Document of The World Bank

Report No: 35652

IMPLEMENTATION COMPLETION REPORT(TF-26463 IDA-32500 IDA-32501)

ON A

CREDIT

IN THE AMOUNT OF SDR 6.2 MILLION (US$8.3 MILLION EQUIVALENT)

TO THE

REPUBLIC OF HONDURAS

FOR AN

INTERACTIVE ENVIRONMENTAL LEARNING AND SCIENCE PROMOTION PROJECT - PROFUTURO

April 26, 2006

Environmentally and Socially Sustainable Development Sector Management Unit Central America Country Management Unit Latin America and the Caribbean Region

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CURRENCY EQUIVALENTS

(Exchange Rate Effective January 25, 2006)

Currency Unit = Lempira HLP 1.00 = US$ 0.0530786

US$ 1.00 = 18.8400 Lempira

FISCAL YEARJanuary 1 - December 31

ABBREVIATIONS AND ACRONYMSCAS Country Assistance StrategyCOHCIT Honduran Council of Science and Technology (Consejo Hondureño de Ciencia

y Tecnología)DLC Distance Learning CenterFMR Financial Management ReportsGDLN Global Development Learning NetworkGENFUND Norwegian Trust Fund for Gender MainstreamingGOH Government of HondurasICB International Competitive BiddingICR Implementation Completion ReportIDA International Development AssociationIDB Inter-American Development BankIHAH Honduran Institute of Anthropology and History (Instituto Hondureño de Antropología

y Historia) ILC Interactive Learning CenterISDN Integrated Services Digital NetworkISG Information Solutions Group/World BankISR Implementation Supervision ReportLAC Latin America and Caribbean Region/World BankLACI Loan Administration Change InitiativeLIL Learning and Innovation LoanM&E Monitoring and EvaluationNCB National Competitive BiddingNGO nongovernmental organizationPHRD Policy and Human Resources Development/Japan Trust FundPIU Project Implementation UnitPROFUTURO Honduras Interactive Environmental Leaning and Science Promotion ProjectPSR Project Supervision ReportQCBS Quality and Cost-Based SelectionSCAD Ministry of Culture, Arts, and Sports (Secretaría de Cultura, Arte y Deporte)SDR Special Drawing RightsSOPTRAVI Ministry of Public Works, Transport and Housing (Secretaría de Obras Publicas,

Transporte y Vivienda)TOR Terms of ReferenceWBI World Bank Institute

Vice President: Pamela CoxCountry Director: Jane Armitage

Sector Director: Laura Tuck Task Team Leader: David Gray

HONDURASINTERACTIVE ENVIRONMENTAL LEARNING AND SCIENCE PROMOTION PROJECT -

PROFUTURO

CONTENTS

Page No.1. Project Data 12. Principal Performance Ratings 13. Assessment of Development Objective and Design, and of Quality at Entry 24. Achievement of Objective and Outputs 65. Major Factors Affecting Implementation and Outcome 166. Sustainability 177. Bank and Borrower Performance 198. Lessons Learned 219. Partner Comments 2310. Additional Information 23Annex 1. Key Performance Indicators/Log Frame Matrix 25Annex 2. Project Costs and Financing 28Annex 3. Economic Costs and Benefits 31Annex 4. Bank Inputs 32Annex 5. Ratings for Achievement of Objectives/Outputs of Components 34Annex 6. Ratings of Bank and Borrower Performance 35Annex 7. List of Supporting Documents 36Annex 8. Borrower's Contribution 37Annex 9. Data Tables 46Annex 10. Distance Learning Centers: Additional Information 48Annex 11. Endnote References 52

Project ID: P057350 Project Name: Interactive Environmental Learning & Science Promotion Project

Team Leader: David Gray TL Unit: LCSKMICR Type: Core ICR Report Date: April 26, 2006

1. Project DataName: Interactive Environmental Learning & Science

Promotion ProjectL/C/TF Number: TF-26463; IDA-32500;

IDA-32501Country/Department: HONDURAS Region: Latin America and the

Caribbean Region

Sector/subsector: Adult literacy/non-formal education (84%); Other social services (16%)Theme: Education for the knowledge economy (P); Other environment and natural resources

management (P); Biodiversity (S)

KEY DATES Original Revised/ActualPCD: 08/15/1998 Effective: 07/30/1999 10/01/1999

Appraisal: 10/15/1998 MTR: 08/15/2000 01/15/2001Approval: 06/17/1999 Closing: 10/30/2002 10/30/2005

Borrower/Implementing Agency: Republic of Honduras/Honduras Council of Science and Technology (COHCIT)Other Partners:

STAFF Current At AppraisalVice President: Pamela Cox Shahid Javed BurkiCountry Director: Jane Armitage Donna Dowsett-CoiroloSector Director: Laura Tuck John Redwood (Acting)Team Leader at ICR: David Gray Maria-Valeria PenaICR Primary Author: Kathryn Johns Swartz;

Maria-Valeria Pena; David Gray; Bari Rabin

2. Principal Performance Ratings

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible)

Outcome: S

Sustainability: L

Institutional Development Impact: SU

Bank Performance: S

Borrower Performance: S

QAG (if available) ICRQuality at Entry: S

Project at Risk at Any Time: No

3. Assessment of Development Objective and Design, and of Quality at Entry

3.1 Original Objective:The Interactive Environmental Learning and Science Promotion Project—PROFUTURO—was initially prepared as a Learning and Innovation Loan (LIL) to finance an Interactive Learning Center (ILC) as part of a wider cultural heritage strategy for Honduras. The project was appraised in mid-October 1998 and was ready to proceed to negotiations. However, in October, Honduras was hit by Hurricane Mitch, the worst natural disaster to have affected the country in modern times. Project processing was put on hold until the initial emergency passed.

The Government of Honduras (GOH) decided to continue with the project, although with a new focus on emergency needs and sustainable development to address the challenges resulting from the hurricane. The project was quickly redesigned with the following features: (a) the ILC would incorporate learning activities on the environment; (b) the project would add a component for archeological activities, specifically to finance civil works for emergency rehabilitation needs in the Copán Archeological Park caused by flooding from the hurricane; and (c) since the total credit amount exceeded the LIL financing ceiling, the project would be financed by a conventional International Development Association (IDA) Credit

The project development objective of PROFUTURO was to encourage and expand Honduran scientific, environmental, and cultural knowledge and management in the context of the borrower’s sustainable development needs and ethnic diversity. The project was approved on June 17, 1999, and it was the first IDA-financed project to support the design and implementation of an Interactive Learning Center/children’s museum.

3.2 Revised Objective:The objective was not revised. However, in February 2001, the GOH requested IDA support for the establishment of a Global Distance Learning Center (DLC) Annex as part of PROFUTURO. On May 31, 2001, a Supplemental Credit of SDR 3.2 million (US$4.0 million equivalent) was approved by the Executive Directors.[1] The mission of the DLC was to complement PROFUTURO’s approach to informal education, and the new technology would help the Consejo Hondureño de Ciencia y Tecnología (Honduran Council of Science and Technology, COHCIT) to fulfill the development objective.

3.3 Original Components:The project had three components financed with a SDR 6.2 million (US$8.3 million equivalent) IDA Credit and the GOH counterpart of US$0.9 million for a total cost of US$9.3 million equivalent.

Component 1. Sustainable Development Resources (US$6.7 million; IDA US$5.9 million). The objectives were to (a) design and implement an ILC in Tegucigalpa as a nonformal educational facility teaching the social, scientific, and environmental requirements for sustainable development to be used by children, teachers, and parents; and (b) establish archeological management plan subprojects. The three subcomponents were Interactive Learning Center; Pre-Hispanic Contribution; and Archeological Parks Subprojects.

(a) ILC Subcomponent. This subcomponent would support the development and implementation of a nontraditional, hands-on, and interactive informal learning experience on science, environment, and sustainable development built in evolving modules. This subcomponent would finance:

(i) Infrastructure (architectural design, engineering design, construction, plan for operations and

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maintenance of building and equipment)[2].

(ii) Exhibits on science and technology; sustainable development and environmental management linkages with natural disasters; the human body and communication; and sustainable development practices and scientific knowledge among Pre-Hispanic cultures.

(iii) Activities and services for the community (workshops, interactive data center with the environmental and cultural resources inventory, gift shop, and plan for services and concessions to private sector).

(iv) Support to the Profuturo Foundation for organization and administration of the ILC.

(b) Pre-Hispanic Contribution Subcomponent. This subcomponent would support research on Pre-Hispanic practices and scientific knowledge to be disseminated to teachers and students through the ILC and through a small children’s facility in Copán. It also would finance activities to promote ownership among indigenous peoples regarding Copán. This subcomponent would support:

(i) Technical assistance to carry out studies about the Pre-Hispanic contribution to modern science and environmental management.

(ii) Training for local residents, including indigenous residents, to become guides for the Copán Archeological Park, and for teachers and students on Pre-Hispanic practices and scientific knowledge.

(iii) Technical assistance to develop interactive exhibits and workshops on the Copán park for children.

(c) Archeological Parks Subprojects Subcomponent. This subcomponent would support activities considered priorities by the Copán Archeological Park Management Plan, including emergency subprojects (US$400,000) to be implemented prior to the conclusion of the Management Plan according to criteria defined in the Operational Manual. This subcomponent would finance the (i) Emergency Archeological Parks Subprojects and (ii) Archeological Management Plan Subprojects.

Component 2. Capacity Building and Communication (US$1.5 million; IDA US$1.5 million). The objectives of this component were to support the capacity building of ILC staff and volunteers and develop a communication strategy to the public and corporations. This component would support:

(a) Development of a communication and dissemination strategy, including planning fundraising activities, informing the private sector, and creating social ownership.

(b) Design and implementation of a program to develop a body of professionals and volunteers at the national level; to research, design, and implement the ILC; to manage and reconstruct archeological parks; and to design a special program for volunteers and for college students to function as the ILC guides.

(c) Design and implement an environmental (ecological sites, archeological parks, national parks, and biological reserves) and cultural resources inventory (cultural sites) and store it in a database that is accessible to the users of the ILC.

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(d) Design of the Copán Archeological Park Management Plan, which will identify priorities for research and reconstruction.

(e) Design and implement a social assessment to (i) identify the main stakeholders of the project and their respective stakes, including international stakeholders and private sector; and (ii) ensure that ILC exhibits are not gender biased and are appropriate to the social diversity of the country.

Component 3. Project Implementation Unit (US$1.1 million; IDA US$0.9 million). The objective of this component was to develop and strengthen the capacity for managing, monitoring, and evaluating the project in the Project Implementing Unit (PIU). The project would support capacity building in project management, including finance and administration, ILC design and exhibitions, engineering, procurement, and monitoring and evaluation.

Institutional Arrangements. The implementing agency was the Consejo Hondureño de Ciencia y Tecnología (Honduras Council on Science and Technology) (COHCIT). Since COHCIT was a relatively new agency and did not have experience with civil works, it was agreed that, given its experience with civil works in IDA-financed projects, the Secretaria de Obras Publicas, Transportes y Vivendas (Ministry of Public Works, Transport, and Housing) (SOPTRAVI) would collaborate and provide technical assistance to the PIU on both the construction and supervision of the ILC and procurement.

IDA required that a nongovernmental organization (Profuturo Foundation) be established to manage the ILC to ensure its financial sustainability and sound management. As a condition before the start of the ILC civil works, this foundation had to be created legally and endowed with a minimum of US$1.5 million. The by-laws of the foundation were reviewed by IDA (including sound financial management for the foundation and for the trust fund). The Board of Directors included representatives of the Ministry of Finance, COHCIT, and some of the largest private sector companies in Honduras.

For the activities and archeological work in Copán, the Instituto Hondureño de Antropología y Historia (Honduran Institute of Anthropology and History, IHAH) of the Secretaría de Cultura, Arte, y Deportes (Ministry of Culture, Art, and Sports, SCAD) provided technical assistance and collaborated with the PIU, similar to the role played by SOPTRAVI in the construction of the ILC. It also was agreed that, through an Implementation Agreement with the PIU, an NGO with proven expertise in Honduran archeological sites would carry out the Pre-Hispanic contribution subcomponent, including training local residents and indigenous peoples as guides and researching Pre-Hispanic practices and scientific knowledge in the Copán Park.

3.4 Revised Components:The Supplemental Credit introduced the Distance Learning Center as a new activity in Component 1 (Table 1), established a new Closing Date of October 31, 2004 (two additional years), and increased Component 3 by a minor amount to ensure full functioning of the PIU until project completion. The total project cost was increased to US$13.9 million equivalent, with additional IDA financing of SDR 3.2 million (US$4.0 million equivalent) for a total IDA financing of SDR 9.4 million (US$12.3 million equivalent) and total government counterpart financing of US$1.6 million.

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Table 1. Original components and changes with supplemental credit (US$ million) Component Original amount Original + supplemental 1. Sustainable Resources Development 6.7 10.7 2. Capacity Building and Communication 1.5 1.5 3. Project Implementation Unit 1.1 1.7 Total 9.3 13.9

The Supplemental Credit would finance the (a) construction of a DLC Annex and purchase of equipment and (b) support for the DLC establishment and operation. The operating costs would be financed at a decreasing amount for the first three years of operation while the facility is establishing a clientele and financial sustainability.

Adjustments in 2002. In 2002, a new administration took office and proposed to transform COHCIT into a foundation.[3] To more closely link the DLC to the new proposed COHCIT structure, the GOH requested several adjustments in the plans for the DLC. IDA approved the following adjustments: (a) in addition to the DLC in Tegucigalpa, a satellite DLC would be established in San Pedro Sula to incorporate the large private sector market in that region of Honduras; and (b) rather than modify the ILC building for the DLC, a custom-built facility would be added on property adjacent to Chiminike.[4]

3.5 Quality at Entry:ICR Rating: Satisfactory. The quality at entry is considered satisfactory since, first, the project was very responsive to the GOH’s needs at that time. Second, even though it was redesigned quickly after Hurricane Mitch, the project included a strong participatory focus, extensive analyses of the institutions involved, a pilot social assessment, incorporation of an environmental specialist on the team, and significant attention to sustainability issues.

Country Assistance Strategy. The project supported the objectives in the Country Assistance Strategy (CAS 1993) including environmental management and sustainable development through the ILC’s interactive exhibits; human capital development and education through the ILC’s hands-on exhibits and children’s museum in Copán; and poverty reduction through supporting the conservation of the Maya heritage in Copán and job creation associated with the tourism industry. A new CAS that included the PROFUTURO Project was under preparation when Hurricane Mitch hit, but its preparation was delayed. For PROFUTURO and other projects presented before the new CAS was finalized, the major elements of IDA’s short-, medium-, and long-term strategies and the proposed projects were summarized in the President’s Report for the Hurricane Emergency Project (P-7280-HO 1998).

