Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES9540 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE JORDAN EMPLOYER DRIVEN SKILLS DEVELOPMENT PROJECT APPROVED ON JUNE 3, 2008 TO THE THE HASHEMITE KINGDOM OF JORDAN February 5, 2013 Human Development Sector Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS DCU Development and Coordination Unit E-TVET Council Employment, Technical and Vocational Education and Training Council E-TVET Fund Employment, Technical and Vocational Education and Training Fund MOL Ministry of Labor PDO Project Developmental Objective NCHRD National Center for Human Resources Development NES National Employment Strategy VTC Vocational Training Corporation Regional Vice President: Inger Andersen Country Director: Ferid Belhaj Sector Manager/Director: Mourad Ezzine/Steen Lau Jorgensen Task Team Leader: Juan Manuel Moreno Olmedilla 2 JORDAN EMPLOYER DRIVEN SKILLS DEVELOPMENT PROJECT P100534 Contents DATA SHEET ................................................................................................................... 4 A. SUMMARY ............................................................................................................... 8 B. PROJECT STATUS ................................................................................................. 8 C. PROPOSED CHANGES .......................................................................................... 9 ANNEX 1: RESULTS FRAMEWORK AND MONITORING ................................. 17 3 DATA SHEET Jordan Jordan Employer Driven Skills Development Project (P100534) MIDDLE EAST AND NORTH AFRICA MNSHE . . Basic Information Project ID: P100534 Lending Instrument: Specific Investment Loan Regional Vice President: Inger Andersen Original EA Category: Not Required (C) Country Director: Ferid Belhaj Current EA Category: Not Required (C) Sector Director: Steen Lau Jorgensen Original Approval Date: 03-Jun-2008 Sector Manager: Mourad Ezzine Current Closing Date: 30-Sep-2013 Juan Manuel Moreno Team Leader: Report No: RES9540 Olmedia . Borrower: Responsible Ministry of Labor Agency: . Restructuring Type Form Type: Full Restructuring Paper Approval Authority: Board Approval Restructuring Level 1 Level: . Financing Information ( as of 29-Nov-2012 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date IBRD- Effecti P100534 03-Jun-2008 08-Jul-2008 23-Jul-2008 30-Sep-2013 30-Sep-2013 75610 ve Disbursements (in Millions) % Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Original Revised Disburse d d sed d IBRD- Effecti 5,618,93 P100534 USD 7.50 7.50 0.00 1.88 25.08 75610 ve 5.75 . A. Summary of Proposed Changes This restructuring proposes to: (i) revise the Project Development Objective (PDO); (ii) revise Project Components; (iii) cancel Component 3 (related to the E-TVET Fund); (iv) revise the project’s results framework; (v) reallocate funds within expenditure categories; and (vi) cancel US$1.21 million from the 4 Loan, which is due to revising activities under Component 1 “E-TVET Council Development with Employer Participation� and cancelling Component 3 related to the E-TVET Fund. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ ] No [ X ] Cancellations Proposed Yes [ X ] No [ ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ ] No [ X ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ ] No [ X ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Analysis Yes [ ] No [ X ] . B. Project Status The Project was signed on July 8, 2008 and will close on September 30, 2013. The project implementation rating is moderately unsatisfactory (as of June 2012), due to extensive implementation delays in all components, as well as delays in proceeding with the project restructuring, which was first discussed in September 2011. The proposed project restructuring has been agreed with the Government and aims to ensure and enhance the project’s relevance to Jordan’s National Employment Strategy (NES), which was formally launched in June 2012. It would remove activities that are now deemed to be unachievable within the remaining life of the project. The proposed restructuring would allow the Project to focus on activities that are relevant and realistic in the current country and sector context. The disbursement rate is low at 17.2 percent (US$1.3 million out of the total Loan amount of US$7.5 million) and the percentage of disbursed and committed funds remains at 55 percent of total project funds, with net commitments at US$2.15 million. The low disbursement is essentially due to delays in rebidding the contract which supports Component 2 (Restructuring of Vocational Training Corporation (VTC)), as the first contract was terminated in January 2010 and the new consulting firm was contracted only in May 2011. The GOJ has 5 indicated that project activities after restructuring can be completed by the original closing date, and thus has not included a closing date extension in its formal request. Implementation progress of both the Component 1 (E-TVET Council Development with Employer Participation), as well as Component 2 (the largest component related to the restructuring of the VTC), is improving and getting back on track. Regarding Component 2, following some implementation delays recorded during the May 2012 mission, the restructuring of the VTC is back on track and the piloting of the models has already started with institutional Business Planning training in three selected vocational training institutes, to be followed by self-assessment and a dynamic process towards responsive and decentralized training modality. . Development Objectives/Results Project Development Objectives Original PDO Realign policy formulation with Employment, Technical and Vocational Education and