Page  1
PROJECT INFORMATION DOCUMENT (PID) 
APPRAISAL STAGE 
Report No.:  AB2244 
Project Name 
EDUCATION QUALITY AND SECONDARY EDUCATION 
Region 
LATIN AMERICA AND CARIBBEAN 
Sector 
Secondary education (55%);Primary education (25%), Education 
management (20%) 
Project ID 
P089898 
Borrower(s) 
REPUBLIC OF GUATEMALA 
Implementing Agency 
Ministry of Education  
Environment Category 
[
]
A
[
]
B
[
x]C   [ ] FI   [ ] TBD (to be determined) 
Date PID Prepared 
July 12, 2006 (Rev.) 
Date of Appraisal 
Authorization 
 
July 24-28, 2006 
Date of Board Approval 
October 31, 2006 
1. 
Country and sector issues 
General Sector Diagnosis:
 The equitable development of the human capital of its 12.6 million 
inhabitants is key to economic growth and poverty reduction in Guatemala.  The countr
y’s 
growth strategies—a free trade agreement with the US, regional integration proposals, and 
national and international competitiveness schemes—aim at increasing growth while reducing 
the country’s broad inequalities. Guatemala currently has a Gini coefficient
1
of 56, which 
implies that the poorest quintile of the population earns 2.4 percent of national income, while the 
highest quintile earns 70 percent. In this context of high inequality, 
education is key to 
increasing equality, reducing poverty, and developing competencies and knowledge conducive 
to economic growth.
 
In the last decade, significant advances were made in the primary education sector. Since the 
Peace Accords of 1996, all Government administrations have supported the expansion of 
primary school coverage, intercultural and bilingual education, and the modernization and 
decentralization of education management. Public education expenditures increased at a pace of 
9% annually between 1996 to 2004, and the share of public educational expenditures in GDP 
increased from 1.6 percent in 1996 to 2.7 percent in 2005. Achievements to date include: (i) 
significant primary education coverage (93.5% net
2
and 113% gross
3
enrollment rates in 2005); 
(ii) standards-based curricular reforms in primary education, and national learning assessments 
in grades 3, 6 and 9; (iii) bilingual education programs for grades 1-3; (iv) focused support for 
rural primary schools through multi-grade schooling in isolated and dispersed communities; and 
1
The 
Gini coefficient
 is a measure of inequality; often used to measure 
income
inequality. Here it is expressed as 
an Index
—a  
number
between 0 and 1 multiplied by 100, where 0 corresponds to perfect equality (i.e. everyone has 
the same income) and 1 corresponds to perfect inequality (i.e. one person has all the income, while everyone else 
has zero income). 
2
Defined as:    Number of pupils age 7-12 enrolled in 1-6
th
 grade in January of 2005 
Number of children age  7-12 (as estimated by INE) for 2005
 
3
Defined as:    Number of pupils of all ages enrolled in 1-6
th
 grade in January of 2005
Number of children age  7-12 (as estimated by INE) for 2005
 
Page  2
2
(v) decentralized education management, with increased decision making at the school level 
(most primary schools in Guatemala have some form of school government and have received 
public funds for local investments).  
 
Secondary Education Lag.
 For Guatemala’s growth agenda, expanding quality secondary 
education increases the country’s competitiveness and reduces disparities in household incomes. 
While the last decade has seen significant improvements in primary education coverage, 
progress in secondary education has not followed at 
the same pace. Guatemala’s education 
indicators for youth are quite alarming. In 2005, net
4
and gross
5
enrollment rates in lower 
secondary (Grades 7 through 9) stood at 33 and 55 percent respectively. (Cf. Table A.1). 
 
Table A.1:
 Primary and Lower Secondary Education Enrollment Rates in 2005 
 
Total
Boys
Girls
Indigen
ous ***
Non-indigenous 
***
Primary (Grades 1-6) 
 
Gross Enrollment Rate(=2/1) 
113% 
117% 
108.8% 
102.6% 
120% 
Net Enrollment Rate (=4/1) 
93.5% 
95.5% 
91.5% 
  
  
Lower Secondary (Grades 7-9) 
  
  
  
  
  
Gross Enrollment Rate(=7/6) 
55% 
59.3% 
51% 
26% 
74% 
Net Enrollment Rate (=9/6) 
33% 
34.5% 
31.8% 
  
  
Source: MINEDUC Enrollment Census 2005 
 
An average 20-year old in Guatemala has only 4.3 years of education. Nationwide, 1.2 million 
youth between the ages of 13 and 18 are out-of-school. 
In addition, the gap in educational 
achievement between the indigenous and non-indigenous youth, and between rural and urban 
youth is significant:
 for non-indigenous populations, the GER in lower secondary was 74 
percent, while for indigenous populations, it was only 26 percent. This large gap reflects, in part, 
the low supply of lower secondary education in rural areas, where only 22 percent is rural. 
Recent studies
6
have determined that in Guatemala an average worker would require at least 9 
years of education to move above the poverty line (independently of years of work experience).   
 
For the relative few students that continue their studies after primary education, learning in 
lower secondary education is low. In 2005, a Standardized test was applied in a significant 
proportion of 9
th
 grade classes. The data showed that the learning level is very deficient overall, 
and especially in rural secondary education models.  Thus, expansion of secondary education 
must initiate with improving the pedagogical quality of existing programs. 
 
Low efficiency in primary education as a bottleneck for expanding secondary: 
Guatemala 
seeks to improve its Gross Enrollment Rate in lower secondary education from 55 to 71% by 
2015. However, the country has defined that increased school places in the secondary level alone 
will not achieve this goal. For example, in 2004, the number of students that enrolled in 7
th
 grade 
4
Defined as:    Number of pupils age 13-14-15 enrolled in 7-8-9
th
 grade in January 2005
Number of youth age  13-14-15 (as estimated by INE) for year 2005
 
5
Defined as:    Number of pupils of all ages in 7-8-9
th
 grade in January of 2005
Number of youth age  13-14-15 (as estimated by INE) for year 2005
 
6
Emilio Porta, Academy for Education Development, AED; 2005. 
Page  3
3
(199,000)
7
was larger than the number of students who graduated from 6
th
 grade in 2003 
(192,300).  The net completion rate for 6
th
 grade
8
was only 22%, and the gross rate (counting 
over-age students) was 70% (2005 figure). (Cf. Table A.2) Thus, it appears that low completion 
from 6
th
 grade is as much a limiting factor to secondary education demand, as is the supply of 
lower secondary spaces. 
 
Table A.2:
 Primary and Secondary Completion Rates 
 
Percentage
Primary net completion rate = 6
th
 grade net enrollment rate (2004) 
22.67%
Primary gross completion rate (2005) 
72.30%
Grade 9 gross completion rate (2005) 
45.80%
Source: Calculations based on MINEDUC data. For calculations, cfr. Annex 1.
 
The repetition rates are especially high in the early years of primary; first grade seems to be a 
major stumbling block with 25% repeating this grade in 2005. While total dropout rates
9
are 
initially below 10 percent a year, over 45 percent of children enrolled in Grade 5 in 2005 were 
not longer enrolled in January 2006.  This is the reason why, by the time a cohort reaches 12 
years of age, only 22 out of 100 children complete on time primary education. (cf. Figure A.1)   
 
Figure A.1:
 Repetition and total dropout rates, Grades 1- 9, 2004 cohort  
 
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
12
3
45
67
8
9
Grade cohort in 2004
%
o
f
c
h
i
l
d
r
e
n
f
r
o
m
2
0
0
4
c
o
h
o
r
t
%
of children who had dropped out by
January 2005
%
of children repeating the same grade in
January 2005
Source: Computed with MINEDUC data from 2004 and 2005 
 
High repetition and dropout rates affect the education system in several ways: First, the system 
fails to graduate students even though they have invested time and effort in school; second, the 
system uses limited financial resources to provide the same level of education repeated times to 
students who should have graduated and be enrolled at secondary education level. In addition, 
7
Includes 6th grade graduates who transition to lower secondary education after some time outside of the education 
system.
 
