Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 4918b-BR

BRAZIL

STAFF APPRAISAL REPORT

OF AN URBAN BASIC EDUCATION PROJECT

IN NORTH AND CENTERWEST

April 24, 1984

FILE CEPProjects DepartmentLatin America and the Caribbean Regional Office

This document has a restricted distribution and 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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BRAZIL FOR OFFICIAL USE ONLY

STAFF APPRAISAL REPORT

URBAN BASIC EDUCATION PROJECT IN NORTH AND CENTERWEST

Table of ContentsPage No.

BASIC DATA .............. ......................................... i

GLOSSARY .*.* ..................................... ii

LOAN AND PROJECT SUMMARY ... ................. ..... ......... iii-iv-v

I. INTRODUCTION ................................ * 1

II. THE BASIC EDUCATION SUBSECTOR .............................. 3

A. Introduction .................. .*** 3B. Critical Issues Facing Basic Education Subsector in

North/Centerwest Brazil ... ..... . .......... ........... . 4C. Consequences of Deficiencies in Basic Education in

North and Centerwest Regions ............... *.......... 10D. Government Policy for the Subsector ..... ................ 11E. Constraints on Implementation of Government Policies

for the Subsector ..... ............ .. ................. 12F. A Strategy for the Basic Education Subsector ............ 12

III. SUBSECTOR PROJECT FOR BASIC EDUCATION INNORTH AND CENTERWEST ..............................*..... 13

A. Introduction o..................o ................. oso o 13B. Objective 1: Improvement of Educational Quality and

Efficiency in Grades 1 to 4 of Primary School s.o..... 14C. Objective 2: Expanding Access to Basic Education ...... 18D. Objective 3: Building Institutional Management and

Investment Capacity for the Basic EducationSubsector at Municipal, State and Federal Levelsof Government ........... . 19

This Report is based on the findings of a two-stage appraisal mission thatvisited Brazil in February/March and September/October 1983. Mission membersincluded Ms. Sherry Keith (General Educator, Mission Leader) and Messrs. ReneCorradine (Facilities Planner), Roberto Carneiro (Educator, Consultant),James Pines (School Feeding Specialist, Consultant), Jorge Ferreira da Silva(Administration Specialist, Consultant), and Alberto Mello e Sousa(Economist, Consultant).

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

TABLE OF CONTENTS (continued) Page

IV. MANAGEMENT AND IMPLEMENTATION ................................ 22

A. Overview ... .... .o*...... o......... .................. .............. 22B. Subsector Approach . ....................... ... ............ . 22C. Organization ........................................................... . 23D. Staffing .................................... o...... , ..... # ............ 25E. Implementation Procedures * ............................... 26F. Criteria for Approval of State Projects ................... 28G. Criteria for Procedures for Allocating Project Funds ...... 29H. Phased Implementation ........ . . . . . . . .................... . ............... 31

V. SUBSECTOR PROJECT COSTS AND FINANCES ......................... 31

A. Costs Financed ...*........ ............................................... 31B. Investment Program . ...................................... . 31C. Basis of Cost Estimates ........................ .... 31D. Contingency Allowance ... ... .. . . . ....... . . ........ .... .......... . 33E. Foreign Exchange Component ................................ 33F. Recurrent Cost Implications .............................. 33G. Procurement . .................. ... ........ 34H. Financing and Bank Contribution ........................... 35I. Disbursements ............................................................ 35J. Auditing ........... o....... so.........so..... ..... ...................... 37K. Readiness for Implementation ....... ............ 37L. Retroactive Financing ........ . . . . . . . . ..................................... . 37

VI. BENEFITS AND RISKS .......... . . .. . ............... *.... ............. . ..... . 38

A. Benefits ...........................*0000000 .0.................O. 38B. Risks ....... ., ... . ..... o o .. o 39

VII. RECOMMENDATIONS .o ..... .. . .. . .. . .. . .. . ............... . ....... .. . o. .. . 40

TABLES ....... .o ..... .oo .... oo..o.oo..........oo.......... . -oo-o .......... 42-48

DIAGRAMS o.-...................ooo.......... o ......... ....... o .o.......... ... 49-51

ANNEXES:

1. Comparative Education Indicators.- ....................... o.. 522. Selected Documents Available in the Program File .... ....... 54

MP .. ........... o 0o. .... o....ooo.... 56

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BASIC DATA

Basic Education Net Enrollment Rates (1980)(Grades 1-8)

Centerwest 70%North 58%Northeast 50%Southeast 80%South 75%

Adult Literacy Rate (1980)

Brazil 69%Northeast 48%Frontier 63%Southeast 79%

Public Expenditure on Education by Level Relativeto National Total (1980)

Basic Education 47%Secondary Education 7%Higher Education 18%Other 28%

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GLOSSARY

COEPE - Coordination Unit for Primary Education(Coordinaria de Ensino de Primeiro Grau)

FAE - Foundation for Student Assistance(Fundacao de Assistencia ao Educando)

FNDE - National Education Development Fund(Fundo Nacional de Desenvolvimento Educacional)

INEP - National Institute of Education Research(Instituto Nacional de Estudos e Pesquisas Educacionais)

IRHJP - Joao Finheiro Institute for Human Resources(Instituto de Recursos Humanos Joao Pinheiro)

MEC - Ministry of Education and Culture(Ministerio de Educacao e Cultura)

OME - Municipal Educational Authority(Organizacao Municipal de Educacao)

PMT - Project Management Team.

PLIDEF - Program in Primary School Textbooks(Programa de Livro Didatico do Ensino Fundamental)

PNAE - National School Feeding Program(Programa Nacional de Alimentacao Escolar)

SEAC - Subsecretariat of Coordination(Subsecretaria Adjunto de Coordenacao)

SEC - State Secretariat of Education and Culture(Secretaria de Educacao e Cultura)

SEMEC - Municipal Secretariat of Education and CultureSecretaria Municipal de Educacao e Cultura

SEPS - Secretariat of Primary and Secondary Education(Secretaria de Ensino Primario e Secundario)

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BRAZILURBAN BASIC EDUCATION PROJECT IN THE NORTH AND CENTER-WEST

Loan and Project Summary

Borrower: Federative Republic of Brazil

Amount: US$40.0 million, including a capitalizedfront-end fee of US$0.1 million.

Terms: Repayment in 15 years, including 3 years of grace, withinterest at the Bank's standard variable rate.

Beneficiaries: The Ministry of Education and Culture, seven states and twofederal territories would be the major beneficiaries of theloan proceeds, to be used in obtaining equipment forschools, educational materials and for training of staff.

ProjectDescription: The loan would help finance the Government's 1984-90

investment program for basic education in the North andCenter-West. The program objectives are to define along-term development plan for basic education, to improvethe quality of basic education in grades 1 - 4 of sevenstates and two federal territories in the North andCenter-West regions, and to expand access to basic educationwithin the region where existing facilities are inadequate.

Risks: Risks to project success include the possibility ofreduction to the planned investment program as a result ofcontinued financial difficulties in Brazil. To minimizethis risk, the Bank would disburse at a higher rate (72%)for 1984 and 1985, and a lower rate (40%) thereafter.Frequent turnover of project related personnel, particularlyat state level, could break the continuity in projectimplementation. To limit this risk, salary incentives havebeen agreed with the Government, and continuous projectrelated training and technical assistance are incorporatedinto project design.

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Financing Plan: ------ US$ Million-------

Local Foreign Total _

Government 40.0 - 40.0 50IBRD 30.5 9.5 40.0 50

Total 70.5 9.5 80.0 100

Estimated Disbursements: --- ------- - US$ Million--- -

Bank FY 85 86 87 88 89 90

Annual: 7.5 1/ 5.5 11.0 12.0 3.7 0.3

Cummulative: 7.5 13.0 24.0 36.0 39.7 40.0

Rate of Return: n.a.

Staff Appraisal Report: No. 4918b-BR of April 24, 1984.

1/ Including initial deposit into Special Account.

v

Estimated Costs: -------------US$ Million------

Local Foreign Total

National Programs 5.3 0.3 5.6Long-Term Planning andPre-Investment 1.0 1.0

Strengthen Local Administ. 1.5 0.0 1.5Special Projects 0.5 - 0.5Evaluation 0.5 - 0.5Administration 1.8 0.3 2.1

Sub-Projects 49.5 6.8 56.3State Textbook Programs 4.3 0.8 5.1Municipal Training andEducational Materials 16.9 2.8 19.7School Remodeling 9.9 1.1 11.0New Facilities 18.4 2.1 20.5

Total Base Costs 54,8 7.1 61.9Physical Contingencies 5.7 0.8 6.5Price Contingencies 10.2 1.3 11.5

Total Project Cost 70.5 9.4 79.9

Front-end Fee on Loan - 0.1 0.1

Total Financing Required 70.5 9.5 80.0

I. INTRODUCTION

1.01 The proposed project for Urban Basic Education in the North andCenterwest regions of Brazil is part of general Bank support for basiceducation. It is also an important element of the Bank's strategy in Brazil,which specifies human resources development and poverty alleviation as two ofthree priority areas for Bank action. In the education sector, the Bank isoperating in an environment of strict limitation on investment capacity andrecurrent cost expenditures. Therefore, emphasis is placed upon measuresthat maximize the efficient use of existing resources.

1.02 The education sector has identified quality improvement andstructural changes in educational management as the priorities for Banklending in Brazil. Main attention would be directed to basic educationbecause: (a) it is at this level that the greatest inefficiency is found;(b) improving efficiency and, therefore, broadening access without greatlyincreasing resource use is given high priority by the Government; and(c) there are important macro policy objectives to be addressed, particularlythrough management improvement and reorientation in the education financingsystem.

1.03 To date, the Bank has made five loans to Brazil for education andtraining. The first Bank education loan (Loan 755-BR, US$8.4 million, signedin June 1971) supported the expansion and improvement of 16 federalagricultural and technical schools at secondary and post-secondary levels.This project was completed on June 30, 1978. The PCR, January 1980, notedthat (a) the project was considered a success despite considerableimplementation delays and (b) graduates from project schools had generallyfound employment quite readily or continued successfully with furtherstudies.

1.04 The second Bank education loan, designed to assist the Ministryof Education and Culture in implementing a major educational reform(Loan 1067-BR, US$23.5 million, signed in September 1974) financed theconstruction and equipping of 15 basic and 31 secondary level schools andincluded training for teachers and administrators, technical assistance andpre-investment studies. It focused on eight northeastern states with the aimof increasing access to basic and secondary education, training techniciansand skilled workers, improving the quality of education through trainingprograms for teachers and technical assistance, and improving the educationaldata base through a series of studies. This project was completed in June1983 and the PCR is being issued. The major lesson drawn was the need forgreater flexibility in project design to accommodate changing educational andpolitical circumstances likely to occur during project implementation.Loan 1067-BR also experienced delays in implementation and closed 3.5 yearsbeyond the original termination date.

1.05 The third Bank education loan (Loan 1452-BR, US$32 million, signedin September 1977) is assisting the Federal Ministry of Labor instrengthening the national vocational training system and expanding its

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capacity to meet skilled manpower needs for the economy. Implementation ofthis project has been delayed because of a shortage of Government counterpartfunds in the present economic crisis. The project, however, was recentlyamended and brought into the Special Action Program, and implementation isexpected to be completed satisfactorily.

1.06 The fourth Bank education loan (Loan 1867-BR, US$32 million, signedin July 1980) has the objectives of expanding access to and improving thequality of, basic education in 248 rural municipalities in 9 states ofNortheast Brazil. While implementation is approximately 18 months behindschedule, primarily because of delays in effectiveness and administrativedifficulties in dealing with such a large number of the least developed ruralmunicipalities in Brazil, the project is providing an integrated approach tobasic educational deficiencies by building schools, training teachers,providing educational materials and school meals and strengtheninginstitutional capacity. This project is being evaluated carefully by animpact study financed through the loan and supplemented by Bank researchfunds.

1.07 The fifth education project (Loan 2366-BR, US$20 million approvedby the Bank on December 8, 1983) finances the strengthening of existingagricultural and industrial technician training institutions throughimprovements in planning, management, curricula content, instructional andadministrative staff training, physical facilities and equipment, graduateplacement and follow-up and special studies. The project is expected to leadto greater efficiency in the system without requiring financial resources inaddition to the Government's planned investment. It is the first educationsubsector loan to be made in Brazil, and, therefore, it sets the precedentfor more flexible, policy-based lending tn accordance with the Bank's longerrange strategy in the sector.

1.08 During the past three fiscal years, the Bank has also conductedextiensive education sector work. Two subsector studies of industrialtechnician training and agricultural technical training education were issuedin 1982. Likewise, an in-depth analysis of the basic education subsector wasconducted during FY82 and FY83. The subsector memorandum, issued in August1983, identified the major problems facing basic education throughout Brazilas:

(a) the low quality and internal inefficiency of the initial fourgrades of primary school;

(b) the lack of access to primary school for all Brazilian children7-14 years of age;

(c) the managerial weakness of the massive educational network whichspans the country; and

(d) lack of funding for both capital and recurrent costs associatedwith primary schooling.

Profound regional disparities were confirmed in all of the above with theNortheast, North and Centerwest lagging significantly behind the South andSoutheast (Table 1.1 appended). As a result, the Bank and the Governmentagreed that, because of limited investment resources, priority should be

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given to these less developed regions. The proposed subsector project inurban basic education for the North and Centerwest regions which absorbsubstantial migration from the northeastern and southeastern rural poor, hasbeen selected on that basis. It would complement Loan 1867-BR (para. 1.06)currently under implementation in rural Northeast Brazil. The proposedproject would address the major issues facing the subsector: low educationalquality and efficiency; lack of educational access, poor management and lackof funding to the subsector.

II. THE BASIC EDUCATION SUBSECTOR

A. Introduction

2.01 The Basic Education Subsector. The basic education subsector isdivided into two cycles--lower primary (grades 1 to 4, ages 7 to 10) andupper primary (grades 5 to 8, ages 11 to 14). The minimal educationalobjectives of the lower primary cycle are functional literacy and numeracy.Adequate academic preparation for secondary education is the objective of thesecond cycle. The basic education subsector currently enrolls some 23million students in the 24 states and two federal territories of Brazil.

2.02 The North and Centerwest Regions. These two regions, frequentlyreferred to jointly as the Frontier, account for more than 85% of Brazil'sexternal border with other nations in South America and constitute thelargest undeveloped area in the country. In terms of economic and socialindicators (Table 2.1 appended), they fall below national averages and thoseof the South and Southeastern regions of the country on per capita income;population over ten years earning more than two minimum wages; and thepercentage of urban population. At the same time, they are slightly betteroff than the Northeast, with the exception of nutritional status (15% of thepopulation in these two regions is estimated to suffer from caloricdeficiencies, while 13% is plagued by such deficiencies in the Northeast).The Centerwest 1/ is characteristically an agricultural region whosepopulation grew at the rate of 4% annually between 1970 and 1980, slightlyabove the national average. The region has absorbed significant excess laborfrom the South of Brazil (Sao Paulo, Parana and Rio Grande do Sul). TheGovernment has sponsored several large development programs, includingPolocentroeste and Polonoroeste, designed to attract population from otherregions in order to exploit the area's vast agricultural potential.

2.03 The urban population has grown steadily over the past decade andsurpassed 50% of the total regional population by 1980. The growingconcentration of land ownership has increasingly relegated the agriculturallabor force to rapidly growing urban agglomerations throughout the region.

1/ Centerwest includes the states of Goias, Mato Grosso Sul and MatoGrosso.

The "boia fria" 2/ common to southern Brazil agriculture has also become afamiliar pattern in the Centerwest. While agriculture is of prime importanceto the Centerwest, contributing approximately 24% to the region's economicoutput, services accounted for nearly 68%, with industry slightly less than9% (1975).