Government Strategy. PROFUTURO had very strong support and ownership from the government at the highest levels. PROFUTURO was multisectoral and supported and enhanced the GOH’s strategies on sustainable development, education and science, and archeological management. The project supported COHCIT’s mandate to advise, formulate, and coordinate programs and actions to foster science and technology development in Honduras. PROFUTURO also would carry out emergency repairs needed in the Copán Archeological Park to help restore the tourism flow, and these actions would help serve as an input in the government’s tourism strategy.

Social/Gender Assessment. The Task Team Leader was a social scientist familiar with gender issues. A pilot social/gender assessment, funded by the Swiss Trust Fund, was carried out during preparation to learn how the ILC could improve children’s understanding of their world and the environment.[5] This

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assessment formed a part of the baseline for the monitoring and evaluation (M&E) system.

Environment. An environmental specialist was part of the core preparation team. There were no major risks identified, and it was expected that the project would have a positive impact on the environment. The original design anticipated that the building itself would be environmentally friendly with add-ons such as maximizing natural light and planting native species in gardens and green areas (both were incorporated).

The project incorporated lessons from Bank experience in Honduras and Central America that emphasized involving the main stakeholders in project preparation and flexible, but comprehensive, institutional arrangements. The Logical Framework for the project was prepared during a three-day workshop with the main project stakeholders, including the private sector. Related to the ILC, the project incorporated best practice by (a) establishing financial mechanisms to cover operating costs (Profuturo Foundation with an endowment); (b) establishing strong linkages with the communities and school systems (planned visits from schools); (c) obtaining support from the private sector (anticipated contributions and involvement in the Profuturo Foundation); (d) including an interdisciplinary focus (exhibits covering a variety of topics) and (e) embodying appropriateness and relevance to the historical, social, and cultural environment (inclusion of exhibits on the environment, the city, Honduras and its peoples, and the human body).

Risks. The project appropriately identified the main risks and mitigation measures. Yet, some risks related to the construction of the ILC were not fully assessed. These included (a) the significant increase in the cost of basic construction materials in the post-Mitch environment (financing needs subsequently were covered with increased government contributions, private sector donations, and a portion of the Supplemental Credit); (b) construction delays that extended the timetable into a new government administration (the original timetable was optimistically underestimated); and (c) the influence of the opinions of the Profuturo Foundation members on the construction of the building (including change orders that slowed down the construction process).

4. Achievement of Objective and Outputs

4.1 Outcome/achievement of objective:ICR Rating: Satisfactory. The project’s outcome is considered satisfactory. PROFUTURO successfully encouraged and expanded Honduran scientific, environmental, and cultural knowledge and management in the context of Honduras’ sustainable development needs and ethnic diversity. This objective was achieved with the opening of the Chiminike Interactive Learning Center,[6] the Distance Learning Centers in Tegucigalpa and San Pedro Sula, and the Casa K’inich Children’s Learning Center in Copán Ruinas;[7] and successful implementation of the training and Pre-Hispanic research activities in Copán. PROFUTURO had a significant multiplier effect as it helped mobilize private sector funding for Chiminike and other related grant and trust fund support. The success of the activities in Copán established a foundation for the preparation of the IDA-financed Regional Development in the Copán Valley Project (Credit 3764-HO 2003). The main outcomes and achievements are described below.

The Chiminike Interactive Learning Center. The Chiminike ILC opened on November 1, 2003. Since opening, it has had over 200,000 visitors from 17 of the 18 departments of Honduras and 22 foreign countries. Overall, Chiminike has received very favorable comments from visitors and has shown its value as a pedagogical instrument that supports the formal education system.

The ILC is an impressive building, located on a bluff in Tegucigalpa. The facility is approximately 7,500 sq. meters[8] and includes a large vestibule at the entrance; six large exhibit halls; a ticket counter; an auditorium with top-of-the-line AV equipment (donated by the Embassy of Japan); offices for the Profuturo

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Foundation and COHCIT; space for other office rentals to generate income; rooms and patios for special events, parties, workshops; a courtyard with a snack bar in a renovated train car; an anti-gravity house (slanted floors and ceilings);[9] large interactive outdoor exhibits; and a parking area and landscaped green areas. The building was constructed to resist earthquakes.

The six exhibit halls contain displays and interactive activities on the themes of:

· Maternity (rocking chairs, toys, and activities for mothers and babies) · Nursery (small exhibits for toddlers gearing towards learning new skills) · Environment (focused on sustainable development and how citizens can better interact with their surroundings in a safe and friendly manner) · Human Body (learning for children on DNA, the human body, hygiene, health, touch, smell, and memory, respiratory and digestive systems and illnesses) · City (introduces visitors to the main institutions in an urban area including a supermarket, a bank, and television and radio stations) and · Honduras and its People (showcases gender and the social and cultural diversity of the country).

There are 69 exhibits in the entire facility (just under the target of 80 exhibits), financed by the Credit, private sector donations, other donors, in-kind contributions, and the Profuturo Foundation. Many exhibits were purchased from designers in the United States and others were produced locally in Honduras, with very good quality (see sample exhibits in Table A9.1). In addition, the Rural Land Management Project (an IDA-financed project) developed an exhibit on the ecosystems and land of Honduras (approximately $50,000) that was installed in the Environment room. The development of the environmental and cultural resources inventory that was to be installed in Chiminike was not pursued and eventually was cancelled by government request.

Chiminike opened during the last two months of 2003, during which just over 26,000 visitors visited it. Chiminike is attracting its target audience of children, youth, parents (families in general), teachers, the general public, and tourists. During the second and third years, there were nearly 100,000 visitors a year (approaching the original estimate of 150,000 in year 2). The number of visitors under age 18 was approximately 70 percent in 2004 (the original goal), but it was only approximately 59 percent in 2005 (table A9.2). At the close of 2005, a total of 1,885 public and private schools had visited Chiminike (table A9.3). All of the public school visits (approximately half of the total) are subsidized by a program established by the Profuturo Foundation and funded by donations from the private sector that covers entrance fees, transportation, and a snack for those students. It is estimated by the Profuturo Foundation that during 2003–04, approximately 80 percent of the schools visited Chiminike to reinforce concepts presented in the classroom, greatly exceeding the target of 25 percent of the schools using Chiminike in the first year. During 2004, the Profuturo Foundation provided training to approximately 60 teachers per week prior to the visits of the schoolchildren.

Survey of Children VisitorsTwo baseline studies were carried out during preparation to evaluate the understanding and appreciation of Honduran children and youth about their country, its environment, and people. Both of these studies, done relatively soon after Hurricane Mitch, were quite biased toward a negative attitude about the environment. To assess the impact of visiting Chiminike on the attitudes of Honduran children about their country, a follow-up survey was carried out in early 2006 among a sample of 260 children (140 girls, 120 boys) from 2 public schools in Tegucigalpa of average age of 10 years old before and after a visit to Chiminike. This was a small perception survey carried out by the Profuturo Foundation with its own resources. The survey showed that a visit to Chiminike had a positive impact on the children considering that their perceptions

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prior to the visit were generally average to low-average. After the visit, approximately 75 percent of the children surveyed considered that they knew more about Honduras and 80 percent valued their country more (see full results in table A9.4).

Inclusion FundIn 2002 during the construction of Chiminike, the IDA task team was awarded a US$5,000 grant from the Inclusion Fund (the Norwegian Trust Fund for Disability and Development) to integrate a comprehensive disability dimension in the ILC. A local specialist was contracted to provide detailed guidance to make the facility, exhibits, signs, displays, and the experience accessible and useful to disabled visitors (physical disabilities and blind and hearing-impaired children).[10] Most of these recommendations were incorporated with available funding.

Distance Learning Centers (DLCs). The first official event for the Honduras DLC was held on November 12, 2003. This event was held in a temporary location in the ILC during the construction of the new facility. (The World Bank office in Tegucigalpa also was used for DLC events until the new facility was opened.). At the same time as the new construction, the space for the DLC in San Pedro Sula was being identified, remodeled, and equipped. In March 2005, the fully equipped and operating DLCs in Tegucigalpa and San Pedro Sula were officially inaugurated.

Courses and Content. The DLCs have supported the learning objectives of PROFUTURO by creating, supporting, and providing the facilities, network, and technical assistance to implement three types of learning events:

1. “Global dialogues”–multi-country (usually 5–8 countries) videoconferences around policy-related topics2. Online or blended courses, commonly with local facilitation3. Seminars––multicountry videoconferences in which the primary presenter is in one location and discussants elsewhere.

To date, the two DLCs have offered over 130 multicountry learning events reaching upward of 3,000 participants in Honduras (2,421 participants in the first full year of operation), and have been active participants in the Bank’s Global Development Learning Network (GDLN) LAC Community and its governance structure. The content of the learning events offered in the DLCs has focused on private sector development, poverty reduction, rural development, education, and health.

In 2005, the first year of operation, there were approximately 88 events, representing utilization rates of 43.2 percent (Tegucigalpa) and 42.0 percent (San Pedro Sula). The original target was 60 percent utilization rate by year three of operation. The performance of the Honduras DLCs was ranked against comparable LAC Distance Learning Centers in terms of learning events participated in or offered. As of March 2006, the Honduras DLCs were ranked 10 out of 20––meeting the target of being between 5th and 10th and improving from the 13th position in early 2005.

Evaluations. Participant evaluations in both DLCs show a high degree of satisfaction and relevance of the content (in most cases, exceeding the target of 80 percent satisfaction). When participants in the San Pedro DLC were asked if they would participate in future activities, 93 percent responded positively with Good or Very Good. Nearly 95 percent of participants responded positively when asked if the theme of the dialogue was relevant to the development of the Region. In the Tegucigalpa DLC, nearly 100 percent responded positively when asked about the general value of the activity and the value of the information obtained (see Annex 10 for additional information).

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Partnerships. COHCIT has carried out awareness-raising about opportunities for collaboration with the academic sector––an important goal agreed by all––and has initiated a working relationship with several of the country’s universities. It also has developed sectoral partnerships with the chambers of commerce and private sector associations. These partnerships have resulted in the beginnings of a Honduran national network, which COHCIT is facilitating by defining roles and operational coordination. At the time of preparation of the Implementation Completion Report (ICR), this network included five universities, a Honduras foundation on agricultural research, and a private sector association.

During 2005, in addition to participating in the GDLN events of other countries, the Honduras national network developed and delivered its own activities to the Region. For example, an agricultural university shared its expertise through a Dialogue on Biotechnology and Bioethics. COHCIT offered a dialogue on Information Technology in Higher Education and was voted by the GDLN to be awarded seed fund money to develop a course on international standards for food safety. Bringing together this group of academic institutions with the public sector was a major achievement. It was the first time that most partners had worked between sectors and even between competing universities.

Financial Sustainability. Given the delays in completion and launch of the DLC one year prior to the completion of the ICR, it is premature to predict the long-term financial viability or impact of the GDLN’s presence in Honduras. A number of important decisions related to the direction of the GDLN are also pending full engagement with the new administration, which took office in early 2006.

In early 2005, the sustainability of the centers was questionable, but following Bank missions in October 2005 and March 2006, and additional discussions with the new administration in COHCIT and the Ministry of Finance, indications are that COHCIT is working toward making the centers sustainable. It is doing so by creating linkages with the private sector and other partners, working with the education sector to provide extensive teacher training in coordination with the IDA-financed Education Project, and building on the Inter-American Development Bank's (IDB) project to connect small municipalities to the GDLN. Even though signs are encouraging, it is still not possible to anticipate the new administration’s priorities and decisions regarding the DLCs. It is important to note that the Latin America and Caribbean Region Knowledge Management team has been providing, and will continue to provide, support to the new team in COHCIT as part of the GDLN network as it builds the sustainability of the centers.

The Supplemental Credit was to finance a percentage of operating costs for three years. At the end of that period, the DLCs were expected be financially sustainable. However, there were many delays. They included approximately 24 months between Board approval and project effectiveness, changes in the government administration, new priorities, and construction. Even with a one-year extension to the Closing Date specifically for the DLC-related activities, the Supplemental Credit financed the DLC operating costs for only one year. However, based on the experience with DLCs in other countries, the achievement of financial sustainability through participant fees alone has proven largely nonviable due to limited ability/willingness to pay. Some other options being considered in the GDLN system include aggressive revenue generation, adopting the GDLN as a core business integrated into the budget of the country or of other projects, and the introduction of Internet 2, which can cut connectivity charges and substantially reduce operating costs.

Based on these opportunities, and if developed as part of a National and Regional Network, the Honduras COHCIT DLCs are believed to have a strong potential for sustainability. Indeed, according to the San Pedro Sula Director, that center was able to achieve sustainability within its first year of operations—truly a remarkable achievement. Through an aggressive marketing and promotional campaign, the San Pedro

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Sula DLC was regularly bringing in new potential clients and learning activity participants. The DLC also was cross-supporting participants with little ability to pay by offsetting these training activities with those carried out with wealthier private sector companies, such as Franklin Covey and ISO 9001. The development of the San Pedro Sula GDLN network was very well integrated across the private and public sectors, civil society, and academia. The universities and other local organizations all had been meeting together to move forward as a group in advancing GDLN there. They also had gained strong support from the chamber of commerce—a strong ally in the North of Honduras, the industrial “capital.”

The Tegucigalpa DLC was somewhat less proactive in developing these partnerships and has had a slower transition from viewing the DLC as a “project” rather than an initiative and a network that COHCIT needs to grow.

The GDLN presence in Honduras has evolved from the original vision, in line with lessons learned elsewhere in the Region. This evolution has affected the fundamental drivers of the network, the types of content it offers, the expected outcomes, and the structure that can achieve them. Considerable efforts are needed to ensure that the GDLN presence in Honduras achieves its potential and does so cost effectively. Experience from across the Region suggests that these challenges and opportunities are greatest when the GDLN presence is located in, and driven by, the public sector. The evolution of the GDLN in the LAC Region gives clear guidance in this regard. LAC’s experience demonstrates how, if so motivated, government can use the GDLN as the basis to expand dialogue within its own borders and to access international expertise. The role of COHCIT offers real opportunities to identify and maximize synergies, particularly as they relate to the advent of new technologies (Internet 2 being a prime example). While it is too soon to predict how the GDLN presence will develop in Honduras, the signs are that COHCIT is adopting best practice from other countries, namely, that GDLN thrives best when developed as a broad-based, geographically dispersed community of stakeholders, as the basic model. A full discussion of the operating costs and future financial sustainability of the DLCs appears in Section 6.1 and Annex 10.

Pre-Hispanic Heritage Contribution. The activities carried out in Copán include the training program for local residents, research program, emergency archeological subprojects, and the small Maya children’s museum. These activities generated and shared knowledge and disseminated this information to a wide variety of audiences. This program served as a multiplier effect, enabling the Bank to leverage grant support to expand and enhance the program with local communities (Section 4.2). The successful implementation of this small program led to the GOH to request IDA financing for a Regional Development in the Copán Valley Project, which builds on many of the concepts and lessons learned from this activity, such as the importance of tourism development for economic growth. As result of PROFUTURO support, stakeholders and local residents have developed a better understanding of cultural resources and the economic opportunities that they can generate (Section 4.2 provides details on this activity).

