promotion rates average 74.5 percent (62.2percent in grade 6 to 91.3 percent in grade 11), dropouts average 9.6 percent (4.1 percent ingrade 11 to 13.7 percent in grade 6), and repetition rates average 15.9 percent. A largenumber of incomplete secondary schools contribute to reduce promotion and completionrates. Only 50 percent of 6th grade students achieve grade 11 five years later, and thosewho complete secondary school are primarily from the higher income groups. In both smallmunicipalities and rural areas, secondary education typically does not extend to grade 9.

Unsatisfactory Educational Quality

1.32 The quality of public secondary education in Colombia is unsatisfactory--particularlyin comparison with private secondary education--and has been declining since the early1980s. This unsatisfactory performance is attributed to many factors but is mainly due to:(a) poor student preparation in primary school; (b) inadequate secondary school management;(c) lack of teacher preparedness; (d) lack of textbooks; and (e) shortages of othersupplementary educational materials.

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1.33 Primary School Preparation. The results of Colombia's first national assessment ofprinary education (conducted in the 1990-91 school year) point to very serious studentdeficiencies in reading comprehension and mathematics, as well as in socially accepted normsand values. In response, MEN has developed a comprehensive plan to address thesedeficiencies which will be implemented in 1993 as part of the program of support foruniversal primary edutl ion. As part of this plan, MEN will also need to help equipsecondary schools to assist new students to overcome their primary school learningdeficiencies. This would greatly facilitate the difficult transition students have to make fromprimary to secondary schools and would improve their prospects in secondary education.

1.34 School Management. In the late 1960s, the n-tional government established theRegional Education Fund (FER), by which it imposed significant requirements ondepartments to access funds for education, which included hiring only teachers who passednational qualifying examinations and creating an adequate number of supervisory positions,again to be staffed only by those who receivej national certification. A part of this initiativewas an attempt to transfer more accountability over school administration and financialresources to the local and ultimately school level. While experience * Is gained by schoolprincipals, decentralization of school management responsibilities has been highly variableand difficult to sustain, given policy shifts at the center that worked against using thecapacity that exists at the school level.

1.35 Currently, public school principals have limited authority and resources to managetheir schools. Virtually all important decisions affecting the operations of schools are madeelsewhere. Nonetheless, sample surveys conducted during project preparation indicate someprincipals are having an impact where they have been able to: (a) motivate teachers toprepare and implement institutional development plans, and (b) conduct in-service trainingand other staff development activities to introduce educational innovations in their schools.On the other hand, principals do not receive much in-service training to improve theirmanagement skills. The CEPs have very few, if any, in-service training courses forprincipals and there are only a few other institutions which offer such training specifically forprincipals. In view of the generally recognized importance of improving schoolmanagement, there is need to develop alternatives for the recruitment and training ofprincipals.

1.36 Teachers. The majority of Colombia's approximately 75,000 teachers in publicsecondary schools and the 53,000 in private secondary schools are university educated.Moreover, after obtaining their teaching degrees, most secondary school teachers regularlyattend at least one-service training course during the school year. These courses are offeredby their school principal, a local university, or the departmental CEP, although most of thetraining offered by the CEPs is for primary school teachers. Training is taken to obtain asalary increase, a degree, or for personal interest. However, teachers do not often pursuetraining as part of an overall plan to upgrade the quality of the academic program of theirinstitution. Moreover, rarely is the training offered in response to the identification oftraining needs by the teachers and principals in the schools. To maximize the benefits ofteacher training, school officials and teachers need to better plan their requirements at theschool level in accordance with their school's development objectives. These and othertraining requirements once identified at the school level could be vetted by the municipal or

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departmental secretaries of education (or some other entity) and conducted under contractthrough the CEPs or directly by local universities or other training sources.

1.37 Textbooks. Textbooks are widely available in Colombia and are supplied bynumerous local publishers offering many choices in titles for each course and grade level.Textbooks are also generally of good quality and are based on the curriculum. However,textbook use is limited in public secondary schools: the vast majority of students cannotafford to purchase them owing to their cost and the quantity (usually eight books) required ateach grade level. The majority of students thus go without textbooks or acquire only one ortwo books. In glaring contrast, the students in private schools serving the upper strata allobtain the required textbooks with their tuition. In private schools serving students of themiddle and lower quintiles textbook use is also limited. As textbooks are among the mostcost-effective means to improve learning, the MEN proposes to increase their availability inpublic secondary schools. This would be done by offering municipalities generouscofinancing for purchasing textbooks and assisting them in implementing a textbook loanscheme in their schools. Since the provision of textbooks in public schools will be one oflocal government's new responsibilities under decentralization, textbook loan schemes wouldrequire some form of cost-recovery or other budget provisions to be sustainable.

1.38 Instructional Materials and Equipment. Many of Colombia's secondary schoolslack basic instructional materials and equipment essential for effective teaching and learning.Libraries are extremely limited in their selection or do not exist. Laboratories areunavailable or if available are poorly equipped, in ill-repair, and lack essential consumablesfor use. Moreover, others that have been purchased (e.g. 414 integrated science and 57informatics laboratories from Spain) have been seriously under-utilized for lack of installationand/or inadequate orientation and training of teachers. In addition, most municipalities havenot been investing in instructional materials and equipment for their secondary schools norproviding them with adequate budgets to purchase essential consumables for instructionalpurposes. Few of the smaller municipalities can afford to equip each secondary school withlaboratories and other instructional infrastructure. For these municipalities, it is probablymore efficient to establish Educational Resource Centers to serve the needs of all the teachersand students in the community centrally, rather than attempt to upgrade each institution'sequipment and facilities. Nonetheless, the pros and cons of these centers need to be carefuUyexamined on a case-by-case basis before they are introduced in a municipality.

Weak Managerial and Institutional Capacity

1.39 The education sector has weak managerial and administrative capability to plan andimplement decentralization efficiently and effectively. Its major handicaps are the following:(a) lack of clarity as to the functions, responsibilities, and accountability of the MEN,departments and municipalities and absence of a plan or strategy to implementdecentralization; (b) the limited capacity of education sector personnel to plan and implementeducational programs; and ( ) MEN's lack of capability in carrying out monitoring,evaluation and policy research on the education system.

1.40 Lack of Clear Functions and Responsibilities of Regional and LocalGovernments. The effective implementation of the decentralization of education requiresthat the Government clearly define the functions and responsibilities of MEN, the

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departments, and the municipalities. Good progress has been made towards this objective intwo draft laws now before Congress: the Ley general de educaci6n and the law regulatingArticles 356 and 357 of the Constitution. These laws now need to be adopted, however, inorder to institutionalize the functions and responsibilities assigned to each level ofgovernment. In addition, MEN needs to develop an overall plan or strategy to support thegradual implementation of decentralization in the departments and municipalities. Lastly, therestructuring of MEN, approved by decree in December 1992, needs to be impleniented sothat MEN can direct attention to its new functions, responsibilities, and accountability underdecentralization.

1.41 Shortage of Qualified Education Personnel. While some departmental secretaries ofeducation (e.g., Antioquia and Valle) and municipal secretaries of education (e.g.,Bucamamanga and Peirera) are widely recognized for their technical and administrativecapacity, the majority of Colombia's regional and local educational authorities need to bestrengthened. Since regional and local authorities will be called on to plan and manage anincreasing level of resources for education, there is a widely acknowledged need to buildcapacity in areas such as: educational planning, financial management (especially projectingresource transfers from the national government and programming their use), projectpreparation, project implementation, and monitoring. Some of this training has beenprovided over the years to directores de nucleos and to other officials at the local level.Tlese training initiatives should be built on and adapted to meet new training requirements ofthe departments and municipalities.

1.42 Inadequate Monitoring, Evaluation, and Policy Research in NMEN. Thedecentralization process has enabled MEN to divest itself of many administrative andmanagement tasks which will now be carried out directly by the departments. Consequently,it can now turn its attention to its main functions of data collection, developing policies andnorms, and monitoring and evaluating the performance of the system. In order to performthese functions effectively, MEN will need to: (a) improve the quality and reliability of itseducational statistics which at present are unreliable and lack uniformity; (b) implement itsplans for the establishment of a national examination system to assess student achievementand feedback results to local schools for follow-up; and (c) develop an applied researchprogram to provide inputs for policy, educational norns, and investment programpreparation.

D. Government Sectoral Objectives and Strategy

1.43 The current Govemment has a comprehensive plan for the development of theeducation sector for the period 1991-94, which consists of: (a) achieving universal primaryschool enrollment, massively expanding secondary school enrollment and improving thequality of education at all levels; (b) moving forward with the decentralization andmodernization of the education system; (c) developing financial mechanisms that benefit thepoorest segments of the population and the regions most in need of basic education; (d)promoting competition between public and private education institutions to increaseeducational efficiency and quality; (e) increasing educational investments by regional andlocal govemments; and (f) providing credit to finance higher education as well as to increaseenrollments in public and private education institutions.

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E. Bank Role and Strategy

1.44 The new country strategy for Colombia for FY93-96 places special emphasis onhuman resource development and poverty reduction within an overall agenda of support forprivate sector development, decentralization, and growth with equity. In human resourcedevelopment, the Bank's priorities are to achieve universal coverage and a better quality ofprimary education, expand and improve secondary education, and to build skills and aptitudesin agriculture and industry needed for economic growth. The Bank supports theGovernment's policies and programs to reduce poverty and income disparities witheffectively targeted social outreach programs which enhance equity, efficiency, and servicequality. It also supports the Government's strategy to increase social spending, improveresponsivz,ness to local needs through decentralization, anci to improve efficiency bypromoting private delivery of services and replacing subsidies to service producers withtargeted grants, such as the proposed vouchers for secondary education, to eligiblebeneficiaries.

1.45 Lessons Learned from Previous Bank Involvement. Since 1968, the Bank hasinvested US$150 million in four education projerts. The first two projects helped Colombiaestablish a system of diversified secondary schou,s (IN1M) and were reviewed in OED'sreport Colombia: Sustainability of the First and Second Education Projects (J'rne 1989)and other publications. The review of the first two operations found that the INEM systemwas both costly and inefficient: many graduates failed to enter the labor market, with littlecorrelation between vocational skills obtained and subsequent employment. The third andfourth projects addressed rural primary education. Important lessons from the first andsecond primary education projects include: (a) sufficient managerial capacities should existas a condition for lending; (b) projects should build on existing administrative arrangementsrather than imposing new ones; (c) sector lending should be carefully phased, with a firstoperation of modest size to provide the Borrower with sufficient experience to handlesubsequent operations; and (d) the need to address the issues of educational quality,measurement, evaluation and monitoring.

1.46 The above lessons from previous Bank experience in Colombia have been taken intoaccount in the preparation of the proposed*project and incorporated as follows:

(a) Managerial Capacities. Management capabilities in the education sector are in shortsupply. Both the MEN and the Secretaries of Education in the departments have haddifficulties recruiting and retaining highly qualified managers, and these difficultieswill likely continue. They are due to the low salaries offered to managers in thepublic sector and to the high turnover in managers resulting from the brief tenure ofelected officials. Under these circumstances, the project would: (i) count on the fullsupport and collaboration of the senior educational professionals in MEN to managethe pr 'ect; (ii) supplement the staff in MEN with other professionals from outside theministry; and (iii) involve the educational professionals in the departmental andmunicipal secretaries of education in managing the project at the regional and locallevels.

(b) Existing Administrative Arrangements. These arrangements would be usedwherever possible to implement the project rather than imposing new ones. Thus,

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while a Project Coordination Unit would be created to manage projectimplementation, the unit would be located within the MEN and draw upon MEN'sprofessional staff for assistance. Similarly, the project would work within the contextof existing governmental organizations such as the Social Investment Fund (FIS), theFinancial Development Corporation (FINDETER), and the Colombian Institute ofEducational Credit and Training Abroad (ICETEX) as well as with the departmentaland municipal secretaries of education Where existing administrative arrangementsare very weak, the project would attempt to strengthen them or utilize new ones. Forexample, project procurement specialists would assist municipalities in procuringeducational materials and equipment; greater administrative and financial flexibilitythan exists in other MEN units would expedite project staff travel, direct purchasing,and recruitment of consultants.

(c) Phasing-in Bank Assistance. The proposed operation is quite large for a pilotproject, but still only covers a small percentage of the total needs of Colombia's over1000 municipalities. Assistance is being phased in order to: (i) take account ofMEN's limited management capabilities; (ii) permit MEN and the Bank to assess thefeasibility of the proposed strntegy and approach for assisting other municipalities inthe education sector; and (iii) allow time for the national government to develop andtest new and improved mechanisms, such as the Social Investment Fund, for co-financing assistance to municipalities in the social sectors.

II. THE PROJECT

A. Project Objectives

2.1 The objectives of the project are to support Government's initiatives designed to:(a) implement a new national government strategy of cofinancing investments in educationwith the departments and municipalities; (b) provide incentives to regional and localgovernments to achieve national educational development targets; and (c) support theassumption by m..icipalities of an expanded role in education by building local capacity forthe planning, cofinancing, and execution of investments.

B. Project Description

2.2 The project comprises four main components: (a) increasing coverage by fundinggrants and loans for the expansion and rehabilitation of public secondary school facilities andequipment; (b) expanding access for low-income students through funiding vouchers to attendprivate secondary schools; (c) enhancing the quality of secondary education by fundingSchool Improvement Plans (SIP), principal and teacher training, textbooks, instructionalmaterials and equipment, and related inputs; and (d) institutional strengthening to help thedepartments perform their new roles and responsibilities for the planning, co-financing andmanagement of education services, while helping MEN to focus on its new, more policy-oriented and system monitoring responsibilities under decentralization. The scope of the

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project is limited to 11 of Colombia's 33 departments and territories, and 87 of its over1,000 municipalities 4 (Annex 8).

2.3 Municipal Education Plans. Each municipality which participates in the projectwould prepare a Municipal Education Plan (MEP) that delineates an integrated set ofdevelopment objectives, strategies and investment priorities to improve secondary education.They will use a Municipal Planning Manual developed and pilot-tested du. .ng projectpreparation in the designated municipalities of Pereira, Zipaquira, and Jamundi. The MEPswill also be used to specify the type of sub-projects and amount of assistance needed by themunicipality to achieve its secondary education development objectives. The respectiveDepartnental Secretaries of Education would monitor and assist the municipalities inpreparing their MEPs and sub-projects. Municipal Councils would give final approval to theplans and authorize the required counterpart funding for sub-projects. A departmentalcommittee of the FIS would approve the FIS allocation for the sub-projects in the MEP.

2.4 Conditionality. To obtain assistance under the project, municipalities would berequired to agree to all of the following minimum conditions:

(a) increase student enrollments in secondary schools by at least 7.5 to 10 percent overthree vears, through a combination of measures. These measures could include oneor a combination of the following: rationalizing the use of existing school facilities,expanding or constructing new facilities (with project subsidies and loans); orproviding vouchers to enable students from low-income families to attend privateschools;

(b) purchase (with a project subsidy) essential instructional materials and equipment forpublic schools beginning with a set of textbooks in at least four subjects (math,natural sciences, social sciences and Spanish), which then could be loaned to allstudents for the school year for a small fee;

(c) cause secondary school directors and their staff to prepare and implement plans inorder to increase student achievement and reduce repetition and dropouts during theMEP period. These plans might consist of improving teaching, working with parents,and introducing regular testing of student perfonrance;

(d) undertake responsibility for administration and maintenance of school facilities inaccordance with Law 60 (1993) and its regulations within the three year period of theMEP; and

(e) support the training of administrative and technical staff of municipalities and sclhoolsin educational planning, project preparation and implementation, and sectormanagement and administration.

2.5 A municipality would also have to comply with the following conditions ofparticipation:

4. The reference to municipalities in this document includes the Distrito Capital of Santafe de Bogotaand the Distrito 7uristico y Cultural of Santa Marta and Cartagena.

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(a) if seeking loans through PINDETER, meet comparable financial soundness and fiscalperformance criteria employed by FINDETER in other municipal operations;

(b) appoint a municipal committee consisting of, inter alia, the Secretary of Education,the Jefels de Nikeo, members of the Municipal Council, principals and parents, toassist in preparing the municipal education plan and assign a senior official in themunicipality (e.g. Secretary of Education) to serve as project coordinator; and

(c) establish and maintain a system of accounts, following acceptable accountingpractices, for any project resources which might be transferred to the municipality.

Components

2.6 The project consists of four major components: (a) increasing coverage; (b)increasing access; (c) improving quality; Rnd (d) strengthening the management andadministration of educational services.

Increasing Coverage (US$62.9 million) (Annex 4)

2.7 This component provides support for the rehabilitation, upgrading, and expansion ofpublic seconidary school facilities. Funding for rehabilitation aims to raise the quality ofschool facilities to acceptable standards in order to: (a) improve the learning environment inschools, and (b) encourage municipalities to take over the responsibilities from national andregional authorities for their operations and maintenance. Funding for upgrading andexpansion would optimize the use of physical infrastructure and enable municipalities to meetthe growing demand for secondary education. Surveys of the 1,250 public secondary schoolsconducted during project preparation in the 87 pilot municipalities revealed thatapproximately 50 percent of their facilities, equivalent to some 750,000 student places, werein need of some kind of rehabilitation. Of the total, 12 percent would be adaptations and 35percent repairs. Additionally, it was estimated that some 3 percent of school places wouldrequire substitution and 50,000 new ones constructed for additional enrollments between1991-97.

2.8 The US$62.9 million budgeted for this component would cover an estimated 60percent of the total requirements of the 87 municipalities. Of the total budgeted, grants andloans in the amount of US$11.4 million would be earmarked for rehabilitation, US$24.6million for upgrading existing facilities to better standards, and US$18.6 million for newconstruction. The budgeted estimates would enable the municipalities to accommodateprojected increases in enrollments to about the end of the decade. Grants and loans totallingUS$5.5 for furniture and US$2.8 million for architectural fees are also budgeted.

2.9 Grants for civil works would be provided by the FIS through FINDETER (para.4.4). FIS would provide grants for 80 percent of sub-project costs to municipalities to givethem a strong incentive to rehabilitate their school facilities and take over responsibilities fortheir operations and maintenance. The project would provide through FINDETER smallgrants to cover the costs of technical assistance and architectural fees for sub-project

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preparation. Municipalities would be expected to pay 20 percent of the costs of sub-projectsand technical assistance from their own resources.

2.10 For all civil works, in order to encourage and increase the very modest municipalinvestments in education, FINDETER would also administer a line of credit under which itwould rediscount subloans to municipal entities (para. 3.5). The project would provide a 30percent subsidy of sub-project costs as an incentive for municipal investments in expandingschool places. Municipalities would be required to fund a minimum of 20 percent of totalproject costs, leaving some 50 percent for financing through other financial intermediariesand FINDETER.

2.11 To qualify for grants and loans for school rehabilitation and new constructionrespectively, municipalities would be required to ratify their agreement to assumeresponsibilities from the National Government for constructing and maintaining secondaryschool facilities as provided under Law 60 of 1993. While some municipalities haveassumed these responsibilities, most have not. Prior to negotiations, Government submittedto the Bank for review and agreement, the proposed legal procedures to be followed by thenational and departmental governments in transferring responsibility for secondary schoolconstruction and maintenance to the municipalities (para. 6.1 (a)). During negotiations,Government confirmed that these procedures would be incorporated into the regulations forLaw 60 which would be issued by March 1994; in the interim, MEN would devise a plan toprovide training and/or technical assistance to the departments to facilitate their working withthe municipalities in implementing these regulations (para. 6.2 (a)).

Expanding Access (US$8.3 million) (Annex 5)

2 12 In municipalities where low-income students do not have access to public secondaryschools, the project would fund the award of vouchers to students to enable them to gainaccess to selected private schools that have excess capacity. Project funding wouldsupplement the Government's existing voucher program which has already awarded 72,000vouchers since 1992 and will fund an additional 25,000 annually in the next several years.The number of vouchers being provided by the Government could be more than are actuallyneeded in the 87 municipalities as some 4Q,000 to 50,000 students who annually completepublic primary school have aleady been transferring to private secondary schools and payingprivate school tuition costs. On the other hand, there are some 10 percent to 15 percent of5th grade students, (35,000 to 40,000 annually) who are dropping out of the system afterprimary school, some of whom might be encouraged to continue schooling, if they can beidentified and provided vouchers.

2.13 The project would, therefore, supplement the Government's 25,000 vouchers--whichare for the country as a whole--by funding not more than 5,500 for the 87 municipalities inthe project. With this total number of vouchers, local governments could make good inroadson reducing dropouts. This amount is equivalent to some 55,000 vouchers during the period1994-97, based on a projected 5 percent average dropout rate among voucher recipients.Vouchers would be fund-d at an average annual cost of $100,000 pesos (US$143) pervoucher year at 1993 prices. No voucher would exceed the average cost.

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2.14 All 5,500 vouchers would be distributed among the 87 pilot municipalities accordingto demand, with an upper limit determined for each municipality according to the totalnumber of vouchers available annually. Under the project, eacti municipality would berequired to program its requirements for vouchers within the framework of their secondaryeducation plans and to verify both the demand and the availability of places in privatesecondary schools. Since low-income students are more likely to drop out of the educationsystem for financial reasons, the voucher program will have a significant impact onincreasing access and enrollments at the secondary level.

2.15 The voucher program would have strict eligibility requirements for both students andsecondary schools. The main requirements for students are that: (a) they come from thelowest two socio-economic strata; (b) have graduated from a public school or a non-profitprivate school; and (c) are not more than 15 years old. The private secondary schools arerequired to provide evidence of their ability to offer an acceptable standard of educationevidenced by their having: (a) a bachillerato degree-granting license (licencia de aprobaci6n)issued by the Secretary of Education; and (b) average test scores on the ICFES examinationfor the previous two years that are at least equal to the average public and private schoolscores (excluding test scores of the "elite" private schools) in the municipality. New privateschools not having the above qualifications would be required to provide evidence of having:(a) an operating license (licencia defuncionamiento); (b) a teaching staff which has beengranted permission by the Secretary of Education to teach secondary school; and (c) adequateeducational and health facilities as detennined by the Secretary of Education.

2.16 The MEN would sign agreements with each participating municipality setting forth theterms and conditions of the fellowships and the financial and administrative arrangements.Municipalities would determine the number of vouchers required, certify that private sclhoolsmeet the requirements for participation, and jointly monitor the progress of the program withICETEX. Upon approval of the MEP, municipalities would work out execution arrange-ments for the voucher sub-project with ICETEX. Prior to negotiations, MEN submitted tothe Bank for review and approval, a manual setting forth the policies and administrativeprocedures to be used in managing the voucher program, and in particula-, and theprocedures to be used by ICETEX and the municipalities for assessing qualifications olschools (para. 6.1 (b)). During negotiations, it was agreed that the draft manual on thepolicies and administrative procedures to be used in the management of the voucher programwould be submitted to the Bank for final review and approval and that relevant sectionswould be incorporated into the project operations manual (para. 6.2 (b)).

Educational Quality Enhancement (US$65.7 million) (Annex 6)

2.17 School Improvement Plan. The project would fund a variety of interventions toimprove the quality of instruction and student achievement levels in public schools. In orderto plan these interventions, municipalities would invite each of their secondary schoolprincipals and teachers to prepare a School Improvement Plan (SIP) for their schools. Thepurpose of the SIP is to encourage each school to diagnose itself as an educational institution,define institutional goals to improve quality, and prepare a plan of action to achieve thosegoals, including budget and funding. Further, it aims to promote the adoption of certaincommon characteristics of effective schools such as: (a) a clear vision of the goals andobjectives they wanted to achieve; (b) a principal who provided strong leadership; (c) well

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defined internal organization and a disciplined environment conductive to leaming, (d) a staffdevelopment program and feedback to teachers on their performance; (e) clear standards forthe students; and (f) a school managed budget that allowed the school principal to procureessential instructional and managerial resources.

2.18 Each school would receive US$6 per enrolled student annually for an initial two-yearperiod in support of their SIP. The funds would be administered by the school and wouldmainly be used for training of school principals and teachers, but could be used for othereducational inputs not included in the MEP. Items eligible and ineligible for funding wouldbe Licluded in the SIP operational manual. Some 1,250 public secondary schools arepotential beneficiaries, although the ultimate number would depend upon how many schoolsprepare SIPs as part of the municipal education planning process. SIPs would be approvedby the same school committee managing the school's Fondo Docente and the administrationand accounting of the funds would be similar. Each school's Fondo Docente would beexpected to provide at least five percent cofinancing for the SIP. Funds are provided in theproject to renew support for a SIP for an additional two years, subject to a favorableevaluation after the first two years.

2.19 Evaluation of SIPs. The evaluation sub-component of the project includes supportfor evaluation studies to assess both the processes and impact of the inputs funded under theSIPs. For example, the studies would assess the quality of SIPs, the relevance of theirinstitutional development strategies, the use of the manual; the effectiveness of in-servicetraining on teaching practice, the usefulness of training provided to principals and whetheradministrative practice had improved as a result. However, inost importantly the evaluationswould focus on the SIP's impact on the indicators of educational quality, internal efficiencyand the personal and social development of students in each school.

2.20 Quality Improvement Inputs. Project inputs to improve quality would consist of thefollowing:

(a) In-service Training for Teachers and School Managers. Funding would beprovided in the SIP to cover the costs of in-service training for secondary schoolteachers and school managers (mainly principals and vice principals) in theparticipating municipalities. The precise training requirements for the teachers ineach school would be determined during the preparation of School Improvement Plansor Municipal Education Plans. However, on the basis of a preliminary identificationof training needs of teachers and principals carried out during project preparation, theproject would likely fund in-service training of teachers geared to: (i) increase theirfamiliarization with the curricula; (ii) update their knowledge in fields ofspecialization; (iii) develop appropriate values and attitudes, self-esteem and skills inworking with the community; (iv) equip them with research methods; and (v) greaterknowledge of regional education needs. Principal training would focus on leadership,decision-making, and strategic planning. In-service training for teachers andprincipals would be provided locally; teachers would be provided training by theprincipals or attend courses held by local universities and training institutionsc6uraciVAJ' by lie CEPs. Principals would also attend training courses offered bylocal universities or selected training centers which specialize in training forprincipals. MEN is preparing an inventory of professional in-service training

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throughout the country to help teachers and principals identify suitable course for theirprofessional development. Where there is a strong demand from teachers orprincipals for particular courses which are not being offered, MEN would try toencourage universities to offer them by supporting the preparation of a course designand/or subsidizing the initial instructional costs. This activity would be carried out inclose collaboration with the CEPs in each department.

(b) Textbooks. Funding would be provided for sub-projects which enable municipalitiesto purchase textbooks for their secondary schools. The schools would in turn lend thebooks to students for use during the school year. Students would be responsible forreturning books in good condition at the end of the school year so they can bereissued the following school year. The project would encourage municipalities toadopt a cost-recovery scheme for textbook rentals to cover the costs of replacements,which are estimated to be required every three years. The textbooks procured wouldbe selected by the municipality with inputs provided by the teachers. Municipalitieswould be encouraged by MEN to standardize textbooks in use in each school tofacilitate purchase, distribution and replacement. The project would make availablefunds for the purchase of about 4.2 million textbooks, of which 3.3 million would betextbooks for grades 6 to 9, and 950,000 for grades 10 and I l. It would recommendthat municipalities purchase, if affordable, four texts per student in each grade, out ofthe average of eight required. The recommended texts would cover math, language,science and social studies. Teachers' manuals might also be funded. Procurement4rangements for textbooks are described in Annex 6.