2.04 The North, 3/ like the Centerwest, contains vast expanses ofuncolonized territory. However (in six federal units), between one-third andone-half of population is concentrated in the capital cities alone(Table 2.2 appended). Unlike those of the Centerwest, these cities grew morerapidly than the region as a whole (at a rate of 7.3% above that of 5% forthe region). The North is dominated by the Amazon basin, noted for itsmineral and hydroelectric potential. It too has received substantialmigration, principally from the Northeast. As in the Centerwest, rapidpopulation growth has created economic dislocations and social tensions. Theregional labor market has not been able to absorb the migrant population andsqualid slums have mushroomed on the outskirts of almost every large andmedium size city.

B. Critical Issues Facing the Basic Education Subsectorin North/Centerwest Brazil 4/

2.05 There are two categories of critical issues facing basic education:educational issues and management issues. Each area encompasses a series ofinterrelated problems which need to be considered in formulating a strategyfor making improvements over the medium and long term.

1. Educational Issues

2.06 Salient educational issues are the low quality and quantity ofgraduates from the first cycle of basic education and the lack of access toschool. These are interrelated problems: the poor quality of schoolingoffered in the lower grades of primary school directly affects internalefficiency by increasing repetition and contributing to student dropout. Lowinternal efficiency, characterized by a substantial proportion of repeatingstudents in the early grades (1 and 2), leads to overcrowded facilitieswhich, in turn, limits access for new students and diminishes the quality ofeducation offered during the first years of school. These issues arediscussed in the following paragraphs.

2/ "Boia-fria" literally means cold-lunch, but, actually refers toagricultural workers who live in towns and cities and go daily to thecountryside carrying their "cold" lunches.

3/ The North includes the states of Acre, Para, Amazonas, Rondonia and thefederal territories of Roraima and Amapa.

4/ For a discussion of major issues in basic education in Brazil at largesee Brazil: Basic Education Subsector Memorandum, World Bank,August 1983.

(a) Low Quality and Quantity of Graduates

2.07 The quality of student learning is especially precarious in thefirst four years of primary school in urban areas. 5/ Likewise, the numberof students who complete four years of primary school is low. Two-thirds ofthe students who enroll in first grade drop out before reaching fourth grade(Table 1.1 appended). One-third to one-half of the students in grade 1 arerepeaters, as are 15-30% in grade 2. This means that there is a significantproportion of over-aged students at each grade level. In the state of Acre,for example, the average first grade student is ten years old. Loweducational quality and internal efficiency are inextricably interrelatedand have multiple causes including (a) poor teaching; (b) lack of studenttextbooks and materials; and (c) lack of student learning time. Each ofthese major educational deficiencies and its consequences are discussedbelow.

2.08 Poor Teaching. Three factors prejudice the teaching process inprimary schools: (a) the lack of specific in-service and pre-service trainingin teaching of literacy and numeracy; (b) the lack of essential "tools" ofthe trade, e.g., supplies and materials; and (c) poor working conditions.

2.09 While 77% of the urban teaching force has completed secondaryschool in the North and 86% in the Centerwest, these teachers lack trainingin how to teach children to read and write and how to use specific learningmaterials in the first two grades of primary school. This fact is evidencedby the low internal efficiency in grades 1 and 2 of urban primary schools(Table 1.1 appended). Existing in-service training to upgrade teachers'skills is largely limited to short courses (20-40 hours) during summervacation. These courses do not always focus on the most essential parts ofthe curriculum--language and mathematics--or on the utilization of specificlearning materials.

2.10 Books, chalk, paper and pencils are the tools of a teacher'strade. Throughout these two regions, these items are not systematicallysupplied to the schools. As a consequence, many teachers have to spend aninordinate amount of classroom time dictating or copying lessons, informationand exercises for students on chalk boards. The absence of essentialeducational materials and equipment makes even the best trained teacherrelatively ineffective and unproductive.

2.11 All state school systems of the North and Centerwest, haveteachers' statutes and/or regulated employment contracts as well as regulatedwage scales (Table 2.3 appended). In capital cities, municipallyadministered schools usually pay the same wages as state schools. In fact,

5/ Here we refer to primary schools principally in urban areas of Northand Centerwest Brazil. The situation with respect to rural areas hassimilarities as well as differences. These are discussed fully inBrazil: Basic Education Subsector Memorandum, World Bank, August 1983.

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the state often subsidizes, or directly pays, the wages of urban municipalteachers. While state wage levels cannot be upgraded in the context ofthe present economic crisis facing the country, they should be enforcedas presently constituted and extended to municipal schools wheneverfeasible. 6/ Moreover, signed employment contracts should be the basis ofcontracting municipal as well as state teachers.

2.12 Lack of Student Textbooks and Materials. Students must purchasetheir own books because there are not enough free textbooks, learningmaterials, and school libraries for primary school students in Brazil. Lessthan one book per student enrolled in grades 1 to 4 of primary school isdistributed annually through the Textbook Program for Basic Education(PLIDEF). The purchase of textbooks at an average cost of $1.50 is beyondthe financial capacity of the majority of students attending primary school.The importance of textbooks for academic achievement has been demonstratedboth in Brazil and in other developing countries. 7, Moreover, pencils,paper, erasers, and such must be purchased by students, which means that manystudents in the poor urban areas do without these essentials. Nor are theurban schools of the North and Centerwest equipped with even rudimentaryschool libraries or classroom books to supplement textbooks and provideintellectual stimulation for the students.

2.13 Lack of Effective Student Learning Time. Students do not haveenough time to learn because of (a) multiple shifting, which reduces thelength of the school day, and (b) reduced attendance caused by direct andopportunity costs to schooling, as well as poor health.

2.14 Most urban schools operate with three student shifts per school dayand, in some cases, four as a result of serious overcrowding of existingfacilities. Under these circumstances, very limited time is available (2 to2-1/2 hours daily) to cover the standard curriculum through in-classroom

6/ A review of the status of compliance with a loan covenant of BR-1867requiring the presentation of a teachers' contract/statute for the 248municipalities included in that project revealed that 241 of 248 hadpresented contracts/statutes to the municipal legislature by December/83and as of February/84 over 50% had already been legally adopted.

7/ Research in Rio Grande do Sul among 20,000 first and second gradestudents demonstrated that, in rural and urban state schools, as well asmunicipal schools, the number of textbooks owned by students was the mostpowerful predictor of a passing grade in Portuguese language in grades 1and 2. Moreover, the effectiveness of textbooks was found to be greaterif the student's parents had no schooling. These findings are consistentwith other studies in developing countries. The evidence reviewed in theWorld Bank Staff Working Papers, Textbooks and Achievement reveals thatthe availability of books is the most consistent school factor inpredicting academic achievement. It had positive effects in 15 of 18studies in countries as broadly ranging as Brazil, Ghana, thePhilippines, Thailand and Chile.

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student learning. Student attendance is also low (less than a 65% dailyaverage) and irregular in the urban primary schools of the North andCenterwest. Reduced attendance can be traced to three principle factors:direct costs, opportunity costs, and poor student health.

2.15 Primary school attendance has direct costs which must be paid bythe family. These include the cost of textbooks, materials, transportationand uniforms. They are estimated at a minimum of US$25 per student per year,or about 7% of the annual income for a family with three children in primaryschool (Tables 2.4 and 2.5 appended). Rising costs of primary schooling havebeen shown to increase the probability of student dropout. 8/ Provision offree educational materials, including textbooks, pencils, paper and otheressentials, limits the burden of direct costs of basic education on families,

2.16 Opportunity costs of primary schooling (e.g. the income foregoneby students who attend school rather than work) reduce student dailyattendance and often result in complete student dropout. In the Braziliancase, opportunity costs of attending the first grade constitute 24% of thecosts borne by the individual, and, by the fourth year, these are up toapproximately 40%. 9/

2.17 Poor student health and nutrition has a negative impact upon schoolattendance. While the Government's school lunch program (PNAE) reaches sevenout of ten students in over 95% of the municipalities in these regions,the facilities for serving school lunches, training of cooks to prepare themeals and regularity in delivering of food supplies are deficient.

(b) Lack of Access

2.18 Lack of access to schooling affects school age children in theNorth and Centerwest regions, where average net enrollment rates are 58% and70% respectively (Table 1.1 appended). Net enrollment in grades 1 to 8 iscurrently 68% nationwide for all children seven to 14 years of age inBrazil. Low enrollment in urban areas is due to: (i) lack of schoolfacilities; (ii) poorly located facilities; and (iii) low internal efficiencyof existing facilities.

(i) Lack of School Facilities. There are not enough school places toaccommodate all children seven to 14 years of age in the North andCenterwest. Deficits in grades 1-4 are estimated at 16% and 11% ofcurrent capacity in urban areas of the North and Centerwestrespectively;

8/ See K. H. Lee and J. P. Tan, Financing Primary and Secondary Educationfrom Private Household Resources: Prospects for Malawi, EducationDepartment, World Bank, October 1983.

9/ See G. Edward Schuh, "Increasing the Effectiveness of Food Aid:Offsetting the Opportunity Costs of Schooling" presented at the WorldFood Programme/Government of the Netherlands Seminar on Food AidMarking the Twentieth Anniversary of the World Food Program; The Hague,October 1983.

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(ii) Poorly Located School Facilities. Existing schools are not alwayswell located because (i) school authorities do not use schoollocation planning techniques to site additional facilities; and(ii) the overlap of state and municipal jurisdictions in the sameurban area leads to duplication of activities (e.g., two schoolswithin a short distance of each other along with no schools inother locations). Poorly located schools reduce access becausestudents from one area must travel to another in order to attendschool. Transportation costs may inhibit attendance altogether orsignificantly reduce its frequency;

(iii) Low Internal Efficiency. Low internal efficiency in the earlygrades of primary school limits the availability of places to newstudents (para. 2.07). An improvement in internal efficiency,principally through investment in education quality, canpotentially increase student flows through the system, reduceovercrowding and, consequently, increase access more thanproportionately to the increase of facilities.

2. Management Issues

2.19 Primary schools are administered directly by state and municipalauthorities 10/, while the Ministry of Education and Culture establishesnorms, policies and national plans and provides limited investment funds andtechnical assistance for the subsector. Six important administrativeproblems confronting the subsector are: (a) the dual state/municipal deliverysystem for basic education; (b) the lack of administrative staff at themunicipal level; (c) poorly trained staff at the state level; (d) theinability to mobilize technical expertise available nationally to assiststates in these two regions; (e) inadequate planning; and (f) lack offinancial resources.

2.20 Dual Delivery System. De facto, both state and municipalauthorities run primary school systems. The school systems overlap in theurban areas of all states of the North and Centerwest. The consequences ofthis administrative overlap are (a) duplication of services, including schoolfacilities (para. 2.18); (b) uneven quality of education within the same citybecause state governments have more resources and generally offer higherquality education than municipal governments; (c) neglect of statewideeducational planning functions due to state's administrative burden ofrunning primary schools and a planning perspective which limits itself to thestate school system; and (d) the choking off of federal resources frommunicipalities which do not deal directly (as a rule) with the federalgovernment.

10/ With the exception of the Federal territories, in which basic educationis provided by the Federal Government itself.

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2.21 Lack of Administrative Staff in Municipalities. Mostmunicipalities do not have the financial resources to staff a municipaleducational administration unit (referred to as Municipal EducationalOrganizations, OMEs). Consequently, municipalities cannot provide essentialsupport services to their schools such as physical maintenance, in-serviceteacher training, pedagogical supervision and technical assistance.

2.22 Poorly Trained Staff at State Level. State Secretariats ofEducation (SECs) are lacking in staff with training in educational planning;project planning, administration and finance; school location planning andpedagogical supervision. The consequences of these staff deficiencies aremanifest in the educational problems (quality, efficiency and access)discussed in paragraphs 2.06 to 2.18.

2.23 Inability to Mobilize National Expertise. The Ministry ofEducation's ability to mobilize technical assistance for the less developedregions of the North and Centerwest has been limited. The Secretariat ofPrimary and Secondary Education (SEPS) has, under its direction, severalextremely large, specialized institutions: PNAE (Program for SchoolNutrition), FAE (The Foundation for Student Assistance), FENAME (the NationalEducational Materials Foundation) and IRHJP (the Joao Pinheiro Institute forHuman Resources). Each of these institutions is responsible for providingspecialized technical assistance to state educational authorities, as wellexecuting specific programs for basic education on a national level.Their capacity has been best developed in the southern regions of thecountry. The tremendous human and financial resources of these institutionsneed to be mobilized to assist the northern and central regions. In order toachieve a larger and more integrated level of technical assistance on thepart of SEPS and its related agencies, a stronger coordinating unit withinSEPS is needed.

2.24 Inadequate Planning. Lack of short term planning is manifest atstate and municipal levels in several ways: the absence of school locationplanning (para. 2.18); the poor allocation of teachers and materialsavailable, e.g., the better teachers and more learning materials beingdestined to the upper rather than lower grades (1 and 2) of primary schoolwhere deficiencies are most critical; and the lack of clearly specifiedtechnical criteria and appropriately trained staff to appraise educationalinvestment plans at state and federal levels. Each contribute to poorallocation of limited investment funds.

2.25 The lack of long term planning for basic education in the North andCenterwest regions reflects a lack of national level planning. TheSubsecretariat of Coordination (SEAC) has macro educational and financialplanning functions for the subsector. Currently SEAC is understaffed, lacksspecific technicians and does not have the budget to contract specializedconsultant services or to purchase computer hardware and software needed tocarry out technical activities related to educational planning and subsectorfinance. SEAC has been responsible for the preparation of World Bank andother internationally funded projects. This responsibility places anexcessive burden on the Subsecretariat in addition to its routine financial

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planning, as well as medium and longer term educational planning functions.In any institution-building effort, SEAC needs to be fortified because of thecentral role it plays in providing the technical analysis of policy decisionsrelated to the subsector.

2.26 Lack of, and Poorly Utilized, Financial Resources. The basiceducation subsector in the North and Centerwest regions suffers from a lackof both recurrent and investment funds. The limited state and municipalcapacity to fund the subsector is due to the weak municipal and state taxbase in general and the highly centralized taxation system, which is genericto the fiscal system in Brazil rather than specific to the education sectoror to the North and Centerwest regions. Resolution of the macro problems offinancing the basic education subsector needs to be based on a carefulanalysis of alternative financial mechanisms studied systematically at thenational level and discussed in conjunction with general fiscal reform. Thelack of investment funds is, however, exacerbated by the current economicsituation and the states' lack of capacity to finance investments in basiceducation from their own revenue sources, which have not increased during thepast ten years. II/ As a result, SECs have become more reliant upon MECtransfers for financing investments. During the present economic crisisNEC's capacity to mobilize resources is severely constrained. The lack ofinvestment funds is one principal factor inhibiting the improvement ofquality at the primary level.

2.27 Existing investment funds have not always been used efficiently.Investments have been allocated primarily to expand access on an ad hoc, nonplanned basis. Nor have substantial resources been allocated to improve thequality of basic education. Reordering of priorities is needed so thatinvestments are designated to inputs which can improve internal efficiency(to relieve present congestion) and quality (to improve student learning andexpand access selectively on a well planned basis).

C. Consequences of Deficiencies in Basic Education inNorth and Centerwest Regions

2.28 There are both specific and general consequences of the educationaland managerial deficiencies plaguing basic education in the North andCenterwest. They include:

11/ The general declining trend in states capacity to finance investmentfrom their own resources in many sectors has been discussed by Mahar andDillinger in Financing State and Local Government in Brazil, World BankStaff Working Paper No. 612, September 1983.

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(a) not enough graduates available for additional specialized training(technical, vocational and general secondary), which is reflectedin a deficiency of semi-skilled and skilled workers in theseregions;

(b) scarce financial and human resources being wasted directly in theeducational process through inefficiencies;

(c) regional imbalances in economic infrastructure, productivity andgeneral socio-economic development being perpetuated and, perhaps,increasingly exacerbated; and

(d) poor health and nutrition and higher fertility rates, which havebeen shown to correlate with a low level of education among thefemale population.

