First Disbursement of US$1.9 million for Education Projects under the Ecuador-Spain Swap Program

(Quito, August 7, 2006). - Today, the Salons of the Chancery saw the signing of the Collaboration Agreements and the handing over of the first disbursement of funds under the Ecuador-Spain Debt Swap Program to the units that are to execute four education projects located in the provinces of Imbabura, Guayas and Pichincha.

These four projects are to be executed with funding mainly from the Debt Swap Program:

1. Support for making first year of quality primary education universal in Imbabura, presented by the “Foro para la Nueva Educación” and to be carried out by Imbabura Provincial Government. Funding: US$859,806.
2. Education for All in Cayambe and Pedro Moncayo, to be executed by the “Fundación Casa Campesina Cayambe” (Pichincha Province). Funding: US$454,120.82.
3. Development of quality schools in bilingual, intercultural, community education centers in the Andean region of Cotacachi, to be carried out by the “Fundación Tierra Viva” (Imbabura Province). Funding: US$202,970.53.
4. Improving the academic quality of primary education: handling human diversity, to be carried out by the Fundación El Universo (Guayas Province). Funding: US$367,750.

These outline projects were approved by the Bi-national Ecuador-Spain Committee at its meeting in March this year.

At the moment the Technical Committee is analyzing some 190 outline projects to be executed in all of Ecuador’s provinces and that were submitted to the Debt Swap Program. These projects will be submitted to the Bi-national Ecuador-Spain Committee, which is scheduled to meet in Quito during the first half of October this year. This Committee has the last word when it comes to approving, rejecting or returning projects for modification.

Given the high expectations regarding use of the funds from the Ecuador-Spain Debt Swap in the Education sector, the amount in requirements submitted exceeds funding available for this sector under the Program, which is currently US$20 million.

The Fund’s resources, which come to a total of US$50 million, are intended for education projects (US$20 million) and projects involving Clean Development Mechanisms (US$30 million), in particular hydroelectric projects. The resources are administered by the Corporación Andina de Fomento – CAF, acting as the Technical Secretariat of the Bi-national Ecuador-Spain Committee.

The four Agreements were signed by Ambassador Diego Ribadeneira, in his capacity as acting Minister of Foreign Affairs and as representative of the Ecuadorian International Cooperation Institute, and by Minister Counselor Javier Triana Jiménez, Chargé d’Affaires at the Embassy of Spain in Ecuador.