Capacity Building and Communication. PROFUTURO supported the organizational development of the Profuturo Foundation as it created social ownership of the ILC, carried out fundraising activities and campaigns, and built its capacity to organize and administer the ILC. The foundation successfully raised funds to exceed the needed endowment threshold and built strong support from the private sector in Honduras. In October 2003, prior to the opening, the facility was officially transferred from the GOH to the Profuturo Foundation for administration and operation. Chiminike is managed by a director who reports to the foundation. Approximately 61 people are employed in Chiminike: 37 are educational guides; 24 are administrative personnel; and there are 52 are volunteer guides in social education.

Management Plan. The Copán Archeological Park Management Plan was developed in consultation with stakeholders in the area, although the final delivery was delayed. In agreement with the GOH, the funds for

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the subprojects to be identified in the Management Plan were shifted to two additional emergency subprojects in the Copán Park and needs in the ILC. The new Regional Development in Copán Valley Project is now using this Management Plan to prioritize civil works in the Copán Park.

4.2 Outputs by components:Component 1. Sustainable Development Resources. Satisfactory. The overall achievement of this component is satisfactory, since the project successfully completed all the planned activities, in some cases going above and beyond what was originally planned. Yet, the project also experienced delays in the ILC and the preparation of the Copán Archeological Park Management Plan. The opening of the DLCs also was delayed, which had an impact on the planned execution of the operating costs and the transition to full sustainability.

A. ILC Subcomponent. Satisfactory. Chiminike is open and is receiving thousands of visitors from all over Honduras and the world. The process of design and construction of this type of facility, which is unique and unlike any other building in Honduras, was a challenge for COHCIT and the construction and supervisory firms. There were delays in construction, such as that the facility opened three years later than the original estimate. Some delays were inherent from the beginning since the government and the Bank were overly optimistic about how long to finalize the bidding and design process. Other delays were due to the initial inexperience of COHCIT staff in civil works supervision and changes introduced during construction. In addition to the civil works, PROFUTURO also financed exhibits, a plan to operate and maintain the building and equipment, including staffing, services, security, and administration; a training manual for guides; and a plan for concessions and services.

Study on Exclusion and Social Deviation. As part of the development of the ILC, in 2001 the Bank carried out a study on “Children and Adolescents in a Developing Society: Risks of Exclusion and Social Deviation.”[11] This study in Tegucigalpa of a total of 612 marginal, poor, and nonpoor households with children was designed to support the definition of outreach activities for Chiminike. This study validated the need for a space such as Chiminike that is not school or home to meet the learning and emotional needs of children and provided guidance for exhibit design and outreach programs.

B. Distance Learning Centers Subcomponent. Satisfactory. The Supplemental Credit was approved in May 2001 but was not declared effective until mid-2003, mainly due to government changes in early 2002 and the proposal by the new government to adjust the plans for the DLC as described in Section 3.4 above. There was concern at the time about the delays and the impact on the timeframe to create the DLCs and ensure operation for three years, but the government expressed a strong commitment to continue with the project. The government and the Bank also agreed to complete Chiminike prior to starting the construction of the DLC facility.

The construction of the DLC in Tegucigalpa was initiated in January 2004 and completed in October of that year. This subcomponent also included support for launching and building the GDLN network in Honduras; and developing a business plan, marketing strategy, inventory of training needs, and publicity strategy to support the learning objectives of the DLCs. Under COHCIT’s guidance, the DLCs evolved from the initial design in the Supplemental Credit, reflecting both the priorities of the administration and emerging lessons from the parallel evolution of the GDLN in the Latin America and the Caribbean Region. Annex 10 details the Learning Content of the DLCs, Quality and Relevance of the Content, the Business Model and Sustainability, and Partnerships.

C. Pre-Hispanic Contribution Subcomponent. Highly Satisfactory. This subcomponent consisted of three activities: (1) Archeological Subprojects; (2) Preparation of the Management Plan; and (3)

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Pre-Hispanic Heritage. This subcomponent also benefited from a PHRD Grant for implementation and support from the GENFUND, which helped to strengthen the project activities in Copán and establish a foundation for the IDA-financed Regional Development in the Copán Valley Project.

(1) Archeological Parks Subprojects. This activity was designed in response to Hurricane Mitch to finance (a) emergency archeological parks subprojects (to be implemented according to criteria defined in the Operational Manual); and (b) subprojects identified as priorities by the Copán Archeological Park Management Plan (these were not implemented, as described below).

(a) Emergency Archeological Subprojects in Copán Archeological Park. During late 1999 to 2001, PROFUTURO financed 21 emergency subprojects to repair important Mayan structures and areas in Copán Archeological Park damaged by Hurricane Mitch or in immediate need of preservation and protection from the elements. All of the subprojects were successfully carried out. This work contributed to the conservation of historically important and significant sections of Copán, such as the Archeological Court and the Tunnels and resulted in new archeological discoveries. Each subproject provided short-term employment and skills training for local residents. For example, nearly 60 workers were employed in the subproject to consolidate and restore the Archeological Court. Other subprojects employed 4 to 30 workers. All of the workers were trained in preservation techniques and the special care needed during this type of restoration (a sample of the works appears in Table A9.6).

(b) Copán Archeological Park Management Plan. The Management Plan was intended to balance conservation with increasing opportunities for education and tourism, taking into account local needs and demands and concerns about high-traffic areas. The plan also was to prioritize the nonemergency subprojects in the Copán Archeological Park to be financed by PROFUTURO and future investment.

The preparation of the plan benefited from input and participation from stakeholders, including participatory workshops and a consultation strategy with local residents and indigenous peoples. The firm sought to incorporate best practices in the management of parks in Latin America and incorporate a wide variety of stakeholders in planning and site management. The Management Plan consists of a resource inventory of Copán and nearby sites; evaluation of current management in the park and surrounding areas; prioritization of needs; and an operational plan for two years. Since the delivery of this plan was delayed, the funds allocated for the nonemergency subprojects were reallocated to other needs,[12] except for approximately US$100,000, which financed the last two emergency subprojects related to security in the park and rehabilitation of the Center for Archeological Research. This Management Plan forms the foundation for the investments to be made in Copán Park financed by the IDA-financed Regional Development in the Copán Valley Project.

(c) Pre-Hispanic Heritage. The Pre-Hispanic Heritage activity was implemented by a local NGO through an Implementation Agreement with PROFUTURO. There were three main activities: (i) a training program; (ii) a research and information program; and (iii) a small interactive learning center on the Maya civilization.

(i) Training Programs. The training program was a unique partnership among the GOH, a local NGO, and a university. The program consisted of four modules carried out during May 2000 to August 2001: (1) educate local residents and teachers on Copán and guiding skills; (2) educate indigenous residents on Copán and guiding skills; (3) create opportunities for university students to visit and learn about Copán; and (4) provide opportunities for higher-level students and professionals to participate in fieldwork and educational programs in Copán.

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(1) Local residents and teachers. The training program addressed the need for training and professionalization of skills for local residents currently working as guides in the Copán Archeological Park and those interested in learning about Copán and acquiring guiding skills. There 35 participants (15 women and 20 men, with most participants in 30–38 age range). There were more men than women in the training, but the relatively large number of women was positive because the guiding services in Copán are practically monopolized by men. At the time of the training, the Association of Guides of Copán had not accepted a woman as a member. A third of the participants (13), including 3 women and 2 local residents, were inscribed in the National Register of Tourism Guides under the category of Local Guides. The costs were waived as a courtesy by the Ministry of Tourism as the first group of guides that the country had certified. For participants with a secondary education, the Guide Training Course was accepted as a basis for the diploma in Tourism and Hotel Services.

(2) Indigenous residents. From December 2000–June 2001, 18 young adults representing 3 Maya Chortí communities attended courses and practical training provided by professors on Copán history and culture and English lessons. As a result of the training program and concurrent initiatives carried out by the Chortí organization and community leaders, many Chortí villages are beginning to make plans for tourism in their villages and for possible employment in the park. For example, after this training program, the Association of Guides of Copán invited two of the indigenous guides to begin training in the Park. The training program was timely and served as a catalyst for the aspirations and ideas that the communities have for tourism, which are now being supported by the IDA-financed Regional Development in the Copán Valley Project.

(3) University students. This training module was designed to expose university students to the rich history and culture of the Mayas as represented by Copán and other significant sites in the valley. Four basic lectures were provided during the school year on the Mayas and their neighbors and tourism as an agent of change in traditional societies. From July 2000–May 2001, the program organized 8 study tours of approximately 4 days each to Copán and El Puente, with a total of approximately 100 students participating.[13]

(4) Advanced students/professionals. This module was developed initially to attract a small number of teaching professionals at the university level to become involved in an intensive, long-term research project in Copán. A second module was designed to enhance the theoretical and practical training of advanced students. Attracting professors to commit to long-term research with only a limited stipend was difficult. The program was then adapted to involve key professors in the training program in Copán and to also include young professionals with the advanced students. Even with this adaptation, this part of the program was not as popular as expected since it was able to offer only a small stipend. Participants were selected to become involved in short periods of fieldwork and research on the Copán Valley and attend lectures and other events on diverse themes related to the Maya culture and its environment.

PHRD Implementation Grant. The GOH solicited PHRD grant assistance during implementation to help support the Sustainable Resources Development Component. A US$250,000 grant (2000–03) was approved to support diagnostics on youth in the project areas with a focus on gender. This grant was successfully executed, and the technical assistance provided concrete inputs in the work in Copán and the ILC.

Norwegian Trust Fund for Gender Mainstreaming—GENFUND. In 2002–03 the Bank task team secured GENFUND support of US$42,000 to pilot gender-specific capacity building activities and analysis to

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increase income generation opportunities for the Chortí indigenous communities who live near the Copán Archeological Park. The grant targeted women, and the lessons learned helped support the design of specific activities to generate and/or increase income among the Chortís in the IDA-financed Regional Development in the Copán Valley Project.

(ii) Pre-Hispanic Research Program. The research program was focused on learning about the landscape transformations of the Copán Valley during the last 4,000 years. This program united the efforts of numerous researchers with both public and private sector support from many agencies and companies. The research program employed approximately 30 Hondurans, including local residents and Chortís, and trained several university students. The program produced new theories related to the Maya world, particularly related to the characteristics of the natural environment at the time of arrival of the Maya in Copán and how the natural environment may have been transformed and adapted by its human inhabitants by drainage and terracing. This program also supported the identification and description of Chortí medicinal and ornamental plants, in coordination with Chortí communities.

(iii) Casa K’inich: Interactive children’s learning center on the Maya civilization in Copán. The design and implementation of the Casa K’inich was a collaboration among the local NGO acting as an Implementing Agency, a U.S.-based NGO, and the World Bank. PROFUTURO financed the design of exhibits, renovation of the building, fabrication and installation of the exhibits, and didactic materials. The 100 sq m Casa K’inich was installed in an old school building owned by the local government and is free to the public. All the exhibits are interactive with features such as sliding wooden doors to reveal hidden temples and constructing Maya sentences with plastic panels (see sample of exhibits in box A9.1). A teachers’ guidebook also was prepared in English and Spanish.[14] The Casa opened in January 2002 and in the first year received approximately 6,141 visitors. In 2003 there were just over 11,000 visitors, and in 2004 the number doubled to over 20,000, each year approximately 40 percent of whom were students. The local NGO maintains, staffs, and supports the space.

Poverty Assessment of Casa K’inich. An in-depth study of visitor poverty levels in the Casa K’inich was carried out with support from the Norwegian Trust Fund for Environmentally and Socially Sustainable Development.[15] An international consultant living in Copán carried out a survey of 819 Honduran youth visitors between the ages of 5 and 15 to the Casa. This study showed that the Casa K’inich is a good example of how low-cost, culture-based investments located in rural poor communities can be an extremely successful component of a larger rural poverty reduction strategy. The study also showed that the outreach programs need to be expanded to attract students from outside the urban area of Copán, particularly those in the more remote and rural areas. The study highlighted specific outreach to the indigenous communities including training a Chortí tour guide and providing transportation and a healthy snack for the children. The building that houses the Casa also has functioned as a catalyst for an urban renewal area in a previously deteriorated area in the city center of Copán Ruinas.

Component 2. Capacity Building and Communication. Highly Satisfactory. This component financed four main activities (1) help support the initial organizing work of the Profuturo Foundation, (2) develop a communications strategy for the public and corporations regarding the foundation and Chiminike, (3) support a pilot of COHCIT’s Aldeas Solares (Solar Villages) program, and (4) support the capacity building of staff and volunteers of the ILC.

(1) Profuturo Foundation. The Profuturo Foundation was officially established in January 2000. Its Board of Directors consisted of members from the private sector and Ministry of Finance. During the first year, the foundation focused on building the endowment, a constituency, and social ownership of Chiminike through meetings with private sector representatives and donors in Tegucigalpa and San Pedro Sula.

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Reaching the full amount of the endowment (US$1.5 million) took until November 2000, after which the civil works for Chiminke started.

(2) Communications Strategy. This component financed significant social and strategic communication about the foundation and Chiminike that included publicity; a fundraising plan; design of logos, brochures, documents, signs, placards, and the web site for the project and Chiminike (www.chiminike.org); and dissemination campaigns.

(3) Aldeas Solares. PROFUTURO supported the piloting of COHCIT’s Aldeas Solares Program, the initiative to provide centers for information and communication technologies, powered with solar energy to remote rural areas, supported by the Organization of American States. PROFUTURO financed equipment in the two pilot villages (San Ramon and San Francisco). In July 1999 San Ramon in Choluteca, the first solar village in Latin America was inaugurated. A Bank mission to San Ramon in January 2001 found that the solar energy showed immediate positive impacts with installation of public lights; lights in six classrooms, kitchen, and main hall of the school; power in every classroom for a computer, TV, and VCR; establishment of a community center; and refrigeration for the health clinic. The program has since added high speed internet access for these communities and is now known as the Solar Net Villages Program. At one point, the Bank had planned to support the expansion of this program, but the Inter-American Development Bank (IDB) became more involved and is supporting the expansion of this program with COHCIT.

(3) Training of Staff and Volunteers. PROFUTURO financed training of the ILC staff, guides, and volunteers. The strong corps of 52 volunteer guides provide tours to visitors and school groups describing the exhibits, showing children how to use them interactively, and providing narration on the purpose of each exhibit room.

Component 3. Project Implementation Unit (PIU). Satisfactory. The PIU was established with a full complement of staff. They participated in training and capacity building activities on children’s museums and on Bank procurement and financial management procedures. The PIU staff and the consultants involved in the design of the exhibits participated in study tours to children’s museums in the United States and Latin America (Colombia, Costa Rica, Mexico, El Salvador, and Venezuela) to learn best practices and lessons learned.

