Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 3643b-EC

STAFF APPRAISAL REPORT

ECUADOR

SECOND VOCATIONAL TRAINING PROJEC'.

May 10, 1982

Projects 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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CU]RRENCY EQUIVALENTS(as of April 1, 1982)

Currency-Unit Sucre (S/)US$1.00 = S/30.00S/1.OO = US$0.033S/ million US$33,333

MEASURES

1 square meter (In2) = 10.76 square feet (ft.2)1 kilomelter (km) = 0.62 miles

GOVERNMENT OF ECUADOR

Fiscal Year

January 1 - December 31

GLOSSARY

CONADE - Consejo Nacional de Desarrollo

CENDES - Centro Nacional de Desarrollo Industrial

SECAP - Servicio Ecuatoriano de Capacitacion Profesional

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FOR OFFICIAL USE ONLYECUADOR

STAFF APPRAISAL REPORT ON A

SECOND VOCATIONAL TRAINING PROJECT

Table of Contents

Page

BASIC DATA

I. MAJOR ISSUES IN SKILL TRAINING .......... ................................. . 1

Overview ................. * * **...............* . 1Skill Shortages .......... ....... ... ........................... 1Low Quality of Training Programs ........... .................... 4

Consequences of Skills Training Inadequacies ................... 4

II. THE SECAP VOCATIONAL TRAINING PROGRAM .......................... 5

Introduction .................. ........ ....................... 5Major Distinguishing Features ....... ...................... . 5objectives ................................ ............ .......a .... 5Program Description ............ ................................ 6Administration .. ............................................. 6Training Centers and Programs of Study ....................... 7Instructor Characteristics and Preparation ................... 8Student Evaluation, Placement and Follow-up .................. . 8

Financing ...................................................... 9Assessment of Strengths and Weaknesses ...... ................... 10Development Plans ............................................... 12

III. THE PROJECT ....................................................... 16

Objectives .................................................... 16Components and Description .... ................................. 16Vocational Training Centers .................................... 17Mobile Training Units .......................................... 20Instructor Training and Instructional MaterialsProduction Complex ................... ......... ............. 21

- Further Development Plans ......... .. . .......................... 23Technical Assistance .....................--.---. 24

This report is based upon the findings of an appraisal mission to Ecuadorduring May and June of 1981, composed of Messrs. S. Apergis (Economist andMission Leader), W. Hobbs (Senior Technical Educator and SAR writer), andY. Matallana (Architect, Consultant).

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

TABLE OF CONTENTS (Continued)

IV. PROJECT COST, FINANCING AND IMPLEMENTATION ..................... 26

Cost of t:he Proj ect ..................................................... 26Recurrent. Cost Implications ................. ................... 29Project F'inancing and Disbursesment Plan ........................ 31Implementation, Procurement and Auditing ....................... 32Monitoring and Evaluation ......................... ,............ 35

V. BENEFITS AND RISKS .................................................... 36

Benefits ... .................................................... 36

Risks ... ......................................... 0.................. 36

VI. AGREEMENTS REACHED AND RECOMM:ENDATIONS ......................... 37

Tables

1.1 Evolution of the Labor Force, 1974-1986

2.1 Enrollments and Outputs by FieLd--19802.2 Recurrent Costs per Student-Hour of Instruction2.3 Skilled Worker Demand Assigned as SECAP Training Quota2.4 SECAP Development Plan Parameters2.5 Instructor Requirements to 1990

3.1 Project Components, Enrollments and Outputs3.2 Regional Distribution of Training Centers3.3 Enrollment:s and Annual Outputs by Programs of Study when Fully

Operational in 19873.4 Staff Development Plan, 1983-19863.5 Projected Output of Instructor Training Center3.6 Technical Assistance Requirements

4.1 Estimated Total Project Cost by Project Component4.2 Total Project Cost by Category of Expenditure4.3 Unit Cost Comparisons for Vocational Training4.4 Expected Annual Price Increases During Implementation4.5 Estimated Recurrent Costs of SECAP Program by Years4.6 Estimated Schedule of Disbursements4.7 Implementation Schedule

ANNEXES

ANNEX I Comparative Education IndicatorsANNEX 2 Structure of Education and Training System (1973)ANNEX 3 Structure of SECAPANNEX 4 Contingency AllowancesANNEX 5 Criteria for Construction Site SelectionANNEX 6 Related Documents and Data Available in the Project File

MAP

BASIC DATA(1980)

Total Population 8.4 million

Literacy Rate (over 15 years of age) 81%

Secondary School Enrollment as aPercentage of Age Group 12 to 17 44% male

49% female47% total

Higher Education Enrollment as aPercentage of Age Group 18 to 23 37% male

20% female29% total

Central Government Expenditures onEducation as a Percentage of CentralGovernment Expenditures 35.5% recurrent

4.9% capital27.0% total

Total Expenditures on Education as aPercentage of GDP 6%

I. MAJOR ISSUES IN SKILL TRAINING

Overview

1.01 The major issues in skills training in Ecuador are the shortage andlow quality of skilled workers. These problems have adverse consequences onindustrial productivity and will become progressively more serious if notadequately addressed.

Skill Shortages

1.02 There is an urgent need for skills training programs of varioustypes, skills requirements are rising steadily, and the current output isinsufficient to meet projected demands due to insufficient trainingopportunities.

1.03 Need for Skills. In efforts to reestablish the high average annualrates (8.3% at constant 1978 prices) of economic growth between 1970-1979,policy makers are faced with diminishing receipts from petroleum and arapidly increasing and largely unskilled labor force. In view of thissituation, increasing investment in skills training becomes more desirable.Improving the skill levels of new entrants, as well as upgrading the skillsof existing workers, would increase productivity and reduce capital waste dueto inappropriate operation and maintenance of equipment. Also, increasedskills training opportunities for rural to urban migrants would permit theiremployment in the higher productivity economic sectors, thus avoiding undueexpansion of the marginal labor force that is grossly underemployed in lowproductivity services. Appropriate training programs and locations can helpin exploiting more fully the potential advantages of the Andean Pact and moregenerally facilitate the production of competitive exports. Additionally,strategically located training facilities can encourage movement of economicactivity towards the smaller population centers with growth potential. This,in turn, would contribute to a balanced and efficient transition to anurbanized economy.

1.04 Human Resource Requirements for Development. Aware of thepotential benefits of investment in skill training facilities, the Ecuadorianplanning body Consejo Nacional de Desarrollo (CONADE), has prepared plans forthe formation of the human resources required for attaining planned economicrates of growth. These requirements are based upon the population census of1974. They are projected on the basis of labor force growth estimates,actual economic growth through 1980 and a planned growth rate of about 6%during the period of 1981 through 1985. The following table provides theprojected size of the labor force in 1986, its composition by occupationalcategory and the average annual demand during the 1974-85 period.

Table 1.1: EVOLUTION OF THE LABOR FORCE, 1974-1986

----------- In Thousands -------------

AverageLabor Force Incremental Annual

Projected Demand a/ DemandOccupational Category 1974 1986 1974-1985 (1974-85)

1. Professionals and -

Related Personnel 91 262 204 17

2. Managers, Administrators 19 51 39 3

3. Office Personnel 73 156 109 9

4. Commerce and SalesPersonnel 152 237 132 11

5. Farmers and RelatedPersonnel 1,242 1,340 659 55

6. Transport Workers 48 65 31 3

7. Artisans and Operators 263 531 362 30

-8. Other Artisans andOperators 63 110 68 6

9. Other Work.ers, n.e.c. 62 126 86 7

0. Services and RelatedPersonnel 142 335 250 21

1. Persons n.e.c. 105 67 -27 -2

Total 2,260 3,280 1,913

a/ Includes aLdditional requirements due to: (i) actual economic growththrough 1980; (ii) planned economic growth from 1981 through 1985; and(iii) attrition. Allowances have also been made for projectedincreases in labor efficiency.

Table 1.1 indicates substantial annual increases in industrial workersneeded in the order of about 30,000 new artisans and operators each year.It is estimated that about 18,000 (16%) of those should be skilled workers.

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1.05 Insufficient Supply of Skilled Industrial Workers. Formalentry-level training is mainly the responsibility of institutionalizedtraining programs under the Ministry of Labor and large public sectorcorporations and, to a lesser extent, the Ministry of Education. The role ofprivate training institutions, except for the clerical trades, is expected todiminish even below its current low level as training programs become moreexpensive to equip. Estimated total outputs of all institutional sources in1979-80 were only about 2,000 newly skilled industrial workers as contrastedto an average annual demand of about 18,000 (para. 1.04). By 1984, theoutput from existing institutions and those under implementation are stillnot expected to exceed about 3,600 or about 20% of the estimated annualdemand. Additionally, there is a large and continuing demand for upgradingtraining for employed workers.

1.06 Causes of Shortage. The major causes of the short supply are thelow proportion of secondary technical graduates that join the labor force;inadequate training opportunities in terminal skills programs; andinsufficient regional distribution of terminal skills programs.

1.07 A low proportion of secondary technical graduates join the laborforce. Only about 600 (32%) of the average annual output of about 1,900industrial graduates. of 1978 and 1979, entered the labor force, with theremainder continuing on to higher education. This low entry rate, ascontrasted to a more desirable rate of 60-70% in similar countries, is due toinappropriate curricula, poor equipment and unrestricted university entryregulations. The problem in part is being addressed by two projects. UnderCredit 124-EC l/ the Bank assisted in upgrading the quality of industrialskills training programs, and increasing their relevance to industrial needs,In four of the technical secondary schools. The Inter-American DevelopmentBank is also assisting in upgrading programs in eight additional secondarytechnical schools. The project is scheduled to be completed in 1984.

1.08 Inappropriate public and governmental perceptions of the economicvalue of vocational-training have resulted in inadequate trainingopportunities. Although vocational-technical training has been provided inthe upper secondary system since the middle 1950s, in 1978 industrial coursescomprised only 4.6% of the total enrollments in the technical secondary

1/ Due to implementation difficulties the project was not completed until1980. Consequently, the first graduates from the updated facilitieswere in 1980; however, the industrial training facilities becameoperational in 1977-78. Although,data are not yet fully available, itis expected that about 65%-70% of the students of the improvedsecondary programs will enter the work force upon graduation. Themajor lessons learned were the difficulties in the timely provision ofcounterpart funds by the Ministry of Finance and the inadequacy ofproject implementation management by the Ministry of Education.

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schools. Furthermore, the low capacity of the non-formal institutionaltraining sub-sector produced only 2,0()0 new industrial workers in 1980 ascontrasted to an average annual demand of about 18,000. However, it was notuntil 1980 that the Government declared vocational skills training as apriority area in its development planiing and that plans for expansion beganto be made.

1.09 The regional distribution of training opportunities in terminalskills training programs is inadequate. In 1980 only two public trainingcenters (Ambato and Cuenca) were available for the three-fourths of thepopulation living outside the major ciities of Quito and Guayaquil. Thesecenters, with only about one-third of total enrollments, were operating ininadequate and poorly equipped rented facilities and offered only shortupgrading and adult training courses, mainly in the business field.

Low Quality of Training Programs

1.10 The second major issue is the low quality of industrial skillstraining programs, especially at the secondary levels and in privateprograms. The relevance of training to employment needs in the secondarytechnical programs, especially in the industrial trades, is low because ofinappropriate curricula, poorly qualified instructors and insufficientequipment and training materials.

1.11 The low quality is a result of curricula and course syllabi whichare overly theoretical, university-oriented and, consequently, largelyirrelevant to the needs of industry for skilled workers. Quality is alsoaffected by inadequate inputs from business and industry in maintaining therelevance of course syllabi due to the lack of functional industrial advisoryand job follow-up systems. The lack of business or industrial experience inthe majority of the instructors resulls in frequent failures in theapplication of specific knowledge and skills to industrial work situations.Poorly equipped laboratories and shops and insufficient training materialsalso adversely affect the quality of itraining.

Consequences of Skills Training Inadequacies

1.12 The consequences of these deficiencies are: a serious shortage inthe number of annual outputs of skillead workers (para. 1.05); and an outputof inadequately skilled and motivated graduates who are reluctant to enterthe work force. The situation is further complicated by the strong socialpressure to continue education. In the final analysis this leads to lowproductivity because skilled workers need to spend an inordinate amount oftime in training new workers on the job. In view of the limitedinstitutional capacity for the training of artisans and operators, signifi-cantly increased training efforts by both Government and private enterpriseincluding on-the-job training, will be required to meet projected levels ofdemand for skilled workers.

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II. THE SECAP VOCATIONAL TRAINING PROGRAM

Introduction

2.01 Since 1968 the major responsibility for the training ofsemi-skilled and skilled workers has been assigned by law to the ServicioEcuatoriano de Capacitacion Profesional (SECAP). SECAP is a semi-autonomousagency governed by a board of directors representing the Government, privateenterprise and the trade unions. The board is chaired by the Minister ofLabor, of whose ministry SECAP is a dependency.

Major Distinguishing Features

2.02 The SECAP training program is designed to train semi-skilled andskilled workers through flexible terminal training programs. SECAP'sdistinguishing features are:

(a) it is semi-autonomous and operates under a board of directorsrepresenting government, industry and labor unions;

(b) by law about one-half of its operating costs are to be financedthrough a payroll tax on business and industry and the remainderthrough public budget allocations;

(c) it tends to be responsive to the changing needs of the productionand services sectors through its upgrading courses for employedadults;

(d) the curricula and course syllabi of its training programs empha-size the application of knowledge and skills in accordance withindustrial requirements and 65% of the total instruction time isin applied shopwork;

(e) its training programs are strictly terminal and employmentoriented;

(f) about two-thirds of its trainees, both in full-time and in adultshort courses are from low income urban groups and about one-thirdof its participants are women; and

(g) it has a continuous instructor training program.