Training (E- TVET) operational mechanisms through the development of employer community participation in (i) sector policy formulation, (ii) institutional development and reform, and (iii) skill development program design and delivery. Change in Project's Development Objectives Explanation The proposed project restructuring aims to ensure and enhance the project’s relevance to Jordan’s National Employment Strategy (NES), which was formally launched in June 2012. It would remove activities that are now deemed to be unachievable within the remaining life of the project. The proposed restructuring would allow the Project to focus on activities that are relevant and realistic in the current country and sector context. Proposed New PDO Realign the E-TVET sector with the National Employment Strategy by enhancing the enabling conditions for employer participation in: (i) TVET institutional development; and (ii) skills development program design and delivery by the Vocational Training Corporation. Change in Results Framework Explanation: The Results Framework has been revised to reflect the new PDO and the modified project scope in terms of components and activities. This would ensure relevance of the indicators and their close linkage to the PDO. . Financing Cancellations Explanation: It was agreed to cancel a total of US$1.21 million, due to the cost savings resulting from the project restructuring, making the revised Loan amount US$6.29 million. Curren Current Amount (in Cancelled Amount (in Proposed Amount (in Loan No. Status cy currency) currency) currency) Effecti IBRD-75610 7,500,000.00 1,210,000.00 6,290,000.00 ve 6 Reallocations Explanation: Current Category of Loan No. Currency Allocation Expenditure Current Proposed IBRD-75610 USD DISB - GOODS 1,800,000.00 1,800,000.00 DISB - CONSULTING 4,881,000.00 4,471,250.00 AND TRAINING UNALLOCATED 800,250.00 0.00 FRONT END FEE 800,250.00 18,750.00 Sub Total: 8,281,500.00 6,290,000.00 Total: 8,281,500.00 6,290,000.00 . Components Change to Components and Cost Explanation: Components 1 and 2 will be revised, and Component 3 will be dropped to adapt the project to the dynamic nature of the TVET sector, by removing those activities that are not realistic or relevant to the current country and sector context, and adding activities to support the implementation of the NES. Current Component Proposed Component Current Cost Proposed Action Name Name (US$M) Cost (US$M) E-TVET System and E-TVET System and Council Development 1.90 0.09 Revised Council Development with Employer Participation Restructuring of Restructuring of Vocational Training Vocational Training 6.14 No Change Corporation Corporation Strengthening of Training Strengthening of Training and Employment Fund and Employment Fund 0.06 Marked for Deletion (TEF) funded by CIDA (TEF) funded by CIDA Project Management Project Management 0.70 0.55 Revised Total: 8.80 0.64 7 JORDAN EMPLOYER DRIVEN SKILLS DEVELOPMENT PROJECT RESTRUCTURING PAPER A. SUMMARY 1. This Restructuring Paper introduces changes to the Jordan Employer Driven Skills Development Project (IBRD-75610, P100534) and any required amendments to the project’s legal documents. The proposed project restructuring has been agreed with the Government of Jordan (GOJ) and aims to ensure and enhance the project’s relevance to Jordan’s National Employment Strategy (NES), which was formally launched in June 2012. The project restructuring has the following objectives: (i) Revise the Project Development Objective (PDO). (ii) Revise project components. (iii) Cancel Component 3 (related to the E-TVET Fund). (iv) Revise the project’s results framework. (v) Reallocate funds within expenditure categories. (vi) Cancel US$1.21 million from the Loan amount. B. PROJECT STATUS 2. The Project was signed on July 8, 2008 and will close on September 30, 2013. The project implementation rating is moderately unsatisfactory (as of June 2012), a rating that is warranted because of extensive implementation delays in all components, as well as delays in proceeding with the project restructuring that was discussed in September 2011. The disbursement rate is low at 25 percent (of the original Loan amount of US$7.5 million) and the percentage of disbursed and committed funds remains at 56 percent of total project funds, with net commitments (commitments less disbursements) at US$2.15 million. This is essentially due to delays in rebidding the largest component in terms of budget (Component 2), as the first contract was terminated in January 2010 and the new consulting firm was contracted only in May 2011. 3. Project Status. Implementation progress of both Component 1 (E-TVET Council Development with Employer Participation), as well as Component 2 (the largest component related to the restructuring of the Vocational Training Corporation (VTC)) is improving and getting back on track. For Component 1, while the E-TVET Council has not been effective in fulfilling its mandate of providing employer-driven policy directives to its stakeholders, a number of activities were completed and are considered acceptable project outputs, including: (a) well- defined roles and responsibilities of the E-TVET Council and secretariat vis-à-vis other sector stakeholders, which were endorsed by the Council; (b) operational tools to develop the E-TVET sector action plan, to be regularly updated by the Secretariat; (c) procedural manual to create employer-driven occupational profiles and initial set of six profiles for demonstration purpose, through a participatory approach–engaging employers; (d) the know-how to identify priority sectors and the identification of three economic priority sectors closely correlated with employment opportunities; (e) tools to develop a TVET