8
Defined as:    Number of pupils age 12 enrolled in 6
th
 grade in January of 2004 
Number of children age 12 (as estimated by INE) for 2004
 
9
Note that this is different from the dropout rates reported by the Ministry Of Education, which consist of intra-year 
dropouts, i.e. the difference in enrollments between September and January of a school year, divided by the January 
enrollment. What is reported here is the total dropout rate, i.e.  
(new enrollments grade g+1 in Jan.2005-total enrollment grade g in Jan.2004)/total enrollment grade g in Jan.2004 
Page  4
4
with increased repetition, students reach the subsequent grade with an age lag and with increased 
opportunity costs of learning, which contribute to dropping out without completing primary 
education.  
 
Finally, the large difference between Gross and Net Enrollment Rates in each primary education 
grade (Figure A.2) hint at a large access capacity and low efficiency in this education level.
10
 
This may confirm that Guatemala has been successful in providing universal coverage in 
primary education, but it needs to focus now on guaranteeing universal primary education 
completion (grade 6) and transition to lower secondary education (grades 7-9).   
 
Figure A.2
:
Gross and Net Enrollment Rates by Grade in 2004, National Level 
 
172%
130%
112%
9
9%
84%
71%
64%
49%
44%
74%
44%
34%
30%
25%
22%
18%
15%
14%
0%
20%
40%
60%
80%
100%
120%
1
40%
160%
1
80%
2
00%
12
3
45
6
78
9
Grade
Grade GER
Grade NER
Source: Computed with MINEDUC data
 
Overage children in the primary education cycle: 
While it is not possible to compute exactly 
the specific drop-out rates for overage children, a number of elements suggest that being overage 
in itself puts children at high risk of dropping out of school permanently. For example, the 2005 
Social Assessment identifies that psychological elements linked to being overage in primary 
schools are a main reason for dropping out. In addition, parents and teachers see less of a 
priority in keeping older children in school. Education statistics also show that school enrollment 
rates drop pronouncedly between the ages of 13 and 16. Paradoxically, most of the dropouts do 
not happen in secondary school but in primary school. Because of high repetition rates, nearly 
40 percent of 13 to 15 year olds in 2005 (approximately 355,000) were still in primary school 
and 12% more may have dropped out after first grade (assumption based on 12% of 13-15 year 
old youth who could not read or write in 2005).  In comparison, only 30% of this age group 
(280,000) where enrolled in grades 7-9
th
.
10
 For example, in 2004, the Gross Enrollment Rate in 1
st
 grade was 172 percent, but efficiency was very low: of 
each 100 children enrolled in first grade, (i) 43 percent had the appropriate age; (ii) 24 percent were 1 year overage, 
(iii) 25 percent were two or more years overage, and (iv) 8 percent were younger than 7 years (under-age). 
Page  5
5
Integrated Primary Education Efficiency and Lower Secondary Education Expansion 
Efforts: 
In view of the bottlenecks in primary school, expanding access to lower secondary 
education goes beyond increasing the number of school places.  There is also an urgent need to 
address the current generation of overage youth in primary schools and to prevent the over-age 
phenomenon to occur in upcoming cohorts of children.  An integrated strategy must address the 
quality and efficiency of primary education
11
 and the quality and expansion of the supply of 
lower secondary education. 
 
Lower secondary at this time is concentrated in urban areas, and rural and indigenous areas are 
underserved. In addition, lower secondary modalities catering to rural and indigenous areas tend 
to be of lesser quality and need to be strengthened. Although lower secondary education sector is 
relatively small, Guatemala has benefited from a broad spectrum of programs already 
implemented in the country
—both flexible modalities (in terms of calendar, tutorial, semi-
distance, and center-community combinations) and traditional center-based modalities.  
 
Teacher Training: 
The inter-dependence between Primary and Secondary Education access, 
efficiency and quality is also related to the quality of teachers.  In Guatemala, Teachers are 
formed at the secondary education level only, in grades 10 through 12. This secondary education 
program for primary education teachers has not been updated in 22 years. In-service testing of 
teachers in subject-area knowledge has shown serious issues of low quality. Primary education 
teachers leave secondary education ill-prepared to teach new cohorts of primary education 
students. Moreover, given the limited amount of opportunities in technical secondary education 
tracks, the Teacher Training track is over-demanded by students who seek employment after 
secondary school.  Strikingly, the primary education sector can only absorb 5% of newly 
graduated teachers each year. Nonetheless, the teacher training track currently has no selection 
or vocational testing mechanisms, to help it recruit and train the best candidates for the teaching 
profession.  
 
International comparison: 
Based on the latter available Central American comparison 
information (2003), Guatemalan Primary Completion Rates and Secondary Education Gross 
Enrollment Rates are behind low-income neighbors such as Honduras and Nicaragua. Today, 
Guatemala is not on-track to meet the Education for All (EFA) goals.
12
 (cf. Table A.3)
 
11
 
To this end, Guatemala has proposed an integrated strategy to increase the quality of primary schools and expand 
completion by reducing (i) late entry, (ii) repetition, and (iii) temporary drop-out from school
—which contribute to 
students being over-age and dropping out before finalizing 6
th
 grade. In the short-term, a special program for 
overage youth in primary schools will tend to this population’s specific learning and psycho-social needs, and 
motivate them to complete 6
th
 grade and continue on to lower secondary education.
 
12
 By 2015, EFA Goals
 include universal completion of 6th grade, and completion of the full basic education cycle 
till 9
th
 grade.
 
Page  6
6
Table A.3:
 Primary Education Completion Rates (PCR) and Secondary Education Gross 
Enrollment Rates (GER) In Central America and with Countries of Similar Per Capita Income in 
South America (2003) 
 
Central America 
PCR 
Secondary Education 
(grades 7-12) 
GER 
Costa Rica 
89 
66 
El Salvador 
75 
61 
Nicaragua 69 
59 
Honduras 69 
48 
Guatemala 62 
33 
Countries with Similar p/c Income 
 
 
Peru 97 
81 
Ecuador 96 
57 
Colombia 85 
70 
Source: E. Di Gropello, Central America Education Strategy Paper. 
 
The Country’s Objectives: 
The Guatemalan objective is to increase the competitiveness and 
socio-economic equity of its population. In the education sector, the goals are (i) to reach 
Primary Completion Rates (PCR) of 85%; and (iii) to increase lower secondary GER from 55% 
to 71%. 
13
 
These objectives are consistent with Guatemala’s high private returns on additional 
years of education, and high returns on completion of primary and lower secondary. 
 
The Country’s Strategies: 
Primary (6
th
 grade) completion and 7
th
 to 9
th
 grade enrollment must 
be supported in an integrated manner. Secondary Education access is dependent on improved 
efficiency and completion in, and transition from, Primary Education. Therefore, the strategic 
choice of the Government of Guatemala is to start reforms at the secondary education level, but 
to continue to support primary education, complementing long-term general quality 
improvements (such as improving the quality of pre-school and the first cycle, grades 1st-3
rd
,
and support teacher professional development) with short-term efficiency solutions (such as 
accelerated learning and promotion for over-age students
14
).  
 
The country has already developed integrated curricula for grades 1-9, so as to guarantee 
appropriate standards, methodologies and evaluations. It will also pilot an integrated basic 
education cycle (i.e. an integration of primary and lower secondary cycles) in the same school, 
and evaluate its impact on completion and transition rates. In Secondary Education, the objective 
is to improve the quality of, and expand access to, lower secondary education (grades 7-9) for 
low income, indigenous and rural populations. To guarantee sustainability and take advantage of 
existing Government and donor efforts in the sector, the strategic choice is to improve, and then 
to expand, existing lower secondary education rural modalities.  
 
