Dcumt of

The World Bank

FOR OmCLAL USE ONLY

/Qv4dV -2 7RJ WJ12Rqeo No. P-6304-UR

MMORANDUM AND RECOMMENDTIONS

OF THE

PRESIDENT OF THE

INTERNATIONAL BAINRK FOR RECONSTRUCTION AND DEVELOPMT

TO THE

EXEUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALENT TO US$31.5 MILLION

TO THE

REPUBLIC OF URUGUAY

FOR THE

BASIC EDUCATlION QUALITY IMPROVEMENT PROJECT

MARCH 30, 1994

MI CROGRAPH I CS

Report No: P- 6304 URType: MOP

This document has a restricted distribution and may be used by recipients only in the performnce oftheir official duties. Its conten may not othise be disclosed without World Bank autboriation.

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CURRENCY EQUIVALENTS

Currency Unit = New Peso (NU$)

EXCHANGE RATE(as of January 31, 1994)

US$1.00 = NU$4.40NU$1.00 US$0.23

FISCAL YEAR

January 1 - December 31

ABBREVIATIONS AND ACRONYM

ANEP National Public Education Administration(Administraci6n Nacional de Educaci6n Pdblica)

CEP Primary Education Council(Consejo de Educacidn Primaria)

CODICEN Central Directive Council of Education(Consejo Directivo Central de Educaci6n)

ECLA (CEPAL) United Nations Economic Commson for Latn America and theCaribbean (Comisi6n Econ6mica de las Nacones Unidas pamaAm*rica Latina y el Caribe)

ID ANEP-CODICEN Primary Education DepartmentalInpeoates (Inspeccienes Deparmentales de Primaria)

MECAEP Primary Education Quality and Equity Enhancement Project(Proyecto de Mejoramiento de la Equidad y Calidad de laEducaci6n Primanria)

AME Mmnistry of Economy and 2inance(Mnisteio de Economfa y Finanzas)

MIS Management Information System(Sistema de Informaci6n Gerencial)

PCU Project Coordination Unit(Unidad de Coordinaci6n del Proyecto)

PRIS Social Investment Project(Programa. de Inversiones Sociales)

PPU Project Preparation Unit(Unidad de Preparaci6n del Proyecto)

SCAU Student Cognitive Assessment Unit(Unidad de Medici6n de Resultados Educativos)

TCR Court of Accounts of the Republic(Tribunal de Cuentas de la Repdblica)

UBN Unsatisfied Basic Needs(Necesidades Bisicas sfechas)

UNESCO-ORCYT United Nations, Educational, Scientific and Cultural Orazation(Organizaci6n de las Naciones Unidas pam la Educacidn, iCiencia y la Cultura/Oficina Regional de Ciencia y Tecnologfa)

FOR OFFICIAL USE ONLY

URUGUAY

BASIC EDUCATION QUALITY IMROVEMENT PROJECT

LOAN AND PROJECT SUMMARY

Borrower: Republica Oriental del Uruguay

Benefliciary andExecuting Entity: National Public Education Administration (ANEP)

Amount: US$31.5 million

Terms: 15 years and 5 years of grace (level repayment)

JZInanclng Plan: Project Cost(US$ million)

Local Foreign Taxes Total Percent

Borrower 10.9 1.2 1.4 13.5 30Bank Loan 22.6 8.9 0.0 31.5 70

Total 33.5 10.1 1.4 45.0 100

Project Objective: The objectives of the project are to improve the quality, equity,and efficiency of the primary education system. The projectwould also: (a) expand the preschool coverage in areas withunsatisfied basic needs (UBN), and enhance the quality ofpreschool education to increase primary school preparedness andreduce repetition in the first two grades of primary school; and (b)enhance sector productivity and strengthen overall sectoralmanagement

lEconomic Rate Not applicableof Return:

Poverty Category: Program of targeted interventions in UBN areas. About 51percent of total expenditures are targeted to UBN areas

Staff AppraisalReport: No. 12597-UR; dated March 25, 1994

Map: IBRD No. 19541

1his docunent has a restricted distribution and may be used by recipients only in the peafomace of theirofficial duties. Its contents may not otherwise be disclosed witout World Bank authorization.

