Rural Primary Education Improvement Project in Guatemala

The project involves planned obligations of not to exceed eight million seven hundred thousand loan funds and three million three hundred thousand grant funds over a two-year period from the date of authorization, subject to the availability of funds in accordance with USAID regulations. The project consists of assistance to improve the efficiency and relevance of Guatemala's rural education system. The project will achieve this purpose by financing administration and supervision, curriculum development, textbook printing, school furniture, training, and research activities in support of the country's primary bilingual education system. The project will be implemented by the Ministry of Education, with the assistance of USAID. The project agreement, which may be negotiated and executed by the officer to whom such authority is delegated in accordance with AID regulations and delegations of authority, shall be subject to the following essential terms and conditions, together with such other terms and conditions as AID may deem appropriate. The Government of Guatemala (GOG) shall repay the loan to AID in U.S. dollars within twenty-five years from the date of first disbursement of the loan, including a grace period of not to exceed ten years. The GOG shall repay interest to AID in U.S. dollars from the date of first disbursement of the loan at the rate of (i) two percent (2%) per annum during the first ten years, and (ii) three percent (3%) per annum thereafter, on the outstanding disbursed balance of the loan and on any due and unpaid interest accrued thereon. The source and origin of goods and services financed by AID under the loan shall have their source and origin in countries included in AID's Geographic Code 941 and Guatemala, except as AID may otherwise agree in writing. Ocean shipping financed by AID under the loan shall, except as AID may otherwise agree in writing, be financed only on flag vessels of the United States or of countries that are members of the Central American Common Market. The project will establish and fund on a timely basis 59 civil service positions for technical and administrative personnel in order to strengthen the GOG's implementation capacity. The project will also create 900 positions for bilingual teachers/promoters during the life of the project (approximately 150 per year for six years), and all 900 will be assigned to project schools. A waiver of the requirement that motor vehicles financed by AID have their source and origin in the United States is hereby granted in order to permit the procurement of approximately 30 trail bikes, with displacement of 175 cc or less, in an amount not to exceed $50,000 from countries included in AID's Geographic Code 935.