(c Other Instructional Materials and Equipment. The project would fund in the MEPa wide range of curriculum-specific, high quality, and reasonably-priced instructionalmaterials and equipment for public secondary schools and participating municipalities.The materials and equipment to be provided would be that recommended by MEN asfulfilling the basic minimum requirements for each school's instructional programs.The materials and equipment would form part of each school's Educational ResourceCenter (CREP) and include: selected supplementary textbooks various teaching aides,audio-visual and printed instructional material for teachers, and equipment. Thesematerials and equipment were preliminarily identified by MEN during projectpreparation. A final list of materials and equipment with specifications would beprepared in the first year of project implementation by MEN with the assistance of theInstituto Nacional de Normas Tecnicas (ICONTEC). These items would be includedin an Instructional Materials and Equipment Catalogue similar to the one fortextbooks and offered to municipalities for incorporation in their MEP. MunicipalResource Centers (CREM) would also be funded where it is both cost-effective andfeasible for a group of schools to share libraries, laboratory facilities and expensiveinstructional equipment rather than for each to have their own. The experience withCREMs has been mixed, with both successes and failures. Consequently special carewould be taken by MEN to ensure that municipalities are committed to fund theoperations and maintenance of CREMs and that they also enjoy community support.

Management and Institutional Strengthening (US$13. I miiiion) (Annex 7)

2.21 Department and Municipal Strengthening. Management and institutionalstrengthening would be supported in the departments and municipalities based on the

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adoption of a plan being prepared by MEN for implementing the decentralization ofeducation. In the initial years of project implementation, it would: (a) support the processof municipalization of education by encouraging municipalities to take on the administrativeresponsibilities for paying teachers salaries, constructing and maintaining school facilities,and most importantly, investing in the expansion and improvement of the quality of publiceducation; and, (b) strengthen the role of municipalities in educational planning, projectpreparation and project management. In the latter years, and depending upon the progressachieved in the initial years of project implementation, it would help improve theadministration and financial management of education.

2.22 To support the process of municipalization of education, the project is offeringmunicipalities financial incentives in the form of sub-project financing, if they voluntarilytake on the responsibility from the national Government for the administration andmaintenance of facilities for secondary education. Secondly, it is promoting educationalplanning by municipalities and requiring that MEPs provide the rationale and framework forsub-projects in support of secondary education. Thirdly, the Departmental Secretaries ofEducation, with the assistance of the PCU, would provide training and orientation ineducation planning for staff in the departments and municipalities as a prelude to thepreparation of municipal plans and sub-projects for project financing. Training would focuson the use of the project's planning manuals and data formats. Lastly, technical assistancewould also be offered to the departmental secretaries of education and municipalities inprojecting their resources and expenditures in the social sector and in education, inparticular. These projections would be made utilizing a model devek,ped during projectpreparation. Training would be provided for an estimated 120 regionel and local officialsduring the life of the project. Prior to negotiations, the MEN submittAd for Bank's reviewits proposed plan for implementing the decentralization of education in 1993-95 (para. 6.1(c)). During negotiations MEN agreed to revise and re-submit for Bank review by March1994, its proposed plan. The revised plan would include a strategy with targets and actionswhich would be taken jointly with other agencies for implementing the decentralization ofeducation (para. 6.2 (c)).

2.23 Educational Statistics. The project would help improve the quality and reliability ofeducational statistics. This would be achieved through support of workshops organized byMEN's Statistical Division for the orientation and training of technicians in departmental andmunicipal planning and statistics offices. Training would focus on data collection andprocessing of educational statistics on coverage, quality and enrollment. It also would fundthe production and distribution of manuals for data collection and processing and thepurchase of computer hardware and software for MEN and the departments andmunicipalities. MEN's own professional staff would also receive training in specialized datamanagement and processing.

2.24 National Achievement Assessments. The project would assist MEN in conductingnational assessments of student achievement in math and reading at the secondary schoollevel, analyzing these assessments, and feeding back the results to local schools. It wouldfund national assessments in 1994 and 1997 covering an estimated 28,000 students in grades7 and 9 from public and private schools through out the country. The assessments would becarried out under contract by the SNP and local consultants. The results would be analyzedby MEN and disseminated to school officials for information and follow-up. MEN would

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also develop a proposed strategy for addressing learning deficiencies based on assessments.The project would also help assess student achievement in science by funding Colombia'sparticipation in the Third International Mathematics and Science Study being conducted bythe International Association for the Evaluation of Educational Achievement (IAEA).

2.25 Studies and Evaluation Research. Lastly, the project would support MEN, asrequired, in conducting policy and evaluation research on: (a) the demand for secondaryeducation in rual areas; (b) the employment and income earning experiences of secondaryschool graduates and SENA apprentices; (c) values, attitudes and expectations of secondaryschool graduates; (d) evaluation of different models of secondary education in rural areas;and (e) case studies of effective secondary schools.

2.26 Evaluation research would focus on the impact of the project and cover two maintopics. One study would evaluate the effectiveness of the voucher program in increasingsecondary school enrollments of students from low-income strata. It would also assessstudent achievement in a sample of those private schools where vouchers are used with acomparable sample of public schools in order to determine the quality of education offeredby such private schools. The other study would assess the impact of improvements in thequality and quantity of instructional inputs provided under the project on student achievementin secondary schools. The evaluation research studies would be carried out under contractby local research groups and guided by a small project research committee established byMEN.

Selection Criteria for Departments and Municipalities Participating in the Project

2.27 The departments and municipalities included in this pilot project were selectedaccording to the following criteria: (a) departments which in the view of DNP possess thenecessary minimum administrative capacity to manage Central Government resourcetransfers; and (b) the municipalities which include capital cities of each department and thosemunicipalities with at least 80 percent net primary education enrollment, within 50 kilometersin closest geographic proximity, having at least 10,000 people and three secondary schools.In the aggregate, the population of the participating municipalities is approximately 45percent of the total population of Colombia and is categorized as follows:

Population No. Municipalities

500,000+ 5100,000 to 500,000 1450,000 to 100,000 1120,000 to 50,000 3320,000- 24

Total 87

Secondary school enrollments in these municipalities total 1.5 million students, and areevenly divided between public and private schools. However, there are only some 1,250public schools compared to 2,125 private schools in these municipalities. Basic informationon the departments and municipalities participating in the project appears in Annex 8.

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2.28 The MEN would annually review the list of pilot municipalities. In the event thatsome of these municipalities for some reason might not be able to participate in the project,they could be replaced by others who have expressed a strong interest in participating.Newly selected municipalites would be required to fill the above-noted criteria with the soleexception that new municipalities could be located: (a) within a radius of 100 kilometers ofthe capital city rather than the original 50 kiBmeter limit in the first group of departments;and (b) in sub-systems of capital cities and surrounding municipalities in new departments.

2.29 The large metropolitan areas such as Santaf6 de Bogota, Cartagena, and Santa Martaare considered as a municipality, even though they have numerous smaller municipaladministrative divisions within their boundaries (alcaldfas). For example, Santafe de Bogotahas 20 akaldfas menores or localidades. Since these alcaldfas are dependent districtcouncils municipal councils and other bodies, including the district secretaries of education,they will be deaIt with in the project through the mayors and secretaries of districts.

[M. PROJECT COST AND FINANCING PLAN

A. Project Cost

3.1 The total cost of the project is estimated at US$150 million equivalent, net of taxesand duties. Costs are based on estimated prices at November 1992. The total foreignexchange cost is estimated at US$40.0 million, or 26.5 percent of the total cost. Table 3.1summarizes the estimated project costs by component. Detailed project costs are shown inAnnex 1)0.

Table 3.1: Costs by Component

% Foreign % TotalLocal Foreign Total Exchange Base Cost------------------------US$ million ---------------------------

Increasing Coverage 37.5 15.7 53.2 29.3 40.2Expanding Access 7.5 0.0 7.5 0.0 5.7Quality Enhancement 42.8 16.7 59.5 28.0 45.0Management

Strengthening 9.4 2.5 11.9 21.0 9.0

Base Costs 97.2 34.8 132.0 26.3Physical Contingencies 1.9 0.8 2.7 29.6 2.0Price Contingencies 11.3 4.4 15.7 28.0 11.8

Total Project Costs 2' 110.4 40.0 150.4 26.5 113.7

*' (Totals may not add due to rounding)

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Contingency Allowance-

3.2 Physical contingencies amount to 5 percent of base costs for civil works and furniture.Price contingencies for foreign costs are based on a projected intemnational inflation rate of3.1 percent over the fife of the project. Local cost price contingencies, adjusted forprojected changes in the exchange rate, are 24 percent for 1993, 16 percent for 1994, 22percent for 1995, 20 percent for 1996, 18 percent for 1997, 16 percent for 1998 and 10percent thereafter.

B. Financing Plan

3.3 Project Financing. The proposed project would be financed by a Bank loan ofUS$90 million or 60 percent of total project cost. Foreign exchange expenditures areestimated at US$40.0 million equivalent. The Bank loan will cover 100 percent of theseforeign expenditures and 45 percent of estimated local costs. National and local governmentsin Colombia would finance the remaining US$60 million. Table 6 of Annex 10 provides abreakdown of the allocation of loan proceeds.

3.4 Cost-Sharing Formula. The initial cost-sharing formula for all sub-projects, with theexception of school construction, would consist of the central government providing 80per-cent of the costs and' municipalities 20 percent. After three years, the NationalGovernment's shaxe couild be reduced to 60 percent and the municipalities' share increased to40 percent. However, the implementation of this shift in the cost-sharing formula woulddepend upon whether or not municipalities receive the increases in the level of resources forsocial development projected under pending legislation. During negotiations, Governmentsubmitted the formula it proposes to use for transferring national funds for socialdevelopment situado fiscal to local governments for review by the Bank (p~ara. 6.2 (d)).

3.5 Credit Line Management and Terms. The line of credit for school construction tobe adminib,ered by FINDETER would operate as follows: (a) departmental and municipalentities would be eligible; (b) financial intermediaries eligible would be those appraised byFINDETER, using criteria and methods satisfactory to the Bank, as being creditworthy, ableto assess municipal credit risk, and havingappropriate financial controls especially withrespect to portfolio performnance; (c) FINDETER would only finance sub-projects meetingtheir financial and technical criteria. These criteria would be incorporated in FINDETER' soperational manual and Regulations Statement (Re glamento de Credito), which were reviewedduiing appraisal; (d) FINDETER would adopt as required its operational manual formanagement of loans to be made in the education sector; and (e) FINDETER has alreadyprepared an Instructivo para Presentaci6n de Proyectos de Educaci6n, approved by the Bank,to guide municipalities in preparing education sector investment projects. Each sub-borrowerwould be required to provide equity contributions of at least 20 percent of total costs for sub-projects approved by FINDETER.

3.6 FINDETER will rediscount the credits at a variable interest rate pegged to the marketdeposit rate (DTF). Maturity and grace periods for subloan amortization would be up to 12years and up to 2 years respectively. FINDETER would keep its rediscount rate at no lessthan DTF plus 5 percentage points (DTF+5 %). Intermediaries would assume the credit

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risk, and charge a spread determined competitively, up to the interest rate ceiling set by theMonetary Board.

Project Costing and Financial Feasibility

3.7 Three main assumptions underlie the costing of the project: (a) not all 87municipalities are going to want to participate in the project, and very likely only about halfthe number will ultimately prepare suitable plans for project support; (b) not allmunicipalities would be able to cover the counterpart costs required for participation; and (c)the MEN would have serious constraints in implementing a large national program withoutfirst acquiring experience in executing a pilot project.

3.8 To determine the financial feasibility of this project for the municipalities, two majorissues were examined during project preparation: (a) whether or not the total amount of theproposed transfers under the situadoffiscal and municipal transfers would adequately covercurrent departmental and municipal operational expenditures in education; and (b) whether ornot the level of the proposed transfers would be sufficient to cover projected investment andoperational costs in education. The research was carried out in 11 municipalities. Itanalyzed each municipality's educational costs and educational funding, and projected thesevalues to the year 1999 under pessimistic, neutral, and optimistic scenarios. It was foundthat educational costs depend mostly on teacher-student ratios and teacher salaries. While inseven municipalities transfers were considered to be adequate under the neutral scenario tocover operating requirements for projected increases in enrollments and for continuedpurchases of instructional materials, in four municipalities, high teacher-student ratios causeprojected educational spending to exceed projected available educational funding by as muchas 50 percent. The analysis suggests that these mnunicipalities and others which might be insimilar circumstances would very likely not participate in the project because they would beunable to provide the required amounts of counterpart and recurrent cost financing.

3.9 Total recurrent costs to municipalities for the operations and maintenance ofequipment, furniture, and buildings furnished under the project are roughly estimated to beUS$1.7 for the period of implementation. Further recurrent costs would accrue tomunicipalities for annually replacing their textbooks after approximately the third year ofoperation of their textbook schemes. These and other costs will be estimated in each MEP toenable municipalities to assess tsheir capacity to participate in the project and to sustain futureinvestments.

IV. IMPLEMENTATION, PROCUREMENT, DISBURSEMENT,AUDITING, MONITORING AND SUPERVISION

A. Project Management

4.1 Management Structure (Annex 9). MEN would be responsible for overall projectplanning and execution. The Vice-Minister of Education would be directly responsible forall project operations and would report to the Minister of Education. A Project CoordinationUnit (PCU) reporting directly to the Vice-Minister, would be charged with the day to day

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management of the project. The PCU would consist of a Coordinator and a te-am of 13professionals drawn from MEN's own permanent staff and outside consultants. The PCUwould have the responsibilities for project planning and promotion, technical support andsupervision, and monitoring and evaluation of project execution and impact. Part-timesupplementary support for project management would be provided to the PCU by staff inMEN's Directorate for General Education and Directorate for Educational Planning. Theproject would finance the PCU's operating expenses (roughly estimated at US$1.7 million),including the services of a fiduciary agent to assist MEN in contracting and paying for goodsand services required by the PCU. Prior to negotiations, the Government: (a) submitted thefinal staffing plan for the PCU for the Bank's approval; (b) recruited a Project Coordinatorwith tenns of reference and qualifications approved by the Bank; and (c) appointed afiduciary agent for the activities of the PCU (para. 6.1 (d)). During negotiations, theGovernment agreed that MEN would issue a resolution establishing the project CoordinationUnit by December 31, 1993. The unit would be established on the basis of the documentsubmitted to the Bank prior to negotiations and in accordance with agreements reached atnegotiations (para. 6.2 (e)), and that MEN would immediately begin implementing theagreement signed with a fiduciary agent to provide services to the Coordination Unit. It wasfurther agreed that MEN will maintain such services for the duration of projectimplementation (para. 6.2 (f)). The employment of the three senior managers for the PCU,with terms of reference and qualifications satisfactory to the Bank, would be a condition ofloan effectiveness (para. 6.3 (a)).

4.2 Project Management Responsibilities. The departments and municipalities wouldeach play important roles in project management. The Departmental Secretaries ofEducation would be mobilized by MEN to provide coordination and technical support forproject activities in their departments. To this end, MEN would sign formnal agreements withthe Governors of each department, by which the Departmental Secretary of Education wouldundertake to: (a) secure the active participation in the project by the pilot municipalities intheir department; (b) provide technical assistance to municipalities in preparing their MEPand related sub-projects; (c) allocate resources for MEPs; (d) support project execution at themunicipal level; and (e) monitor project implementation. The mayors of participatingmunicipalities would also sign a formnal agreement with the Governor under which theywould confirm their commitment to the golls of the project and accept responsibilities forproject execution and monitoring. Prior to negotiations, the Government submitted to theBank: (a) copies of at least three agreements signed between the MEN and the Governors,and at least one agreement between each such Governors and a Mayor regarding theirparticipation in and implementation of the proposed project, and (b) a draft operationsmanual of the project (para. 6.1 (e)). During negotiations, agreement was reached with theGovernment that future legal agreements signed between the MEN and the participatingdepartments and between the departments and the municipalities would refer to theconditionality for project funding as stated in the SAR (para. 2.4) and municipal and districteducation plans would be expected to contain relevant targets and plans to sustain increasesin educational expenditures resulting from their investments (para. 6.2 (g)). Bank approvalof the work program for the first year of project implementation would be a condition ofloan effectiveness (para. 6.3 (b)).

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4.3 Flnancing Flows and Control. Project funding would be managed according to theadministrative responsibilities assigned to the FIS, MEN and FINDETER (Annex I1).Loan disbursements would be made to the Ministry of Finance (MHCP) which in turn woulddisburse them as follows:

4.4 FIS. All resources for the co-financing of sub-projects for school rehabilitation,vouchers, school improvement plans, textbooks and other instructional materials andequipment would be channelled through the newly established PIS, which is expected to beoperational by January 1, 1994. The law establishing the PIS mandates the use of fiduciaryagent/s. Fiduciaries, both private and public, are commonly used in Colombia to administerfunds. They are regulated by the Banking Superintendency under legislation and Presidentialdecrees uating from the 1920s to the present. The Superintendency ensures that feesconform with established limits (for fiduciaries operating non-income earning funds such asthose to be managed through the FIS, current fees for service range between 2 and 3 percentof the value of the funds managed), and that fiduciary arrangements generally maintaintransparency for users and the public. The FIS would enter into service contracts with thefiduciaries, and the FIS and the departments would enter into sub-project agreements with theparticipating municipalities. The fiduciaries would assist municipalities, as required, infinalizing sub-projects arranging for procurement of goods and services and payingcontractors and providers of such goods and services. The fees charged by the fiduciarieswould be paid by the FIS and the municipalities, through their contribution to sub-projectfinancing, which would be deposited in advance in a local FIS account. The PIS would bedirectly responsible for monitoring the flow of funds and for auditing finances. Uponsigning the contracts for goods and services, copies would be submitted to the relevantfiduciary which would normally pay contractors an amount equal to 30 percent of the price.Prior to subsequent disbursements, works supervisors and auditors, retained by the FIS andreporting to the FIS fiduciaries, would confirmn that the contractors had performed their sideof the agreement adequiately. As conditions of loan effectiveness, FIS would have ratifiedthe project agreement, executed and delivered subsidiary agreements, and would be fullyoperational for implementing the project (para. 6.3 (c)); and FIS would have furnished to theBank standard draft contracts with fiduciaries and sub-project executors (para. 6.3 (d)).

4.5 FINDETER. In addition to acting as a fiduciary agent for the FIS for the funding ofschool rehabilitation, FINDETER would administer the credit line for the construction ofnew school facilities and associated furniture. Funds for the credit line would be channelledto FINDETER and disbursed through financial intermediaries to the municipalities inaccordance with FINDETER's standard procedures. Following approval of the MEP,FINDETER would assist municipalities in completing the design of sub-projects, in tenderingcivil works contracts, and in supervising their completion. Assistance would normally beprovided through FINDETER's regional offices. FINDETER's operating procedures wouldbe used in approving and executing these sub-components. MEN's norms and specificationsfor school rehabilitation and construction, which were reviewed during project preparation,were found acceptable and will be followed by FINDETER. FINDEIER would carry outtimely physical and financial monitoring of its activities under the project, within themonitoring framework provided by the PCU. As conditions of loan effectiveness,FINDETER would have ratified the project agreement, executed and delivered subsidiary andtrust agreements, and incorporated technical and financial criteria for education sub-projects

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satisfactory to the Bank in its operational manual (para. 6.3 (e)); and FINDETER wouldhave furnished to the Bank standard draft contracts for execution of sub-projects(para. 6.3 (f)).

4.6 MEN. Financing for the centrally-financed components of the project (managementand institutional strengthening for both MEN and the departments and municipalities, as wellas studies and evaluation research) would flow from the MHCP to the MEN. Duringnegotiations, the Goverment and the Bank agreed to review project operationalarrangements and financial flows arrangements annually and make adjustments, if needed.The Government further agreed to increase the amount of technical assistance provided to thedepartments and municipalities, if found necessary to improve project implementation(para. 6.2 (h)).

B. Implemnentation Schedule

Readiness for Implementation

4.7 The Government will need to take several steps before and after negotiations to readythe project for implementation. The first and most important steps pertain to the staffing andadministrative arrangements for the project. The PCU needs to be established and madeoperational; it, in turn, needs to work out agreements with the Secretaries of Education in thedepartments on their work programs and to organize and convene orientation and trainingcourses on municipal planning and sub-project preparation. Equally important all projectmanuals need to be completed, in particular, the operations manual so that municipal officialsand education professionals are able to begin work on municipal plans and sub-projectpreparation. During negotiations, the Government agreed that DNP, MEN, and FINDETERwould prepare model sub-projects to guide municipalities in implementing their MEP. Thesemodels would be prepared by March 1994 and submitted to the Bank for review, after whichthey will be incorporated in the MEP manual (para. 6.2 (i)). Third, sample biddingdocuments need to be completed for the recruitment of fiduciary agents and steps taken todevelop a short list of agencies; equally important, standard bidding documents need to bedeveloped for the procurement of goods and services by municipalities. Fourth, the FISmust be made operational and given clear policies and procedures for administering funds forth^ co-financing of projects. Monitoring systems for all project components also need to bedesigned and made operational by the PCU in collaboration with other agencies associatedwith project implementation. As a condition of loan effectiveness, operations manuals forthe project as well as for the FIS, ICETEX and FINDETER, satisfactory to the Bank, wouldhave been issued and submitted to the Bank for review and approval (para. 6.3 (g)).

4.8 The strategy for project implementation would provide for the phasing in of projectoperations at both the departmental and municipal levels. The pace at which operationswould expand would be determined by both the demand for project assistance from thedepartments and municipalities and the capacity of the PCU team to mobilize projectresources in response to this demand. During project preparation, the departments ofAntioquia, Valle, Risaralda and the municipality of Pereira, Jamundi and Zipaquira wereamong the first to express a strong interest in participating in the project; consequently, the

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implementation schedule assigns a high priority to these departments and municipalities. Thefinal schedule would be reviewed and completed following the project launch workshop.

C. Procurement

4.9 The bulk of procurement under the project, summarized in Table 4.3, would becarried out by the municipalities themselves in accordance with the Bank's guidelines.Certain discrepancies between national legislation and the Bank's guidelines for ICB andpractices for LCB would be resolved by stipulating the cerresponding provisions in the LoanAgreement. Assigning responsibility for procurement to municipalities is consistent with theGovenmment's decentralization policy objectives. It is also a practical approach for the 87municipalities to follow in procuring the civil works and goods and services to be funded inthe various sub-projects included in their MEN-s. Procuring civil works and other sub-projectinputs will challenge the administrative and management capacity of the municipalities.However, many of the participating municipalities have successfully managed localprocurement of civil works, particularly in complex infrastructure projects financed byFINDETER. In contrast, the procurement of textbooks, instructional materials andequipment will be a new responsibility for many of the municipalities, for whichmunicipalities are expected to need some administrative and technical assistance.

4.10 The project will provide participating municipalities with the required technical andadministrative assistance in procurement. This will be done through a combination offiduciary agents, and procurement advisor/s based in the PCU. Fiduciary agents will, interalia, help municipalities carry out local shopping and pay suppliers; the procurementadvisor/s will assist municipalities in organizing tendering, based on standard biddingdocuments developed for the project. In addition, the PCU procurement specialist/s, wouldoffer training to municipalities in procurement in an effort to expedite projectimplementation. Among their tasks one would be to conduct short-term training workshopson procurement for municipal officials. As a condition of effectiveness, evidence beprovided of the appointment of a procurement advisor/s for the project with terms ofreference and qualifications satisfactory to the Bank (para. 6.3 (h)).

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Table 4.3: SUMMARY OF PROPOSED PROCUREMENTARRANGEMENTS

(US$ million equivalent)

Procurement Method

Project Element ICB LCB Other N.B.F. TotalCost

Civil Works/Fees - 43.8 13.6 - 57.4(26.3) (8.1) (34.4)

Furniture - 3.1 2.2 5.3(1.8) (1.4) (3.2)

Equipment, 7.2 6.8 12.2 - 26.2Instructional (4.3) (4.1) (7.3) (15.7)Materials andReference Texts

Textbooks 23.6 - 23.6(14.2) (14.2)

Studies - - 5.3 - 5.3(3.2) (3.2)

Technical - - 2.3 - 2.3Assistance (1.4) (1.4)

Vouchers - - 8.3 - 8.3(5.0) (5.0)

School Improvement - - 16.1 - 16.1Plans (9.6) (9.6)

Project Unit - - 1.9 - 1.9(1.1) (1.1)

Project - - 3.6 - 3.6Administration (2.2) (2.2)(Fiduciaries)

Total 30.8 53.7 65.5 - 150.0(18.5) (32.2) (39.3) (90.!)

Note: Figures in Parenthesis are the respecive amounts financed by the Bank loan.N.B.F.: Not Bank-Financed.

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4.11 Civil Works. The bulk of civil works would be comprised of refurbishing,adaptations, and extensions of existing schools as well as the construction of new schools invarious municipalities. Civil works would be procured through LCB and local shoppingprocedures. Each municipality would be responsible for managing the procurement of civilworks financed through FINDETER. Municipalities would be expected to carry outprocurement in accordance with policies and procedures acceptable to the Bank. The Bank isassisting FINDETER in preparing standard bidding documents for use by municipalities inprocuring small scale civil works. These documents would be consistent with the Bank'sStandard Bidding Document for Smaller Works. The preparation of standard biddingdocuments under LCB for civil works and goods and materials, acceptable to the Bank, willbe a condition of effectiveness (para. 6.3 (i)).

4.12 Works for secondary school renovations and extensions are expected to cost US$57.4million. The expected amount of each contract for civil works could vary between US$0.1million for the small municipalities of 20,000 population and US$1.0 million for the largermunicipalities with population of 200,000. These contracts are not expected to be of majorinterest to foreign competitors; however, local competitive bids will be open to foreign firmsin accordance with national regulations and Bank guidelines and are expected to generatesuifficient interest to create competition. An aggregate of US$43.8 million would be awardedthrough LCB for civil works contracts valued between US$200,000 and US$3.0 million.Civil works valued at up to US$200,000 equivalent per contract would be procured throughlocal shopping up to an aggregate amount of US$13.6 million.

4.13 GCoods and Materials. The goods aid materials would consist of three types: (a)furniture, totalling US$5.3 million, which for contracts estimated to cost below US$250,000up to an aggregate of US$3. 1, would be procured under LCB, and for contracts estimated tocost under US$50,000 would be procured through local shopping, up to an aggregate amountof US$2.2 million; (b) textbooks totalling US$23.6 million, which would be procured underICB; and (c) equipment, including science laboratories, instructional materials and referencetexts for libraries, totalling US$26.2 million. These items would be procured through 1CBfor contracts over US$300,000, up to an aggregate amount of US$7.2 million; LCB wouldbe used for contracts estimated to cost below US$300,000 and up to an aggregate amount ofUS$ 6.8 million; and local shopping for contracts estimated to cost below US$50,000 and upto an aggregate amount of US$12.2 million.