MEMORANDUM AND RECOMMENDATIONS OF THE PRESIDENT OFTHE IBRD TO THE EXECUTIVE DIRECTORS

ON A PROPOSED LOAN TOTHE REPUBLIC OF URUGUAY FOR THE

BASIC EDUCATION QUALITY IMPROVEMENT PROJECT

1. I submit for your approval the following memorandum and recommendations ona proposed loan to the Republica Oriental del Uruguay for the equivalent of US$31.5million to assist in the financing of the Basic Education Quality Improvement Project.The loan would be at the Bank's standard variable interest rate, with a maturity of 15years and 5 years of grace using a level repayment of principal pattern. The RepdblicaOriental del Uruguay, represented by the Ministry of Economy and Finance (MEF),would be the Borrower, and the National Public Education Administration (ANEP)would be the Executing Entity.

2. Background. Uiuguay's education system has provided ftee and universal accessto primary education to boys and girls alike for many years. Adult illiteracy of less than5 percent is among the lowest in the region, and the average years of schooling nowattained by Uruguayans of 15 years or older (7 grades) is one of the highest in LAC.Yet, the education system suffers from internal inefficiencies and low quality, especiallyin schools serving poor areas. Per capita primary education spending of about US$126is 36 percent less than the weighted average for upper middle-income countriesworldwide. As a result, about 60 percent of the 3-to 5-year-old children lack earlystimulation programs; learning and teaching materials are insufficient; teachers do notreceive enough in-service training; and the public educational system does not adequatelymeet the needs of the poor. Levels of learning among primary education graduates areextremely low, especially in poor areas. Repetition rates in the first two grades ofprimary education (21 and 14 percent respectively) are high, and even higher in schoolslocated in poor areas (27 percent). Repetition wastes 8 percent of annual publicexpenditures on primary education. Centralization and complex institutionalmanagement has hindered the adoption and implementation of policies and actions toincrease the efficiency and enhance the quality of public education.

3. Rationale for Bank Involvement. The proposed lo.* -s directed at: (i) arrestingthe deteriorating quality and efficiency of primary education, thereby providing thefoundation for future investments in secondary and higg.r education; and (i) improvingtargeting and modernization in the education sector, an area involving significant budgetoutlays. Bank involvement in the project fits well within the Bank's Country AssistanceStrategy (CAS) for Uruguay as discussed by the Board on January 25, 1994 inassociation with the Natural Resource Management and Irrigation Development Project(Report No P-6144-UR). Recent Bank efforts in Uruguay have focused on structuraladjustment and public sector reform. Looking to the future, lending to the social sectorshould complement broader macro-economic reforms. This project - as the CASindicated (para. 33) - will focus on primary and preschool education. In particular, itwill lead to: (i) strengthening the institutional capacity and improving the efficiency inthe provision of public primary education services, contributing to the Borrower effortsto enhance management and personnel functions, and thus increase public sectorproductivity; and (ii) improving the quality of primary education with a particular focuson the poor, and thus contributing to poverty alleviation and to the formation of a more

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educated labor force needed for Uruguay's successful integration into regional andworldwide markets.

4. Project Objectives. The objectives of the project are to improve the quality,equity, and efficiency of the primary education system. The project would also: (a)expand preschool coverage in areas with unsatisfied basic needs (UBN), and enhance thequality of preschool education to increase primary school preparedness and reducerepetition in the first two grades of primary school; and (b) enhance sector productivityand strengthen overall sectoral management.

5. Project Description. The project would finance the: (a) Primjr .ducatioij:availability of textbooks, educational materials, and student and teacher libraries;promotion, design and implementation of school-based quality improvement projects;provision of hi-service training to strengthen teachers' capacity to use these learningresources and enhance instructional effectiveness; design and implementation of astandardized student cognitive achievement measuring system; and rehabilitation ofprimary school buildings on a targeted basis; (b) Preschool education: increase ofpreschool coverage in UBN areas; availabil ty of teaching materials; improvement ofteaching effectiveness and school supervision; construction and rehabilitation ofpreschool classrooms; carrying out of a preschool disemination campaign; andundertaking of a long-term evaluation study of preschool impact; and (e) Institutionalstrengthening and efficiency: operation of one unit to manage the Student CognitiveAchievement System (SCAU), and another to manage and monitor the purchase anddistribution of textbooks, supplemental reading and teaching materials; development ofa management information system (MIS); development of operational manuals andguidelines and the provision of training to sector managers and analysts inmicroplanning, programming, budgeting, managing, and monitoring sectoral activities;furnishing vehicles to the 19 Departmental Inspectorates; and carrying out a sectormanagement productivity study and implementing its recommendations.