Targeting Strategy: 
Guatemala is a multicultural and multilingual country with diverse 
educational needs. As the needs vary, the solutions are not uniform. Regionally, educational 
13
 Based on Projections by CIEN and World Bank, as part of analysis for Public Expenditure Review of Guatemala. 
14
 Experiences in El Salvador, Colombia and Brazil on primary education reforms with interventions for over-age 
students have been considered and contextualized for the Guatemalan sector needs. 
Page  7
7
gaps and inequities at both the primary and the 
secondary level are substantial. The aim of the 
Project is to invest in Secondary Education (and 
related Primary Education interventions) where the 
needs are greatest. This implies guaranteeing 
equitable education improvements for low income 
groups, for the rural sector and for Indigenous 
communities. Given the limited resources available, 
the Government will initiate investments using clear 
and equitable criteria. Three criteria will be used to 
prioritize Project investments and other 
contextualized support: (i) regional education demand-supply imbalances, (ii) traditional 
exclusion by income or ethnicity, and (iii) lags in educational efficiency, as represented by an 
Index of Educational Efficiency (IEE). 
 
Index of Education Efficiency (IEE) across Regions
:
Education efficiency varies across 
regions on a number of different dimensions. Given that no single measure captures education 
efficiency, it was deemed appropriate to construct an Index of Education Efficiency (IEE) using 
indicators in a number of its key dimensions. This indicator summarizes internal efficiency in 
Basic Education (primary and lower secondary), and allows targeting project interventions 
according to objective and measurable criteria.  
 
Figure A.3: 
Educational Micro-Regions by IEE 
 
The key dimensions of education efficiency aggregated in the index are: (i) the percentage of 
sixth graders which are over-age; (ii) net enrollment rate in ninth grade; and (iii) a proxy ninth 
grade completion rate.
15
 The IEE was computed for 237 micro-regions.
16
 Based on the index, the 
micro-
regions were then ranked in 3 different groups of IEE: “low” (group 1), “medium” (group 
2) and “high” (group 3) education outcomes.  The Project will especially target 10 Departments 
with most of the micro-regions in the low IEE group (IEE); population in these Departments is 
up to 60% indigenous.  Figure A.3, above, maps the micro-regions according to their IEE.   
 
2. 
 Rationale for Bank involvement 
 
Guatemala considers the Bank a key ally in its education development strategies.  The 2005-
2008 Country Assistance Strategy (CAS) sets important education sector priorities as 
contribution to human development, inclusion, and equitable economic growth.  The CAS 
15
 
From the current national statistics, it is not possible to compute ninth grade completion rates in an exact way. 
However, given the importance of capturing ninth grade completion in the context of a secondary school project, it 
was decided to compute a proxy indicator as follows: using the dropout rates and repetition rates in each grade, we 
compute an approximate measure of completion for each individual grade. These grade-level measures are then 
compounded into a lower secondary approximate measure of completion.
 
16
 To compute the IEE, the country was first divided into 237 educational micro-regions. To ensure statistical 
representativity, based on population numbers, a micro-region represents two or more small municipalities or 
disaggregates a large municipality. 
Page  8
8
proposes both analytical and investment support.  On-going analytical work has contributed to 
better understanding of the dynamics and needs of the Guatemala education sector, including 
secondary education reforms.  More recently, investment support has focused on grades 1-6 
through the on-going 
Universalization of Basic Education Project
.
17
 
The proposed Education 
Quality and Secondary Education Expansion Project support the next education level: grades 7-
9.  
 
Internationally, the Bank is sharing technical and analytical lessons focused on the transition 
between primary and lower secondary, which is seen as value added by the Government of 
Guatemala.  Also, the Bank’s education investment support contributes to increase education 
opportunities to poor, rural and/or indigenous youth.  T
he
Bank’s extensive research and 
analytical work—on education quality, community participation, and regional strategies—has 
supported in-country policy dialogue.  The Bank is an active member of the Inter-Donor 
Network in Guatemala, which is harmonizing efforts to support education sector diagnosis, 
specialized studies, and planning.   Bank involvement in this Project is an integral part of a 
comprehensive strategy in the Guatemala education sector. 
 
3. 
Higher level objectives to which the project contributes 
 
The Project contributes to two higher level objectives in Guatemala:  (i) the Long-Term 
Education goals of the Country—evolved from the original Peace Agreement of 1996—and (ii) 
the education development objectives of the Country-wide Social Development Plan 
“GUATESOLIDARIA”.  
 
The following table summarizes these long term education objectives: 
 
17
 
This project focuses on rural primary education coverage and quality.  Expansion is supported through a 
community-based management model, PRONADE.  Quality of teaching and learning is benefited by investment in 
multigrade and bilingual education.  It closes on December 31
st
,
2007.   
 
Page  9
9
Table A-5: Long-Term Education Objectives Pertinent to the Proposed Project 
Education Access and Coverage 
Education Quality And Pertinence 
·
Universal Access of All 
School-Age Population 
from Pre-school to Lower 
Secondary Education (9th 
Grade) 
 
·
Design and Contextualize the Curricula, including aspects of 
identity and right of indigenous people. 
·
Develop pertinent education and training for school-to-work 
transition. 
·
Professional preparation and training of teachers and education 
managers 
Education Resources 
Community Participation and Human Rights 
·
Increased Public Financing 
to Basic Education 
·
Support demand-base 
programs, such as 
scholarships, conditioned 
cash-transfers and other 
study support packages 
 
·
Increased participation of parents in education seeking integration 
between the community and schools. 
·
Improved promotion and training for social participation of 
communities and grass-roots organizations. 
·
Implemented education programs in democracy, civics and peace 
values. 
·
Integrate a Consultation Commission as part of the education 
reform process. 
·
Education Development Promoters institutionalized to guarantee 
the respect for educational content pertinent to indigenous and 
traditionally excluded communities. 
GUATESOLIDARIA Education Objectives 
2006
 
·
Universal primary education, while increasing preschool and secondary education coverage; 
·
Improved quality of teaching and learning;  
·
A
reformed secondary education to strengthen the nexus among education, productivity and 
competitiveness;  
·
Inter-cultural, civic, and self and inter-personal development; and  
·
A
reformed and modernized education management conducive to quality and results.   
PROJECT DESCRIPTION 
 
4. Lending 
instrument 
A
Specific Investment Loan (SIL) was requested by the Government of Guatemala to provide 
targeted financing to specific investments in its Education Development Program, while 
increasing the fiduciary, monitoring and evaluation capacity of the Ministry of Education.  
 
Page  10
10
5. 
Project development objective and key indicators 
The Objective of the Education Quality and Secondary Education Project is to improve primary 
education completion rates for over-age students, and increase access to a quality lower 
secondary education, especially for indigenous and low income non-indigenous students.
 
The success of the project will be measured by the following Project Development Outcome 
(PDO) Indicators (the Impact Evaluation will compare 2006 baseline with the 2012 project 
impact data collection on beneficiary and control regions, schools and students):  
 
·
9th Grade Gross Completion Rates (nationally and in targeted regions);  
·
Gross Enrollment rate in lower secondary education, grades 7-9 (nationally and in 
targeted regions); 
·
Increased intake (access) in grade 7
—in modalities supported by the Project; 
·
Proportion of over-age students (13-15 year old) who complete primary education (in 
Integrated Basic Education Centers); and 
·
6
th
 grade gross completion rate (nationally and in targeted regions). 
 
6. Project 
components
18
 
The proposed Project will support three components with inter-dependent objectives: (i) Primary 
Education Completion and Quality, (ii) Lower Secondary Expansion and Quality, and (iii) 
School-Based Management focused on Education Quality.
 