Overall, the PIU successfully executed a complex project that involved multiple simultaneous activities. However, some weaknesses were apparent at different times during implementation. For example, initially, the PIU struggled to implement the Loan Administration Change Initiative (LACI) system, a requirement at the time. Eventually, PIU staff were able to produce the reports, but by that time, the LACI was being transformed into the Financial Management Reports (FMRs), which were much more user friendly. The monitoring and evaluation of the impact indicators was weak throughout project implementation since the staff tended to focus more on process and outputs. Once Chiminike was completed and transferred to the Profuturo Foundation in 2003, as planned, the PIU was reduced to only a director and an accountant to implement the Supplemental Credit. Many of the skilled and trained PIU staff members were absorbed by the Profuturo Foundation and have helped to advance its potential. Yet, after 2003, there was no monitoring or evaluation of the impacts of Chiminike by the project because Chiminike had been transferred to the Foundation and all the PIU resources were allocated for the implementation of the DLCs. Other performance issues related to the PIU are discussed in Section 7.6.

4.3 Net Present Value/Economic rate of return:PROFUTURO was not subjected to a conventional economic rate of return analysis since its outputs were

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primarily institutional. The nonquantifiable benefits generated by the project are detailed in Sections 4.1–4.2.

4.4 Financial rate of return:A discussion of the operating costs and sustainability of Chiminike and the DLCs appears in Section 6.1.

4.5 Institutional development impact:ICR Rating: Substantial. The project had a substantial impact in the following four areas:

a) Strengthened COHCIT’s capacity. The human resource capacity and the institutional profile of COHCIT was strengthened during project implementation. In 1999, COHCIT was a new agency and had several small projects under implementation. PROFUTURO and the construction of Chiminike raised the profile of COHCIT. Currently, COHCIT is implementing an IDB-financed Solar Net Village program and other activities. The installation of the DLCs by COHCIT also helped to build their capacity to integrate new learning technologies, and establish linkages with other DLCs around the world.

b) Created new civil society organizations. PROFUTURO helped launch the Profuturo Foundation and Chiminike. The philanthropic sector in Honduras was strengthened because the foundation has private sector members, and Chiminike has received numerous donations from individuals and companies.

c) Launched the Honduras GDLN Network. The GDLN network in Honduras is in place, and the DLCs are building programs to work toward financial sustainability.

d) Built Foundation for Cultural Heritage and Tourism Promotion. The project supported the institutional development of the local NGO in Copán and of Instituto Hondureño de Antropología y Historia (Honduras Institute of Anthropology and History, IHAH), which both are playing more significant roles in the IDA-financed Regional Development in the Copán Valley Project.

5. Major Factors Affecting Implementation and Outcome

5.1 Factors outside the control of government or implementing agency:Rise in Costs of Construction Materials. Honduras experienced an unprecedented increase in the cost of basic construction materials after Hurricane Mitch. Although the project included contingencies, this significant increase had not been anticipated.

5.2 Factors generally subject to government control:Political Changes. The project was implemented during two government administrations, and the ICR was prepared during an election year. The political changes slowed implementation since each administration had its own priorities related to the project.

Counterpart Funds. On only one occasion, in late 2003, IDA was alerted by the PIU that the counterpart funds had not been provided. An official communication was sent to the Ministry of Finance, and the counterpart funds were provided.

5.3 Factors generally subject to implementing agency control:Consistent Project Coordinator. COHCIT maintained the same Project Coordinator during the entire implementation period, except for the final year. This contributed to a strong relationship between the coordinator and the Bank team and allowed for the resolution of a number of complicated problems related to project implementation.

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Delay in effectiveness of Supplemental Credit. There was a nearly two-year delay from the approval of the Supplemental Credit until project effectiveness. The construction of the ILC did not start for yet another year. The delays were due primarily to the change in government, the proposal to adjust the plans for the DLC, and the agreement to complete Chiminike before starting another construction effort.

5.4 Costs and financing:The total project cost was US$12.8 million equivalent, with US$11.2 equivalent financed by IDA and US$1.6 million equivalent financed by the Government of Honduras (Table 2). The original IDA Credit of SDR 6.2 million (US$8.02 million with exchange rate variations) was fully disbursed, and SDR 2.15 million (US$3.13 million with exchange rate variations) of the Supplemental Credit was disbursed (67 percent). The remaining amount of SDR 1.05 million (mainly unused operating costs) was cancelled.

Table 2. Actual project costs by financing source (US$ million) Source Total cost

(original)

Revised cost with supplemental

Actual total cost

% of revised cost

IDA 8.3* 12.3 11.2 91 GOH 0.9 1.6 1.6 100 Total 9.3 13.9 12.8 92 *Amounts are subject to exchange rate variations.

6. Sustainability

6.1 Rationale for sustainability rating:ICR Rating: Likely. Overall, sustainability is rated as likely. The sustainability of Chiminike, the DLCs, and the actions in Copán are described below:

Chiminke and the Profuturo Foundation. The sustainability of Chiminike and the Profuturo Foundation is highly likely. The institutional arrangement for the sustainability of Chiminike through the creation of the Profuturo Foundation gives reason for optimism for significant and increasing financial support by the international and local private sector and the international community. At the end of 2004, the endowment of the foundation totaled over US$2.0 million. The foundation is earning sufficient income from Chiminike to operate and maintain the facility; in fact, the foundation is investing in additional exhibits (Table A9.7).

In 2003, the foundation’s endowment covered 56 percent of the operating costs of the facility. With the increasing revenue from ticket sales and the use of the facility for income-generating activities, in 2004 the endowment’s contribution declined to only 36 percent. This percentage is much less than estimated in the Project Appraisal Document. It had been expected that the foundation would still be covering 80 percent of the operating costs by year 3. Some of the many income-generating activities in 2003–04 were graphic design courses for children, “Chimacampamento” summer camp for 30 days with workshops and activities for children, 20 seminars, 45 workshops, and 15 conferences.

Distance Learning Centers. After their one year of effective operation, it is premature to predict the eventual sustainability of the DLCs. Likewise, it is impossible to anticipate the decisions of the new COHCIT administration. Therefore, the sustainability rating is unknown. Sustainability will depend on decisions of the new administration, particularly related to selection of the business model and management of the centers. As mentioned above, based on recent discussions in March 2006, the new COHCIT administration is placing priority on building the sustainability of the centers with innovative and broad-based outreach to new partners, including the primary and secondary education sector and the

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private sector and universities.

The Honduras GDLN envisaged under the original project was designed to provide a framework for a low-cost and sustainable means of bringing world-class knowledge to participants in Honduras. Several factors limit a full assessment of the DLCs’ future sustainability:

(a) The project is, in effect, entering only its second year of operation. The San Pedro Sula DLC was able to demonstrate that the potential exists to rapidly scale up and, through a combination of partnerships and marketing, break even.

(b) Annual operating costs of the Honduras DLCs are high at US$343,561 total (most DLCs are in the range of US$150,000–200,000) and considerable scope exists to pare down staffing levels and costs to those in other countries (3–4 staff / DLC). These staff can be hired under existing government pay scales. Similarly, connectivity costs can be cut dramatically once Honduras connects to Internet 2. Overall, the total operating costs of the DLCs could be brought below $200,000/year. The staffing and costs of operation of the DLCs in Honduras are above those typically found (approximately US$157,000/year for the two centers). Similarly, connectivity costs, at US$73,000/year, are higher than any other country in Latin America (due to fixed costs of a leased line, see Annex 10).

In the Supplemental Credit, the DLC was expected to attain financial sustainability by its fourth year of operation, with DLC revenue covering 10 percent in the first year, and so on. After one year of operation, these projections clearly were not only realistic but, if opportunities are taken to cut operating costs (see Annex 10) and responsible management teams put in place, can be exceeded.

Income reported over 2004–05 (November 2004–September 2005) is US$31,457.56. This sum includes rental of rooms and computers and videoconferences. As such, the rate of return for the first year of operation is 9.16 percent (US$31,457.56 (Income)/US$343,561 (costs of operation)*100). This approximates the original estimate of 10 percent in the Supplemental Credit. It is estimated that both DLCs could be operated successfully for a combined total of $200,000 and that revenue sufficient to cover these costs could be generated well ahead of the fourth year of operations (Annex 10).

It is also noted that the original analysis and design of the DLCs was based on a model that has evolved considerably. Looked at more from a result-based approach, based on the existing drivers, the GDLN adds value beyond the training of public employees. The drivers and outcomes, which now support the network, relate more to the value of knowledge exchange among stakeholders, capacity development, and partnerships. It is this framework that provides guidance on the way forward, not simply the attainment of participant targets.

Activities in Copán Area. At this time, the sustainability of the activities financed by PROFUTURO in Copán is evaluated as highly likely since the IDA-financed Regional Development in the Copán Valley Project is building on the initial foundation established by PROFUTURO. The future sustainability of these actions will depend mainly on the continuing and increasing tourism flow to the park. Since Hurricane Mitch, tourism to Honduras, and specifically to the Copán Park, has continued to increase every year. The rehabilitation works carried out in the park will enhance the experience for visitors. The related investments, such as the Casa K’inich, will encourage visitors to also enter the main village of Copán Ruinas and spend money in stores and restaurants; and perhaps encourage longer stays. The training programs in Copán increased the human resource capacity in the local community, in the guiding field, and in the indigenous communities.

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6.2 Transition arrangement to regular operations:Chiminike is being managed by the Profuturo Foundation. The foundation has excellent staff and is exceeding expectations of income generation and ability to invest in new exhibits.

The opportunities for the future operations and sustainability of the DLCs are described above and in Annex 10.

As mentioned above, the IDA-financed Regional Development in the Copán Valley Project is financing the priorities from the Copán Archeological Park Management Plan (finalized under PROFUTURO). It is also improving the Casa K’inich and funding community tourism initiatives under a seed grant fund. The execution of this project has been very good, and it is expected to continue to perform well.

7. Bank and Borrower Performance

Bank7.1 Lending:ICR Rating: Satisfactory. The Bank’s performance during preparation was satisfactory. The Bank team prepared the project in approximately 8 months, and then quickly reoriented the project in approximately 6 months for Board presentation in May 1999. Even with the short timeframe, the project design was comprehensive because it was based on a pilot social/gender assessment, a three-day LogFrame workshop with the main stakeholders, and extensive consultations with the involved parties.

7.2 Supervision:ICR Rating: Satisfactory. The Bank’s supervision performance was satisfactory. The Bank carried out timely and well-staffed supervision missions, sometimes up to four times a year; and provided detailed, accurate, and timely reporting on progress. The Bank team was able to leverage nearly US$350,000 in trust fund/grant support to enhance project activities. The Bank also responded quickly to concerns in the project by contracting technical assistance as appropriate, such as when the Profuturo Foundation wanted an opinion on safety issues in Chiminike and the Bank identified a civil engineer to review the entire facility. During 2001 and early 2002, the PIU complained about the slow response to withdrawal applications and inquiries from the Disbursement Department, but there had been personnel changes in that department and the response time improved during 2002.

The project benefited by having one task manager and a consistent team for preparation and for nearly the entire implementation time (except for the last year of implementation when the LCR Knowledge Management team took over task management related to the DLCs). This consistency created trust and a level of confidence with the PIU and COHCIT.

The Bank responded promptly to the government’s request for a Supplemental Credit in 2000/2001 to create a Distance Learning Center and was able to justify this as a supplemental based on the introduction of new technology that would support the project’s objective. As detailed above, the new government requested some changes in the plans for the DLCs. Within the context of the Supplemental Credit, the Bank was able to respond to these changes and ensure that the project objective would be supported.

7.3 Overall Bank performance:ICR Rating. Satisfactory. Overall Bank performance is rated satisfactory. The Bank provided a solid project design with a good monitoring and evaluation plan. The supervision of the project was very consistent with close attention to fiduciary aspects.

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Borrower7.4 Preparation:ICR Rating. Highly Satisfactory. The performance of the borrower during preparation was highly satisfactory. PROFUTURO was designed in a difficult environment in Honduras after Hurricane Mitch, but it had very strong support and ownership from the government at the highest levels. The GOH considered the project a flagship initiative. COHCIT was very proactive in terms of providing information and facilitating preparation missions. The Government was very enthusiastic about the project, and even after Hurricane Mitch, they had unfailing determination to continue with the project and create an ILC for the children and youth of Honduras.

7.5 Government implementation performance:ICR Rating. Satisfactory. The Ministry of Finance was consistently supportive of PROFUTURO, and government counterpart funds were provided to the project in a timely way (the one exception in 2001 was resolved). Yet, COHCIT did note that there were some problems with the Ministry of Finance, particularly at the end of accounting periods, and some delays in requesting disbursement that slowed project execution. The Ministry of Public Works, Transport and Housing (SOPTRAVI) provided support to the PIU during preparation of the bidding process for the civil works of the ILC. This agency also participated in most of the meetings and discussions about the progress of the civil works and complications. SOPTRAVI’s support was very good initially, particularly in preparing the bidding process and the procedures. However, the agency was less helpful in advising the PIU on the day-to-day realities of carrying out civil works.

IHAH and SCAD supported the project activities in Copán. In early implementation, the quality of the Terms of Reference prepared by IHAH was weak. With guidance from the PIU and the Bank, the quality improved, and now IHAH is playing a very significant role in the IDA-financed Regional Development in the Copán Valley Project.

7.6 Implementing Agency:ICR Rating. Satisfactory. The PIU within COHCIT made several remarkable achievements during implementation over and above what was planned, including managing the complexity of the construction and exhibits of Chiminike and the relationship with the Profuturo Foundation and inaugurating not just one but two DLCs. Even though the performance of COHCIT was effective, it was uneven at times, particularly during times of government transition and after the PIU was downsized to execute only the DLC-related actions.

During most of project implementation, the PIU team was somewhat inexperienced in civil works implementation. As mentioned above, the unit was supported by SOPTRAVI for the construction of Chiminike, but this lack of experience likely contributed to the delays and some of the challenges faced during construction. The project also was novel so the PIU had to build consensus among all the influential project stakeholders.

In most of 2003, during the transition of Chiminike to the Profuturo Foundation and the subsequent downsizing of the PIU, the PIU’s performance was less than satisfactory. Some problems arose with the performance of the financial specialist, but a new accountant was hired and trained. Some of these problems contributed to the tardy presentation of the 2004 audit report and resulted in a downgrading of the PIU Management rating in the Project Supervision Report (PSR). During the last year of project implementation, the PIU was staffed by the Director of the GDLN and an accountant. The long-time Director of the PIU departed in September 2005.

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Procurement. Overall, the PIU was effective in following procedures and documenting the procurement processes for the Credit and the PHRD grant for implementation. Procurement post-reviews in 2001 and 2002 did not detect any significant problems but did advise the PIU that some of the documentation related to consultant contracts needed to be filed together. In the last year of implementation, the Bank team noted some problems with procurement, mainly the lack of transparency in the selection of consultants, most likely due to a lack of understanding of Bank procedures. The Bank team raised objections to these issues and worked with the new staff to ensure that policies and procedures were followed.