performance assessment system, including sector performance indicators, tools for data collection and data analysis, and reporting process (technical assistance is still on-going) and the development of the first sector assessment 8 report that was endorsed by the Council; and (f) a communication strategy driven by market surveys to better understand attitudes and perceptions of the potential TVET sector beneficiaries to conduct well-informed awareness campaigns. It should be noted that these activities provide the building blocks towards a more employer-driven E-TVET sector, regardless of the governance structure that may eventually be in place (either the E-TVET Council or the Higher Council for Human Resource Development envisaged in the NES). In addition, there are a number of ongoing activities, as follows: (a) technical assistance to support the E-TVET sector performance assessment system with involvement of training providers and employers is underway; (b) technical assistance to support the development of a decision support system will be deployed by end-January 2013. This is closely linked to the sector performance assessment system, leading to well-informed sectoral decision making process; (c) TVET Sector Awareness Campaign: technical assistance to be deployed by February 2013, which will focus on clearing the current misperceptions about the E-TVET sector as reflected in the Perceptions Survey; and (d) technical assistance to support the tri-partite working committee to facilitate the policy dialogue among the education, higher education and E-TVET councils/boards to promote awareness of their roles and responsibilities. It was agreed to proceed with the procurement of this activity. 4. Regarding Component 2, following some implementation delays recorded during the May 2012 mission, the restructuring of the VTC is back on track and piloting of the models already launched. Actions agreed in May 2012 were achieved: (a) the consulting firm finalized the February 2012 consultations conference report, incorporating comments while revising the models; (b) the business model, training model and governance model were approved by the VTC in September 2012; (c) deployment of technical assistance resources is consistent with contract agreements; (d) organizational audit, staffing plan and draft organizational structure are expected to be finalized by January 2013; and (e) progress reports are being submitted on time to the director general of the VTC so as to address implementation issues as they arise. The piloting of the models has already started with institutional business planning training in three selected vocational training institutes; and was followed by self-assessment and a dynamic process towards responsive and decentralized training modality. 5. As for Component 3, while a reformed and well-targeted E-TVET Fund can be one of the strategic instruments to achieve predictable and sustainable financing for employer-driven training programs, the mandate and the financial sustainability of the E-TVET Fund have not been clarified. Moreover, the Fund continues to face a financial sustainability issue triggered by the following: (a) annulment of the one percent training tax levy since January 2010; and (b) allocation of 70 percent of the additional work-permit revenues to the National Employment and Training Company. As a result, it is proposed to cancel this component. C. PROPOSED CHANGES 6. Project Development Objectives The current PDO is to “assist the Borrower in improving its TVET sector through the harmonization of policies pertaining to the development of said sector and the realignment of such policies with the operational functions of E-TVET, including the development of employer participation in the formulation of said policies and in carrying out institutional development reforms as well as in the design and delivery of a skills development program.� The PDO would be modified as follows: “Realign the E-TVET sector with the National Employment Strategy by enhancing the enabling conditions for employer participation in: (i) 9 TVET institutional development; and (ii) skills development program design and delivery by the Vocational Training Corporation.� 7. Results indicators The Results Framework has been revised to reflect the new PDO and the modified project scope in terms of components and activities. This would ensure relevance of the indicators and their close linkage to the PDO. (See Annex 1 - Revised Results Framework) 8. Components Components 1 and 2 will be revised, and Component 3 will be dropped to adapt the project to the dynamic nature of the TVET sector, by removing those activities that are not realistic or relevant to the current country and sector context, and adding activities to support the implementation of the NES. (i) Component 1: E-TVET Council Development with Employer Participation The consistency of the component’s design with both the National Agenda and the NES provides a rationale for retaining the component. It was agreed to: a. drop further project support or capacity development activities to the E-TVET Council and the Secretariat, performance based-planning, medium-term expenditure framework (MTEF); and realignment of budget/resource allocations in accordance with the established objectives and targets/results framework. b. retain support to develop an E-TVET sector performance assessment system (ongoing), sector awareness activities (ongoing), and MIS/decision support system (underway) as follows: Technical assistance to develop a decision support system is underway. Stakeholders need to be guided by a dynamic performance assessment system that feeds into a decision support system. Accordingly, it has been agreed to