4.14 School Improvement Plans. Funds totalling US$16.1 million would be used tosupport school improvement plans roughly averaging US$7,000 per school over two years,and procured by local shopping, however, individual contracts for these expenditures wouldnot exceed US$5,000 per plan. These funds are going to be used primarily to support in-service training of principals and teachers, although small purchases of instructionalmaterials, supplementary to those provided by the municipality, may be made by the schooladministrations through local shopping to support teaching programs.

4.15 Technical Assistance. Consultants would be hired in accordance with Bankguidelines (August 1981). Prior review by the Bank of terms of reference, consultant

- 32 -

qualifications and conditions of employment would apply to all individual consultantsregardless of their cost, and to all assignments of critical nature.

4.16 Items Not Involving Procurement. The bulk of the funds allocated for schoolimprovement plans, as noted in para. 4.10, would be used for covering the cost in-servicetraining of principals and teachers at local universities and training centers.

4.17 Prior Review. Prior review by the Bank would be required for all procurementdocumentation for ICB contracts above US$250,000 and for the first LCB contract for goodsand for works for each municipality or fiduciary agent, as well as all LCB contractsestimated to cost US$200,000 or more, for goods, and US$500,000 or more, for works.Contracts awarded without prior Bank review would be selectively reviewed postfactoduring Bank project supervision missions. All documentation for the hiring of consultantsfor contracts valued above US$100,000 per contract, as well as single-source contracts,regardless of value, would also be subject to prior review by the Bank.

D. Accounts and Disbursements

4.18 The proceeds of the proposed loan are expected to be disbursed based on the scheduleshown in Annex 10, over a period of 7-1/2 years; this schedule is in accordance with theprofile for Colombia. The project completion date would be June 30, 2000, and the projectclosing date would be December 31, 2000. The length of the disbursement period takes intoaccount the elapsed time likely to be required for planning and implementing civil works andschool improvement initiatives in numerous municipalities throughout the country. Annex IIalso illustrates in detail the flow of funds that will be channelled to the different entitiesincluded in the project. The allocation of loan amount and the disbursement percentages aresummarized in Table 6 of Annex 10. Disbursement would be made against certifiedStatement of Expenditures, except for contracts requiring prior review.

4.19 To reduce the interval between payments made by the beneficiaries and receipt ofreimbursements from the Bank, two Special Accounts would be established in the CentralBank of Colombia. The Special Accounts would be denominated in US dollars and would beestablished with initial deposits of US$2.0 million each, somewhat below the average four-month requirement. Project expenditures would be monitored by the PCU from informationprovided by each project executing agency. The PCU would request replenishment of theSpecial Account on the basis of standard disbursement procedures.

4.20 The Bank would finance up to US$9 million or 10 percent of the proposed loanretroactively for expenditures incurred by MEN after March 1, 1993, and in accordance withBank procurement guidelines. Retroactive financing is required so that the Govermment maybegin the gradual implementation of several programs in a timely manner.

E. Audits

4.21 The Bank would require that an independent auditor acceptable to the Bank: (a) auditall accounts, SOEs, and Special Accounts; (b) apply auditing standards and proceduressatisfactory to the Bank and conforming to generally accepted auditing practices; (c) carry

- 33 -

out its auditing work in a timely manner (an annual report would be presented no later thansix months after the end of each calendar year); and (d) render an audit opinion or thereasons whereby such opirion cannot be rendered. The hiring of one or more auditorssatisfactory to the Bank, to audit project accounts, SOEs and Special Accounts would be acondition of loan effectiveness (para. 6.3 (j)).

F. Project Monitoring, Evaluation and Supervision

4.22 Monitoring. Overall monitoring and evaluation of the project would be theresponsibility of the PCU. Specific tasks include: (a) preparing annual progress reports onproject implementation, with year-end projections, which would be submitted to the Bank byNovember 30; and (b) preparing updated implementation schedules and expenditure plans forthe subsequent year, which also would be submitted to the Bank by November 30 of eachyear. During project preparation, MEN identified the major components of a monitoringsystem for the proposed project as well as the monitoring indicators and key performancetargets. The proposed project monitoring system takes into account the monitoringrequirements of each implementing agency as well as of individual pilot municipalities.

4.23 A mid-terrn review of the project would be conducted towards the end of June 1996to assess achievements, identify constraints, and to make needed adjustments in the overallstrategy for the remaining years of project implementation. It would also examine the leveland composition of education expenditures for a sample of municipalities with a view towardensuring adequate provision for educational materials and recurrent costs. Monitoringindicators for each component have been developed to track project implementation inrelation to key perfonnance targets and objectives. These targets are an integral part of theproject action plan prepared for the project. At negotiations, and following subsequentconsultations, the Govemment confirmed its agreement to the proposed mid-term review andto the monitoring indicators and key performance targets which appear in Annex L. (para.6.2 (j) and (k)). A condition of effectiveness would be for the Government to propose asystem for project monitoring which is satisfactory to the Bank, would be ready to be putinto operation immediately (para. 6.3 (k)).

4.24 Evaluation. The project includes funding for evaluation studies which would beconducted in the course of project implementation and shortly after termination by localresearch groups. The studies would be conducted under contract from MEN (para. 2.25).The proposed evaluation studies are described in Annex 12.

4.25 Supervision. The supervision of this operation will require larger than averagecoefficients because of its innovative character and the scope of operations which eventuallycould include 87 municipalities. The supervision plan for the project takes these factors intoaccount (Annex 12). It includes a project launch seminar, annual and mid-term reviews,regular Bank staff supervision missions, and supplementary special missions by others forspecific project components. An estimated 12 staff weeks (SWs) per year of Banksupervision will be required. Headquarters supervision would be supplemented by 10 staffweeks of in-country supervision and support for implementation by a human resourcesspecialist based in the World Bank Resident Mission.

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V. EXPECTED BENEFITS AND RISKS

A. Benefits

5.1 The project will support on average 60 percent of the total investment requirementsfor the 87 municipalities with the potential benefits as follows: (a) increasing access tosecondary education for an estimated 90,000 primary school graduates in 87 municipalities;(b) providing opportunities for secondary education for up to 22,000 students of low-incomefamilies; (c) enhancing the quality and efficiency of education in the 1,250 pubL;e secondaryschools in the 87 municipalities through the provision of up 4.2 million textbooks, teacherand principal training and mstructional materials and equipment; (d) strengthening theadministrative and managerial capacity of 11 departments, 87 municipalities, and up to 1,250public school administrations to plan and implement education improvement programs; and(e) increasing the overall level of investments in education, and secondary education inparticular, made by regional and local governments.

B. Risks

5.2 The major risks to project implementation are: (a) insufficient implementationcapacities in the MEN, FIS and other government agencies could result in slow projectexecution; (b) the institutional weakness of local government and the high turnover of keymunicipal personnel could jeopardize the pursuit of coherent education programs at the locallevel; (c) local governments may not be willing to participate in the project, because theylack confidence in the central government's commitment and ability to deliver on itspromises; (d) local governments may not be able to invest in secondary educational facilitiesto the extent needed to reach the enrollment targets; and (e) the voucher program will notgain the requisite political acceptance, although the first year of the program has beengenerally successful. The project design, including the sequencing of Bank assistance,implementation arrangements, a flexible management approach, and the use of technicalassistance would help diminish these risks.

VI. AGREEMENTS REACHED AND RECOMMENDATION

6.1 Prior to negotiations, the Government submitted the following for the Bank's reviewand agreement:

(a) the legal procedures to be followed by the national and departmental governments intransferring responsibility for secondary school construction and maintenance to themunicipalities (pam. 2.11);

(b) a manual setting forth the policies and administrative procedures to be used inmanaging the voucher program, and the procedures to be used by ICETEX and themunicipalities for assessing qualifications of schools (para. 2.16);

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(c) a proposed plan for implementing decentralization of education in 1993-95 (para.2.22);

(d) the final staffing plan for the PCU for the Bank's approval; the recruitment of aProject Director with terms of reference and qualifications approved by the Bank;and, the appointment of a fiduciary agent for the activities of the PCU (para. 4.1);and

(e) copies of at least three agreements signed between the MEN and the Governors, andat least one agreement between each such Governors and a Mayor regarding theirparticipation in and implementation of the proposed project, and a draft operationsmanual of the project (para. 4.2).

6.2 At negotiations, the Government agreed:

(a) that the legal procedures for transferring secondary school property to municipalitieswould be incorporated in the regulations for Law 60 which are expected to beprepared by MEN and DNP and issued by March 1994. Meanwhile, MEN willdevise a plan to provide training and/or technical assistance to departments tofacilitate their working with the municipalities in the implementation of theseregulations (para. 2.11);

(b) that the draft manual on the policies and administrative procedures to be used in themanagement of the voucher program would be incorporated into the project operationsmanual (para. 2.16);

(c) to revise by March 1994 its proposed plan for implementing decentralization ofeducation to include a strategy with targets and actions which would be taken jointlywith other agencies (para. 2.22);

(d) to submit the formula it proposes to use for transferring national funds for socialdevelopment (situado fiscal) to local governments for review by the Bank (para. 3.4);

(e) that MEN would issue a resolution establishing the Project Coordination Unit byDecember 31, 1993. The unit would be established on the basis of the documentsubmitted to the Bank pricr to negotiations and in accordance with agreementsreached at negotiations (para. 4. 1);

(f) that MEN would immediately begin implementing the agreement signed with afiduciary agent to provide services to the Coordination Unit. It was further agreedthat MEN will maintain such services for the duration of project implementation(para. 4.1);

(g) that future legal agreements signed between MEN and the participating departmentsand between the departments and the municipalities would refer to the conditionalityfor project funding (pam. 2.4); and that municipal and district education plans would

- 36 -

be expected to contain relevant targets and plans to sustain increases in educationalexpenditures resulting from their investments (para. 4.2);

(h) to review project operational arrangements and financial flows arrangements annuallywith the Bank and make adjustments, if needed. It further agreed to increase theamount of technical assistance provided to the departments and municipalities, iffound necessary to improve project implementation (para. 4.6);

(i) that DNP, MEN, and FINDETER would prepare model sub-projects to guidemunicipalities in implementing their MEP. These models would be prepared byMarch 1994 and submitted to the Bank for review, after which they will beincorporated in the MEP manual (para. 4.7);

(j) on the holding of a mid-term review of project implementation towards the end ofJune 1996 based upon the monitoring indicators and key performance targets of theproject (para. 4.23); and

(k) to the monitoring indicators and key performance targets which appear in Annex 12(para. 4.23).

6.3 Conditions for loan effectiveness would be that:

(a) three senior managers for the PCU be employed with terms of reference andqualifications satisfactory to the Bank (para. 4.1);

(b) the work program for the first year of project implementation be prepared andsubmitted to the Bank for review (para. 4.2);

(c) FIS would have ratified the project agreement, executed and delivered subsidiaryagreements, and be fully operational for implementing the project (para. 4.4);

(d) FIS would have furnished to the Bank standard draft contracts with fiduciaries andsub-project executors (para. 4.4);

(e) FINDETER would have ratified the project agreement, executed and deliveredsubsidiary and trust agreements, and incorporated technical and financial criteria foreducation sub-projects, satisfactory to the Bank, in its operational manual (para. 4.5);

(f) FINDETER would have furnished to the Bank standard draft contracts for executionof sub-projects (para. 4.5);

(g) operations manuals for the project as well as for the FIS, ICETEX and FINDETERsatisfactory to the Bank, would have been issued (para. 4.7);

(h) evidence be provided of the appointment of a procurement advisor/s for the projectwith terms of reference and qualifications satisfactory to the Bank (para. 4.10);

- 37 -

(i) standard bidding documents for civil works and goods and mateials under LCB,acceptable to the Bank, would have been prepared (pan. 4.11);

(j) one or more auditors, satisfactory to the Bank, would have been hired to audit projectaccounts, SOEs and Special Accounts (para. 4.21); and

(k) a system for project monitoring, satiiactory to the Bank, be ready to be put intooperation immediately (pam. 4.23).

6.4 Recommendation. With the above agreements and assurances, the prposed projectconstitutes a suitable basis for a Bank loan of US$90 miion equivalent to the Republic ofColombia.

- 38 - Annex 1

COLOMBIA

SECONDARY EDUCATION PROJECT

The Education System, Structure and Curriculum

Preschool and Primary Education

1. Preschool has not been compulsory in Colombia. However, the Constit0tion of 1991establishes one year of preschool called "ano 0". One of the main objectives of "aflo 0" isto reduce the high rate of repetitions in the first year of primary education by preparingchildren for first grade. The goal of the program is to ensure that by the year 200, threepre-school years will be the norm. The vast majority of the existing pre-schools, orkindergartens, are privately owned. Children may enter preschool as early as age 3 andcontinue through age 6,

2. Primary education lasts 5 years. Children may - oll in primary schools at age 6,although most enter at 7. The primary school curriculumil, including the number of subjectsat each grade level, time spent on each subject, and the topics to be covered, is specified indetail by the Ministry of Education (Table Al.1).

Table A1.1: Primary School Curriculum

------------------------Hours per Week----------------------Subject Grade I Grade 2 Grade 3 Grade 4 Grade 5

Aesthetic andManual Training 3 3 3 3 3

Mathematics 5 5 5 5 5Natural Science 3 3 4 4 5Physical Education 3 3 3 3 3Religion 3 3 3 3 3Social Studies 4 4 5 5 5Spanish 9 9 7 7 6

Total Hours 3Q 0Q Q 3Q

Source: Decree 1710 of 1963, and Resolution 2308 of 1971.

3. In rural areas most primary education is provided by Escuela Nueva. Escuela Nuevawas officially launched in 1976 in 500 schools, and by 1989, 17,948 of these schools were in

- 39- Annex 1

operation serving 800,000 students.' The program is based on a multigrade teachingtechnique, designed to provide a full five-year primary course with no more than threeclassrooms and three teachers. The program aims to improve student achievement, enhanceeducational efficiency and productivity, and integrate the school and the community.Appraisals of Escuela Nueva show that it is feasible to raise the quality of primary educationfor a modest increase in the unit cost per student.

Secondary Education

4. A series of overlapping national laws have modified the secondary educationcurriculum making the system confusing and preventing standardization. Among the mostrecent reforms of Secondary Education are the following: Law 43 of 1975 (nationalization),Laws 088 and 102 (Regional Educational Funds (FER) and Law 089 (ICFES and HigherEducation) of 1976, Decree '419 of 1978 which mandates a new curriculum and proceduresfor its implementation and Decree 1002 of 1984 which regulates Law 088 of 1976 andDecree 1419 of 1978. Decree 1002 establishes the goals of education, the characteristics ofthe curriculum and the curriculum process, and the mechanism that allows for curriculumdiversity according to regional need.

5. The result of the 1984 reforms is the establishment of a four-year cycle from grades 6to 9 (Ciclo Bdsico) followed by a two-year cycle from 10-11 (Media Vocacional). All gradesof the four-year basic cycle have the same core courses, although they differ in the numberof hours taught: 30 the first two years and 25 the second two years (Table A1.2). Allprograms in the two-year cycle require 35 class hours per week, except pedagogy whichrequires 39 hours per week. This means that all students in grades 6 to 9 have the samecurriculum and for grades 10 and 11 there are optional subjects. All programs lead to aBachiller diploma.

6. Under the 1978 decree there are only three types of Bachilleratos: Sciences (withspecialization in math, natural sciences or social sciences); Technology (with specialization inpedagogy, industry, agriculture, commerce, health and nutrition education and recreation,community work); and Art (with specialization in art or applied arts). However, the MENstill awards seven types of Bachilleratos recognized under the pre-1978 legislation:Academic, Commerce, Agricultural, Industrial, Pedagogical, Social Services, and others(Fine Arts, Science, and a miscellany of "others" representing a minuscule percentage of thetotal) (Table Al.3). Most secondary education establishments offer only one type ofbachillerato, the Bachillerato AcadAmico, even though since 1974 (Decree 080), all schoolsby law must offer at least two Bach/ileratos. Upon completion of the second cycle, thestudent receives the Bachiller diploma, which is a requirement to enter university. However,most universities also require a satisfactory result in the State Examination (ICFES).

I Psacharopoulos George, Carlos Rojas and Eduardo Velez, Achievamei Evaluation of Colombia's EscuelaNueva. Is Multigrade the Aswer? (World Bank, April 1992), p. 2.

-40- Annex I

Table A1.2: Secondary School Basic Cycle Curriculum

------------------Hours per Week----------------Subject Grade 6 Grde 7 Glade 8 Grade 9

Aesthetic andManual Training 2 2 2 2

Foreign Languages 4 4 3 3Mathematics 5 5 4 4Natural Science 4 4 4 4Physical Education 2 2 2 2Religion 2 2 2 2Social Studies 6 6 4 4Spanish 5 5 4 4

T=otal Hours 30 30 25 25

Source: Resolution 130, January 23, 1978; and Resolution 4785, July 9, 1974.

Table A1.3: Colombia Enrollment Distribution by Tracks, 1954-91(in percentages)

Tracks 1954 1966 1975 1984 1988 1991

Academic 61.9 62.8 75.2 76.4 77.2 78.5Pedagogical 9.6 12.5 5.2 3.6 3.7 2.5Commerce 17.9 13.0 11.6 12.4 12.0 11.4Industrial 6.1 4.2 5.0 4.2 3.7 3.8Agriculture 1.4 .9 1.7 1.8 1.9 1.7Social Services 3.4 6.6 .5 1.6 1.5 .9Others - - - - - 1.2

Source: Ministry of National Education-Sectoral Office of EducationalPlanning, Division of Statistics & Systems, 1991.

-41- Aunci

7. The Insntuto Nacional de Educacion Media (INEM) is a comprehensive multi-tracksecondary school offering academic and vocational curricula under one roof. The INEMoffers a six-year program. During the first two-year cycle, students are exposed toprevocational subjects to acquaint thekn with knowledge and career options in various trades.The second two-year cycle is oriented to vocational subjects, such as agriculture, industry,social services and commerce, along with continuing academic study. Those who leaveschool at this level are regarded as prepared for further training, such as the NationalVocational Training Service (SENA) or on-the-job apprenticeships. Finally, during the lasttwo-year cycle, further specialization takes place; e.g., students in the commercial track canfocus on fields such as secretarial or accounting studies, students in the industrial track couldfocus in fields such as electricity or construction. In this way, it is expected that studentswould get a more varied education so that their range of future education and occupationalopportunities would be wider. There are only 21 INEMs throughout the country.

Calendar

8. There are two school calendar years, A and B. Calendar year A is used by mostschools. The first semester begins February 1 and ends June 15, with a vacation period fromJune 16 to July 15. The second semester begins July 16 and ends November 30, withvacation during December and January. Calendar year B is used by most bilingual schools.The first semester begins September 1 and ends December 15, with vacations until January15. The second semester begins January 15 and ends June 30, with vacations during Julyand August. The primary and secondary schools are in session from Monday to Friday, 198days a year.

Higher Education

9. Colombia's system of higher education has been dominated by universities modeledon those the Spanish settlers had known in Europe. Therefore, until fairly recently, highereducation only served a small select group of the population. Enrollment rate for 1989 wasonly 11.3 percent of secondary school graduates for that year. Further, the universities offeronly a small number of specialties; mainly, traditional fields such as medicine, law, civilengineering, and architecture. Change in the university sector has been a slow process.

10. Reforms of higher education are carried out by the InsPituto Colombiano para elFomento de la Educaci6n Superior (ICFES). This agency, created in 1964, is responsible forregulating and inspecting all matters related to higher education. However, ICFES tends tohave a low political profile and even less clout, giving it little bargaining power over themore powerful higher education institutions, such as the National University. Someuniversities in Colombia possess a high degree of autonomy.

11. All students who wish to enter an institution of higher education must hold a BachWllerdiploma and take the State Examination. Each institution requires a minimum grade on theState Examination, and weighs the results in accordance with the academic requirements ofthe corresponding program. The institutions may also have other entry requirements of theirown, such as specific examinations, interviews, etc.

- 42 - Annex 1

12. In 1989, 236 higher education institutions were operating in Colombia, of which 30percent were public and 70 percent private. Of these, 76 were academic universities and therest provided other types of higher education.

13. The main recent reform in higher education was implemented by the MEN byDecree-Law 80 of July 20, 1980. This Decree-Law established four categories of highereducation. These four categories are the following:

(a) intermediate professional studies, which are relatively short-term (four to fivesemesters in length) curricula for clerical and lower-level white-collar jobs;

(b) technological studies which are also relatively short-term programs (six to sevensemestars in length), but for careers considered technical;

(c) professional studies, which encompass traditional careers (e.g., law, medicine,engineering), and have a usual length of 10-12 semesters in length for graduation; and

(d) graduate studies, which are concentrated in only the major universities and in a few"traditional' fields (e.g., history, literature, philosophy).

14. The main difference between the first two categories of higher education and the thirdand fourth is that the latter two have to comply with more stringent regulations established bythe ICFES, and confer a higher social and professional prestige.

The National Vocational Training Service: SENA

15. SENA was established in 1957 as a semi-autonomous (decentralized) institutionassigned to the Ministry of Labor. It is managed by a Board consistirg of representatives ofthe government, employers, and workers. It is funded through a 2 percent payroll tax paidby the private sector and semi-autt nomous public institutions plus a 0.5 percent payroll taxpaid by the public sector entities.

16. SENA offers a non-academic vocational training program to help workers performmore effectively on the job. To enroll, a student must be employed and have an equivalentof five years of elementary education. The types of programs offered are determined by thebusiness community and its need for trained workers. The training program at SENA can beas short as three months and rarely lasts more than three years. Participants usually splittheir time between on-the-job training and the SENA program. All graduates obtain acertificate recognized by MEN.

17. The Colombian government also has a distance learning program, i.e., primaryeducation by radio and secondary education by TV. Both programs are aimed at achievingminimal educational standards at their respective levels and are targeted to people who cannotattend school everyday. Periodically, the students must meet at regional centers, where theyare tested and their progress evaluated.

COLOMBIASECONDARY EDUCATION PROJECT

The Educaton System In Colombia

Preschool Primary , Secondary Post Secondary

_One Cycle

One d everatoptions:l Acadmic.Agriultual.Industrial, iniermeidate Technlcal Vocational Training

* Commercial, Padagogic, Social Services (SENA) (Non-f oaal)(2 years)

: :

. ~~~~~~~~~ ~ ~~~~~~~Basic Cycle Media vocational tC

[ii II 1 2 | 3 | 4 | 5 | | 6 | 7 | 8 | 9 10 + 11 . _ Technical Vocaoa Educaion Traig (Formal) 42 3 4 7 la I I I 3: ~ ~~~~~~~~~~~~~~~~~(2 years

Media vocational options: in.

Science: Math. Natural Science Social Science;Technology: Pedagogy Industry, Agriculture.

Commerce. Health, Nutrftion and Recreation.Community work

Art: At & Appled arts Universy

INEMa .,

. Vocaltinal Vocational Occupationalexploration orientation speclaHzation

A 6

Age S 6- 7 0 9 10 11 : 12 13 14 15 16 17I ' I I I I I . I I I 1 1 1 ,

- 44 - Annex 2

COLOMBIA

SECONDARY EDUCATION PROJECT

Education Administration

The Mistry of National Education

1. The Ministry of National Education (MEN) is the major administrative authority inColombia for all levels of education. This authority extends from the President to theMinister of Education and through him to the departments and municipalities. MEN has thelegal power to issue decrees and resolutions, which are the legal foundation of theeducational structure. It determines types of curriculum, minimum course requirements, theschool calendar, qualifications of teachers, and related administrative functions. Theministry ex.rcises control over public and private schools. MEN makes annual evaluationsof financial needs and recommends adjustments of the fiscal budget for the department andmunicipalities. It has tight control over budgetary allocations to departments andmunicipalities and pays salaries and pensions to official educational staff.

2. Recent laws aimed at decentralizing education in Colombia have not been entirelysuccessful and may have had the opposite effect. Law 24 of 1988 and Law 29 of 1989reasserted the powers of MEN, establishing it as the institution responsible for overseeingand defining national policies on education, science, technology, culture, sports andrecreation, and environmental protection. According to these laws, the municipalities and thedepartments are responsible for the administration of the educational system. In other words,the departments and municipalities must shoulder the economic problems associated with themanagement of education, but have little say in establishing education priorities. MEN wasreorganized th -,ugh Decree 2127 of December 29, 1992, in line with the currentdecentralization process. Some responsibilities were transferred to the departments andmunicipalities but MEN still has oversight of financial areas. MEN will also provide advicein pedagogical and curricular matters.

Departments

3. The 1886 Constitution established the Governor, who was appointed by the Presidentof the Republic, as the chief administrative officer of the department, and thus controlled theadministration of all departmental schools in his sector. He also appointed the Sec.etary ofEducation, who was the departmental chief educational officer. The Secretary of Educationwas accountable to the Governor not the Minister of Education, with responsibility foradministering the educational system in the department in accordance with standardsestablished by MEN.

4. The future role of the department in the proposed decentralization of education is stillbeing defined. Article 303 of the 1991 Constitution states that governors will be elected

- 45 - ADni 2

publicly for a period of three years and cannot be reelected. The departments will continueto have the responsibility to administer and coordinate the educational system in theirjurisdictions, and have the further obligation of encouraging the decentralization process atthe municipal level. Current legislation on education also bypasses closer links betweenMEN and the municipalities.

5. The Secretarfa de Fducaci6n Depantamental is responsible for executing MENpolicies governing education, science and technology, recreation, sports and culture. Thesecretarfas managed secondary education within the department until MEN nationalized theresponsibilities in 1975. Primary education has always been a decentralized andresponsibility of the secretarfas.

6. The Fondo Educativo Regional (FER) is the financial mechanism to pay for teacherson the official roster, and is administered by the departments. The? FER is composedprimarily of resources transferzed from the central government. Since the establishment ofthe FER in 1968, teachers have been paid on time, which had not been the case before. Thishas diminished the number and intensity of teacher strikes. The governing authority of theFER is the Administrative Board which proposes to MEN the number of teachers needed inthe departmeins and municipalities (i.e., provides a list of qualified teachers).

7. The Centros Experimentales Piloto (CEP) work closely with the Secretaries ofEducation, even though they come under the jurisdiction of MEN. Their function is to keepthe departments and municipalities informed of experimental programs MEN isimplementing, and in this way they act as a furt'iler link between the department and thenational level. The CEPs are also responsible for promoting the enhancement of education atall levels. They organize evaluation and performance systems for promotion of personnel;design and evaluate mechanisms for educational improvement; and develop experimental andcurricular programs in cooperation with schools in their geographical area.

