VZCZCXYZ0000
PP RUEHWEB

DE RUEHPE #2106/01 1662249
ZNR UUUUU ZZH
P 152249Z JUN 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 5873
INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS LIMA 002106 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR D, E, AND EEB/EPPD NSMITH-NISSLEY 
COMMERCE FOR 4331/IEP/WH/MCAMERON 
USTR FOR BENNETT HARMAN 
 
E.O. 12958: N/A 
TAGS: BEXP ECON EINV ELAB ETRD USTR AID PE
SUBJECT: EMBASSY LIMA NOMINATES INTEL FOR SECRETARY'S AWARD 
FOR CORPORATE EXCELLENCE 
 
REF: STATE 71180 AND PREVIOUS 
 
SUMMARY 
------- 
 
¶1.  Embassy Lima is pleased to nominate Intel Semiconductores 
del Peru S.A. for the Secretary of State's 2007 Award for 
Corporate Excellence.  Intel Corporation's office in Peru is 
an outstanding example of Intel's commitment to corporate 
social responsibility, education and bridging the digital 
divide.  In only two years of existence, the small Peru 
office has made major contributions to economic development 
in Peru and meets the standards of conduct in all eight 
categories on which the award is based.  Described below are 
three concrete examples that show why Intel deserves this 
award:  Intel's groundbreaking "PC Peru" program, the 
recently launched Intel Education Initiative, and an IT 
training center for the visually handicapped.  END SUMMARY. 
 
TRANSFORMATIONAL "PC PERU" PROGRAM 
---------------------------------- 
 
¶2.  In March 2005, Intel and Peruvian President Alejandro 
Toledo announced the launch of the "PC Peru" program, aimed 
at bridging the digital divide by offering low-cost 
high-quality computers throughout Peru.  With more than half 
of the population living in poverty and one of the lowest 
computer penetration levels on the continent, the Peruvian 
government wanted to raise the quality of life for its 
citizens by providing better access to IT and Internet-based 
resources.  Intel convinced other computer component 
manufacturers, distributors and content providers to join 
Intel in supplying the components at heavily discounted 
rates.  In order to stimulate the Peruvian IT industry, all 
of the computers were assembled entirely in Peru by at least 
five local companies.  The assembly was done under 
international standards and certified by Intel. 
 
¶3.  Two models were initially offered under the PC Peru 
program at over 300 points of sale, with the lower priced 
package costing $399.  Each PC included a 40GB hard drive, a 
15" monitor, a 52x CD-ROM, a keyboard, a mouse, two 240w 
speakers, a 1.44MB disk drive, free anti-virus software, the 
Linux operating system, three months of free Internet 
service, a warranty, and free training.  To make the PCs even 
more accessible, Intel provided a 36-month payment plan 
option.  One model included an Intel Celeron 1.8 processor 
and 128MB RAM, while the other included an Intel P4 2.26 
processor and 256MB RAM. 
 
¶4.  During the launch phase with the Peruvian Ministry of 
Production, 4,140 of these low-cost computers were sold 
publicly and distributed throughout Peru.  The private sector 
continued selling the PCs after the Peruvian government's 
direct involvement ended, and reached 20,000 units sold in 
¶2006.  There are countless testimonials of how access to 
affordable PCs improved the lives of lower and middle class 
Peruvians.  Many small and micro enterprises were able to 
computerize their inventories, create websites, use e-mail to 
contact clients, expand their sales, and even begin exporting 
their products.  Many of the PCs were acquired by schools, 
giving students their first access to a computer and the 
Internet.  Currently, PC Peru offers four more modern 
packages from $457 to $620, which can be purchased online at 
www.pcperu.org.  This program has been so successful, that it 
is being replicated by Intel in several other Latin American 
countries. 
 
INTEL EDUCATION INITIATIVE 
-------------------------- 
 
¶5.  Intel's Education Initiative is a worldwide program aimed 
at training teachers to effectively integrate technology into 
their classrooms.  Primary and secondary school teachers are 
taught how IT can improve and facilitate their students' 
learning, are coached on how to apply IT to existing 
curricula, and are given free on-line resources and 
interactive lessons.  Each teacher participates in 10, 4-hour 
modules (40 hours) of practical workshops plus 20 hours of 
homework.  They learn to develop unit plans, incorporate the 
Internet in classes, design web pages, use multimedia 
programs, and how to transfer what they learn in workshop to 
other teachers.  The Teachers are also put in contact with 
other trained teachers around the world, and invited to 
future meetings and Intel seminars.  Each teacher receives an 
extensive Study Program Manual and a CD-ROM with resources. 
The use of IT and the Internet motivates students and 
stimulates their creativity. 
 
¶6.  In September 2006, less than two months after taking 
office, Peruvian President Alan Garcia witnessed Intel and 
the Ministry of Education signing an agreement launching the 
pilot program of the Intel Education Initiative in Peru. 
During the first phase of the pilot program, which began in 
February 2007, foreign Senior Trainers trained 33 Peruvians 
for 40 hours, after which they themselves became qualified 
Senior Trainers.  In the second phase, which began at the end 
of April 2007, 10 of these new Senior Trainers are training 
100 teachers from 5 public schools in the Lima area that were 
selected by the Ministry of Education to become Master 
Teachers (trained teachers that will help expand the program 
throughout Peru).  This 10-week training also consists of one 
4-hour module and 2 hours of homework per week, and is 
scheduled to be completed in mid July.  Intel paid 100 
percent of the pilot program costs:  brought in trainers; 
rented computer center; provided manuals, CD-ROMs and 
incentives for Senior Trainers; and donated computers to a 
Ministry of Education training center. 
 