retain this activity, including training, on-the-job training, and an MIS/IT system that draws on the TVET sector performance assessment system under sub-component 1.3 to build the relevant decision making body capacity of the E-TVET Council/TVET to develop well-informed decisions at the policy level as well as guide decisions at the operational level. c. Add an activity to support the implementation of the NES: to better understand the mandates of three TVET providers (Education, Higher Education, and E-TVET) and the rationalization of VTC vis-à-vis the Ministry of Education (MOE) vocational education, technical assistance to support the decision support system, and implementation of the first phase of the awareness campaign as follows: Technical assistance to support the tri-partite working committee to promote a policy dialogues and awareness of the three councils (Education, Higher Education, and E- TVET) roles and responsibilities. Based on the persistent sector fragmentation and disconnect in the mandates of the three primary education and training providers, there is a clear need to address these gaps to develop an integrated education and training system with pathways to learning and employment at all levels. It would be very useful to adequately rationalize the links between the VTC and the MOE vocational education in terms of resources, infrastructure, teaching capacity, practical training, and outputs relevant to the market needs. Such a comprehensive review would then be conducive to 10 policy recommendations and legislative changes to the laws and by-laws of the councils/boards, as previously stipulated in the National Agenda and now the NES. (ii) Component 2 – Restructuring of Vocational Training Corporation Within the proposed restructuring, it is critical to determine the effectiveness of VTC interventions and allow for evidence-based decision making in the sector. Technical assistance would support VTC M&E system to regularly collect and analyze data, and provide the VTC Board and the E-TVET Council with credible and accurate information to guide decision making. This would also strengthen VTC’s position while reaching out to the employers’ community to open new business channels in response to market skills requirements. This is not an entirely new activity, as it was already in the project design. The Bank has already cleared the terms of reference, and the technical assistance firm is expected to be deployed by January 2013. This needs to be coordinated with activities under sub-component 1.3 whereby capacity building of TVET providers to produce performance assessment system oriented reports is already included as well as the ongoing technical assistance related to the restructuring of VTC. (iii) Component 3 – Strengthening of the E-TVET Training and Employment Fund Component 3 will be dropped from the Project. While a reformed and well-targeted E-TVET Fund can be one of the strategic instruments to achieve predictable and sustainable financing for employer-driven training programs, lack of clarity concerning the immediate future of the Fund, its mandate and sources of financing prevents it from being supported by the project. 9. Detailed presentation of the Proposed Changes: Component 1: E-TVET System and Council Development with Employer Participation (original cost US$1.9 million; revised cost US$0.9 million) Sub-component 1.1: E-TVET Council Orientation and Capacity Development. The objective of this sub-component is to: (i) to build a common understanding of employment driven TVET systems, structures, and operational practices amongst the E-TVET Council members and TVET Stakeholders (National Center for Human Resources Development (NCHRD), E-TVET Fund, Private and public TVET training Providers employers, and Federations/ Chambers); and (ii) build the capacity of the Secretariat to provide policy options analysis in the TVET sector, and establish an agenda and action plan for the work of the Council, based on an analysis o f its mandate and the surrounding regulatory framework. This sub-component would be modified to: (i) build a common understanding of employment driven TVET systems and operational practices among the key TVET providers and employers; (ii) provide TVET stakeholders with system-driven MIS to develop the E-TVET Council/ TVET relevant decision making body capacity to develop well-informed decisions. Original Activities (Reference the PAD): Proposed Activities (As agreed during restructuring mission)  Passage of the Law establishing the E-TVET  RETAIN ONE element of the Sub-Component Council, TEF and Accreditation, Certification and 1.1 related to MIS/IT systems to support an vocational testing. operational E-TVET system/ Decision Support  Appointment of the members of the E-TVET System; TA to develop a decision support Council in accordance with the provisions of the system, including training, on-the-job training, Law. and an MIS/IT system that draws on the TVET  Appointment of the Secretariat Staff sector performance assessment system under sub-  Design and deliver orientation activities for component 1.3 to build the Council’s / TVET Council members, Secretariat staff, and TVET relevant decision making body capacity to Stakeholders (NCHRD, TEF, private and public develop well-informed decisions. TVET training providers, employers, and Federations/ Chambers).  