Objectives

2.03 The SECAP training program has the following major objectives:

(a) expanding the output of skilled workers and middle-level managersfor business and industry;

(b) upgrading the skills of employed workers and retraining workersfor new skills where necessary; and

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(c) upgrading the quality of training programs by providing a channelthrough which business and industry can participate in programdevelopment and implementation.

Program Description

2.04 Administration. SECAP has three levels of administration--central,regional and local. Currently the regional and local levels coincide becauseof the low number of training centers. At the central level policy isdetermined by a nine-member Board of Directors chaired by the Minister ofLabor and consisting of the Ministers of Education and Industry, the DirectorGeneral of the National Center for Industrial Development (CENDES), tworepresentatives each from employers and labor unions, and a representative ofthe National Development Council (CONAI)E). Normally the Board meetsmonthly. An Executive Director, appointed by the Board of Directors for anindefinite term, is the chief administrative officer of SECAP. He isassisted by the five directors of planning and evaluation, legal affairs andpublic relations, technical affairs, operations, and administration (Annex3). The directorate of planning and evaluation, with a professional staff of12, is responsible for medium and longer term planning, design andcoordination of graduate evaluation studies, and arranging for the design andconstruction of new-buildings. The directorate of technical affairs isresponsible for curriculum and course syllabi development and instructortraining. It is staffed by a full time core of six subject-matterspecialists and six teacher trainers. The directorate of operations isresponsible for coordination of local instructional programs, the mobiletraining system and instructor recruitment. The directorate ofadministration is responsible for financial affairs and personnel records.

2.05 The regional coordinator system will become functional whenjustified by greater numbers of centers in the various regions. It willcoordinate training programs between centers within the respective regions tomeet the needs of business and industry. It will also coordinate andfacilitate business, industry and training center relations and studentplacement.

2.06 At the local level, the director of each training center is thechief administrative officer and reporl:s to the Executive Director of SECAPthrough the Director of Operations. The center director is assisted bycoordinators of training programs and administrative services who, in turn,are assisted by the chiefs of training programs. Also, informal representa-tives of local and regional business and industry advise the director ontraining matters and student placement.,

2.07 Recruitment is coordinated al: the national level by the Directorateof Operations and at the local level by the center directors. The SECAPprogram is promoted through radio, television, national and local newspapersand a variety of brochures and reports. It emphasizes the important role ofskilled workers in economic and social development, describes the kinds oftraining programs available, employment opportunities and the placementsystem. This promotion is successfully directed towards potential students,parents, business and industry, and the general public. Applicants for

enrollment greatly exceed the training capacity of all centers and no problemin student recruitment is expected in the planned expansions.

2.08 Training Centers and Programs of Study. In 1980 SECAP's trainingprograms were carried out in six centers, only two of which (operating in

rented facilities) were located outside of the two major cities. Currentenrollments of full-time and part-time students in morning, afternoon and

evening shifts are shown in Table 2.1.

Table 2.1: SECAP ENROLLMENTS AND OUTPUTS BY FIELD--1980

EnrollmentsUpgrading New Annual

Field of Training Courses Trainees Total Outputs

Agriculture andFood Processing 3,990 20 4,010 3,600

Industry andConstruction 6,350 830 7,180 5,670

Commerce andServices 9,390 - 9,390 8,140Total 19,730 850 20,580 17,410

2.09 The training centers have three types of training programs--regular full-time programs for youths of 14-18 years of age, adult programsfor new trainees of more than 18 years of age, and upgrading programs foremployed workers. As seen in Table 2.1, upgrading courses for employedworkers dominate the training programs, comprising about 96% of the total.The regular programs are open to students who have completed a minimum of sixyears of schooling. These programs are offered only during the hours of 7 amto 2:30 pm for five working days per week and 40 weeks per year. The firsttwo years of training are conducted in the centers and are followed bycenter-supervised, on-the-job training for a period of six to twelve monthsdepending upon the type of skill. The adult programs also require thecompletion of at least six years of schooling. These programs are offeredmainly during the afternoon hours of 2:30 to 9 pm, but may be also offeredduring the morning hours in some centers. Program length varies from 120 to2,700 hours with an average of about 1,760 hours. The upgrading programs foremployed workers are offered to employed adults desiring to improve theirskills. With a few exceptions, these programs are taught in the eveninghours from 6 to 9 pm. Program length generally varies from 60 to 480 hours,with an average of about 240 hours. SECAP also has mobile training courseswhich provide short training courses of up to 140 hours duration in smallurban areas and rural communities. Four mobile units are currentlyoperational in highway and construction machinery maintenance and in farmtractors and machinery, and overall performance has been good.

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2.10 Curriciula and course syllabi have been developed by business andindustrially experienced subject-matter specialists and, in the moretechnical fields, by experts from bilal:eral and multilateral assistanceprograms. Thus far, 11 specific regular training programs have beendeveloped for the industrial areas. A wide range of short courses forcommerce, services and the industrial areas have also been completed andsuccessfully utilized. These curricula and course syllabi are well balanced,are developed on the modular basis, an(d have an average distribution of 35%technical theory and 65% technical practice. Basic course syllabi for theindustrial programs are adapted to regional conditions, where appropriate, bylocal instructors with the assistance of local industry.

2.11 Instructor Characteristics and Preparation. With some exceptionsthe 210 current full-time instructors are fully qualified pedagogically,having completed the required pre-service and in-service pedagogical trainingprogram. Their average age is 31, 28% are university graduates, and 72% aretechnical secondary school graduates. All instructors of technical coursesare required to have a minimum of three years of industrial experience.Although the average industrial experience is currently about 11 years,instructors for the afternoon adult classes are mostly part-time onesselected from among the full-time reguLar program instructors and frombusiness and industry. With the exception of full-time supervisors, theupgrading evening classes are staffed almost entirely by part-time andexperienced technicians and administraltive personnel from business andindustry. Although vocational instructors are paid somewhat less than theycould get in industry, the better working conditions and employee benefits inSECAP make instructor recruitment relatively easy. They are also able toteach in the evening classes at extra pay, which can significantly enhancetheir earnings.

2.12 The instructor training program is staffed by six full-time,qualified and experienced professional teacher trainers, and such part-timetrainers on an ad-hoc basis as are required. The training program consists ofa total of 1,320 hours of pre-service and in-service pedagogical courses.Pre-service courses (400 hours minimum') are conducted in SECAP's inadequatefacilities in Quito, while in-service courses (pedagogy and technology) aregenerally conducted in the local centers in modular units of 40 to 120 hourseach. Training curricula and course sylLlabi have been developed with theassistance of both bilateral and multilateral agencies and additionalassistance is being requested. About 250 instructors participated inpre-service or in-service training during 1980 and about 300 are expected todo so in 1981, with about 50% of those being in technical skills upgradingcourses.

2.13 Student Evaluation, Placement: and Follow-up. Student evaluation andfollow-up are joint functions of the local training centers and the centralDirectorate of Planning and Evaluation. While some good evaluation andfollow-up studies have been conducted during the past two years, thecurrently small (2) and relatively inexperienced staff at the central level

is inadequate to serve the needs of the expanding training program.Evaluation procedures for day-to-day workshop activities are reasonablywell-developed and formalized. However, evaluation of the in-plantapprenticeship phase of the training is not sufficiently well-developed orformalized to provide the quality of required feed-back on job performance.SECAP realizes the high value of the rapid feedback which this phase oftraining can provide. Consequently, it has obtained bilateral assistance inupgrading this critical aspect of its training program. Evaluation of certainaspects of the instructor training program, such as the use of more effectiveteaching-learning aids and methodology, is the joint effort of local chiefsof instruction and the central instructor training department. While thisaspect of evaluation is functioning quite well, improvements are continuingto be made.

2.14 Job placement is the responsibility of the local training centeradministration with the assistance of the central Directorate of Operations.The placement of graduates is good. A recent follow-up study of a sample of1976-79 graduates of the regular program shows that 97% were employed intheir fields of study within four months of graduation (60% within onemonth). In terms of qualitative abilities, graduates of the regular full-timeprograms are expected to perform, after a short period of on-the-jobexperience, as medium-level skilled workers. Participants in the upgradingprograms frequently move into technician and mid-management positions.

Financing

2.15 The total capital and recurrent budget of SECAP for 1980 wasS/132.5 million (US$5.3 million), of which about 18% was for capitalinvestments. This amounted to less than 1% of the total budget allocated toformal education. About one-half of SECAP's total budget came from the wagelevy (0.5%) on the business and industrial sectors, with the remainderprovided through Government appropriations in conformity with the lawspecifying SECAP's sources of finance. In 1981 the wage levy produced asignificantly, and unexpectedly, higher yield. On the other hand, fiscalproblems led the Government to reduce its contribution and to require SECAPto revise its budgeted recurrent expenditures downward. In part, this alsoreflects a recent effort of the Government to limit its contributions tofinancing of capital costs, and to let the private sector finance SECAP'srecurrent costs through the wage levy. As a consequence of these actions,the Government's contribution was limited to about 20% of SECAP's totalbudget. As a result of decelerating economic growth, the receipts from thewage levy are expected to grow slowly in comparison to recurrent expenditureswhose growth will reflect current expansion plans and instructor improve-ments. Therefore, in the future it will be necessary for the Government tofund part of the recurrent costs in addition to SECAP's capital investmentprogram (Table 4.5).

2.16 SECAP currently faces only minor cash flow problems. Receipts fromthe wage levy, which are subject to minimal seasonal variations, are promptlydeposited to SECAP's bank account each month. The Government's contributionsare normally received on a monthly basis, but delays of up to two months havebeen experienced.

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2.17 SECAP's unit recurrent costs in 1980 were reasonable and comparefavorably with othear Latin American countries. 2/ Table 2.2 shows theaverage costs per student-hour of instruction for certain selected coursesand programs.

Table 2.2: RECURRENT COSTS PER STUDENT-HOUR OF INSTRUCTION

Type of Program Costs in US$ Per Student-Hour by CourseBusiness Metal Mechanics Electricity

Regular Full-time 0.22 0.50 0.48Adult Training 0.22 0.40 n.a.Upgrading 0.28 0.83 0.70

Annual unit recurrent costs per student in the regular industrialprograms averaged about US$830, while those for the businessprograms averaged about US$370. These are comparable to other LatinAmerican countries.

Assessment of Strengths and Weaknesses

2.18 Strengths. The SECAP vocational training program has beenestablished on a sound basis, appropriately addresses the issues of thesub-sector and is generally well-designed. Although hindered by insufficientsupport by the governments of 1971-79 and instability in staffing at the toplevels of management until late 1979, SECAP has still been able to developimportant strengths. Among them are those of:

(a) an appropriate administrative and operational structure withclearly defined areas, authority, responsibility andcooperation;

(b) the composition and influence of its board of directors, whichkeeps training relevant to national economic planning and the needsof business and industry (para. 2.04);

(c) the practical orientation and terminal nature of its curriculum;

2/ The costs per trainee of industrial courses in SENAI of Brazil, forexample, were US$1.27 per hour in 1977.

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(d) flexible length, well-balanced and modular curriculum andcourse syllabi for most training programs which can quickly respondto changes in regional and national labor market demands;

(e) a budget system which receives more than one-half of its inputsfrom a business and industrial payroll tax;

(f) a strong instructor training staff; and

(g) an effective student recruitment program.

2.19 Weaknesses. However, the SECAP training program has a number ofdeficiencies which must be addressed. The administration is aware of theseweaknesses and is addressing them. The more critical ones are discussedbelow.

(a) Administrative and planning personnel are inadequately experienced,with about half under 31 years of age and two-thirds having lessthan four years of experience (94% less than eight years) invocational training. The evaluation program is inadequatelystaffed in both numbers and experience (para 2.13); only twomembers currently staff the central office.

(b) SECAP has had an inadequate capital and recurrent budget (para.2.15) in which the Government about matched the receipts from thewage levy on business and industry. Increasing receipts from thewage levy in the past year were offset by the Governments' decisioncorrespondingly to reduce its contributions. Among other effects,this has resulted in the recruitment of instructors at the lowersalary scales, thus generally attracting less qualified andexperienced instructors. As SECAP expands and upgrades itstraining programs, the Government will need to provide through itsbudget a greater share of the total expenses as compared to 1981.

(c) Existing training programs are inadequate in size, type andregional distribution (para. 2.08). By 1984 SECAP's output will bemeeting only about 7% of the new industrially skilled workers whichthe National Development Agency (CONADE) has assigned as its annualquota.

(d) Inadequate facilities for both pre-service and in-serviceinstructor training. Current instructor-training facilities atthe central level consist solely of three classrooms on loan fromthe commercial training center, one overcrowded office housing thedirector and the five full-time teacher trainers, and a receptionroom-clerical office shared by two other divisions of SECAP. Thereare no library facilities, nor office space for the preparation oflecture/training materials by part-time teacher trainers, or modellaboratories for training in the demonstration technique which isso crucial in vocational training. Equipment is limited to onlythree overhead projectors and one movie projector. Consequently,

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teacher trainers do not have the privacy, or materials, requiredfor the adequate development of lectures or the counseling ofteacher-ltrainees. Neither can proficiency in the demonstrationtechnique be developed under these conditions. As a result, theteaching--learning process suffers when the instructors beginteaching. Furthermore, the estimated 900 new instructors requiredduring the 1981-90 period cannot be adequately prepared in theexisting facilities.