A Bank mission carried out a final post-review of procurement in February 2006. This review found that the procurement of civil works related to the DLCs was satisfactory and the quality of the construction was good. The mission also toured Chiminike and the tunnels emergency subproject in Copán and concluded the quality of both was very good. Nevertheless, in the last year of implementation, performance related to the procurement of goods and consultant services was less than satisfactory. The problems were connected to the procurement methodology and a high number of direct contracts. These findings were communicated to the GOH.

Audits. The audits of the project fulfilled the Bank’s main requirements. However, the delivery of the audit reports was delayed every year except one. The 2005 audit is not yet due. Government informed the Bank of the expected delay, but for 2002 and 2004, the delays were excessive (7 and 6 months respectively). The audit reports for 2002, 2003, and 2004 were issued with a qualified opinion by the auditor. Based on a review of the audits by the Bank’s financial management specialist, no significant accountability issues surfaced in the audits, but usually several minor problems were communicated to the Borrower and corrected.

7.7 Overall Borrower performance:ICR Rating: Satisfactory. Overall, borrower performance is rated as satisfactory. The Government of Honduras consistently supported PROFUTURO and worked diligently to make Chiminike and the DLCs a reality.

8. Lessons Learned

This project generated multiple lessons learned. They can be organized into general lessons, and lessons related to the ILC, the DLCs, and the Pre-Hispanic contribution activities in Copán.

General LessonsPartnerships and Networking. Project activities benefit from building partnerships and networking with the nonprofit sector, the private sector, universities, and other donor agencies. Nearly every activity financed under the project included the involvement of nongovernmental organizations and other nongovernmental institutions.

Learning by Doing. Introducing learning by demonstrating concepts has tremendous value, both in training and in developing exhibits for facilities. Chiminike is based on learning concepts interactively and the Casa K’inich exhibits are designed so that children learn by doing, playing, and experimenting with interactive exhibits. In addition, the guide training program in Copán strongly emphasized not only theory but also practical experiences such as field visits and workshops.

Construction of an Interactive Learning Center/Children’s MuseumExpect Complexity. In any type of construction project involving government and an NGO such as the Profuturo Foundation, a high degree of trust among the different agencies is essential. Civil works are

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complex, so strong communication is needed among all parties. Any planning timetable should include ample extra time for unexpected delays.

Establishment of Foundation and Endowment. For an institution such as the ILC, the establishment of a nongovernmental organization/foundation to manage the center with a significant endowment is a prerequisite. This formula follows best practice for children’s museums worldwide and proved to be particularly important. The successful transfer of a government-built institution to the nongovernmental sector was novel and is one of the most significant achievements of the project.

Distance Learning CentersEvolution of the Honduras GDLN presence as part of a Global Network. The original drivers that spurred the development of the GDLN were the ability to utilize Information and Communications Technologies to import training and capacity building to the public sector. However, the development and use of the network evolved and is now targeted more at the importance of knowledge sharing and dialogue among and within countries, especially within the Latin America and Caribbean Region (LAC). In the middle-income countries, as well as bringing high-quality content to the public service, the distinguishing feature of the GDLN is its ability to bring together policy-makers and other stakeholders to discuss key policy matters and share best practice.

Achieving Sustainability and Impact. Even after a single year of operations, clearly the GDLN’s presence in Honduras can achieve its original financial sustainability goals. However, for this to occur and at the same time for the network to achieve its potential, government will need to embrace GDLN for what it is and take maximum advantage of what it can offer. GDLN offers (a) identification and maximization of synergies with other technology-related projects, notably the Internet 2 and telecenters project; (b) identification of management teams to run the DLCs as knowledge brokers, not training facilities; and (c) acting in partnership with other national and international stakeholders. The DLCs should actively facilitate and nurture, not dictate, the operation of the national network of stakeholders, including the universities and public sector––all of whom are looking for this leadership. This partnership will support generation of revenues to meet operating costs.

Taking Advantage of the GDLN Opportunity. The network has evolved and now offers Honduras real opportunities to connect to the global knowledge economy. This relationship needs to be active––with Honduras showcasing its expertise and what it has learned from others. Recent examples of this evolution occurred in regional exchanges on the Central America Free Trade Agreement and the threat of Avian Flu to the Region. It is vital that the DLCs be empowered to work with government, donors, and other stakeholders to identify urgent needs and seek ways to meet them.

Cultural Heritage PromotionLocal Ownership and Decentralized Implementation. Most of the project activities in Copán, except for the emergency subprojects and the Management Plan, were carried out through an Implementation Agreement with a small but highly respected NGO. By keeping the work small and targeted and by linking the program to a trusted NGO, the program was accepted by local residents and had a very positive impact.

Small Scale. The Copán program was designed on a small scale to address priority problems in the park and to increase knowledge about the Pre-Hispanic world. The training program was designed to test the methodology to see how local residents and students responded to opportunities to learn more about the Maya world and Copán. The success of this small activity led to the preparation of the IDA-financed Regional Development in the Copán Valley Project.

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Growth in Tourism/Need for Environmental Management and Education. Tourism has grown exponentially in Copán and, given the current discussions for improved infrastructure and access to the site, the number of visitors is expected to continue to increase. The training in Copán included sensitization about the impact of tourism on the environment. Environmental training is continuing under the IDA-financed Regional Development in the Copán Valley Project.

Human Resource Capacity. During the implementation of the emergency archeological subprojects work, Honduras clearly lacked qualified experts and workers to carry out this type of restoration. This lack of local capacity also resulted in direct contracting for design and fabrication of exhibits for Casa K’inich, contracting of international experts for the research program, and the absence of local firms in the bidding on the Management Plan. Future programs should seek ways to build the human resource capacity of the country related to historical preservation.

9. Partner Comments

(a) Borrower/implementing agency:The executive summary of the borrower's contribution is in annex 8.

(b) Cofinanciers:

(c) Other partners (NGOs/private sector):

10. Additional Information

Official letter from the Government of Honduras regarding the ICR is below.

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Annex 1. Key Performance Indicators/Log Frame Matrix

Outcome / Impact Indicators:

Indicator/Matrix

Projected in last PSR1

Actual/Latest Estimate

1. In the ILC, a minimum of: 1.1 100,000 visitors (70 percent younger than 18 years old) during the first year.1.2 150,000 visitors (70 percent younger than 18 years old) during the second year.1.3 200,000 visitors (70 percent younger than 18 years

2003: 26,030 visitors (66% under 18) 2003: 26,030 visitors (66% under 18)

2004: 99,622 visitors (72% under 18)

2005: 96,907 visitors (59% under 18)

2. In Tegucigalpa, a minimum of:2.1 25 percent of schools use the ILC and the environmental and cultural resources database as part of their lesson plans in the second year.

No data available yet. 2003-04: By the second year, 80% of the schools use the ILC as part of their lesson plans. The resource inventory database was not implemented.

2.2 50 percent of schools use the ILC and the resource inventry database as part of their lesson plans in the third year.

No data available yet. See above.

3. The number of children expressing positive feelings towards the environment, their country, and its indentity has doubled from the base line one year after museum opening.

No data available yet. Survey before and after visit to Chiminike:75% know more about Honduras80% value the country more

Relative (ranked) performance of DLCs against comparable LAC Distance Learning Centers in terms of learning events participated in or offered.

DLCs: Measurable impact on local policy environment or performance of the public sector.

Distance Learning Center(s) financially sustainable beyond end of the project.

13th of 20 Distance Learning Centers

Development of sectoral partnerships with Chambers of Commerce, Banking Association and Universities.

April 2005: Sustainabity was questionable.

10th out of 20

Honduras DLC network established with five universities, a Honduras foundation on agricultural research and a private sector association.

Sustainability prospects have improved, but are still unknown as a new government took office in early 2006. See main text for a full discussion of sustainability issues and options.

Output Indicators:

Indicator/Matrix

Projected in last PSR1

Actual/Latest Estimate

COMPONENT 1PROFUTURO Foundation established

Foundation has funding from private sector in sufficient amounts to cover operational expenses of the ILC.

ILC Architectural and engineering design

Target: June 1999.

year- 2001: 95 percentyear- 2002: 90 percentyear- 2003: 80 percent

Target: Completed—June 2000

January 24, 2000 (decree creating Foundation signed by the President)

Year 1: 56% of operating costs covered (rest covered by income)Year 2: 36% of operating costs covered (rest covered by income)

Designs completed December 2000

Bid for the construction of the ILC

External and internal installations of 4000 square meters in accordance with the design and the technical specifications

Target Concluded—June 2000

Target: concluded 12/2000

Concluded January 2001

Chiminike is a facility of 7,500 sq. meters. It opened in November 2003.

Begin ILC construction Target: November 2001 Started January 2001

Eighty scientist/technical and cultural exhibits (4 per module) in accordance with technical specifications.

Target: installed by 01/2001 69 exhibits as of February 2006

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Cultural diversity exhibit defined Target: July 2000 Completed October 2003

Activities for teachers and parents

A package of at least six complementary activities (art workshops, craft workshops, teacher courses, holiday courses for children and young adults, music workshops, dance workshops, theater for children, temporary exhibits)

Target: Defined--Jan. 2001

Target: designed, supplied and, in operation by 01/2001

Defined--April 2002

In 2003/04 income generating activities included graphic design courses for children, Chimacampamento summer camp, workshops and activities for children, seminars, workshops, and conferences.

ILC services and technical facilities Target: Defined--end of June 2000 Chiminke opened Nov. 1, 2003. The Profuturo Foundation is evaluating the types of services that will work best in Chiminike.

ILC ready and open to public, including gardens

Funds generated by the ILC:

Funds obtained by the trust fund as follows:

Target: September 2000

Target: - 2001: 5 percent- 2002: 10 percent- 2003: 20 percent

Target: 12/1999: 1.5 million12/2000: 1.8 million12/2001: 2 million

November 1, 2003

2003: 44%2004: 64%

End of 2004: over US$2.0 million

College students identified and trained as guides

Target: 100 52 volunteer guides trained

Volunteers defined and trained for operation of ILC

200 staff trained by the end of year 2001

Target: 50

Target: By the end of 2001: 50 staff of Chiminike 100 college students to serve as guides

37 educational guides and 52 volunteer guides trained

Chiminike staff: 113 (37 as educational guides, 52 are volunteer guides, 24 administrative personnel).

DISTANCE LEARNING CENTERS

DLC fully equipped and operational

With TA from ISG, test of equipment of DLC

For DLC, define training packages

Business Plan for DLC

M&E systems completed for DLC

Willingness to pay survey for DLC

For DLC, consultant studies on content and implementation of market strategy

Increase in number of people trained in DLC

DLC utilization rate

DLC income/operating cost ratio

50% of content for DLC programs is defined and provided by partners

Quality and relevance of courses offered is evaluated Satisfactory or better by minimum of 80% of participants.

Target: September 2003

Target: September 2003

Target: First pkg defined June 2002

Target: Defined

Target: Defined

Target: Completed

Target: Completed

Target: 500 person days year 1; increase in 200% year 2; Increase in 200% year 3

Target: 60% by year 3 of operation

Target: Year 1 0.1; year 2 0.3year 3 0.6

Target: Fulfilled year 2; June 2004

Target: December 2003

March 2005

2004

Training packages were defined in 2002, 2003, 2004, 2005

Carried out in 2004

Carried out in 2004/2005

Carried out in 2004/2005

Carried out in 2004/2005

2003/04: 413 participants2004/05: 2,421 participants

2005: Tegucigalpa 43.2%; San Pedro Sula 42 %

Rate of return for year 1 was 9.16%

The San Pedro Sula DLC has been more successful in this regard. Exact % of content provided by partners is not available.

See Annex 10 with graphs of Participant Satisfaction surveys.

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COMPONENT 2Interactive exhibits and workshops for children in COPAN

Hardware and software to operate the environmental and cultural resources database available and installed

Target: Completed--end of June 2000

Target: Available and installed

Inauguration of Casa K’inich in February 2002. Completed--over 6,000 visitors in first year.

Activity cancelled.

Guides for the parks trained, university students, and teachers trained

Target: 100 by end of 2001 150

Research program Target: Concluded--Jan. 2001 December 2001 main results; dissemination event in February 2002 and continuing dissemination in 2002/03.

Management Plan for archeological sites and subprojects

Target: Completed; subprojects defined--end of June 2000

Management Plan delivered in late 2002. Subproject funding reallocated due to late delivery of plan.

Proportion of priorities in the management plan implemented in the archeological sites

Target: 100 percent All emergency works completed. Agreement to reassign funds for Management Plan subprojects.

Communication strategy is in place

Promotion materials, videos, and tourists brochures developed and distributed among 100 tourist agencies in Honduras, Central America and international.

Target: Completed Communication strategy established for Foundation and Chiminike.

Promotional materials distributed.

Number of community and dissemination campaigns for families, schools, tourists, and private sector defined and in place

Target: 10 Many dissemination campaigns were carried out. Exact numbers are not available, but it easily exceeded ten.

Training Programs for staff/volunteers Target: Defined and carried out. Training carried out in 2003/04

Number of teachers trained on the sustainable development programs of the ILC

Target: 500 During 2004, 60 teachers/week trained prior to visits of school children.

PIU fully staffed/trained.

PIU converts its tasks to PROFUTURO Foundation

Target: Completed

Target: Completed

Completed.

PIU was reduced to very small size just to implement the DLC with the Supplemental Credit.

1 End of project

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Annex 2. Project Costs and Financing

Project Cost by Component (IDA and counterpart in US$ million equivalent) AppraisalEstimate

Revised Estimate (Appraisal + Supplemental)

Actual/Latest Estimate

Percentage of Revised Estimate

Component1. Sustainable Development Resources 6.7 10.7 9.2 862. Capacity Building and Communication 1.5 1.5 0.8 533. Project Implementation Unit 1.1 1.7 2.8 165Total Project Costs 9.3 13.9 12.8 92Total Financing Required (excluding Gov’t) 8.4 12.3 11.2 91Totals are subject to exchange rate fluctuations and rounding.

Project Costs by Procurement Arrangements (Appraisal Estimate/Original Credit) (US$million equivalent)

Expenditure Category ICBProcurement

NCB MethodOther N.B.F. Total Cost

1. Works 3.2 1.5 4.7(2.7) (1.3) (4.0)

2. Goods 1/ 1.3 1.3(1.1) (1.1)

3. Consultant Services 2/ 2.5 2.5(2.5) (2.5)

4. Training 3/ 0.7 0.7(0.7) (0.7)

5. Recurrent Costs 0.1 0.1

Total 3.2 5.9 0.1 9.3(2.7) (5.7) (8.3)

Note: Figures in parenthesis are the amounts to be financed by the IDA creditN.B.F. = Non-Bank financing1/ Goods to be procured by NCB, international/national shopping (three quotations).2/ Consultants Services will be procured under QCBS procedures. 3/ Training consists of study tours, registration in courses, and other related expenses.