Component 1. Primary Education Completion and Quality (US$ 9.47 Million): 
This 
component would support an integrated strategy for Basic Education (primary and lower 
secondary cycles) to increase primary education retention and completion of over-age students, 
and promote their continued education at the lower secondary education level.  To contribute to 
long-term quality improvements in primary education, the component will also support proposed 
reforms to the Pre-Service Teacher Training system.  The two strategic sub-components follow: 
 
Subcomponent A.1.  Integrated Basic Education Centers (US$ 3.67 Million). 
 
Sector context and diagnostic summary
:
Although Guatemala has significantly improved 
primary education coverage, it only graduates on-time 22% of enrolled cohorts.  The low 
efficiency of the system responds to (i) late entry, (ii) high repetition (especially in the lower 
grades) and (iii) high dropout rates (especially after 3
rd
 grade).  As a result, over 30% of the 
primary education enrollment (more than 300,000 students) are at least two years overage.  
These students are at-risk of dropping out before completing primary education—not only 
because of the additional effort, time and resources needed—but also because the pedagogical 
and psychosocial environment in primary schools is no longer pertinent for these adolescents 
and youth.  
 
18
 If not otherwise noted, project investments will be concentrated in 10 targeted regional departments of 
Guatemala.  These departments were identified based on an analysis of education efficiency and outcomes across 
regions in Guatemala; these are those that show the lowest education outcomes.   Targeted departments have up to 
70% indigenous populations; albeit there selection not only included ethnicity.  The investments and outcome 
indicators for this project are presented generally for the 10 regions (and nationally, in the case of gross enrollment 
and completion rates, which the project contributes to).   For specific disagregation of targets and Project budgets 
earmarked for indigenous populations, please consult Annex 10 of the PAD. 
Page  11
11
 
Strategic Objective:
 
Support over-age students (11-15 year old) in primary schools finalize 
their primary education cycle and continue on to lower secondary schooling.  The integrated 
Basic Education strategy
—unifying the primary and lower secondary education levels—will 
include pertinent pedagogical programs and an appropriate psycho-social environment for the 
over-age student (at risk of dropping out).   
 
Implementation Strategy:
 
The component will provide targeted (based on IIE criteria) schools 
with: (i) a quality accelerated program for students with 3 or more years of overage, (ii) a 
flexible lower secondary education program—to be taught in the same school
19
;
(iii) training and 
support for the school principal and leadership; and (iv) a small financial incentive to prepare a 
school improvement plan, and to support school-defined activities.
20
 
In turn, the school 
“converted” into an Integrated Basic Education Center will commit to: (i) strengthen its teacher-
parent school committee, (ii) prepare its School Improvement Plan with strategies to guarantee 
on-time entry of new students to pre-school and/or first grade, and (iii) strengthen reading and 
writing abilities of students enrolled in the first and second grades.   This innovative program—
to be initiated in 350 rural schools in Guatemala—will strengthen both long-term and short-term 
quality improvement to primary education and completion of students at this level. 
 
As for the accelerated over-age program, it will be targeted to youth at risk of dropping out of 
the primary education level; it will include (i) student-centered pedagogical strategies; (ii) 
academic and applied learning, (iii) flexible promotion to guarantee school retention and 
secondary education transition; and (iv) on-going student counseling linked to the integrated 
primary-lower secondary education strategy.  Thus, the accelerated program—albeit a transitory 
intervention—will provide incentives for long-term improvement needs in primary schools 
(supported and financed by MINEDUC and other donors): (i) inclusion of pre-school programs; 
(ii) reading and writing reinforcement in first grade, including support in mother languages in 
Indigenous Regions; and (iii) school planning and evaluation improvements.    
Subcomponent A.2.  Pre-Service Teacher Training Development (US$ 5.80 Million) 
 
Sector context and diagnostic summary
:
The Ministry of Education has begun a reform of the 
Pre-service Training Program for Primary Education Teachers. The reform includes: (i) 
curricular improvements (both in terms of content specialization and pedagogical process); (ii) a 
structural reform to move teacher preparation from the secondary level (grades 10-12) to a post-
secondary level (at least one additional year); and (iii) inclusion of admission and graduation 
exams for teach tracks.  This sub-component will develop and strengthen five regional teacher 
training centers (called CEFORMA, 
Centro de Formación de Maestros
).    
 
Strategic Objective:
 
Strengthen five regional Pre-service Teacher Training Centers, with 
upgraded curricula, study program for primary education teacher training, and specific focus on 
pedagogical competencies and subject-knowledge pertinent to flexible modalities, rural areas 
and intercultural and bilingual education.  Students will be identified from a pool of high 
performance and highly motivated secondary education graduates.   
19
 Resources for the creation of the lower secondary education cycle in Integrated Basic Education Centers will be 
financed from Subcomponent 2.B (Lower Secondary Quality and Expansion), below. 
20
 The financial incentive for the preparation of school improvement plans of Integrated Basic Education Centers 
will be financed from Subcomponent 3.A (School Based Management for Education Quality), below. 
Page  12
12
 
Implementation Strategy:
 
The five CEFORMA will receive: (i) materials with improved 
curricular and pedagogical strategies and the new pre-service training study program; (ii) 
training for teacher trainers with support of Faculties of Education from Guatemalan major 
universities; (iii) applied and experiential student-centered pedagogy courses (including applied 
learning in the classroom
—as teaching assistants); and (iv) specialized training for key areas 
demanded by the school system in Guatemala, especially in communities and regions with the 
highest educational gaps (for example, specialization in pre-school, multigrade, rural, 
intercultural and bilingual education).   
 
Component 2. Access and Quality of Lower Secondary Education (US$70.87 million):
 This 
component would support integrated strategies to increase the quality and access to lower 
secondary education (grades 7-9).  It will include support for (i) the curricular reform of 
secondary education, (ii) strengthening and expansion of existing lower secondary education 
modalities; and (iii) strengthening education demand programs, such as scholarships and 
subsidies for enrollment, retention and graduation of low income students. 
 
Subcomponent 2.A  Feasibility studies and strategies for upper secondary education 
curricula and evaluation systems (US$ 4.10 Million).   
 
Sector context and diagnostic summary
:
The Ministry of Education (supported by other 
donors) is advancing sector-wide efforts to reform the secondary education curricula, including 
the definition of an integrated standards-based curriculum, improved evaluation systems, and 
secondary teacher training proposals.  
The curricular reform, by nature, must be done from a 
sector-approach and integrated among each sub-sector level.  The Project does not intend to 
finance the overall secondary education reform in each of the education levels and tracks. It does 
intend to support the integrated secondary education curricular analysis
—and proposals—which 
will guide the medium and longer-term reforms in this education level.   It is expected that 
specific lower secondary education modalities strengthened by this Project will also permeate 
the longer term secondary education reform proposals, and vice-versa. 
 
Strategic Objective
:
Support on-going feasibility studies for the curricular reforms for the 
secondary education level, including both general and technical tracks.  
 
Implementation Strategy
:
The feasibility studies and proposal definition will be based on a 
participatory mechanism to include teachers and principals of secondary schools, universities, 
think tanks and foundations interested in secondary education, as well as businesses and 
corporations.  For technical education, the curricular reform proposal will be defined by a 
network of stakeholders (public-
private sector) and “action research”
21
 studies in 5 existing 
technical schools in the country.  Lessons from these applied studies will be integrated into the 
proposed curricular reform.  
 