DROP capacity development activities that have  Deliver professional development for Secretariat not been provided yet: staff, NCHRD, and Advisory and Strategic o TA to provide orientation activities (on the 11 Planning Unit to ensure efficient undertaking o f job support/on-the-job training) to the assigned responsibilities. Secretariat/Council to develop policy-oriented  Establish roles, responsibilities, protocols, Council meeting agendas, moderate policy- procedures, and communication mechanisms oriented Council discussion, and develop policy- between the Council, Secretariat, and TVET oriented Council minutes of meetings conducive Stakeholders (NCHRD, TEF, private and public to sectoral policy implications and policy TVET training providers, employers, and directions. Federation/Chambers). o TA to deliver orientation activities for  Review all laws and by-laws currently governing Council Members as to their roles and the institutions and agencies in the TVET sector in responsibilities in being engaged in sectoral order to identify gaps and conflicts. policy dialogue leading to policy directions.  Review the E-TVET sector strategy and formulate an action plan for the work o f the Council and the  ADD: Secretariat. o TA to support the working committee,  Develop institutional capacity assessment tools formed with representatives from the three and conduct a capacity assessment of those Board/Councils (MOE, MOHE, and MOL) to responsible for the implementation of the E-TVET review the respective mandates of their Council action plan. councils/boards and rationalize the links between  Develop MIS/IT systems to support an operational VTC and MOE’s technical education. E-TVET system (hardware funded off-project from Ministry of Labor (MoL) budget). Note: TEF to be renamed E-TVET Fund. (RETAINED) Sub-component 1.2: E-TVET Sector Policy, Planning and Organizational Development with Active Employers Participation Guided by national economic priorities and analysis of labor market dynamics in the country, the objective of this sub-component is to support the E-TVET Council and the Secretariat to: (i) formulate national policy directions for the TVET sector; (ii) establish and harmonize explicit policy objectives and accountabilities for the respective public and private TVET providers; (iii) initiate the establishment of common performance based planning and management procedures amongst public sector TVET providers within MTEF framework; (iv) recommend resource allocations for public TVET providers; and (v) progressively build the national qualification, certification and accreditation bodies and procedures. This would be redefined as follows: this sub-component would contribute to the TVET sector enabling conditions pertaining to TVET institutional development through: (i) identification of economic priority sectors with employment potential to enhance matching labor supply and labor demand; and (ii) active participation of employers in developing occupational profiles. Original Activities (Reference the PAD): Proposed Activities (As agreed during restructuring mission)  Identification of national economic development  DROP activities that are premature and no longer directions on a sectoral basis, together with a relevant to the country/sector context, and cannot macro assessment of employment and skills be carried out in the remaining project lifetime: implications. o Align macro level employment demand  Preparation of selected sectoral occupational projections and occupational profiles to guide profile (For example Construction, Financial training provider planning. Sector) to quantify labor market demand and guide investments. o Implementation of the guiding principles  Align macro level employment demand adopting MTEF as a framework for performance projections and occupational profiles to guide based planning and budgeting, management and training provider planning. accountability measures at the level of MoL,  Implementation of the guiding principles adopting NCHRD, and VTC. MTEF as a framework for performance based budgeting, management and accountability o Provision of professional development and measures at the level of Ministry of Labor (MoL), operational guidance to TVET training providers NCHRD, and VTC. in performance based planning and budgeting.  Provision of professional development and operational guidance to TVET training providers o Formulation of policy objectives and in performance based planning and budgeting. accountability measures for MoL, NCHRD, 12  Formulation of policy objectives and VTC and other public sector TVET providers. accountability measures for MoL, NCHRD, VTC and other public sector TVET providers. o Provision of support for continuing  Provision of support for continuing development development and implementation of the National and implementation of the National Qualifications Qualifications Framework. Framework. Sub-component 1.3: E-TVET System Performance Assessment with Involvement of Training Providers and Employers The objective of this sub-component is to build the capacity of the Secretariat and NCHRD as the Council’s technical arm to: (i) establish performance indicators for the ETVET system derived from national policy objectives; (ii) design data gathering tools and reporting mechanisms; (iii) undertake performance analysis and recommend remedial action; and (iv) ensure feedback into the policy assessment cycle. This sub-component would be slightly revised to ensure feedback into the policy assessment cycle at the level of the E-TVET Council, Higher Council for Human Resource Development, or any other TVET policy entity that will be established during the NES implementation. Original Activities (Reference the PAD): Proposed Activities (As agreed during restructuring mission)  Based on Council established policy objectives  RETAIN Sub-component (already under (Component 1.2), establish targets and timeline/ implementation), keeping the linkages with the results framework for the TVET system. MIS/IT system (decision support system to be  Deliver workshops and seminars to TVET