(e) Inadequate facilities for the development and printing ofteaching--learning aids and other printed materials required bySECAP. Planned expansion of training programs will annuallyrequire an estimated 160,000 pieces of instructional materials andlarge numbers of evaluation, followup and miscellaneous forms,instructor handbooks and repcorts. Current facilities consist of asingle olbsolete press operating in temporary quarters which willnot be available after 1984.

Development Plans

2.20 The Government has assigned high priority to vocational skillstraining within the 1980-84 Economic Development Plan and has allocated theresponsibility for fulfilling training needs by sector and area to SECAP, thediversified secondary schools, large public sector corporations and otherpublic agencies. The following table shows a comparison of the estimatedtotal average annual demand for newly skilled and upgraded workers in theoccupational categories for which SECAP is responsible, and its correspondingprojected outputs in 1984 and 1987.

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Table 2.3: SKILLED WORKER DEMAND ASSIGNED AS SECAP TRAINING QUOTA

1980-84Average Annual Demand Annual Projected SECAP Output a/

Newly NewlyOccupational Upgraded Skilled Upgraded SkilledCategory Workers Workers Workers b/ Workers

1984 1987 1984 1987

Office Personnel 3,100 - 4,800 d/ 2,300 - -

Commerce and Sales 9,700 - 2,600 6,400 - 600 c/

PersonnelAgriculture 1,000 - 3,280 d/ 780 20 40Artisans and 48,000 16,000 7,460 12,400 1,000 3,000

OperatorsOther Artisans 1,000 300 20 160 - 30Services 1,000 - 100 1,000 - 30

Total 64,000 16,300 18,260 23,040 1,020 3,700.

a/ Annual supply figures include SECAP outputs from fixed centers, mobileunits and in-plant training. The 1984 supply centers include outputsfrom existing centers and mobile units plus projected outputs from thevocational project (Loan 1157-EC) currently under implementation, whilethose for 1987 also include estimated outputs from proposed expansions.

b/ Nearly all upgrading classes are taught at night.

c/ Because of available facilities in the morning shift when commercialspaces would not be required for the commercial upgrading courses (whichmust be only in afternoons and nights), courses for new commercial andsales workers are offered in cities where the demand is not being met byother agencies.

d/ See footnote 6/, Table 2.4.

The data in the above table clearly show the serious annual shortfalls ofabout 13,000 and 36,000, respectively, in the outputs of both newly skilledindustrial workers and upgraded industrial workers, even after expansionplans to 1987 have been implemented. As a result of these projected short-falls output in its areas of responsibility, SECAP has been directed by 1990to expand its operations and training facilities for skilled workers to helpfulfill these needs. Given the magnitude of the projected shortfall in newlyskilled worker training, SECAP's expansion plans would be fully justifiedeven if the projected annual economic growth rate dropped to as low as 4% asthe Bank now projects.

2.21 Phase I of SECAP's expansion plans was initiated in the mid-1970sand is to be completed in late 1982. In late 1975, under Loan 1157-EC,assistance was provided in expanding the capacity of SECAP's vocational

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training program through: (a) the expansion of the industrial skills trainingcenter in Quito by 600 places; (b) t:he construction of a new industrialskills center of 1,245 places in Guayaquil; and (c) the purchase of twomobile training units to provide short-course training for 500 annually inrural and small town areas. Although the loan was signed in September 1975,because of government instability, financial difficulties and rapid turnoverin SECAP management, there was little progress in implementation until 1980.By the end of 1979 the staffing difficulties were overcome and positive stepsin project implementation began to be made. Currently, implementation isproceeding rapidly and completion of the project is expected during the thirdquarter of 1982. Additionally, two small training centers which were con-structed and equipped through local and bilateral funding became operationalin 1981. The administrative and implementation capabilities of SECAP, withtechnical assistance from abroad, is improving satisfactorily. If stabilityof staffing continues, as it has since 1979, and with planned specialistassistance from abroad, it is expected that SECAP can develop the capabili-ties required for the implementation of its short- and medium-term plans.

2.22 Current plans, to be implemented in two additional phases, are asfollows:

Table 2.4: SECAP DEVELOPMENT PLAN PARAMETERS

Phase I Phase II Phase III a/1968-82 1983-86 1987-90

New Training Centers 8 12 b/ 3Enr.ollments c/ 20,800 8,000 7,700

Mobile Units 6 5 21Enrollments 1,200 1,000 4,200

Instructors d/ 750 500 100Investment -(1981 prices in millions) US$21 US$7(Base costs)

a/ Preliminary only. This phase will also include anin-plant training scheme.

b/ Three of these centers, will replace existing ones, while twowill be expansions of existing centers.

c/ Includes new skills training and upgrading training.Phase I enrollments were 83% in upgrading courseswhile Phase II enrollmLents will be only 76%. PhaseII and III enrollments are additional enrollments.During the implementaltion of Phase II some of theupgrading courses currently offered are expected tobe phased out as a result of insufficient demand.

d/ Includes both full-time and part-time instructors.

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2.23 Planning for the second phase, with bilateral and Bank staffassistance, is well defined. It includes plans for increasing trainingopportunities to produce an annual output of about 2,600 new skilled workersand to upgrade the skills of about 10,300 employed workers. It would alsoexpand training opportunities in two existing locations to produce about2,700 additional outputs annually. These figures reflect training capacitycreated by Phase II investments. As some of this capacity will be used toreplace existing programs operating in inadequate rented spaces, the figuresdiffer from those of Table 2.4. Equipment would be upgraded in severaltraining centers through bilateral and multilateral assistance programs.

2.24 Another immediate priority is the development of an instructionalmaterials production system and the expansion and upgrading of the instructortraining program (para. 2.19). It is planned to integrate these two programsand a planned graphic arts training center so as to achieve a high level ofmutual reinforcement. Training requirements for new teachers for theexisting and planned training centers and in-service teachers would be asfollows:

Table 2.5: INSTRUCTOR REQUIREMENTS TO 1990 a/

Upgrading New InstructorsFields of Training Courses 1981-86 1987-90

Industry 145 380 60Business and Services 155 400 60

Total 300 780 120

a/ Based on current expansion plans and a 10% attritionrate.

2.25 More detailed planning of the third phase will be based uponrevised and more definitive data, to be prepared by CONADE, on manpowerrequirements for the period 1990-95. The major focus will be placed uponSECAP's assistance in a large-scale in-plant training scheme. As SECAP doesnot currently have the technical capacity to plan adequately the proposedtraining scheme, external assistance will be required.

2.26 SECAP realizes that institutional development is of equal priorityto the construction, furnishing and equipping of new training centers. Thecurrent administrative, planning and evalution staff is enthusiastic anddedicated, but its relative lack of experience in analysis, planning,developing, managing, and evaluation of training programs requiresremediation. It is seeking assistance in improving its medium- and long-termplanning through improved capabilities in the use of manpower data in

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planning training programs which effectively and efficiently meet the needsof business and industry. Assistance is also being sought in improving itsmobile training program and in developing large-scale in-plant trainingprograms to help meet the needs for skilled industrial workers for the middleand late 1980s. Emphasis will be placed upon improving curriculumdevelopment and iLnstructional methodology and technology.

III. THE PROJECT

Objectives

3.01 The proposed project would help SECAP to implement the second phaseof its long range development. The proposed project aims at improvingSECAP's vocationatl training programs by :

(a) increasing training capacity for skilled workers to produce anoutput of about 2,800 new skilled workers and upgrade the skills ofabout 13,400 employed workers;

(b) improving the quality of training through:

- the provision of new equipment for 2,000 students inexisting centers,

- improving and expand:Lng instructor training;

- improving and expanding the production of instructionalmaterials;

(c) providing more equity in training opportunities through a widerregional distribution of training centers and mobile trainingunits;

(d) improving the management capacity of SECAP in the areas ofplannin,g, supervision and evaluation processes.

Components and Description

3.02 The proposed project would have the following components,enrollments and outputs when fully operational in 1986-87:

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Table 3.1: PROJECT COMPONENTS, ENROLLMENTS AND OUTPUTS

No. of AnnualComponent Units Enrollments Outputs a/

A. New Facilities or Programs

Construction, furniture andequipment:

Vocational Training Centers 10 16,600 12,500Instructor Training Center b/ 1 320 320Instructional Materials Center 1 - -

B. Existing Facilities or Programs

Expansion and/or re-equipping:

Vocational Training Centers 2 3,600 2,700(expansion) c/

Vocational Training Center 1 (2,000) (1,600)(re-equipping) d/

C. Mobile Training Units e/ 5 1,000 1,000

D. Technical Assistance

a/ SECAP estimates, assuming a 20% dropout rate.b/ Includes administrative personnel also.*- Additional enrollments and outputs only.dI/ Not additional enrollments or outputs./ Annual enrollments (all short courses) equal annual outputs.

Vocational Training Centers (Proposed Outlay: US$19 million 3/, net ofcontingencies)

3.03 The project would assist in expanding existing training capacity inimportant fields and places. It would provide financing of construction,furniture and equipment for 10 new training centers, and additionalclassrooms and workshops for two existing training centers. One of these newcenters would be for graphic arts training and would be constructed as a partof the instructor training and instructional materials productioncomplex. It would provide the equipment and facilities for all large scale

3/ Includes all 10 training centers including the portion of the cost(US$0.35 million) of the graphic arts training centers which is to beconstructed as a part of the instructor training and instructionalmaterials production complex.

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printing of promotional materials, reports, etc. required by SECAP. Studenttrainees would carry out all the prinling and binding activities. Thus,student motivation would be enhanced and recurrent costs for consumablesupplies reduced. The project would also finance the replacement of obsoleteequipment and provision of additional equipment for one existing trainingcenter. Three of the new centers would replace centers currently operatingin inadequate rented facilities.

3.04 Enrollmients. As shown in the following table, the 13 trainingcenters would be distributed throughout the country with one or more centersin each of the four SECAP geographical regions, thus benefitting workers notcurrently served by SECAP. Training opportunities would be increased andwould be more equitably distributed (para. 2.02) because of this extensionof training facilities into areas not currently served.

Table 3.2: REGIONAL DISTRIBUTION OF TRAINING CENTERS

Enrollments a/ OutputsRegion and Number Before After Before Afterof Trainirng Centers Project Project Project Project

Central Retgion:One Center 3,070 2,450Two Centers 2,590 1,820

Southern Region:One Center 3,070 2,450Three Centers 4,190 3,140

Western Region:Two Centers 10,200 7,910Three Centers 10,350 7,890

Northern Region:Four Centers 8,760 6,600Seven Centers 15,090 11,230

Totals 25,100 32,220 19,410 24,080

a/ The differences between enrollments and outputs before theproject and after the proposed project are not equal to thoseshown in Table 3.1 because: (i) the project includesreplacement of three old centers (para. 3.03) having enrollmentsboth before and after the project; (ii) the three old centersbeing replaced had only short upgrading courses with an averagelength of 240 hours, and which under the project would includefull-time regular courses of' 3,600 hours in length and requiringabout 40% of the available hours per day; and (iii) during projectimplementation some of the upgrading courses currently offered areexpected to be phased out as a result of insufficient demand.

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3.05 Enrollments and outputs by major fields and programs of study inproject centers are as follows: (those completing either of the three typesof courses are counted as outputs).

Table 3.3: ENROLLMENTS AND ANNUAL OUTPUTS BY PROGRAMS OF STUDYa/

WHEN FULLY OPERATIONAL IN 1987

C/

Annual OutputsNew Skilled

AdultTotal Upgrading Short Regular

Programs of Study Enrollments b/ Courses Courses Courses Total

Industry:Auto Mechanics 1,500 880 100 110 210Bldg. Construction 1,250 750 250 --- 250Electricity 1,250 800 40 110 150Electronics-TV 700 440 70 --- 70Furniture Making 610 340 10 70 80Graphic Arts 280 160 --- 30 30Heavy Equip. Mech. 300 60 80 50 130Agric. Mechanics 180 60 --- 40 40Metal Mechanics 2,320 1,080 180 300 480Refrigeration 300 110 130 --- 130Shoe Making 230 70 --- 60 60Textiles 230 140 40 --- 40

Sub-Total , 9,150 4,890 900 770 1,670

Others:Agriculture 70 20 420 20 20Business 9,750 7,020 420 180 600Hotel & Restaurant 1,230 940 30 --- 30

Sub-Total 11,050 7,980 450 200 650

Mobile Units:Agricultural

Mechanics 200 100 100 --- 100Food Preservation 400 200 200 --- 200Electrical Systems 200 100 100 --- 100Metal Mechanics 200 100 100 --- 100

Sub-Total 1,000 500 500 --- 500

TOTAL 21,200 13,370 1,850 970 2,820

a/ For the two centers to be expanded the figures refer to additionalenrollments and outputs only.

b/ SECAP estimates, including about 35% women.

c/ SECAP estimates, assuming a 20% dropout rate.

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3.06 Teaching Programs. The curricula and course syllabi (para. 2.10)are complete for 11 of the 14 programs of study. These have been developedwith the assistance of business, industry and bilateral assistance and arecurrently in use in existing training centers. The three newprograms--refrigeration, textiles and shoe making--would be developed underthe project through specialist assistance from abroad and from localindustry. Those specialists would also prepare the equipment lists.