21
 Action research, as a study methodology, attempts to combine traditional “documentation based” studies with 
lessons learned from “in situ” situations and preliminary impact of initial operational reforms. 
Page  13
13
Subcomponent 2.B Strengthening and Expansion of Pertinent and Flexible Modalities for 
Lower Secondary Education (US$ 60.09 Million) 
 
Sector context and diagnostic summary
:
The two largest existing lower secondary education 
modalities in the Guatemalan rural sector are: 
Telesecundaria 
(video-supported teaching) and 
Alternancia 
(semi-distance modality that alternates students between school and community 
learning).   Both modalities were initiated in Guatemala over 10 years ago, with support from 
other countries where the models were developed: Mexico, France, Belgium and Brazil.  
However, these modalities must be strengthened in terms of its pedagogical methods, its 
curricular content, and integration with the school-management strategies of the country.  A 
cost-effectiveness evaluation
—supported by the Project—will provide evidence of the 
strengthening process and the feasibility of further expansion.  
 
For on-going sustainability and capacity building, the sub-component strengthens and optimizes 
existing programs supported by the Government and other donors.  Large capital investments are 
also minimized through the utilization of existing school infrastructure financed by MINEDUC, 
municipalities and community education stakeholders. 
 
Strategic Objective
:
Support the evaluation, strengthening and expansion of existing lower 
secondary education modalities (grades 7-9), pertinent for rural and indigenous communities; 
and increase access to rural lower secondary education to approximately 90,000 new students, 
using existing capacity and school infrastructure.   
 
Implementation Strategy
:
The sub-component will evaluate and strengthen the following two 
existing pedagogical modalities: (i) 
telesecundaria
 (a TV-video supported strategy)—presently 
offered in more than 500 schools, and reaching over 35,000 students; and (ii) “Alternancia” 
Programs (combination of school-community strategies, with applied learning in rural 
contexts)—presently offered in 550 schools, and reaching 17,000 students.  
 
Once these pedagogical models are strengthened, 90,000 rural school places in lower secondary 
education will be expanded.  Thirty thousand new places will be provided through the addition 
of a lower secondary cycle in the Integrated Basic Education Centers, presented in 
Subcomponent 1.A, above.  The additional 60,000 new school places will be increased as 
follows: (i) 36,000 new places in cooperative schools (existing modality financed by the Central 
Government, the local municipality, and a community cooperative); (ii) 16,000 new places by 
optimizing idle capacity in existing lower secondary schools (INEB, 
Institutos Nacionales de 
Educacion Basica
); and (iii) 8,000 new school places with strategic alliances with non-profit 
education providers (NGOs and Foundations) for lower secondary education services in the rural 
sector.   
 
Lower secondary schools supporting increased enrollment of new students from rural, low 
income and indigenous targeted groups will receive a “New Student Access Subsidy”, on a 
annual per-student basis.  The subsidy will finance the incremental input costs of new students, 
and will be used to purchase educational materials, refurbishing of classrooms, equipment, and 
Page  14
14
school furniture
22
.
For the Integrated Basic Education Centers, MINEDUC will allocate 
additional teachers as needed.  Cooperative Schools contract additional teachers directly, and the 
subsidy supports partially the per-student incremental costs for human resources, using the 
traditional financing formula for Cooperative schools: 33% municipal funds, 33% cooperative-
raised funds, and 33% MINEDUC funds (for targeted schools, the MINEDUC contribution will 
be financed by the Project). 
 
The complementary 8,000 school places through alliances with non-profit education service 
providers are also a strategy to increase implementation capacity in the sector. NGOs and 
Foundations already support different education services in Guatemala. However, the Project 
will further norm and systematize the MINEDUC-NGO alliance criteria and mechanisms.   
Provision of “school access subsidies” for NGO-run schools will be standardized based on the 
following criteria: (i) a per-student cost for a basket of quality education inputs to be provided 
annually by the NGO (education materials, transportation, meals, etc,); and (ii) a prorated 
amount to complement incremental costs (due to increased access from traditionally excluded 
students) for teachers, infrastructure maintenance, equipment, and other educational inputs.  
Eligible NGOs will also be accredited based on a set of indicators determining the quality and 
efficiency of teachers, methodological strategies, congruence with the National Curriculum, and 
contextualization to specific cultural and ethnic backgrounds of the community to be served.  
 
Subcomponent 2.C  Education Demand Scholarships and Subsidies for Low Income 
Students (US$ 6.68 Million). 
 
Sector context and diagnostic summary
:
A
large number of scholarships are already 
implemented in Guatemala—with support of Government and other donors, including the Bank.  
The Country seeks to strengthen existing scholarships programs and make available new 
scholarships to defray direct family and opportunity costs of lower secondary education, 
especially for low income, and rural families and for working youth.  The scholarship program 
requires: (i) an improved targeting system, (ii) a unified code to avoid duplication of 
scholarships or exclusion errors (not reaching the correct beneficiary); and (iii) an appropriate 
community-based and institutionally simple system to monitor school performance of 
beneficiaries.   
 
Strategic Objective
:
The sub-component will increase the education demand of adolescents 
and youth from poor income families and Indigenous populations in Project targeted areas.   In 
addition to providing scholarships—conditioned on lower secondary promotion, performance 
and completion—to eligible students in schools supported by the Project, the sub-component 
will support the sector-wide strategy of improving scholarship targeting and monitoring systems. 
 
Implementation Strategy
:
The first phase of implementation will systematize and strengthen 
the identification and selection of beneficiaries, the administrative and costing structures and 
mechanisms, and the monitoring and evaluation of existing scholarships programs.   This effort 
will be done in coordination with other education offices and donors that support scholarships in 
pre-education system.  In addition, the component will provide approximately 5,500 students 
22
 This School Place financing modality (“Cupo”) has been supported by the Bank in Colombia, and more recently 
in El Salvador.  In Guatemala itself, school grants have been disbursed to PRONADE schools to finance 
Page  15
15
from poor socio-economic and ethnic backgrounds, scholarships to complete three years of 
lower-secondary education (
Becas de Educación Basica
).  These scholarships will be 
conditional on promotion and completion of the full education cycle.  The scholarships will be 
allocated using information on educational gaps between municipalities, and using school 
government and communities to identify and monitor eligible students.    
 
Component 3. School Management in Support of Education Quality (US$ 20 Million):
 This 
component will advance the lessons learned on school management strategies implemented at 
the primary school level through the last decade in Guatemala.
23
 
The focus will be on increasing 
the contributions of school-based management to the quality of learning.  Also, the supportive 
and supervisory role of Education Departmental Offices (DDE, 
Direcciones Departamentales de 
Educacion
)
will be strengthened by improving their decentralized functions in pedagogical 
technical assistance, school planning, result evaluation support and supervision, and 
administrative procedures. 
 
Subcomponent 3.A  Consolidation and Strengthening of School-Based Management for 
Education Quality (US$ 17.5 Million) 
 
Sector context and diagnostic summary:
 Guatemala seeks to support the consolidation and 
modernization of school-based management in the country
24
.
School boards or education 
committees have increased their decision making in allocation of school resources; receive 
financial grants; and implement specific programs (such as school feeding, infrastructure 
maintenance and scholarships).  Based on the New Education Management Model defined by 
MINEDUC
—at the school level—the schools supported by the Project will receive support to (i) 
strengthen school and parental organizations in the lower secondary education level; (ii) have 
available tools and training to plan school improvement activities, and (iii) access an integrated 
information system that not only collects data but which returns this information for use at the 
school level.   
 
Strategic Objective
:
Strengthen lower secondary schools supported by the Project to (i) 
improve their school organizations (of parents, teachers and principal); (ii) and utilize education 
outcome information provided in school 
report cards
;
and (iii) plan simple school-based 
strategies to improve teaching and learning of their children.  
 