6. Project Cost and Flnancing. The total cost of the project, to be implementedin seven years, is estimated at US$45 million based on July 1993 prices. The totalforeign exchange cost is estimated at US$10.1 million, or 22 percent of the total projectcost. The loan would cover 88 percent of foreign exchange and 67 percent of estimatedlocal costs net of taxes. Given the social nature of the project, the bulk of project costsare composed of local expenditures, mainly comprising teachers salaries, civil works,assessment, and school-based quality improvement sub-projects. Table 1 of ScheduleA summarizes the estimated project costs by component and subcomponent. TheBorrower would finance US$13.5 million, or 30 percent of total project cost. Theproposed Borrower's project cost sharing is in line with current guidelines given thepoverty alleviation nature of the project. Tables 2 and 3 of Schedule A provide theproject financing plan and the breakdown by expenditure category. Amounts andmethods of procurement and disbursements, and the allocation of loan proceeds areshown in Schedule B, Tables 1, 2, and 3 respectively. To maintain the momentumgained during project preparation, retroactive financing of up to US$935,000 (3 percentof total loan) is recommended for project expenditures incurred from December 1st,1993 in the following expenditure categories: (i) US$100,000 for the ProjectCoordination Unit's (PCU) operating and investment expenditures; (ii) US$500,000 forschool construction and equipment; (iii) US$100,000 for teacher training related

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activities; and (iv) US$235,000 for the student cognitive achievement measuring systemrelated expenditures. The timetable of project processing and the status of Bank Groupoperations in Uruguay are given in Schedule C, Tables 1, 2, and 3 respectively. A mapis attached, and the Staff Appraisal Report No 12597-UR, dated March 25, 1994, is alsoincluded.

7. Project Inplementation. Prior to negotiations, ANEP enacted: (i) ResolutionNo. 7 (January 10, 1994) whereby its Primary Education Council (CEP) made theappropriate intenal organizational adjustments to guarantee the coordination of thedifferent activities comprised in the procurement, distribution, storage, and monitoringof textbooks, library books, and preschool and primary education teaching materials; (ii)Resolution No. 94 (November 19, 1993) creating and staffing the Student CognitiveAssessment Unit (SCAU) under terms satisfactory to the Bank; and (iii) Resolution No.57 (February 2, 1994) creating and staffing the Project Coordination Unit (PCU) inANEP under terms satisfactory to the Bank. ANEP would be responsible for overallimplementation of the project through its current structures. The PCU will assist ANEPin the oversight of project implementation and general coordination, and will ensure thatproject execution is carried out according to established guidelines, procedures, andagreed targets. The PCU will report directly to the President of ANEP. The PCUcomprises a small matrix-type managerial organization with seven programmatic units(preschool; texts, libraries, and teaching materials; school-based quality improvementsub-projects; in-service teacher training; cognitive assessment measuring system;infrastructure; and institutional strengthening) and three serice units (project planning,programming and monitoring; procurement, technical assistance, and personnel; andbudgeting, financing, disbursement, accounting, and auditing). The programmatic unitswill be in charge of coordinating and monitoring the implementation of their respectiveproject component through ANEP's structure, whereas the service units will beresponsible for a wide range of supporting activities.

8. Project Sustainability. Projected increment ' annual recurrent expenditures thatwill result from the project for the period 2001 through 2005 represent about 1 percentof ANEP's total projected budget for the year 2001 (or 2.3 percent of ANEP'sforecasted primary education budget). These expenditures will be financed through thePrimary Education Tax, an earmarked property tax whose projected revenue for CY93is estimated at US$10 million, three times the amount needed to sustain the projectbeyond completion. The projected increases are affordable within a macroeconomicframework of budgetary restraint.