D. Government Policy for the Subsector

2.29 The Secretariat of Primary and Secondary Education (SEPS) of MEChas prepared a diagnosis of the major issues in the basic educationsubsector. Based on this diagnosis and the Third Education Sectoral Plan1980-1985, a general policy framework for the subsector has been developed.The policy objectives include:

(a) targeting basic education resources on the most needy sectors ofthe society--the urban poor and the rural population in the mostdeprived regions of the country--to reduce regional as well associal disparities;

(b) improving the quality and efficiency of basic education for thesedeprived sectors;

(c) expanding access to basic education for the targeted groups; and

(d) strengthening management of the subsector through sectoral planningand technical-administrative modernization at federal, state andmunicipal levels.

2.30 The policy objectives cover the major educational and managementproblems confronting the subsector. MEC, however, recognizes that it has todevelop a sequenced approach to dealing with issues so broad and, frequently,deep-rooted in larger governmental and social structures. The details ofthese policy objectives and an elaboration of the strategy for the subsectorare contained in the documents available in files. The Government's acknow-ledged policy framework represents a significant change in the Ministry'sapproach to investment in basic education. By linking the application ofresources to specific priority areas, social groups and educational andmanagerial policies, the Ministry has moved from a position of merelytransferring funds to the states to one of conditioning the use of thosefunds upon well defined investment priorities in accordance with specificplans.

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E. Constraints on the Implementation of GovernmentPolicies for the Subsector

2.31 There are three constraints upon the implementation of theGovernment's policies for the subsector: financial, institutional andpolitical.

2.32 Financial constraints upon the availability of investment resourcesat federal, state and municipal levels (para. 2.26) severely limit theGovernment's capacity to achieve its policies. Resources available to theFederal Government through the Education Salary Tax (SE) 12/ halie declinedby 25% during the first three quarters of 1983, and, while this trend isexpected to stabilize, receipts from the SE are unlikely to growsignificantly during the coming two years. For the country to make progressin the basic education subsector, it will need more money, together with moreefficient use of scarce resources.

2.33 Institutional constraints on the Government's plans include(a) lack of technical capacity at state and municipal levels to plan andexecute well designed investment projects and (b) limits on the FederalGovernment's capacity to provide needed technical assistance in these areas.These constraints severelv limit investment capacity. Even if substantialadditional resources were to become available, there would be constraints onthe Government's ability to achieve its objective of technical-administrativemodernization and improved planning.

2.34 Political constraints include strong pressures at state andmunicipal levels to opt for investments which expand educational accessad hoc and neglect serious and costly inefficiencies as well as the lowquality currently plaguing the system. These pressures interfere with thefederal government's policy of improving education quality for the neediestsegments of society.

F. A Strategy for the Basic Education Subsector

2.35 Despite the size of the subsector Bank lending to the sector canhave considerable impact if it is selective and concentrates on actions wherethe Bank has a comparative advantage. There is accumulating experience andevidence available in Brazil, as well as in other countries, to supportlimiting Bank participation in the subsector to improving the quality and

12/ The Education Salary Tax (SE) is a 2-1/2% tax on the wage bill of firmsemploying 100+workers. It is collected at local level, aggregated atstate level and transferred to the Federal Government. The SE is thendistributed to the states on the following basis: 2/3 return to the stateof origin and 1/3 remains with MEC for redistribution among the states inaccord with a formula favoring the poorest states with the largest schoolage population.

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efficiency of basic education and expanding access on a highly selectivebasis. 13/ For example, Birdsall and Behrman's recent study L4f estimatesthat, in Brazil, school quality yields a higher social rate of return thanexpanding educational access and suggests that there is an equity/producti-vity trade-off in schooling investment. The Bank has three long-termobjectives for basic education in Brazil which span the next 10 to 12 years:(a) upgrading educational quality and efficiency; (b) selective expanding ofaccess; and (c) improving management of the subsector. These objectives arebeing pursued through a strategy that interrelates the improvements in schoolquality, efficiency and access with improved managerial capacity. Thisstrategy is consistent with the sector approach, which requires clearlyspecified government policies, a defined investment plan and agreed uponprocedures and criteria for the preparation, appraisal and implementation ofspecific projects. Via the sector approach, managerial capacity at federal,state and municipal levels can be fortified as part of basic educationinvestment projects rather than being treated in isolation. Initially, theapproach would be applied in the North and Centerwest regions for testing andadjustment. Later, it could be extended to other regions. Meanwhile,extensive sector work in education finance is under way on a collaborativebasis between the Bank and Brazilian authorities. Its scope extends beyondthe basic education subsector. However, this work is expected to provide theanalytic foundations for major policy reform in basic education finance whichwould address the structural resource constraints currently plaguing thesystem.

III. SUBSECTOR PROJECT FOR URBAN BASIC EDUCATION IN NORTH AND CENTERWEST

A. Introduction

3.01 The proposed subsector project directly addresses the major policyobjectives for basic education defined by the Brazilian Government and agreedupon with the Bank (para. 2.29). Specifically, the project would addressthree objectives.

No. 1. Improvement in the quality and efficiency of existing primaryschools grades 1-4, by financing:

(a) educational materials including textbooks; student, teacherand classroom supplies; and library books;

13/ See Stephen Heyneman, "The Effect of Primary School Quality on LearningAcross 29 High and Low Income Countries." American Journal of Sociology,Vol. 88, May 1983 and Impact Evaluation Research Proposal for Project inRural Basic Education Northeast, Brazil.

14/ Birdsall, Nancy and Jere R. Behrman, "The Quality of Schooling:Quantity Alone is Misleading," American Economic Review (forthcoming).

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(b) the training of teachers for grades 1-4, school supervisors,directors and cooks;

(c) the refurbishing of existing school facilities in disrepair;(d) the construction of new classrooms and schools to absorb the

excess students using existing facilities; and(e) the provision of furniture and equipment as needed for

existing and new facilities.

No. 2. Increase in the access to basic education for children Grades 1-4 byfinancing the construction of new school facilities.

No. 3. Improved management capacity in the subsector by financing:

(a) long term planning at federal and state levels;(b) special projects for improving the quality and efficiency of

basic education;(c) school location planning for siting of new schools;(d) strengthening of state and municipal administrative

capacity; and(e) project monitoring and evaluation.

The strategy of the subsector project would be:

(a) to focus on two of the three most needy regions of thecountry, the North and Centerwest; and

(b) to limit investments to urban areas where the sectorapproach can be tested, improved and later generalized toapply to other areas and regions of the country.

3.02 To achieve the three main objectives of the subsector project,there would be a five year investment program in each of the nineparticipating states of the two regions, with annual projects presented ineach investment area and federal programs to expand institutional capacity.

B. Objective No. 1: Improvement of Educational Quality andEfficiency in Grades 1 to 4 of Primary School

3.03 To accomplish the first objective, the subsector project wouldfocus on four key investment components: educational materials; in-servicetraining and teacher support services; student nutrition; and improving aswell as reducing excess-utilization of existing facilities.

1. Educational Materials

3.04 The project would finance an integrated and complete packet ofeducational materials for specific municipalities including:

(a) Student Textbooks: A minimum of two books per student in Grades 1and 2, and four books per student in Grades 3 and 4 in the areas ofbasic curriculum: language, mathematics, social studies andscience;

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(b) Student Learning Materials: A basic student packet consisting ofpaper, pencils and erasers, to cover minimum needs for a completeschool year for all students grades 1-4 in the program areas;

(c) Teacher Materials: Essential materials for teachers consisting ofclass register, notebook, pencils, pen, chalk and ruler;

(d) Classroom Materials: To assure that each classroom has minimumlearning resources, a classroom packet for grades 1 and 2 andanother for grades 3 and 4 have been specified consisting of:children's literature; educational games; dictionaries, map,scissors and a storage closet;

(e) School Library: Three types of school libraries would beincluded: a permanent library collection of reference materials forstudents and teachers in new schools or where physical space isavailable in existing facilities; (b) traveling libraries whichwould rotate among adjacent schools; and (c) libraries in largeschools forming a nucleus for surrounding schools;

(f) Consumable School Materials: To facilitate the purchase of schoolconsumables such as paper, pens, pencils and other items associatedwith routine school administration, a small consumable materialsaccount would be established for the school, controlled by theschool director, for purchasing items on an as needed basis;

(g) Statewide Textbook Program: The Foundation for Student Assistance(FAE) has a well established statewide textbook program, theProgram for Basic Education Textbooks (PLIDEF). This program hasthe same standards as those for subsector project specificmunicipalities (see (a) preceding) and would be financed as part ofthe subsector project; and

(h) Classroom Textbook Bank: The Textbook Bank Program (Banco doLivro) would train teachers and students, as well as promotecommunity education regarding the conservation and reutilization ofschool textbooks. The project would finance a local consultant todevelop and monitor training for the expansion of this program inproject areas.

The subsector project would utilize existing FAE procedures for preparationand implementation of all the above mentioned subcomponents. The FAEimplementation team has been expanded from two to five technicians and wouldrequire local consultant services to assist with the school libraries (about50 months for a specialist in school libraries development); consumableschool materials (about 30 months) and the Textbook Bank (about 50 months).Likewise, state implementation teams would need both federal and localtechnical assistance (500 months for the nine states) for the implemen-tation of these three subcomponents. The subsector project would finance thepurchase of already available educational materials; technical assistance(approximately 560 months at federal, state, and municipal levels to be

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provided by FAE and local consultants) associated with preparation,monitoring and evaluation of the component at federal and state levels;training, about 135 months of fellowships for state and municipal personnelassociated with the implementation of the subcomponents and six months forfederal personnel; and the salaries of up to four additional personnel inplanning, finance or component-related actions needed at state level forimplementation during the period of the project.

2. Training and Teacher Support Services

3.05 The subsector project would assist the Government in developing acomprehensive strategy directed toward the upgrading of teachers and otherprofessionals in the North and Centerwest regions. This strategy is based onminimum standards covering objectives and content of training activities,unit cost parameters and cost-effective course design agreed upon with theBank during appraisal. Moreover, it comprises, for each participating state,a sequential training approach built on the improvement and expansion ofexisting programs also agreed upon during appraisal. Appropriate networkingof local institutions--training centers, teachers colleges, universities,curriculum research agencies--would allow the maximization of trainingcapacities throughout the execution stages. These institutions would beproposed by the states and approved by the Joao Pinheiro Institute for HumanResources (IRHJP).

3.06 The training component would focus on:

(a) short-term in-service teacher training courses organized at statelevel by selected institutions (para. 3.05) with technicalassistance from the Joao Pinheiro Institute of Human Resources(IRHJP) in specific priority skills including: (i) literacy andnumeracy in grades 1 and 2; (ii) use of textbooks and otherteaching materials; (iii) alternative teaching methods andclassroom organization: multigrade, group work, remedial andindividualized teaching techniques; (iv) school/communityinteraction; and (v) implementation of the classroom Textbook Bank(para. 3.04);

(b) short-term training courses for school principals and supervisorsoriented toward (i) improving school administration practices,(ii) initiating consumable materials budget, (iii) providingpedagogical support for teachers, and (iv) creating a permanentstaff development environment in the school; and

(c) initial and in-service training courses in hygiene and food-storagefor school meal cooks and supervisors.

IRHJP would provide technical assistance for preparation and implementationand would oversee the supervision of all training activities.

3.07 The upgrading of teachers' conditions of service would occurwithin the narrow limits imposed by the current stringent budgetary context.

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Agreement was reached during appraisal to link successful training completionand minimum career benefits. Each municipality participating in the programwould present proof of an existing and enforced teachers' contract or statuteor a draft teachers' contract or statute for the municipal legislature'sapproval by January 1986.

3.08 The proposed project would finance the costs of the trainingprograms which include fees of instructors and administrative staff and localconsultants (about 24 months at federal level) for software development;production of training materials such as guides and pamphlets; travel, perdiems for trainers and trainees; and fellowships in training (36 months) forstate and municipal personnel in development and design of in-service teachertraining courses.

3. Student Nutrition

3.09 Improvements in the supervision of the school meal program,training of cooks and supervisors upgrading of existing, and provision ofnew, school kitchens and equipment would be accomplished as part of thetraining and school facilities components. Specific aspects of schoolnutrition include:

(a) Construction, Remodeling and Equipping of Feeding Facilities. TheFoundation for Student Assistance (FAE) has established norms forphysical facilities and equipment essential for the hygienicpreparation of food. All schools in the selected project areaswould be brought up to these standards as well as new schools builtthrough the program. The project would finance construction andequipping of these facilities; and

(b) Training of School Feeding Program Staff. The project wouldfinance the training of school cooks who prepare and serve schoolmeals and school meal supervisors who oversee operations of thefood program, promote nutrition education at school and in thecommunity and mobilize community participation in the food program.

4. Improving Supervision of the School Nutrition Program

3.10 Supervision of the school nutrition program is essential to theimprovement of quality and efficiency. To assure this supervision, anupgraded supervision plan, with visits by school nutrition programsupervisors to all schools in the selected project areas on a regular basis,was agreed upon during appraisal. The supervision plan, by enablingsupervisors to travel as required, would encourage adherence to FAE norms setforth in the FAE supervision handbook.

3.11 The school nutrition component would be coordinated by an FAE teamat the federal level and would use existing FAE personnel already operating

in each state. This team would work in conjunction with the implementationteams for training (IRHJP) and construction (CEDATE) at federal and statelevels, providing technical assistance for the preparation and supervision ofschool-feeding-program-related actions.

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3,12 Activities to be financed include: (a) remodeling, construction andequipping of school kitchens for preparation of school meals in all existingas well as new schools in selected project areas, to be accomplished throughthe school construction component; (b) training of school cooks and schoolnutrition program supervisors--via the training and teacher support servicescomponent; and (c) travel, and subsistence allowances for the upgrading ofthe current school nutrition program supervision network through projectaclministration as well as the institution-building component.

5. Refurbishing of Existing Schools in Poor Condition.

3.13 To complement the software inputs and utilization of existingschool facilities, the proposed project would finance the costs ofrefurbishing, furnishing and equipping inadequate classrooms in existingschools in accordance with criteria agreed upon with the Bank and the needsdetermined for each project school. In selected schools, the project wouldinclude the replacement of some classrooms. Needs would be determined basedon the information derived from school mapping (para. 3.16). Refurbishingcosts are not expected to exceed 35% of the cost of replacing the schools.Furniture and equipment are estimated at 30% of total refurbishing costs. Aproperty inventory of the schools to be remodeled as well as cost estimatesare being undertaken as part of the school mapping exercise. The refurbish-ing component would be coordinated by the Center for Educational Support andDevelopment (CEDATE). CEDATE would provide necessary technical assistance tothe states for identification of refurbishing needs and preparation ofprojects. State and municipal authorities would be responsible for executingthe projects while CEDATE would supervise implementation.

6. Reducing Excess Utilization of Existing Facilities

3.14 To reduce the number of shifts per school day to a maximum of twoso that more teaching and learning time is available, the program wouldfinance the cost of constructing, furnishing and equipping new state andmunicipal schools. These schools would be located in the poor urban areas ofproject cities where current facilities are operating with three or moreshifts daily. Costs of replacing existing facilities which are presentlyoverutilized are estimated at approximately 20% of total new construction.CEDATE would provide the necessary technical assistance to states for theidentification of overutilized facilities and the preparation of constructionprojects. States, however, would execute these projects under CEDATE'ssupervision.

C. Objective No. 2: Expanding Access to Basic Education

3.15 Expanding access to basic education would proceed on the basis ofcareful analysis of local demand in the selected urban areas. The means toachieve the objective would consist of:

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(a) conducting a school mapping study that includes (i) identificationof the demand for additional school places (as well as determiningthe need for remodeling existing schools (para. 3.13); and (ii) thedevelopment of school prototype designs for the cities involved inthe program; and

(b) providing additional school facilities in project areas for grades1 to 4.