Municipalities

8. Traditionally, local governments were not given much importance, but were simplyseen as another source of patronage by national leaders, with little local accountability. Onlyrecently has decentralization been an accepted concept in the political dialogue of thecountry. Only since 1988 have mayors actually been elected by popular vote. However,even today the much-used phrase by politicians of "political centralization and administrativedecentralization" connotes the belief at the national level that municipal governments are evenmore inefficient than the national o.le. However, among other administrative work,municipalities should be allocated sufficient financial resources to perform their tasks, sincethe municipalites are more accountable to the population than the central government.

9. The municipalities are required to adopt policies and plans established at thedepartmental and national levels. They have been acquiring more tasks with thedecentralization process, although they have limited control over educational finance becausetheir educational budgets are eanmarked by law at the national level. MEN and thedepartments pay public school teachers' salaries and determine the number of teachersneeded in each municipality through the FER Board. The municipality can propose teaching

- 46- Annex 2

and administrative staff but appointments have to be approved by the department.Nevertheless, municipalities are permitted to hire qualified teachers who are needed butbecause of a hiring freeze could not be hired provided the municipalities pay their salariesand pensions through their own budgets.

10. Municipalities are now responsible for day-to-day administration of educationpersonnel, including transfer of teachers among municipal public schools, and for buildingand maintaining the physical infrastructure for education.

11. Following the government's "nuclearization" program, implemented in 1959, eachmunicipality was divided into small administrative districts (nickleos) consisting of 10 to 20schools. The aim of nuclearizacion is to enhance educational management by making it moreaccountable to the community. Nuclearization only became a national program, however, inthe mid-1970s. Today there are an estimated 800 or so nicleos in operation; however, theyare projected to reach 1,841 in the next few years. The idea behind the nicleo is thateducation should be decentralized and focus on the needs of the community. The mayorappoints the Directores de Nkckeo who in tum advise him on all municipal educationalmatters and on national educational policy.

Decentralization of Education

12. Decentralization Efforts of the 1960s and 1970s. The constitutional reformundertaken during the administration of Carlos Lleras Restrepo in 1968 was the beginning ofthe decentralization process in the Colombian educational sector. The reform deconcentratedthe central government by creating a host of decentralized institutes to help manageeducation. MEN retained veto power over these institutes, which specialized in variousaspects of educational policy. Therefore. the complexity, operations, and responsibilities ofMEN grew--before 1968, MEN only controlled policy for national schools, which accountedfor only 1 percent of enrolled primary students and 6.5 percent of enrolled secondarystudents.

13. To finance the educational sector, the FER was created as a hybrid system intended tocentralize funding and decentralize resources available to educational personnel. Under theFER system, the national government allocated funds used to pay teachers' salaries. Thedepartmental governments were required to enter into a contract with the nationalgovernment that imposed numerous conditions on how the funds could be spent. Implicit inthis transaction was the threat of the central government withholding resources if thedepartments refused to act according to national guidelines. Another measure to ensureadequate funding for education was the Situado Fiscal (Education Tax Allowance), enacted in1971. It earmarked national government expenditures and sales taxes for educationalpurposes.

14. As a further effort to harmonize the educational sector, the juntas de escalaf6ndepartamental were created to ensure that teachers met certain qualifications. To promotecooperation among levels of governments, the juntas were supposed to receive input from thenational and departmental levels; however, MEN was clearly the senior partner in thisarrangement.

- 47 - Annx2

15. Decentralization in the 1980s. Throughout the 1980s a stated policy objective hasbeen to increase local participation in education, including policy- making. However, fewattempts have been made to train local officials or to develop local institutions for theirenhanced responsibilities.

16. The policy-making environment was to change after the Mapa Educativo was enactedin 1982. This program aimed to introduce microplanning to education, and thereforeincrease the input of local levels of government. This program was an attempt to expand thenucleanizaci6n program to the national level. Unfortunately, the departmental Secretariats ofEducation saw this as a further intrusion of MEN into their affairs and effectively opposed itsimplementation. The result was that MEN maintained a monopoly over educational policy-making.

17. In 1986, Congress enacted Law I requiring the election of mayors beginning in 1988.This marked the start of effective decentralization. This law was followed by a series ofmeasures aimed at increasing the fiscal autonomy of municipalities. Since 1986, sales taxeshave been increasingly collected and retained at the local level as an important means offinancing for municipal governments. This law meant that municipalities would now beresponsible for the construction of educational infrastructure through their own resources. Inaddition, certain municipalities would be required to contribute to the FER in an attempt toredress regional inequalities. However, increased revenue collection by municipalities hasnot implied increased independence. The municipality must devote 30 percent of its grants toeducation, of which 5 percent must be used to maintain school physical infrastructure. Thesepercentages were established at the central level by MEN.

18. In 1988, local governments were given the power to manage their educationalsystems, even though MEN remains responsible for national education policy. This measureattempts to make local governments directly responsible--and therefore accountable, for theactual provision of education. The municipality is responsible for the administration ofeducational personnel, even though teachers are still paid by the central government andsubject to national "escalaf6n" criteria.

19. Decentralization in the 1990s. The Constitution of 1991 attempted to strengthen thedecentralization process. It established a framework to distribute the functions at differentadministrative levels and increased the responsibilities of the departments and municipalitiesin the delivery of social services. However, the actual outline of the new functions was to bedefined by the Education Law. The draft education law still maintains the primacy of MENin the educational sector by making it the sole entity responsible for educational policy andplanning, and giving it the authority to eannark municipal budgets for educational purposes.

20. Colombia now is going through a period of "devolution," which is a form ofdecentralization that involves the diffusion of political and administrative autonomy to localgovernments. Under this type of decentralization, the central government grants local levelorganizations the authority to make decisions affecting them; nevertheless, the centralgovernment usually maintains some control over local governments by managing thenational, and sometimes municipal, budgets.

- 48 - Ane 2

21. Decentralization will be successful in Colombia only if local governments areempowered to assume the responsibilities involved. Simply creating decentralized- structuresfor enhanced decision making and announcing new procedures for participatioe, in plaliningand administration will not guarantee that they will be effective or generate economic growthwith greater social equity. Thus, if decentralization is to be effective, the attitudes andbehavior of both central government officials and local leaders must be altered to recognizethe value and legitimacy of shared decision-making and more widespread participation indevelopment planning and management.

49 Anna 2

Table A2.1: LEVEL OF GOVERNMENT RESPONSIBLE FOR ADMINISTRATION OFPUBLIC SECONDARY EDUCATION SERVICES

(By Department or Special District Participating in the Project)

Depa m ToW N m# Municpal DepelmeW toaor SOd Of Control of Cotrl ot ::O:rd f.t

: )'- .',: ;. : .,,, ,,. ............... ' .... : '':. : ...... ,'.,,,>.,::~~~~~~~~~~~~~~. ... .... ..

Antioquia 124 49 75 0

Atlantico 23 23 0 0

Bolivar 32 32 0 0

Caldas 25 25 0 0

Cundinamarca 114 89 0 25

Magdalena 21 20 1 0

Narifto 59 57 2 0

Norte deSantander 38 6 32 0

Risaralda 14 2 12 0

Santafd deBogotga 1 1 0 0

Santander 86 47 0 39

Valle 42 0 0 42

TOTALS _579 351 122 106

a. Within SantafM de Bogotd, 20 Juntas Administradoras Locales control education funds and administer vablicprimary and secondary education services within their jurisdictions, with the full autonomy providedby Laws 24 and 29.

-50 - Annex 2

Tabl A2.2: NUMBER OF MUNICEPAL SECRETARAS, SUPERVISORES,AND NUCLEOS DE EDUCACI6N

(By Department or Speal Distuict Particpating in the Project)

Nam of No. of No. of No. of No. of No. ofDepartment Municipalities Planned Acive Muniipal Supervisoresor Special Nuckos Nudeos Secctasw deDistrict de de de Educacicn

Educacln Educ ad6n _d_ac_

Antioquia 124 243 243 20 81

Atlantico 23 42 37 5 49

Bolivar 32 64 65 N.A. N.A.

Caldas 25 71 45 N.A. 49

Cundinamarca 114 123 0 3 85

Magdalena 21 51 46 0 39

Narifio 59 117 94 7 49

Norte deSantander 38 67 59 1 48

Risaralda 14 48 15 N.A. N. A.

Santafe deBogotA ' I 1 0 1 N. A.

Santander 86 102 88 1 43

Valle 42 141 123 N.A. N A.

TOTALS 579 1,070 815 T 38 T 443

a. Within Santafe de Bogoti, 20 Juntas Admini.tradoras Locales control education funds andadminister public primary and secondary education services within their jurisdictions, withthe full autonomy provided by Laws 24 and 29.

- 51 -

Annex 2

Table A2.3: LOCAL ADMNMATION OF PUBliC EDUCATION(By Municipalty Participating In the Project)

Net of No NO.o N& N .of DouWeM1 dgd Dep_zl. r Fvka Mi NIe * DIMwb. Muankidp

SpeCa D ;tzict Sacom X&wdim Deeu NW Have Its OWNSth& Schek Secr.a,b d.

hr pryas EWwwc"?ad ScadaryPA& .ho, _ _S

Medellin Antioquia 493 23 451 Yes

| atboa Anioqubs 41 2 47 Yes

Bello Antioquia 73 3 71 Yes

Caldas Antioquia 30 2 36 No

Copacabana Antioquis 40 1 28 No

Envigado Antioquis 59 2 39 Y

Girardota Antioquia 24 1 24 No

Itagui Antioquib 65 2 44 Yes

La Estella Antioquia 22 1 15 Yes

Sabaneta Anlioquis 19 1 11 Yes

Gu*me Antioquia 33 2 33 No

El Retiro Antioquis 24 1 22 No

Amagd Antioquis 25 1 26 No

La Ceje Antioquis 34 1 8 No

Rionegro Antioquis 68 3 55 Ye6

San Pedro Antioquia 3. 1 31 No

Marinilla Antioquis 42 2 40 Yes

San Vicente Antioquba 49 1 45 No

Carmen de Viboral Antioquis 49 2 49 No

Barranquilla Atlantico 195 16 250 Yes

Malmbo Atantico 9 2 12 Yes

Polonuem Atlantico 7 1 9 No

Aaeeto _olombia Atbantico 7 1 7 Yes

Soledad Atlantico 30 3 56 No

Sabanagrand. Atlantico 8 1 8 No

- 52 -

Annu 2

Kin.af. Nbht ?4VRW:* ata a.dw, DOkegatb-.. ~ Cep~mdwwf. wre lta Ome

1t0i&: Sebeeb P dr . ; t ti::. At w1e00. SWWA I.M& kboI. diwacM.?

AusD. DAlsgaO 31 1 27 Yes

SAao TomS Adsiaco 14 1 16 No

S c_bAku AiIco 30 2 32 Yes

CazaeSOM DlVaz 251 12 291 N.A.

Azxio Boliva 24 1 26 N.A.

Mahae Boiivot 29 1 20 N.A.

San EBanislso Bolivnr 25 1 11 N.A.

Soplaviento Boler 0 1 0 N.A.

Tutbaco Bolivar 25 1 22 NA.

Marh la Raja Boliwr 66 1 46 N.A.

Manizules Caldas 328 10 240 N.A.

Chinchind Calda 39 2 24 N.A.

Piladelphia CaIdi 46 2 IS N.A.

Neis Calda 69 3 25 N.A.

Paklsinc Caldas 23 2 13 N.A.

Vailamara Ccas 47 2 31 N.A.

Setf6 de Bogot SanA de Bogod 1,109 0 1,328 Yes

Cjici Cundinaumuca IS I S Yes

Facuttivvi CundifmnUAn 9 1 14 No

Madnd Cundinsmarca 9 1 3 No

Mosquers Cundinuacm 9 1 4 No

Sibsd Cundinurca 1s I 3 No

Sowche Cundinunrc, 23 1 10 No

zipaquird Cuindmuma 12 1 20 Yes

Subchocque Cunindmar 23 I 4 No

Annex 2

- 53 -

No".. of . of wet No.o o DM do. mieIpaIty . .Dqua. V_"uq am Nm MU M=k**

SPea Dkmsc Sd5 Momma leeebawi Hat" lb 0,.NWW Sbwob C Wdlu.desW & r g

hr ?rbaay Edwuc.a?.d S-oW

PA& Sab"

Chia Cd i25 - 10 No

Cdqua | Cwundu 30 - - 1 2 Yes

Sua" Mans Magdal.n 236 6 289 | Ye l

CinNAp MgSdainc 161 7 162 N.A.

Puto NacnAo 320 17 361 Yes

Tanpga Nariho 40 1 40 Yes

Buesco NariAo 72 4 79 Yes

El Taibo Nariio 61 2 61 Yes

Sandonr NeriAo 47 I 42 Yes

Cucuta Norte de 251 U 279 YesSantander

Vill de Rou Noii de 29 1 29 NoSantander

Pereira Riurlda 182 11 160 N.A.

Dosquebradcs Risaraida 79 4 58 NA.

La Virgina Riceralds N.A. 4 NA. N.A.

Sanu Rosa de Cabal Risaralda 58 5 66 N.A.

MarelLa Risamrlds 40 3 42 N.A.

Bucaramanga Santander 150 4 186 No

Floridablance Santander 66 2 62 No

airdn Santander 50 1 10 No

Piedecuest Santander 86 1 27 No

Rionegro Santander 91 1 8 No

Sabana de Torres Santander 62 2 6 No

Cali Valle 430 25 374 N A

El Carito Vale. 32 3 39 N.A.

Ginebra Valle 4 1 N.A. N A

Guacari Valle 29 2 28 N.A.

-54 - Ane2

IP~o PNed NWO o NPOwd Nuobw o Dow h.Da~adm at Phaiy adn Nudm de "d m.aicizasB

=q~IsI :det SKs~y ~ diwaDU S Maw. It OWN

for Primaaq Edu-c cia?

mij Sdioo~~IIuMI

JaiMani Vail. 82 4 53 N.A.

hha. Val 148 10 92 N.A.

hag. VanU 41 5 70 N.A.

Yumbo Val. NA. N.A. NA. NA.

Candlana Vail 40 2 43 N.A.

La Cumbe Valle 6 1 18 NA.

Florida va 60 3 29 N.A.

Praders Vane 41 2 29 N.A.

Yoteeo Val. 3 1 0 N.A.

Reetsepo Val.e 33 2 31 N.A.

Daga Valle 82 4 71 N.A.

TO TALS __ 6,990 _ 8 6,606 39

a. Within Santaf dte Bogoti, 20 Jwua Mmtissradoras Locaks control education funds and admninister pubiic prinary andacondary education serviccs within their jurisdictionc, with the full autonomy provided by Laws 24 and 20.

COLOMBIASECONDARY EDUCATION PROJECT

Table 1: National Enrollment Projections by Grades for 1991-1997

1991 1992 1993 1994 1995 1996 19971 Grade 1,151,966 1,124,464 1,106,634 1,088,250 1,058,353 1,043,383 1,015,9962 Grade 877,510 898,153 895,690 898,394 900,387 892,559 910,6363 Grade 859,298 865,537 886,697 889,344 894,526 899,339 897,6664 Grade 743,930 755,620 770,200 797,656 811,147 825,482 848,4635 Grade 669,267 678,333 695,148 715,384 747,106 768,310 796,1446 Grade 631,267 650,235 678,036 714,554 756,724 810,900 878,8057 Grade 494,345 498,410 513,211 535,978 566,139 601,685 648,9818 Grade 406,248 411,489 416,400 429,051 448,726 474,969 508,2509 Grade 333, 289 335,955 339,909 345,258 356,476 373,672 398,088 -10 Grade 305,543 307,812 311,249 315,898 321,861 332,785 350,45211 Grade 240,826 242,798 245,582 249,310 254,034 259,846 270,667

Total Primary Enrollments 4,302,021 4,321,926 4,354,369 4,389,028 4,411,519 4,429,073 4,468,905Total Secondary Enrollments 2,413,518 2,446,700 2,504,386 2,590,048 2,703,961 2,853,858 3,055,242

Source: MEN Statistical Department October 1992

Annex 3- 56-

COLOMBIA

SECONDARY EDUCATION PROJECT

Table 2 Edimated Actual and Projected Progressionsof EMciency Rates for Secondary Education

(Grades 6 to 11)

Figures per Year (S)Grade Rate _,

1991 1992 1993 1994 1995 1996 1997

6 Promotion 62.2 62.6 63.1 63.5 63.9 64.3 65.2Dropout 13.7 13.4 13.1 12.8 12.6 12.3 11.7

.!___ IRepetition 24.1 24.0 23.8 23.7 23.5 23.4 23.1

7 Promotion 67.8 68.2 68.7 69.1 69.5 69.9 70.8Dropout 11.2 10.9 10.6 10.3 10.1 9.8 9.2Repetition 21.0 20.9 20.7 20.6 20.4 20.3 20.0

8 Promotion 71.5 71.9 72.4 72.8 73.2 73.7 74.5Dropout 10.2 9.9 9.6 9.3 9.0 8.7 8.2

l_____ Repetition 18.3 18.2 18.0 17.9 17.8 17.6 17.3

9 Promotion 78.7 79.1 79.5 80.0 80.4 80.8 81.7Dropout 8.5 8.2 7.9 7.6 7.4 7.1 6.5Repetition 12.8 12.7 12.6 12.4 12.2 12.1 11.8

10 Promotion 75.5 76.0 76.4 76.8 77.2 77,7 78.5Dropout 9.9 9.6 9.3 9.0 8.7 8.5 7.9Repetition 14.6 14.4 14.3 14.2 14.1 13.8 13.6

11 Promotion 91.3 91.7 92.2 92.6 93.0 93.4 94.3Dropout 4.1 3.8 3.5 3.2 3.0 2.7 2.1Repetition 4.6 4.5 4.3 4.2 4.0 3.9 3.6

Source: Statistics Division - Ministry of Education

- 57. An 3

COLOMBIA

SECONDARY EDUCATION PROJECT

Table 3: Total Enrollment in the Colombian EducationalSystem (in '000) and Annual Growth Rates (in percent)

Primary SecondaryPublic Private Public Private

Year No. % No. % No. % No. %

1960 1,432 258 132 1566.4 4.3 9.1 9.2

1965 1,956 318 204 2427.8 6.8 16.7 11

1970 2,845 441 411 4083.5 5.5 9.5 8.4

1975 3,380 573 694 6120.9 0 7.5 3.7

1980 3,528 574 998 735-0.5 -0.1 5.6 2.1

1984 3,460 540 1,253 8000.59 3.05 2.72 1.22

1989 3,563 638 1,433 850

Source: Ministry of Education, DANE, ICFES

Plan de Apertura Educativa DNP-UDS-DEC-2518

March 19, 1991

- 58 - An= 3

COLOMBIA

SECONDARY EDUCATION PROJECT

Table 4: Cohort of Projected Progression and EfficiencY(Based on Improving Secondary Rates at 3% for Promotion,

and 2% for Dropout for the Ful Period, 1991-97)

GRADES

6 7 8 9 10 11 TOTAL GRADUATES

1991 1,000 1,000

1992 241 622 863 -

1993 58 281 424 763

1994 14 95 269 307 685

1995 3 28 114 234 246 625

1996 1 8 40 112 223 190 574

1997 2 14 43 124 180 363 177

1998 5 15 52 103 175 170

1999 1 6 19 45 71 97

2000 2 8 17 27 42

2001 3 7 10 16

2002 1 2 3 7

2003 1 1 2

2004 I

(1) Student-years 1,317 1,036 867 719 676 545 5,160 512

(2) Dropouts 178 112 80 52 53 13 468

(3) Promotions 822 710 630 578 525 512 3,777 -

(4) Repetitions 317 214 157 89 98 20 915

(5) % Repeated 24.1 20.7 18.1 12.4 14.5 3.7 17.7 _

(6) School year 1.6 1.5 1.4 1.2 1.3 1.1 1.4per promoted - _ j_-

School years graduated: 177 x 6 +170 x7 +97xS +42 x9 +16 x10+7xII +2xl2 +1:13 -3,680 manycars

Efficiency : JIZxL- 0.3 (1.2 y pe S.dpua.s)3650

COLOMBIASECONDARY EDUCATION PROJECT

Table 5: Adult Illiteracy Rate Table 6: Years of Schooling of theLabor Force

Countries

Colombia i Countries

Colcombia ~ ~ ~ ~ ~ ~ ~ ~ ~ CoomiArg ntin 1 ~~~~~~~~~Colomblai Argentina

Brazil ////f.2W.ffi' m~ gm Argentina

Chile - I . Brazil

Costa Rica Chile

\0Ecuador i Mexico

Mexico WmXXi/XffiXl li I \ ~Pataguay //////i/, |

P yParaguay i

l 8 . ~~~~~~~~~Perug///////i,z//Peru Peru

VenezueClaVenezuela

--- 510 52 e5 Nmer e _y

___0 2 4 6 8 100 5 10 15 20 25Source. Coyuntura Social. Programas

Source: UNDP Human Development Soclales y Situaclon del Madio AmblentsReport 1992 Number 2, May 1990

-fO - Annex 4

COLOMBIA

SECONDARY EDUCATION PROJECT

School Renovation and Construction:Role of FINDETER

1. FINDETER's role in the Secondary Education Project is to serve as FIS fiduciaryagent for grant funding for schooi rehabilitation and basic equipment sub-projects and toadminister the credit line for new construction of schools. It would also provide technicalassistance to departments and municipalities for the preparation of Municipal EducationalPlans (MEP), and the design of sub-projects for co-financing. FINDETER would also assistthe PCU in conducting training for municipal and departmental technicians in planning, sub-project preparation and project execution.

Background

2. FINDETER is a state-owned stock corporation which was created by law 57 of1989. Its stock holders are the National Government (86%) and the Departments (14%).FINDETER is a corporation affiliated to the Ministry of Finance and supervised by theSuperintendency of Banks (Superintendencia Bancaria). FINTDETER's initial capitalresources came from the capital investment of its stockholders, the transfer of assets from theNational Urban Development Fund (Fondo Financiero de Desarrollo Urbano) of the BCH(Banco Central Hipotecario), the institution from which FINDETER inherited its functions,and from foreign resources, such as the World Bank and the Inter-American DevelopmentBank. FINDETER is administratively and financially autonomous.

3. FINDETER's mandate is to assist the development of the departments andmunicipalities, and to increase the quality of life of their inhabitants. To achieve this goal, itoffers financial assistance and advice in the execution of urban infrastructure projects.Specifically, FINDETER's mandate entails that it aid departments and municipalities in theefficient use of financial resources, build local institutional capability, and balance regionaleconomic inequalities throughout the country. Because of this last function, FINDETER is avital instrument for the execution of the national government's development strategy.

Organization and Management of FINDETER

4. General Structure. The Board of Directors, chaired by the Minister of Finance,comprises the Chict of DNP, the Minister of Development, a delegate from the Presidencyof the Republic and two governors in representation of the departments. FINDETER'sorganization chart (Appendix 1) includes a presidency, and three vice-presidencies (VP) for:(a) Credit, responsible for lending, and divided into three regional Divisions which in turncoordinate and control ten Regional Units; (b) Development, responsible for policyformulation; and (c) Finance and Administration, responsible for resource mobilization, cashTrnafr=mPnt actfuIitna, i_rsol q,ene r l .vis1 A so ;po.lng to th1e office of the~~~IA U3Vl h

- 61 - Annex 4

President is the General Secretary, responsible for legal affairs. Current FINDETER staffincludes 180 positions, of which 100 are in headquarters and 80 in the regional offices.

5. Administratively, FINDETER operations are decentralized to regional offices whichoperate within the guidelines and control of the national office. There are ten regionaloffices in the country, which are responsible for particular regions and which operate with ahigh level of autonomy, responding to the Vice President of Credit. Most credit applications(those under an established autonomous limit) are, therefore, decided within FINDETER'sregional offices by a Departmental Credit Committee, composed of a mayor, the chief of thedepartmental planning office, a delegate from the private sector, a delegate from the RegionalPlanning Councils (Consejo Regional de Planificacidn-CORPES) and a delegate fromFINDETER's regional office. Loan approval requires a unanimous vote of committeemembers. Regional officers are also responsible for technical assistance and supervision ofongoing operations.

Financial Structure and Policy

6. First-tier Intermediation. FINDETER operates as a financial rediscount entity,which means that it does not provide credit directly, but rather provides funds throughfinancial institutions which have a valid operating license granted by the Superintendency ofBanks. Therefore, a commercial bank or financial corporation is always involved, asintermediary, in the loan process. The intermediaries bear the credit risk. The spread theseintermediaries charge to each sub-borrowcr is determined competitively based on their ownassessment of this risk, up to an interest rate ceiling set by the Board of the Central Bank(Banco de la Republica) at DTF' + 5 percentage points. FINDETER can also act as afiduciary agency to channel funds to departments and municipalities.

7. FINDETER's Current Fmancial Situation. The financial condition of FINDETERis solid. In 1992, FINDETER interest income of Col$ 36.3 billion covered 2.6 times itsinterest expense of Co!$ 14.2 billion and the net financial margin of Col$ 22.1 billionrepresented 16% of average earning assets (Col$136.3 billion). FINDETER after tax returnon average equity of 9.4% was good. Administrative costs of Col$ 3.1 billion represented2% of average total assets (Col$ 144.2 billion), which is a relatively high mark but which isjustified by the project related works of FINDETER. At the end of 1992, FINDETER wasstrongly capitalized with a debt/equity ratio of 52/48 and its liquidity was amply guaranteedby short-term investment of Col$ 24.1 billion or 15% of total assets. As of December 31,1992, FINDETER had undisbursed operations for US$150 million and unused external creditfor US$114 million. To keep up its level of approvals and boost disbursing rates asbudgeted for 1993, FINDETER is planning to issue bonds in the Colombian stock market tocapture small amounts of new money, as needed.

8. FINDETER's loan portfolio is composed mainly of commercial banks whose loansFINDETER has discounted. Its portfolio is, therefore, subject to commercial risk. This riskis mitigated by the enforcement of prudential regulations of the Superintendency of Banks.FINDETER has now requested its external auditors to carry out a complete analysis of the

1. DTF is Colombia's market fixed-term deposit rate

- 62 - Annex 4

quality of its loan portfolio. The Secondary Education Project would represent no financialrisk, as no additional debt would be absorbed by FINDETER. Moreover, acting asadministrator of funds, FINDETER would receive a fee for the management of the loanoperations of the Secondary Education Project as well as an administration fee as fiduciaryagency of grant funds channeled through FIS.

9. Previous Bank Loans to FINDETER. FINDETER is presently involved inmanaging two Bank loans: the Water Supply and Sewerage Sector Project (Ln. 2961-CO,US$150 million) and the Municipal Development Project (Ln. 3336-CO, US$60 million).Both loans support credit lines to municipalities and regional entities. Bank's. experiencewith FINDETER has been sufficiently successful to warrant continued coopeiation andreliance on this agency.

10. Education Loans made by FINDETER. FINDETER's credit operations havefocused on urban infrastructure such as roads, water supply, and sanitation. However, morerecently it has begun to make loans in the education sector, and specifically, for secondaryeducation construction and rehabilitation projects. Currently, through a fiduciary agreementwith MEN, FINDETER is managing 16 loans to 33 municipalities, and has identified 94 sub-projects that amount to more than US$30 million. These secondary education projects arecofinranced through a combination of grants and loans.