9. The Borrower's commitment to support the project is rflected in adequatecounterpart funding authorized by the Uruguayan Congress in its Budget Laws of CY93and 94 of US$480,000 and US$1.5 million respectively. Pursuant to Articles 228 and229 of the Constitution, the Borrower's CY95 budget must remain the same as theprevious year (1994), since a presidential election will take place in November 1994.Thus the amount allocated to support the Project for CY94 will be the same for CY95(US$1.5 million). For CY96 through CY00 the Borrower agreed during ngfiatiofnsto include in the Loan Agreement a covenant whereby the Borrower would: (a) makeavailable each year, until the completion of the project, promptly as needed in NewPesos equivalent, the necessary counterpart funds required for project execution asdetailed in Section 3.01 (d) of the Loan Agreement; (b) not later than thirty days prior

4-

to the date in which the Borrower's budget related to the education sector is presentedto the Uruguayan Congress each year (with the exception of 1994), furnish to the Bank,for its review, a copy of such section of the budget; and (c) within thirty days after thedate in which the Borrower's budget related to the education sector is approved eachyear, fumish to the Bank a copy of such approved budget.

10. Furthermore, during appraisal, ANEP enacted Resolution No. 3 (November 8,1993) as amended by Resolution No. 2. (November 15, 1993) whereby, starting in year2000, and every year thereafter, it wil allocate between 16 and 20 percent of the annualPrimary Education Tax proceeds, or US$1.6 million (whatever amount is larger), tofinance the textbook, pedagogical libraries, and primary and preschool teaching materialscomponents of this project. The recurrent yearly expenditure needed to sustain thesecomponents is estimated at about US$1.6 million. The Borrower will finance 20 percentof this component with counterpart funds throughout the entire project executic.; cycle.

11. ILssons Learned form Previous Bank Involvement. Bank assistance forUruguay's education sector has been limited to a US$9.7 million loan (Loan 1594-UR,1978) for vocational trining. The project's objectives were achieved three years behindschedule largely because the Borrower delayed enacting legal measures and allocatingcounterpart funding. Important lessons leamed from previous Bank pnmary educationprojects worldwide comprise the need to: (a) define clearly project objectives andcomponents; (b) simplify the nuriber and complexity of project components; (c) developa sense of ownership by the borrower; (d) pilot educational innovations before they canbe widely adopted; and (e) train the PCU in Bank procureinent, disbursement,accounting and auditing procedures before project effectiveness. These lessons havebeen incorporated in the project design.

12. Agreed Actions. During negotiations, final agreement was reached with theBorrower (where applicable) and ANEP that: (a) ANEP would carry out during the firstyear of project execution the management productivity study to be completed not laterthan December 31, 1995; (b) results of the management productivity study would bediscussed with the Bank, and an action plan comprising stricter personnel controlsconcerning teaching and non-teaching staffing and deployment policies and practices,leave of absence, assignments, attendance, fines and rewards would b agreed upon nolater than June 30, 1996; (c) ANEP would commence to implement the agreed actionplan no later than December 31, 1996; (d) as of today, the Tribunal de Cuentas wouldbe appointed by the Borrower and ANEP as the project's external auditor, and that theaudit performance would be reviewed by the Bank annually; (e) project managers withqualifications and under terms satisfactory to the Bank would be employed to coordinatethe PCU and the SCAU respectively, and to maintain such persons or similarly qualifiedprofessionals dunng project execution; (f) the mid-term review, whose scope is detailedin Annex 2 to the Implementation Letter, should take place not later than 42 monthsafter the Effective Date; (g) if any of ANEP's Resolutions enacted for this project(defined in Section 1.02 of the Loan Agreement) are amended, suspended, abrogated,repealed, waived or not enforced during project execution it would constitute a conditionfor partial or total suspension; (h) the special procurement provisions referred to in para.5.9 of the SAR would be included in Schedule I to the Project Agreement; (i) as acondition for the school-based quality improvement project's (PME) disbursement, theBank would require ANEP to have entered into an arrangement with the eligible school

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under terms and conditions satisfactory to the Bank; () ANEP shall not later than June30 of each year, starting in 1995 until the completion of the project, prepare and fumishto the Bank an annual progress report on project implementation; and (k) counterpartfunding will be made available each year, until the completion of the project; not laterthan thirty days prior to the date in which the Borrower's budget related to the educationsector is presented to the Uruguayan Congress each year (with the exception of 1994),furnish to the Bank, for its review, a copy of such section of the budget; and withinthirty days after the date in which the Borrower's budget related to the education sectoris approved each year, furnish to the Bank a copy of such approved budget.