1. School Mapping Study

3.16 The nine participating North and Centerwest states, with CEDATE'stechnical assistance, are carrying out a school mapping study of urban areasalready selected for the project. This study collects data, both fordetermining the location of new schools and for improving standards andschool designs. Criteria for location and designs were agreed upon with theBorrower during appraisal, and any change would be subject to Bank approval.The project would finance all expenditures including transportation,equipment, per diems, and consultant fees associated with the study in allthe selected cities of the nine states. The satisfactory completion of theschool mapping and the prototype designs would be a condition for theapproval of construction projects by CEDATE for new classrooms. A schoolmaintenance program would also be presented to CEDATE as a condition forapproval of projects for refurbishing of existing classrooms in each selectedurban area, as indicated in the manuals available in files.

2. Providing Additional School Facilities for Grades 1 to 4

3.17 While priority in the subsector project would be given first tooverutilized current capacity (paras.3.13-3.14), the construction, equippingand furnishing of additional facilities to expand access to the first fourgrades of primary school would also be financed. Expanding capacity wouldproceed on the basis of careful school location planning as a result of theschool mapping exercise (para.3.16) in the selected areas of the project.The typical new school would have a maximum of ten classrooms, eachaccommodating 40 students; a small area for administration; and a canteenincluding food storage area, multipurpose area and washrooms. Schools wouldbe planned and located to operate on a maximum of two daytime shifts. Thiscomponent would be coordinated by CEDATE under the same arrangements as forrefurbishing and replacement (paras. 3.13-3.14). Construction, equipment andfurniture for additional facilities would be financed.

D. Objective No. 3: Building Institutional Management and InvestmentCapacity for the Basic Education Subsector at

Municipal, State and Federal Levels of Government

3.18 To build managerial and investment capacity at municipal, state andfederal levels, the project would support general lines of action: (a) theestablishment of a Long Term Strategic Planning team within SEAC/SEPS and

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mini-teams at state level in the Secretariat of Education (SEC); (b) theselective support and evaluation of several special educational projects withhigh potential for solving specific problems plaguing the subsector; (c) thestrengthening of state and municipal educational authorities capacity inspecific areas of project implementation; and (d) the monitoring andevaluation of project implementation and project impact.

1. Long Term Planning and Pre-investment Activities

3.19 Building up a strategy for long term planning capacity is one ofSEPS' management priorities (see para. 2.29). A special task force wasappointed by resolution to operate under the responsibility of theSubsecretariat of Coordination (SEAC). Its main assignment, to be carriedout with Bank assistance, is to strengthen sectoral planning at federal andstate levels. The Government and the Bank have reached agreement on detailedterms of reference and on a plan of activities for the first 12 months ofimplementation. This strategy would focus action on upgrading basiceducational statistics and developing social demand indicators relevant toeducational planning; mastering the most common educational planning models;improving unit cost analysis; simulating the implications for alternativeteacher wage policies on state and municipal budget trends; and preparing astudy of educational imbalances and disparities. The loan would finance thesalaries of three technicians, one coordinator and one support staff,technical assistance (20 months local, and 16 months international), localtravel per diems; 10 months of fellowships and studies.

3.20 To assure funds for the preparation of future investment projects,the loan would also finance special studies (to be agreed upon between theGovernment and the Bank during the course of project implementation); MECpreparation activities and technical assistance.

2. Special Projects in Educational Quality

3.21 The program would support selected special projects,in the Northand Centerwest regions likely to have a high future payoff to the quality ofbasic education. These projects would be in one of four priority areas:(a) teaching literacy in grades 1 and 2; (b) techniques for traininguntrained teachers in grades 1 and 2; (c) increasing the time available forstudent learning; and (d) improving administration at the school level.Terms of reference for the National Institute for Educational Research(INEP), which is responsible for managing the component and detailingprocedures for selection, monitoring and evaluation of specific projects,have been agreed upon with the Bank. Selected projects would have a highpotential for replicability across the subsector and would be evaluatedclosely for their future investment potential. The project would financetechnical assistance for the special projects (local, about 36 months);fellowships and study tours for personnel of selected special projects(about 12 months); and the travel, per diem, and salary of one INEPtechnician responsible for administration of the component.

3. Strengthening State and Municipal Educational Capacity

3.22 To build institutional capacity at state and municipal levels, theproject would finance (a) regular training and technical assistance (63months) for monitoring of the physical implementation and 63 months for

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financial aspects of project implementation for state implementationteams 15/; (b) technical/professional training for state and municipalpersonnel directly involved in the preparation and implementation of projectsin any of the program's component areas including fellowships and study tours(180 months) as well as seminars and workshops; (c) salaries of up to fiveadditional state and/or municipal personnel needed for program implementationand/or salary complements for five existing personnel; (d) the purchase ofequipment and consumable materials necessary for implementation; and (e) thestrengthening of project area state and municipal educational authoritiesthrough the development and/or revision of teachers' statutes (para. 3.07);the upgrading of school supervision; and other actions to be agreed upon withthe Bank during the course of implementation.

3.23 An administration specialist working as part of a ProgramManagement Team (PMT) would be responsible for organizing technicalassistance and training for (a) in the preceding paragraph on a semi-annualbasis, and for technically appraising state requests for items (b) and (c)above as presented in annual state programs in accordance with criteriaagreed upon between the Bank and the Government. As part of administrativecosts, the subsector project would finance the necessary technical assistance(126 months), fellowships (180 months), consultant services, travel expensesand material costs incurred by the administration specialist in thepreparation, appraisal and supervision of this component.

4. Monitoring and Evaluation

3.24 The project would strengthen the capacity for both monitoring andevaluation at the state and federal levels. A monitoring system, which wouldprovide regular information about project activities to state implementationunits, to the federal agencies and to the project management team, would bedesigned and implemented by the project management team in collaboration withstates and agencies. Reports would be prepared triannually by the agenciesand by the PMT. These would be reviewed with state authorities and also sentto the Bank. These reports would contribute to the annual implementationreview to be held jointly with the Government and the Bank (para 3.26). Toassist the Government with project monitoring, the project would financetechnical assistance (5 months international and 15 months local); up to 27months of fellowships (three months per state) to train SEC personnel inmonitoring, materials, equipment (including computerization), travel and perdiem. A proposed design of the monitoring system has been reviewed with theBank and an implementation schedule agreed to.

3.25 The project evaluation system, which would be separated from butcoordinated with the monitoring system, would have three components: (i)regular assessment of project results; (ii) special studies to investigatespecific questions in depth; and (iii) building evaluation capacity at bothstate and federal levels. An evaluation unit would be established or

15/ State implementation teams consist of three to five technicians,including an educational planner, financial analyst/accountant andeducator(s).

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strengthened in each SEC. These units, coordinated by the PMT evaluationspecialist, would annually assess progress in project areas towards meetingmajor project objectives. In addition, the units would conduct specialstudies, in particular investigating questions that arise from analyses ofboth monitoring and evaluation data. Such studies might includeinvestigations of the household cost of primary school attendance, thequality and conditions of use of textbooks, community attitudes towardsschools and schooling, teacher criteria and practices for promotiondecisions, and others. In collaboration with the SEC units, the federalevaluation staff would prepare an annual report for the annual implementationreview (para 3.26). To assist the Government with evaluation, the projectwould finance technical assistance (60 months), travel, per diem, materials,supplies and data processing. A proposed evaluation plan has been reviewedby the Bank and an implementation plan for the first year agreed to.

3.26 A joint Government-Bank implementation review of the project wouldbe held annually, in June/July. The review would be based on monitoringreports (para 3.24) and the annual evaluation report (para. 3.25).Participants would include personnel from SECs, technical agencies, PMTstaff, and the Bank. In preparation for the annual review, states would holda similar review, with municipal participation. To support the review, theproject would finance travel, per diem, and materials expenses. Organizationof the federal-level review would be the responsibility of the ProjectManagement Team.

IV. MANAGEMENT AND IMPLEMENTATION

A. Overview

4.01 An appropriate management structure is already in place andfunctioning to assure speedy and efficient implementation of the subsectorproject. The elements of this structure include:

(a) a subsector approach to project planning, appraisal andsupervision;

(b) a well defined organizational structure for the project;(c) arrangements for staffing and staff training needed to implement

the project;(d) well defined and tested implementation procedures;(e) criteria for approval of state and municipal projects;(f) criteria and procedures for allocation of funds among projects; and(g) a phased implementation program.

I

B. Subsector Approach

4.02 The proposed subsector project in basic education for the North andCenterwest regions of Brazil would consist of (a) national programs in longterm planning and preinvestment, special projects, institution-building andproject evaluation; and (b) state investment programs serving as a frameworkfor specific projects in the areas of construction and equipment, trainingand teacher support services, and educational materials.

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4.03 MEC would act as the institutional intermediary for subsectorproject management. A project management team based in MEC would beresponsible for managing the project at the federal level; coordinating andmobilizing technical assistance of the specialized federal agencies to theparticipating states; and appraising state programs and projects inaccordance with established technical criteria and procedures agreed uponbetween the Government and the Bank during appraisal. These criteria andprocedures are contained in separate manuals (available in files). Theproject management team would also play a major role in monitoringimplementation of the subsector project.

4.04 The subsector approach to lending provides the means for buildinginstitutional capacity and an educationally based approach to investmentwithin MEC. MEC has defined specific policies to guide investments withinthe framework of its Third Sectoral Development Plan (para. 2.29). It hasestablished criteria and procedures for identifying, preparing, andappraising state projects. Criteria have also been developed fordistributing investment funds among the nine participating states as well asbetween national and state programs. These criteria and procedures wouldfirst be applied to the regional program in the North and Centerwest andcould later easily be extended to the entire basic education subsector as MECgains additional experience. Moreover, together with the Bank, MEC hasdeveloped an investment plan for the subsector and specified financialmechanisms for the transfer of investment resources to the state level.

4.05 At the state level, the subsector approach would also expand bothinvestment and institutional capacity. Through carefully prepared and testedprocedures and substantial technical assistance and training, the stateswould develop their specific projects from a general five-year investmentplan for the subsector project. This process would help to institutionalizethe project cycle for the preparation, appraisal and implementation ofprojects at state and municipal levels and would expand state and municipaltechnical capacity.

C. Organization

4.06 MEC has developed a subsector organizational structure (seeDiagram A at federal, state and municipal levels to manage and implement thesubsector project. At the federal level, the Program Council would be headedby the Secretary of Primary and Secondary Education (SEPS) withrepresentation from the Directors of each of the specialized federal agenciesinvolved in implementation: (a) FAE for educational materials; (b) FAE/IRHJPfor training and teacher support services; (c) CEDATE for construction andequipment; (d) FAE/PNAE for school nutrition; (e) SEAC for Long Term Planningand Preinvestment; (f) INEP for special projects; (g) the Project Manager,and (h) representative from the Secretariat of Planning (SEPLAN).

4.07 The Program Council would (a) approve annual operating plans of thefederal agencies overseeing project execution; (b) review project implementa-tion on an annual basis by participating in the annual project implementationreview (para 3.26); (c) review and make recommendations to the Secretary of

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SEPS regarding special implementation problems on an ad hoc basis; and (d)make policy recommendations to the Secretary of SEPS as needed. The Councilcould be convened by request of any of its members. It was created byministerial resolution as of November 1983. The Secretary of SEPS wouldapprove all state and municipal projects presented for annual financing. Thetasks of preparing reports, disbursement applications, budget proposals, andproject monitoring and coordinating activities of the federal agencies wouldbe delegated by the Secretary of SEPS to the Program Management Team inCOEPE (the Coordinating Unit for Primary Education).

4.08 A Program Management Team (PMT) has already been established inCOEPE. This team is headed by the Project Manager (appointed by ministerialresolution prior to negotiations) and has the responsibility of:(a) coordinating and reviewing the annual operational plans and theactivities of the specialized agencies; (b) appraising annual state programsin accordance with established criteria; (c) supervising institution-buildingactivities at state and municipal levels; (d) monitoring the implementationof the program; and (e) providing the Program Council and Secretary of SEPSwith information necessary to carry out their functions as described inparagraph 4.07.

4.09 The detailed responsibilities 16/ of the six agencies handlingprogram implementation are indicated in the program administration manualavailable in files and have been described in Chapter III. Briefly, they areas follows:

(a) FAE: would be responsible for assisting states in the preparationof the educational materials component, appraising the state andmunicipal educational materials projects, and monitoring theimplementation of this component;

(b) FAE/IRHJP: would be responsible for assisting the states with thepreparation of all training programs for the training component,appraising the state and municipal training projects and monitoringthe implementation of the component;

(c) CEDATE: would be responsible for assisting states in thepreparation of the school facilities component, including schoolmapping, civil works, equipment and furniture; appraising stateand municipal projects; and monitoring the implementation of thiscomponent;

16/ All terms of reference, which include the criteria and guidelines forthe appraisal of specific components (educational materials, training,school facilities, long term planning and special projects), areavailable in files.

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(d) FAE/PNAE: would be responsible for coordinating with IRHJP andCEDATE in providing technical assistance to states in the prepara-tion of school nutrition activities subsumed in the training andschool facilities components as well as appraising specific schoolnutrition actions presented by the states and municipalities;

(e) SEAC: would be responsible for executing the Long Term Planningand Pre-investment Component in accordance with the terms ofreference agreed upon between MEC and the Bank; and

(f) INEP: would be responsible for monitoring the implementation ofthe special projects component in accordance with terms ofreference for this component agreed upon between MEC and the Bank.

4.10 At the state level, the State Secretary of Education would chair anAdvisory Council comprised of the state level program manager, the represent-atives from the participating municipalities and the chief planning officerof SEC. This Council would (a) review and approve the projects prepared forappraisal by MEC; (b) take necessary decisions to expedite the execution ofthe state projects; (c) review program implementation on a quarterly basis;and (d) review the selection of additional municipalities for inclusion inthe program after the first year of implementation.

4.11 A state level implementation team would be designated by the StateSecretary of Education. The state team would consist of members from varioussections of SEC and other agencies involved in project execution. Teammembers would dedicate full time to project implementation; however, theywould remain in their regular units in the SEC. The responsibility of thestate implementation teams would include (a) identification of projects;(b) the preparation of projects; (c) the execution of projects whenappropriate; (d) the monitoring of project implementation; and (e) thepreparation of implementation progress reports for the federal agenciessupervising project implementation. These teams would be in place andfunctioning by negotiations. Municipal level implementation teams would beappointed by the municipal mayor.

D. Staffing

4.12 At both state and federal levels, the subsector project pursues astrategy of utilizing existing organizational structures. The staffing ofthe subsector project would follow the same line of action. At the federallevel, a core Program Management Team has been working on preparation of theprogram for more than one year. This team is headed by the Project Managerand would include (a) a general coordinator; (b) nine technical specialists,with at least one in each area: teacher training, instructional materials,planning, management and project related training, evaluation andadministration; (c) a programmer to supervise state programs; (d) anaccountant; (e) three support staff. (Specific qualifications are includedin the administration manual available in files.)

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4.13 Technical teams already exist within the specialized federalagencies and have recently been expanded to include the necessary technicalspecialists for project implementation (the full staff plan is available inthe administration manual available in files). At the state and municipallevels, project implementation teams, which include a planner and at leasttwo technical specialists, have already been appointed. The project wouldfinance the salaries of additional staff as needed to complete the staff planat the federal level (up to 30), up to five in each state and up to two ineach municipality. Moreover, a salary scale has already been agreed uponbetween the Bank and the Government, which would be the basis for Bankfinancing of salary complements of existing staff whose salaries are belowthe agreed upon standards. Administration overheads associated with projectimplementation at all levels would be financed from loan funds. A breakdownof technical assistance by component is available in the working papers infiles. Specialized federal agencies would be responsible for training stateand municipal level staff in the application of project procedures. Anoperations' manual for use by the Secretariats of Education and a 1984 stafftraining plan would be ready by the project launch workshop, July 1984, to befollowed by a training seminar to orient state personnel.