developed under sub-component 1.1); the data Stakeholders (NCHRD, TEF, Private and public gathering and data analysis tools, to monitor the TVET training Providers, employers, and E-TVET system indicators, and adopt such tools Federations/Chambers) on the results framework. to conduct performance analysis under this sub-  Provide technical assistance to TVET component; and the TA to build the capacity of Stakeholders (NCHRD, TEF, Private and public TVET stakeholders ensure that management TVET training Providers, employers, and information systems and related performance Federations/Chambers) to ensure that management monitoring procedures generate information information systems and related performance products in a format that serves the national monitoring procedures generate information results framework. products in a format that serves the national results framework.  DROP an activity that is considered premature  Develop data gathering and data analysis tools, to and unachievable considering the current state of monitor the E-TVET system indicators; and adopt the Council’s functionality and role in such tools to conduct performance analysis influencing financial resources allocation:  Realign budget/resource allocations in accordance with the established objectives and targets/results o Realign budget/resource allocations in framework. accordance with the established objectives and targets/results framework. 1.4 E-TVET Sector Promotion and Awareness among TVET Stakeholders. TO BE RETAINED The objective of this sub-component is to engage employers and TVET Stakeholders (NCHRD, TEF, Private and public TVET training Providers, employers, and Federations/Chambers) in enhancing and promoting understanding and awareness of occupational opportunities in the TVET sector. Original Activities (Reference the PAD): Proposed Activities (As agreed during restructuring mission)  Develop and implement a national program to  RETAIN Sub-component 1.4, with initially a enhance awareness of employment and career more LIMITED scope focused on item (i) “clear opportunities in the field of TVET sector. the current misperceptions about the E-TVET  Develop employment and career development Sector as reflected in the Perceptions Survey�. materials. While deleting item (ii) provide potential TVET  Pilot active labor market programs. beneficiaries as to the available learning opportunities under the TVET sector and the 13 respective available job. This would result in a reduced cost estimate. o REVISE costing to ensure a realistic level of resources is being allocated (initially US$300,000). Component 2: Restructuring of Vocational Training Cooperation (VTC) (original cost US$6.14 million; revised cost US$6.14million). TO BE RETAINED. The objective of this component is to establish the new financial and managerial governance structure by which a restructured or new autonomous organization can operate driven by the demands of the market. Original Activities (Reference the PAD): Proposed Activities (As agreed during restructuring mission) 2.1 Establishment of the Mandate, Governance ADD Structure, and Regulatory Framework for the new  TA activity to develop a rigorous M&E system Skills Development Agency; to track VTC related interventions. This would 2.2 Organizational Restructuring and Staff include an MIS system that builds on the Development; existing systems/databases, surveys, etc. This 2.3 Reorientation of the Training Delivery Model to is not an entirely new activity, as it was Reflect Employer Defined Competencies. included in the M&E framework of the original project design Component 3: Strengthening the Training and Employment Fund (original cost US$0.06 million) TO BE DROPPED. Training and Employment Fund Development: Institutional Development of the TEF under the E- TVET System Reform. The objective of this component is to support the institutional capacity of the TEF in the fulfillment of its mandate to identify, finance, and facilitate the delivery of skill development initiatives that will enhance the operational efficiency of the productive sector. The E-TVET Council will provide policy guidance for implementation of the component. Component 4: Project Management (original cost US$0.69 million; revised cost US$0.55million) TO BE RETAINED The objective of this component is to support project implementation arrangements. This component will fund key staff to be hired for the implementation of the proposed project. This will, inter alia, include an Executive Director, Procurement Officer, Financial Management Officer, M&E Officer, and IT Specialist. The component will fund activities related to the overall project implementation, including minor goods, materials and operational expenses and services. Note: Current DCU staff financed through the Project: Procurement Officer, Financial Management Officer, M&E Officer, and VTC Component Coordinator; and no longer includes an IT Specialist. 10. Institutional arrangements Primary responsibility for project implementation continues to reside with the E-TVET Council chaired by the Minister of Labor, with the Development and Coordination Unit (DCU) responsible for all procurement and financial aspects of the project and coordination of all related services as well as project monitoring and evaluation (M&E). Specific activities and components are implemented by the implementing entities (E-TVET Council/Secretariat and VTC). Contrary to the understanding during project appraisal, there is no need for a steering committee to play an executive leadership role for implementation of the overall reform 14 program, as it has proven redundant to the role already played by the DCU and the secretariat. In effect, the steering committee has not existed since the project launch. 