3.07 Teachers. When fully operal:ional in 1986-87 the project trainingcenters would require a total of about 500 new instructors of which about 270would be full-time employees of SECAP. The remaining 230 would be recruitedon an ad-hoc basis from business and industry for the upgrading courses inthe evening class programs. To facilitate the recruitment and training ofthese additional instructors, SECAP is expanding and upgrading its instructortraining program. On the basis of current experience (para. 2.11 ) therecruitment of these numbers of new instructors is not expected to be aproblem. Table 3.4 shows the staff recruitment and development plan for theyears of 1983-1986.

Table 3.4: STAFF DEVELOPMENT PLAN, 1983-1986

PresentPreparation Activity Staff a/ 1983 1984 1985 1986 Total

A. Recruitment andTraining:

New Instructors (210) 130 150 150 150 580 b/New AdministrativePersonnel 20 30 30 30 110

B. Training: UpgradingInstructors .300 300 300 300 1,200

a/ Present full-time instructors in existing training centers.

b/ Of which about 80 would be replacements for staff in existing trainingcenters and only about 270 (para. 3.07) would be full-time instructors.

Until late 1984, when the new instructor training center is expected to beoperational, the above training of new instructors will take place mainly inthe existing instructor training center. However, many of the new part-timeinstructors will receive their pre-service pedagogical training in ad-hoccourses conducted in local vocational training centers.

Mobile Training Units (Proposed Outlay: US$0.20 million, net ofcontingencies)

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3.08 The proposed project would also enable SECAP to expand its trainingprograms in small towns and rural communities where fixed centers would notbe economically viable. The five mobile training units to be financed underthe project would supplement the four units already operational, two unitsrecently donated by bilateral groups and the three units already under pro-curement. Each mobile unit would consist of a four-wheel drive light truck,with a specially designed body for transporting and storing the specializedtraining equipment with which it is equipped. Each unit would normally beoperated by a single instructor. Local physical facilities and basic equip-ment would be utilized in the training program. One of the units wouldprovide training in agricultural mechanics in support of the Government'sagricultural mechanization program. One unit would reinforce the existingprogram in metal mechanics. One unit would be used in support of the rapidlygrowing electrification program, while the two others would support Govern-ment efforts in food preservation at the home and small-scale industrylevels. These units would provide training programs of up to 140 hoursduration, utilizing local facilities to the extent practicable, for about1,000 trainees, or 200 each annually. The course syllabi for the new foodprocessing program and metal mechanics would be developed with expert assis-tance under the project, while those for farm machinery and electrificationprograms are already in existence. On the basis of current experience,recruitment and retention of the five instructors required is not expected tobe a problem. All mobile training units would be administered under SECAP'snational coordination plan being developed with bilateral assistance. Forlogistical support in terms of repair and maintenance, the mobile units wouldwork out of local training centers. However, the plan would coordinate, atthe national level, the content, location and duration of training programsin accordance with regional development plans.

Instructor Training and Instructional Materials Production Complex(Proposed outlay: US$2.74 million, net of contingencies)

3.09 SECAP's current facilities are inadequate to produce theinstructors and teaching-learning materials required for its planned andexisting training centers (para. 2.19) Consequently, the project wouldinclude financing of construction, furniture and equipment for instructortraining and instructional materials production centers. These two centerswould be included as a part of an educational complex also housing a newgraphic arts training center (para. 3.03), a joint library and an audi-torium.

3.10 Instructor Training Center. The proposed center would help SECAPto prepare the 270 full-time and the 230 part-time instructors required forthe new training centers and the 75-80 estimated annual recurrent needs ofthe existing centers (paras. 2.23 and 3.07). The center would have an annualcapacity, beginning in late 1984, of 130 full-time trainees (including admin-istrative trainees) and an equal number in in-service upgrading coursesduring the vacation season. It would also permit the training of about 70new instructors annually for other public training agencies after SECAP'sinitial training requirements are met. Table 3.5 shows the projected outputby category and year for the period of 1984 through 1989.

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Table 3.5: PROJECTED OUTPUT OF INSTRUCTOR TRAINING CENTER

New Instructors by Category

SECAP RtequirementsBusiness Other Total Instructorand Training New Upgrading

Year Industrial Services Agencies Instructors a/ Training a/

1982 b/ 60 70 - 1301983 bI 60 70 - 1301984 c/ 60 70 - 130 -1985 60 70 - 130 1301986 60 70 - 130 1301987 20 20 70 110 1301988 20 20 70 110 1301989 20 20 70 110 130

Total 360 410 210 980 650

a/ The annual outputs during 1985 and 1986 are also less than require-ments shown :Ln Table 3.4 as an annual capacity of 130 in each of thenew instructor and upgrading programs is considered the maximumcapacity required at the central training center. The remainingannual requirement of 20 new instructors (i.e. difference between130 and 150) would receive in-service training in local skills centersrather than pre-service training.

b/ Training wou:Ld be conducted in old facilities.

c/ Training wouLd be conducted in old facilities and in the new center asit becomes available in late 1984.

3.11 Because of the critical importance of the demonstration techniquein skills training programs, the center would include a small model indus-trial shop and a model business office/laboratory. The current instructortraining staff of six is well qualified in terms of training and experience.The instructor training staff would be increased by about three full-timestaff and would aLso include part-time staff available on an ad-hoc basisfrom other teacher training instituticins. To further upgrade staff competen-cies 24 staff-months of specialist assistance and 48 staff-months of short-term (six months) internships in similar institutions abroad would beincluded under the project (para. 3.14).

3.12 Instructional Materials Production Center. The production ofteaching-learning aids is currently operational only on an ad-hoc basis andthe quantity and quality of materials is minimal (para. 2.19). The proposedcenter would produce all bulk promotional and instructional printed materialsexcept for textbooks and some types of specialized laboratory manuals. Itwould include offices; audio and photographic facilities; art and

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composition rooms and a printing and binding shop to be shared with thegraphic arts training center (para. 3.03); and service and distributionfacilities. The total area required, not including shared spaces, would be190 square meters. The equipment would include a van for delivery ofinstructional materials to the training centers. Staffing would include adirector, six production technicians (also shared with the graphic artstraining center) and such support personnel as may be required. The staffand trainees of the adjacent instructor training center would work closelywith the center in the preparation of teaching-learning aids for massproduction, thus enhancing their own overall instructional skills. All largescale printing of training and promotional materials and other bulk materialswould be carried out by the students enrolled in the graphic arts trainingcenter (para. 3.03). Because of the very low labor costs and the sharing ofequipment and physical spaces, overall production costs would be cheaper thancontracting such production with private firms. The major portion of thebasic materials would be prepared by the regular subject matter specialistsof SECAP, training center instructors, and business and industry consul-tants. Based upon recruitment goals and total enrollments, the annualproduction of the center would exceed 30,000 pieces of promotional material,90,000 shop job-sheets, and 40,000 laboratory manuals. Large numbers ofevaluation and follow-up record forms, and miscellaneous items would also beproduced.

Further Development Plans

3.13 Sound development planning is critical to the medium- and long-termsuccess of SECAP. Although the short-term planning, on which the proposedproject is based, is well defined, only preliminary planning for medium- andlong-term development has been done (para. 2.21). SECAP has requested that12 staff-months of specialist assistance in planning and evalution beprovided in the proposed project to help improve and refine its planningcapability (para. 3.14). This would complement technical assistance alreadyreceived in this area through bilateral sources. During negotiations theGovernment has provided an assurance that its draft development plan to 1990would be sent to the Bank for review and comments by December 31, 1984. Theplan would include:

(a) estimates of demand for skilled workers and technicians byindustry, occupation and geographical area;

(b) SECAP's training plans, including enrollments, outputs andinstructor requirements by training program and geographicaldistribution; and

(c) capital investment requirements, recurrent cost projections and aschedule of implementation.

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Technical Assistance (Proposed outlay: US$0.93 million, net ofcontingencies)

3.14 The project's expected contribution to institutional building wouldbe of equal importance with the trained manpower outputs of the institutions(para. 2.24). In recognition of its weaknesses (para. 2.19), SECAPmanagement concurs that the major emphasis in the technical assistanceprogram should be upon institutional planning and management aspects ofvocational trainting. Consequently, a substantial technical assistancecomponent (Tablet 3.6) would be required. About 20 consultants would berecruited for a total of about 14 staff-years to assist in improving SECAP'sinstitutional capability in:

(a) planning, evaluation and institutional organization and management;(b) instructor training and teaching-learning aids development;(c) mobile and in-plant training program development and management;(d) curriculum and course syllabi development;(e) equipment use and maintenance training; and(f) middle management training program development and implementation.

Additionally, short-term internships of two to six months would be providedfor about 15 center directors, 16 inst:ructors, 15 technical specialists,eight teacher trainers, and project implementation personnel. Theseinternships would total about 16 staff-years and would take place in similarinstitutions in Latin America and selected European countries.

Table 3.6: TECHNICAL ASSISTANCE REQUIREMENTS

Specialists Months Fellowships Months

Planning and Eva:Luation 12 Center Directors(15 at 2 mo.) 30

Instructor TrainiLng Methodology 12 Technical Specialists 45(15 at 3 mo.)

Teaching-Learningr AidsDevelopment 12 -

Technical-Pedagogical Refrigeration and AirControl and Evaluation 12 Conditioning Instruc-

tors (4 at 3 mo.) 12Training of Mid-Level Personnel 12In-Plant Training (adults) 8 Textiles Instructors

(3 at 3 mo.) 9Shoe and Leather Working

Mobile Training Units 6 Instructors (2 at 3 mo.) 6Training Center Organization Food Processing andand Management 8 Instructors (3 at 4 mo.) 12

Equipment Use and Maintenanceand Industrial Security(4 at 6 mo.) 24

Innovative Instructional Teacher TrainersMethodology 6 (8 at 6 mo.) 48

Instructor Training in International ConferencesSpecific Fields (5 at 6 mo.) 30 and Seminars 10

Agroindustry InstructorTraining (2 at 65 mo.) 12

Trade Testing and Certification 12

Total 166 172

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3.15 Consultants and salaries for five of the 14 staff-years ofconsultant services are expected to be provided by bilateral agencies underexisting arrangements, and most of these same agencies would be receivinginterns for training in their own national training centers. Because of thesize and complexity of the technical assistance program, considerable skillwould be required in its management, recruitment of specialists and placementof interns in appropriate institutions abroad. Consequently, the projectadministration would include a qualified staff member to coordinate thetechnical assistance program and to work closely with the various cooperatingbilateral agencies.

3.16 The proposed technical assistance program would be in addition tobilateral and multilateral assistance already obtained or being negotiatedfor the project by SECAP. Assistance already agreed upon includes 164staff-months of specialist assistance from Spain in the areas of instructortraining and institutional planning; 36 staff months in Italy in graphic artsinstructor training; 30 staff-months from the United Kingdom in programdevelopment for the electricity/electronics trades; and 22 staff-months fromILO for developing special training schemes for marginal urban population.The total value of these specialist services are estimated at about US$1.2million equivalent. Additionally, negotiations are underway for up to 260months of specialist services from West Germany to continue the developmentof the in-plant apprenticeship program; for up to 180 months of specialistservices from Italy for the development of graphic arts training programs;and an undetermined amount to continue the cooperation with SENAI-Brazil.

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IV. PROJECT COST, FINANCING AND IMPLEMENTATION

Cost of the Project

4.01 Investment Costs. Total cost of the project (net of taxes)is estimated at S/1,003 million or a.bout US$33.4 million equivalent. Theestimated total. costs and foreign exchange components by main project itemsare summarized below:

Table 4.,1: ESTIMATED TOTAL PROJECT COST BY PROJECT COMPONENT

S/ Millions US$ Millions % ofBase-line

Local Foreign Total Local Foreign Total Cost

1. Nine Vocati.onalTrainingCenters a/ 270.43 265.34 535.77 9.01 8.84 17.85 76.3

2. Two VocationalTraining Cen-ters to beexpanded 10.25 10.83 21.08 0.34 0.36 0.70 3.0

3. One VocationalTraining Cen-ter to beequipped 0.68 13.02 13.70 0.02 0.43 0.45 2.0

4. One InstructorTraining,instructionalMaterials Pro-duction &Graphic ArtsComplex 51.10 31.02 82.12 1.70 1.04 2.74 11.7

5. Five MobileUnits 0.30 5.60 5.90 0.01 0.19 0.20 0.8

6. Experts 2.98 16.87 19.85 0.10 0.56 0.66 2.87. Fellowships 0.79 7.11 7.90 0.03 0.24 0.27 1.18. Project Admin-

istration 13.04 3.26 16.30 0.43 0.11 0.54 2.3

9. Baseline Cost 349.57 353.05 702.62 11.64 11.77 23.41 100.0

10. Cont-ingenciiesPhysical 34.95 35.31 70.26 1.15 1.19 2.34PriceIncreases 130.88 98.97 229.85 4.35 3.29 7.64Subtotal 165.83 134.28 300.11 5.50 4.48 9.98

11. TOTAL PROJECTCOST 515.40 487.33 1,002.73 17.14 16.25 33.39

a! Not includinig the Graphic Arts Tr-aining Center which is costed as apart of the Instructor Training, Instructional Materials and Graphic

Arts Complex.