13. As conditions of Loan effectiveness the Bank would require that: (a) theSubsidiary agreement between the Borrower, through MEK, and ANEP, under termssatisfactory to the Bank, be duly executed and delivered on behalf of the parties thereto.In addition, the Borrower and ANEP shall furnish to the Bank a legal opinionsatisfactory to the Bank, by counsel acceptable to the Bank, with respect to the validityand execution of such agreement; (b) the Management Service Agreement between theBorrower, through MEF, ANEP, and the United Nations Educational, Scientific andCultural Organization (UNESCO), under terms satisfactory to the Bank, be dulyexecuted and delivered on behalf of the parties thereto; (c) the PCU's operating manual,under terms satisfactory to the Bank, be duly approved by ANEP; (d) ANEP wouldcontract with a qualified cons0lting firm the management productivity study under termssatisfactory to the Bank; (d) a legal opinion on behalf of the Borrower, satisfactory tothe Bank, by a counsel acceptable to the Bank, with respect to the validity and executionof the Loan Agreement, be furnished to the Bank; and (e) a legal opinion on behalf ofANEP, satisfactory to the Bank, by a counsel acceptable to the Bank, with respect to thevalidity and execution of the Project Agreement. be furnished to the Bank.

14. Program Objective Categories. The project will support the Borrower's effortsto reduce inequities in the delivery of preschool and primary education by targeting itsresources to the poorest segments of the population. The central unit of this strategy inthe current administration is the "Social Investment Project (PRIS)' managed by theOffice of the Presidency. PRIS has: (a) employed the household criteria developed bythe United Nations Economic Commission for Latin America and the Caribbean (ECLA)to identify populations with unsatisfied basic needs (UBN) countrywide; and (b)implemented a management information system to target social investment resources onthe poor. About 51 percent of total project expenditures are targeted to UBN areas.

15. Environmental Impact. The project does not present environmental risks otherthan minor ones associated with school construction and maintenance. These will beaddressed in the design and approval stage of investment subprojects. No resettlementof population is required in carrying out the construction and rehabilitation componentof the project. An environmental rating of "C" is proposed.

16. Expected Benefits. The project would: (a) contribute to a more educated laborforce by providing primary students higher levels of cognitive achievement and problem-solving skills necessary to perform successfully in a rapidly-changing global economy;(b) increase the opportunity of poor children to benefit from better quality primaryeducation; (c) strengthen the deconcentration process in the educational sectxk ̂ dinduce greater participation of teachers, principals, and supervisors in designing and

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executing school-based quality improvement projects; and (d) a future major benefit,reinforced by other Public Sector Reforms, will be to increase sector productivity,contain financial wastage, and control spending.

17. Risks and Safeguards. The major risks to project implementation are: (a)ANEP's limited capacity to implement the project; (b) ANEP's unfamiliarity with Bankprocurement and disbursement guidelines and procedures; (c) possible distortions intargeting project interventions; and (d) uncertainty concerning project endorsement bythe incoming administration in 1995. These risks will be reduced by: (a) a gradualimplementation of project components witn time for institutional learning; (b) earlytraining of PCU staff in Bank procurement and disb-ursement guidelines and procedures;(c) implementing precise targeting criteria to benefit schools located in UBN areas; (d)adopting suitable operational and procedural manuals and training for central andregional staff; (e) promoting the participation of teachers, parents, and students inproject implementation; (f) carrying out a sector review study in CY94 as a basis fordiscussion with the incoming administration; and (g) carrying out a close supervision bythe Bank.