FINDETER's Role in the Secondary Education Project

11. FINDETER would serve as FIS fiduciary agent for grant funding for schoolrehabilitation and basic equipment sub-projects, and would administer the credit line for newconstruction of schools. FINDETER would be involved in all stages of the project cyclefrom identification to approval and supervision, as well as participate in the initial promotionof the project among participating departments and municipalities. FINDETER's role ineach of these stages is discussed below and summarized in Table A4.2.

12. Promotion of MEP. The Project Coordinating Unit (PCU), with the assistance ofFINDETER regional offices, would coordinate this initial phase of the project. One of themain objectives of the promotion scheme would be to publicize the program in thedepartments and municipalities and attract the interest and willingness of the respectivegovernment officials to participate in it.

13. Assistance in preparation of the MEP. The preparation of the MEP is theresponsibility of the Municipality. However, since some municipalities do not have a stronginstitutional planning capacity, the MEN would provide training seminars in educationplanning for the Secretaries of Education staff in the departments and municipalities as aprelude to the preparation of municipal plans and sub-projects. FINDETER wouldparticipate in these seminars as trainers on financial aspects of the project, making sure thatthe MEP is compatible with the requisites of FINDETER, and that the MEP includes acoherent analysis of the municipality's overall financial viability. The seminars would trainthe Secretaries of Education staff in the departments and municipalities on how to use themanual required for the preparation of the MEP. Departmental Secretaries of Educationwould establish a technical support group that would work side by side with the municipaltechnical support group during the preparation of the MEP.

- 63 - ADm= 4

14. The technical support group in each department would assist the municipal technicalsuppo.t group in the process of identifying and formulating the MEP. The goal of thetechnical support groups is to help establish an integral and comprehensive investment planfor secondary education for, at least, the next two years, which would be technicallyjustifiable and financially and institutionally viable. For the preparation of the MEP, themunicipality and/or the department may request the advice of FINDEtER on the financialaspects of the MEP. It would be desirable for this to take place after the initial draft of theMEP has been developed and an approximate cost of the project is known. For thiscomponent, FINDETER would send promoters and technical staff from the regional office tothe municipalities to assess its creditworthiness and financial capability that the municipalitycould undertake for the proposed project.

15. Assistance In Sub-project Preparation. The identification process begins with thegeneral analysis of the MEP, and with a visit to the municipality that is requesting the loanand/or grant. A task manager from FINDETER would lead an identification mission inorder to define the arrangements for preparing and financing the project. The purpose of theidentification mission is to establish, together with the municipality, an investment plan thatthe municipality would undertake with the financial contribution of the program.

16. The preparation and identification of the project would follow the guidelines set up inthe preparation and presentation manuals of FINDETER, which are available in each regionaloffice. Specific guidelines for new constructions as well as for rehabilitation sub-projects arealready available and have been reviewed and accepted by the Bank.

17. Grants for pre-investment funding for architectural fees and other preparation needsfor sub-projects would be provided within the framework of MEP and managed byFINDETER as part of the sub-project. Tshis would significantly speed up projectpreparation.

Management of Financial Transfers for Sub-projects

18. The project provides two separate sources of funding to municipalities for schoolconstruction sub-projects: (a) grant channelled through the Social Investment Fund (FIS) forthe rehabilitation and remodeling of schools, including furnishings and equipment; and (b)loans at market rates for new school construction. Both would be administered byFINDETER. Table A4. 1. below summarizes the financial transfers for sub-projects.

- 64 - Annex 4

Table A4.1: Flnancial Transfers for Sub-projects

Financial ines New Construction and Rehabiitation/Remodelingby Source Expansion of Schools School Equipment

National Governnent 50%Loans_ ____

Grant National 30% 80%Government

Local Counterpart Minimum 20% Minimum 20%Funding

19. FINDETER will use two somewhat different procedures for processing financialtransfers for sub-projects depending on if they are school constructions or schoolrehabilitation and basic equipment. For school constructions sub-projects, FINDETER wouldfollow the same prc,edures it currently uses for other operations by which a project has todemonstrate it is justifiable and feasible in its technical, financial, institutional andenvironmental aspects. For school rehabilitation and basic equipment sub-projects,FINDETER would establish a network of consulting construction experts to help it assess indetail the rehabilitation requirements and the precise budget required. On the basis of theexisting MEP, the construction budgets, and some financial guarantees, procurement plan andexecution specifics would be sufficient for FINDETER take a decision on the allocation ofresources. The experts would be paid by the municipalities, who could make use of thefunding for architectural fees and other preparation needs mentioned above. This doublestep process, rather than a direct relation FINDETER-consultant, is considered necessary topreserve municipalities's responsibility towards the project preparation.

20. Local Counterpart Funding. Local counterpart funding must include a minimum of20 percent of the total cost of the project from funds of the municipality or department.These funds may include inter-governmental transfers or municipal income from its ownsources.

Evaluation and Approval of Sub-projects

21. School Constriction. The evaluation and approval process of educational financing(loans and grants) for school construction would be similar to those that FINDETERpresently follows for other sectors. This process involves a comprehensive review oftechnical, institutional, financial aspects, as well as determining eventual financial andeffectiveness conditions. This evaluation process is FINDETER's entire responsibility andwould be completed by the regional offices of FINDETER.

22. For the technical analyses of projects, FINDETER would acquire limited capacitythrough the use of consultants to judge current cases, or it could receive, upon request,support from the MEN and Departmental Education Secretariats. Moreover, FINDETER

- 65 -An= 4

and MEN would work together to create an evaluation manual in which critical points to besupervised and reference guidelines would be highlighted.

23. School Rehabilitation and Basic Equipment. The procedure for project presentationfor non-credit financiable sub-projects is designed to quicken the process The financingrequests would be presented by the municipality to FINDETER. The evaluation procedurewould be simpler, based primarily on short checklists and on the municipality feasiblebudget.

24. Loan and Grants applications above Col$ 650 million (US$929 thousand) areapproved by a national credit committee; below this amount, and up to ColS 200 million(US$286 thousand), they are approved by regional committees; below this amount, they canbe approved by internal administration. These thresholds can be periodically adjusted by theBoard of Directors of FINDETER. This same process would be used for the SecondaryEducation Project, with the exception that a delegate from MEN or from the DepartmentalSecretaries of Education would be invited to participate in the committees whenever sectorloan proposal is being considered. The first three projects of each regional office, regardlessof their cost, would be reviewed by the national office in Santaf6 de Bogota before approvalis granted. Subsequent sub-projects would be approved entirely by the regional offices, butwith periodic reviews performed by the national office. The World Bank would review sub-projects that exceed the autonomous limit threshold, set at US$1 million for the combinedresource application of loans and grant from one beneficiary, before they are approved byFINDETER.

Execution and Supervision of Sub-projects

25. General Aspects. Once sub-projects are approved, the municipalities would signdifferent agreements for loans and grants. Current FINDETER execution and supervisionprocedures, including field visits and disbursements based on progress reports, would befollowed for both loans and grants; however, procedures for grant disbursement would befaster since no financial intermediary would be involved. The main areas of monitoringperformed by FINDETER would be the following: (a) the procurement process, and (b) thenitial phase of preparing the administration and execution of the project. Promoters are

expected to contribute in this initial phase. Coordination with MEN's PCU is expected to becarried out on a permanent basis.

26. Procurement Process. The procurement process involving components managed byFINDETER through loans and grant would be executed by the borrowers, according with theagreements set by the World Bank and supervised by FINDETER. The arrangements forthis process include the review, and possible adjustment, of present standard bidingdocuments as well as the incorporation of some specialized ones (for furniture, for example)and of training manuals, which would serve as guidelines to the borrowers. FINDETERwould provide direct assistance to its clients and would monitor key events of the hiringprocess (approval of the bidding documents, review of proposals for contract awards, andoversee of corresponding contracts) for LCB. It would send cases over an agreed thresholdto the Bank.

-66- Annex 4

27. For rehabilitation and equipment sub-projects, a simple process that does not needFINDETER nor World Bank approval would be implemented; however, ex-post monitoringwould be done.

28. Disbursements. The disbursement procedures, both for loans and grants, would bethe same as those currently followed by FINDETER. Sub-loan and grant effectivenesswould be preceded by legal signature of the respective agreements and compliance of theeffectiveness conditions (among which are establishments of special accounts, conditionseventually set for financing approval and agreement with financial intermediary in the case ofsub-loans). In the case of loans, each payment would include a proportion of both the grantand the sub-loan as agreed in the financial plan. The disbursing scheme for this case wouldinvolve FINDETER anticipating funds to the borrower for the first three months of expectedexpenditures. Subsequent disbursements would depend on the physical and the financialadvance of the project and would also count on local counterpart funds becoming available.In the case of school rehabilitation or equipment, a first tranche of 60% would be advancedwhen complying with effectiveness, and the remaining as soon as the beneficiarydemonstrates the investment of agreed counterpart funding and meets physical targets. Inboth cases, the disbursement of all the counterpart finances, as agreed in the financial plan,would be a condition for disbursements of the final tranche of FINDETER funds.

Organization and Management of FINDETER for the Secondary Education Project

29. National Office. The main responsibility of FINDETER's National Office for theSecondary Education project is to coordinate and control operations and administer thefinancing lines. The present capacity at the national level should bc able to overcome theincreased administrative demands with the current structure and staff. However, upgradingor adjusting existing instruments would be needed for control systems and disbursements ofnew operations. At the national level, the Vice President of Credit, responsible of lending,would manage the project.

30. Regional Offices. For the implementation of the proposed project, FINDETERwould use its present organization structure and operational capacity in seven of its regionaloffices which correspond to the 87 selected municipalities. These offices have the technicaland administrative capacity to carry out a range of tasks from project identification andpreparation to appraisal, approval and supervision, including reviewing procurement andapproving disbursement requests. FINDETER's field staff is usually reinforced byconsultants that are specialized in particular areas.

31. The Secondary Education project would require regional offices to handle a significantincrease in the number of operations in the education sector, where they have had limitedexperience. This implies the need to upgrade its operational capacity to manage sub-projectsoperations. This would be met by: (i) strengthening the regional offices, including personneltraining on the education sector, (ii) preparation of various sector materials, including sampledocuments to be used in the preparation of the project and sample terms of reference, and(iii) hiring consultants for each intervening regional office, to serve as project promoter andto provide operational sector support. The promoter's responsibilities would be, inter alfa,the following:

- 67 - Annex 4

(a) participate in the development of the Municipal Education Plan (MEP), assessingprimarily its financial viability;

(b) help in project identification process;

(c) ensure that projects presented meet technical, economic, financial and institutionalrequirements, established previously by FINDETER;

(d) aid municipalities through the application process up to, and including,implementation of the project; and

(e) ensure adequate coordination with MEN.

COLOMBIASECONDARY EDUCATION PROJECT

Table A4.2: Roles & Responsibilities of FINDETER & Other Institutions Involved in the Preparation and Execution of the MEP & Sub-projects

..PHASE FINDETER MEN DEPARTMENT MUNIC[PALITY RESULT

Paricipates in the promotion of the Responsible for this phase Signs agreement with Depatmcnt Get departments andPRObM(MlON AND MEP with MEN. Trains regional Promotes the MEP at departmental o prepare MEP. Receives municipalities toCOMMITMENT TO fficc promoters. & municipal levels. Signs raining. Prepues MEP with the xpress commitmwt

PARTICIPATE IN agreemnents with departments to Mistance dhettechnical support to participate in theME0 prepar MEP. roup from Deparmenal MEP.

_______________ -_-_____________i____-_Secretary_of Education.Administers technical assistance Trains Deputmental technical Departmental Secretary of Resvonsu,i for this Mhse EP prepared.

--M2P 0 - - funds for project preparation. If support group in charge of Education appoints technical ppoints technical support groupPREPARATION requested by the municipality or preparing MEP. If requested support group in charge of n charge of prepaing MEP.

department, gives advice on participates in the training of the supervising MEP repares MEP.financial aspects of the MEP, for municipal technical support group preparation. TrainsCivil Works component. in charge of preparing MEP. municipal technical support

--_____________ -_________________________ group in preparing MEP.eparing_MEP_Responsible w/ the municipality Not involved. Responsible with FINDETER MEP is eligible to

Visits the municipality tbat is nvites FINDETER to the e financd,loanSUB4PROJECT equesting the loan and/or grant. unicipality to assess fuiancial and/or grant oc

IDENTIFICATION valuates creditworhiness and nes for the MEP civil woirks application made by- tablishes investment plan for the malponent. the muaicipality to. municipality. FINDETER.

R _esonsible for this phase 1 he Municipal Council appnwes loan and/or gmantOnce MEP is approved, it is Endorses the MEPr. MEP following endorsemint pproved for the

layed to the Regional office of from the Department Secrary of MEP.MEP LOAN INDETER. Depending on cost, Education. Relays MEP civil

ANDIOR Grant ational office or regional office works component to FINDETER.APPROVAL eviews loan and/or grant

0 ~~~~pplications for approval.

Supervises the project execution. Monitors execution of the MEP Responsible for this Phase roject implementedPROJECT Provides Monitoring dat to PCU through the Monitoinn and Administers the finances of the

KX ICUTION according to established agrements. Evaluation Division of the PCU. Project.

69 - ~~~~~~~Annue 4- 69 - Appendlx 1

COLOMBASECONDARY EDUCATION PROJECT

FINDETERGENERAL ORGANIZAlIONAL STRUCTURE

ASSENVILY OF EXTERNALSHAREHOLDERS AUDIT

CREI| OD Of N ATIONAL CREDIT1|COMMITTEE IRD FCTOR c |CNITTEE

IPRESIDENCY

INTERNAL PLANNINGCONTROL OFFICE OFFICE

COMMUNICA- ONS

E-PRESIDENCYVCYP| I VICE-PRESIDENCY OFFICE C!

0EVELOPME4T | VI CEREDIT E ! ' ADMINISTRATION FINANCE SECRETARY GENERAL

CREDIT DIV..TECHNICAL EAST i ANCAl JUOICIA

ECONOMIC DIV. |j _ , S,CN,

REGIONALOFFICES

ATLANTIC COASTCREDIT DIVISIOW

REGIONALOFFICES

Approvd by the Boaud of Directrs Octobe 15, 1992

-70- Annex 5

COLOMBIA

SECONDARY EDUCATION PROJECT

Vouchers for Private Secondary Sehools

A. Introduction

1. One of the major goals of the Secondary Education Project is to increase the coverageand improve the quality of secondary education. Given that the project hopes to enhancemunicipalities' ability to plan secondary education, the voucher program is a short-termsolution to some of the problems encountered by secondary education at the local level.There is a shortage in public school capacity for grade 6, while there is idle capacity inprivate schools. However, the poorest children that attend public primary school cannotusually pay for private education. Therefore, their alternative is to stay out of theeducational system. The principal benefit expected from the voucher program is to expandenrollment of low-income students in private secondary schools.

2. The Government of Colombia has accepted that vouchers are a desirable short-termsolution and has, therefore, promoted a voucher program for the past two years. The aim ofthe government is to increase the enrollments of secondary education from 46 percent to 70percent by creating 546,000 new positions during the tenure of President Gaviria, from 1991to 1994. The voucher program is a component of this strategy to increase secondaryenrollments. MEN had initially decided that 25,000 new students should enroll in theeducation system, at grade 6, through the voucher program each year. However, since theprogram started in 1992 and not in 1991 as planned, two unique measures were taken for the1992 school year only: distribution of 72,000 vouchers, and enrollment in grades 6 and 7.Students that participate in the program would be guaranteed the financing of their entiresecondary education on condition that they do not fail a grade.

3. The agency mainly responsible for ad.ninistenng the program would be theColombian Institute of Educational Credit and Training Abroad (ICETEX). ICETEX is apublic institution with close ties to MEN, but maintmins legal and administrative autonomy aswell as it own financial and capital base. An important characteristic of ICETEX for theimplementation of the voucher program is its decentralized structure. Currently, 22 RegionalOffices administer all services for in-country studies, as well as most procedures for overseascandidates.

B. Size of Program and Criteria for Distributior. of Vouchers

4. The Government's program aims to distribute up to 412,000 vouchers over the 1991-95 period. In 1992, 72,000 vouchers were distributed. The Government hopes to distributenationally 25,000 vouchers annually over the 1993-95 period. The Secondary EducationProject would supplement the Government's 25,000 vouchers--which are for the country as awhole--by funding not more than 5,500 for the 87 municipalities in the project. With this

- 71 - Ann5

total number of vouchers, local governments could make good inroads on reducing dropoutLThis amount is equivalent to some 55,000 vouchers during the period 1994-97, based on aprojected 5 percent average dropout rate among voucher recipients.

Table AS.1: Distribution of Vouchers Per Year

Year 1st Year 2nd Year 3rd Year 4th Year VouchersI ______ ______ ______ ______ ______ Accumulated

1994 5,5001 5,5001995 5,500 5,2252 10,7251996 5,500 5,225 4,964 15,6891997 5,500 5,225 4,964 4,716 20,405

Total 22,000 = _ 52,319

5. All 5,500 vouchers would be distributed among the 87 pilot municipalities accordingto demand, with an upper limit determined for each municipality according to the totalnumber of vouchers available annually. Under the project, each municipality would berequired to program its requirements for vouchers within the framework of their secondaryeducation plans and to verify both the demand and the availability of places in privatesecondary schools. Municipalities will be encouraged to develop strategies to target thevouchers, particularly those funded by the project, to those 5th grade students in publicschools, expected to drop out of the system. By keeping any portion of these students inschool, the voucher program will have a significant impact on increasing access andenrollments at the secondary level.

6. Municipalities would determine the total number of vouchers needed in accordancewith their own repayment capability. However, every municipality must contribute 20percent of the cost of the voucher. The remaining 80 percent would be paid by the nationalgovernment. The MEN would sign agreements with each participating municip?lity settingforth the terms and conditions of the fellowships and the financial and administ-ativearrangements. Municipalities would determine the number of vouchers required, certify thatprivate schools meet the requirements for participation, and jointly monitor the progress ofthe prograam with ICETEX. Upon approval of the MEP, municipalities would work outexecution arrangements for the voucher sub-project with ICETEX.

Yearly reduction of dropout in public schools 5,500.

It was estimated that about 5% of the beneficiaries vuld leave the educational system, therefore,renouncing the voucher program.

- 72 - Annex 5

7. If the demand for vouchers exceeds supply, a raffle would take place, with ICETEXin charge. The raffle would be done electronically in the presence of the students selected toparticipate in the program.

C. Criteria for Selecting Students

8. To decide which students would be awarded a voucher, ICETEX would call a studentmeeting at least six months before the end of the school calendar year.

9. ICETEX and MEN would work together in the design of a student registration form,to be distributed free of charge. The student must present this registration form to enroll inthe program. The registration form would be obtained at the regional offices of ICETEX, atprimary public schools, or secured from an official advertisement in a national newspaper.

10. Students eligible for the vouchers would have to comply with the followingrequirements:

(a) to come from the poorest socioeconomic strata (strata I and 2). To certify this,students would present their household's public service receipts and/or the certificateof residency issued by the police station, Center of Immediate Assistance (CAI), orparish;

(b) to be a candidate for grade 6;

(c) to present the certificate of completion of fifth grade at an official school or non-profitprivate school located in the poorest socioeconomic strata;

(d) to be not more than 15 years old when enroHling in grade 6, with proof of a photoI.D. (preferably, the tarieta de identidad or birth certificate);

(e) to fill out a registration form;

(f) to present a certificate of acceptance to grade 6 at a private school; and

(g) to maintain a minimum grade point average of 6 over 10 throughout the program.

11. The voucher would automatically be renewed if an academic certification is presentedto ICETEX demonstrating achievement of the required average. The voucher would becancelled if the student fails a grade or leaves the educational system.

D. Criieria for Selection of Schools

12. ICETEX would process the application of the private schools interested inpartcipating in the program. Private schools that operate in public schools facilities can notreceive funds from the project. The private schools should present ICETEX with thefollowing information:

- 73 - Annex 5

(a) the number of students enrolled in grade 6 and student-teacher ratio for this grade forthe last two years;

(b) the student capacity of the school for the grade 6 level;

(c) current number and total capacity of classrooms and any other space used foreducational purposes; and

(d) cost of tuition and monthly fee.

13. Private schools that offer complete secondary education must meet the followingcriteria:

(a) to have a abachillerato' degree granting license (Licencia de Aprobaci6n de Estudios)for at least five years;

(b) to cerfify that the school has not been sanctioned by the Regulatory Tuition and FeesBoard (Junta Reguladora de Matrfculas y Pensiones); and

(c) t present tae ICFES exa-i-uon: xr o'e u , thr past Curee years.

14. Private schools that offer partial secondary education and new schools must meet thefollowing criteria:

(a) they must have an operating license (Licencia de Iniciaci6n de Labores) and guaranteethat it will obtain, from the respective Secretary of Education, the "bachillerato'degree granting license (Licencia de Aprobaci6n de Esnudios) within two years;

(1) the status governing the school should be legalized according to the legal regulationsestablished for this purpose;

(c) they must present cash flow statements guaranteeing sufficient funds for thefunctioning of the school;

(d) they must have curriculum vitae (C.V.) of the Director and the legal representative )fthe school;

(e) teachers employed by the school must hold a minimum standard of 7 according to thewescak4fdn docente" and/or have a university degree in Educational Science; and

(f) new schools cannot enroll more than 5% of the total voucher awarded to themunicipality if the municipality has other schools that offer complete secondaryeducation.

15. ICETEX would require private wchools participating in the p mrogm to provide thefollowing quality indicators, to meet ninimum eligibility criteria:

- 74 - Anne 5

(a) ICFES would provide the classification of schools according to the state examinationsscore by municipality, excluding the score of 'elite schools. " The schools thatparticipate in the program must have a score equal to or better than the public schoo'sin the municipality to participate in the program;

(b) the school should meet minimum facility requirements such as laboratories, library,halth, and playgrounds determined by the local Secretary of Education; and

(c) the Secretaries of Education of each department, with the municipal supervisor andthe regional offices of ICETEX, would inspect the schools to verify theirinfrastructure conditions, capacity to enroll new students, and student-teacher ratio.

16. Schools participating in the program would partLvipate in a sample survey evaluationmeasuri,g the quality of education in the private schools. Students would be tested onlanguage and math skills at the beginning and end of their school years to measure value-added. The Bank would insist on the improve*ent of quality indicators as a condition fordisbursement.

E. Implementation Arrangements

17. The current voucher program is being administered by ICETEX under an agreementsigned with the MEN. ICETEX in turn has signed an agreement for the management of thefunds fr vouchers with the Banco Central Hipotecario (BCH). A National CoordinatingCommittee, under the chairmanship of the MEN's Vice Minister, and consisting ofrepresentatives of the above mentioned agencies will provide overall guidance to the voucherprogram. Under thc proposed project these arrangements will remain in place with theexception of the management of funds. The Social Investment Fund (FIS) will take over forMCEN responsibilities for the channelling of funds for vouchers to departments andmunicipalities. To this end, it will sign agreements with ICETEX, BCH's fiduciary agent,and departments and municipalities participating in the project. The responsibilities of eachof the institutions involved irn the program are described below.

Ministry of Education

18. The functions of the Ministry of Education are the following:

(a) to coordinate the activities of all participating entities at the Central Level;

(b) to sign an agreement with municipallties that want to participate in the program andexpress their willingness by making available matching funds for the program life;

(c) to convene meetings for the National Coordination Committee for Vouchers;

(d) to design a methodology to consolidate statistical information from departments andmunicipalities regarding S and 6 grade enrollments to determine the capacity inprivate schools;

- 75- Annex -

(e) to give ICETEX, departmental Secretaries of Education, and municipalities a schedulefor implementation of the program;

(f) to review the manual produced by ICETEX describing the program to enableICETEX to train its personnel;

(g) to sign an agreement with ICETEX for the administration and monituring of theprogram;

(h) to sign an agreement with BCH for the management of program funds;

(i) to provide ICETEX and BCH with information needed to implement the program;

(j) to transfer funds to BCH; and

Ok) to pay ICENDX for services rcndered.

FIS

19. The functions of the FIS are the following:

(a) to sign an agreement with ICETEX, BCH's fiduciary agent and departments andmunicipalities for the management of program funds; and

(b) to transfer funds to dtiartments and municipalities.

National Coordination Committee for Vouchers

20. All entities involved in the program would be represented on the Committee. TheCommittee would meet once a month. Its functions would be the following:

(a) to serve as a convening body for the entities involved in the voucher program;

(b) to program the financial resources of the program;

(c) to design and elaborate policies for the voucher program;

(d) to stipulate criteria for the promotion of the program;

(e) to define criteria for voucher raffles;

(f) to monitor the program; and

(g) to study and recommend appropriate measures or sanctions to departments andmunicipalities receiving funds from the program when the agreements are notcomplied with.

- 76 - Annex 5

F. Monitoring and Evaluation

ICETEX

21. The functions of ICETEX are the following:

(a) to promote the program;

(b) to guarantee that enough personnel is available to work on the program, both at thenational headquarters and at each regional office;

(c) to train personnel at the national headquarters and at each regional office in themanagement of the program;

(d) to call a school meeting six months before the end of the school calendar so schoolscan enroll in the program;

(e) to call a student meeting at least four months before the end of the school calendar sostudents can enroll in the program;

(f) to register schools that want to participate in the program and guarantee that theschools meet the program's required standards for participation;

(g) to process registration forms of both schools and students;

(h) to publish the list of students and schools selected to participate in the program inlocal newspapers, post them at regional offices, and send notices to the schools andstudents who are selected to participate in the program;

(i) to design, print and distribute the voucher;

(j) to coordinate a raffle if the number of students exceeds the available vouchers;

(k) to request that schools issue a certificate stating that students have completed thegrade;

(1) to monitor the program throughout its implementation;

(m) to periodically issue information reports to MEN; and

(n) to inform MEN and BCH of the name of beneficiary, school attended, andmunicipality.

Department Secretaries of Education

22. The functions of the Departmental Secretaries of Education would be the following:

- 77 - Annex S

(a) to arrange for municipalities to sign agreements with MEN to participate in theprogram;

(b) to promote the program in conjunction with ICETEX;

(c) to consolidate information send from the Municipal Secretaries of Education; and

(d) to monitnr the pgm, conjunctiot w4h IICIE-X.

Municipal Secretaries of Education

23. The functions of the Municipal Sccretaries of Education would be the following:

(a) to sign agreements with departments;

(b) to compile information concerning idle capacity in private secondary schools for 6thgrade and send it to the Departmental Secretaries of Education;

(c) to compromise municipal authorities to provide matching funds worth 20 percent oftotal cost of vouchers distributed;

(d) to collaborate with ICETEX in compiling data about participating schools andstudents; and

(e) to oversee and guarantee the efficient functioning of the program by inspectingschools, supervising recipients and reporting irregularities to MEN, ICETEX,Department Secretaries of Education, and BCH.