E. Implementation Procedures

4.14 The Ministry of Education has developed, tested and refined a setof implementation procedures for the subsector project based on the alreadyexisting project cycle for appraisal of state and municipal projectspresented annually. This project cycle was revised during the preparationand appraisal of the subsector project as a result of the testing of theseprocedures on three state programs (Diagram B). Detailed procedures havebeen elaborated in the Subsector Project Management Manual (available infiles); however, a summary is presented in the following paragraphs.

1. Identification

4.15 Each state and federal territory has prepared a five-year invest-ment plan. These investment plans identify macro financial and physicaltargets for each project component in selected municipalities over thefive-year investment period. Three investment plans were jointly appraisedby the Bank and MEC; the remaining were appraised by MEC and have beenpresented to the Bank. State investment plans would serve as guidelines forthe identification and preparation of specific projects on an annual basis.They would also be used by MEC to check for consistency between short-term(annual) and longer-term (five-year) targets proposed by states. Theidentification phase of the project cycle would focus on generating projectsat the municipal level (Diagram C). Two identification instruments have beendeveloped: (a) the school mapping exercise to locate the need for schoolremodeling and the demand for building additional school facilities; and(b) a micro-planning exercise for needs identification of training andeducation materials for project areas (available in files). Identificationactivities would be carried out by municipal and state teams (para. 4.11)with technical assistance from specialized federal agencies (para. 4.13).

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The national programs have been identified by MEC. Long-term planningactivities are already underway including a comprehensive staff developmentprogram. The identification and selection of special projects for futureinvestment would follow eligibility criteria already approved by the Bank.

2. Preparation

4.16 The state and municipal Secretariats of Education, working inconjunction with each of the specialized executing agencies in the project,would prepare their joint annual applications. Local staff would have to betrained continuosly in preparation activities through annual seminarssponsored by the project management team and including the other federalagencies. Training modules for project preparation at the state level arebeing developed and tested in two pilot states. Annual preparationactivities would result in detailed specification of projects ready forimplementation. The responsibility for the preparation of national programs(Long Term Planning, Special Projects, etc.) rests with the specializedfederal unit or agency in charge of each program. International and localconsultancy provided by the project would be used when necessary to assistMEC in carrying out this responsibility (paras 3.04, 3.08, 3.16).

3. Appraisal

4.17 An initial screening of the annual state and municipal projectspresented for appraisal would be handled by the project management team todetermine that applications are complete, that project areas are selected inaccordance with criteria and that the project is consistent with plans in thestate's five-year investment project for basic education. Following theinitial screening, the applications would be distributed among thespecialized agencies for appraisal of each specific component in accord-ance with the technical criteria established by the project. FAE/FENAMEwould appraise the education materials component; FAE/IRHJP would appraisethe training component; CEDATE would appraise school mapping and the schoolconstruction component; FAE/PNAE would appraise the school nutrition compo-nent; and the PMT would appraise the administration component. Subsequent tothe component-specific appraisals, the PMT, together with the agencies, wouldappraise the project as an integrated package with criteria related toimplementation feasibility. The appraisal process, like the identificationand preparation processes would require field visits, and funds would beallocated in project administration to cover these costs. The Bank wouldalso spot-appraise one or two state programs annually on a random basis. Thenational programs require a one-time rather than annual appraisal. The LongTerm Planning program has been prepared by SEAC/MEC and appraised by theBank. Other pre-investment studies would be prepared by SEAC and appraisedby the Bank. During the first year of implementation, special projects wouldbe appraised by an inter-agency committee of MEC convoked by the ProjectManager, including the INEP Coordinator and at least two technicalspecialists, and would subsequently be approved by the Bank.

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4. Approval

4.18 Once the appraisal process is completed, the Project Manager wouldpresent the state applications to the Secretary of SEPS for approval. TheSecretary would either ratify the request as presented or make recommenda-tions for modification. After approval, funds could be released to thestates. The Bank would review ex-post a random selection of appraisedprojects during supervision visits.

5. Supervision/Implementation

4.19 The Program Management Team, together with the executing agencies,would oversee the implementation of state and municipal projects, includingthe provision of technical assistance by the specialized agencies as requiredby the implementation process. The PMT would also supervise the performanceof the specialized federal agencies. The role of the Bank would be tomonitor the quality of the execution of the project as a whole, particularlythose aspects which might involve policy changes; review implementationprogress on an annual basis with the Program Council; make random fieldchecks on the implementation of each specific component as well as review theappraised state projects; and review annually the progress of the SpecialProjects, Long Term Planning, Strengthening of State and MunicipalAuthorities, and the Evaluation components. During the first year ofimplementation, intensive Bank supervision would be required, including atraining mission to launch the project.

6. Monitoring and Evaluation

4.20 Project monitoring and evaluation have already been described inparas. 3.24 to 3.26. The annual reports would be prepared by the federalagencies and the PMT. These reports would also be sent to the Bank. To linkproject monitoring with implementation evaluation, an annual implementationreview (together) with the Bank, federal agencies, Program Council, and stateand municipal teams, would be held each June or July. Project evaluationwould be coordinated by an evaluation specialist attached directly to theProgram Management Team. Evaluation capacity would be built in each StateSecretariat of Education emphasizing the capacity to assess regular projectresults. Terms of reference and a timetable for 1984 monitoring andevaluation activities have already been agreed upon with the Bank.

F. Criteria for the Approval of State Projects

4.21 MEC would approve the state project applications on the basis ofthree criteria:

(a) relevance to the subsector policy objectives;(b) feasibility of the proposed projects; and(c) efficiency in the use of program resources.

Relevance criteria focus on the degree of coherence between proposed actionsand policy objectives as spelled out in the subsector investment plan.Both the individual project activities and the specific mix of components

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would have to address key issues and overtly contribute to reaching projecttargets as formulated in each state's policy documents. Feasibility relatesto operational criteria critical to the timely implementation of the proposedpackage of activities. It presupposes a realistic assessment of availableresources at the state level: trained technical staff, administration andmanagerial arrangements, prompt availability of federal counterpart funds inaccordance with the proposed disbursement schedule, production of legalreforms, and physical capacity of local executing agencies. Detailedcriteria are elaborated in the Subsector Project Administration Manual anddocuments for each component. Furthermore, state and municipal Secretariatsof Education would have to demonstrate their ability to meet the recurrentcosts likely to be generated by the proposed actions. MEC would have toascertain that the federal agencies are prepared to provide the technicalassistance required by the states' schedule of activities. Efficiencypertains to the adequate utilization of project funds following technicalstandards that have been established by each of the specialized federalagencies to appraise subprojects. The project manuals contain a set ofaverage indicators and the range of variation allowed between states. Thesecriteria encompass construction and equipment standards; physical facilitiesuse factors; teacher/student ratios; minimum number of hours per school day;content of educational materials packages; textbooks utilization factors;standard training course objectives and duration; and unit costs parameters.These indicators were designed and tried out during project appraisal by thefederal agencies involved to ensure that maximum efficiency would be reachedin applying project funds. In addition, state and municipal key personnelwould have undergone an intensive training program in the application of suchindicators in concrete situations.

G. Criteria and Procedures for Allocating Project Funds

4.22 Criteria and procedures for the allocation of project funds havebeen established including (a) the distribution of funds between thenational/regional and state programs, and (b) the distribution of stateprogram funds among the participating states. These criteria have beendeveloped in line with the policy orientation of the subsector project toassure that resources are invested in accordance with project priorities.These criteria have been agreed upon by the Bank and the MEC and would bemodified only by mutual agreement of the two parties.

1. Distribution of Funds

4.23 Approximately 92% of the project loan would be directed to stateinvestment programs while 8% would be allocated to project administration andnational programs in (a) Long Term Planning and Preinvestment; (b) RegionalPilot Projects; and (c) Monitoring and Evaluation. This arrangement is inkeeping with the major project objective of improving the quality andefficiency of basic education in the participating states of the North andCenterwest regions. Distribution of funds among the state programs is basedon a formula which is inversely related to the per capita income in eachstate and directly related to the actual schoQl age population, seven to 14years. This method has the effect of redistributing resources from more to

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less prosperous states relative to the size of the school age population. Ithas been discussed and agreed upon between the federal and state governmentsparticipating.

2. Selection of Municipalities

4.24 Basic criteria have been agreed upon between the Government and theBank for defining a universe of 85 municipalities in the North and Centerwestregions eligible for participation in the subsector project. Included areall municipalities with a population greater than 20,000, of which at least50% is urban and whose rate of growth between 1970 and 1980 has been greaterthan 4% (the average for Brazil). 17/ From this group of eligible munici-palities, a second tier selection would be made giving first priority tothose municipalities which rank highest in (a) repetition in grades 1 and 2;(b) dropout in grades 1 to 4; (c) intensity of the use of school space; and(d) lowest in net enrollment rates for the school age population 7 to 14years. All eligible municipalities in the first tier selection must be belowthe state average on the aforementioned indicators in order to be part of thesecond tier screening.

4.25 Because eligible municipalities would vary greatly in the size oftheir urban populations, program coverage in each municipality has beendefined as follows:

(a) in municipalities with less than 35,000 inhabitants, all studentsin urban areas (both municipal and state schools) in grades 1 to 4should benefit from specific actions including (i) full coveragewith respect to educational materials; (ii) no school o eratingwith more than two shifts daily and a standard of 1.2 m2 to 1.5 m2

per student; and (iii) all teachers, supervisors, directors andadministrators (state and municipal) to receive training under theprogram; and

(b) in municipalities with more than 35,000 inhabitants, micro regionswould be selected from the larger urban population. The selectionof these micro regions would be made using the same educationalcriteria as applied in paragraph 4.24 preceding.

Ultimately, the availability of resources to the state would limit the numberof municipalities and micro regions selected. The mix of investment actions- educational materials, training and school facilities - would vary frommunicipality to municipality depending upon the investment funds needed tomeet the standards detailed in (a) preceding. A ceiling of about 55% would

17/ A list of municipalities eligible at the time of appraisal is includedin the project administration manual; however, during the life of thesubsector project, other municipalities might become eligible forinclusion. Adequate documentation must be provided to demonstrateeligibility.

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apply to the additional school facilities category to assure adequateinvestment in educational quality inputs in keeping with the emphasis of theprogram.

H. Phased Implementation

4.26 To facilitate execution of the project, a phased implementationapproach has been designed. This includes (a) the pilot implementation ofeducational materials and training components in two states as of March 1984;(b) accelerated implementation of the educational materials, training andinstitution building components during the first two years of execution; (c)the execution of school remodeling during the first two years of implementa-tion; and (d) the execution of new construction of school facilitiesbeginning only in the second year of implementation. This phasing wouldfacilitate project start-up and would also limit recurrent costs generated bythe project due to new construction to the later period of implementation(years three through five).

V. SUBSECTOR PROJECT COSTS AND FINANCES

A. Costs Financed

5.01 Costs are defined as the total MEC investment program for basiceducation in the project states for the years 1984-1990, of which theproposed loan would finance a part. The volume of the investment programwould be sufficient to effect important structural changes and improvementsin the subsector of basic education. The investment program is financiallyfeasible because it is based on expected budgetary allocations to MEC for thebasic education subsector during the next five years. In addition, theinvestment plan is economical because it is based on changes in MEC'soperational procedures and criteria for allocating funds, which wouldintroduce greater efficiency in the sector.

B. Investment Program

5.02 The 1984-1990 investment program for basic education is tentativelyestimated at about US$61.9 million net of contingencies and US$80.0 millionwith contingencies. The breakdown of the investment plan components andtypes of expenditure are summarized in Table 5.1 following.

C. Basis of Cost Estimates

5.03 Base costs refer to prices estimated as of appraisal, September1983. Construction costs for school facilities have been estimated on thebasis of some simplified and functional designs which are being developed inthe project states. Base costs would range from US$125/m2 to US$175/mZ;these costs are based on current construction costs in the project area.Furniture and equipment costs are estimated at 10% and 4% respectively of newconstruction and at the estimated replacement costs of specific items forexisting facilities. Educational material costs are based upon unit costsfor the same type of materials used by FAE in the PLIDEF program.

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Table 5.1

Project Cost Summary

US$ Million % ofForeign % of Total

Local Foreign Total Exchange Base Costs

A. Improvement Quality

1. States 4.3 0.8 5.1 15.0 7.72. Municipal Programs 16.9 2.8 19.7 14.2 30.13. School Facilities 9.9 1.1 11.0 10.0 16.8

Sub-Total Improvement Quality 31.1 4.7 35.8 13.0 54.7

B. Expanding Capacity

1. Additional Facilities 18.4 2.1 20.5 10.2 31.4

Sub-Total Expanding Capacity 18.4 2.1 20.5 10.2 31.4

C. Building InstitutionalManagement

1. Long-Term Planning 0.5 0.0 0.5 8.7 0.72. Pre-Investment 0.5 0.0 0.5 5.0 0.83. Evaluation 0.5 0.0 0.5 5.0 1.84. Special Projects 0.5 0.0 0.5 0.0 0.35. Strengthen Local

Administration 1.5 0.0 1.5 0.06. Administration 1.8 0.3 2.1 8.2 3.4

Sub-Total Building InstitutionalManagement 5.3 0.3 5.7 7.3 6.1

Total Baseline Costs 54.8 7.1 62.0 12.2 100.0

Physical Contingencies 5.6 0.8 6.4 12.2 10.0Price Contingencies 10.2 1.3 11.5 16.3 12.2

Total Project Costs 70.7 9.2 79.9 12.6 122.2

Front-End Fee on Loan 0.1 0.1

Total Fil:ancing Required 80.0

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Training estimates are based upon a detailed breakdown of requirements foreach type of course in the states where they are likely to be conducted.Technical assistance costs for external consultants are based upon an averageof US$8,600 per specialist-month, plus international travel costs averagingUS$2,500 per individual. Local consultancies are estimated at rates rangingfrom US$1,500 per month to US$4,500 per month, based upon current costs oflocal firms and institutions. The costs of fellowships, which are expectedto be mainly short-term training and study tours abroad, are based upon anaverage of US$3,000 per staff-month plus US$2,500 travel costs perindividual. Project administration costs are based upon appropriate privatesalary scales for such qualified people plus normal office costs.

D. Contingency Allowance

5.04 Physical contingencies amount to US$6.2 million or 10% of the basecosts. Price contingencies would amount to US$12.5 million or 20.3% of thebase costs plus physical contingencies. Annual price contingencies for civilworks, furniture, equipment and education materials are calculated at 7%, 6%,and 5%, for 1984, 1985-1986, and 1987-1990 respectively. Price contingenciesfor technical assistance studies and administration are calculated at 5% perannum over the investment period.

E. Foreign Exchange Component

5.05 The foreign exchange component is estimated at about US$9.5 millionor equivalent to approximately 12% of the total subsector investment costsincluding contingencies. Foreign exchange costs are estimated on the basisof: 10% for civil works and furniture; 15% for equipment and educationalmaterials; 25% for technical assistance; and 5% for training, studies andproject administration.

F. Recurrent Cost Implications

5.06 Because of the special nature of the project (subsector lendingmodality), it is not possible at this stage to assess exactly the totalincremental cost likely to be generated by the project inputs at themunicipal level. In fact, the final volume of inputs at the municipal levelwould be decided in the course of project implementation. Initial estimatesbased on the stated five-year investment plans vary from 6% to 10% over 1983expenditures when all investments are fully realized. Increases would belimited because the need for additional teachers has been minimized bypriority given to investment in quality and efficiency over expandingcapacity. Moreover, already contracted teachers would be available to teachin replacement classrooms built to reduce overcrowding. However, recurrentcost implications of each annual state program would be analyzed during theyearly appraisal process (para. 4.17). The recurrent costs to be generatedby each set of annual investment projects would have to be within establishedparameters. These costs would be generated primarily by an increase ineducational materials and teachers' salaries. Incremental costs due toteachers' salaries would not begin to have an impact until after the thirdand fourth year of the program. Full incremental recurrent costs due toeducational materials would be assumed by the state only after the project iscompleted (see Table 5.4). Incremental costs generated by maintenance ofadditional physical facilities would be absorbed exclusively at state level.

