IK* ~So DEPARTMENT OF STATE AGENCY FOR INTERNATIONAL DEVELOPMENT Washington, D.C. 20523 UNCLASSIFIED AID-DLC/P-738 June 19, 1968 MEMORANLJ4 FOR THE DEVELOPMENT LOAN COMMITTEE SUBJECT: El Salvador: Educational Reform Program Including ITV Attached for your review are the recommendations for authorization of a loan in an amount not to exceed $1,900,000 to the Government of El Solvador to assist in financing the United States dollar costs of equipment, material, and services necessary for the conduct of the Borrower's Educational Reform -rograin to provide a revision of curricula in public schools and establish an instructional television facility which will contribute a new technology to extend educational opportunities. Please advise us as early as possible but in no event later than close of business on Wednesday, June 26, 1968, if you have a basic policy issue arising out of this proposal. Rachel C. Rogers Assistant Secretary Development Loan Committee Attachments: Summary and Recommendations Project Analysis ANNEXES I-V UNCLASSIFIED NCLASSIFED AID-DLC/P-738 EL SALVADOR June 19, 1968 EDUCATIONAL REFORM PROGRAM INCLUDING ITV Table of Contents Page SUMMARY AND RECOMMENDATIONS i L BACKGROUND OF NEGOTIATIONS ............. 1 IL ANALYSIS OF EXISTING EDUCATIONAL SYSTEM 5 A. Ministry of Education ................. .. 5 B. Plans and Programs ....................... 6 C. Present Teaching Staff................... 13 D. Cost of Present Educational System........ 15 E. Basic Defects and Bottlenecks of Present Syster.......... ............................ 17 IIL THE GOES EDUCATIONAL REFORM ............ 23 A. The Five-Year iProgram 1968-1972.......... 23 B. Broad Program Objectives .................... 23 C. Priority Areas ............................ 23 D. Program Descriptiojns.......................... 24 E. Physical Objectivet of Rcform Program ...... 30 F. Estimiated Costs o' Prt,poscd Reforms ....... 32 IV. INS'I'RU,'['] ONA1, TELi:VISION IN EL SALVADOR 35 A, Ra;,foita] orv ! e of iTV jo i 1alvador ...... 35 B. Ministry o! Iduc atio) 1I Program ......... 40 V. FINANCIAi, ASPEC IS i'1H 1'PROJECT........ 47 A., Tital Project Requirer: t................ 47 B. Te ch ical Se rvi ces ......................... 48 C. The Borrower.... .......... 48 D. Tinjing of ]rI,,,po w.,i AI) -nd GOES Inputs .... 48 E. Teurnis of t0h( Loan............................... 48 F. Jukljifical.ion of Loa, "J'.rvis................... 48 G. Availablit-y of Alternarivc Sources of Funds.. 48 H. Rupaynment Capacity .......................... 49 I. I pact -11 1J.. .. Iu ly........... ..... ........... 49 VL TECHINICA L fPi:)C'i'S 1).g J1 V PROGRAM ....... 50 A. All:) ".j:e h~j1.al .' titac ..................... 50 B. Equipj, it....................................... 50 C. Procur -n ,-nt .. ..... ....................... 52 D. 1easibility............................... 53 VII. CIAP EVALUATION.......................... 54 VIII. COVENANTS AND CONDITIONS ................ 55 IX. IMPLEMENTATION PLAN..................... 56 UNCLASSIFIED UNCLASSIFIED ANNEXES L Checklist of Statutory Criteria including Mission Director t s Certification. I. GOES Educational Reform Plan 1. Organization Chart - MinEd Before Reform 2. Organization Chart - MinEd 1968 3. Organization Chart - ITV Division 4. Cost of Present Educational System 5. Five-year Inplementation Plan - Plan Basico 1968-72 6. Four-year Implementation Plan - Primary 1969-72 7. Staff Requireinents - Technical Assistance 8. Resum6 - Educational Reform Program - Primary 9. Rebunmi6 - Educational Reform Program - Plan Basico 10. Ongoing Costs - 5 Year Ed. Reform Program incl. ITV 11. Ongoing Costs - 5 Year Ed. Reform Program incl. ITV IZ. Additional Costs - Ed. Reform Program incl. ITV II. El Salvador's Foreign Debt, international Reserves, and Debt Repayn-ient Capacity IV. Engineering Data 1. Part I - D,,scription of Experimental Stage Part.L .i;uiptment for Experimental Stage 2. Floor PJai ..ITV Studio 3. Equipment Diagram - ITV Studio Complex V. Loan Authorization (Draft) UNCLASSIFIED UNCLASSIFIED AID-DLC/P-733 June 19, 1968 SUMMARY AND RECOMMENDATIONS 1. BORROWER: The Government of El Salvador (GOES). The Ministry of Education will be the responsible implementing agency for the Project. 2. a. Loan: An amo;nt not to exceed $1.9 million to be used for U.S. dollar prociurement of equipment and services except For the local currency component of U.S. technical assistance, contract:; whihi will approx:imate $53,440, or 2.8% of the loan. b. Term" IF-!flen- over a 1i0-year term includin g a ]0-year gr'Ie,mV le'Yi, 90 amloi'tx:, :,ition f, pwinc i pal]. Interest on dI.-­ L)Ul'1~, ha r ,iI' IH b -t the o1'01t 2 annu ly ,w-i'nIc 3. TOTAL COST OF PROJECT: $5, 214, 500 AID Grants $1, 053, 000 20. 2% AID Loan 1,900,000 36.4% GOES Contribution 2, 261, 500 43.4% $5, Z14, 500 100. 0% Commitment of proposed AID grants is expected to be in FY 68 and fY 69. Conmiitmunt of AID Loan is expected to be during FY 69 and drawdown by the end of FY 70. GOES contribution will be rnade during CY 68-69-70. 