18. Recommendation. I am satisfied that the proposed loan would comply with theArticles of Agreement of the Bank and recommend that the Executive Directors approveit.

Lewis T. PrestonPresident

AttachmentsWashington, D.C.March 30, 1994

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Schedule ATable 1

Swmary Cost Tsble

COMPONENT LOCAL PORRk1it TGrAL PUCEN mCiirOF(USS 00 fPF emu VORBII

L. PRESCHOOL EDUCATIONPodapfgicaI ArticVlation 74 0 !4 0.2 0Evaluation 97 8 1os 03 7Syam Pmuwd= 33 8 41 0.1 19Ttsiine 652 0 652 1.3 0EzLmcnts Fmo;ioa:UtbaU4 you olds 4.083 172 4.255 I15 4Eatollmant Exmsim:Ucba5 yOa od OI 765 28 793 2.1 4EarwmEXn onC(FadimJ: 54 10 64 0.2 is

Rural 5 yea old*TeangM.al67 1,057 1,734 4.7 61SUBTOTAL

6,435 1282 7717 20. 17

UL PRIMARY EDUCATIONBOOKS AND TEACHING AIDS SI 34 8s 0.2 40Pedagogial Librai 9S2 635 1,587 43 40Su l ;doLb*i. 3.401 350 4.251 11.5 20Tozboks 51 1.325 2,375 6.4 98TCCihg Aids 28S 198 437 13 41Adminigraive Support 4,744 4,043 S,7M 23.7 46SUBTOTAL

PMEaProjo FnCing 2.400 0 2,400 6.5 0Adveriing and Pmmation 196 32 227 0.6 14Seltion. Motiung & EvaYon Study 213 5 219 0.6 2SUlTOTAL. 2.809 37 2,846 7.7 1

TRAININGEqIdPn and Maieiial 32 13 45 0.1 23PME- CozCnm s02 215 71? 1.9 30TaXboob ConioomPt si1 347 I,18 3.1 30Educational Evaluation Compown 193 83 276 0.7 30naain9atdl Stganging Conoonz 16 7 23 0.1 30

SUBTOTAL 1,554 665 2,219 6.0 30

EDUCATIONAL EVALUATIONPetiOnnd 1,917 0 1,917 5.2 0T1ing 1.549 151 1,800 4.8 aTaining 155 39 193 0.5 20EquipmCDI 53 42 95 0.3 45SUIrarAL 3,773 232 4,00S 10.8 6

CIVL WORKSCowAton and RehabiliUion 4.380 I1I86 5,566 IS.0 21F Uim zand Equipm.n 454 416 870 23 4SSUBTOTAL 4.833 1,602 6,436 173 2S

I. INSTITUTIONALSTRENGTHENING 3S

Infmation SysCin 609 321 930 2.5 0Humn Resuma Study 400 0 400 1.1 0Taining K6 0 K6 0.2 0Manual 91 0 91 0.2Velicks and Operation 132 463 595 37SUBTOTAL 1,317 784 2,101 5.7

IV. PCUSaIr,a 1,847 0 1,847 5.0 0Opeating Costa 549 0 549 1.5 0Auditing 210 0 210 0.6 0Equipmen 0 30 30 0.1 10tSUBTOTAL 2,606 30 2,636 7.1 1

PROJECT PEPALATION (PMS 254 127 381 1.0 33TOTAL BASE COST 2S,324 S,8.2 37.127 100.0 24PHYSICAL CONTIIENCES 1.036 457 1,494 4.0PRICE CONTINGENCIES 5,525 854 6,380 17.2TOTAL COST 34,S86 10.114 45,000

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Schedule ATable 2

Finandn$ Pla(USS milion)

Project COSt Duties Total Percent of CoStLocal Foreign Total & Taxes Cost Project Total

Bank Loan 22.6 8.9 31.5 0.0 31.5 72 70Borrower 10.9 1.2 12.1 1.4 13.5 28 30Total 33.5 10.1 43.6 1.4 45.0 100 100

Table 3Financing Plan by EYpenditre Categories

(US$ '000)

CATEGOREES TOTAL BANK GOVMNT.