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4.02 Estimated project costs by categories of expenditure are summarized

as follows:

Table 4.2: TOTAL PROJECT COST BY CATEGORY OF EXPENDITURE

% ofSI Millions US$ Millions Base-

lineLocal Foreign Total Local Foreign Total Cost

Construction a/ 258.72 80.42 339.14 8.62 2.68 11.30 48.6Professional

Fees 51.95 0.0 51.95 1.73 0.0 1.73 7.4Furniture 9.69 9.69 19.38 0.32 0.32 0.64 2.8Equipment b/ 12.40 235.70 248.10 0.41 7.86 8.27 35.6Experts 2.98 16.87 18.95 0.10 0.56 0.66 2.8Fellowships 0.79 7.11 7.90 0.03 0.24 0.27 1.1Project Admin-

istration 13.04 3.26 16.30 0.43 0.11 0.54 2.3Baseline Cost 349.52 353.05 702.62 11.64 11.77 23.41 100.0

Contingenciesa) Physical 34.95 35.31 70.26 1.15 1.19 2.34b) Price

Increase 130.88 98.97 229.85 4.35 3.29 7.64Subtotal 165.83 134.28 300.11 5.50 4.48 9.98

TOTAL PROJECTCOST 515.40 487.33 1,002.73 17.14 16.25 33.39

a/ Includes site works.b,/ Includes mobile units.

4.03 Basis of Cost Estimates. Estimated civil works costs for trainingcenters have been derived from construction contracts recently awarded bySECAP for the construction of instructional facilities in Quito, Guayaquiland Ibarra. Furniture costs for the same centers have been estimated at 8%of the cost of construction of the buildings. The construction costs of thecenter located at Guayaquil and the Instructor and Graphics Center located atQuito have been based upon estimates made by private contractors. Furniturecosts for the same centers have been estimated as 4% of the cost ofconstruction of the buildings. The cost of site works has been estimated as15% of the cost of construction of the buildings. Professional fees havebeen estimated as 15% of the cost of construction plus cost of the siteworks. Equipment costs are based on current CIF unit prices for detailed

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lists of similar programs in other countries and are adjusted upward toinclude local transportation and installation. Technical assistance costsfor experts, including salaries, are based upon an average base cost ofUS$3,975 per staff-month. Salaries of experts, with two exceptions, would beprovided by cooperating bilateral agencies under existing bilateralagreements. Costs of fellowships abroad are based upon US$1,200 perstaff-month and US$1,500 travel costs per individual.

4.04 Comparison of Unit Cost Estimates. The unit area and unit capitalcost estimates are shown in the following table:

Table 4.3: UNIT COST COMPARISON FOR VOCATIONAL TRAINING(IJS$)

Project LAC Bankwide

Construction Area/Student Place i1.Om2 9.4m2 a/ 1O.0m2

Building Cost/m2 b/ 281 320 390Construction Cost7Student Place c/ 3,100 3,610 4,570Furniture Cost/Student Place 220 220 390Equipment Cost/Student Place b/ 2,720 1,840 2,600

Total Cost/Student Place 6,040 5,670 7,220

a/ For similar projects in Argentina, El Salvador, Uruguay and Mexico.b/ The greater area and equipment costs per student place are both due

to the greater percentage of total training places devoted to theindustrial skills courses which require a greater unit area andunit costs for equipment.

c/ Includes site work costs.

4.05 Contingency Allowances. Contingency allowances have been added tothe base line cost estimates as follows:

(a) Physical contingencies: 10% for buildings (including site works),professional fees, furniture,, equipment (including mobile units),experts, fellowships and project administration; and

(b) Price contingencies: Expected price increases by category areshown in the Table 4.4 and have been estimated on base line costsplus physical contingencies beginning April 1, 1982, and finishingby June 30, 1986.

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Table 4.4: EXPECTED ANNUAL PRICE INCREASES DURING IMPLEMENTATION(in %)

1982 1983 1984 1985 1986L F L F L F L F L F

Construction a/ 16 8 16 8 16 7.5 16 7 16 6Furniture 12 8 12 8 12 7.5 12 7 12 6Equipment b/ c/ 10 10 8 8 8 8 8 8 8 8Professional Fees 12 - 12 - 12 - 12 - 12 -

Fellowships 8 8 7 7 7 7 7 7 7 7Experts 8 8 7 7 7 7 7 7 7 7Project Administration 12 8 12 7 12 7 12 7 12 7

a/ Includes site works.b/ It is assumed that price increases for equipment, to be effective, would

follow international price trends since they are to be procured largelythrough ICB (para. 4.18); i.e., local suppliers would likely not beawarded contracts if their price increases exceed internationalcompetitive levels.

c/ Price increase projections for equipment are based upon those derived bya Bank study group which makes a periodic in-depth review of priceincrease projections made by major international education equipmentsuppliers from several countries.

4.06 Prices are expected to increase during the five-year implementationperiod by a total of about 36% for civil works, 16% for professional fees,38% for furniture, 32% for equipment, 16% for experts, 22% for fellowships,and 34% for project administration.

4.07 Foreign Exchange Component. The foreign exchange component isestimated at about US$16.25 million equivalent or about 49% of total projectcosts. The calculations of the foreign exchange component are based on theassumption that: (a) all construction and related professional serviceswould be awarded to local firms; (b) all furniture would be awarded to localsuppliers; and (c) all equipment (including mobile units), except for minimalamounts, would be awarded as a result of international competitive bidding(ICB). The resulting foreign content of each category of expenditure wascalculated as 25% for construction (including site works), 50% for furniture,95% for equipment, 85% for experts, 90% for fellowships, and 20% for selectedpersonnel, travel and materials purchase for project administration.

Recurrent Cost Implications

4.08 When fully operational in 1986-87, the project would require anestimated increase in SECAP's recurrent budget of about S/80 million (US$3.2million) in constant 1981 prices. This increase would amount to about 58% of

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SECAP's 1981 recurrent budget of about S/137 million.4/ Taking into accountthe additional recurrent costs required by the training centers under Loan1157-EC, SECAP's recurrent budget for both projects would require an increaseof about 90% (or S/123 million at constant 1981 prices) over its 1981budget. This would represent only about 1.5% of the total recurrent costsfor formal education in 1980 and, in view of the high priority assigned toskilled worker training, is affordable. These increases in recurrent costsinclude those resulting from the planned recruitment of future instructorshaving higher levels of qualificatiorLs and experience than is the currentpractice. These increases also result from the planned increase in thecostlier industrial skills training program. Recurrent costs per student inthe full-time regular programs would range from an average of S/6,000 for thecommerce and services programs to S/21,000 for the industrial skills programs(average S/17,000) and are comparable to other Latin American countries.Those for adult training would range from S/6,000 to S/17,000, respectively,for the commerce and industrial programs (average S/14,000), whereas thosefor adult upgrading programs range from only S/850 to S/2,500 (averageS/1,400). The estimated recurrent costs of the project and of the totalSECAP training program for the years of 1981 to 1986 are shown in the Table4.5 below:

Table 4.5: ESTIMATED RECURRENT' COSTS OF SECAP PROGRAM BY YEARS

(S/millions, in 1981 constant prices)

Recurrent Budget Requirements ReceiptsProposed Project All SECAP from Government

Year Centers Only Centers Wage Levy Contribution

1981 - 127 140 01982 - 160 147 131983 10 180 154 261984 32 196 162 341985 64 244 170 741986 80 260 178 82

Recurrent costs of the magnitude shown in Table 4.5 would require that towardthe end of the implementation period the Government should contribute abouthalf as much as the projected contributions from the wage levy. Thisestimate is based on the expectations that industries' resistance to proposedincreases in the wage levy over its current 0.5% will continue until SECAP

4/ SECAP's actual recurrent budget in 1981 was about S/127 million.Because of the shortfall in Government contributions (para. 2.15) thefigure of S/137 million corresponds to a normal level of operatingexpenditures.

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completes its expansion and improvements. At that time it should be able todemonstrate convincingly the increased economic value of its trainingprogram. To help assure that the total SECAP training program would operatewithout sacrificing desirable quality standards, during negotiations theGovernment has provided an assurance that in addition to receipts from thewage levy (para. 2.15), it would promptly make up the difference betweenreceipts from the wage levy and SECAP's recurrent budget so as to meet fullyall SECAP's training costs including costs of the project.

Project Financing and Disbursement Plan

4.09 Financing. The total project cost of US$33.39 million would befinanced as follows:

(a) the proposed Bank loan of US$16 million would finance about 48% oftotal project costs, equivalent to about 97% of the foreign costs,as well as a front-end fee of about US$240 thousand;

(b) a Canadian supplier's credit would finance US$0.40 million,equivalent to about 2% of the foreign costs;

(c) consultant salaries in the amount of about US$0.21 million, equalto about 1% of the foreign costs, would be financed under bilateralagreements with several Latin American Governments; and

(d) the Government would finance about 51% of total costs, equivalentto about 100% of local costs.

To facilitate project execution before the proposed loan would be effectiveand to recruit long-term specialist assistance, it is recommended that up toUS$0.1 million of retroactive financing be made available for expendituresafter June 15, 1981 on designs of civil works and technical assistance.

4.10 Disbursement Plan. The proposed loan is expected to be disbursedover a period of about four and one-half years (July 1, 1982 toDecember 31, 1986) against fully documented withdrawalapplications, to cover (Annex 4):

(a) 24% of total expenditures for civil works plus professional fees;

(b) 100% of total costs for imported equipment and ex-factory costsfor locally produced goods, including installation costs whereapplicable;

(c) 85% of local expenditures for locally procured goods;

(d) 100% of total costs for mobile training units;

(e) 100% of the total expenditures for technical assistance; and

(f) 100% of the cost of project administration for selectedpersonnel.

4.11 The estimated schedule of disbursements, based on the implementa-tion schedule by calendar and IBRD fiscal years, is shown in Table 4.6:

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(US$ millions)

Accumulated UndisbursedDisbursements Disbursements Balance

CY Sem FY Sem Expenditures Amount % Amount % Amount %

1982 II 1983 I 1.2 0.4 2.6 0.4 2.6 15.6 97.51983 I II 4.0 0.2 1.3 0.6 3.9 15.4 96.2

II 1984 I 3.5 0.4 2.6 1.0 6.2 15.0 93.71984 I II 5.2 C0.7 4.4 1.7 10.6 14.3 89.4

II 1985 I 5.1 1.2 7.5 2.9 18.1 13.1 81.91985 I II 6.6 1.2 7.5 4.1 25.6 11.9 74.4

II 1986 I 5.1 4.1 25.5 8.2 51.2 7.8 48.71986 I II 1.5 4.2 26.3 12.4 77.5 3.6 22.5

II 1987 I 1.4 3.6 2.3 16.0 100.0 0.0 0.0

4.12 The estimated schedule of disbursements for the proposed project isbased upon detailed implementation schedules (para. 4.14 and Table 4.7).Theestimated disbursement period of about 4.5 years is about half as long asthat of the country-wide disbursement profile of Ecuador for the period ofFY1970-1980. It iis about two-thirds as long as that expected for the currentSECAP (Loan 1157--EC) project which is expected to be completed in mid-1982.However, the shorter implementation period is considered feasible on thebasis of: (a) a much more stable and experienced administrative andsupervisory staff in SECAP than was the situation in earlier years; (b) theexperience that SECAP's implementation personnel have gained as a result ofthe previous project; (c) project preparation will be in a more advancedstate at the time of negotiations; and (d) uniform flow of funding of SECAP'stotal training pr-ogram as a result of the Governments' firm commitment tovocational skills training in the 1980-84 Economic Development Plan (para.2.20).

Implementation, Procurement and Auditing

4.13 The existing Project Implementation Unit is being strengthened andwould be responsible for coordinating and monitoring the various projectactivities. It would become an integrated part of SECAP and would includekey staff members having experience in implementing the project under Loan1157-EC. The Unit would include a project director; coordinators (3) ofcivil works, furniture and equipment, and technical assistance; projectaccounting and financial staff (3); and such support personnel as may berequired. The Unit would be directly responsible to SECAP's executivedirector. It would coordinate its activities with the various SECAP direc-torates through a standing committee composed of the director of the ProjectUnit and the SECAP directors. During negotiations the Government hasprovided an assurance that SECAP would strengthen and maintain the projectimplementation unit to assure efficient execution of the project. To helpassure quality and avoid recruitment delays in critical positions, proceedsof the loan would be disbursed against the salaries of key personnel.

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Budgetary arrangements are being made for the additional staffing, and noproblem is expected in the recruitment of appropriate personnel.

4.14 Implementation Schedule. The proposed project is expected to beimplemented in five years. The construction, furnishing and equipping of allthe centers and the technical assistance program are scheduled to becompleted by June 30, 1986. These schedules are considered to be reasonable,within the capacity of SECAP, and would serve as the basis for monitoringproject implementation. Expected completion rates (in accumulatedpercentage) are listed in the Table 4.7. The Closing Date for the proposedloan would be December 31, 1986, to allow sufficient time for submission offinal withdrawal applications.

Table 4.7: IMPLEMENTATION SCHEDULE(accumulated percentage of implementation completed)

Calendar Year 1981 1982 1983 1984 1985 1986Semester 2 1 2 1 2 1 2 1 2 1

Item

Civil WorksSite selection and

acquisition 70 100Preliminary plans 40 90 100Final plans 40 90 100Prequalification of

contractors 100Bidding documents 100Award of contracts 40 70 90 100Construction of centers a/ 15 25 45 70 90 100 100

Furniture and EquipmentLists, specifications

and bidding docs. 60 100Award of contracts 40 80 100Installation 40 80 100

Technical AssistanceExperts 10 30 50 70 80 90 95 100Fellowships 20 30 40 50 70 90 100

a/ The expansion of the existing centers and the construction of theInstructor Training, Graphic Arts Training and Instructional MaterialsComplex would be in the first phase of construction, and would beimmediately followed by the new training centers as completed plansbecome available.