Implementation Strategy
:
The sub-component will provide technical assistance and school 
tools and support to: 
(ii) organize and/or strengthen school boards and education committees, (ii) 
prepare school improvement plans, and (iii) support school use of report cards—which provide 
school level information on school enrollment (per grade, age, gender and ethnicity), efficiency 
(retention, promotion and completion), and quality (standardized testing).   
The sub-component 
will support approximately 1,500 schools, including:  (i) 350 Integrated Basic Education Centers 
23
 The experience of Guatemala with School-Based Management to date has included: (i) creation of school and 
parental committees (Juntas Escolares, COEDUCAS and Cooperatives), (ii) transfer of financial resources for 
school operating costs (including payment of teachers in PRONADE schools
23
), and (iii) collection of data on 
school attendance, repetition, drop-outs, promotion and completion.  
24
 School governments or community education committees were initially developed through PRONADE, and more 
recently institutionalized in all public primary schools through the Juntas
 Escolares
 (School Boards).    
Page  16
16
(primary schools integrated with a lower secondary education modality) and (ii) 400 new 
Cooperative schools (
Institutos por Cooperativa)
 providing lower secondary education
25
.
The subcomponente will be implemented sequentially: (i) Departmental Education Departments 
and contracted NGOs will provide organization assistance and training of school governments 
(including training on community participation, school planning and fiduciary management); (ii) 
with motivated and organized school committees, the schools will prepare a simple school 
improvement plan (PEI-
 Proyecto Educativo
), defining mid-term goals and short-term activities 
to improve learning; and (iii) the component will provide some seed financial resources (School 
Improvement Grant) as incentives for PEI implementation (the Grant will not necessarily fully 
finance the PEI).  The formula for this incentive includes number of children and rural level of 
each school.  In average, participating school governments will receive approximately US$1,500 
annually, up to five times during the period of project implementation. 
 
Subcomponent 3.B  Consolidation and Strengthening of Departmental Supervision and 
Technical Assistance to Schools (US$ 2.5 Million)   
 
Sector context and diagnostic summary: 
 Since the Peace Accords of 1996, Guatemala 
initiated a process to: (i) decentralize its education system across central, departmental, school 
and community (including indigenous and rural) management levels; (ii) improve its 
Management Information Systems; and (iii) modernize Human Resources administration.  As 
part of the decentralization and modernization goals of the Education Sector, in 1998 Guatemala 
created the 22 departmental education offices (sub-regional division).  These offices have 
delegated authority in the areas of school administration, human resources management, and 
monitoring school construction.   To support school decision making and improved 
performance, Departmental and District offices need to strengthen their capacity to provide 
technical assistance and supervision in terms of pedagogical processes in the classroom and 
school management.   
 
Strategic Objective
:
Strengthen the capacity of sub-regional education offices (departmental 
and district) to improve the quality of their school technical assistance and supervision in 
pedagogical and management processes.   
 
Implementation Strategy
:
The subcomponent will benefit directly the 10 Education 
Departmental Offices
26
 directly responsible for the schools targeted by the Project.   The 
strengthening program includes: (i) improved strategies, instruments and knowledge to support 
the Project-supported pedagogical models (
telesecundaria
 and 
alternancia
)
and the school 
management models (
Juntas Escolares, COEDUCAS
,
and 
Cooperativas
27
); (ii) improved DDE 
knowledge and involvement in preparation of school improvement plans; and (iii) collection of 
school education outcomes and utilization of school report cards.  The sub-component will also 
25
 These schools are created through the existing strategic alliance of the Ministry of Education, municipalities, and 
local cooperatives.   
 
26
 Although the Project will focus only in 10 DDEs, it is expected that the materials and training designs prepared 
for these departmental offices will contribute to the replication in other not targeted DDEs.   
27
 School boards, education committees, and community cooperatives. 
Page  17
17
contribute
—with training and materials—to strengthen the decentralized administrative 
functions at the departmental level (human resources, planning, and fiduciary management).
 
In targeted Departments, the internal organizational structure of DDEs will be reviewed.  Key 
teams will receive specific training and technical assistance, especially: (i) the Pedagogical 
Team responsible for technical assistance, training and standardized testing (including local 
offices of the Education Quality, Bilingual and Intercultural Education, and Evaluation units); 
(ii) the Management and Administrative Team responsible for financial flows and audits of 
schools (School Improvement Grants, New Students Access Subsidies, and Scholarships); (iii) 
the staff responsible for coordination of school access and expansion inputs (mainly 
infrastructure refurbishing and teaching human resources); and (vi) supervision teams which 
provide direct technical assistance and support at the school level. 
 
In line with the Result-Based Management policy of the Government (MINEDUC, SEGEPLAN, 
and Ministry of Finance), DDEs will participate in, and benefit from, the result monitoring and 
impact evaluation of the Project 
—
which will be financed from this sub-component.   The 
impact evaluation uses the rich school and education sector data available (supported by 
previously Bank-financed projects and by other donors), and will monitor improvements in 
project-targeted schools and will evaluate the impact of the pedagogical and institutional 
investments (see section below). 
 
Impact Evaluation and Monitoring Strategy 
Project Design has included strong emphasis on Impact Evaluation to confirm the results of the 
key programs supported by the Project, in line with the Result-Based mandates of MINEDUC, 
the Government executive and legislative branches, and Guatemala’s civil society.  The key 
programs to be evaluated (based on a contra-factual comparison: i.e., what would have happened 
without these investments) will include: (i) the integrated Basic Education Centers (primary and 
lower secondary cycles), with support to overage students, (ii) a cost-effectiveness analysis 
among the various secondary education modalities supported by the Project (in comparison to 
traditional modalities); and (iii) the impact of school management focused on learning quality. 
 
In turn, the Monitoring system will track the implementation of the above mentioned strategies, 
to guarantee that the program is implemented as expected.  Implementation problems (lack of 
inputs, slow implementation of activities, interventions not reaching beneficiaries, etc.) affect 
impact evaluations, since the actual results of specific interventions not implemented as 
expected cannot be assessed.   
 
Working in unison, the Impact and Monitoring designs can both assess  if the financed 
interventions achieved the expected results (internal validity), and if  the key Project Programs 
can be expanded in other regions of Guatemala (external validity). Annex #3 presents the Project 
Results Framework (and its respective indicators and targets) and the summary of the Project 
impact evaluation and monitoring design. 
Page  18
18
Summary of Project Design 
 
Table A-6: Summary of the Sector Issues and Objectives by Components/Subcomponents with Key 
Indicators to Monitor Education Quality and Secondary Education Expansion  
Issues PDOs 
Sub-Components 
Indicators 
·
More than 30% of 
students in Primary 
School are 2 or more 
years over-age 
·
High Repetition and 
Dropout of Overage 
Students in Primary 
Education Limits 6
th
 
Grade Completion and 
Expansion of Lower 
Secondary Education 
(7-9)  
·
Guatemala is not on 
track of EFA Goals  
Improve 
Primary 
Education 
Completion 
for Overage 
Students 
 
1.A
:
Integrated Primary 
and Lower Secondary 
Education Centers: 
 
1.B: 
Improvement of 
Primary Education 
Teacher Training
 
1) For the cohort of students that are 
over-age at baseline: 
·
Reduced % of dropout rates 
·
Increase 6
th
 grade completion  
 
2) Reduced repetition and dropout rates 
in grades 1-6;  
 
3) Improved admission and graduation 
test scores in 5 Regional Centers for 
Pre-service Teacher Training. 
·
Deficient progress in 
Lower Secondary 
Education, Grades 7-9 
(even behind low-
income neighbors: 
Honduras and 
Nicaragua) 
·
Limited secondary 
education impact on 
competitiveness and 
poverty alleviation 
Increase 
Access to a 
Quality Lower 
Secondary 
Education 
2.A 
Secondary Education 
Curricular Upgrade  
 
2.B 
Lower Secondary 
Education Flexible 
Modalities Improvement 
and Expansion 
 
2.C 
Education Demand 
Scholarships for Low 
Income and Indigenous 
Students
 
1) Increased intake (access) in grade 7
—
in schools supported by the Project. 
 