1. PURPOSE Oi< THE PROJECT: 'l'o provide a revision of curricula, upgrade teacher and supervisor training for all public school grades 1-12, arid to develop an ITV project which can provide a viable demlonstration, for possible adaptation by other Latin Arnericaa countries, of the con­ tribution of this new technology to extend educational opportunities. 5. DESCRIPTION OF THiE PROJECT: The loan wiJ.l rive assistance to the GOES to provide, the equipmenc and relevant technical services necessary to establish and put into operation an instructional ele Vision studio, transmitters, equip an educational materials center, supply TV receptors for Plan Ba'sico (junior high school) classrooms, and video tapes for recording new curriculum TV courses. UNCLASSIFIED ii UNCLASSIFIED 6. BACKGROUND: Since 1961 AID has supported the GOES in its comprehensive effort toward improvement at all educational levels. Programs have been carried out to provide extensive technical assistance, a continuous scholarship program to train teachers in the U.S. or a third country for normal schools, construction and equipment of primary school classrooms and a normal school, a regional textbook program, earthquake damage reconstruction of primary and secondary schools, and equipment for technical schools. At the meeting of the Presidents in Punta del Este in April of 1967, high priority was given to the improve­ ment and extension of education. President Sinchez responded to this challenge by suggesting that El Salvador undertake development of an educational reform program including instructional television and requested assistance .in this project from President Johnson. President Johnson sent a titter to 1'resident Fidel Sanchez Hernandez expressi ru his Inter'c-:;t iii t,:.kInrg fill advantage new technclo, tc, extend Id t toni .iportunities. A teani was sent from AID/W to S,.,n S:jlvad(o. to work with the Mission and the Mini.-,try 1 .,; in (Irwln r up an educational tculevisj n p'i . ,t wtli -L, ,n d :I to 'he:r countries in the hol!Ij h, i ,, . C I - of thi,; now tlechnology. This Special Project Tealn, chaired by Philip Glaessner, AID/W Deputy Assistant Administrator, Office of Capital Development, arrived in San Salvador the end of January of 1968. Two members of the team remained in San Salvador during virtually all of the intensive review. The others made visits at needed to San Salvador in a con­ sultative and advisory capacity. The Team and USAID/ES staff coordinated conceptual development of the Project and data collection with the collaboration of personnel of the Ministry of Education, iNational Planning Council, UNESCO, Robert R. Nathan Group, and ROCAP. The GOES submitt.d a forimal application dated May 22, 1968 for loan andl ..rant ;isistance in this innovation. IHCLASSIF It; iii UNCLASSIFIED 7. ALTERNATIE SOURCES OF FINANCING: The Export- Import Bank, and the IDB have not expressed an interest in considering this proposal. IBRD is reviewing a proposal for assistance to Bachillerato (grades 10-12) which will also include some classroom facilities available to Plan Basico. 8. VIEWS OF THE COUNTRY TEAM: The Country Team strongly supports this high priority project which will contribute to the upgrading of educational opportunities in El Salvador. 9. STATUTORY CRITERIA: Certification from the Director of USAIDiEI Salvador, required under Section 611(e) is attached (Annex I ) Signing of the Loan Authorization will constitate the AJD/W approval of that certification. All other statutory criteria have been iret. 10. ISSUES: There are no major issues. 11. RECOMIvlENDATION: Ait horization of a loan to the Governmietit of El Salvador ii iin aniount not to exceed U. S. $I, 900, 000 Lsubject to the following terms and conditions: a) interest and Terrms oef epayr- e nt The Borrower shall repay the loan to A. I. D. in United States dollars within forty (40) years including a grace period of not to eXceed ten (10) years. The Borrower shall pay to A. I. D. in United States dollars on the disbursed balance of the loan interest of two p,'rcent (2%) per 00L1111 during the grace period and two and one-half p'reiicnt (Z L%) per annum there­ a fte r. UNCLASSIFIED ............... ED 1,.0he Trms ,an onditions 1i .'Al Borrowixr procurent-of' ods -an svces~e f~na~6e - ~la frh roecV shall. have­ thei sour e and origin in he. Unied ,S ates iof' Aner ca' Orl mienibe-r, coun-ries of';thie: Ce.ntr'L Amer c Cornon:-Mrkt,. -2 -~United-State -dolliars--7uiiized 'Uder' the -loan-tu ~vUf'nance local costs'.shall- be made available, to' the'', Br0z esgethou~.- g6i11.i the Spec''ial Letter. factory to A.D.. and shall beosc onlyi fo2rOue Nii6et in' h- United Stas'. ue nf~fi rcr­ ~(3)~ Borrower shall review' with A.I.D. its annual edu~cation'2 budget, prior to submission thereof' t t'ek Salvadoran Congress. (4) The loan shall be subject to such 1other terms 'and con ditions as A.I.D. ma~y deem advisable.