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Project Costs by Procurement Arrangements (Original Estimate Supplemental Credit only) (US$ thousands)

Expenditure Category Procurement Method Total Cost ICB Other N.B.F.

1. Civil Works a/ - 385.0 (346.5)

- 385.0 (346.5)

2. Goods b/ - 1,993.1

(1,804.6) - 1,993.1

(1,804.6) 3. Consultants a. Firms c/ - 901.1

(811.1)

- 901.1 (811.1)

b. Individuals d/ - 36.0

(32.4)

- 36.0 (32.4)

4. Training e/ - 31.9

(28.7)

- 31.9 (28.7)

5. Operating Costs f/ - 1,217.3

(870.1) - 1,217.3

(870.1) TOTAL - 4,564.4

(3,893.3) - 4,564.4

(3,893.3)

Note: Figures in parenthesis are the amounts to be financed by the Supplemental Credit.a/ Direct contracting through addendum to current construction contract for the PROFUTURO center with firm.

The estimated amount of proposed addendum represents approximately 9% of current total contract amount. b/ Other includes procurement by international and national shopping for DLC Equipment, either by Project

Implementing Unit or by an agent. c/ Consulting firms for development of partnerships, market analysis and business plan are expected to be hired

under QCBS procedures.d/ Individual consultants will be hired for technology review and business plan.e/ Includes workshops for technical staff to use and maintain the equipment.f/ Includes operating costs for operation of DLC, i.e. rental of satellite space (bandwidth and servicing cost), maintenance of equipment and vehicles, utilities, office supplies, incremental technical staff, conference materials, etc, and for operation of PIU.

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Project Costs by Procurement Arrangements (Actual/Latest Estimate based on Revised Amount*) (US$ million equivalent)

Expenditure Category Procurement Method Total Cost ICB NCB** Other*** N.B.F.

1. Civil Works (4.1) (3.6)

(1.0) (0.89)

(1.1) (0.91)

6.2 (5.3)

2. Goods

(1.3) (1.3)

(0.8) (0.7)

2.1 (2.0)

3. Consultants

a. Firms

1.51 (1.5)

1.51 (1.5)

b. Individuals

1.6 (1.6)

1.6 (1.6)

4. Training

0.4 (0.4)

0.4 (0.4)

5. Operating Costs

1.1 (0.6)

1.1 (0.6)

TOTAL (4.1) (3.6)

2.3 (2.19)

6.51 (5.71)

12.9 (11.2)

*Total of Original and Supplemental Credits. These amounts are based on information in the Procurement system of the Bank and on information provided by the Borrower. Total amounts may not add up due to rounding.**NCB was carried out for the works related to construction of the DLC in Tegucigalpa and acquisition of computer equipment.***Other includes a direct contract under an agreement with a supplier for equipment for the DLCs and international and national shopping.

Project Financing by Component (in US$ million equivalent) . Component Revised Estimate (Original

+ Supplemental) Actual/Latest

Estimate Percentage of

Revised Estimate IDA Gov’t IDA Gov’t IDA Gov’t 1. Sustainable Development Resources

9.8 0.9 8.3 1.05 90 117

2. Capacity Building and Communication

1.5 -- 0.7 0.03 47 --

3. Project Implementation Unit

1.0 0.7 2.2 0.49 220 70

TOTAL Project Costs

12.3 1.6 11.2 1.57 91 98

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Annex 3. Economic Costs and Benefits

N/A

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Annex 4. Bank Inputs

(a) Missions:Stage of Project Cycle Performance Rating No. of Persons and Specialty

(e.g. 2 Economists, 1 FMS, etc.)Month/Year Count Specialty

ImplementationProgress

DevelopmentObjective

Identification/Preparation3/98 3 TTL; Sector Leader; Technical

Specialist4/98 2 TTL; Technical Specialist5/98 1 TTL

Appraisal/Negotiation7/98 10 TTL; Technical Specialists;

Procurement Specialist; Lawyer; Education Specialist; Culture Specialist; M&E Specialist

10/98 5 TTL; Environmental Engineer; Procurement Specialist, Consultant; Financial Specialist

1/99 3 TTL: Environmental Engineer; Procurement Specialist

4/99 3 TTL; Procurement Specialist, Lawyer

4/99 2 Technical Specialists (Social/Gender Assessment)

Supervision

09/30/1999 2 TASK MANAGER (1); OPERATIONAL ASSISTANT (1)

HS HS

02/11/2000 1 OPERATIONS ASSISTANT (1) S HS03/21/2000 6 TASK LEADER (1);

ENVIRONMENT SPECIALIST (1); PROCUREMENT ANALYST (1); CONSULTANT (2); OPERATIONS (1)

S HS

05/06/2000

6/2000

11/2000

1/2001

1

3

6

TASK MANAGER (1)

PIU staff visited Headquarters

TASK MANAGER (1); OPERATIONS ASST (1); PROC. SPEC. (1) RATINGS: HS HS

MTR: TASK MANAGER (1); ENV. ENG. (1); PROC. SPEC. (1); CULTURE/COMMUNICATIONS SPEC. (1); OPERATIONS

S HS

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ANA (1); ENERGY SPEC. (1)

RATINGS: S S04/30/2001 2 TASK MANAGER (1);

CONSULTANT (1)S S

11/16/2001 3 TASK MANAGER (1); PROCUREMENT ANALYST (1); SOCIAL SCIENTIST (1)

S S

01/25/2002 2 TASK MANAGER (1); CONSULTANT (1)

S S

03/15/2002 4 TASK MANAGER (1); SECTOR MANAGER (1); INDIGENOUS PEOPLES SPE (1); OPERATIONS ANALYST (1)

S S

04/06/2002 3 TASK MANAGER (1); CONSULTANT (2)

S S

07/06/2002 3 TASK TEAM LEADER (1); CONSULTANT (1); PROCUREMENT SPECIALIST (1)

S S

02/15/2003 2 TTL (1); OPERATIONS ANALYST (1)

HS S

07/25/2003 4 TASK TEAM LEADER (1); CONSULTANT (2); ENGINEER (1)

S S

10/31/2003 2 TASK TEAM LEADER (1); SOCIAL SCIENTIST (1)

S S

03/12/2004 3 TASK TEAM LEADER (1); JPA (1); CULTURAL/TOURISM SPEC. (1)

S S

08/04 2 TASK TEAM LEADER (1); JPA (1)

S S

06/05 2 TASK TEAM LEADER (1); OPERATIONS OFFICER (1)

S S

ICR10/05 1 OPERATIONS OFFICER

(1)S S

3/06 1 TECHNICAL SPEC. (1)

(b) Staff:

Stage of Project Cycle Actual/Latest EstimateNo. Staff weeks US$ ('000)

Identification/Preparation 15 100,000Appraisal/Negotiation 10 78,886Supervision 50 259,279ICR 8 20,000Total 83 458,165

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Annex 5. Ratings for Achievement of Objectives/Outputs of Components(H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable)

RatingMacro policies H SU M N NASector Policies H SU M N NAPhysical H SU M N NAFinancial H SU M N NAInstitutional Development H SU M N NAEnvironmental H SU M N NA

SocialPoverty Reduction H SU M N NAGender H SU M N NAOther (Please specify) H SU M N NA

Indigenous PeoplesPrivate sector development H SU M N NAPublic sector management H SU M N NAOther (Please specify) H SU M N NA

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Annex 6. Ratings of Bank and Borrower Performance

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory)

6.1 Bank performance Rating

Lending HS S U HUSupervision HS S U HUOverall HS S U HU

6.2 Borrower performance Rating

Preparation HS S U HUGovernment implementation performance HS S U HUImplementation agency performance HS S U HUOverall HS S U HU

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Annex 7. List of Supporting Documents

Lindo-Fuentes, Hector and Tania Salem, 1999. Participatory Assessment for the Honduras Interactive Environmental Learning and Science Promotion Project—PROFUTURO.

World Bank, Project Status Reports #1- 23

World Bank, May 25, 1999. Project Appraisal Document, Honduras Profuturo.

World Bank, June 29, 1999, Development Credit Agreement: Honduras Profuturo.

World Bank, 1999. A Social Assessment: Family, Gender and Identity: Influences and Opportunities for Children in Honduras/Gender Analysis for the Honduras Interactive Environmental Learning & Science Promotion Project – PROFUTURO.

World Bank, May 4, 2001, MOP on a Proposed Supplemental Credit, Honduras Profuturo.

World Bank, October 17, 1999, Agreement Amending Development Credit Agreement.

World Bank, December 2002. “Guiding the Way to New Opportunities in the Copán Valley, Honduras.” Authors: Maria-Valéria Pena and Kathryn Johns Swartz, en breve, No. 14.

World Bank, April 2003, “Integration of the Disabled in the Chiminike Interactive Learning Center, Honduras.” Authors: Maria-Valéria Pena and Barbara Brakarz, en breve, No. 23.

Universidad Pedagogica Nacional Francisco Morazan, December 15, 2001. Formación y Capacitación de Maestros y Guias en la Zona de Copán.

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Additional Annex 8. Borrower's Contribution

Unofficial translation. Full text in Project files.

1. General Description of the Project.

Name: Interactive Environmental Learning and Scientific Promotion PROFUTURO Loan No.: 3250Country: Honduras.Region: Latin America and the Caribbean.Sector: Learning and Innovation.Borrower: Republic of Honduras / Honduran Council for Science and Technology (COHCIT,

by its acronym in Spanish)

2. Performance Evaluation of the Project’s Objective.

2.1 Original Project.

Background. The Interactive Environmental Learning and Scientific Promotion Project, PROFUTURO, was initially envisioned as a Learning and Innovation Loan (LIL). Its objective was to finance the construction and implementation of an Interactive Learning Center (ILC) as part of a broad cultural strategy for Honduras.

However, in late October 1998, Honduras underwent the impact of Hurricane Mitch, considered the worst natural disaster ever to affect the country in recent years. Due to the disaster produced by the hurricane, preparation was stopped, while the country’s emergency plan was developed. Once the emergency passed, the negotiations between the World Bank’s team and the Honduran Government (GOH) began.

The GOH expressed its interest in continuing with the Project’s activities, although it proposed a new approach in accordance with its current needs, based on the emergency and Honduras’ new challenge after the destruction caused by the hurricane.

ObjectiveTo encourage and expand Honduran scientific, environmental, and cultural knowledge and management in the context of Honduras’ sustainable development needs and ethnic diversity. PROFUTURO carried out the following activities:

(a) The design and implementation of an ILC as a nonformal educational center focused on the social, scientific and environmental needs for sustainable development. This ILC has been used since its inauguration in 2003 by boys and girls, primary education teachers and parents.(b) Support for recruiting and hiring the personnel and volunteers’ of the ILC and developing a communication strategy for the ILC.

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Revision of Objectives. The Project’s objective was not revised during its execution. However, in February 2001, the GOH requested IDA’s support to create an annex to the ILC, in which a Global Distance Learning Center (DLC) would be implemented as part of PROFUTURO. This annex was approved as a Supplemental Credit on May 31, 2001, for a total amount of SDR 3.2 million (Equivalent to 4.0 million US Dollars). The DLC’s main objective was complementary to the PROFUTURO Project, since new technologies supported the activities in line with COHCIT’s mission.

2.2 Original Components.The PROFUTURO Project had three components, financed with an IDA credit for SDR 6.2 million (Equivalent to 8.3 million US Dollars), and a local counterpart provided by the GDH of 0.9 million US Dollars, making a total of 9.3 million US Dollars.

A) First Component. Sustainable Development Resources. (6.7 million US Dollars; IDA 5.9 million US Dollars). Its objectives were: (i) To design and implement an ILC in the city of Tegucigalpa, in accordance with the social, scientific and environmental needs for sustainable development. This ILC is currently used by girls, boys, parents and primary education teachers in Honduras; (ii) Carry out subprojects in archeological parks. There were three subcomponents, which are detailed below:

I. The ILC subcomponent. This Subcomponent supported the implementation and development of a learning experience through different thematic spaces with interactive, informal and non traditional exhibits. The activities that were financed by this subcomponent were:- Infrastructure. The design of the building, as well as all architectural and engineering plans;- Interactive exhibits for different thematic classrooms, among which the following stand out: The City, The Environment, The Human Body, and Honduras and its People;- Activities and services for the community, such as workshops, lectures and seminars that reinforce the educational, social and cultural services;- Providing support to PROFUTURO Foundation –a non profit private organization- which manages and operates the ILC.

II. Pre-Hispanic Contribution Subcomponent. This Subcomponent supported research on different Pre-Hispanic practices and scientific knowledge, which is imparted to boys and girls, teachers and parents at the Casa K’inich (K’inich House), located in Copán Ruinas municipality. This center welcomes national and foreign visitors who come to enhance their knowledge of the Maya culture in the Valley of Copán area. The activities supported by this Subcomponent were:- Technical assistance to carry out studies on the contributions provided of the Pre-Hispanic culture to modern science; - Training of local residents to serve as guides in the Copán Archaeological Park.- Technical assistance for the development of interactive exhibits for Casa K’inich.

III. Archaeological Parks Subprojects Subcomponent. The objective of this Subcomponent was to support those activities considered necessary for the Archaeological Parks’ Management Plan, including Emergency Projects. The activities financed by this Subcomponent were:- Emergency subprojects in the Copán Archaeological Park.

B) Second Component. Capacity Building and Communication (1.5 million US Dollars; IDA million US Dollars). The objectives of this component were to support the development of skills of the ILC’s personnel, as well as to develop an advertising and communication strategy for both the public and

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private business sectors. The activities supported by this Component were the following:- The development of a media strategy for communication and dissemination of the ILC, which included fund raising activities, informing the private sector of the objectives of the ILC, and promoting a sense of social ownership.- The development and implementation of a program for the creation of professionals and volunteers to work in the ILC and in archeological parks.- The design of a Management Plan for Archaeological Parks (completed with significant delay).- The design and implementation of a social assessment to identify possible stakeholders for the Project, and their corresponding stakes. Also, to ensure that the ILC exhibits don’t present gender bias and are adequate to the Honduran reality.

C) Third Component. Project Implementation Unit (PIU) (1.1 million US Dollars; IDA 0.9 million US Dollars). The objective of this component was to develop and strengthen the management, monitoring and evaluation abilities of the PIU. The Project supported the capacity for Project Management, including financing and administration, the design of the ILC building, the exhibit rooms and the corresponding exhibits. The main activities included: - Short term recruitment of national and international specialists.- Training provided by national and international specialists.- Recruitment of a consultant to develop an Information Management System (IMS) for the Project, to be used as a tool for financial monitoring and evaluation, as well as measuring the performance and social impact of the loan.- Carry out study tours through Latin American countries that have an ILC, such as Venezuela, Colombia, Costa Rica and Mexico, as well as participating in related events.