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4.15 Procurement. Civil works costs totalling US$11.3 million (basecosts) would involve 12 sites in 9 provinces. None of the individual contractcosts, averaging US$0.94 million each, would be great enough to attractforeign bidders. Ecuador's construction industry is sufficiently well-developed and capable of executing the civil works at costs competitive withinternational bidders. Consequently, civil works contracts would be awardedon the basis of local competitive bidding (LCB) under normal governmentprocedures, which are acceptable to the Bank and do not preclude foreign con-tractors from bidding. Sites for 11 of the centers have already beenacquired and the formal acquisition of the remaining site is being pro-cessed. Civil works designs are being done by consultants from the privatesector on the basis of educational and architectural worksheets agreed withthe Bank. Des:Lgns for the commerce and services training center in Guayaquilhave been preceded by a study to determine the economic feasibility of rent-ing out the ground floor for commercial enterprises.

4.16 The furniture manufacturing industry in Ecuador is also well-developed and competitive. Furniture needs in the amount of US$0.6 million(base costs) would be procured locally by the Government's central purchasingagency through standard procedures which are acceptable to the Bank.

4.17 Equipment in the amount of about US$8.3 million (base costs) wouldbe procured mainly through ICB. Preparation of equipment lists, specifi-cations and bidding documents are under preparation from similar listsprepared for the ongoing vocational training project. New lists would berequired for only three new training fields (para. 3.06). These lists anddocuments would be presented to the Bank for review and comment prior toprocurement. A condition of approval of bidding documents for the mobiletraining units would be the presentation to the Bank of a satisfactory planfor the coordination of their use. Furniture and equipment items would begrouped to the extent possible in packages to permit bulk procurement.Equipment packages in excess of US$200,000 would be procured through ICBprocedures. Packages of US$20,000 to US$200,000, up to about 15% of totalequipment costs, would be locally procured through regular governmentprocedures which are acceptable to the Bank. Small items or groups of itemsestimated to cost no more than US$20,000, not to exceed US$200,000, or itemsof a specialized nature for which ICB and LCB would not be practical, wouldbe procured through local shopping. In all cases of local procurement it isexpected that most equipment items would be foreign made. Under the aboveprocedures, it is expected that about 86% of the total value of equipmentwould be procured through ICB, 10% through LCB and 4% through local shopping.

4.18 Recommended contract awaxrds for equipment of less than US$200,000would not be referred to the Bank Eor prior review. SECAP would retain bidevaluations and contracts for random ex post review by Bank staff duringsupervision missions. For the purpose of comparing foreign and local bids,domestic manufacturers would be al:Lowed a margin of preference equal to theprevailing tariff or 15% of CIF costs of imported goods, whichever is lower.

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4.19 Auditing. The project accounts would be subjected to the sameauditing procedures as SECAP in its entirety. SECAP is subject to bothinternal and external auditing conducted by the National Controller's

Department. SECAP is legally obligated to include in its payroll threeController's employees for day-to-day internal auditing of its financialoperations. In addition, the Controller sends periodically (but not laterthan every two years) unannounced teams of specialists for external auditingof SECAP's financial accounts and operations. Both internal and externalauditors submit reports with their findings and recommmendations to the

National Controller's Department, which would be made available to the Bankfor its review and comments. During negotiations the Government has providedan assurance that the annual auditor's report and the certified financialstatements of SECAP would be forwarded to the Bank for its review andcomments within 120 days after the end of the fiscal year.

Monitoring and Evaluation

4.20 Monitoring. Efficient monitoring and careful supervision isessential for proper project implementation. To help assure greaterefficiency the project unit director would be assisted by three coordinators(para. 4.13). To facilitate construction of the new centers, privateconsulting architects would be retained for day-to-day supervision of civilworks. Under the supervision of the project coordinator of civil works,SECAP's own architects would closely monitor actual progress in both designand construction. Equipment and furniture procurement and installation wouldbe the responsiblity of the coordinator of equipment and furniture and hisstaff. The recruitment and utilization of technical consultants and theplacement of fellowships trainees abroad would be the responsibility of thecoordinator of technical assistance. Appropriate checklists for use inimplementation monitoring are being developed for each of the areas of civilworks, furniture, equipment, and technical assistance.

4.21 Evaluation. The directorate of planning and evaluation (para.2.13), with the aid of technical assistance provided under the project wouldcoordinate team efforts in the evaluation of project implementation and itsimpact on the manpower training system and on training and employmentopportunities for women. This directorate would also coordinate theactivities of individual training center supervisory personnel in theevaluation of the job performance of all regular course trainees in theon-thejob phase of training and also in the job performance of a selectednumber of graduates from each center. Evaluation studies would include, on apilot basis, a follow-up study of increased levels of job performanceresulting from upgrading training in selected skills areas. Knowledge andinsights gained from the evaluation process will be fed back into the systemfor the periodic upgrading of the curricula and course syllabi.

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V. BENEF:[TS AND RISKS

Benefits

5.01 The proposed project's expected contribution to the institutionaldevelopment of SECAP is of equal importance to improvements in the quantityand quality of skilled manpower. The planning, administrative andsupervisory capabilities of SECAP's personnel would be improved and broadenedthrough a coordinated program of specialist assistance and internshiptraining abroad (para. 3.14). These enhanced capabilities would result inmore effective skills training programs and a better trained worker forbusiness and industry. The major areas of emphasis would be on medium- andlong-term planning, institutional organization and management, curriculumand course syllabi development and evaluation, and instructor training.Improvements in the quantity and quality of trained workers would result fromthe construction, furnishing and equipping of 10 new training centers,expansion of two centers, re-equippirng of one center, provision of aninstructor training center and expanding and improving the production ofinstructional materials. Furthermore, the training centers would be widelydispersed throughout the country and would more equitably distribute trainingopportunities for the urban poor and women (para. 3.04).

5.02 The major quantifiable benefits of the project would be anadditional annua:L output (including mobile unit programs) of about 1,900skilled industrial workers and about 950 skilled commerce, agricultural andservices workers,, of which about two-thirds would be from the urban poor, and130 new technical instructors. Additionally, about 5,100 employed industrialworkers, 8,300 commerce, agricultural and services workers, and 130 existinginstructors would receive training each year, thus improving their produc-tivity. About one-third of the participants are expected to be women.

Risks

5.03 The proposed loan entails some risks in terms of implementationcapacity, instructor recruitment, and local cost financing. To minimize therisks in project implementation, SECAP would recruit additional high levelproject management staff and specialist assistance to upgrade thecapabilities of its staff in project implementation, monitoring andevaluation (paras. 3.14, 4.13, 4.20, and 4.21). There would be some riskthat shortages may develop in instructor recruitment. This will be closelymonitored during supervision. Local cost financing of the project could beaffected by unforeseen problems in the Ecuadorian economy. However, giventhe high priority that the 1980-84 economic development plan places onexpansions in vocational training (para. 2.20), the financial risk isconsidered acceptable.

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VI. AGREEMENTS REACHED AND RECOMMENDATIONS

6.01 During negotiations the Government has provided assurances that:

(a) SECAP's draft development plan to 1990 would be sent to the Bankfor review and comments by December 31, 1984 (para. 3.13);

(b) it would promptly make up the difference between receipts from thewage levy and SECAP's recurrent budget so as to meet fully allSECAP's training costs including costs of the project (para. 4.08);

(c) SECAP would strengthen and maintain the project implementation unitto assure efficient execution of the project (para. 4.13); and

(d) the annual auditor's report and the certified financial statementsof SECAP would be forwarded to the Bank for its review and commentswithin 120 days after the end of the fiscal year (para. 4.19).

6.02 Up to US$0.1 million of retroactive financing should be madeavailable for expenditures on designs of civil works and technical assistanceafter June 15, 1981 (para. 4.09).

6.03 Subject to the above conditions, the proposed project constitutes asuitable basis for a Bank loan to the Government of Ecuador of US$16 millionequivalent, with a term of 17 years including a grace period of four years.

-38a-

CDMPARA:T,I EDUCAT: ~ ION:. INDICATORS 2 ANNl~EX IPagel1of 2

JANUARY 5. 1982

* . I~~~~~~CENTRALI I i * . . . ~~~GOUT;..I. ,

IGNP4/ I lIP. 01 , . IPRI. :RECURRENT. :IEC. II :CAPITA: 11014. AS:l EDUCATION :LITER- IPRI. ICOMPLE- :STU- :UNIT COSTIPROGRESS-I SEC. : STU- :HIGHER:I AT I IX TTL. I RECURRENT - ACY I.ENROLLITION IDENTS?PRIM. ED. lION RATE IENKOLLIOENTSIENRILLII MARKETI % GNP :CENTRALIEXP ALLOCATEIIt RATE IRATID IRATESFORIPERC lAS,GNP4/FRO MPRI. IRATIS :PER IRATID

IPOP. :PRICES: DEVOTED: GOUT.I TO: 1(5OP I NET IPRI.SCH4.ITEACHI CAPITA :TO SEC. I NET :TEACH- GROSS:YRIMILLS.I (USB)' TO EDU.I EKP. IPRI. SEC. NI.IADULTS)I (%) ICVCLE(%IIER II T) 72 :ER (72

1(1) (2)1. (3) 1(4> (5) 1(6) 1(7) 1(81 1(9)1 (10) 1(11) (12) :13) :(14(

ADVANCED

AUSTRIA 74 7:5H4 7:520H4 5.30 9:9K 24Y 51Y (5' 99 98 93C 26 1071 991 511 101 6.0CANADA ~~~78 2!3.5 8.670 a.1 4.3K 25 39 23 9 10 10 2 7.6 100 92 15 22,0

GERMAN-Y F.REP.78 161.3H 10:300 4.80W S.4L. . ..;~y i~y99 , 100) 100 94 226 12.00'JAPAN 75 114.94 7,700H4 4.3 4093U 110 99 90 998 2 998 959T 206 24:695YNETHERLANDS 78 13. 99.200 8.3 13.8L 20 35 24 99 96 93 19 (7.8 99 52 13 12.6(1

NEWUZEALAND 73 3.2H 5.530H4 5.214 13.8K 39 24 29 99 99 99 26 19,4 99 67 19 4.00NOIRWAY 76 4.0OH 9,560 7.2 9.30 54 24 15 99 99 99 16 11.0 99E 62 11 11.00SWE DEN 78 8.3 10.540 8.8PW 10.IL 37 11 10 99 99 100 16F 22-7 100 79 113F DO.U.K. 78 56.0 45960 5.6 2.6K 26 39 22 99 99 100 24 12.3 100 62 17 20.6U.S.A. 78 218.5 9,770 7.1 2.9K ... 57** 18 99 98 99 220 ... 99 97 170 41.00

EUROPE

GREECE 76 9.414 4:350OH 2:6W 10.6H4 37Y 26Y 21" 86A 199X 821 31 6.2? 700 80 27 11.00IRELAND 74 3.2H4 3.810H4 5.114 . 439 419 14? 98 0108K 99A 35 ... 956 6519 19 15.47YPORTUGAL 77 9.8H141940H4 3.6W 10.7E 41 21 15 710< 82 608 19 7,8' 75* 35 12 5.00ROMANIA 75 21L.9H 1.65014 4. 1.9K 36 19 13 98 (aix ... 219 . 98 49 22 10.00SPAIN 74 37.11H3.960H4 2.4A 8.0K 499 22Y 15? 90A 115Kv ... 35A . ... 781X? 30 I7.60?

AFRICA

ALGERIA 79 18. 1.450H4 7.1W .. 34K 26K 21)5 3514 94XK 45K? 37K 11.9 52K' 3369 375 5.OOKXBENIN1 79 3.4 20 6.5 35 43 21 Ii 11 42 30 46 14.0 30 11 43 --BOTSWANA 79 0. B 720 6.7 19,3. 48 28 1 35 94X 74 32 22.0 33 201, 18 1.50

DUUI 7 . 1.80 2.L 20.60 44L 33L 22L1' 25 25K 34 35 11.0 17 21 17 0.

