Project: INNOVAEDU: Pago-Por-Resultados de Innovaciones Educativas en El Salvador
State of development: Current
Stage of development: Early stage
Stage notes: Right now both operations are in the stage of design.
Type of instrument — Impact Bond: Yes; Outcomes Fund: ; Social Impact Incentives (SIINC): ; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: ; Other: 
Part of a larger outcomes-based financing program: No 
Expected launch date: Q4 - 2022
Total expected project development time: 12-24 months
Expected length of project (years): 3
Project design process began: Q4 2021
Rationale for using outcome-based finance: Promote a culture of intervention based on result and engage private actors
Key challenges to launch: Identifying actors with disposition to co-create this intervention, fast learning about the instruments, identifying private investors that could support the model and developing a market
Role of the domestic government — Outcomes funder: Yes; Service provider: No; Member of project committee: No; No formal role: No; Other: Informed and possible scale
Service providers identified and selected — Request-for-proposals: No; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: No; Other: Scoping study conducted last year, there where some possible providers pre-identified
Feasibility study: Yes
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: Yes; Other: 
Technical assistance grant: No — 
Estimated maximum potential outcome payment: 1500000 USD
Overall project finance notes: $1.5MM
Social/developmental challenge: Throughout the last decade, El Salvador has faced multiple educational challenges that has conditioned its socioeconomic development and slowed its progress towards quality, inclusive and equitable education, eg. violence in schools, overage students, low quality educational offer and of little relevance to the needs of the future labor market, among others. All these challenges contribute to the “funnel effect” of exclusion from the educational system: “many start, few finish, and those who learn are even fewer” . In essence, the funnel effect explains the impact that multiple barriers have on students' educational trajectories towards reaching minimum levels of learning necessary for work and life, and which have been exacerbated by Covid-19. Within this framework, this project will address two interrelated challenges: (i) Early dropouts at the secondary level, and (ii) acquisition of Skills for the 21st century.
Expected intervention model: TBD. Interventions primarily targeting to increase STEM knowledge and abilities, as well as to reduce drop out rates
Policy sectors — Employment and private sector development: No; Education: Yes; Social protection: No; Criminal justice: ; Health: No; Agriculture: No; Environment and climate change: No; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: ; Other: 
Secondary SDG goals: 4, 5
Target population: Secondary students from 5th - 7th grades in Honduras and from 7th-9th grades in El-Salvador in both countries with a gender focus.
Targeted number of unique service users or beneficiaries: 1500
Beneficiary notes: Approximately, 1000 – 1,500, 40% - 50% girls
Notes: Data for this pipeline project was last updated in April 2022
Delivery location: El Salvador