TextbOOkI 5,382 4,423 959

Libraries 1,956 0 1,956

Teaching Aids 4,517 4,156 361

Construction & Rehabilitation 5,910 4,870 1,040

Food 1,656 0 1,656

Office Materials 563 563 0

Furniture 654 654 0

Equipment and Vehicles 1,131 1,131 0

Local Salaries 4,643 0 4,643

Consultant Services 5,903 5,903 0

Recurrent Opetating Costs 1,122 0 1,122

Project Implementation Operating Costs 235 235 0

PME's 2,400 2,400 0

Training Expenditures (Travel, Per-diem) 3,595 3,203 392

Tests: Printing and Processing 419 419 0

PCU: Salaries and Operation 3,130 3,130 0

PCU: Equipment and Furniture 32 32 0

PPF Repayment 381 381 0

SUBTOTAL 11 43,629 31,500 12,129

TAXES 1,371 0 1,371

TOTAL PROJECT 45,000 31,500 13,5001/ Net of Taxes

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Schedule B

Table iProcuranent Arrangements at

CATEGORIES ICB LCB OTER N.B.F. TOTAL

Textbooks 5.38 5.38(4.42) (4.42)

Librarn -, Food and Recurent Operating l.S6e/i/ 4.94h/ 6.09Costs (1.14) (0.00) (1.14)

Tahing Aids 4.74 4.74(4.16) (4.16)

Tests: Pnntng and Processing O.S1c/ 0.51(0.42) (0.42)

Civil Works: Construction, Rehabilitation 4.27 2.14bJ 6.41and Maintenance (3.25) (1.62) (4.87)

Office Equipment and Vehicles 1.22cJ 1.22(1.13) (1.13)

Furniture 0.45 0.42d/ 0.87(0.39) (0.38) (0.77)

Office Materials 0.34 0.34df 0.68(0.28) (0.28) (0.56)

Local Salaries 4.64 4.64(0.00) (0.00)

PPU and PCU fees 2.55g/ 2.55(2.53) (2.53)

Consultant Services S.90g8 5.90(5.90) (5.90)

Tninig Expendtures (Travel, Per-diem) 3.60e1 3.60(3.20) (3.20)

PME'S 2.40fl 2.40(2.40) (2.40)

TOTALj/ 10.13 5.06 20.23 9.58 45.00(8.58) (3.92) (19.00) (0.00) (31.50)

a/ Totals include taxes and contingencies. Amounts in parenthesis show allocation from loan proceeds.b/ Local shopping anounting US$1.0 milion and direct contracting not to exced US$1.1 milion.c/ Limited international bidding.d/ Local shopping.e/ Procurement methods do not apply.V Purchased by direct conacting where price quotations cannot be obtained.g/ Consutants, PPU and PCU staff selected in accordance to Bank Guidelines issued in August 1981.hi Excludes PPU and PCU relatd recurrent operaing costs.i/ Includes PPU and PCU related recumrt operatng costs.j/ Total may not add due to rounding.

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Schedule B

Table 2Estimated IBRD Disbursement

(US$ millitn)

FY95 FY96 FY97 FY98 M9 FYOO FY01Annual 5.1 6.5 7.4 4.5 3.6 3.0 1.4Cumulative 5.1 11.6 19.0 23.5 27.1 30.1 31.5

Table 3AUocation and Disbursement of IBRD Loan

CATEGORIES AMOUNT OF THE PERCENT OFLOAN ALLOCATED EXPENDITURES(EXPRESSED IN US TO BE FINANCEDDOLLAR BY IBRDEQUIVALENT)

Textbooks 4,000,000 80

Teaching Aids 3,800,000 100

Civil Works 4,400,000 70 until withdrawalshave reachedaggregate ofUs$S1000,000,

90 and thereafter

Training Expenditures 2,800,000 100(Travel, Per-diem)

Office Materis, 2,000,000 10Oa/Equipment, Furnitureand Vehicles

Consultant Savices 5,200,000 100

PME's 2,400,000 100

Tests: Printing and 400,000 100Processing

PCU Fees 2,5'0,000 100

PCU Equipment, 500,000 10oa/Furnitureand Operating Costs

PPF Repayment 380,600

Unalkcated 3,119,400

Total 31,500,000a/ 100 percent of foreign expenditure; 100 percent of local expenditure (ex-factoty cost);

and 80 percent of al other goods procured locally.