2.3 Revised Components. The supplemental credit introduced the Distance Learning Center (DLC) as a new activity within the First Component., thus establishing a new date for the end of the Project, October 2004 (two more years), and increasing–on a smaller scale-the Third Component, to ensure the performance of the PIU until the end of the Project. The total cost of the Project increased to 13.9 million US dollars, with an additional IDA financing of SDR 3.2 million (equivalent to 4.0 million US dollars), reaching a total of SDR 9.4 million financing by IDA (equivalent to 12.3 million US Dollars) plus a counterpart of 1.6 US dollars from the GOH. The Supplemental Credit financed the following:(a) The construction of a DLC Annex and purchase of equipment(b) Support for the establishment and operation of the DLC

The operating costs related to the DLC would be financed in a decreasing sum during the first three years of operation, while it establishes a clientele and reaches financial sustainability.

2002 Adjustments. In 2002, a new government took office in Honduras, which resulted in changes in COHCIT. The new authorities proposed transform the institution into a Private Foundation, which would be responsible for the management and operation of the DLC. Therefore, to have a better connection between the DLC and the new COHCIT structure, the GOH asked for adjustments on the DLC plans. The adjustments approved by the IDA, were:- Implement a DLC in the city of San Pedro Sula, in addition to the DLC in Tegucigalpa, which would incorporate the broad private commercial market of the northern region of Honduras.- The new COHCIT administration recommended the construction of a small building next to the ILC, in which the DLC would operate, instead of setting up the DLC within the ILC.

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3. Description of Activities/ Results of the Project.3.1 First Component. Sustainable Development Resources. A) CHIMINIKE Interactive Learning Center. The CHIMINIKE Interactive Learning Center was executed by the GOH through COHCIT. The implementation of the ILC took place between 1999 and 2003. The most intense construction stage was carried out between 2001 and 2002, when the building and implementation of the exhibit rooms and their exhibits were completed.

On October 2003, the GOH transferred the CHIMINIKE ILC to the PROFUTURO Foundation, a non profit private organization that is operating and managing the CHIMINIKE ILC. The members of the Foundation include distinguished businesspeople in Honduras who actively participate in the management of the ILC.

CHIMINIKE opened its doors to the public on November 1, 2003, with six thematic exhibit halls, each with corresponding exhibits. These exhibit halls are:- Childcare/Nursery Area- Preschool Area- ”The City” - “The Human Body” - “Environment” - “Honduras and its People”

In September 2005, more than 190,000 people had visited the CHIMINIKE ILC, which has received encouraging feedback on its performance, and the valuable support it provides as a pedagogical tool that supports formal education through its Thematic Exhibit Halls and the exhibits.

The Profuturo Foundation established as its mission to “stimulate the curiosity and the imagination of our visitors through the exhibits, science and technology programs and resources to identify the culture, art, and values of Honduras” and its vision to “be an institution that supports an environment, unique in Honduras, where children, youth, and adults can be inspired to achieve their dreams.” The Foundation offers a better understanding of sustainable development and the social values that are essential for the wellbeing of our country.

Thanks to the efforts of the PROFUTURO Foundation, through its Board of Directors and the administrative and technical personnel at the ILC, thousands of boys and girls from public and private schools have been able to visit the Center, thus supporting teachers in the delivery of the educational contents of the National Curriculum.

Poor boys and girls who attend public schools have been able to visit the ILC thanks to a Sponsorship Program, which includes visits to the Center, transportation and a snack. Furthermore, thanks to the design of the building, several visitors with special needs as well as senior citizens have visited the ILC since its opening.

Since its opening, in line with its Mission and seeking to attract more visitors, the PROFUTURO Foundation has built new exhibit halls and exhibits from its own resources, to contribute to overall childhood development.

The number of visitors to the ILC increases every day. Most visitors are boys and girls under 18 who attend private and public Primary schools (First grade to Ninth grade).

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As a part of the commitment to support nonformal education in Honduras, the ITC has a series of programs and Projects that include recreational and interactive learning activities for boys and girls from the entire country.

It is important to mention that the ILC receives visitors not only from Tegucigalpa, but also from all over the country and foreign countries.

B) Pre-Hispanic Contribution. The activities carried out at Copán have had an important impact in terms of archaeological preservation, knowledge and spreading of information to the visitors of the Copán Archaeological Park. This small program led to the GOH’s request to IDA to finance a Regional Development in the Regional Development in the Copán Valley Project, which has been executed based on lessons learned and knowledge obtained during the execution of the PROFUTURO Project.

This subcomponent supported a training program, research and information, and the establishment of Casa K’inich.

The Training Program integrated four subprograms, targeting: - Local teachers and residents. 15 women and 20 men were trained for 44 hours on various skills which included Archaeology, Astronomy, Biodiversity, Communication, Ethno-history and Indigenous Peoples.- Indigenous Residents.18 young adults attended representing three Maya Chorti communities. - University Students.100 students attended lectures on the Maya culture.- Advanced Students and Professionals. 12 participants from different disciplines participated in short workshops focused on field investigations. They also participated in lectures on different topics.

One of the most interesting outcomes of this Subcomponent is the introduction of the Interdisciplinary Research Concept. It is hoped that based on this experience, the prospect of employment will increase for the students; and that many will continue to develop skills in this field.

The Casa K’inich Learning Center was created for its visitors to learn about the Maya Civilization through interactive games, which were designed by paying special attention to the Maya spiritual relationship with their environment. According to statistics from 2002-04, about 38,335 people have visited Casa K’inich.

C) The Archaeological Parks Subprojects. The objective of the Copán Archaeological Park Management Plan was to develop a balance in the conservation of the park, with an increase in the opportunities for tourism and education, taking into account the local needs and demands in the areas with intense traffic of people. This delivery of this plan was delayed and the Subprojects from the Management Plan were not executed

Yet, 21 Emergency Subprojects were financed to repair those areas of the Park that had been damaged by the Mitch Hurricane. All the subprojects, such as the restoration of the archaeological park, the placement of protective covers, the hieroglyphic stairway and the Copán river dredging, were successfully carried out and provided the local population with short tem jobs and development of skills.

3.2 Second Component. Capacity Building and Communication In addition to the strengthening of the Profuturo Foundation, this Component implemented a publicity strategy focused on the different methods of communication. This strategy was carried out in two phases. The first phase of this strategy was an expectation campaign prior to the inauguration of the CHIMINIKE ILC inauguration and the second phase was a campaign that positioned and maintained the ILC in peoples’ minds (boys, girls, teachers and parents). As a result, they now see the Center as an educational tool that

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assists formal education.

3.3 Third Component. Project Implementation Unit. The PIU was created for the execution of the PROFUTURO Project. This Unit was responsible for the Project since its beginning and was able to carry out all the components and subcomponents defined within the Project.

3.4 Distance Learning Center (DLC). Since the Tegucigalpa and San Pedro Sula DLCs began operations, they have provided people with the opportunity to access better and additional knowledge through a network that offers distance real-time learning programs.

The DLC, as a tool, is part of a Global Development Learning Network (GDLN), which achieves positive exchanges through a system of alliances that allows one to improve their quality of life.

Such exchanges have resulted in the DLC forming an Alliance among Universities for Knowledge Management, which includes all the pre and post graduate Honduran academic institutions The DLC also incorporated the National GDLN, achieved the development of the Course on Traceability and Labeling, product of the Seed Fund competition sponsored by the GDLN, and also, most important, is working on a National Scientific and Research Studies Inventory.

The GLDN-LAC has the capacity to bring together experts from any region, thus enabling the exchange of knowledge. Both DLC's have the appropriate infrastructure, and provide their users with all the needed services and assistance.

Among the achievements to date by the DLCs include:1. Honduras Participation in regional exchanges of the network: • Activities such as Global Dialogues, courses, offerings of the GDLN. 2. National support to the content of the network • Series on Biodiversity (sponsored by agricultural university) • San Pedro Sula • Seed Fund II sponsored by the World Bank for the development of contents through a competition

among members of the GDLN and submitted to a vote: Honduras won with the theme of Honduras Food Traceability and Labeling.

3. Considerable number of participants in the Global Dialogues, courses, themes;4. Dissemination of the DLCs in the communications media, newspaper, TV. 5. Growth of the National GDLN Network; Knowledge Network: • University Consortia Agreement for Knowledge Management. • Six Members of the National GDLN Network.6. Facilitation of the dialogue among the parties, national and regional, the thematic network, community of practice. • Virtual Business Roundtable: Method to bring together producers and purchasers. • Agro-Markets: Unite capacities among small and medium sized producers.

The DLC, as member of the GDLN serves as focal point for ministerial meetings, such as Central America regional meeting on agriculture markets.

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4. The Project’s impact on Institutional Development. The PROFUTURO Project was under the responsibility of the Honduran Council on Science and Technology COHCIT), which has a mission to promote the development of Science, Technology and Research in Honduras.

This institution was created through an Executive Agreement in 1993, and its participation in governmental activities before 1998 was not as important since it was limited to small, low-budget projects.

The PROFUTURO Project was the first large Project carried out by the COHCIT, and it played a very important and transcendental role during its years of execution, since both the ILC and the DLC components are unique projects in Honduras and have revolutionized the scientific and technological areas.

Once in execution, the PROFUTURO Project elevated the level of COHCIT to an extent that other international financial organizations –such as the Organization of American States and the Inter-American Development Bank (IDB)- considered this institution to execute high budget Projects.

The Organization of American States carried out the Honduras Solar-Net Villages Program, which carried out projects in the following villages: San Ramon Centro in the department of Choluteca; San Francisco in the department of Lempira; La Hicaca in the department of Yoro and Campamento Viejo in the department of Olancho.

Thanks to the support of the PROFUTURO Project and the Honduras Solar-Net Villages Program, since 2002, COHCIT is executing the IDB-financed Project Expansion of Technological Capacities in Poor Communities.

As of 2002, and as a result of the lessons learned, the COHCIT reinforced its organizational structure and played a more active role in the fields of science, technology and research.

In addition to the institutional development of COHCIT, the PROFUTURO Project supported the creation of the PROFUTURO Foundation. This solvent organization has the appropriate personnel and resources to ensure the sustainability of the CHIMINIKE ILC on a long term basis. The PROFUTURO Foundation ensures that all income from the visitors to the Center are reinvested to benefit the Honduran children.

5. Factors that affected the PROFUTURO Project. After beginning preparation as a Learning and Innovation Loan (LIL), the PROFUTURO Project underwent its first change due to the impact caused by Hurricane Mitch in Honduras. After the changes had been made –mostly concerning the ILC Component- the execution of the Project began, carrying out the obligatory processes for the execution of civil works, contracting personnel and purchasing equipment.

First, the PIU was created, which maintained a solid structure during the entire execution of the Project.

There were delays in the execution of civil works for the ILC, mainly due to the contractor. The works began late in 2001,and during this same year there were other delays in some of the activities programmed related to the construction of the ILC.

During this same year, the lack of experience of some members of the PIU and COHCIT in civil works projects was apparent. As a result, there was a high degree of dependence on the contractor in charge of supervising the works.

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When 75%, of the ILC had been completed, a new government took office in Honduras, which caused delays mainly concerning the ILC security equipment, as well as some problems encountered in its construction. Also, the new administration proposed a series of changes that delayed the process of the Project’s execution even more.

Among the positive outcomes, it is possible to mention that a better structure for the Supplemental Credit component was implemented, through which the construction and equipping of the DLC was carried out. It was evident that with the availability of personnel that were more experienced with civil works and with a new administration, the construction of the DLC was completed in the time frame programmed in the work plan.

6. Description of the Project’s Sustainability. One of the PROFUTURO Project’s accomplishments, specifically concerning the ILC component, was to carry out a Project executed by a governmental institution and transfer its administration and operation to a Private Foundation. In October 2003, the ILC was transferred by COHCIT to the PROFUTURO Foundation, and since its opening in November of that same year, the Foundation has been in charge of administration and operation. The Foundation –consisting of outstanding Honduran businesspersons as well as government members- has managed to surpass the goals to such degree that, in its first year of operations (November 2003 to November 2004) the ILC welcomed over 100,000 visitors, plus other activities have been included to ensure more income for the ILC, such as renting two floors of the four-story administrative building and the implementation of two other areas for birthday parties, lectures, workshops, etc.

In the case of the DLC, PROFUTURO would have financed the first three years of operation, giving time for building sustainability with declining support to allow for development of income generation strategies.

The process of building the capacity for sustainability requires a 3-to-5 year period, in which the development of programs and projects oriented to the target market are planned. After one year of operations, the generated income amounts to 40,000 US dollars, 10% of the operational costs.

Within the activities to be carried out to ensure the DLC’s sustainability, are: (a) Develop an Annual Operational Plan; (b) Develop a Business Plan for the 2005-2006 period and, (c) Carry out a feedback-survey program to identify training needs, both in the public and private sectors.

Considering the electoral period that Honduras is going through at this time, the DLC authorities have taken actions to secure the administration of these Centers. Among these actions, are: (i) to request external cooperation; and (ii) solicit funds through an allocation by the National Congress.

It is important to mention that in spite of having operated for such a short time, the Tegucigalpa and the San Pedro Sula DLCs have managed to obtain an occupancy rate during 2004-05 of 42.6 percent and a cost per participant of US$99.90/day.

7. The Bank’s Performance Regarding the Project’s Preparation and Supervision.While the Project was being prepared and implemented, the World Bank team maintained a successful and constant dialogue with the GOH authorities and with the personnel in charge of the PIU. Also, the World Bank made the necessary recommendations to achieve an inter-institutional effort to ensure the success of the Project.

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Another important point is that the World Bank was very focused on gender in the project, which was maintained during the entire execution of the Project . Therefore, and based on the previous, the World Bank’s performance is considered satisfactory in the Preparation and Supervision of the PROFUTURO Project.

8. The Government’s Performance during the Project.To ensure strong development of the project activities, the GOH and IDA included the support of the Ministry of Public Works, Transportation and Housing (SOPTRAVI, by its acronym in Spanish) to collaborate and provide technical assistance to the PIU, considering that one of the largest components was related to civil works construction.

In the Pre-Hispanic Culture and Archaeological Park Management Subcomponents, the Honduran Institute of Anthropology and History (IHAH, by its acronym in Spanish) and the Culture, Art and Sport Ministry (SCAD) were involved and provided technical assistance to and collaboration for the PIU.

9. The Performance of the Ministry of Finance during the Implementation of the Project.Periodically, there were problems with the Ministry of Finance, especially at the end of accounting periods. Also, the implementation of measures at the moment of assigning a budget to COHCIT and the delays in requesting disbursements, resulted in delays in the Project’s execution.

10. The Performance of COHCIT during the Implementation of the Project.The performance of COHCIT as the implementing agency can be evaluated as very good, keeping in mind that in the early stages and during the significant civil works execution, this institution had no experience in Projects which involved that specific type of work. As the Project progressed, COHCIT gained more experience and was able to execute the Supplemental Credit with the construction and equipping of the DLCs.

