Fundación Empresarial para el Desarrollo Educativo (FEPADE)

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Project Number: 
ES1022A-01
Expected Consideration Date by the Board: 
11/06/2002
Date Posted: 
10/10/2002
Company: 
Fundación Empresarial para el Desarrollo Educativo
Financing Requested: 
Sector: 
Education
Location: 
La Libertad
Country: 
Scope Objective: 
The project is intended to solve Fepade's and Iseade's current infrastructure problems by building a campus in the outskirts of San Salvador. This will enable these two prestigious institutions to expand their professional training activities and will also help bring the Foundation's environmental management up to international standards. The IIC's role will cover the following areas:

Long-term financing for a sound educational institution: Fepade's activities are expanding, as evidenced by its revenue growth ($2.3 million in 2001, up from $1.9 million in 1997). This clearly reflects Fepade's position in the local educational market, as well as its soundness, considering that lately the Salvadorian economy has faced a very difficult situation, with two earthquakes plus a drastic drop in the prices of its main export products (coffee and bananas).

Education for all: Fepade's market niche is broad, given its variety of courses, seminars, and programs. While Fepade caters to the middle and working classes, Iseade trains and educates entrepreneurs. Thus, Fepade's educational services have a significant economic impact in El Salvador, starting with workers and going all the way up the corporate ladder. To date, Fepade and Iseade have trained more than 70,000 individuals.

Tailor-made education: In 1986, a group of national and international entrepreneurs from 47 enterprises, banks, and foundations in El Salvador created Fepade to support the Government's efforts in the education sector and provide training for their staff. So far, dozens of small, medium-size, and large financial and nonfinancial enterprises have become Fepade's customers. In 2001, 91% of the total number of class-hours was for tailor-made educational services (e.g., accounting and finance, quality control, management, and human resources seminars).

An institution that supports the Government's efforts in the educational area: In 1993, the Government of El Salvador created the Instituto Salvadoreño para la Formación Profesional (INSAFORP), an institution tasked with organizing and coordinating professional training courses and seminars all over the country. Fepade is one of the educational institutions that, through INSAFORP, participate in the training of Salvadoran workers.

Strengthening a high-quality educational program: In late 1980, Fepade decided to create and sponsor an institution for graduate studies in business administration. After researching and studying several executive master's programs, it decided to create the Universidad Superior de Economía y Administración de Empresas (USEADE), which in 1997 became Iseade in order to meet Salvadoran legal requirements. Four hundred twenty students have graduated from this school since its inception. Currently, Iseade has several exchange agreements with foreign universities such as Florida International University (U.S.), Instituto Tecnológico de Monterrey (Mexico), and Universidad Anáhuac (Mexico).

Strategic protection of the institution's financial foundations: On 14 March 1994, the United States Agency for International Development (USAID) initiated a program with Fepade under which each institution would contribute US$1 million for the creation of an endowment fund. The endowment fund was intended to provide, long-term, the resources needed for Fepade's self support. The goals originally established for this program were amply met: currently, the balance in the endowment fund is US$12.3 million. The IIC's financing will enable Fepade to avoid tapping the endowment fund's resources to finance the construction of its educational campus, thereby maintaining its sound financial position.
Environmental Review: 
Environmental Classification: This is a category III project according to the IIC's environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, and design criteria. The most significant environmental and labor considerations related to the project include the following: solid waste disposal, liquid effluent treatment by means of a septic tank upstream of the connection to the sewage main, fire safety, safety during construction, and employee and student health and safety.

Environmental compliance and other permits:

The following permits are required to build the project:
  • Environmental Permit
  • Site Suitability
  • Construction Line
  • Street Layout Review and Zoning
  • Feasibility of drinking water and sewer services
  • Feasibility of electric power services.

The site suitability and construction line permits have already been obtained and the others are being processed. An Environmental Impact Assessment (EIA), which will be reviewed both by the Ministry of the Environment of El Salvador and by the IIC, will be prepared to obtain the environmental permit.

Occupational health and safety, and fire safety: Regarding occupational health and safety, the IIC shall require that all construction contractors be adequately trained in the adoption of suitable measures in this area. Fepade will be required to ensure that contractors at the new building construction site receive the appropriate personal protection gear. Likewise, the IIC will require that preventive safety signs be installed in areas where workers must take specific precautions. The IIC will require that Fepade fence and identify the boundaries of each construction site, thereby restricting access to the work area and to the equipment therein. This will minimize the risk of unauthorized people entering the work site, which, in addition to delaying the work, might pose unnecessary health and safety risks. As to fire safety, the buildings will have fire alarms, smoke detectors, and fire extinguishers. Also, the university will have several brigades to face any bomb threats, natural disasters, and evacuations, and also to provide first aid. The buildings will have emergency exits and access for disabled people. The IIC will require that proper evacuation-route signs be installed and that building materials be fire resistant. Since the building design is at a preliminary stage, the details as to the staff and student safety measures adopted will be reviewed in greater detail once the design is finalized.

El Salvador has a mandatory anti-earthquake building code for all new buildings. Thus, the architectural blueprint will be designed to this code and will be reviewed by the OPAMSS (Oficina de Planificación del Area Metropolitana de San Salvador, or San Salvador Metropolitan Area Planning Office) and the IIC.

Solid waste management: Fepade's residential solid wastes will be collected by the municipal government. The IIC will require that contractors satisfactorily store and dispose of the construction materials and debris. The IIC will also require that any potentially hazardous substances used during the construction work, such as diesel fuel and oil, be stored in secure areas with containment measures to reduce any risk of leaks.

Sewage treatment: Portable toilets will be used during the construction stage. Subsequently, the campus sewage will be channeled to a septic tank that will be connected to the sewage main underneath El Pedregal Street.

Labor considerations: Fepade has good labor practices. It respects the freedom of association and domestic laws regarding the minimum age for employment.
Control and compliance: The company's monitoring procedures will be described in the Environmental Management Plan to be prepared by Fepade. The company will submit an annual report summarizing the control data regarding sewage discharge, solid waste disposal, fire safety, occupational health and safety, accident reports, and other labor considerations. During the life of the project, and as part of the project supervision process, the IIC will monitor compliance with its own environmental and labor review policy, evaluating the monitoring reports submitted by the company on an annual basis, and periodically visiting the project facilities.