Document of
               The World Bank

            FOR OFFICIAL USE ONLY

                                       Report No: 72874-CR




            RESTRUCTURING PAPER

                    ON A

      PROPOSED PROJECT RESTRUCTURING

                      OF

CR EQUITY AND EFFICIENCY OF EDUCATION PROJECT

                LOAN 7284-CR

   APPROVED BY THE BOARD ON MARCH 29, 2005



                   TO THE


           REPUBLIC OF COSTA RICA


              SEPTEMBER 24, 2012
       Regional Vice President:       Hasan A.Tuluy
              Country Director:       C. Felipe Jaramillo
Sector Director/Sector Manager:       Keith Hansen / Reema Nayar
             Task Team Leader:        Marcelo Becerra




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RestructuringStatus: Final
Restructuring Type: Level two
Last modified on date : September 24, 2012

1. Basic Information
Project ID & Name                              P057857 : CR – Equity and Efficiency of Education Project
Country                                        Republic of Costa Rica
Task Team Leader                               Marcelo Becerra
Sector Manager/Director                        Reema Nayar
Country Director                               Carlos Felipe Jaramillo
Original Board Approval Date                   03/29/2005
Current Closing Date                           12/31/2012
Proposed Closing Date [if applicable]          12/31/2013
EA Category                                    Category B
Revised EA Category
EA Completion Date                             November 15, 2003
Revised EA Completion Date


2. Revised Financing Plan (US$)
Source                                         Original                       Revised
BORROWER                                       21.00                          21.00
INTERNATIONAL BANK FOR                         30.00                          30.00
RECONSTRUCTION AND
DEVELOPMENT
 Total                                         51.00                          51.00


3. Borrower
Organization                       Department                          Location
Republic of Costa Rica                                                 San Jose


4. Implementing Agency
Organization                            Department                    Location
Ministry of Public Education                                          San Jose


5. Disbursement Estimates (US$m)
Actual amount disbursed as of 09/18/2012 16.8
Fiscal Year                      Annual                                Cumulative
FY13                             11.0                                  27.8
FY14                             2.2                                   30.0
 Total                                                                 30.0

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6. Policy Exceptions and Safeguard Policies
Does the restructured project require any exceptions to Bank policies?                             N
Have these been approved by Bank management
Is approval for any policy exception sought from the Board?
Does the scale-up of restructured projects trigger any new safeguard policies? If yes,             N
please select from the checklist below.


7. Project Development Objectives
Original/Current Project Development Objectives

The objectives of the Project are to: (a) reduce education quality gaps in the Borrower’s primary and
secondary education system in rural areas; and (b) improve the equity and efficiency in the allocation,
administration and use of the Borrower’s education sector resources.




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                             REPUBLIC OF COSTA RICA

               EQUITY AND EFFICIENCY OF EDUCATION PROJECT
                                 P057857
                               LOAN 7284-CR


                                  Restructuring Paper


1. The closing date for Costa Rica Equity and Efficiency of Education Project, Loan
   7284-CR, P057857, will be extended for 12 months from December 31, 2012 until
   December 31, 2013.

2. Implementation has continued improving over the last 6 months. Under Component
   1, 47 primary schools and 11 secondary schools have been built. With respect to
   Component 2, three key consultancies were completed with the objective to improve:
   the management of equity programs, the management of administrative school
   councils and the organizational model of the equity programs unit in the Ministry of
   Public Education. Concerning Component 3, several activities related to inter-cultural
   education have been carried out.

3. The extension is necessary in order to allow the Project to finance the construction of
   34 schools, and the full furnishing and equipping of all schools. The extension would
   also allow continued financing of some key technical assistance activities related to
   institutional and curricular reform. All these activities are crucial to achieve the
   Project Development Objective.

4. This would be the second closing date extension. The first extended the Project’s
   closing date for 18 months, from June 30, 2011 to December 31, 2012.




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