Primary School Directors

24. The functions of the Primary Public School Directors are the following:

(a) to promote the program;

(b) to nominate students of socioeconomic strata 1 and 2; and

(c) to facilitate information about students to ICETEX, municipalities, and Secretaries ofEducation.

Banco Central Hipotecario (BCH)

25. The functions of the BCH would be the following:

(a) to administrate program finances;

(b) to manage accounts of participating schools, with vouchers paid to these schoolswithin the timeframe stipulated in the program;

- 78 - Annex S

(c) to receive the voucher from the beneficiaries, and within 20 days send a report toICETEX for verification; and

(d) to inform and train ponnel about the program.

26. For the program to meet its objectives, a monitoring system would be needed. Thesystem must ensure that the beneficiarie of the progrw are the correct ones. The ProjectCoordinating Unit (PCU) would contract a private consulting firm that would be responsiblefor continued monitoring of students and for supervising schools involved. This firm shouldevaluate the impact of the project by systematic sampling of program participants andinstitutions.

27. To monitor the schools, visits should be made to verify that they have increased theirenrollments and installed capacity, that the quality of education is sufficient, and that theinformation about the tuition and monthly fees is correct. The information needed formonitoring would be data on the increase in secondary education enrollment, increase ininstalled capacity, and budgetary strengthening, among others. For this task the PCU shouldcoordinate a national evaluation with MEN Planning Department.

28. Similarly, the program itself would have its own monitoring mechanism. Themunicipality, along with the departmental secretaries of education, would also be responsiblefor program monitoring. Both would enter into a contract with MEN, in which, in exchangefor 80 percent financing of vouchers, they would guarantee that the targets and goals aremet. The municipality through the supervisor and/or jefe de nucleo would perform on-siteinspections every three months to ensure progress of the program. It would relay progressreports _very three months to the departmental secretaries of education, whose funct'von is tuguarantee the smooth implementation of the program. The departmental secretaries ofeducation would also provide progress reports every three months to MEN.

29. Parallel to this, the regional offices of ICETEX and BCH should provide progressreports every three months to MEN on the implementation status of enrollments andfinancing, respectively. The ICETEX and BCH national offices would relay these reports toMEN. It is MEN's responsibility to verify that the above reports do not containcontradictory information.

30. A sample evaluation survey measuring the quality of education would be conductedfor Calendar B schools in 1993. To compare the quality of education received by a studentwith a voucher going to private school and one going to a public school, students would betested for improvement in language and math skills. The results of the exams would becompared to each other to see if there are significant differences in levels and quality oflearning.

G. Procedure for Payment of Voucher

31. The procedure for the payment of vouchers is the following: first, MEN woulddeposit the money allocated for the voucher program at the national branch of BCH, thismoney being equal to the 80 percent of the total cost of the whole program, while themunicipalities participating would contribute the remaining 20 percent of the cost of the

- 79 - Anne

voucher, with this money being deposited at the same time. Second, the national branch ofICETEX would infor. the national branch of BCH of what cti and schools have beenawaded vouchers so the regional branches of BCH can arrange to open accounts for privateschools involved in the program. ICETEX would then distribute a list of all schools in thecity involved in the program. Finally, the shools in the program would open an account atthe regional office of BCH.

32. The payment procedure of the voucher to the schools would be as follows. Thestdent would receive three receipts from ICETEX. The student then gives the receiptsperiodically to the school directors to be cashed at BCH. The first receipt would be given tothe school at the beginning of the school year to cover tuition and three monthly paymnelts;the second receipt would cover four monthly payments; and the final receipt three monthlypayments. The student is able to transfer schools at any of the payment intervals.

H. Costs

33. The exact cost of the program depends on the cost of the tuition and monthly paymentfee and the number of vouchers distributed. The approximate cost of the program from 1994to 1997 is US$ 7.865 million, of which the national government would contribute 80 percentand the municipalities the remaining 20 percent. During the 1993 school year, the averageprice of the voucher was approximately 100,000 pesos (US$143). The secondary schoolsparticipating in the program would be paid the exact amount registered with the departmentalSecretaries of Education.

Table AS.2: Voucher Program Cost for the 87 Pilot Municipa!ities

Vouchers Cost of Voucher ProgramYear Accumulated (in US$) '

%994 5,500 786,5001995 11,000 1,573,0001996 16,500 2,359,5001997 22,000 3,146,000

IDW 550 7.865,00

a One dollar = 700 pewos.

I. Administrative Costs

34. The administrative costs correspond to those incurred by ICETEX by: (a) calling ameeting of students and schools to participate in the program; (b) publicity efforts; (c)implementing the voucher system; and (d) monitoring the program. According to theagreement signed between the MEN and ICETEX, the services to be paid to ICETEXcoesond to 2.5 percent of the value of the vouchers awarded. For 1992, the first phase ofthe program, this amounted to 121.7 million pesos.

- 80 - Annex S

J. Flnanca Inplication for Local Government

35. There is no guarawtee that the mayors or the next national administration wouldassume responsibility for the program. Therefore, municipalities should accept the pr%ramto ensure continuity. A mechanism to ensure municipal compliance with the program isthrough the new laws for government spending. The new constitution and supporting lawshave established that any spending decisions by local or national governments must bepreceded by the enactment of a law mandating these expendi-ures. Therefore, muiicipalitiC3that wish to participate in this program should enact municipal laws (ordinanzas municipaks)that establish funding requirements. This would make the municipality bear both civil andcriminal responsibility if it fails to execute the voucher program in its jurisdiction as agreed.

36. A second way of increasing incentives for performance by municipalities is byimposing conditions stating that to receive additional vouchers the municipality must havepaid the previous year's vouchers. The municipality that does not pay the required 20percent for the previoinq vear woiiid ne sanctisnedJ lv nnt ra^ the gemcnt's 0opercent for the next fiscal year. However, the municipality must continue to pay for theeducation of the students already enrollea in the program.

- 81 -

Annex 6

COLOMBIA

SECONDARY EDUCATION PROJECT

Educational Quality Enhancement

Introduction and Conceptual Framework for Project Design

1. Colombia has schools that are recognized as offering good instruction and schoolswhere educational achievements are low because instruction is inadequate. Duringpreparation of this project an ethnographic study was carried out to identify thecharacteristics of those schools that are recognized as offering good instruction (which alsohave high achievement in the ICFES national exams), and schools where achievement is low.Principals in eight cities were interviewed and asked to explain why their schools wereconnidered either good--or not so good--and several meetings of principals were organized toprou-c a iist of tne characteristics of the "good" schools. Results of these meetings showedthat the good schools had the following characteristics: (a) a vision of the goals andobjectives they wanted to achieve which was well developed, had been thoroughly thoughtand was shared by the teachers, parents and staff; (b) a principal who provided strongleadership; (c) well defined internal organizationi and a disciplined environment conductive tolearning; (d) a staff development program and procedures for providing feedback to teacherson their nerffrmance; (e) clear standards fAr the su-denA ad pro--uAres fo. providing 'Lhmwith feedback that they could use to improve their performance; and (f) a school managedbudget that allowed the school principal to procure essential instructional and managerialresources.

2. The study led to the conclusion that to improve instruction and educationalachievement it would be necessary to guarantee that schools could develop as institutions andcould meet the characteristics mentioned above. It was also recognized that schools, and notsimply teacher training, textbook provision or the management system should be the key unitof analysis and of project intervention. The analysis and conclusions of the study carried outin Colombia were backed-up by the extensive literature on organizational development thathas been recently emerging as well by research on school effectiveness and schoolimprovement carried out in industrialized countries, as by the few studies on effectiveschools that have been carried out in developing countries.2

Objectives and Strategy

3. The Educational Quality Enhancement Component has three main objectives: (a) toimprove internal and external efficiency of secondary education; (b) improve the educationalachievement levels of secondary school students in mathematics, Spanish, social and natural

1. See Project Files, particularly Jesus Mejia's study.

2. Soo Marbine E. Lockheed and Henry M. Levin (eds.): Effective Schools in Develoggin Countris,World Bank. Jue. 1991

- 82- Annex

sciaces; and (c) provide minimum necessary conditions in schools to optimize the personaland social development of students.

4. The strategy adopted to achieve these objectives consists of the followinginterventions: (a) support for School Improvement Plans (SIP); (b) in-service training fortechs and school administrators; (c) funding for textbooks; and (d) funding for otherinstuctional materials and equipment.

5. The strategy utilizes two major planning and delivery systems for these interventions:(a) School Improvement Plans which provide direct assistance to each public secondaryschool; and (b) Municipal Education Plans (MEP) which provide assistance to each school,but collectively through the preparation and execution of MEPs.

School Improvement Plan (SIP)

6. SIPs will be the principal vehicle for quality enhancement. A model for uie SIP to beprepared by each school has been developed by the ML and piloted in several schools inMedelin and other municipalities. The model has been incorporated into an SIP Manualwhich was reviewed in draft during appraisal and would be prepared in final form for projectimplementation. School principals and teachers would be responsible for preparing an SIPfor their school which would consist of the following elements:

(a) diagnosis of the quality of education provided by the school and an analysis of thefators cotr.ibuting to Mu lity. Quality would beea..sured in termrs of internalefficiency (i.e. repetition, promotion and dropout indices); achievement (averagegrades per grade level and average scores of the school on bi-annual nationalassessments and ICFES national examination), and personal and social development ofstudents (i.e. levels of violence, drug addiction and other measures, including"positive" indicators);

(b) improvement objectives for each quality indicator expressed in measurable terms thatwill show cognitive achievement goals (for example average scores in nationalassessments and the ICFES national examinations), institutional goals (for examplenumber of teachers with credentials, or activities to define the internal organization ofthe school), and other targets (for example actions to integrate the school andcommunity);

(c) intervention strategies to deal with the problems identified in the institutionaldiagnosis;

(d) budget for proposed interventions and complementary resources to be provided to theschool by the MEP, such as textbooks and equipment;

(e) staff development plans consisting of seminars workshops and formal courses that thestaff would attend to help the institution meet the proposed objectives; and

(f) evaluation procedures to be used internally in the schools to evaluate the proposedplans.

- 83 - Annex 6

7. The MEN will encourage all secondary schools to prepare SIPs, but deing so wouldbe strictly voluntary and depend upon the motivation of school directors and faculty to devotethe time and effort required. MEN would help train regional officials in the use of themanual so they can advise and assist schools in preparing their SIP. The regional officials tobe trained would be identified by the departmental Secretaries of Education. The trainingcourse would be developed during project implementation.

8. The SIP wGuld require the approval of the school Principal, the head of the ParentAssociation, and a representative of the teachers. Once officially approved, it would beeligible for funding. Funding would be provided by a fiduciary agent/s through the FIS.Each SIP would be funded for e maximum of US$6.00 per enrolled student annually for aninitial two-year period. Disbursements would be made by the fiduciary agent/s on areimbursable basis following submission of approved expenditures by the school.

9. Each SIP will be evaluated annually by the school itself and towards the end of thesecond year by a regional committee. The committee's assessment will determine whichschools receive two-year renewals of their SIPs.

la-Service Teacher and Principal Training

10. The Ministry of Education is in the process of developing a catalogue with trainingopportunities. It will describe courses for teachers offered at present by universities andother recognized institutions and guidelines for the preparation of staff development plans atthe institutional level. The catalogue is based on a study that the Ministry has been carryingout which shows that there are more than 100 institutions offering teac&-r training courses ina diversity of areas. Schools would be encouraged to select courses that would help theirstaff achieve the institutional objectives.

11. School principals are key in any quality improvement project, and in this project theyare key for to the development and implementation of the institutional plans. Their trainingneeds and their qualifications are very varied and cannot be met through standard "supply"driven courses--but through courses that they themselves help to design and deliver.CORODEA, the Antioquia School Principal Association has already been designing anddelivering courses specially designed by school princip31s for school principals and has beensuccessful in getting principals to participate and be interested in the courses offered.CORODEA has also been assisting other associations of school principals around thecountry. The project would support CORODEA's efforts to join the InternationalAssociation of Principal Centers, which has members from about 20 countries and will helpCORODEA and other associations of principals in Colombia to identify their training needs,training procedures, mechanisms to evaluate school improvement efforts and state of the artviews on school improvement processes.

12. The costs of teacher and principal training would be covered under the SIP of eachschool.

-894 - Annex 6

Textbooks

13. Another major project intervention to enhance the quality of education will be fundingfor textbooks. As a condition of participation in the project, municipalities would berequired to purchase a basic set of textbooks for use in their schools. Textbooks and otherinstrucdonal materials would be funded as sub-projects of Municipal Education Plans (MEP).As municipalities complete the preparation of their MEPs and textbook sub-projects, theywill be able to obtain co-financing from the project for textbook purchases.

14. The funding of textbooks would be for loan schemes, only. Schools would lend thebooks to students for use during the school year so they can be reissued the following year.MEN would encourage municipalities, if affordable, to purchase four textbooks per studentin each grade, out of the average of eight required. The recommended texts would covermathematics, language, science and social studies. Teachers manuals might also be funded.The project would also encourage municipalities to adopt a cost-recovery scheme fortextbook rentals to cover the costs of replacements, which are estimated to be every threeyears.

15. The project budget provides funds for the purchase of about 4.2 million textbooks bya total of 87 municipalities over the seven-year period of implementation. The totalquantities required to enable schools to achieve a ratio of 4 textbooks to 1 student (includingreplacements due to deterioriation and loss) and to purchase new text.book after three years,were roughly calculated as follows:

Grades 6 to 9 ......... 3.3 million textbooksGrades 10 to 11 ......... 0.9 million textbooks

Although these quantities are large in the aggregate, the amount purchased from year to yearwould very depending upon the municipalities which are ready to purchase Lextbooks. Insome years quantities might be large, in others, very limited. Overall, the requirements ofall but few municipalities are relatively small and fragmented by grade level and subject.While municipalities like Bogota, Medellin, and Cali have secondary school enrollments offrom over 200,000 to 46,000, the majority of municipalities have public school secondaryenrollments below 4,000 students. Moreover, these enrollments by grade level (6th through11th) range on average from 26% to 10% of the total. This implies that for mostmunicipalities, the number of textbooks required by subject and grade would be in the rangeof 1,040 to 400 for the majority of municipalities and would be quite varied. Publicsecondary school enrollments (1991) by municipality and grade level are provided inAppendix 1.

16. The procuremert procedures for textbooks have been designed on the basis ofinformation and recommendations provided in an in depth study carried out during projectpreparation by Econometria, on textbook use and textbook manufacturing in Colombia.3The proposed procedures consist of. (a) a two-step process of procurement; (b) selection and

3. Analysis y Perspecivws del Mercado de Textos y Materiales Educauivos Para la EducacidnSecundaria, Informe Final (Econometria, May 1993).

- 85 - Annex 6

purchase of textbooks by municipalities; and, (c) distribution of textbooks by publishers ortheir distributors. The procurement process would be administered by the FIS with technicalinputs provided by MEN in (a). The responsibilities for managing the selection andpurchasing of textbooks would be contacted to a fiduciary agent by FIS.

17. Two-step Procurement Process. The procurement of textbooks would be carried outin two steps. In the frst step, MEN's procurement/fiduciary agent would prequalifysuppliers on the basis of a technical evaluation of sample textbooks. All publishers, bothwithin and outside of Colombia would be invited to submit secondary school textbooks forevaluation. The textbooks would be in four subject areas: mathematics, language, socialstudies and science and each for grades 6 to 11. The evaluation would be carried out by anindependent committee appointed by MEN. The books approved by the committee wouldmake them eligible for purchase under the project.

18. The technical evaluation would consist of two kinds of assessments: (a) substantive,and (b) technical and financial: the substantive a_s.sement which would focus on the qualityof the textbook and its pedagogic aspects, relevance to the curricula, language use, andoverall appropriateness for the nation's public schools; the technical and financial assessmentwould include an evaluation of the printing characteristics (compliance with physicalstandards), printiag fitdlities, and the financial situation of the publisher.

19. T he first step process would allow prospective bidders who are classified as"marginally acceptable' to make adjustments to comply with the physical standards and/orimprove the substantive educational, presentational, curricula, and pedagogic aspects of theoffered textbooks. Once a textbook is approved, suppliers would not need to re-submit it forevaluation. However, new textbooks for project financing would require evaluation andapproval before being included in the solicitation of prices in the second step.

20. The second step would involve soliciting prices from suppliers selected in the firststep. Bids would be sought from suppliers annually or semi-annually for different levels ofquantites f.o.b. each municipality or on a 'natioral price basis." MEN's procurement/fiduciary agent would evaluate bids and select suppliers within a price range of up to 20%above the price of the lowest evaluated bidder. MEN would then inform the municipalitiesand procurement/fiduciary agents of the list of approved textbooks and selected supplierswhose bids had been accepted. This would be done in the form of a catalogue with c.i.f.prices offered by suppliers.

21. Selection and Purchase of Textbooks. The selection and purchase of textbookswould be done annually by the municipalities as they complete the preparation of their MEPsand textbook sub-projects (para. 13). Municipal officials and public school directors wouldcompile a list of their textbook requirements for each course and grade level utilizing thecatalogue distributed by MEN. The MEN would encourage municipalities to standardize thetextbooic selections for all public schools to help them obtain better prices through bulkpurchases, order replacements, and distribute books among schools. Mandatorystandardization of textbooks at the school level should also be promoted by MEN. In orderto achieve maximum bulk purchse price advantages offered by publishers, a fiduciaryagent/agents would compile the lists of textbook requirements from the municipalities andarrange the purchases on their behalf.

- 86 -Annex 6

22. Textbook Distribution. Textbook distribution would be the responsibility of thepublishers or their designated distributors, or independent contractors hired by themunicipalitieL The cost of distribution of textbooks f.o.b. each municipality withappropriate packaging, would be incorporated in the prices offered by publishers at the timeof bid submission. Payment of suppliers would be made conditional upon confirmation ofsatisfactory delivery to each municipality.

23. Municipalities would be responsible for the redistribution of textbooks to schools.This would involve receiving boxes from different publishers, checking for adequate packingand quantities, and repackaging books per school. The procurement/fiduciary agent wouldbe asked to assist the municipalities in organizing themselves for this task, which must beperformed satisfactorily, if textbooks are to reach the schools.

24. Rationale for Proposed Procedures. The rationale for these proposed proceduresderives from the following considerations:

(a) the proposed two-step process would enable the municipalities to obtainmaximum advantages in the procurement of their textbooks. It opens thetextbook market to all qualified suppliers and creates the possibilities ofimproving the pedagogical and physical qualities of textbooks offei-d in themarketplace. Provided the bidding by suppliers is well within the 20% of thelowest bid range, municipalities/schools would have a wide selection of booksto choose from f r purchase. Further, while centralized procurement oftextbooks has been unsatisfactory in the past--madnly due to poor distributionof textbooks--the proposal to obtain bids for c.i.f. each municipality shouldsolve this problem.

(b) The procedure to permit secondary school teachers or schools to choose theirtextbooks is consistent with current practice in Colombia. MEN dues notdictate which textbooks should be used in the schools, although it doescollaborate with publishers to ensure that the subject matter and learningobjectives in their textbooks are consistent with the curriculum. According tothe Econometria study, an estimated 48% of teachers and 39% of schooldirectors select textbooks, and 76% of teachers choose workbooks. MEN alsorecognizes the reality that most teachers have strong preferences for sometextbooks and would not readily use new textbooks with which they are notfamiliar. It is therefore essential that the procedures offer real choices oftextbooks for purchase.

(c) The procedure to require all municipalities to purchase their textbooks througha fiduciary agent is necessary, if the national and local governments are tomaximize their bulk purchasing possibilities.

(d) Distribution must be made the responsibility of publishers or their distributors,since they already have distribution channels to most of the municipalities.Unless the publishers can guarantee delivery, there would be great uncertaintyas to whether or not textbooks would every reach the municipality or school.

- - Annex 6

hstructlonal Materials and Equipment

25. The project would provide cofinancing to municipalitia for the purchase ofinstructional materials and equipment identified in ther MEP. The matals and equipmentto be financed by the project would be specified by the MEN in an Instructional Materialsand Equipment Catalogue. This Catalogue would be finized in the first year of project

mccutiou and distributed to municipalities along with the textbook catalogue. Theinstructional mateals and equipment are intended to be supplementary to or replacementsfor the basic materials and equipment in each school. Consequently, each municipalitywould have to careflly assess their needs in the light of their existing and planned facilities.

26. The MEN proposes to fund the materials and equipment requirements of two differentkinds of education center: Educational Resource Centers (CREP) in each secondary school;and Municipal Education Resource Centers (CREM) which would serve a group of schools(teachers and students) collectively.

27. The CREP would contain a basic minimum collection of instructional materials andequipment consisting of educational aids such as dictionaries, atlases, maps, slides aiAprinted materials such as basic curricula documents, prcduced by the MEN.

28. The CREM would contain the following elements: (a) a reference library, youthliterature, documentaries, etc.; (b) educational aids such as maps, slides and graphs, models,cassette and video recorders, transparencies; (c/ equipment such as TV, Betamax or VHS,recorders, projectors, photocopiers, etc.; (d) music equipment; and (e) integrated laboratoriesof natural sciences, mathematics and technology.

29. Each municipality would need to determine how best X organize its instructionalprograms in a cost-efficient and effective manner. Consequently, they would need todetermine whether to equip fully each and every secondary school or to establish CREMs.The MEN would develop criteria for determining whether a CREM or individual CREPs arethe best alternative for meeting each municipality's educational materials and equipmentrequirements.

30. The procurement procedures for materials and equipment will essentially follow thosefor textbooks.

- 88 - Ann= 7

COLOMBIA

SECONDARY EDUCATION PROJECT

Management and Institutional Strengthening

1. Objctives. The management and institudonal strengthening component of t.heproposed project is designed to: (a) improve the management and institutional capabilities ofthe departments and municipalities and in MEN, through the acoption of a prognam preparedby MEN, for implementing the decentralization of education; (b) improve quality andreliability of educational statistics; (c) assist MEN in conducting national assessments ofstudent achievement in math and reading at the secondary school level; and (d) conductpolicy and evaluation research.

Management and Institutional Strengthening for the Design of the Municipal EducationPlans (MEP)

2. Training and orientation in education planning focusing on the use of the MEPmanuals would be provided to: six permanent staff from the MEN's Planning Department,which would provide support to the PCU Promotion Programming and Operational SupportDivision (PPOD); five permanent staff from Credit Vice Presidency of FINDETER nationaloffice and at least two employees from each regional office; five permanent staff from theNational Planning Department; and five staff from the PPOD, who v'ould also receivetraining on how to become trainers of trainers. The PPOD staff members are responsible formaintaining the cohesion of the working groups, integrated by one representative from theabove organizations. Table A. 1 shows the number of employees trained at differentgovernment levels.

Table A.1 Number of Employees Trained at Different Government Levels

Government Institu : Number of TotalLevel Employees

Trained

National Planning Department 6 6MEN PCU - PPOD 5 5DNP 5 5FINDETER Headquarters 5 5

Regional Offices 14 14

Departmental Secretary of Education 5 55

Municipal Secretary of Education 4 348

Total 438

- 89 - A_x 7

3. The MEP Manuals are designed to guide municipalities in the elaboration ofeducational plans. These manuals are hands-on-oriented, rather than theoretical, andincorporate the local realities of the Colombian municipalities. This pedagogical training iscrucial to ensure effective implementation of the project and to guarantee a 'multiplier'effect in taining efforts in this area.

4. The staff trained in the preparation of the MEP would be divided into four technicalworling groups of three to four members, corresponding to geographical regions. The firstgroup would cover Antioquia, Caldas and Risaralda, representing the northwest; the secondgroup would cover Atlantico, Bolivar and Magdalena, representing the Atlantic Regior.; thethird group would cover Cundinamarca, Santander and Norte de Santander, representing thecentral ,.gion; and the fourth group would cover Narihio and Valle, representing the south.Each working group would be responsible for the preparation of an average of 22 MEP.

5. The technical working groups would organize at least three training workshops totrain staff from the Departmental and Municipal Secretaries of Education. From eachDepartmental Secretaries of Education the technical vorking group would train at least 5staff members, for a total of at least 55 staff members throughout the eleven departmentsinvolved in the project. Each Municipal Secretary of Education should send four or atminimum two employees to be trained along their Departmental-level colleagues. A otal of348 employees from the 87 municipalities involved in the project would be trained throughthis process. The departmental and municipal employees attending these training workshopswould constitute the educational technical support groups, at their level of government, andwould be responsible for preparing the MEP.

6. Strengthening of Departmental Secretaries of Education. Each DepartmentalSecretary of Education would create a technical support group of the five members whoattended the training workshop to prepare the MEP. The Staff from the PCU and thetechnical working groups would organize three workshops for this purpose.

7. Fwst Workshop. Staff from the technical working groups, led by the PPODmember, would visit each Departmental Secretary of Education for at least two ddys topromote, provide guidelines, and attract the interest of local government officials toparticipate in the preparation of the MEP. These workshops would be based on presentationsby the PPOD stiff of three topics: (a) the Secondary Education Project; (b) responsibilities ofeach level of government; and (c) statistical data required for the elaboration of the MEP.Those presentations would be followed by a plenary discussion intended to answer anydoubts participants may have. If the Secretary of Education is committed to participate inthe program, it must sign an agreement with MEN for this purpose, create a departmentaltechnical support group to work on the MEP, and collect relevant education data based onwhat was said in tne workshop, from at least one pilot municipality prior to the secondworkshop to be conducted by the PCU.

8. Second Workshop. The staff from the technical working groups would tiain thedepartmental technical support group on how to use the MEP manual, using a pilotmunicipality as an example, and on how to train municipal technical support groups toproduce their own MEP. This workshop would cover two topics: (a) how to diagnose theneeds of the local education sector; and (b) how to determine local priorities. Given the

- 90 - Annx 7

nature of this workshop, the methodology would be much more interactive and would makeextensive use of woridng group discussions, role playing simulations.

9. Third Workop. The workshop would be much more practical and would make ueof available educational statistics. Its goal is to evaluate initial results of the project. Itwould evaluate three topics: (a) goals and priorities decided upon; (b) financial constmintsfacing the municipality; and (c) other priorities facing the municipalities. The result of thisworlshop should be used as blueprint of the MEP of the pilot municipality.

10. StrnthenIng of Municipal Secretaries of Education. The departmental tehnicalsupport group would train the municipal technical support group of the municipalities whichcould not send representatives to the MEN workshops, or which require further institutionalassistance, with the PPOD providing this further assistance. The municipal technical supportgroups would be responsible for gathering the relevant data and for preparing the MEP.

11. Once completed the MEP is presented to the Municipal Council for approval, and tothe Secretary of Education of the department for endorsement. Once approved, the Mayorwould contact the different implementing fiduciaries participating in the Secondary EducationProject, according to the needs of the MEP.

Quality Improvement of Education Statistics

12. MEN Statistics Division. The project would help improve the quality and reliabilityof education statistics. This would be achieved through hiring of technical advisors whowould provide on-the-job training to permanent staff responsible for gathering informationand performing analyses related to education statistics. The technical advisors would assistthe permanent staff to design a decentralized information system which would help inplanning, administration and evaluation of education statistics throughout the 87municipalities participating in the project. A manual and computer package describing thestandardized procedures for data collection would be made available to the Secretaries ofEducation in the Department and Municipalities.