2) Satisfactory Scores in 9th Grade 
Standardized Spanish and Math Tests in 
schools supported by the Project. 
 
3)  National Gross Enrollment rate in 
lower secondary education, grades 7-9 
(52% to 58%); and Gross Enrollment 
Rates in Municipalities Supported by the 
Project from 34% to 63% 
 
·
Limited School 
Management Impact 
on Education Quality   
Continue to 
strengthen the 
focus of school 
management 
on education 
quality, with 
support of 
decentralized 
departmental 
education 
offices  
3.A
 Enhance school-based 
decision making and 
community participation.  
 
3.B
 Improve departmental 
and district technical 
assistance and supervision 
of school improvements, 
and consolidation of the 
MOE decentralization 
 
a. % of School governments organized 
and trained (as of originally planned 
targeted schools) 
 
b. % of schools with own planning and 
management of resources (as of 
originally planned targeted schools). 
 
c. Compare # of following processes 
between targeted and not targeted 
Departmental Education Office 
(DDEs)s:  (a Teaching Staff Payroll 
and Administrative Supervision; (b) 
Targeting, allocation and monitoring 
of scholarships; (c) and School 
Management  training and technical 
assistance offered to principals, 
teachers and school government. 
 
Page  19
19
7. 
Lessons learned and reflected in the project design 
 
The three key strategic (and interrelated) interventions of the Project
—(i) integrated Basic 
Education Centers (with accelerated programs for over-age students), (ii) flexible and pertinent 
lower secondary education programs, and (iii) school management focused on education 
quality—were defined through both international and national lessons learned. 
 
Internationally, integrated schools, providing grades 1-9 in one center, have shown to have an 
impact on completion and transition between primary and lower secondary schooling. 
Accelerated education programs are part of integrated Basic Education Centers in El Salvador, 
Colombia and Brazil.  All these countries experiences were reviewed (and technical assistance 
received from El Salvador and Colombia).  To sustain inter-country lessons learned, El Salvador 
and Guatemala are defining an inter-ministerial agreement, whereby Guatemala can 
contextualize, edit and use El Salvador’s accelerated learning education materials. 
 
Flexible and pertinent programs for lower secondary education from Mexico (telesecundaria), 
Colombia (Tutorial, Semi-distance programs, SAT), Belgium and France (NUFED) have 
already been implemented in Guatemala. These programs, however, do require methodological 
strengthening and contextualization to a multicultural and multilingual country; however, on the 
positive lessons learned they have shown to be successful in increasing coverage and retention in 
rural areas.   Inter-alliances between the Ministry of Education of Guatemala with the respective 
design agencies of these programs in Mexico, Colombia and Belgium are in process. 
 
Nationally, Guatemala (as other countries in Central America, most notably El Salvador) has 
had more than a decade of experience with community-based management of schools.  The 
lessons learned are positive, both in terms of (i) increased access in rural areas, (ii) committed 
participation of parents and communities in school, and (iii) efficient and transparent use of 
financial resources at the school and community levels.  The School-Based Management system 
now requires consolidation of lessons learned, especially in focusing school management and 
community participation on the quality of learning.  Complements, such as school improvement 
planning and school report cards (including information on standardized test scores) are 
internationally successful inputs that will also be applied in Guatemala, with support of this 
project. 
 
8. 
Alternatives considered and reasons for rejection 
 
The project design has evolved and has become more concrete through the preparation process 
and sector and feasibility studies.  Three major original alternatives were considered, tested and 
rejected: (i) focusing the project only at the secondary education level, (ii) investing only on 
accelerated programs for overage students, and (ii) focusing the decentralization and 
modernization investments on the design and implementation of national management 
procedures and systems.   
 
These alternatives were rejected as the feasibility studies and national/international lessons 
learned yield the following: 
 
Page  20
20
·
Focusing only at the secondary education level was rejected because high dropout of over-age 
students in primary education constrained 6
th
 grade completion and 7th grade demand. Even if 
the supply (school places) of lower secondary education would have been increased, low 
primary education completion limited expansion.  
·
Originally only an accelerated program for overage students in primary education was 
developed, as an incentive for older students to complete primary education in a psycho-social 
pertinent environment. However, the program may have yielded only short-term results.  
Included within a larger strategy of Integrated Basic Education Centers (grades 1-9 in one 
school), the Accelerated Education Program provides incentives for longer term and 
sustainable improvements in primary education.  
·
Focusing only in modernizing national systems
—in planning, budgeting, human resources, 
and fiduciary management—was rejected to focus on management quality at the school level, 
and then improve regional and central administration in support of schools. The finally agreed 
institutional component, focuses on improving school-based management and education 
results, and orients all other departmental and central investment to guarantee this objective.   
 
B. IMPLEMENTATION 
 
1. Partnership 
arrangements: 
Project preparation and implementation benefits from the following partnership alliances: (i) 
extend existing partnerships between community cooperatives, municipalities and MINEDUC to 
provide lower secondary education in rural areas;  (ii) strategic alliances with not-for-profit 
education providers of lower education services to under-served youth; and (iii) strategic 
harmonization with other international and local donors (USAID, CIDA, JICA, GTZ/KfW, etc.) 
in support of the primary and secondary education reforms.  
 
2. 
Institutional and implementation arrangements 
The project institutional and implementation arrangements have a strong focus on Community-
Driven Development (CDD) and School-Based Management. All schools targeted by the project 
will receive support to: (i) strengthen their school government and community participation, (ii) 
planning their own improvement strategies, and (iii) receive financial grants for direct 
management and accountability.   Central and Departmental offices—as well as NGOs—have 
more than a decade experience in supporting school-based management. Since a large 
percentage of Project education quality and access activities will be directly financed at the 
school level, required annual audits will include complementary and random audits of inputs, 
processes and results of grants and subsidies managed by schools communities. 
 
3. 
Monitoring and evaluation of outcomes/results 
The Project supports, strengthens and utilizes monitoring and impact evaluation to evidence 
outcomes and results.  Annex 3 of this PAD includes the monitoring and impact evaluation 
design for the Project interventions, in line with existing MINEDUC’s capacity and information 
systems.   
 
4. Sustainability 
The project rests on four key pillars to guarantee its sustainability: (i) strategically, it directly 
supports key sector issues; (ii) socially and politically, project preparation has benefited from 
consultations in both the legislative and executive branches of Government, and stakeholders at 
Page  21
21
the central, departmental, school and community levels; (iii) the Project does not introduce new 
programs into the Guatemalan Education Sector, but strengthens and optimizes existing rural 
lower secondary education programs and school management modalities; and (iv) financially it 
rests on alternative mechanisms of education financing, including Central Government, 
Municipality, Cooperatives and NGO efforts. 
 
5. 
Critical risks and possible controversial aspects. 
The present Latin American political environment shows evidence of an ideological polarization 
both in society and in political groupings.  The focus on NGO participation, school based 
management, and targeting (by region, ethnicity, or income levels) tend to be argued against or 
defended by different interest groups.  Transparency, open dialogue, and objective evidence of 
project results are strategies to minimize controversial issues and to reach consensus on the 
positive aspects of Community-Driven Development and decentralized approaches. 
 