11. Financing • Project Costs Project Costs (US$ m) Components Current Proposed Loan Gov. Total Loan Gov Total 1. E-TVET Council Development with Employer Participation 1.6 0.3 1.90 0.6 0.3 0.90 2. Restructuring of Vocational Training Corporation 5.24 0.9 6.14 5.24 0.9 6.14 3. Strengthening the Training and Employment Fund 0.06 0 0.06 0 0 0 4. Project Management 0.6 0.1 0.70 0.45 0.1 0.55 Total 7.50 1.3 8.8 6.29 1.3 7.59 • Reallocations Category of Allocation % of Financing Expenditure Current Revised 1. Goods 1,800,000 1,800,000 100% of Foreign Expenditures; 100% of Local Expenditures (ex- factory cost), and 90% of Local Expenditures for other items procured locally. 2. Consultants’ 4,881,000 4,471,250 90% for firms within services, territory of the Borrower; including audit, 95% for services of and Training individual consultants within territory of the Borrower; and 100% of foreign expenditures. 3. Unallocated 800,250 0 Front End Fee 18,750 18,750 Total 7,500,000 6,290,000 Cancelled as of October 4, 2012 1,210,000 • Cancellations It was agreed to cancel a total of US$1.21 million, due to the cost savings resulting from the project restructuring, making the revised Loan amount US$6.29 million. 12. Financial management The project will continue using the same financial management and disbursement arrangements, including staffing, internal controls, accounting and reporting, auditing and budgeting. The audit report with audited financial statements and management letter for the year ended December 31, 2011 were submitted on time to the Bank with an “unqualified- 15 clean� audit opinion. There are no outstanding audit reports or overdue financial reports under this project. 13. Procurement The Procurement Plan (PP) will be revised in alignment with the proposed changes in Project components/activities. The revised PP shall be submitted to the Bank for no objection no later than one month after approval of the restructuring. 16 ANNEX 1: Results Framework and Monitoring JORDAN: EMPLOYER DRIVEN SKILLS DEVELOPMENT PROJECT Project Development Objective (PDO): Assist the Borrower in improving its TVET sector through the harmonization of policies pertaining to the development of said sector and the realignment of such policies with the operational functions of E-TVET, including the development of employer participation in the formulation of said policies and in carrying out institutional development reforms as well as in the design and delivery of a skills development program Revised Project Development Objective (PDO): Realign the E-TVET Sector with the National Employment Strategy by enhancing the enabling conditions for employer participation in (i) TVET institutional development, and (ii) skills development program design and delivery by the Vocational Training Corporation. D=Dropp ed Cumulative Target Values PDO Level C=Contin Responsibility Unit of Frequenc Data Source/ Results ue Baseline for Data Measure y Methodology Indicators N= New 2009 2010 2011 2012 2013 Collection Core R=Revise d Indicator One: Number of employer-driven E-TVET occupational Council R Number 0 0 0 6 6 6 Annual DCU profiles minutes of developed and meeting endorsed by the E-TVET Council Indicator Two: Organizational audit, staffing plan and R Text NA No No No No Yes Annual VTC Records DCU organizational structure introduced in VTC Indicator Three: Number of employer-driven skills N Number 0 0 0 0 0 3 Annual VTC Records DCU development programs designed and implemented Indicator: D Text Passing of E- Functional E- TVET TVET Council Council law Indicator: D 1-5 point Improved Likert employer Scale satisfaction of E- TVET graduates (VTC and MOE/VE) entering employment Outcome D Numeric 6.4 6.8 8 10 12 Annual VTC MIS VTC Indicator al system Improved VTC’s internal efficiency through increased trainee/instructor ratio (6.4 in 2006 to 12 in 2013) Outcome D Numeric Zero 10 5% increase 5% increase 10% 15% increase Annual TEF MIS TEF Indicator al increase Increased number of Firms receiving training through TEF INTERMEDITATE RESULTS Intermediate Result (Component One): Revised Intermediate Result (Component One): 18 Intermediate E-TVET Annually Project Files Result Indicator Sector E-TVET E-TVET One: Annual E-TVET Council & Sector Development and Assessment Council’s Secretariat Annual introduction of a Report minutes of Assessment TVET Sector generated Meeting Report Performance generated Assessment E-TVET Quarterly System (PAS) Sector Progress Annual Report E-TVET Assessment N TEXT None Sector Report PAS-based Annual discussed & reports Assessment endorsed by Report the E-TVET discussed Council & endorsed by the E- TVET TVET providers are Council generating PAS-based reports Intermediate N TEXT Year 5 Project Files Result Indicator E-TVET Two: 1-5 Likert Council & Increasing public scale based Secretariat awareness for E- on survey of TVET sector Knowledge , Independent attitude, and Data None - 3.4 - - 3.4 – 3.6 perceptions collection towards the Firm E-TVET Sector 19 Intermediate D TEXT National National Awareness Awareness Awareness Annually Market Result Indicator program program Activities Activities Activities Research/ Secretariat Enhanced drafted/ developed implemented implemente implemented Tracer study understanding of phased d of TVET occupational Awareness Stakeholders opportunities Awarenes Activities Baseline Perception s material implemented Perception Baseline +0.5 introduced +0.2 Perception (on a scale of Baseline (on a scale +0.3 1-5) perception of of 1-5) (on a scale TVET of 1-5) occupational opportunities (1-5 point scale) established Interim Result D Numerica Negligible 5% increase 5% increase 10% 10% increase Annually Project Files DCU with