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G. Procurement

5.07 Procurement arrangements are summarized as follows;

Table 5.2: Methods of Procurement by Project Category

Procurement Method Total ExcludingProject Category ICB LCB Other N.A. Contingencies

(US$ Millions)

Civil Works 22.50 4.00 26.50Furniture 2.50 0.60 3.10Equipment 1.30 0.35 1.65Educational Materials 21.20 1.00 22.20Training 1.45 1.45Technical Assistance 1.19 1.19Studies 1.18 1.18Administration 4.23 4.23

Total 47.50 5.95 8.05 61.50

1. Construction

5.08 Civil works contracts totaling about US$26.5 million, excludingcontingencies, are relatively small (average cost of about US$300,000) andcomprise the construction of new classrooms; the repair of existing class-rooms in poor condition; small library/office/storage deposits, and theprovision of sanitary and canteen facilities for schools. Therefore, mostcivil works contracts for new construction would follow LCB proceduressatisfactory to the Bank, and interested foreign contractors would not beprecluded from bidding. Remodeling of existing schools would follow thesame procedures as those for new construction whenever practicable. Someremodeling (about 15% of total cost) may have to be carried out on a forceaccount basis due to small and dispersed character of these actions;however, the amount involved would not exceed US$4.0 million (excludingcontingencies). Civil works designs would be done by MEC and/or consultantarchitects on the basis of agreed upon educational and architecturalstandards.

2. Furniture and Equipment

5.09 Almost all equipment and furniture would be unsophisticated innature. The cost is estimated at about US$30,000 for complete basic schoolgrades 1-4. It would not be practicable to group sizable packages for ICBbecause of the number of states and municipalities involved and thedifferences in phasing of project execution. Moreover, Brazil has a highlycompetitive industry and, therefore, LCB procedures satisfactory to the Bankwould be followed; however, interested foreign manufacturers/suppliers wouldnot be precluded from bidding. Items that cannot be grouped into economicalpackages would be procured through local shopping and would not, inaggregate, exceed US$600,000 and US$350,000 for furniture and equipmentrespectively.

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3. Educational Materials

5.10 Textbooks, teachers' guides, student materials and printingservices would be procured by local competitive bidding proceduressatisfactory to the Bank. Brazil has a well developed and competitiveprinting industry; nevertheless, here again, interested foreign supplierswould not be precluded from bidding. Items not suitable for procurementthrough LCB would be procured through local shopping but would not, inaggregate, exceed US$1.0 million.

4. Contract Review

5.11 The nature of the project makes it unlikely that many big contractswould be let. Government bid procedures have proved effective, in pasteducation projects, in procuring civil works and goods at competitive pricesand with reasonable speed. Awards, therefore, would not be referred to theBank for prior review. SECs would retain bid evaluations and contracts ofawards less than US$300,000 equivalent for random ex-post review by Bankstaff during the annual project implementation review. Contracts in excessof US$300,000 equivalent would be submitted to the Bank at the time ofdisbursement application.

H. Financing and Bank Contribution

5.12 The proposed financing plan for the investment programs is outlinedbelow:

Table 5.3: Overall Financing Plan (1984-1990)

Sources of Finance

Education Treasury ProposedType of Program Salary Tax Funds IBRD Loan Total

Institution Building 2.3 2.3 4.6

State 1.2 3.0 4.2 8.4

Municipal 33.5 33.5 67.0

TOTAL 37.0 3.0 40.0 80.0

5.13 The proposed Bank loan of US$40.0 million (50% of the total projectcost net of taxes) would meet 100% of the foreign exchange costs and 43% ofthe local costs; the Federal Government would finance the remaining cost ofUS$40.0 million (50%).

I. Disbursements

5.14 To assure constant and rapid disbursement, a series of measureshave been taken to simplify the flow of project funds. These measuresinclude: (a) a simplified flow of funds at the national level eliminatingseveral steps which delay the movement of funds by 15/20 days; (b) the

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establishment of a specific project account in the National EducationalDevelopment Fund (FNDE) permitting a separation of project funds from otherfunds for primary education within the MEC; and (c) the establishment of aSpecial Account for US$3.0 million (equivalent to approximately 2 months ofproject expenditures).

5.15 In addition, an advance system, agreed upon during negotiationswith the Government, would be a condition for loan effectiveness. Theadvance system, which would be used to pre-finance the Bank's share ofproject expenditures, would work in the following manner: advances incruzeiros would be made by the Central Bank to the project account against anagreement between the Borrower (the Federal Government) and the Central Bank,providing for a future exchange of dollars on deposit in the Special Accountfor the cruzeiros advanced. The Central Bank in conjunction with SEPS/MECwould determine the conditions, amount and duration of the advance. Thisadvance system would function with government resources and would be entirelyunder government control. No change would be required in current BankSpecial Account disbursement procedures. The Special Account would bedebited only after expenditures had been made and withdrawal applications hadbeen presented to the Central Bank.

5.16 States and municipalities would contract directly for goods andworks. Contractual advances of up to 20% of the amount of the contract couldbe provided for under terms of the contract. Disbursements for municipallyincurred expenditures of equivalent amounts would be made through thefollowing mechanism: Each municipality would sign an annual contract withthe state government. The municipality would present invoices for project-related expenditures to the state for payments to be made by the state. Thestate would then disburse the exact amount of payment and the municipalitywould pay the invoices. Before disbursing subsequent amounts againstinvoices presented by the municipality, proof of paid invoices would bepresented by municipal authorities to the state.

5.17 Disbursements for contracts of less than US$200,000 equivalent andfor miscellaneous small local expenditures for goods and services costingless than US$25,000 each would be made against statements of expenditure.Supporting documentation for expenditures disbursed against statement ofexpenditures (salaries, administrative expenses, civil works executed underforce account, direct administration or local competitive bidding, equipmentpurchased, and purchase of goods and services below US$25,000 equivalent)would not be submitted to the Bank. They would be retained by SECs/SEPS andmade available for inspection by the Bank during project supervisionmissions. Disbursements for all other expenditures would be made againstfully documented withdrwal applications. Withdrawal applications would beprepared by SEPS/MEC and certified by the three MEC agencies involved inproject implementation. Disbursements by project categories of expenditureswould be made for the two implementation periods (1984-1985 and 1986-1990)according to the percentages shown in Table 5.4 (appended).

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5.18 The estimated schedule of disbursements by calendar and IBRD fiscalyear is showoi in Table 5.5 appended. This estimate is about 7% shorter thanthe historic profile for education projects in the region and Brazil. How-ever, the proposed disbursement schedule should prove realistic because ofthe advanced state of readiness of the project for implementation, and theintensive efforts by the Brazilian authorities, assisted by the Bank, toimprove the flow of funds by implementing the measures described in para-graphs 5.14 to 5.16.

J. Auditing

5.19 Each of the participating agencies would maintain separate accountsof its project expenditures. They would be audited annually by independentauditors satisfactory to the Bank. Copies of the audit report on the variousparticipating agencies would be furnished to the Bank within four monthsfollowing the end of each Brazilian fiscal year. These audit reports wouldalso convey the auditor's opinion of the Statements of Expenditures, theiraccuracy, the appropriateness of supporting documents, their eligibility forfinancing in accordance with project legal agreements, and the standardrecord-keeping and related internal controls. The Special Account at theCentral Bank of Brazil (para. 5.14) would be audited by independent auditorssatisfactory to the Bank.

K. Readiness for Implementation

5.20 The proposed project is expected to be ready for implementation byMarch 1984. In order to ensure a timely preparation process, the SEPS/MECpreparation group has received about US$1.0 million from the loan proceeds ofthe Fourth Education Project (Loan 1867-BR). These funds are being spent toprepare the policy framework (including new operational procedures) and toappraise two state/programs in accordance with the established criteria. InMarch 1984, two of the three state programs began pilot projectimplementation. These pilot projects include the following activities:(a) the purchase of textbooks and student learning materials, (b) thein-service training of teachers, school supervisors, directors and cooks;(c) school mapping and the development of school designs and prototypes.School mapping would be completed in two stages: Stage I, October 1983through March 1984, of initial micro regions of the nine states inpreparation for construction to begin in July 1984, and Stage II, March 1984to December 1984, for construction to begin in January 1985.

I. Retroactive Finance

5.21 Retroactive financing of up to US$4.0 million or 10% of the loanamount is recommended to cover expenditures on educational materials;salaries, per diem, travel, and materials for training and project adminis-tration; technical assistance including local consultants; equipment andfurniture; and construction costs for remodeling. These actions eligible forretroactive financing would be carried out in accordance with the agreed uponcriteria for each expenditure category.

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VI. BENEFITS AND RISKS

A. Benefits

6.01 The subsector project in basic education for the North andCenterwest regions of Brazil would result in (a) an improvement in thenumber of students completing four years of basic education in these regions;(b) an improvement in the efficiency of the basic education system withrespect to the years of investment needed to produce a four-year graduate;(c) an improvement in the amount and quality of education that both graduatesand non-graduates receive; (d) an improvement in access to basic educationfor the population 7 to 14 years of age in the two regions; and (e) improve-ments in the management capacity of the subsector at municipal, state andfederal levels.

1. Improvement in the Quality and Number of Graduates.

6.02 The number of students completing four years of basic educationwould increase as a result of the reduction in dropouts and repeatingstudents, particularly in grades 1 and 2. The specific reduction target isto bring each participating municipality up to the state average with regardto dropout and repetition (4.24). The quality of learning at each grade inthe first four years of primary school, as well as that of four-yeargraduates, would also improve because of (a) upgrading teachers,teaching; (b) provision of textbooks and learning materials for all students;and (c) increase in the time that students spend in school from two and one-half hours to four hours per day resulting from the elimination of shifts inexcess of two per day.

2. Improvement in the System's Efficiency to Produce Graduates

6.03 The reduction in student dropout and repetition would lower theaverage number of years of schooling currently needed to produce onefour-year graduate. At present, for the North and Centerwest, an average of6.4 years of school is needed to produce a single four-year graduate.Assuming a modest reduction from 6.4 to 6 years in the project areas, costsavings of 5% per graduate would result. This is equivalent to the totalaverage amount spent on educational materials and other school consumablesand would thus permit a sustained increase in educational expenditures onquality inputs without additional cost to the system.

3. Improved Access to Basic Education

6.04 Access to basic education would be improved in the projectmunicipalities by (a) reducing overcrowding in the first two grades ofprimary school so that more children could attend existing facilities;(b) improved school location planning which would ensure the siting ofreplacement facilities where maximum demand exists; and (c) constructing newfacilities where schools are not currently available.

4. Improved Managerial Capacity within the Basic Education Subsector

6.05 Managerial improvements would result from (a) administrativeupgrading of municipal and state personnel in project preparation,implementation, and monitoring techniques; (b) the training of state and

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municipal authorities in school location planning, which would occur in eachof the nine states and all participating municipalities; and (c) the creationof long range planning capacity at federal and state levels for the subsectorfocusing specifically on the projection of future demand and the analysis ofeducational costs and teachers' salaries as well as special studies ineducation finance.

B. Risks

6.06 There are several risks associated with the proposed subsectorproject, including the instability of tenure of project-related personnel;limited counterpart funds during the first years of project implementation;cash flow shortages; and the uneven implementation capacity of the nineparticipating states. Each is discussed in the following paragraphs.

1. Instability of Tenure of Project Related Personnel

6.07 Frequent turnover of project-related personnel, particularly atstate levels, could prejudice project implementation. To mitigate theturnover of project-related personnel, salary incentives have been agreedupon with the Government, and continuous, project-related training andcyclical technical assistance to states in annual project preparation,implementation and monitoring have been incorporated into the general projectdesign.

2. Limited Counterpart Funds During Initial Years of Implementation

6.08 The adjustment process which the Brazilian economy is currentlyfacing will cause a decline in employment and the wage share upon which theeducation salary tax (the MECs' principal source of counterpart funds,paragraph 5.12) is based. As a result, revenue from the education salary taxwould decline. Estimates show that counterpart shortages might result duringthe first two years of project implementation. To alleviate the likelypressure affecting counterpart availability during initial implementation,a Bank financing schedule has been designed which would co-financeapproximately 72% of project costs during years one and two of implementation(para. 5.17) and about 40% thereafter to stay within the Bank's 50%participation for total project costs.

3. Cash Flow Shortages

6.09 Fluctuations in the revenue receipts from the education salarytax, the major source of Government counterpart funds for the project, couldcause periodic cash flow shortages affecting MEC's transfer of funds to thenine states participating in the investment program. To obviate thisproblem, the Government has agreed to establish a special account and anadvance system (paras 5.14, 5.15) for the project in the Central Bank inaccordance with procedures already established for such accounts operating inconjunction with other Bank projects.

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4. Uneven Implementation Capacity of Participating States

6.10 Both the Bank and MEC authorities recognize that not all ninestates designated to participate in the proposed subsector project would havethe same implementation capacity. To avoid untimely delays in overallproject implementation, several measures have been taken, including(a) additional technical assistance for those states with less projectpreparation and implementation capacity; (b) a phased implementation schedulewhereby education software components with fewer logistic and technicalproblems relative to implementation would be implemented during the initialphase while implementation capacity in physical components is beingstrengthened; and (c) a state-by-state approach to implementationconditionality, such as the presentation of annual projects and the signingof contracts with municipal authorities, in order to prevent one or twoslower states from prejudicing the speed of implementation in the others.

VII. RECOMMENDATIONS

7.01 During negotiations the Bank approved the following documents:

1. Decrees creating the Program Councils in the project states.

2. Designation of state implementation teams in the project states.

3. A revised profile by function, qualification, and salary of theproject management team and the technical assistance agency teams.

4. Revised version of Program Administration Manual.

5. Proof of the execution of pilot projects in the two pilot states.

6. Copy of ministerial resolution adopting the program manuals anddesignation of the project director. (para. 4.08).

7. Indication of the personnel for the project management team andfederal agencies' teams (paras. 4.08, 4.12, 4.13).

8. A profile of the municipalities selected in accordance with projectcriteria.

9. Designation of state implementation teams in the project states(para. 4.11).

10. A timetable of 1984 Program Training Activities at federal andstate levels.

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7.02 As a condition of effectiveness, the Government would establish thesystem of advances from the Central Bank to the project account in the FNDE(para 5.14).

7.03 Subject to the above, the project provides a suitable basis for aBank Loan of US$40.0 million. The terms would be 15 years with a three yearsof grace.

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Table 1.1

Regional Status of Basic Education in Brazil

Index of AnnualPer Student

Net Enrollment Efficiency % of Trained Expenditures inRegion Ages 7-14yrs. 1/ Index 2/ Teachers 3/ State School 4/

BRAZIL 68% 38 77% 100

NORTH 58% 32 53% .72 5/

NORTHEAST 50% 25 49% .97

SOUTHEAST 80% 48 83% 1.22

SOUTH 76% 49 72% 1.54

CENTERWEST 70% 38 74% n.a.

1/ Data for 1980 based on IBGE Population Census. Enrollments are end ofschool year figures.

2/ Efficiency is measured as percentage of students per 100 enrollees inyear 1 (1975) who complete Fourth grade, four years later (1978).

3/ Trained is defined as teachers with a complete secondary education.Data Sources: Ensino de 1° Grau, 1979, Ministerio de Educacao e Cultura.

4/ Data sources: Population Statistics, 1980; approximate estimate of perstudent costs.