CAMEROON 76 8.114 190H4 3.7W 13.6K 338 43 20 .. 60X 45 52Y 11.0 20 90 2 G.9015CC.A.R. 74 1.914 27014 3.0114 . 568 19* .. .79K 25 699 21.58 18 81? 279 0.21?yCHAD 75 4.314 -15014 3.0OW 13.59 78 22 15 i 29K89Y 30 6189 ... 8 211'? 30 0.0189yCOMOROS 80 0.4 260K 6.5 25.4L 40 28 14 201 995 65 45 16.0 18 21 30 1.4CONGO(8) 74 1,514 '58014 6.0W14 : 400 32 214 50? 133X 63 63T 13.38 48 33X 22 3.40EGYPT 78 38.7 '400 5.5 11314 30 35 26 448 73 80 30? ... 882 49 17? 12.00ETHIOPIA 79 31.0 1.30 2.2 11.50.... 15.38 ... 59 .....5 ... 9 41GABON 74 0.6H4 3.370H4 5.0014 .. 250 90 110i 1009OO 25C 441 4.7' (BA 31Y 211 0.29YGAMBIA 76 .614 18014 3.3W 6.514 46 25 6 1 27 9 33 44. 92 13 2GHAN 74 (101 38014 ... 15.5K 439 22Y 2050' 60K 628 309 . 148 35K 16C 1.9GUINEA 76 5.11426014 4.3140 30 31 30 30K 64 45 31.1.' 86 13XS 26 4.00IVORfy COAsT 76 7.814H 95014 6.8W 33 46 13 9A 50 86 43 19.7 47 1719 26 1.649KENYA 79 15.3 280o 5.9W 17.98 71 15 14 45 92 74 40 15.0 41 19 28 1.0LESOTHO 79 1.3 340 4.1w 21.30 41 29 20 52 68 32. 49 8.0, 65 15 23 0.90LIBERIA 77 1.37H 46014 3.11 11.9L 23 13 26 30 51K . 54 27.9' 76 24K 16 -MADAGASCAR 77 8.314 25014 4.8WW 15:3C 53 28 19 50 90 33 44 ... 38 14 23 1.70MALAWI 79 5.9 201 2.2H4 8.7K 40 23 23 25? 59 1714 6214 10.00 50E 60 21-MALI 753 6.3H (3014 4.298 21.7K 45E 37E 181: 101 22XE ... 4BE ... SOE 61 21 ..MAURITANIA 78 1.5 270 5.5 1. 33 43 25 17 32 60 45 52.0 309 25MAURITrUS 76 0.914 9204 45.7 17.5K 50 26 6 B0O 94 99 24 19.5? 90 45 32 15MOROCCO 80 19. 740 6.3W 17.5K 36 44 20 28 72X 35 39 19.7 40 251 21 4.50NIGER 77 5.514 240H4 2.80 23.30 52 43 5 8 17 50 39 38.7 35 2 2;4NIGERIA 74 80.614 60014 4.119 9.60 239 169 425 . 491X9 ... 341 Cy . . . 101 205 0.489~e

RWANDA 80 5.0 200 3.2 20. 62 17 II 23 66 62? 40' 14. 6 2 13 0.40SENEGAL 77 5.414 36014 5.0 18.79E 46 34 20 10 32 ... 49 21.6A 20 10 21 (.5SIERRA LEONE 73 3.314 23014 3.4W" 16.014 31 36 30 15? 34K 45 32 13.7C 68. 139 21 0.53AYSOMALIA 78 3.714 18514 2.OW 8.'1H 55 10 21 50 44 .. 32 20.4 40 5 15 100SUDAN 76 17.414 34014! 4.51 5.21 48 36. 16 20 34 4 33 46.78 33 14 24 1.4SWAZILAND 78 0.514 280 6.1GW 21.40 37 33 23 65 92X 49 37 7. 66 32X 20 2.001TANZANIA 78 17.1 230 6.81N1 11.3K 43 19 10 66F 96 87 58 11.1F 9 4 2014j 0.38

TOGO 77 2.414 32014 5.5W 13.703 30 28 21 18 74 40 58 13.30 52- 44 2.00

TUNISIA 79 16.4H 1,120,9.8 16.9 41 36 20D 62 100DX 80. 39 12.8 30 30XS 30 6.00UGANDA 75 12.41 28014 3.4CY .. 40Y 400 21Y 258 539 .. 340DY . 14A 618 218 0.569UPPER VOLTA 77 5.64 16014 3.414 16.4K 31 16 32- SC 13 23 51 52.5? 19 2 25 1.ZAIRE 76 26.81 24014? 6.0W ... 49 26 25 15 861 44 421 20.08 41 13X 27 1.005xZAMBIA 80 5,7 540 5.6 11.11L 48 23 -22 44 95 80 48 12.9 19 16 22 (. 50ZIMBABWE 81 7.7 700 5.1 19.5 62 32 6 74 90 55 39 20.0 85 15 23 0.50

CENTRAL AMERICA AND THE CARIBBEAN

BANANAS 79 0.2 2.780 6.514 23.1K 36 36 11 93 99 97 24 ... 97 75 19BARBADOS 76 0. 22001 8.1H14 21.7K 43 31 16 99 106K 99 21 19.9P 99 94X 17COSTA RICA 80 2.2 1.810 8.4 38.1 40 27 33 90 93 77 33 5.5 77 40 27 14.00CUBA- 78 9.7 1.000 8.0 .. 96 98 98 22 ... 98 65 15 15.00DOMINICAN REP 72 5.114 90014 3.0 11.0F 42 2 2 5 80 17 54 4.58 63 14 24 7.D0EL. SALVAG 1R 77 4.314 64014 4.0 1P.3L 64 8 27 62 88Kx 32 39 .. 41 23 21 7,00GUATEMALA 73 6.614 93014 1.9 12.6K 55 23 14 47 64 26 35 .. 69' 8 25 4.099HAITI 80 5.0 260 3.4V 65 9 6 23 50 20 41 19.0 62F 49 27 0.8HONDURAS 78 3.4 480 4.29 17.8K 62F 195F .199 601 78 30 35 (2.89F 68 11 17 4.00JAMAICA 80 2.2 1.240K 6.5 18.40 37 43 201 901 98 98 40 2,3 95 81 22 8.00MEXICO 80 67.41.810 5.0 18B.78 46 39 15 92 98 53 44 9.5 86 56 17 10. 30NICARAGUA 78 2.5 660 3.014 16.9F 610 3D 13 13E 90L fi1 24 44 7.30 930 4L 37 7.000PANAMAI 78 1.I 1260 5. 12:7K 420 1303 13 788 97 820 320 11. 850 49 340 20.00TRINIDA S T. 77 1.114 3.10114 45 11.7K 48 32 20 95 98 91 30 -10,5'? 49 62 24

SOUTH AMERICA

A1RGENTINA 78 26.7 1,9'10 4,4 B.3K 430 31F 180i 93 89 52 17 ... 87 31 8 23.00BOLIVIA 76 5.314 51014 5.014 30.5K .. ... ... 42L 800 29C 24 .. .. 4 lOCBRAZIL 75 119.514 1.51014 2.80W 6.2K 420 20D 225i 6414 88P ... 2789.Y . 26F 19589 6.OOACHILE 75 10.714 1.470H4 3.8RY 13.014 239 SOY 505' ... 11919 ... 359 8.891A ... 48XY ... 16.559COLOMBIA 78 25.614 90014 3.3CY .. 4419 22CY I1? 78C 105KV 20 339 11.08 90 36X9 148 6.679ECUADOR 80D 8.4 1369P 6.OP .. 45 31 16 81 105 48 36 12.6A 86 47X 16 28.70GUYANA 74 0.814 56014 5.814 13.41 47 35 14 813A 92 39 33 19.80 19 62K 24 1.00PARAGUAY 79 3.0 92014 1.4C 12.6K 42Y 17Y 201 84 82. 32 28C 3.1K 75 22X 12C 7.00PERU 75 16.814 68014 4.2C 11.1L 409 229 15) 72 I11K 38 391 11.08 70 48K 23C 14.41YURUGUAY 75 2.9141790OH 2.5 9.4K 46 34 20 9 93K . 24 12.2E 83 .. 10VENEZUELA 7314.0142.8501 4.6W 189K 300 280 351 778 81 .. 33 ., ... 33 .. 12.61

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COMPARATIVE EDUCATION INDICATORS (CONTO) Annex 2.Page 2 of' 2

JANUARY 5' 1982

:CENTRAL:. . . .

OVT. : :CGNP/ C EXP. ON: S OF PUBLIC : : PRI. CRECURRENT: C CSEC

!CAPITA: CEDU. AS: EDUCATION. CLITER- F RI. CCDMPLE- CSTU- :UHIT COSTtPROGRESS-C SEC. '.STU--CICARArT': TTL. RECURRENT CACY :ENROLLITION CDENTS:FPRIM. ED.: ION RATE :ENROLLCDENTICENROLLe

:MARKET: % GNP :CENTRAL:EXP ALLOCATED: RATE :RATIO CRATE FORC.PER CAB CC GNP/CFRUM PRI. :RATIC) :PEN CRMTTOFPOP. :PRICES: DEVOTED: GV.C TO: US( OF C NET :PRI.SCH. CTEACHI CAPITA :TO SEC. CNT CEI-UU;,

YRCMILLS.: CUSS): TO EDU.C EXP. CPRI. SEC. HI.:ADULTS): (5) :CYCLEc/.)CER CC(5) C(5) :ER *

(1) C(2) C(3) C(4) C (5) C(6) C 7) C(6) C(9) C(10) C(11) C(122) CCII;) Cut4

ASIA AND OCEANIA

AFGHANISTAN 77 14.6H 160H 1.9 47 19 15 12 29X 69 37 13.8 62 eix 17 1.00BANGLADESH 79 92.9M4 90 1.ZLP 14.9C 51 17 20 220 71X ... 53 6.2P ... 14X 23 1.43CHINA 79 971.0 256 3.3 6.6 34 36 30 66 93 64 27 6.0 83 5IX 19 2.80INDIA 75 643.9N ISOH 2.6Y 1.9K....... 298 65KV ... 43A .... 29KV 2OAY 2.34EYINDONESIA 78 136.OH 340 2.4W .. 260 320 158 62 92 48 32 .. 019 17 2.00IRAN 73 35.8H4 12.2H4 3.3W 12.2H4 508 160 128 s0 77 74A 32 ... BOA 24 32 4.32CYIRAO 75 12.2H 1iB50H 6.7CW ... ...... 26C '93XY ... 22 .. .. 35KV 26C S.47YJORDAN 79 2.2 1,180H 6.6 1O.SF 19 44 16 70 97K 85 32 '7.2 9465 21 14.00KOREA 78 36.6 1,310 2.6W 16.5K 35 29 36 93 102K 94 49 6.6C 91 60 45 18.00LEBANON 72 3.OH ... 3.5W . 39 40 10 66 66 65 19 23.26 63 26U 25 23.00MALAYSIA 80 14.2 1,460M 6.7WF 15.0 39 32 13 608 96K 94 28 6.6D 64 65 25 4.20NEPAL 80 14.3 140 1.lWF 9.9 29F 20F 41F 19F 59F 2SF 31F . .. 64F I4P 24F O.6FOMAN 72 B8H 2,790H 1.7NW 5.1K 96 - - 20 24X 99 27F 25.0? .,. 0.4X 9PAKISTAN 79 78.0 270 2.0 2.5K 39 26 27 24 56X 50E 46 6.5 ... 20K 17 tOEPAPUA N.G. 75 2.9H 620H4 5.4LW 17.0K 36 16 24 32 57? 73P 31 28.0? 90 12K? 24 0.90?PHILIPP:N4ES 79 46.6 600 2.6W 15.7K 64 36*** 75 84 65 31 7.0 89 55 36 21.00SINGAPORE 74 2.3H4 3,260H 2.7YW 14.9K 39Y 39Y 17Y 72A 109KV 72A 31Y 7.4A 99A 44XY 24 7.68YSOLOMON ISL. 50 0.23 460 5.4 96.0OH 41 34 20 . 60 70 36 ... 35 18 ..SYRIA 76 7.9 96094 4.4 6.3H4 39 25 26 56 89K 80 35 7.7E 68 45X 21 12.60THAILAND 77 44.5 530 4.OVW 19.9K 55 30 15 84F 63 30 35 10.0C 70 25 2!C) 3.00TURKEY 73 43.1IH 1,250H4 5.6CYW 18.6K.85. .5. 34Y 7.2A ,, 249 27DY 5.83YYEMEN 73 5.69 41094 0.5W 10.8K 452P 3P 1 15X 1 36 19.3 75 2K 9 008YEMEN P.0.R. 60 1.9 500K 6.0 10.5 63 14 6 40? 70 53 24 22.4 81 31 16 1.80

SUMMARY FOR DEVELOPING COUNTRIES:

NUMBER OF COUNTRIES: 102 82 899 90 90 94 101 81 101 . 71 65 100 99 67

RANGE: (0.5- (1.9- (20 (6- (3- (5- (13- (13- (16- (3.1 (8-- (.4- (6- (.01-9.9 C 30.5) 96 ) 73) 50) 99) 133X) 99 C 69 ) 52.5 C 99) 95 C 45) 41.0)

QUARTILESIUPPER :5.6 17.5 49. 35 22 86 96 91 42 9 91 46 25 '11.0MEDIAN: 4.2 13.0 42 26 18 60 82 65 34 13 68 24 22 3.4LOWER C 3.0 9.9 34 21 13 25 56 33 29 20 41 11 l0 1.0

SYMBOLS: ... DATUM UNAVAILABLE A-1971 OR BEFORE N-CURRENT PRICES SOURCES:-MAGNITUDE NIL OR NEGLIGIBLE 6=1972 PGDIP----?QUESTIONABLE C=1973 Q-INCLUDING FOREIGN AID COLUMNS: 1 AND 2 WORLD BANK ATLASSINCLUDES PART-TIME STUDENTS D-1974 R-CENTRAL GOVT. ONLY OR IBDR MISSIONSESCOMBINED WITH PRIMARY E-1975 S-MINISTRY OF EDUCATION (MOE) ONLY 3 TO 14 IBRD MISSIONS**COMBINED WITH HIGHER F=1976 T=MOE AND STATE GOVT. ONLY AND/OR UNESCO

0=1977 U-EXCLUDING CENTRAL GOVT. STATISTICALN-1978 V-INCLUDING PRIVATE EXPENDITURE YEARBOOKK-1979 W-PUBLIC EXPENDITURE ONLYL-1980 K-INCLUDING OVERASED STUDENTSM-1981 .9-UNESCO SOURCES