¶7.  The pilot program is being monitored by the Education 
Department of the Pontifical Catholic University of Peru, 
which will present its evaluation in mid July.  After the 
pilot phase, the next step will be to train 300 additional 
Master Teachers in August 2007, with the goal of training 
3,000 teachers nationwide (in all of Peru's 25 regions) by 
the end of 2007.  After the conclusion of the pilot phase, 
the costs to continue and spread the program will be split 
50-50 by Intel and the Ministry of Education.  Intel also 
signed an agreement with San Martin de Porres University to 
help expand the training program throughout Peru. 
 
¶8.  Worldwide, the Intel Education Initiative has trained 
nearly five million primary and secondary school teachers in 
more than 40 countries since the program's launch in 2000. 
Intel invests $100 million per year in this program, and 
plans to train 10 million teachers more in the next five 
years.  Intel donated 10,000 PCs to schools in developing 
countries in 2006 and plans to donate at least 90,000 more. 
 
COMPETITIVENESS CENTER FOR THE VISUALLY HANDICAPPED 
--------------------------------------------- ------ 
 
¶9.  In 2004, three blind young Peruvians, who had used a 
World Bank grant to launch Peru's first cyber cafe for the 
visually impaired in 2003, established the non-profit 
Association for Technology and the Handicapped (ATECNODIS). 
Later that year, Intel helped ATECNODIS establish the 
Peruvian Competitiveness Center for the Visually Handicapped 
(CCD), providing the building for the Center in the San Borja 
district of Lima, bringing foreign specialists to train 
ATECNODIS' volunteers, and donating 15 computers. 
 
¶10.  The CCD is a modern IT facility with accessible hardware 
and software that has provided individualized training to 
hundreds of visually handicapped Peruvians in computer and 
Internet use.  Courses offered include:  Introduction to IT, 
Windows Operating System, Microsoft Word, Excel, Internet and 
E-mail, Magic, Messenger, Open Book (scanner), Interactive 
Encyclopedias and Dictionaries, JAWS, and Mexvox.  Since 
2005, the CCD also offers text and book digitization services 
for the handicapped.  ATECNODIS, with Intel support, is a 
leader in promoting the social inclusion of handicapped 
Peruvians. 
 
OTHER INTEL ACTIVITIES INVOLVING PERU 
------------------------------------- 
 
¶11.  Intel has begun offering its wireless laptop "Classmate 
PC" in Peru for only $270 per unit.  These low cost laptops 
are especially designed for primary and secondary school 
students.  Intel donated 200 units to the Peruvian government 
for distribution to public schools in May 2007. 
 
¶12.  Intel made possible Peru's first ever wireless district 
in 2004, donating the infrastructure to provide free wireless 
"hotspots" throughout Lima's Miraflores district.  Similarly, 
in September 2005, Intel and two other companies launched the 
"Wireless Cuzco" initiative, which provides free wireless for 
the central plaza of Peru's number one tourist destination 
high in the Andes. 
 
¶13.  Peruvian students participate and have won awards in 
Intel's International Science and Engineering Fair (ISEF), 
the largest pre-university science fair in the world. 
 
Sponsored by Intel since 1997, Intel's ISEF brings together 
the most promising innovators and scientists at the primary 
and secondary school levels.  Prizes include cash and full 
university scholarships. 
 
INTEL'S PERU OFFICE 
------------------- 
 
¶14.  Intel has had a presence in Peru for eight years, but 
its local office opened two years ago and currently has four 
employees.  Intel Peru's corporate social responsibility 
contributions, with so few employees in such a short time, 
are truly amazing. 
 
¶15.  In addition to its exceptional corporate citizenship 
which contributes to economic development and innovation, 
Intel's Peru office follows exemplary employment practices 
and all Peruvian laws and regulations.  Intel Peru has not 
violated any laws or standards, and has not been involved in 
any acts of corruption.  Intel Peru is known as a great and 
safe place to work. 
 
COMMENT 
------- 
 
¶16.  Intel, an innovative U.S. firm respected worldwide, has 
made a real difference in Peru with a solid commitment to 
improving education and bridging the digital divide.  The 
work Intel has done in Peru is an excellent example of 
Intel's broader commitment to corporate social responsibility 
and great business practices worldwide.  Intel Peru, with a 
staff of only four, has done more to contribute to 
development in Peru than many huge firms and deserves the 
Department's recognition for its exemplary accomplishments. 
With the U.S.-Peru Trade Promotion Agreement (PTPA) close to 
fruition and Peru hosting the Asia-Pacific Economic 
Cooperation (APEC) forum activities in 2008 (including visits 
by Secretary Rice and President Bush), this would be a great 
time to recognize a model U.S. company that is doing great 
things in Peru. 
STRUBLE