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Schedule C

Table 1

URUGUAY

BASiC EDUCATION QUALITY MPOVEMENT PROJET

Timetable of Key Project Processing Events

(a) Time taken to prepare: Twenty months

(b) Prepared by: The Central Directive Council (CODICEN) of theNational Public Education Administration (ANEP) withthe assistance of an IBRD financed PPF and a JapaneseGrant.

(c) First Bank Mission: April 1992

(d) Appraisal Mission November 1993

(e) Negotiations: February 28, 1994

(f) Planned Date of August 1994Effectiveness:

(g) Relevant PCRs Uruguay - Loan 1594 - UR, 1978and PPARs:

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Schedule CTable 2

URUGUAY

BASIC EDUCATION QUALITY IMROVEMENT PROJECT

SrATUS OF BANK GROUP OPERATIONS IN URUGUAY

A. Statement of Bank Loans as of December 31, 1993

Loan Fiscal Borrower Purpose .*mount less cancellations)Number Year (US$ millions)

=____ ______ Bank Undisbursed

27 Loans fully disbursed 731.2 0.0

2622 1986 UTE" Power Sector Rehabilitation 45.2 34.8

2802 1987 ANCAP k' Refinery Modernization 24.4 5.1

2921 1988 Uruguay Water Supply Rehabilitation 22.3 6.8

3021 1989 Uruguay Transport 80.8 54.3

3082 1989 Uruguay 2nd Technical Assistance 6.5 3.5

3131 1990 Uruguay 2nd Agricultural Development 65.0 3.8

3221 1990 UTE Power Modernization 62.5 26.6

351 1993 Uruguay Public Enterprise Reform 11.0 7.9

TOTAL 1,048.9of which has been repaid 414.1

TOTAL NOW OUTSTANDING 634.8

AMOUNT SOLD 4.6of which has been repaid 4.6

TOTAL NOW HELD BY BANK

TOTAL UNDISBURSED 142.8

Ed Nationa Power Compmyb/ National Oil Company

Table 3

URUGUAYBASIC EDUCATION QUALITY DMOVEMENT PROJECT

STATUS OF BANK GROUP OPERATIONS IN URUGUAY

B. Statement of [FC Investments as of December 31, 1993

Fil Year Obligor Type of Business Original Gross Commitments Held Held by UndisbursedCommitted by Participants (including

IPC IFC Participants Total IFC Participants)Loan Equity

1976 FPbrica Uruguaya de Neumaticos S.A. V Tire Manufacturing 3.80 - _ 3.80 - - -

1979 Acodike Supergas S.A. F LPG Bottling 0.95 - _ 0.95 - - -

1979/83/86 Astra Pesquerfas Uruguayas S.A. Fish and Fish Processing 7.79 2.25 - 10.04 6.08 - -

1980/89 Sur Invest Casa Bancaria S.A. Money & Capital Market 12.00 0.59 10.00 22.59 1.79 - -

1985 Azucitrus S.A. Food and Agribusiness 10.40 3.15 - 13.55 13.03 - 1.261990 Migranja S.A. Food and Agribusiness 2.35 2.00 - 4.35 4.35 - 0.60

Granja Morm Food Manufacturing 3.80 - - 3.80 3.75 - 1.40t993 Banco Comercial Financial Scrvices 5.00 - - 5.00 5.00 - 4.00

Total Gross Commitments Y 46.09 7.99 10.00 64.08Less: Cancelations, Terminations, Repayments and Sales 20.03 0.04 10.00 30.07

Total Commitments Now Held # 26.06 7.95 0.00 34.00 34.00 0.00 7.26

Pendiniz Commitments

Total Commitments Held and Unsigned Commitments 26.06 7.95 - 34.00Total Undisbursed Commitments 6. 0.45 7.26 _

at Investments which have bcen fully cancelled, terminated, written.off, sold, redeemed or repaid._I Gross Commitments consist of approved and signed projects.g/ Held Commitments consist of disbursed and undisbursed investments.

B R A Z I L

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