13. Departmental and Municipal Secretaries of Education. The technical advisors andthe trained MEN permanent staff would organize workshops to train departmental andmunicipal planning staff at Secretaries of Education to demonstrate how the decentralizedinformation system works.

14. Computer Hardware and Software. The projc zt would fund small amounts ofcomputer hardware and software in both MEN and in the departments and municipalities toimprove administrative efficiency. Computer training would also be provided for relevantstaff members. These inputs will be defined by the PCU in technical assistance missions andtraining workshops.

COLOMBIASecondary Education Project

Table 1: Ppulation of the 87 Paricipatip Pilot Municpalities_MUNICIPALITIES POPULATION- MWNlCiPAMSLITE POPULATION J MUNICIPALITIE VULATIO1

Over 500 thousand 6Municipalitiesl 20 to 49 thousand 33 Municipalitie5 Below 20 thousand 24 MunicipalitiesBogota 3,974,741 | Piedecuesta 48,2861 Sabana de Torres 19,956Medellin 1,468,089! Candelaria 44,4001 San Vicente 19,643

Cali 1,350,565 Cinchina 43 684 ! Marsella 19,6141Barranquilla 899,781 Florida 42,8431 Puerto Colombia 18,994'Cartagena 531,426 Caldas 42,158 Mahates 18,931

Jamundi 42,158i ElTambo 18,282!1 00 to 499 thousand 14 Municipalities Copacabana 40,309 Buesaco 18,248'

Cucuta 379,478 j El Cerrito 40,188 Palestina 16,738Bucaramanga 352,326| Arjona 37.533 Caqueza 16,486

Manizales 299,352 1 Chia 36,956 Santo Tomas 16.206Pereira 287,999 Turbaco 34,205 Filadelfia 14,905Pasto 244,7001 Pradera 34,117 Ginebra 14,209

Santa Marta 218,205 Baranoa 33,647 Subachoque 14,180Palmira 214,395 Marinilla 31,310 Sabanagrande 13,719Bello 212,861 Maria La Baja 30,849 San Pedro 13,430

Soledad 165,791 Dagua 30,646 San Estanislao 12,350Floridablanca 143,824 La Estrella 29,918 Mosquera 12.344

Itagui 137,623 Carmen de Viboral 29,132 Yotoco 12,183 %oCienega 120,253 La Ceja 28,766 Restrepo 12,031Soacha 109,051 Barbosa 28,623 Soplaviento 11,365

Dos Quebradas 101,480 Villamaria 28,426 El Retiro 11,126Rionegro 27,488f La Cumhre 10,875

50 to 99 thousand 11 Municipalities Madrid 27,0471 Tangua 10,295Buga 94,753 Sandona 26,7081 Polonuevo 9,874

Envigado 91,391 La Virginia 24,558 Total 12,501,574Villa del Rosario 63,615 Guacari 24,285

Rio Negro 56,195 Girrardota 293,684Zipaquira 55,370 Guame 23,269Malambo 52 5841 Amaga 21,054Facatativa 51,639 Ca,ica 20,749

Sabanalarga 50,925 Sabaneta 20,491Giron 50,5701 Sibate 20,049

Yumbo 502631 = = __

tal Population of the 87 Pilot Municipalites 12,656,58. tal Population of Colombia 29,879,000

44.5% of total country population is going to participate in the project

SOURCE: Census 1985

COLOMBIASecondary Education Project

Table 2: Population by Department of the 87 PartiScatingPilot MunicipalitiesANTIOGUIA MAGDALENA NORTE SANTANDER

19 Municipalities Population 2 Municipalities Population 2 Municipalities PopuiationMedellin 1,468,089 Santa Marta 218.205 Cucuta 379.478Bello 212,861 Cienega 120,253 Villa del Rosario 63,615Itagui 137,623 TOTAL 338.458 TOTAL 443,093Envigado 91 391 TOTAL DEPARTMENT 773,479 TOTAL DEPARTMENT 883.884Rio Negro 56.195 43.7% of Dept. pop. included in the project 66.6% of Dept. pop. Included in the projectCaldas 42,158Copacabana 40,309 CALDAS RISARALDAMarinilla 31t310 6 Municipalities Population 5 Municipa-ities PopuiationLa Estrella 29.918 Manizales 299,352 Pereira 287,999Carmen de Viboral 29,132 Cinchina 43,684 Dos Quebradas 101.480La Ceja 28,766 Villamaria 28,426 Santa Rosa d Cabal 60,696Barbosa 28,623 Neira 24,895 La Virginia 24.558Girrardota 23,684 Palestina 16,738 Marsella 19.614Guarne 23,269 Filadelfia 14,9t0 TOTAL 494,347Amaga 21,054 TOTAL 428,000 TOTAL DEPARTMENT 625,451Sabaneta 20,491 TOTAL DEPARTMENT 838,094 62.8%b of Dept. pop. included In the projectSan Vicente 19.643 51% of Dept. pc'. included in the projectSan Pedro 13,430 SANTANDEREl Retiro 11,126 CUNDINAMARCA 6 Municipalities Popd-ationTOTAL 2,329,072 11 Municipalities Population Bucaramanga 352,326TOTAL DEPARTMENT 3,888,067 Bogota 3,974,741 Floridablanca 143,82459% of Dept. pop. included in the project Soacha 109.051 Giron 50,570

Zipaquira 55,370 Pledecuesta 48,286ATLANTICO Facstativa 51,639 Rlonegro 27.488

9 Municipalities Population Chia 36.956 Sabana de Torres 19,956Barranquilla 899,781 Madrid 27,047 TOTAL 642,450Soleded 165.791 Cajica 20,749 TOTAL DEPARTMENT 1,438,226Malambo 52,584 Sibate 20,049 44.6% of Dept. pop. Included In te projectSabanalarga 50,925 Caqueza 16.486Baranoa 33,647 Subachoque 14,180 VALLEPuerto Colombia 18,994 Mosque.a 12,344 15 Municiapitlies PopulationSanto Tomas 16,206 TOTAL 4,338,612 Cali 1.350,565Sabanagrande 13,719 TOTAL DEPARTMENT 5,356,779 Palmira 214,395Polonuevo 9,874 80.9% o1 Dept. pop. included in the project Buga 94,753TOTAL 1,261,521 Yumbo 50,263

OTAL DEPARTMENT 1,428.601 NARINO Candelaria 44,40088.3% of Dept. pop. included in the project 5 Municipalities Population Flor dq 42,843

Pasto 244.700 Jamundi 42.158BOLIVAR Sandona 26,708 El Cerrito 40,188

7 Municipalities Population El Tambo 18,282 Pradera 34.117Cartagena 531,426 iuesaco 18,248 Dagua 308646Arjona 37,033 Tongua 10,295 Guacari 24,285

urbaco 34,205 TOTAL 318.233 Ginebra 14.209Marle La Baja 30,849 TOTAL DEPARTMENT 1,019.233 Yotoco 12,183Mahates 18,931 31.2% of Dept. pop. includ3d in the project Restrepo 12,031San Estanislao 12,350 La Cumbre 10,875Soplaviento 11,365 TOTAL 2,017,911TOTAL 676,159 TOTAL DEPARTMENT 2.847,087TOTAL DEPARTMENT 1.197.623 70.8% of Dept. pop. included in the project 0056% of De gopjncluded in heprojot =_ _____ _______ _ _

Source: Census 1985

- 93 -

COLOMBIA Annex 8Secondary Education Project

Tabe 3: BasicEducationDalator87Pa ldsinaPiot ltlesr~~~~~~~~~rvt IX Toao- uieF.otw iate Toa1 ulcToa rvu

Seoonda Sondary Secondary Seoondary Secondary SecondaryEnrollments Enrollment Schools Schools Teachers Teachers

INTOQUIAMedellin- 86,751 60,893 127 142 3,334 2Sel!o 12,693 10,096 19 17 468 360Itagui 8,188 4,014 12 10 296EnV;CadO 5,185 607 7 12 228R;O O 5,069 1,220 l 3 204

o 70 4! ____3_83__ 2 118 73- 22 1,244 8 2 1 3 42Mar;n;lla 2,857 3 7 2 131 431La EsaS 1,645 4 5 55 68Cw en detl Viboral 2,17 0 5 0 90 ILa Ce;a 1812 9 3 2 59 1Barbosa 1,844 300 4 1 71; 1 3

_Girrard_ta 1,738 884 3 3 611 57Guame 1,103 411 4 1 1 39 191Amagag 1,5-80 __ __ _ 0 474 --- oIlSabaneta 1,284 1,588 2 31 46 _ 78SanVicente 803 0 5 0 49 0San Pedro 930 492 2 2 39 2EjRet;ro 746L 0 3 0 31 0Subtotal 143,560 90,174 234 207 5,525; 4,115

LT1ATW 1CO _ ____ I_ __ I__ _ _ __ _ _ _

!BarranMuilIa 21,696 77,516 40 289 1,019_ 3682Soledad 14,2841 8,998 13T 121 498_ 3131,Malambo 1,1301 2,045 31 43 42_ 1194Sabanaarga 3,3541 2,545 5 81 142- 121Iaranoa 3,0901 755 7 5 133 37!Puerto Colombia I 1,065 252 3 4 45 28

jo Tomas 1 2 4621 499 3 5 102 25e 1,331 101 2 2 55 10

l.onuevo 887 - 2 0 32 0IISubtot I 492991 92,711 781 329 2,068 4,335

BOU VAR____Cartagena 27,138 33,720 32 109 1,184 1,307Ar;Ona I 2,1161 8291 6 5 84 52IITurbaco 1,803' 21813 71 8 70 129Maria La Bala 14951 51 ol 581 Mahates 1,223 - I 01 51 011SanEstanislao _1,226 - I s 52 0Laviento I 1,089 -__L _ 5 I 01 53 0'

Subtotal 360901 37,362 651 1221 1,552 1,4381

|CALDAS I _ __ _ I _ __ _ I _ _ _ - _1- _-- _ 1-_I _ II

IIManiZaleS I 26,697 10,0501 106 51 1,557 625Crhinchina _ | 3,740 51 i 10 1 180 10

|ilCa;~ar | _ 2,248 298 4 1 118 18INera I 1,678 - 8 0 112 01Pealstina 1,139 |2 0 48 02Filadelfia 914 I 41 0 52 01Subtotal 36,416 10,399 1341 53 2,067 6S3

I8 NU I. 1

ILPasto I 21,142 13,847 35 23 1,265 733901 - 3 O 8 0|____Tambo _ 618 - 2 __ 0 j 39 0

___________ 5701 - 2 0 ° l 39 1 ° 232 - 2 0 211 0

23,463 13,847 441 1,4S 7331

- 94 -

COLOMBIA Annex 8Secondary Education Project

Tab's 3: Basic E ation D for 87 Particll tina Pilot M ciDaities.UIr F ob vateP i TtlDl Total Prlc 05wu

Secondary Secondary aeoonfay Secondary Secondary SecondaryEnrollments Enrollments Schools Schools Teachers Teacheu

CUND ltW Bogota 212,787 286.669 199 .a6Z 9,073 13,087

_oacha 5,018 7673 8 23 241 333'lpaquira 5,206 1,894 4 7 239 98F acataiva 4,104 2769 4 18 184 101

th_11661 17605 125 1o8nMadrid 677 2,962 2 12 29 147

ajica __1,607 754 2__ 5_ _ 46 62Sibaie __ 1,011 683 2 3 6 _ 37C-aueza 817 699 2 2 46 21SubacPoque 816 225 1 21 441 13Mosquera 1,538 2,058 2 3i 71 75Subtotal 235,242 308,146 229 703 10,124 14,082

_G_DAE _NA

Marta 16,072 11,326 52 70 761 598Ci0 a 6,161 1,367 19 141 251_ 68Subtotal 22,233 12,693 71 84 1,012j 66

N. SANTANDER _ _ _ I_ _

Cucuta 27,692 17,967 46 87 1,151 73Villa del Rosario 2,493 _ 53 8 31 97 36Subtotal 30,185 18,520 54 901 1,248 l1og

RISARAL-DA E1Pereira 1 24,436 6,28 55 27 1,223 358Dos Quebradas 4 4,887 1,272 9 21 176 52iStaRosadelCabal| 3,745 576 7 3 195 46|La Virginia | 2,205 - _ 851 0Marselia 1,190 -4 3 o 7,3ubtotal 36,46 8,676 79 32 17S4

BucarT!a2a I 27,071 27,7741 42 981 1,265 12

iFloidablanca 3,744 4,2751 17 151 151 17717tlGiron I 3,266 9701 12 41 143 35il

lPiedeCuesta 4,027 428 14 31 153i 32_ _

RionroI 877 116 5 1 371 7de Torres 8741 r 31 01 37 01

Subtotal 39,859 33,5631 121 1,786 1,520

VALLE I _ I I_I _ IICali 46,885 101,452 76 280 2,051 4,464Paimira 13,980 9,615 35 39 42 5271Buga 6,592 4,502 9 14 2841 230Yumbo 4,471 994 4 4 1661 77

Candelaria 2,215 507 41 3 9_41__ 35PFlorida 1,925 1,594 4 1 7i 891 92_1Jamundi 2,520 1,9j 7 4 891 _ 69ElCerrito 3,425 809 7 1 1221 41,Pradera 1,848 901' 2_ 2i 86_ 37iiDagua 1,226 169 31 1_ 8919gljGuacarn 1,731 355 i _ 4 21 _1

Ginebra 1,185 5 ° 61 __o_

Yotooo 903 55 2 11 45 Restrepo 399 558 2 2i 14i 291LaCumbre 650i - I 3O 33 Sulbtotal 89,955i 122,5401 167 360i 3,753 5,650TOT-AL 742,765 7486311 1,2481 2124 32.333 33,807source: Ministry ot toucaon StaUsics uivision. .irto wn ca cuXed trom ff ctoa oiectrom m 600,3 fo m; I 91.

95 Annia 8

COLO1MBIA

SECONDARY EDUCATION PROJL%T

Departmuat Pmrtiipatidg La the Secondary Educaion Projec

Tabie4: Net Primary Education Enrollment Ratio1990

Departments

Antioqula

Atlantico

Bogota (D.C.)

Sollvar

Caldas

Cundinamarca

Magdalena

NariAo i

Norte Sandander

Risaralda

Santander r -Valle i

0 20 40 60 80 100 120

Tabses: Net Secondary Education Enrollment Ratio1990

Departments

Antloqula _

Atlanticoogot&i (D.C.) C )

solivar _ I.

Caldas

Cundinamarca iMagdalena I

NarlfAoc

Norte Sandander

Risaralda 1 1Santander

Valle

0 10 20 30 40 60 60 70 80*euvt0v PISA de Aertlu,a ducativeUS"I-t94 Stalletteal Anae,ONMP-US"-Sl 201I .ar.n tmr. 1et9

- 96 -

Annex 8

COLOMB1A

SECONDARY EDUCATION PROJECT

Depirtmbets Partkipating in the Seoodary Educato Proet

Tabe6: Primary Pupil Teacher Ratio1990

Departments

Antloquia

Atlantico

Bolivar

Caldas

Cundinamarca

Magdalena

Nari,o

Norte Sandander

Risaralda

Santander

Valle

a 10 20 30 40 50 60 70

Table 7: Secondary Pupil Teacher Ratio1990

Departments

Antioqu ia

Atlantico

Bolivar

Caldas

Cundinamarca

Magdalena

NariAo

Norte Sandander

Risaralda

Santander

Valle

0 5 10 15 20 25 30 35 40Source: Plan de Aperturs Educa'vas91-:194 Stati2tical AnnexONP-UDS-DiC 2818 March 19, 1991

-97- Annex9

COLOMBIA

SECONDARY EDUCATION PROJECT

ProJect Coordination UnitStructure and Functions

A. Role

1. A Project Coordinating Unit (PCU) is going to be created within the MEN to providecoordination and support for project promotion, planning, financing, procurement,implementation, monitoring and evaluation. The PCU would be directed by a ProjectDirector/Coordinator, reporting to the Vice-Minister of Education. The PCU would consistof three divisions: (a) Promotion, Programming and Operational Support; (b) TechnicalSupport and Institutional Development; and (c) Monitoring and Evaluation. The PCU wouldbe an integral part of the MEN and to the extent feasible would draw upon MEN'stechnical and administrative staff and resources to implement the proposed project.

B. Functions and Responsibilities

2. The functions and responsibilities of the three divisions of the PCU are the following:

(a) Promotion Programming and Operational Support: (i) to design, prepare,coordinate and implement the promotion of the project at all levels; (ii) to inform thedepartments and municipalities of the project objectives and procedures forparticipation; (iii) to prepare, distribute and procure agreements to participate in theprogram from the departments and municipalities; (iv) to prepare and inform theannual work plans to all entities involved in the program; and (v) to identify andresolve programming and operational problems.

(t) Technical Support and Institutional Development: (i) to provide technical assistancein preparing municipal plans in the areas of planning, educational quality enhancementand civil works; (ii) to respond to institutional strengthening necessities that appearduring the lifetime of the project; (iii) to procure educational materials and equipmentand provide training on procurement to departments and municipalities; and (iv) toprovide orientation and training for department officials in preparing municipal plans.

(c) Monitoring and Evaluation: (i) to compile, analyze and maintain all informationrequired for project monitoring and evaluation; (ii) to establish and maintain theproject's management information system; (iii) to handle all administrative aspects ofthe project, including the elaboration of guidelines for the project participants; (iv)review investment plans and proposals approved at the departmental level; (v) toestablish and maintain project accounts; (vi) to monitor project implementation by theimplementing agencies; (vii) to conduct monitoring and evaluation studies; and (viii)prepare reports on expenditures and arrange annual external audits.

-98 - Annex 9

C. Staffing Requirements

3. The PCU would be staffed by current MEN staff and external professionals. Theproposed staffing would consist of: (a) a full-time senior Director/Coordinator; (b) 3 full-time professionals with experience in their rspective professional fields, preferably withbackground in project implementadon, as Heads of the three divisions; and (c) a total of 13full-time profesionals would be made available to work in the PCU, and 28 part-timeprofessional staff from the two directorates of the MEN would support the three divisions ofthe PCU as needed.

UNnTs Unit Professionals Support TotalHeads | PCU (full-time) Staff l

Promotkon, Programming 1 5 2 8and Operational Support

Technical Support and 1 4 1 6Institutional Development

Monitoring and Evaluation 1 4 1 6

Total 3 13 4 20

4. The PCU would use the Ministry's existing infrastructure to implement projectactivities. However, to facilitate project administrative and financial management by thePCU, MEN would recruit a fiduciary agent. Provisions are made in the project forpurchasing the furniture and equipment for the PCU as well as for covering its stafI:ngrequirements and operating costs, through this fiduciary agent.

5. The PCU Director would closely coordinate project management with the Director ofEducational Planning and the Director of General Education to: (a) prepare the project'sannual workplan; (b) assign responsibilities for project implementation; (c) agree on theallocation of MEN staff resources; and, (d) collectively monitor project implementation. TheVice Minister of Education would also chair regular meetings of the project's seniormanagement.

D. Procurement Advisor: Services

6. Procurement advisor/s in the Technical Support and Institutional DevelopmentDivision would provide participating municipalities technical and administrative assistance inorganizing tendering, based on standard bidding documents developed for the project. Theywould also offer training to municipalities in procurement to expedite project implementationand build local capacity.

-99 -

COLOM A ABMex 10SECONDARY EDUCATION PROJECT

TABLE 1: COS-I BY CATEGORIES OF KPENDrrURES

Sunmary Accounts Cost Surwary

Peso USS X Total.............................. .......................... X Foreign Bast

Local Foreign Total Local Foreign Total Exchange Coasta.............................. ............................................. ........................ .......................................

I. INVESTMENT COSTS...................

A. Civil Works1. Rehabilitation Existing 4701.1 2014.7 6715.8 6.7 2.9 9.6 30.0 7.22. New Constr.Existing Fac. 10120.9 4337.5 14458.5 14.5 6.2 20.7 30.0 15.43. New Constr,Addit.Enrotl. 7644.7 3276.3 10921.0 10.9 4.7 15.6 30.0 11.74. ArchitecturaL Fees 1729.3 0.0 1729.3 2.5 0.0 2.5 0.0 1.8

................................... ...... ............. .................. ................................ ....................

Sub-Total 24196.1 9628.6 33824.7 34.6 13.8 48.3 28.5 36.1B. Furniture

1. Repairs 1512.0 1008.0 2520.0 2.2 1.4 3.6 40.0 2.72. ExparJ.ion (New Units) 504.6 336.4 841.0 0.7 0.5 1.2 40.0 0.9

.............................. ........................... . ................. ..................................................... ..........

Sub-Total 2016.6 1344.4 3361.0 2.9 1.9 4.8 40.0 3.6C. Equipment

1. Electronie Equipment 217.0 1953.3 2170.3 0.3 2.8 3.1 90.0 2.32. Science Laboratories 3188.4 1366.5 4554.9 4.6 2.0 6.5 30.0 4.93. Technology Laboratories 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

.............................. ........................... . ................. ........................ .......................................

Sub-Total 3405.5 3319.8 6725.2 4.9 4.7 9.6 49.4 7.2D. Educational Mater;als

1. Teaching Aids 207.4 1866.4 2073.7 0.3 2.7 3.0 90.0 2.22. Textbooks 13099.8 3274.9 16374.7 18.7 4.7 23.4 20.0 17.53. Library Books/Refer.Texts 5014.8 1253.7 6268.5 7.2 1.6 9.0 20.0 6.7

............... .............................................. ........................... .................................................

Sub-Total 18322.0 6395.0 24717.0 26.2 9.1 35.3 25.9 26.4E. Studies 2688.0 672.0 3360.0 3.8 1.0 4.8 20.0 3.6F. Technical Assistance

1. Expatriate Consultants 0.0 840.0 840.0 0.0 1.2 1.2 100.0 0.92. Locat Consultants 630.0 0.0 630.0 0.9 0.0 0.9 0.0 0.7

.............................. ........................... . .................. ........................ .......................................

Sub-Total 630.0 840.0 1470.0 0.9 1.2 2.1 57.1 1.6G. Vouchers (Fellowships) 5239.5 0.0 5239.5 7.5 0.0 7.5 0.0 5.6H. School Improvement PLans 8169.0 2042.2 10211.2 11.7 2.9 14.6 20.0 10.9I. Project Management 953.4 238.3 1191.7 1.4 C.3 1.7 20.0 1.3J. Project Administration 2290.4 0.0 2290.4 3.3 O.C 3.3 0.0 2.4

.............................. ............................................. ..................................................... ..........

Total INVESTMENT COSTS 67910.5 24480.4 92390.9 97.0 35.0 132.0 26.5 98.7.............................. ........................... . ................. ..................................................... ..........

II. RECURRENT COSTS...................

A. Operation & Maintenance1. Equipment 56.7 510.3 567.0 0.1 0.7 0.8 90.0 0.62. Furniture 56.7 37.8 94.5 0.1 0.1 0.1 40.0 0.13. Buildings 374.8 160.6 535.5 0.5 0.2 0.8 30.0 0.6

Sub-Total 488.2 708.7 1197.0 0.7 1.0 1.7 59.2 1.3.............................. ............................................. ..................................................... ..........

.............................. ........................... . ................. ..................................................... ..........

Totat BASELINE COSTS 68398.7 25189.2 93587.9 97.7 36.0 133.7 26.9 100.0Physical Contingencies 1332.2 558.6 1890.8 1.9 0.8 2.7 29.5 2.0Price Contingencies 8180.9 3052.5 11233.4 11.7 4.4 16.0 27.2 12.0

............................. ............................... ........................... ....................................... ..........

Total PROJECTS COSTS 77911.8 28800.3 106712.1 111.3 41.1 152.4 27.0 114.0

VausScldb..... ....... .... ...... / .1.1..................................................................

Values Scaled by 1000000.0 - 4/13/1993 11:59

Annex 10-100-

COLOAMIASECONDARY EDUCATION PROJEr

TABLE 2: PROJECT COMPONINS BY YEAR

Totals Including ContirjenciesPeso

1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 Total

A. INCREASINS COVERAGE 793.0 4157.2 6393.4 8837.9 9111.9 9394.3 6352.1 45039.7B. EXPANDING ACCESS 798.1 822.8 848.4 874.7 901.8 929.7 639.0 5814.5C. EDUC.QUALITY ENHANCEMENT 2346.2 4658.8 9053.1 20647.1 5432.1 3471.3 1038.8 46648.0D. MGT & INSTIT. STRENGTHEN. 598.9 1206.5 1953.2 2598.0 1237.8 896.4 719.2 9209.9

.................................................................................

Total PROJECTS COSTS 4536.2 10845.4 18248.6 329`7.6 16683.5 14691.7 8749.1 106712.1

..................................... ............................................................................... ,,,,__

Totals Including Conti,ogenciesusS

................................ ....................................................................................... ..............

1993/94 1994/95 1995/96 1996/97 19"W7/98 1998/99 1999/00 Total=========:====a===s=========:=:===:===s:==as========:::::: =:z= …-a== =2==t=

A. INCREASING COVERAGE 1.1 5.9 9.1 12.6 13.0 13-4 9.1 64.3S. EXPANDING ACCESS 1.1 1.2 1.2 1.2 1.3 1.3 0.9 8.3C. EDUC.QUALITY ENHANCEMENT 3.4 6.7 12.9 29.5 7.8 5.0 1.5 66.6D. MGT 8 ".'ST!'. STRENGTHEN. 0.9 1.7 2.8 3.7 1.8 1.3 1.0 13.2

....... .......... -.................................. ... .... .... ..... ............... .. ... ...... ... ...

