1. Investment plan proposal for the
Ministry of Education Peru

2. In the study we compare the data for the number of students enrolled region wise (in million) to the
illiteracy rate of the same regions. We then compare it with the budget allocated to analyze the
opportunity cost for the ministry to invest funds.
For analysis purposes, we have calculated all values for Lima separately as the data becomes more
comparable for the regions that require study (improvement plans).
The research is based from the data calculated in 2014 by the censes board and is public information.
http://escale.minedu.gob.pe/uee
0.0
100.0
200.0
300.0
400.0
500.0
600.0
Amazonas
Ancash
Apurímac
Arequipa
Ayacucho
Cajamarca
Callao
Cusco
Huancavelica
Huánuco
Ica
Junín
La Libertad
Lambayeque
Lima …
Lima Provincias
Loreto
Madre de Dios
Moquegua
Pasco
Piura
Puno
San Martín
Tacna
Number of students enrolled - region wise (in million)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Amazonas
Ancash
Apurímac
Arequipa
Ayacucho
Cajamarca
Callao
Cusco
Huancavelica
Huánuco
Ica
Junín
La Libertad
Lambayeque
Lima Metropolitana
Lima Provincias
Loreto
Madre de Dios
Moquegua
Pasco
Piura
Puno
San Martín
Tacna
Tumbes
Ucayali
Illiteracy rate (% of the age group 15 and over )

3. There is a variation noticed in the budget spending verses the number of students enrolled and the highest
illiteracy rate. The following are the provinces with the biggest discrepancy: -
a.) Apurimac – Lowest number of students enrolled with the highest illiteracy rate
b.) Huancavelica – Second lowest number of students enrolled with second highest illiteracy rate.
c.) Huànuco – High illiteracy rate with one of the most budget allocated to the provience.
The sampling Error for the correlation (illiteracy) presented: -
The sampling error navigates from a variance of 0.4to 2.6 which is acceptable for a large data set.
0
1,00,00,000
2,00,00,000
3,00,00,000
4,00,00,000
5,00,00,000
6,00,00,000
7,00,00,000
8,00,00,000
Amazonas
Ancash
Apurímac
Arequipa
Ayacucho
Cajamarca
Callao
Cusco
Huancavelica
Huánuco
Ica
Junín
La Libertad
Lambayeque
Loreto
Madre de Dios
Moquegua
Pasco
Piura
Puno
San Martín
Tacna
Tumbes
Ucayali
Budget 2014
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Sampling Error

4. (Source - http://escale.minedu.gob.pe/uee/-
/document_library_display/GMv7/view/2400783/11624?_110_INSTANCE_GMv7_redirect=http%3A%2F%
2Fescale.minedu.gob.pe%2Fuee%2F-%2Fdocument_library_display%2FGMv7%2Fview%2F2400783)
The percentage spending for all regions was noted close to the requirement. With each region at over 90
percent, the spending has a direct bearing on the growth of the infrastructure. (Allocation to the
infrastructure spending needs to be quantified).
Regions
Funds
allocated
%
allocated
Amazonas 11,44,08,007 99.5
Ancash 4,78,04,094 97.7
Apurímac 1,19,14,529 93.2
Arequipa 3,68,40,526 96.8
Ayacucho 3,14,38,478 94.7
Cajamarca 12,00,10,336 94.8
Callao 1,42,10,908 97.7
Cusco 5,76,24,376 93.9
Huancavelica 3,83,92,926 90.4
Huánuco 7,76,66,943 98.9
Ica 1,69,25,517 91.2
Junín 4,49,90,097 96.2
La Libertad 6,88,00,274 95.8
Lambayeque 2,89,93,477 94.1
Loreto 3,11,92,548 96.1
Madre de Dios 3,69,11,210 99.8
Moquegua 23,26,959 99.5
Pasco 55,46,440 98.9
Piura 8,18,84,571 95.5
Puno 4,92,13,747 98.7
San Martín 6,74,87,688 94.8
Tacna 64,08,091 99.9
Tumbes 78,62,732 98.2
Ucayali 2,34,92,753 98.7
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
99.5 97.7 93.2 96.8 94.7 94.8 97.7 93.9 90.4 98.9 91.2 96.2 95.8 94.1 96.1 99.8 99.5 98.9 95.5 98.7 94.8 99.9 98.2 98.7
Funds allocated vs percentage spending
Series1 Series2

5. Water sanitation:
Based on the report of the world bank shared by you, and the analysis of the budget spending from year
2015 the following has been noted:
There is a need to invest in:
A.) The Compact Water Treatment Plant.
B.) The Pozo and chlorination system
C.) The connecting of all the water services for each semi region
The approximate cost estimated by the world bank for the project for:
1. Compact Water Treatment Plant – 151.5 million soles.
2. Network services – 22.2 million soles
The over all investment for water sanitation for infrastructure is 282.7 million soles. This includes all the
miscellaneous spending and side costs.
(Source – World Bank, 2015, Reporte brecha en agua y saneamiento en escuelas final 120915)