Summary of Proposed Investment
Project Number
9349
Company Name
PROMOTORA DE CENTROS EDUCATIVOS DE OCCIDENTE A.C.
Date SPI Disclosed
Sep 30, 1999
Country
Mexico
Industry
Health, Education and Life Sciences
Status
Completed
Sector
Elementary and Secondary Schools
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Dec 2, 1999
Signed : Nov 6, 2000
Invested : Apr 9, 2001
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico - Educación |
RegionLatin America and Caribbean
SectorSocial Services
Project No009349
Projected Board DateOctober 30, 1999
Company NamePromotora de Centros Educativos S.A. de C.V.
Technical Partner and/or Major Shareholders
The sponsor of the project is the Legionaries of Christ, which will provide equity financing and centralized support functions. The Legion has vast experience in constructing and operating education centers in Mexico and other parts of the world. The Legion is a non-profit religious order whose primary objective is to provide quality education throughout the world.
Project Cost Including proposed IFC investment
The project, the first two stages of a four-stage construction plan, has an estimated cost of US$27.7 million. The proposed IFC financing consists of two A loans of US$6.5 million and US$3.2 million, corresponding to the two project stages.
Location of project and Description of site
The 5 schools to be built will be in the cities of Oaxaca, Durango, Morelia, Culiacan, and Cuernavaca. The Morelia and Cuernavaca sites are approximately 26,598 m2 and 63,889 m2 respectively, both sites are located in urban areas. The Durango site is 100,000 m2 and is located in a rural area. The Oxaca and Culiacan sites will require 50,600 m2 and 67,026 m2 respectively. The Oxaca site will be located in a rural area and the Culiacan site in a peri-urban area. The sponsor has indicated that the already identified sites for these two cities may change in the future. In this case, the sponsor is committed to undertake and provide IFC with details of future land acquisitions and to comply with World Bank policies and guidelines. Although not anticipated, any land acquisition requiring resettlement will be subject to the preparation of a Resettlement Action Plan to be approved by IFC prior to acquisition of the land.
Description of Company and Purpose of Project
The greenfield project involves the first and second stages of a four-stage plan to construct and operate five private schools in the interior of Mexico. The project will create capacity for approximately 5,200 students from pre-school through primary school. The sponsor’s entire four-stage construction plan will provide education through high school for approximately 9,000 total students. Promotora de Centros Educativos S.A. de C.V. has been established as the holding company for the five schools.
The project will complement the efforts of the Mexican government to provide quality primary and secondary education in the provinces, at a time when it is under severe fiscal pressure in order to maintain macroeconomic equilibrium. The additional resources mobilized for education through this project will raise the government''s ability to target its education expenditures to benefit the poor. The project will enhance Mexico''s stock of human capital by graduating a very high percentage of students who will enroll in various universities and colleges in Mexico and abroad.
Private education accounts for less than 10% of the primary and secondary education market, which is quite low by international standards. The Legion, one of the most prolific private educators in Mexico, has seen a rise in demand for its services and requests from parents to open schools in their communities. With 45 years of experience constructing and operating schools, the sponsor is one of the more capable institutions to supply the unmet demand for private education. However, there is currently not a market for reasonably priced long-term debt financing to help fund an education project of this nature.
Environmental Category and Issues
This is a category B project according to IFC’s environmental and social review procedure. Key environmental and social issues reviewed include: site selection and site environmental and social conditions (including land ownership and land use); liquid and solid waste management and disposal; source and adequacy of water supply; use of asbestos-containing building materials; CFCs; and fire protection and life safety.
Land acquisition was on “willing seller – willing buyer” basis. The Legion is committed to undertake and provide IFC with details of future land acquisitions and to comply with World Bank policies and guidelines. Although not anticipated, any land acquisition requiring resettlement will be subject to the preparation of a Resettlement Action Plan to be approved by IFC prior to acquisition of the land.
Liquid waste (including sewage) will be treated at the municipal wastewater treatment plant, except in Oaxaca, where Educacion will use septic and absorption tanks. The Legion will establish a recycling program. The non-recycling waste will be disposed of at the municipal landfill. The Legion has committed to conduct an independent fire safety audit and implement all recommended mitigation measures. The facilities will be designed to meet National Fire Protection Association (NFPA) standards.
The is available from the InfoShop.
| Host country location of envrionmental documents: | Cuernavaca: Instituto Highlands Casandra # 97, Col. Delicias Cuernavaca, Morelos C.P. 62330 Atn. Srita. Beatríz Molina Instituto McKinley Bvd. Francisco Sarabia # 412, Zona Centro Durango, Durango C.P. 34000 Atn. Lic. Alejandro Gómez Retes Oaxaca: Instituto McKinley Héroes de Chapultepec # 413, Col. Xochimilco Oaxaca de Juárez, Oaxaca C.P. 68000 Atn. Sra. Marcela Navarro de Jarquin Culiacán: Instituto Andes Ciudades Hermanas # 287 Ote. Col. Guadalupe Culiacán,Sinaloa C.P. 80040 Atn. Srita. Karime Alle Arrechavaleta Morelia: Instituto Kilimanjaro Calz. Ventura Puente # 557, Col. Chapultepec Nte. Morelia, Michoacán C.P. 58260 Atn. Srita. Mónica Pacheco Mrtínez |
Date SPI sent to InfoShop September 30, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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