5/ North does not include federal territories of Roraima or Amapa or therecently inaugurated state of Rondonia, where per student expendituresare likely to be higher.

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Table 2.1

Selected Regional Economic and Social Indicators in Brazil

X Population10 yrs + Calorie

Per Capita with Less than 2 Urban Popula- DeficitIncome Index Minimum Salaries tion (1980, (% Total)

Region a/ 1980 b/ (1978) c/ % Total) d/ e/

BRAZIL 100 37 64 -3%

NORTHEAST 59 43 47 -13%

SOUTHEAST 117 (f)Rio de Janeiro 33 93 +5%Sao Paulo 33 92 +5X-Minas Gerais/Espiritu Santo 39 64 +5%

SOUTH 36 49

FRONTIER 91 39 53 -15%

a Regions include the following aggregations: Northeast: Bahia, Sergipe,Alagoas, Pernambuco, Paraiba, Rio Grande do Norte; Southeast: Rio deJaneiro, Sao Paulo, Minas Gerais, Espiritu Santo; South: Santa Catarina,Parana, Rio Grande do Sul; Frontier: Goias, Mato Grosso Sul, Mato GrossoRondonia, Acre, Amazonas, Roraima, Para, Amapa. The Federal District isnot included.

b/ Source: Index base on Table 4.6, Country Economic Memorandum, Brazil,World Bank, 1983.

c/ Source: Table 1.2 Differences in Income, Nutrition and Poverty withinBrazil, World Bank Staff Working Paper No.505.

d/ Source: Ibid Table 1.3.

e/ Source: Opt. cit. Table 1.3; "-" Refers to population with caloriedeficiency; and-"+"indicates surplus.

f/ Includes South.

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Ta 2.2

QuraCterist4 aof Staw In lNdth and C_terwt 111l

?btbly rPer CqLta lb. Sbuidt Sb*Dkt 2 State state

law 2 TIz: Mniaps1- .oli- E.pidi- bRoel lundtsreStae/ Pozlation Armes lk6n Urlzi Ares itJ out _X. Sbitg In edsmt4 ___tmy (1910) (b2) (1980) $ ) (1978) W$(1980) (1978)

IbthAcre 301,605 612,258 44 n.a. 12 49,786 68 79 19.6Amo_nw 1,428,000 1,313,760 60 274. 44 248,971 35 7W1 1L7hps(a) 175,634 210,760 59 n.a. 5 37,076 n.&*. -

Para 3,410,00D 9,479,800 49 214 83 583,564 31 55 17.7Ruiaia 492,810 1,800,404 47 221 7 70,249 n.. 100 -

~,RaIzm(a) 79,153 26,912 62 n.&. 2 16,796 n.a. -

Goias 3,860,000 23,237,200 62 195 223 898,744 26 62 12.9N aeo 1,141,000 1,484,159 58 55 n.e. 11.9mmo Gro 244 447,565 63Sul 1,370,000 5,356,700 67 55 n.a. 7.2

(a) Fderal TMrritDril.

- 45 -

Table 2.3

Teacher's EUDloVant Status and Vase in States andTerritories of North and Crnt*rvoet Brazil

(February 1984)

State/Territory Eac LOar RsGHS 11aUtS PD CR$ 31Toacb-ro-rro t-t-utoe C'-o*tract CLT - MiiZi;i---li m Mij,m M;LO- YaH --

ACRE YES NO YES 20 40 50,246 147,096(215,3") (611,130)4/

A UPA (FT) YES NO NO 20 40 139.973 279.947(305,439) (610.877) 5/

ANAZONAS NO NO YnS 30 38 66,784 *77,700

GDlAS YES NO YES 24 - 48,509 87,272

NATO CROSSO N.A. N.A. N.A. 22 - 93,073 321,100

MATO GROSSO SUL YES NO NO 22 44 35,156 74,730

FARA YES NO YES 25 60 50,256 140,720

ROWDONIA (FT) - - - 20 40 93,652 165,693

RORAIMA (FT) - - - 20 40 139,973 610,877

NOTES: FT indicatoe federal torritority, whereby teachers are ployees of Federal Governmnt and have afederally controlled wage scale. While Rondonia ie no longer a federal territory, federalstandards vill prevail through 1990.

1) -CLT refers to national wage legislation.

2) The minimm vage for these regions prior to 1984 adjuatunts is approximately 24,000 Cr$.

3) Miniimm refors to the wage paid to a t"cher vith lees than secondary education for one shift per school day.

4) Acre has a federal vage scale in forco for teachers contracted with this state was still afedoral territory.

5) Amapa has two federal wage scales in force.

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Table 2.4

Estimate of Direct Cost Burden of Primary School by Income Level

Number ofChildrenin School % of Total Annual Income by Income Decile of Population 1/

18t 2nd 3rd 4th

1 2% 1% 1% it

2 5% 2% 1% 1%

3 7% 3% 2% 14%

4 10% 4% 3% 2%

5 12% 5% 4% 24

17 Source: Appendix Table A9, data for urban incomes in Frontier 1980,Perspectives on Poverty and Income Inequality in Brazil, World Bank StaffWorking Paper 601, 1983; Appraisal mission calculations of direct coststo primary school per student grades 1-4.

- 47 -

Table 2.5

Estimate of Direct Costs of Primary School Per Student Grades 1-4

Transportation 1/ $9.00

Books 2/ $4.50

Paper and Pencils 3/ $1.00

Uniform 4/ $10.00

Total: $24.50

1/ 180 days. (a) 5c per day - $9.002/ Assuming an x of 3 books per student (curriculum requires 2 books per

student in grade 1 and 2 and 4 books per student in grades 3 and 4. (a)$15.0/book.

3/ Assuming 2 notebooks (a) 20c, 10 pencils (a) 5c, 1 eraser (a) lOc.7i/ While uniforms are required in most schools, there is some flexibility in

their use. Average cost of $10.00

Table 5.4: Disbursement Percentages by Categories of Expenditure

Category 1984-1985 1986-1990

Civil Works, Equipment, Furniture 35% 35%

Technical Assistance, EducationalMaterials, Studies 80% 41%

Project Administration 60% 41%

- 48 -

Table 5.5

Disbursement Schedule by Semester(in US$ millions)

AccumulatedIBRD Disbursement Disbursements

CY Sem FY Sem Expenditures Amount % Amount X

1984 II 1985 I 2.9 2.0 2.5 6.0

1985 I II 3.6 2.5 4.5 11.0

II 1986 I 5.0 3.5 8.0 20.0

1986 I II 11.5 5.0 13.0 33.0

II 1987 I 11.5 5.0 18.0 45.0

1987 I II 12.5 6.0 24.0 60.0

II 1988 I 12.5 6.0 30.0 75.0

1988 I II 12.5 6.0 36.0 90.0

II 1989 I 5.0 2.5 38.5 96.0

1989 I II 3.0 1.2 39.2 99.0

II 1990 I .3 .2 39.9 99.0

1990 II .2 .1 40.0 100.0

TOTAL 80.0 40.0

NOTE: Disbursement for Special Account in 1984 is not included.-

DIAGRAM AAdministrative Structure of Subsector Project

in Urban Basic Education, North and Centerwest, Brazil

DirectorDteirc_

LC S~~~~~~~ANational Management

| CEDATE | | COEPE lFAE/IRHJP FAE/FENAME

State & Naton_alCoordination

State Programs in each ildingSecretariat of Education

Natlonal,State & Municipol

Execution

World Bank-26030

- 50 -

DIAGRAM BResponsibilities for Cycle of Activities in Subsector Project

Level of Government Activities

Federal Preparation of Subsector Investment Plan.Appraisal of State investment Plans & AnnualState Programs & Projects.

Technical Assistance to States in Preparation& Implementation of Projects.

Monitoring of State Projects.Evaluation.

State Preparation of State Investment Plan forSubsector Project.

Identiflcation of Specific Projects.Preparation of Specific Projects.Implementation of Specific Projects &Annual Program.

Monitoring of State & Municipal Projects.Evaluation.

Municipal ldentification of Specific Projects.Preparation of Specific Projects.Implementation of Specific Project.Monitoring of Specific Municipal Projects.Evoluation.

World Bank-26031

- 51 -

DIAGRAM CGENERATION OF STATE PROGRAMS AND PROJECTS

Stopped

{No

S Progam Manaogment SECs SelctT Team Sends Program State SECs/ MuncipalitisA & Pect RPlon Recve Accept to M& BeglinR Gukdlines to Prtic Guidelines &clte /ePrgiartlonT pading States \ / .

Prog\am SECs/ SECs Need- \ Proorrnm Municipalities Assistance InManagenent PrMP-PTeam Recetnes Program & & PrjectAppicato Projcts Preparation

I YesNo' No I t COEPE |

I PFENAMENo i IRHJP

NqAEI CEDATE

l ~~~~~~Assist

Distbute Federal Agencics m/n TeomMSndsApplication to Make Field t Meet Yes Programs &AppropKate Appraisal doFdedw Agen Applications ? Projectsrto

in~~~~~~ementatlon ~ ~ ~ ~ ~ ~ ~ ~ Scetryo

\ / ~~~~~~~SEPS

Mtagwnnt Yes ee E; InpWrmentation Team NotMe SECs _ < Ape >

d APPQmI ppk n /

Projecfts rtued to the Pogram Maagement Team would In fanL be sent back to the State SEC for necssVy relormulation.

World Bank-25974

-52- A61 I1.1

COH"AIATIVE EDUCATION INDICATORS Pane I

JANUARY 27, 1984

CENTRKAL

EXPENDITURE EDUCATION CO9LETION PECIIRENaO EDUCATtON REUCRtT ADULT 8ATE FOR UNIT COST PRtOIRS910O

CBP PER AS PIRCENT EXPCEDITURES LITERACY PRIM8aY PRIMARY tcI AUT PRIMANY RATE PROP SLCCONDARTY SV.CONDAPY SI1NCHNSER POP. CAPrITA PERCENT GWr TOTAL CRETBAL ALLOCATED TO: RATE ?t,OLL. SCnOOL STuDENTS EDUCATION PRIWAI' TO NROLtLL. STUD S ENMOLL.TEAh MILLS. (USE) DEVOTED TO COVRMENT PaI sEC RI (Z) RArTo CYCLE PER AS PERCENT SECOWDARY RATIO PER RATIO

(1979) (1979) EDUCATION EXPENDITURE (Y) (1976) (1) (I) TEACRE. CNP/CAPITA (X) (X) TPACMCEN (2)

(1) (2) (3) (4) (5) (6) (7) (9) (9) (10) (11) (12) (13) (14)

DEVELOPED COUNRIESASTR ALIA F. 14.6b 98870 6.53 14.6 -_ _ __ 103Z 100 21 - 99 73 13 20.90CANADA 81 23.7b 9s650b 7.7 18.5ay 30'? 34'? 23'? 99b 106' 100 21 19.98? 100 92. 18 22.60xCGEMNY P.R. 79 61.2 12.200 4.6 9.9 - - - _ b996 9 100' - -- 100' 4 -- 12.1nlNETERLANDS 79 14.0 10 490 7.9 5.1 20 35 25 ,9b? 96 95 18 15.3 99 82 13 12.40N8W ZEALAND 80 3.2b 6,091b 5.5' 13.4 37 31 29 99b 100 100 24 11.6 100 82 1s 2s.9oxs5D3 79 8.3 12,250 9.0 19.2 31 10 10 99* 9g 100 19' 19.9 100 79Y 10S' 3S.506!

EASTERN AnicAUMhUZNZ 80 o.8b 720b 6.3P 19.3 48 28 15 35b 94 74 32 22.0 33^^ 20 19 1.50RURUNDI 91 4.2 235 2.8b' 19.0 43 28 27 25 29' 35 37 20.2 12 3' 17 1.00coIo-os s0 0.4b 260 6 .5V 25.4 40 29b 14 - 99x 65 45 16.0 58 21' 30 1.40WISOUTI 81 0.3 460 5.4 10.8 60 40 ... 10 32 -- *1 - 60 8 19 0.50ETnIOPIA 80 31.0b 130b 2.2P 11.16 52 32 14' 15 39 -- 59 18.0 --- 9 41' 5.10KENYA 79 15.3 390 5.9' 18.Ob 71 15 14 45 92 74 40 15.9 41 19 2e 1.0nLESOTHo 82 1.*b 435b 5.5 16.9 38 32 26 53b 116' 41 48 9.6 46 21 21 1.30MADAGASCAR 77 8.5 330 4.0' 24.0 53 28 19 50 94bz 33 55b 8.0 38 14 23 1.106bMAVLA 81 6.1b 230b 3.5 11.4 38 14 25 25b 62 23 65 5.8 12 4 21 0.40ARITIVS 80 0.9b 1.090b 6.0 11.5 39 40 7 8O 87 78 22b 17.1 79 45' 21 n.40IWANDA 80 5.0b 200b 3.2 21.3 62 17 11 23b 57X 62 40 14.0 6 4x 13 0.40SEYCHELLES 79 0.6 1,770 3.9 22.44 341 33- 10' - - 25 -- --_ __ __SOMALIA 81 4.5 280 1.5 10.5 50b 44b 6 b 50b 22b Bob 29b 9.0b pob 12b 22 1.00SUDAN SO 19.2b 380b 3.0 - 66 39 ... 32 51"t 68 34 1.4 44 16 16 ...SAZILAND 80 0.6 760 7.9 18.8 41 34 15 65b 79 50 34 11.2 99 37b 18 2.50TA6ZANIA sO 18.3 260 5.9 17.7 47 10 16 79b 99b 87 43 11.0 19b 3 20' 0.30UGANDA 80 12.6 300b - 16.1- 23b 37b 20b 48 54X 61 34 - 17 5 23 0.602AIRE 78 27.5 210 6.0' 22.0 49 26 25 15 84? 44 42X - 41 13' 27 1.106bZAntIA a0 5.7b 566b 4.5p 11.1 48 23 22 44b 95 80 48 12.9 19 16 22 1.50ZtNUB6Z SI 7.7b 700b 5.1 19.5 62 32 6 44b 90 55 39 20.0 95 15 23 0.50

WRSTORx AFRICARESIN 79 3.4b 320b 6.5' 35.0 43 21 5 1b 42 30 46 14.0 30 11 43 1.007CAEROON 78 8.2 590 2.9' 16.0y 33- 43' 20' -- 74 45' 30Y 11.8' 20' 147 26 1.307C.A.R. 79 2.2 290 3. '? 20.6?y - - - 65? - 0.70a?CUD 76 4.4 120 2.:4 wy 21.7b - -- 13 257 - 77 - -- 3z? 21 0.207CONDo 78 1.5 670 9.0a 27.7aT - -- - 56? _ 30 _ 43b? 4.00'?GABON 77 0.6 3.420 3.7by 8.4? - - - _ _ - 46b? - -- b19y 2.10aTcAa7s 77 0.6 220 3.3"w 6.5b 46 251 6 10ob 4 0 b 90' 67b? 44.7' 40 126b1 17 -GCNA 76 11.3 400 4.07 15.5b - -_ - 71bx6 _ 23b7 - -- 3661b 21 -GUIXNA 79 5.3 290P 4.6 P - 25' 28' 28' 20 34 36 38 20.02P 85 16 29 7.006IVORY COST 91 J.2° 1.070b 10.0 45.0 33 46 13 30b 60 86 43 26.0 47 15"-? 26 1.906?LIDERA 80 1.9 520 4.6 19.6 43 23 24 30 52 32 35 20.0 76 22 20 2.90MALI 81 7.0b 190 4.2' 21.7' 38 21 11 10 20 60 44 15.7 66 1 11 0.906?