11. Lessons learned during the Preparation and Implementation of the Project.The PROFUTURO Project, as a new and unique type of project in Honduras, provided a variety of lessons for both the World Bank and the GOH. Among those lessons, stands out the fact that the Project was carried out through governmental institutions and then the ILC was transferred to a private organization to operate and manage it, which best guarantees its sustainability and its success through time. Another important point is the inter-institutional participation in a Project such as PROFUTURO, which consolidated a multidisciplinary working team that managed different topics, as required by the different components of the Project.

The most important achievement was to have considered Honduras for such an innovative project that included the ILC and the DLC as the main components. These two components became important tools for supporting education in Honduras, as much for children and young adults (ILC), as well as for University and technical students, and professionals from different areas (DLCs).

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Additional Annex 9. Data Tables

Table A9.1 Chiminike exhibitsExhibit rooms Selected exhibitsEnvironment Large water exhibit showing effect of flooding on lowlands and mountains, how a

tornado is formedHuman Body Large nose that children can walk into, types of body odorsThe City Airport in which children make paper airplanes, TV and radio studio, model grocery

store, large models of construction equipmentHonduras and Its Peoples

Model of Maya temple, music and culture of Honduras, famous Hondurans, map of Honduras

Table A9.2 Visitors to Chiminike and number of visitors over/under age 18Year Number of

visitorsNumber of visitors

over age 18Number of visitors

under age 18Original target

2003 (November and December only)

26,030 8,826 17,204 (66%)

100,000 (70% younger than 18)

2004 99,922 27,832 71,790 (72%)

150,000 (70% younger than 18)

2005 96,907 39,732 57,175 (59%)

200,000(70% younger than 18)

Total 222,759 76,390 146,369

Table A9.3 Number of schools visiting ChiminikeYear Number of schools visiting Chiminke Private schools Public schools2003 107 89 182004 968 528 4402005 810 365 445

1,885 982 903

Table A9.4 Results of survey of children visiting Chiminike BEFORE visiting Chiminike ResultsWhat do you consider the situation of Honduras as compared to other countries?

Equal: 30%; Better: 20%; Worse: 50%

How do you consider your knowledge with respect to the Environment?

The Human Body?

Honduras and Its People?

Your City (Tegucigalpa)?

Good: 40% Bad: 20% Average: 40%

Good: 60% Bad: 10% Average: 30%

Good: 35% Bad: 15% Average: 50%

Good: 20% Bad: 30% Average: 50%AFTER visiting ChiminikeAfter the visit, do you know __________ about Honduras? More: 75% Less: 10% The same: 15%After the visit, do you value Honduras ___________? More: 80% Less: 10% The same: 10%

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Table A9.5 GDLN in LAC and Honduras, FY2003-05FY GDLN LAC

total eventsGDLN LAC affiliates

WBI events to LAC

GDLN Hondurasevents participated in

GDLN Honduras participants

GDLN Hondurasaverage participant/event

2002–03

110 15 18 11 N/a N/a

2003–04

186 22 17 34 413 12.9

2004–05 325 25 20 88 2,421 27.5

Table A9.6 Sample of types of emergency subprojectsSubproject Time to

completeConstruction of Buttress in East Facade of Mini Acropolis of the South Archeological Court and Complementary Restoration of Collapse of Archeological Court under Structure 10L-18.

3 mos

Consolidation of the Outside of the Jaguar Plaza 6 mosConsolidation of the Tunnel Network in the Acropolis (Design and Study, Consolidation and Restoration in Sectors of Imminent Danger (five tunnels, one structure)

6 mos

Restoration of Hieroglyphic Staircase 9 mos

Table A9.7 New exhibits in ChiminikeYear Exhibits

2004 Space Travel2004 Room of Bubbles and Colors2005 Bed of Nails2005 Maya Kings2005 Trip through the Digestive System2005 Micro-World

Box A9.1 Casa K’inich Exhibits Maya Trivia; Language; Writing; Numbers and Sounds; Maya Math; Calendar; Astronomy; Environment and Stewardship; Ball Game; Natural Environment; Four Kings Stelaes; Maya Deities; Dress the Maya King; Architecture; Maya Music; Map of the Maya Area; Contemporary Map; Decline of Copán.

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Additional Annex 10. Distance Learning Centers: Additional Information

Learning Content. The DLCs in Tegucigalpa and San Pedro Sula hosted 88 events in the last year (2004–05) with 2,421 participants (average of 27 participants per event). This performance is close to the Regional mean in terms of number of events and participants (figure A10.1).

Figure A10.1 DLC participation in GDLN LAC activities FY03–05

The GDLN in the Latin America and the Caribbean Region (GDLN LAC) focuses on priority sectors that are largely aligned with the UN’s Millenium Development Goals and Regional priorities. Reflecting this, content offered in the Honduras DLCs has focused on (a) private sector development (28 percent in FY04, 33 percent in FY05), (b) poverty reduction (3 percent in FY04, 20 percent in FY05), (c) rural development (22 percent in FY04, 16 percent in FY05), (d) education (22 percent in FY04, 12 percent in FY05), and (e) health (16 percent in FY04, 13 percent in FY05).

In terms of content type, the Honduras DLCs have followed Regional trends and opted for Global Dialogues (56 percent of all content), courses (27 percent), seminars (6 percent), and meetings (11 percent). The original intention—to work with the World Bank Insititute (WBI) on a range of programs tailored for Honduras—was affected by WBI’s refocusing in 2004.[17]

Quality and Relevance of Content. The participant satisfaction surveys from the Tegucigalpa and San Pedro Sula DLCs reflect general client satisfaction and compare favorably with the project indicator aiming for 80 percent or more of participants reporting “good” or very good” experiences (figures in Annex 9).

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Figure A10.2 Participant surveys: San Pedro Sula

San Pedro Sula DLC - Level of Satisfaction

0% 20% 40% 60% 80% 100%

1

2

3

4

5

6

7

8

9

10

Que

stio

n

Very Good

Good

Average

Poor

Very Poor

No Opinion

10. Would you participate in future activities? (92.81% rating as "Good" or "Very Good") 9. Do you think the technical medium used allows for a rich dialogue on the topic? (74.99%) 8. Was the communication and promotion of the event disseminated efficiently? (63.81%) 7. Do you think there was enough time for interactivity between the presenter, panelists, and the audience? (74.75%) 6. Do you think the right audience was invited to the dialogue? (79.62%) 5. In your opinion, did the main presentation correspond to the main topic and proposed objectives? (84.08%) 4. Do you think the organization of the Dialogue was carried out well? (81.52%) 3. Do you think the presenters were appropriately selected given the topic of the Dialogue? (92.75%) 2. Was the activity relevant to your work or your current responsibilities? (89.07%) 1. Do you think the theme of the dialogue is relevant to the development of the region? (94.95%)

Figure A10.3 Participant Surveys: Tegucigalpa

Tegucigalpa DLC - Level of Satisfaction

0% 20% 40% 60% 80% 100%

10

9

8

7

6

5

Que

stio

n

Enough

Some

Little

Very Little

None

10. General value of the activity? 9. Relation between the content of the program and the announced objectives? 8. Extent to which the activity covered themes that improved your knowledge? 7. Value of the information obtained? 6. Extent to which the activity included new information? 5. Relevance of this activity to your job?

Business Model and Sustainability. A Business Plan developed for the DLCs in September 2004 reflected the typical challenges that face the operation of technology-heavy projects in a public sector environment,

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including the need to recover or offset the high costs of operations related to staff costs and connectivity (table A10.1). To break even, the analysis typically focused on achieving high volumes of paying participants for high volumes of learning content.

Table A10.1 Base case scenarioLearning mode Year 1

no. of eventsCost/participant us$

Year 4no. of events

Cost/ participant (US$)

Videoconference 73 96.8 105 89.5Tele-conferences 49 61.8 69 58.6Diplomas 9 630.0 12 610.1Courses 64 254.7 91 242.3Total 195 277 The high costs of connectivity and of operating a DLC underpinned the original design of the GDLN DLCs and informed the initial roll-out (largely in Africa but also affecting the initial tranche of DLCs in other Regions). A variety of technical options exist to connect a facility to the GDLN network, and these are available to varying degrees around the world. Typically, in middle-income countries, either integrated services digital networks (ISDNs) or leased line (IP) networks are used. In the case of Honduras, and based on advice from the Bank’s Information Solutions Group (ISG), an IP was acquired to connect Tegucigalpa to Washington, with San Pedro Sula connecting to Tegucigalpa. This option, while ensuring reliable communications, has a high annual fixed cost (US$70,000). When added to staff costs, rental payments for the San Pedro Sula DLC, and Center operations including maintenance, utilities, travel and materials, this gives the GDLN in Honduras an annual recurrent cost of approximately US$343,000, well beyond that typically experienced ($150,000–220,000). The estimated cost per participant per day for the Honduras DLCs in 2005 was US$99.90/participant. A unit cost per participant per day of US$95/day was estimated in the Memorandum of the President for the Supplemental Credit.

Several approaches have been taken to offset these costs elsewhere. In all cases, however, the achievement of financial sustainability through participant fees alone has proven largely nonviable due to limited ability/willingness-to-pay.

· In many of the African DLCs, aggressive revenue generation that targeted donors and local partners has been supplemented by non-GDLN activities. Several of these DLCs have achieved cost recovery in this way, albeit fragile and dependent on the retention of a high-caliber management team. Keeping skilled managers is a significant challenge in an environment in which the civil service is politicized and in which staff turnover is almost guaranteed during political transitions.

· A second approach, and one that ultimately has proved most successful in Latin America, is to adopt the GDLN as core business in the public sector and integrate it either into the budget of the host entity, and/or with other projects. While integration of distance education as core business in the public sector has limited traction, it is being widely adopted in the academic sector. The latter, added to the need for stability across political transitions and the additional pay-offs from working with established knowledge institutions, has led to an emerging role for the universities within GDLN. Over 75 percent of DLCs in the LAC Region are hosted by universities. Given the alignment of GDLN with the universities’ existing programs, the DLCs’ financial sustainability is relatively secure.

· Advent of Advanced Networks (commonly termed “Internet 2”). As major contributors to operating costs, and given the limited ability to generate revenue through participant charges, recurrent connectivity

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costs must be minimized. Honduras is paying the most of any country to connect to GDLN, reflecting the dearth of viable options. However, as in other countries, the solution is close at hand. Honduras is joining RedCLARA, the Latin American consortium of advanced networks.[18] With the help of the European Union via its ALICE (@LIS) project,[19] Honduras’s National Education and Research Network will physically be connected by high-speed, low-cost connectivity to the rest of LAC and the world. Once agreed within Honduras, this new opportunity offers the promise of low-cost (approaching zero), high-quality access to GDLN among other ventures. Nine LAC countries are already using this approach to great effect. Others, including Honduras, are very close to connecting.

Based on these opportunities, it is believed that the Honduras COHCIT DLCs have a strong potential for sustainability.

Partnerships: GDLN as Facilitator of Development Dialogue. The evolution of the GDLN from 2002 to the present from a network intent on “teaching” to one focused more on dialogue and facilitation has defined different needs. Rather than standardized or custom-built facilities that could host “learners,” the priority that emerged was one in which a set of “GDLN-enabled” partner institutions would be brought together to provide not only geographic reach within a country but also diverse content and perspectives. This trend is evident in all LAC countries and is at its most advanced in Brazil, Ecuador, and Mexico. These “National Networks” enable multistakeholder debate around development topics and enable citizens across the country to participate.

Reflecting this new understanding, COHCIT has promoted the development of the GDLN in Honduras by expanding the local network of partners in the country. Through a series of workshops held in Tegucigalpa and San Pedro Sula, COHCIT engaged a group of six university/research institutions (table A10.2). Together, they formed a national network, working through issues of governance and operation to reach agreement on a series of bylaws and signing their own local network agreement in July 2005.[20]

Table A10.2 Members of the Honduran GDLN National Network Location Members

Tegucigalpa

San Pedro

Other

COHCIT Distance Learning Centers X X Agriculture University X Technical University X Teaching University X University San Pedro Sula X Technology University X X La Ceiba Research Foundation X Business Association X

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Additional Annex 11. Endnote References

[1] The justification for supplemental financing was based on the rapid technological advance that the DLC represented (essentially generating a cost overrun due to exceptional circumstances outside of the borrower’s control). The concept of the DLC was not available at the time of appraisal, or it likely would have been incorporated in the original design. Thus, the DLC was incorporated through a Supplemental Credit.[2] The ILC construction did not entail purchase of land since was built on Centro Civico of Tegucigalpa, which was owned by the government. Evidence of the legal title to the land was a disbursement condition for the ILC Civil Works. [3] At the time, this change was expected to happen relatively soon. However, at the time of preparation of the ICR, COHCIT had not yet been transformed into a foundation.[4] These adjustments were approved by the Country Director.[5] Family, Gender and Identity: Influences and Opportunities for Children in Honduras 2000.[6] “Chiminike” is the title of a popular Honduran children’s song about a frog.[7] “K’inich” is the Mayan word for “sun.”[8] The facility is larger than originally planned since several rooms were added by government and Profuturo Foundation request, including the auditorium and nursery. The architectural estimate also may have been done in terms of the exhibit space versus the measurements of the entire building, including the connections between rooms, vestibule, administrative offices.[9] Financed by the Profuturo Foundation.[10] Manuel para Guias; Rotulacion Braille; Talleres Sugeridos para los Guias; Final Consultant’s Report, August 2002 (all in Project files).[11] Financed by the Dutch Poverty Trust Fund.[12] Reallocation of Credit Proceeds, February 2003.[13] El Puente is a nearby site that has not been developed for tourist visits.[14] The guidebook is available at www.famsi.org/reports/03075/CKguidebook_english.pdf.[15] Assessing Poverty at a Cultural Tourism Site: Visitor Survey: Casa K’inich Children’s Learning Center (2003) in trust fund files).[16] The operating costs of approximately US$343,00 is for both DLCs and includes staff costs of US$157,000, connectivity at US$73,000, and $113,000 for rental payments for the San Pedro Sula facility, maintenance of both facilities, travel, utilities, and materials.[17] In FY 2004, the WBI adopted a country-focused approach as a strategic organizing principle for capacity development. WBI in collaboration with the Regions identified a group of 36 focus countries. The countries were selected based on numerous criteria, including the need to show the most successful approaches to capacity development from a variety of perspectives. In Latin America and the Caribbean, the focus countries are Bolivia, Brazil, Guatemala, and Mexico. While GDLN has made it possible to extend some content targeted for Guatemala to the rest of Central America, the numbers shown in Table A9.5 reflect the fact that WBI is unlikely to underpin content for Honduras.[18] RedCLARA connects the national education and research networks of Argentina, Brazil, Chile, Costa Rica, El Salvador, Mexico, Panama, Peru, Uruguay, and Venezuela.[19] ALICE (Latin America Interconnected with Europe, América Latina Interconectada Con Europa). The objective of ALICE is to provide Internet connections dedicated for research and eduation communities from the Latin American Region and Europe. [20] GDLN has a Global Network Agreement, which all members are required to sign as part of affiliation.

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