Total PROJECTS COSTS 6.5 15.5 26.1 47.1 23.8 21.0 12.5 152.4

Values Scaled by 1000000.0 4/13/1993 11:59

- 101 -

COLOM3L1A Annex 10SECONDARY imuCAnOm Pmoncr

TABLE 3: SUMMARY ACCOU.5 BY EAR

Peso

Sluamry Aceounts by Year

lose Costs Foreign Exchange

193/94 19"4195 1995/90 1996/97 1997/96 19W/99 199/00 Totat X Amount

1. INVESTMENT COSTS...................

A. Civil Works1. tehabltation Existirn 134.3 671.6 1007.4 1343.2 1343.2 1343.2 873.1 6711.3 30.0 2014.72. New Constr.Exlsting Fec. 289.2 1445.8 2168.8 25W1.' 2891.7 2891.7 1879.6 14458.5 30.0 4337.53. New Constr.AddIt.Enroll. 218.4 1092.1 1638.2 2164.2 2184.2 2184.2 1419.7 10921.0 30.0 3276.34. ArchitecturaL Foos 34.6 172.9 259.4 345.9 345.9 345.9 224.8 1729.3 0.0 0.0

Sub-total 676.5 3382.5 5073.7 6764.9 6764.9 6764.9 4397.2 33824.7 28.5 9628.6B. Furniture

1. Repairs 50.4 252.0 378.0 504.0 504.0 504.0 327.6 2520.0 40.0 1008.02. Expansion (New Lnits) 16.8 84.1 126.2 168.2 168.2 168.2 109.3 641.0 40.0 336.4

Sub-total 67.2 336.1 504.2 672.2 672.2 672.2 436.9 3361.0 40.0 1344.4C. Equipment

1. ELectronic Equip tnt 108.5 217.0 434.1 1085.2 217.0 10t.5 0.0 2170.3 90.0 1953.32. Science Laboratories 455.5 683.2 911.0 911.0 911.0 455.5 227.7 4554.9 30.0 13e6.53. Techno&ogy Laboratories 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub-total 564.0 900.3 1345.0 1996.2 1128.0 564.0 227.7 6725.2 49.4 3319.80. Educational Moterials

1. Teaching Aids 103.7 207.4 414.7 1036.9 207.4 103.7 0.0 2073.7 90.0 1866.42. textbooks 818.7 1657.5 3274.9 8197.4 1637.5 618.7 0.0 16374.7 20.0 3274.93. Library Books/Rafer.Texts 313.4 626.8 1253.7 3134.2 626.8 313.4 0.0 6268.5 20.0 1253.7

Sub-total 1235.8 2471.7 4943.4 12358.5 2471.7 1235.8 0.0 24717.0 25.9 6395.0E. Studies 168.0 336.0 672.0 1344.0 336.0 336.0 168.0 3360.0 20.0 672.0F. Technical Assistance

1. Expatriate ConsuLtants 42.0 168.0 252.0 168.0 126.0 42.0 42.0 840.0 100.0 840.02. Local Consultants 31.5 126.0 189.0 126.0 94.5 31.5 31.5 630.0 0.0 0.0

Sub-total 73.5 294.0 441.0 294.0 220.5 73.5 73.5 1470.0 57.1 840.00. Vouchers (FeLlowthips) 785.9 785.9 785.9 785.9 785.9 785.9 523.9 5239.5 0.0 0.0M. School Improvement Plans 510.6 1021.1 2042.2 4084.5 1021.1 1021.1 510.6 10211.2 20.0 2042.2i. Project Management 119.2 178.8 238.3 238.3 178.8 119.2 119.2 1191.7 20.0 238.3J. Project Acisinistration 229.0 343.6 458.1 458.1 343.6 229.0 229.0 2290.4 0.0 0.0

Total INVESTMEWT COSTS 4429.8 10049.9 16503.9 28e96.7 139Z2.7 11801.8 6686.1 92390.9 26.5 24480.4

ll. RECURRENT COSTS...................

K. Operation & Maintenance1. Equlpment 0.0 56.7 56.7 113.4 113.4 113.4 113.4 567.0 90.0 510.32. Furniture 0.0 9.4 9.4 18.9 18.9 18.9 18.9 94.5 40.0 37.83. Buildings 0.0 53.5 53.5 107.1 107.1 107.1 107.1 535.5 30.0 160.6

Sub-total 0.0 119.7 119.7 239.4 239.4 239.4 239.4 1197.0 59.2 708.7

Total BASELINE COSTS 4429.8 10169.6 16623.6 29236.1 14162.1 12041.2 6925.5 93s57.9 26.9 25189.2PhysicaL Contingencies 37.2 189.1 282.0 378.2 378.2 378.2 248.0 1890.8 29.5 558.6Price Contingencies 69.2 486.7 1342.9 3343.4 2143.2 2272.3 1575,6 11233.4 27.2 3052.5

Total PROJECT COSTS 4536.2 10845.4 18248.6 32957.6 16683.5 14691.7 8749.1 106712.1 27.0 28800.3

Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Foreign Exchange 1001.3 2567.7 4949.9 9122.3 4577.4 3950.4 2331.2 28800.3 100.0 28800.3

..................................................................................... ..........................................................................................

- 102 -

Annex 10COLOMBIA

SECONDARY EDUCATION PROJECI

TABLE 4: SU?UMARY ACCOUNT! BY PROJECr COMPONENT

Paso

EDUC,QUA MGT & PhysicaL PriceINCREASI LITY INSTIT. Contingencies Contingecies

NG EXPANOIN ENHANCEM STRENGTH ---------------............. _.COVERAGE G ACCESS ENT EN. Total X Amount X Amount

*uuuuuuuuuuuua:aUuauuuusutau.UUSUEUUUUUUUUUEUUEUUUUUUUUUUU8UUUUOUAUUSUUsss-ws--wsslsslts aSs

1. INVESTMENT COSTS....................

A. Civil Works1. RehabiLitation Existing 6715.8 0.0 0.0 0.0 6715.8 5.0 335.8 14.1 945.82. New Constr.Existing Fac. 14458.5 0.0 0.0 0.0 14458.5 5.0 722.9 14.1 2036.33. New Constr.Addit.Enroll. 10921.0 0.0 0.0 0.0 10921.0 5.0 546.1 14.1 1538.14. Architectural Fees 1729.3 0.0 0.0 0.0 1729.3 5.0 86.5 14.1 243.6

............................................................................................

Sub-total 33824.7 0.0 0.0 0.0 33824.7 5.0 1691.2 14.1 4763.8B. Furniture1. Repairs 2520.0 0.0 0.0 0.0 2520.0 5.s 126.0 14.1 354.92. Expansion (New Units) 841.0 0.0 0.0 0.0 841.0 5.0 42.1 14.1 118.5

sub-total 3361.0 0.0 0.0 0.0 3361.0 5.0 168.1 14.1 473.4C. Equipment1. Electronic Equipment 0.0 0.0 2170.3 0.0 2170.3 0.0 0.0 10.2 220.72. Science Laboratories 0.0 0.0 4554.9 0.0 4554.9 0.0 0.0 10.6 482.03. TechnoLogy Laboratories 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

............................................................................................

Sub-total 0.0 0.0 6725.2 0.0 6725.2 0.0 0.0 10.4 702.7D. Educational Materials1. Teaching Aids 0.0 0.0 2073.7 0.0 2073.7 0.0 0.0 10.2 210.92. Textbooks 0.0 0.0 16374.7 0.0 16374.7 0.0 0.0 10.2 1665.33. Library Books/Refer.Texts 0.0 0.0 6268.5 0.0 6268.5 0.0 0.0 10.2 637.5

............................................................................................

Sub-total 0.0 0.0 24717.0 0.0 24717.0 0.0 0.0 10.2 2513.7E. Studies 0.0 0.0 0.0 3360.0 3360.0 0.0 0.0 11.1 371.4F. Technical Assistance1. Expatriate Consultants 0.0 0.0 0.0 840.0 840.0 0.0 0.0 9.9 83.02. Locat ConsuLtants 0.0 0.0 0.0 630.0 630.0 0.0 0.0 9.9 62.3

Sub-total 0.0 0.0 0.0 1470.0 1470.0 0.0 0.0 9.9 145.3G. Vouchers (FeLlowships) J.0 5239.5 0.0 0.0 5239.5 0.0 0.0 11.0 575.0H. School Improvement Plans ".0 0.0 10211.2 0.0 10211.2 0.0 0.0 11.1 1128.71. Project Management 0.0 0.0 0.0 1191.7 1191.7 0.0 0.0 10.9 130.4J. Project Administration 0.0 0.0 0.0 2290.4 2290.4 0.0 0.0 10.9 250.7

............................................................................................

Total INVESTMENT COSTS 37185.7 5239.5 41653.5 8312.1 92390.9 2.0 1859.3 12.0 11055.0

11. RECURRENT COSTS...................

A. Operation & Maintenance1. Equipment 0.0 0.0 567.0 0.0 567.0 0.0 0.0 14.5 82.32. Furniture 94.5 0.0 0.0 0.0 94.5 5.0 4.7 15.2 14.43. BuiLdings 535.5 0.0 0.0 0.0 535.5 5.0 26.8 15.2 81.7

Sub-total 630.0 0.0 567.0 0.0 1197.0 2.6 31.5 14.9 178.4............................................................................................

Total BASELINE COSTS 37815.7 5239.5 42220.5 8312.1 93587.9 2.0 1890.8 12.0 11233.4Physical Contingencies 1890.8 0.0 0.0 0.0 1890.8Price Contingencies 5333.2 575.0 4427.5 897.7 11233.4 2.3 254.0

............................................................................................Totat PROJECT COSTS 45039.7 5814.5 46648.0 9209.9 106712.1 2.0 2144.7 10.5 11233.4

*X::::=: s=2- ----------------- =::a-:=:::r:.us.usu

Taxes 0.°0 0.0 0.0 0.0 0.0 0.0 0.Foreign Exchange 13305.7 0.0 13560.8 1933.7 28800.3 2.2 633.6..........................................................................................................................

Vatues Scated by 1000000.0 4/13/1993 11:58

A 1- 103-

COLOMBIA

SECONDARY EDUCATION PROD=CT

Tabeb 5: IS_hI Stble o Dof(US$

Ancuided Uad&bwanBank FY Dibu llmeSomoeer Ending Amount Amommt Amuat I

FY94Decomber 31 0.0 0 0.0 0 90.0 100June 30 1.8 2 1.8 2 U.2 93

EX2sDcember 31 4.5 S 6.3 7 83.7 93June 30 4.5 S 10.8 12 79.2 I8

EY96December 31 6.3 7 17.1 19 72.9 11June 30 7.2 8 24.3 27 65.7 73

E12December 31 9.0 10 33.3 37 56.7 63June 30 9.0 10 42.3 47 47.7 53

EY8December 31 9.0 10 S1.3 S7 38.7 43June 30 9.0 10 60.3 67 29.7 33

EFY9December 31 9.0 10 69.3 77 20.7 23June 30 9.0 10 78.3 87 11.7 13

EXMDecember 31 4.S S 82.8 92 7.2 8June 30 4.S 5 87.3 97 2.7 3

EFYIDecember 31 2.7 3 90.0 100 0.0 0.0

Eaimta m iim -

IBRD FY l9 § 197fl " QQ2IUAnnual 1.8 9.0 13.5 18.0 18.0 18.0 9.0 2.7Cumulative 1.8 10.8 24.3 42.3 60.3 78.3 87.3 90.0

Note: Project CompWta Dab: Jhu 30, 2000Project Closing Ddeo: Decembe 31, 2000

Annex 10

- 104-

COLOMBIA

SECONDARY EDUCATION PROJECT

Table 6: Allocatlon of Loan Proceeds

Category Loan Disbursement (%)Amount(US$

million)

1. Civil Works & 15.0 100% of amounts disbursed byAssociated Furniture FINDETER(oans)

2. Civil Works (Grants) 13.0 100% of arounts disbursed byFINDETER under Cooperation

Agreements

3. Civil Works & 9.0 100% of amounts disbursed byAssociated Furniture FINDETER under the(Grants) applicable FIS Subproject

Agreement

4. Architectural fees, 33.0 100% of amounts disbursed byTextbooks, Equipment, Fiduciaries under theand SIP Projects applicable FIS Subproject

Agreement

5. Technical Assistance, 6.0 100% of amounts disbursed forStudies and Operational consulting services and 80% ofExpenditures of the amounts ditaursed by MENProject Unit Financial L-termediary

6. Supplemental Vouchers 4.0 100% of amounts disbursed bya Fiduciary

7. Unallocated

I 2LQ

- 105 -

COLOMBIA Annex 11

SECONDARY EDUCATION PROJECT

FLOW OF FUNDS

Flow of funds through FIS

Oranization Functions

IBRD . Provides funds to Ministry of Finance based on loan agreement

Miaistry of Finance (MHCP) Channels funds through FIS for cofinancing

FIS Contracts with fiduciary/ies and channels funds through them forcorinancing for the following sub-projects:(School Construction and Rehabilitation,Voucbers,School Improvement Plans (SIP),Textbooks,Other Instructional Material and Equipment.)Reconciles sub-projer. ac"ounts and annual financial reports andarranges dnnual audits

Enter into contract with FIS, municipalities and schools for SIP sub-.iduci.ry/.cs projects. Arrange cofu ancing support from the municipalities (and

Fiduciary/ies schools, parent associations and alike, for SIP sub-project) to financethe sub-projects.

Pay suppliers for project inputs, monitors expenditures and producesfnancial reports for FIS. municipalities and MEN. Reconcile sub-project accounts and prepares annual financial reports and arrangesannual audits

Transfer cc- nterpart funds assigned for sub-projects to fiduciary/iesMunicipal / Departmental Governments selected by FIS

Flow of Funds through MIEN

Organization Functions

IBRD Provides funds to MHCP based on loan agreement

MHCP Channels funds through MEN

Contractually agrees with, and channels tasks and perhaps fundsMEN through, management service agents to manage funds designated for

the following components:Educational StatisticsNational Achievement AssessmentsStudies and Evaluation ResearchProjec:t ManagementReconciles all project accounts and prepares annual financial reportsand arranges annual audits

Contractually agrees with MEN to manage components. Paymanagemen Servic Companiconsultant agencies for project inputs, monitors expenditures and

Management Service Companies produces financial reports for MEN. Reconcile project accounts

and prepares annual financial reports and arranges annual audits

- 106-

COLOMBIA Annex 11

SECONDARY EDUCATION PROJECT

FLOW OF FUNDS

Flow of Funds through FINDETER for New Constructions and Rehabilitation of Schools

Or =anizatlon ( Functions

IBRD Provides funds to MHCP based on loan agreement

MHCP Channels funds through FINDETER

Contractually agrees with MHCP to manage loan funds for schools

FINDETER * construction . Is involved in all stages of the project cycle fromidentification to approval and supervision. Pays suppliers forproject inputs.

Prepares annual financial reports and arranges annual audits.

Financial Intermediaries Contractually agree with FINDETER to manage loan funds.Prepares annual financial reports and arranges annual audits.

Municipal . Departmental Govemments Contractually agree with FINDETER and the financialMintermediaries to receive loan funds.

* It is to be noted that in zertain cases loans byFINDETER will be supplemented with fundschanneled through FIS, see Annex 10 Table 6category 2.

- 107 - Annex 12

COLOMBIA

SECONDARY EDUCATION PROJECT

Monitoring Indicators, Supervision Plan, and Evaluation Studies

Monitoring Indicators

1. The monitoring indicators devised for planning and supervision of projectimplementation appear in Appendix 1. These indicators cover the period from 1993 to 1997at the end of which there would be a mid-term review of project implementation. Thesemonitoring indicators would be reviewed annually and revised in accordance withimplementation experience, as required. A new set of monitoring indicators covering theperiod beyond 1997 would be prepared following the mid-term review.

Supervision Plan

2. In order to supervise this operation properly, the Bank would have to rely heavily oninformation obtained from four major sources: (a) physical and financial deliveryinformation from the PCU's Project Monitoring System; (b) supplementary progress reportsfrom implementing fiduciary agents such as FINDETER, BCH, and others which summarizeachievements, propose plans for the ensuing period of implementation, and identify issues inneed of MEN's attention; (c) nlission reports of PCU staff on project operations at thedepartmental and municipal levels; and (d) field visits by Bank staff and consultants toselected departments and municipalities to assess project implementation first hand.

3. Supervision missions would be carried out annually in November and June. TheNovember missions would review MEN's annual progress report on implementation, withyear-end projections and examine the updated implementation schedule and expenditure planfor the subsequent year. The June mission would assess mid-year project implementation andidentify issues for the year-end review. Both missions would selectively review contractsawarded without prior review by the Bank. Supervision missions would be supplemented byothers focusing on specific sub-components of a more technical nature such as evaluationresearch. A full-time consultant working out of the Resident Mission would also carry outsupervision tasks for the project along with other responsibilities.

4. The estimated annual number of staff/consultant weeks required for supervisionmissions are the following:

Bank Supervision Missions in November and June by Task Manager,Architect, and Education or Institutional Development/Training Specialist: 12staffweeks.

Periodic visits for monitoring of evaluation research for example by staff of theBank's 7;luman Resources Development & Operations Policy Vice Presidency(HROV1P): 4 staffweeks.

- 108 - Annex 12

In-country supervision and support for implementation from the Human ResourceSpecialist based in the World Bank Resident Mission: 15 staffweeks.

5. The Bank would assist MEN with project start-up, jointly discussing with seniormanagers and staff, the suitability of proposed strategies and work plans for projectimplementation. It would also familiarize MEN staff with Bank policies and operatingprocedures, as required to implement the project efficiently and effectively.

Mid-Term Review

6. A Mid-term Review of the project would be conducted in mid-1996. The reviewwould comprise a comprehensive assessment of the project as designed and reflected in thisStaff Appraisal Report against actual progress to date. It would also take into account issuesarising for supervision during the first half of the project. This review would give theopportunity to incorporate lessons learned and if required to alter or redesign the project sothat it will strengthen its success and limit its weakness.

7. A special study would be conducted for the voucher component in order to determineif the vouchers are reaching the students deserting the sy~ ~m. If not, the vouchercomponent would have to be redesigned or cancelled.

Project Evaluation

8. The proposed project includes funding in the amount of US$5.3 million withcontingencies for policy research and evaluation. The evaluation sub-component, which is byfar the largest, would examine three main aspects of project impact: (a) the effect of theSchool Improvement Plans on efficiency and achievement; (b) the impact of improvemen:s inschool inputs on student achievement, attendance, retention, and promotion; and (c) theeffectiveness of the voucher program in increasing secondary school enrollments for lower-income students. Three critical aspects of the evaluation will be measuring educationindicators prior to the intervention, determining the state of the world withou theintervention, and identifying the key measures of success. It will be necessary to obtainbaseline information on education outcomes and background characteristics of thebeneficiaries of the project before any intervention is implemented, and to identify anappropriate control group wilh which to compare the education indicators after theintervention.

9. School Improvement Plans (SIPs). The new national strategy of decentralization isbuilt on the belief that schools know best their specific needs and how to meet them. Toencourage decentralization this project will provide incentives for schools and municipalitiesto develop SIPs. The key questions to be addressed are: Which municipalities and schoolsare more likely to participate in decentralized management and funding of schools? Do theSIPs alter the mix of school inputs? The answers to these questions will help definestrategies for expanding the program nationally and for insuring the success of thatexpansion. A key issue in the evaluation is to establish whether the plaining process, notjust more school inputs, matters. A 'good' plan, one that improves the morale of teachers,increases parental inputs in their children's education, and raises the level of student interest,are likely to improve student achievement, attendance, and promotions. But testing this

- 109 - Ane 12

hypothesis means decomposing the responses to the reforms into the portion attributable toimproved resources and the portion attributable to planning and innovative use of resources.Disentangling these effects will require that schools which receive resources but are notrequired to develop SIPs be compared with those schools which receive resources as a resultof their development of a SIP. If planning matters, there should be observable differences inresource allocation between the schools with SIPs and those without. This comparisonbetween planning and nonplanning schools can only be made if some schools without SIPsalso receive the additional resources of $6.00 per student.

10. Increases in School Inputs. The research questions for policy evaluation are: Haveschools participating in the project raised student achievement, attendance, promotions, andretentions? Which improvements in pedagogical inputs in the participant schools raisestudent outputs? Does the planning process add to the productivity of the school? Thesequestions can be addressed by using a value-added educational production function. Theanalysis must be able to compare the performance of students in project schools with acontrol group of students in nonparticipant schools.

11. The value-added approach requires that student achievement be measured twice,before and after the intervention. Prior student ability can be measured by the language andmathematics tests regularly given to fifth-graders by the National Assessment of EducationQuality. During these tests, data are also collected on the characteristics of students, theirfamily background, and characteristics of teachers and school principals. This informationcan identify the factors that determine educational achievement in the secondary schools.After the fifth-graders have spent one year in the secondary schools, their educational outputswould be measured once again. Two output measures can be used. One is a score on astandardized test of student achievement. A comparison of test scores in the fifth grade andin the sixth grade for each student provides an absolute measure of knowledge resulting fromthe educational process. A second measure of output is whether or not the student ispromoted to the seventh grade. Because standards may vary across schools, this will requiresome control for differential promotion standards.

12. School Vouchers. Public secondary schools in some areas cannot accommodate allthe students who would like to attend, whereas private schools are believed to have someexcess capacity. Vouchers are expected to increase private school enrollments both becausethey would ease the supply constraint and because they would lower the price of attendingprivate schools for children of poor families. The questions for evaluation are: What is thedistribution of vouchers by socio-economic group, student achievement, and residence? Dovouchers increase enrollment rates, especially of poor youths? Do vouchers improve studentachievement?

13. The ideal method for the evaluation would be to observe the schooling choices andeducational achievements of two comparable samples of children, only one of which receivedvouchers. Such a pure matched comparison experiment will not be possible in theColombian program because the vouchers are not randomly distributed in the population. Toreceive a voucher a student must live in a qualified neighborhood within a qualifiedmunicipality since qualifications are based on neighborhood poverty status. In addition, thestudent must apply for the voucher and already be accepted into a qualified private school.Targeting is not likely to be perfect. There will be households in the eligible poor

- 110- Ann12

neighborhoods whose incomes are higher than the targeted group's; similarly, there will bepoor households in wealthier neighborhoods which will be exempted from the voucherprogram. This allows a comparison of schooling choices made by families in qualifiedneighborhoods with those made by families with similar socioeconomic backgrounds butwhich do nit qualify for vouchers because of the neighborhoods they reside in. It isimportant to compare the characteristics of those who receive the benefits of the programwith the attributes of the population eligible for the program in order to determine how thetargeting mechanism may be improved in the future.

14. The evaluation study would employ the following indicators to measure the impact ofproject inputs at municipal and school levels:

School Improvement Plans (SlPs)

(a) Greater value-added as measured by achievement growth of individual students in SIPschools than non-SIP schools, controlling for differences between these two sets ofschools in school size, socioeconomic background of students, and so on.Achievement growth is defined as the difference in the achievement scores ofindividual students measured in grade five and in grade six.

(b) Higher retention rates (or lower dropout rates) in SIP schools than in comparable non-SIP schools. Here, ensuring comparability means that other school characteristicsbesides those related to planning should be controlled for within a multivariateframework in order to undertake the evaluation properly.

(c) Higher school attendance (or lower absenteeism) by students and teachers in SIPschools than in comparable non-SIP schools.

(d) Greater participation of parents and the community in school activities in SIP schoolsthan in comparable non-SIP schools.

(e) Increased local funding in SIP schools than in comparable non-SIP schools.

School Vouchers

(a) Increased enrollment of eligible students in public and private secondary schools dueto voucher system. The enroilment status of eligible students who received vouchersmust be compared with the enrollment status of eligible students who did not receivevouchers. Eligibility has been defined in the voucher program as students whocomplete grade five with the required grade point average and maintains the requiredgrade point average throughout the cycle, reside in municipalities that belong to thepoorest two income strata in the country, and apply for a voucher. Poor students whowould have qualified for the voucher program had they been residing in the eligiblemunicipalities are also termed as eligible and belong to the control or comparatorgroup.

(b) Higher achievement growth for voucher students than comparable non-vo'-herstudents between grades five and six and between grades six and the ensuing years.

- 111- A_ 12

Ensuring comparability among students means controlling for eligibility for receivinga voucher.

(c) Higher grade point averages for voucher students than for comparable non-vouchersudents.

(d) Better school attendance by voucher students than by comparable non-voucherstudents.

(e) Reduced juvenile delinquency in communities with more voucher students, controllingfor incidence of youth-related crimes prior to adoption of voucher system.

(f) Higher transition rates to the tertiary education level for baeeficiary graduates than fornon-beneficiaries.

(g) Higher employment rates and higher future earnings for voucher students than forcomparable non-voucher students. A follow-up survey of graduates should reveal thereturns for them in the labor market.

cresen in School Inputs

(a) Greater value added as measured by higher achievement growth for students inbeneficiary schools than for those in comparable non-beneficiary schools.

(b) Better school attendance (or lower absenteeism) by students and teachers inbeneficiary schools than in comparable non-beneficiary schools.

(c) Higher retention rates (or lower dropout rates) in beneficiary schools than incomparable non-beneficiary schools.

(d) Greater access to learning inputs by poorer students in beneficiary schools than incomparable non-beneficiary schools.

(e) Reduced juvenile delinquency in beneficiary municipalities than in comparable non-beneficiary municipalities.

(f) Higher transition rates to the tertiary level for graduates of beneficiary schools thanthose of non-beneficiary schools.

(g) Higher employment rates and higher future earnings for graduates of beneficiaryschools than those of non-beneficiary schools.

- 112 - Annex 12

Appendix 1

COLOMBIASECONDARY EDUCATION PROJECT

Monitoring Indicators 1994-97 J(cumulative)

Monitoring Indicators 1994 1995 1996 1997

Municipal Education Plans (MEP)-Number of plans prepared 8 20 32 40

Increasing Coverage-Number of new schools 42 48 60-Number of schools rehabilitated 105 120 150-Number of schools rermodeled 84 96 120

Expanding Access-Number of vouchers distributed 5,500 11,000 16,500 22,000

Educational Quality Enhancement-Number of School Improvement Plans prepared 420 480 600-Number of schools benefitting from Quality 420 480 600

Enhancement ComponentInstitutional Strengthening

-Number of achievement tests administered 1 2-Central Govemment officials trained 12 30 48 | 60

*The fol.iwing indicators cover the period from project implementation to mid-term review.

- 3 - Annel 13

COLOMBIA

SECONDARY EDUCATION PROJECT

Selected Documents and Data Available in the Project Fdle

A. Selected Reports and Studies Related to the Sector

A. l. Que es el Sistema de Nuclearizaci6n Educativa. Ministerio deEducaci6n Nacional, June, 1992.

A.2. Proceso de Descentralizaci6n Educativa en Colombia. AlfredoSarmiento G6mez, June, 1991.

A.3. Descentralizaci6n Administrativa de la Educaci6n . Ministerio deEducaci6n Nacional, July, 1992.

A.4. La Descentralitaci6n: Competencias y Recursos. DepartamentoNacional de Planeaci6n, December, 1991.

B. Selected Reports and Studies Relating to the Project

B. 1. Manual para Alcaldes: Sobre Descentralizaci6n Educativa. ManuelG. Salazar and Juan Carlos Salazar, Instituto SER de Investigaci6n,January, 1992.

B.2. Anilisis de las Inversiones y Gastos Educativos en los OnceMunicigios mas Grandes de Colombia en el Marco de la NuevaConstituci6n. Stephen A. Hoenack, August, 1992

B.3. Plan- Apertura Educativa 1991-1994. Departamento Nacional dePlaneaci6n, March, 1991.

B.4. Manual para le Preparaci6n del Plan Municipal de Educaci6nSecundaria. Cartillas 1 al 3. Clemencia Chiappe (Consultora), MEN,DNP, and FINDETER, September 1992

C. Selected Laws that Relate to the Project

C. 1. Proyecto de Ley General de la Educaci6n. Minister-o de Educaci6nNacional, September, 1992

C.2. Proyecto de Ley: Por la Cual se Dictan Normas Sobre Distribuci6n deCompetencia y Recursos Confonne a los Articulos 356 y 357 daConstituci6n Politica y se Dictan Otras DisMosiciones. August, 1992

MAP SECTION

IBRO 24 9i

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