AStTAN8A 78 1.6b 320b 5.5 16.9 33 43 25 17b 32 60 44 52.0 30 9 25 0.37NIGER 78 5.2 300 4.35' 16.6'? 52' 43& 5' A 17 56' 41' 39.7a 40 2 24b 0.207NIGERIA 77 82.6 910 4.1? 9.6 -- - - - -- _ 1OxY 25 0.17?SENEGAL 77 5.5 450 5.0 23.0 46 34 20 10 34bx7 - 43b6 20 10 21 2.20b7SInRA LEONE 77 3.4 250 4.ob 16.0b - - - 15b 37' - 35 25.0b 84 15' 22 0.60byTOGO 78 2.4 400 6.5q' 26.5q 306 28' 21' 18 74 40 54b6 38.0 52 32b6r 48b E.60b6UPPER VOLTA 78 5.6 18O 3.0"r 19.3'? 31 16 32 - 15b? 23 53b6 52.5? 19 3bx6 25 0.02?

LATIN AMEICA AND TME CA-IBEUNARGETIA 78 27.3 2.210 2.7 10.9 43' 31 18' 93b 89 52 17 - 87 31 a 23.00tRAMAs 74 0.2 2,770 5.7 19.1 36 36 11 93b 99 97 24 - 97 75 19 -UARRASOS 79 0.2 2.680 8.56V? 22.1' 43' 31' 16' 99b 1007 99' 27? 19.9' 99' 78' 207 ---

tOLrVIA 8O 3.4 550 4.1-? 30.5' - - - 63 74? - 207 - -- 157 _ 12.607RtEZL 79 116.5 1,770 3.8 6.2 51 - 14 76 73 ' - 23' 4.5b 61* 15? LAMY 12.62bCHILE 76 10.9 1890 3.267 13.06b _ - 11b? - 34b6 -- - 55b61 20b6 11.90b6COLOMB7 80 26.7b l 180b 3.3 25.0 35 20 20 alb 78 36 32 6.6 - 47 20 10.02'?COSTA RICA 80 2.2b 1.8106 8.4 31.1 *0 27 33 90 93 77 33 3.5 77 40 27 14.00CUBA 78 9.8 - 8.0 11.0 -- - - 96 1126w? 98 18b6 - 98 7lb- 15 19.02byDO_ICAN REP. 8O 5.3 1.030 2.9 13.0 39 21 22 68b 8O 31 59 3.2 94 30 33 16.00ECUADOR 80 8 4b 1I110 6.0P 36.7- 45 31 16 81 105 - 36 12.6 86 47 16 29.00L SALVADOR 77 4.4 640 3.46b 23.1b? 64 9 27 62 82bx7 32 39 - 41 26b1? 27by 7.90by

GUATRIALA 78 6.8 1,010 1.7? 12.6b - - - - 69b6 _ 35b7 - 69 13b61 16by . 507CGYAxA 76 0.9 630 8.1b? 13.9by - -_ - 9qb6;r _ 32by -- - 596bx - 3.00byRAITI 80 5.Ob 230 3.A4 7.9y 65 9 6 23b 50 20 41 19.0 62' 4' 27 o.80HOODURA 78 3.6 520 3.5b6 14.3by 62 15i 19 60 *6bx1 30' 416b 12.8' 68' 2117 19 8.007JAMlACA 8O 2.1 1,110 6.5 13.7 37 43 20 90 98 98 40 2.3 95 81 22 9.00tllCO t60 65.5 1 ,0 4.7 17.0' 46 19 15 92 98 53 44 9.5 86 56 17 10.30IllCANAGU 78 2.6b 6106 3.06W 14.06 - -- - 90b 8361 24 376 - - 2661 30b __

PArM 76 1.6b 1,550b 5.5ba7 21-.by 4Ye 13' 13 R26 93b6 -- 235b 11.6 85' 5flby 27by 20.407bPARAGUT 79 3.0 1,140 1.4' 14.2 42 17 20 84 83 32 28 3.1r 76 22 12 0.70PERU 80 16.6 1,000 3.6 14.3 53 15 19 80 83 56 39 9.8 99 39 22 14.40ITRINIDAD A TON. 77 1.1 3,910 4.8b6 096by 48 32 20 95 98 91 30 10.5t 49 62 24 --URUGUA 78 2.9 2,500 2.5 9 .4 b - - - 94 105bx _ 24b _ 6 64b6 - 17.80'?VZENZUELA 78 14.4 3,440 5.1 IS.9b - - - 82 106bx - 28 - - 386b 17 21.10o

-53 -

one x 1.1COMPARATIVE EDUCATION INDICATORS Page 2,

JANUARY 27, 1984

CENTRAL

EXNEDITURE EDUCATION COMFLFTION NCURREtNTON EDUCATION RECURRENT ADULT RArg Fo UNIT COST PNOGRESSION

GNP PER AS PERCrET EXPENDITuRES LITtRACY PRIMARY PRIMAXT PRIMA? PRIMARtY RATE FPRO SECONDARY SECOEDARY PIGCPCBASE POP. CAPITA PERCENT GNP TOTAL CENTRAL ALLOCATED To0 RUATE ENRLL. SCrOOL STUDENTS EDUCATION PKIMAR TO) E£NOLL. STOEDNTS FNROLL.YTEA MILLS. (U5$) DEVOTYD TO CO6RNMUNT- PRI SEC rI (5) RATIO CYCLE PER AS PERCENT SECONDARY RATIO PEN HATIO

(1979) (1979) EDUCATION KPExDIToRE (Z) (1976) (1) (I) TRACKER GWP/CAPITA (%) (C) TEACrR ('I)

(1) (2) (3) (4) (5) (6)) 7) (9) (10) () (12) (13) (14)

rAST ASIA AND TSr PACIFICCEINA 81 ff6.ob 300b 3.6 8.3 34 39 27 69b 80 63 23 7.0 72 38 17 3.70INDONESIA 81 1 5 0 . 5 b 520 2.1 9.3 70 24 6 3 2 b 98 61 37 11.0 74 27 26 3.70KOREA 82 39.3b 1.6366 7.7V 20.8 34 34 31 96 99 98 43 19.0 98 84 38 21.90MALAYSIA Sl 14.2b 1.785b 5.2 22.0 32' 37' 23' 606 96k' 97 22 12.2' 87 65' 19 3.70'PAPUA N.C. 79 2.9 760 5.4' 16.46 - --_ - - 6 2 bR 73 31 1.1 -- t,bx 23 --PrILIPPINES 79 48.36 6 9 0 b 2.8' 14.0 64 36***- 75b 84 65 31 7.1 89 55 36 21.00SINGAPORE s0 2.4 4,420 2.7 6.7 39 40 16 83 92 82 31 8.8 46 SS 22 8.00SOLONX ISL. 80 0.2 *60 4.2Pw 10.0' 41 34 20 - 60 s0 26 - 33 18 - ---TNAILAND so ,7.3b 723b 3.4 20.9 59 15 13 86b 96 - 17 9.3 59 29 22 4.00

SOUTN ASIArAN£5ADESH 79 92.3b 90 1.1P 10.14y 51 17 20 22b 637 - 53 5.6 -- 14 23 1.43INDIA 77 639.6 210 2.97 9.9y - -- - 36 79 - 4l - ___ 2' --- .30&7NEPAL 82 15.Ob 150b 1.4 - - _- _ 19 70 - 38 --- _ 21 23 3.70'PAKISTAN 79 79.7 270 2.0wY 3.17 39 26 27 24 561 800 48 6.5 51 20x 17 6.00

rUROPE. MIDDLE EAST AlD NORTH AFRICAAFGHANIsTAN 77 15.5 - 1.7 3.7 47 19 15 12 31by 69 37b 6 62 a 22by 1.007

ALGERIA 79 IP.3 1,770 3.8' 12.3 34' 268 21' 35 837 453 37 7.0? 55' 297 26 3.707EGrYT 51 43.0b 580b 3.1" 4.5 31' 35& 26' 44 84X 80' 34 9.8' 83' 43 19 15.00'GREECE 76 9.3 4,140 2.6' 10.6b 37 26 21 -- 97b6 -- 29b 6.2? -- 79b- 77by 17.90b6IRAN 79 36.9 - 5.7a' 1 4 . 1 -- -- - 50 so i o -_ 32' -- 44" 248 4.90mYIRA0 79 12.6 2,710 4.3-7 6.9' - - -- - 100' - 28 - -- 45&y 2S' 9.30'IRELAND 81 346 4 480 6.3a' 11.8 ' - - - 98 93 94 29 - 98 81 14 11.00JORDAN 8l 2.2b 1.420b 4.9g 10.2 19 44 18 70b 1O8X AS 32 7.2 91 A2R 25 19.00LERANON 79 2.3 -- - 18.6"7 - - - - 96' - 19 - -- 46' - 27.80 'MOROCCO s0 19.5 740 6.3"' 17.5' 36 44 20 28 56 ' 35 39 19.7 40 2sx 21 4.50OwAN 79 0.9 3,530 3.7a" 4 . 9 ' - -- -- - 4 5 a7 - 23' - - 7x 9 --POUCAL 79 9.b 2.060 3.6 . 22.2 30 28 11 78 97 20 19' 12.8 88 4 5X 17$ .30'OKAMIA 78 22.1 2,100 3.g9b 6 . 2 ' - - - 98 1 0 6 bx -- 236 - 98 84bx 22b 10.60by

SPAIN 76 37.0 4,920 2.13 16.8' - -- - 98by - 29b - - 67by _ 24.10bySYRIA 78 8.6 1,170 4.4P 10.3 39 25 26 38 87by 80 35b - 68 41by 21b 12.60TUNISIA 79 6.4 1 130 7.0P 19.0 42 39 18 62b 07ox 80 39b 12.8 30 30X 30 6.00TURMr 81 4D7b 1.460h 3.1 26.2 - - - 73b 118' 90' 28 7.9 31 38 20 6.70YErN A.R. 80 6.8 420 5.0P' 12.0 94 7 7 21b 37 12' 38' 67.0 85 3 20 1.10TYMEN P.D.R. 82 2.Ob 420b 7.6 9.7 63' 14 r 53 61 34 25 22.0' 46 17 20 2.50

SLMKARY rFO DEVELOPING COUNTRIES:Nuber of Countries: 84 94 70 69 67 76 88 64 94 62 72 91 86 83

Mneg: (1.4- 3.7- (19- (7- (5- (8- (15- (12- (17- (1.1- (6- (2- (8- (0.01-

10.0) 45.0) 94) 6) 36) 99) 119) 99) 77) 67.0) 99) 84) 48) 29.0)

Ouartilee: Upper: 5.6 20.8 52 35 21 80 96 79 42 20 R5 45 25 10.6Median: 4.0 15.5 43 27 18 52 83 60 35 12 61 25 21 3.7Lower: 3.0 10.5 37 18 13 24 56 33 27 7 40 13 18 1.0

Quartile DvIation: 1.1 5.1 7.5 9.0 4.0 23.0 20.5 22.5 7.5 6.4 22.5 15.5 8.5 4.8

Hasn: 4.5 16.1 46 28l 18 53 75 60 36 16 60 31 21 6.9

Standard Deviation: 1.9 7.4 13 10 7 30 26 25 11 13 27 23 7 7.4

Mediau: 4.0 15.3 43 28 19 53 83 61 35 12 61 25 22 3.7

SYMOLS: FOOTNOTES:DATUM UNAVAXLA£LE A - DATUM PRIOR TO EASE YEAR S - MINISTRY OP EDCATION (MOE) ONLY

... MAGNITUDE NIL OR NEGLIGIRLE S - DATUM MORE RECENT TRAN RAUE TEAR T - MOE AND STATS GOVE£MNT ONLY? DATUM QUSTIONASLE N - CURRENT PRICES V - PUBLIC EXPENDITURE ONLY* INCLUDES PART-TINE STUDENTS P - GDP X - INCLUDES OVER-AGE STUDENTS

Y - UNESCO SOURCESSOURCS:

Columns I 2od 2: World Bank Atla or ZlED jtesaons.Colowns 3 to 14: ERD mission. Govermenst soor.. and/or Un*sco Statisticl TYerbook.

Comparative Education Data ar useful in the evaluati:o of variSou *duction syste and anmlysia of relative staes of educattonal developmet betweqn vriouseoOnttlee. owpver. on the basS. of the present data, croseatlonwl coaparlsou shold b6 approacb.d dith graat cawtion. Det- premantod to the above tabl havebeen collected larsely by Bank udjsions frm Sovrnm_nt sources; the remsinder are staff entiNate or data from Unesco. Efforts hae bees mde to standrdtedefinitiaowand, within lalts, to check the aecuracy of the data. NeRvrtbeless, uch data are still Imperfect In several respcts and the rnk is working eeimprove thee pragrssively on tbe occmaio of its operational work. In the ue of tbese data, the foliowing qu llfcatlons bhoald be kept In mind:

(1) XEdcation' as defined In the table includes 11 education and trainig, both formal and non-forml.

(2) 'Primary *ducation refers to educatton at the first lal and seokndary' education refers to all *ducatitn at the secondry la"a remard1ass of tye(e.g.. Senral. technical, agricult.ral).

(3) "Literacy rates' (col. 6) ar' often obtained from country cans.sa.. In may countrias they ara mly approximatios and It iS doubtful that may untformdefinition of literatle has been followed consistently.

(4) -ubllc expenditur In education" (cols. 4 end 5) referm to all capital and recurrmnt expenditures devoted to education by public and quai-publicasencles.

(5) "Earollmnt ratios' (cola. 7, 12 and 14) refer to school year and are the percntage of eliSible children erolled full-tim in the appropriate echol,public and pri,ate by level. They are often subject to a wide warsin of error in the dealoping countries mwing to variations ie the accuracy of baesideta (i.e., age-spcific population *nd *nrellm-nts). Enrollmnt fiures frequently are hISher than the n_abr of students actually in sehol. Over-eEedstudents whose inclusion Is indicated by foototno also can iaflate the ratios.

54 - ANNEX 2Page 1 of 2

Selected Documents Available in Files

1. Estudo Preliminar a Definiao de Programa de A;ao Para o Acordo MEC/BIRDe Anexo de Dados.

2. Informagoes Gerais Sobre A Regiao Centro-Oeste.

3. Informagoes Gerais Sobre As Unidades Federadas da Regiao Centro-Oeste.

4. Informa;oes Gerais Sobre A Regiao Norte.

5. Informasoes Gerais Sobre As Unidades Federadas da Regiao Norte.

4. Dados Sobre Recursos Financeiros Disponiveis e Aplicados Na Fun;aoEducagao No Centro-Oeste e Nas Unidades Federadas da Regiao.

7. Dados Sobre Recursos Financeiros Disponiveis e Aplicados Na Fun9aoEduca9ao e Cultura No Norte do Pais e Nas Unidades Federadas daRegiao.

8. Caracterizagao Socio-Economico, Demografico e Educacional de Rondonia,Mato Grosso, Amazonas, Goias, Mato Grosso do Sul, and Roraima.

9. Prograuas Estaduais

GoiasAapaMato Grosso do SulAmazonasRoraimaMato GrossoAcreParaRondonia

10. Fundo Nacional de Desenvolvimento da EducacaoRelatorio Anual 1982, 1981, 1980

11. Manual de Elaboracao e Avaliacao de Projetos

12. Manual de Programacao e GerenciaAnexo I

13. Manual de Macroplanejamento

14. Plano de Investimento

15. Manual de Orientacao para Planejamento de Rede EacolarUrbana/1 Grau N/CW

- 55 -

ANNEX 2page 2 of 2

16. Criterios para Elaboracao de Projetos-Escolas de 1' Grau, 1'-4a. Series

17. Relatorio Tecnico/Testagem: Microplanejamento de Rede Escolar em AreasUrbanas/Goiania

18. Criterios para Selecao de Terrenos

19. Termos de Referencia para Projetos de Recursos Humanos

20. Termos de Referencia para Projetos de Material de Ensino

21. Termos de Refereacia para Planejamento ao Longo Prazo

22. Fluxos Escolares.

IBRD 18031

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