COMPARATIVE EDUCATION DATA ARE USEFUL IN THE EVALUATION OF VARIOUS EDUCATION SYSTEMS AND ANALYSIS OF RELATIVE STAGES OF EDUCATIONALDEVELOPMENT BETWEEN VARIOUS COUNTRIES. NOWEVER,ON THE BASIS OF THE PRESENT DATA,CROSS-NATIONAL COMPARISON SHOULD BE APPROACHED WITHGREAT CAUTION, DATA PRESENTED IN THE ABOVE TABLE NAVE BEEN COLLECTED LARGELY BY THE BANK MISSIONS FROM GOVERNMENT SOURCES; THEREMAINDER ARE STAFF ESTIMATES OR DATA FROM UNESCO, EFFORTS HAVE BEEN MADE TO STANDARDIZE DEFINITIONS AND WITHIN LIMITS, TO CHECK 'THEACCURACY OF THE DATA. NEVERTHELESS,SUCH DATA ARE STILL IMPERFECT IN SEVERAL RESPECTS AND THE BANK IS WORKING TO IMPROVE THEMPROGRESSIVELY ON THE OCCASION OF ITS OPERATIONAL WORK. IN THE USE OF THESE DATA, THE FOLLOWING QUALIFICATIONS SHOULD BE BORNE INMIND:

(1)'EDUCATION' AS DEFINED IN THE TABLE INCLUDES ALL EDUCATION AND TRAINING, FORMAL AND NON-FORMAL;(2) 'PRIMARY EDUCATION REFERS TO EDUCATION AT THE FIRST LEVEL AND 'SECONDARY' EDUCATION REFERS TO ALL EDUCATION AT THE SECONDARY

LEVEL REGARDLESS OF TYPE (E.G. GENERAL, TECHNICAL, AGRICULTURAL) (3) 'LITERACY RATES'(COL.6) ARE OFTEN OBTAINED FROM COUNTRY CENSUSES. IN MANY COUNTRIES THEY ARE ONLY APPRZOXIMATIONS AND IT Is

DOUBTFUL THAT ANY UNIFORM DEFINITION OF 'LITERATE' HAS BEEN FOLLOWED CONSISTENTLY;(4)'PUBLIC EXPENDITURE IN EDUCATION' (COLS 4 AND 5) REFERS TO ALL CAPITAL AND RECURRENT EXP~ENDITURES DEVOTED TO EDUCATION BY

PUBLIC AND QUASI-PUBLIC AGENCIES;(5. ENROLLMENT RATIOS'(COLS 7, 12 AND 14) REFER TO SCHOOL YEAR AND MEAN THE PERCENTAGE OF ELIGIBLE CHILDREN ENROLLED FULL-TIME

IN THE APPROPRIATE SCHOOL, PUBLIC AND PRIVATE BY LEVEL. THEY ARE OFTEN SUBJECT TO A WIDE MARGIN OF ERROR IN THE DEVELOPINGCOUNTRIES OWING TO VARIATION IN THE ACCURACY OF BASIC DATA(I.E. AGE-SPECIFIC POPULATION AND ENROLLMENTS). ENROLLMENT FIGURESFREOUENTLY ARE HIGHER THAN THE NUMBER OF STUDENTS ACTUALLY IN SCHOOL. OVERAGED STUDENTS WHOSE INCLUSION IS INDICATED BYFOOTNOTES ALSO CAN INFLATE THE RATIOS.

ECUADOR

SECOND VOCATIONAL TRAINING PROJECT

Structure of the Education and Training System

Prm Primary Primary Educat-on Secondary Educaton Hrgh.er Education Nun Frmal Labor Fore

iRADES I 2 3 4 5 6 7 8 9 10 10 ti 12 13 14 1s 16 17 18 19 20i I i I I i iI i i t 2I 2I 2 2I4 2IRGESIlI 3-5 6 7 a 9 10 11 12 13 14 10 15 16 17 18 19 20 21 22 23 24 26

Me,dical endPost Graduate Enginaeirog Coarses

I E1UNIVERSITIES J, PROFESSIONALS

* Esamrnatron or Other Screening Process

Age relationship applies ooly when students enteri primary education at age 6 and do not repeat a class 'Short Pro .1 Co.".s

Includes 'Modern HImanit,es' (Arts or Sciencel, TECHNiCIANSi2) Industrial, Commercial, Agricutural., Howe Economics.,

Art and Teacher Training Streams 4-

Incti-tuns includod n Proposed Cvcle i2 MIDDLEProject

- - - Drop-out Route l AND

KINDERGARTEN PRIMARY CYCLE~CYCL-3.

____________________ ___ ____ ___ __-_ --- -_ __ _EDUCATIONs. _ _ 13KILED

KINDe~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N

ILLITERATES , D

WORKERS

Wold O.J ank-g4d6

-41-

ANNEX 3

ECUADORSECOND VOCATIONAL TRAINING PROJECT

Structure of SECAP

BOARD OF DIRECTORS

____ HN '7 AUDIT OFFICEFTECI-NICAL AND

ADMINISTRATIVE OfI COMlITT2EEI

L_ EXECUTIVE__ ___ ALA : _ _ DIRECTOR

r LOCAL AND1 EXPATRIATE P _

L DVISORS I

|SECFtETARY GENERAL|

|AND LEGAL COUNSEL|

DIRECTORATE |

IIBRD-SECAP1PLANNING, CONTROLI ILNG

PROJECT AND EVALUATION

' l ~~~~~~~ADMINISTRATIVEREHIATE AND FINANCIAL

DIRECTORATE ~~~~~DIRECTORATE

METHODS AND TEACHERNANA HUMANDESIGN TRAINING FICIL RESOURCES

OPERATIONSDIRECTORATE

TEACHER |ADMINISTRATION ATECA

AND COORDINATION PROJECTOF CENTERS

REGIONALCENTERS

As restructured in December 1979. WoVrld Bank - 23258

ECIJAOOlt

SECOND VOCATIONAL TRAINING PROJECT

Contineenc . Allo-ances

Euchonge Rate: USS1.00 S 30.00ptoj.ct . of

Constructiort Professional Pee. Furniture EauiroLnnt FellowEh-p Ei t.s Admini trarion Total ProLct Cost ... lin

Local Foreign Loc. Foreign Local Foreign Local Foreign Local Foreign Local Fereign Local Foreign Local Foreign Tota1 Coats

Contingenciec (as % of Uase Project Cost)

Physical 10 10 10 10 10 1 10 10 10 10 10 10 10 10

Price Increase (on base plus physical) 98 18 35 - 44 26 29 29 28 20 19 IS 34 21

Pr-jert Costs (without Contingn-ioes)

S/ Millions 258.72 80.42 51.95 9.69 9.69 12.40 235.70 0.79 7.11 2.98 16.87 13.04 3.26 349.57 353.05 702.62

t0s Millions 8.62 2.68 1.73 - 0.32 0.32 0.41 7.86 0.03 0.24 0.10 0.56 0.43 0.11 11.64 11.77 23.41 1O

Costisgencies (Aoounts)

PhysicalS/ Millioos 25.87 8.04 5.19 - 0.97 0.97 1.24 23.57 0.08 0.71 0.30 1.69 1.30 0.33 34.91 35.31 70.26

US$ Millio.. 0.86 0.27 0.17 - 0.03 0.03 0.04 0.79 0.00 0.03 0.01 0.06 0.04 0.01 1.15 1.19 2.34

Price locr....

S/Millio.s 109.14 15.92 8.57 - 4.t9 2.77 3.95 75.19 0.17 1.56 0.49 2.78 4.37 0.'5 130.88 98.97 229.85

US$ Million. 3.60 0.53 0.28 - 0.15 0.09 0.13 2.51 0.01 0.05 0.02 0.09 0.16 0.02 4.35 3.29 7.64 32.6

Slb-TotalS/ Millions 134.01 23.96 13.76 - 5.66 3.74 5.19 98.76 0.25 2.27 0.79 4.47 6.17 1.08 165.83 134.28 IOO.II

U$ smilli.os 29.46 0.80 0.45 - 0.18 0.12 0.17 3.30 0.01 0.08 0.03 0.15 0.20 0.03 5.50 4.48 9.98

Total Pr-je-t Coats (with Coooisgenclna)

S/ Millions 392.73 104.38 65.71 15.35 13.43 17.59 334.46 1.04 9.38 3.77 21.34 19.21 4.34 515.40 487.33 1.002.73

01$ Millions 13.08 3.48 2.18 - 0.50 0.44 0.58 11.16 0.04 0.32 0.13 0.71 0.63 0.14 17.14 16.25 33.39

Total Co-ting .cioa: As % of total p-oject costs - 30Z A. / oE project costs without conti.g-ncios - 43-.

EXPECTED ANNUAL PRICE INCREASES D13ElNG IMPLEMENTATION

(in 7)

1982 1983 1984 1985 1986

L F L F L F L F L F

Co.atrtctioo 16 8 16 8 16 7.5 16 7 16 6

Furniture 12 a 12 8 12 7.5 12 7 12 6

Equiponot 10 10 8 8 8 8 0 8 8 8

Prof. Fees 12 - 12 - 12 - 12 - 12 -

Fellosbhipn 0 8 7 7 7 7 7 7 7 7

Erperts 0 8 7 7 7 7 7 7 7 7

Pcoj. Admin. 12 8 12 7 12 7 12 7 12 7

-43- ANNEX 5ECUADOR

SECOND VOCATIONAL TRAINING PROJECT

Criteria for Site Selection

The following criteria for use in selection of sites have beenagreed between CO'IET and the Bank.

A. Size of Sites. The size of the site would be determined onthe basis of the:

1. Ratio of total ground area occupied by the buildings to thetotal area of the site. This ratio, as a percentage, willvary from 30% as optimum to 60% as the maximum.

2. Consideration of probability and size of future expansionwould determine the acceptable ratio within the aboverange.

3. Recreational sports fields requirements would be additionalto the above ratios.

B. Ratio of Street Frontage to Depth of Site.

1. Minimum ratio of 1:1.

2. Maximum ratio of 1:3.

C. Topographic Characteristics.

1. Maximum slope of site not greater than 10%.

2. Site would not be subject to flooding.

3. Load bearing capacity of subsoil shall not be less than0.8 kilos/cm2 and the subsoil shall not have a high expansionfactor.

D. Availability of Public Services. Available public services mustinclude:

1. Electrical service of both single and three-phase and withsufficient load capacity.

2. Potable water supply and waste water system.

3. Telephone service.

4. Acceptable access by hard-surfaced roads or all-weather gravelroads.

5. Public transportation to be made available from 6:00 a.m. to10:00 p.m. daily.

E. Location. Sites should be selected on the basis of:

1. Nearness to industrial zones in city of location.

2. Nearness to working class residential area.

-44-ANNEX 6

ECUADOR

SECOND VOCATIONAL TRAINING PROJECT

Related Documents and Data Avrailable in the Project File

A. Reports and Studies Relating to Eduication and Training

Desarrollo y Educacion en el Ecuador 1960-78, Junta Nacional dePlanificacion, Febre.ro 1979.

eEstadisticas de la Educacion 1976-:L977, Niveles Pre-Primario yPrimario, Ministerio de Educacion y Cultura

Estadisticas de la Educacion 1976-L977, Nivel Medio, Minesteriode Educacion y Cultura

Informe de Labores, 1979-1980, SECAIPInfraestructura Fisica y Etapas para Su Desarrolo, SECAP,Agosto 1980. e

Plan Ecuatoriano para el Desarrollo de los Recursos HumanosCapitulos III, IV, V, VI, Consejo Nacional de Desarrollo, Mayo 1980

Estadisticas''del'Trabajo, Indices cde Empleo y Remuneraciones,Octubre- Diciembre 1977.

Encuesta de Hogares, Instituto Nacional de Estadistica y Censos, 1977

Proyecciones de la Poblacion Economnicamente Activa Por Areas,Grupos de Edad, Sexo y Ramas de Actividad 1974-1986, InstitutoNacional de Estadisticos y Censos

B. Reports and Studies Relating to the Project

Programa de Desarollo de la Formacion Professional, Tomo I, SECAPAbril 1981

Programa de Desarollo de la Formacion Profesional, Tomo II, SECAP,Abril 1981

Reglamento Organico Funcional de los Centros de For'macion Profesionaldel SECAP, Enero 1981

Plan Operativo Para El Ano 1981, SECAP

Estructura TecrLico - Funcional del :bECAP, Enero 1980

Manual de Clasificacion de Puestos le SECAP, Junio 1979

Presupuesto Ordinario Para 1981, SECAP, Junio 1980

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ECUADOR

Porovijo al unga SECOND VOCATIONAL TRAINING PROJECT

4ip apa noc (14 VOCATIONAL TRAINING CENTERSL ~ ~ ~ ~ ~ anTos PuoA INSTRUCTOR TRAINING, GRAPHIC ARTS

ince rmnd~~~~~~~~~ Puyo ~~~ ~AND INSTRUCTIONAL MATERIALS COMPLEX

a \O~~~~~ Chi Riob mba ® ~~~~~~~~~ NATIONAL CAPITAL

Manglarollo ~~ ~~~~~~~~~~~~~~~~~~0 PROVINCIAL CAPITALSIA glara 0 0~~~~~~~~~~~~~~~~~ TOWNS

MAIN ROADS zo00

G uoayoqil - - SECONDARY ROADS

-------'-+RAILWAYS

RIVERS

PROVINCIAL BOUNDARIES

jal ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - -INTERNATIONAL BOUNDARIES

Gulf )~~~~~~~~~~~~I. KILOMETERS

0 20 60 ~~00 140 180 200

0IES 10 ~ 0 -40 1i60

Th ez ~~~~~~~~~~~~~~~~~~~~~~~~~This map has hoesn prepared hy the World Bakhs staff essl-wiely for thesneieotX 09Dm ~~~~~~~~~~~~of the reders of the report to wrhich it is attached. The denominations -osd and the

PlEas~~~~~~~~~~~~~~~b.dresso ,ti ,pd ntipy ntepr o h odBn n taffiliates, anyjudgmet on the legal states fany territory or any endorseent oacceptance of sas h hbndarie-

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