The table below presents the identified political and implementation risks and their mitigation 
measures: 
Table B-1: Risks and Mitigation Measures
 
Political Risks 
Mitigation 
Measures
 
Post-secondary education training of 
students may be opposed by prospect 
teachers and Teacher Unions that feel 
additional requirements are placed for this 
profession.   
The project commitment is on improving pre-service teacher training (independent of 
the education level agreed); it provides resources to complete the needed feasibility 
strategies and operational proposals for a post-secondary reform. It will support 
structural changes only if there is consensus and the risks are manageable. 
School-Based management is criticized 
by some groups as a “privatization” 
scheme and low public responsibility for 
financing and management of schools. 
The Information, Communication and Education (IEC) strategies of the MOE are 
presenting live “samples” of the benefit of school-based management and 
participation.  IEC will continue to be supported by the Project reiterating that  the 
strategy actually supports increased public commitment and finances at the school 
level, and wider democratization through participation of parents (mostly from rural 
and low income communities).   
Government transitions are difficult and 
require regaining support for on-going 
Projects. The period of loan ratification 
by Congress will coincide with an 
electoral year, and may take longer than 
the standard 90 days after Board 
approval. 
MINEDUC and the Bank are carrying and will continue to carry consultations with 
Congress, Political Parties, and Civil Society representatives to gain support for this 
Project. The Project addresses concerns and suggestions expressed by Congress—
including the focus on secondary education, cooperative schools, and 
competitiveness.  
Implementation Risks 
Mitigation 
Measures
 
Reduce errors of inclusion (of non-
eligible students) and exclusion (of 
eligible students) from the scholarship 
programs.  
Indeed, the Education Demand sub-component (subcomponent C.2) identified the 
need for strengthening the targeting, selection and beneficiary mechanisms.  Thus, 
resources are provided for such strengthening.  A disbursement condition for 
scholarships will guarantee that such systems are in place and adequately functioning 
before financing a scholarship. 
Guarantee that expansion is in pace with 
capacity for school management of 
School Access Subsidies. 
Guatemala has had more than a decade of experience in school-based financial 
management in PRONADE (community-managed schools).  MINEDUC is 
integrating the financial, monitoring, information and supervision systems existing in 
PRONADE within a general school-management department—benefiting the project-
targeted schools. In addition to the annual financial audit, a special audit will be 
requested (on a random sample to school) to evaluate the financial management 
processes and procedures for all funds transferred at the school level. 
Page  22
22
Financial Flows from MINEDUC to 
Schools need to be monitored to 
g
uarantee effective and efficient 
processes and procedures. 
The Project is in line with the decentralized financial and procurement systems in the 
education sector.  However, technical assistance and supervision of financial flows 
w
ill be financed and carried out by the Project.  DDE participation in financial 
transfers to schools (improvement grants, subsidies and scholarships) does 
not 
mean 
“cash money transfers” through each level (from the center, to the department, to the 
school); rather DDEs only manage budget allocation, plan regional selection and 
identification of beneficiaries, and request electronic account transfers from central 
accounts to school accounts. Flow-of-fund arrangements and strengthening/risk 
mitigating measures can be found in Annex 7. 
The overall risk for the Project is moderate, given the mitigation strategies.  As a Project that 
attempts to reform institutional systems, all possible risks have been identified in detail. 
However, extreme care has been placed to manage all the risks, especially those inherent to 
decentralized, community driven development strategies. 
 
6. 
Loan conditions and covenants 
No conditions are expected. The following drafts are expected at negotiations: Operational 
Manual, Annual Operation Plan for the first 18 months of Project Implementation, Procurement 
Plan, and draft format of covenants for school access subsidies, scholarships and PEI-incentive 
grants. 
 
C. APPRAISAL SUMMARY 
1. 
Economic and financial analysis.
 
The cost-benefit analysis has yielded an Investment Return Rate of 31%, remaining high through 
different sensitivity analysis.  Financially the Project investments and recurrent costs were 
considered sustainable (See Annex 9 for details). 
 
2. 
Technical.
 
The sector analysis provided key information on:  (i) Overage students, (ii) efficiency indicators 
for primary and lower secondary schooling, (iii) education needs and pertinent strategies for 
Indigenous Populations, and (iv) the education outcomes of low income groups.  The 
preparation team developed an Index of Education Efficiency (IEE), which has allowed concrete 
criteria for targeting, monitoring and costing interventions across and within the differing 
regions of Guatemala.  Project preparation has benefited from a series of existing and on-going 
studies (supported by the Bank, other donors, and local and international specialists): Overage 
programs, Teacher Development, Alternative Lower Secondary Education Programs, Curricular 
Development, Technical Education Flexible Programs, Institutional Modernization, and School-
Based Management of Education Management (see PAD bibliography for a sample of studies 
prepared and consulted).  
 
3. 
Fiduciary.
 
A
decentralized Bank Fiduciary Team in Guatemala provided close technical assistance and 
reviews 
of MINEDUC’s fiduciary capacity for the Project.  Albeit some identified risks (and 
respective strengthening plan), capacity is satisfactory for both financial and procurement 
management. MINEDUC has integrated Project fiduciary management within the 
Administrative Department of the MINEDUC (rather than being an outside and independent 
unit). This integration will guarantee cross-training of MINEDUC fiduciary personnel, as well as 
contribute to the gradual plan of strengthening fiduciary country systems in Guatemala.  Within 
Page  23
23
the Administrative Department a team specialized in IBRD fiduciary norms 
—and with 
competence and experience acceptable to the Bank— will support all processes specific to the 
loan.  
 
4. 
Social.
 
The Social Assessment and Indigenous Development Plan preparation was completed, and 
contributed to the specific strategies to reach low income; rural and indigenous populations (see 
Annex 10). The 10 project-targeted regions—identified based on an index of education 
efficiency—have up to 70% of indigenous population.  Indigenous specific-earmarked activities 
are detailed in Annex 10; in addition to earmarked investments, Indigenous Students will also 
benefit from other general Project investments. 
 
5. 
Environment C Category.
 
No new education infrastructure will be financed by the Project—given the flexible models for 
lower secondary education and the alliances with NGOs and other non-profit service providers.   
Nonetheless—although no environmental feasibility studies were required—the standard IBRD 
environmental safeguard guidelines were presented and discussed with MINEDUC. 
 
6. 
Safeguard policies.
 
The Indigenous People safeguards have been triggered.  Environmental Assessment is not 
triggered since school construction will not be financed by the Project.  
 
Safeguard Policies Triggered by the Project 
Yes 
No 
Environmental Assessment (OP/BP 4.01) 
[ ] 
[X ] 
Natural Habitats (OP/BP 4.04) 
[ ] 
[ X] 
Pest Management (OP 4.09) 
[ ] 
[X ] 
Cultural Property (OPN 11.03, being revised as OP 4.11) 
[ ] 
[ X] 
Involuntary Resettlement (OP/BP 4.12) 
[ ] 
[ X] 
Indigenous Peoples (OP/BP 4.10) 
[ X] 
[ ] 
Forests (OP/BP 4.36) 
[ ] 
[X ] 
Safety of Dams (OP/BP 4.37) 
[ ] 
[X ] 
Projects in Disputed Areas (OP/BP 7.60)* 
[ ] 
[X ] 
Projects on International Waterways (OP/BP 7.50) 
[ ] 
[ X] 
7. 
Policy Exceptions and Readiness 
No exceptions requested.  Drafts of Project Manual, Annual Operational Plan, draft agreements 
with NGOs, Cooperatives, School Governments and Committees; and Global and 18 Month 
Procurement Plan will be presented at negotiations.   
 
8.  Financing 
Source: ($m.) 
BORROWER 20 
INTERNATIONAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT 
80 
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the 
disputed areas
 
Page  24
24
 Total 
100 
 
9.  Contact point 
Contact: Joel E. Reyes 
Title: Sr Institutional Dev. Spec. 
Tel: (202) 473-8536 
Email: Jreyes@worldbank.org 
 
10.  For more information contact: 
The InfoShop 
The World Bank 
1818 H Street, NW 
Washington, D.C. 20433 
Telephone:  (202) 458-4500 
Fax:  (202) 522-1500 
Email: pic@worldbank.org 
Web: http://www.worldbank.org/infoshop