ANNUAL EVALUATION - EDUCATION SECTOR LOAN 525-L-036

MAJOR POINTS OF EVALUATION FOLLOW: 1.MINISTRY OF EDUCATION REAFFIRMS EDUCATIONAL OBJECTIVES SPECIFIED IN LOAN. 2.CERTAIN TECHNICAL ASSISTANCE REQUIREMENTS MODIFIED BY MINISTRY OF EDUCATION. 3.OAS AND OTHER MULTILATERAL ORGANIZATIONS IDENTIFIED AS POTENTIAL SOURCES OF THEHNICAL ASSISTANCE. 4.PROGRESS IN OBTAINING TECHNICAL ASSISTANCE DISAPPOINTING. 5.COST REDUCTION TECHNIQUES UNDER STUDY. 6.POLITICAL PRESSURES ON MINISTRY TO UNDERTAKE EXTENSIVE SCHOOL CONSTRUCTION PROGRAM WILL CONTINUE TO CREATE LOAN MANAGEMENT PROBLEMS. 7.PRESSURES BY CERTAIN MATERIALS AND ENGINEERING CONTRACTORS FOR MINISTRY TO ADOPT CERTAIN TECHNIQUES OF PREFABRICATION WITHOUT PRODUCTION EXPERIENCE IN PANAMA EXPECTED TO CONTINUE. 8.AID/W'S DEMONSTRATED INTEREST IN SECTOR LOAN IMPLEMENTATION IS VERY BENEFICIAL, AS IT CAN PROVIDE CERTAIN COUNTERPRESSURES WITHOUT DISRUPTING THE SENSITIVE RELATIONSHIP BETWEEN THE MINISTRY AND USAID. 9.LOAN ADMINISTRATORS MUST ASSURE THAT QUALITATIVE REFORM AND MODERNIZATION PROGRAMS ORIGINALLY CONCEIVED ARE NOT SUBORDINATED TO BRICKS AND MORTOR. 10.FOLLOW-UP EVALUATION OF PROGRESS IN 6-8 MONTHS IS VERY IMPORTANT.