Indicator: l increase support of Increased subject-matter employer-driven Zero experts Occupational Profiles developed Interim Result D Numerica Negligible 10% increase 15% 15% 15% increase Annually Tracer DCU Indicator: l increase increase Studies of Increased number VTC training of the centers restructured VTC Zero centers establishing performance indicators 20 Interim Result D Numerica Negligible 5% increase 5% increase 10% 10% increase Annually Tracer VTC Indicator: l increase Studies of Financial VTC training resources centers increasingly And Annual allocated against Zero Audit actual Reports performance indicators of the restructured VTC training centers Interim Result D Text Performan Xx Xx Data Performance Annually E-TVET DCU Indicator: ce targets workshops workshops gathering targets and Council’s Policy objectives and and seminars and seminars and data timeline/ minutes of define feedback timeline/r to TVET to TVET analysis results meeting from TVET esults stakeholders stakeholders tools framework stakeholders framewor on the results on the implemente for the TVET Project Files k for the framework results d system TVET framework revised system Data Increasingl gathering and Data y link Policy Xx data analysis gathering budget/reso objectives workshop tools and data urce revised s and developed analysis allocation None seminars tools with the to TVET implemented established stakeholde objectives rs on the Increasingly and targets/ results link results framewor budget/resou framework k rce allocation Policy with the objectives established revised objectives and targets/ results framework Intermediate Result (Component Two): Revised Intermediate Result (Component Two): 21 Intermediate R Text New New Business Annually Project Files Result Indicator Business Model Piloted VTC Three: Model Quarterly Approved Progress Piloting of New Training reports employer-driven New Model Piloted Business, Training Consulting Training and Model firm progress Governance Approved New reports Models in three Governance None VTC centers New Model Piloted Governanc e Model Approved New Organizational New Structure Organizatio Piloted nal Structure approved Intermediate N TEXT Baseline Annually Result Indicator value for VTC Records VTC four: regular 2% Increased courses is increase in 2% increase enrollment rate at 7603 regular in regular VTC courses courses Baseline value for short-term 5% 5% in short- courses is increase in term courses (3230 + short-term 1964 1) = courses 5194 1 This number reflects ONLY the numbers of the trainees from OUTSIDE the VTC in the (TDI, OSHI, and Drivers Training Center) 22 Intermediate N TEXT Baseline Annually Result Indicator value for VTC Records VTC 2% Four: regular increase in 2% increase Increased female courses is regular in regular enrollment rate at 1938 courses courses VTC Baseline value for 4% 4 % increase short-term increase in in short-term courses is short-term courses (1866 + courses 165 2) = 2031 Intermediate R Percent Annually VTC Result Indicator Baseline VTC Records Five: value is 65% 70% 70% Completion Rate of VTC graduates 2 The numbers reflects ONLY the numbers of the Females trainees from OUTSIDE the VTC in the (TDI, OSHI, and Drivers Training Center) 23 Intermediate D Text Drafting Passing of the 1-3 Model Lessons Financial Result Indicator of by-laws Law Centers learnt used resource Annually VTC MIS VTC Functional evaluated to revise allocation is restructured Business 1-3 Model model linked to VTC/ Skills Model Centers adopt Lessons fulfillment of Development developed a new learnt used Financial performance Agency business to revise resource Targets in 10 established/ new model/outsour model allocation Model business model cing to is linked to Centers (financing, international Business fulfillment staffing, and consortium Model of 30% of VTC management) implemented performanc centers retain Business e Targets in their income Model Training 4- 6 Model approved/test Centers Centers ed establish performance 10% of Targets VTC centers VTC centers retain their eligible to income retain their income Financial resource allocation is linked to fulfillment of performance Targets in 1- 3 Model Centers 24 Intermediate D Text Result Indicator: Organizati Transition New mode New mode New mode of Annually VTC Files VTC Autonomous onal audit Plan of operation of operation in Governance conducted implemented designed operation place model in place in place Transition 3 Model 3 Model Performance Plan Centers in Centers Performanc Appraisal developed place evaluated e Appraisal System System conducted New An Attrition Transition conducted organizati and training Plan being New Salary onal chart plan being implemented New Salary Structure designed implemented An Attrition Structure System and training System implemented An New plan being implemente Attrition Organization implemented d An Attrition and Chart and training training developed An plan being plan Performance Attrition implemented developed Job Appraisal and Descriptions System training developed conducted plan being implemente Performance New Salary d Appraisal Structure System System developed implemented New Salary Structure System developed tied to Performance level 25 Intermediate D Numerica Baseline Baseline + 0.1 Baseline + Baseline + Baseline + Bi-Annual Tracer Study DCU and Result Indicator: l 0.1 0.2 0.5 contracted VTC MIS independent Satisfaction of consultants employers with Project Files the availability, quality and relevance of training being delivered through VTC Intermediate D Numerica Zero 1% increase 1% increase 5% 5% Result Indicator l increase increase Annually VTC MIS VTC Increased percentage of non-leavers from 10th grade out of total enrolment (inter alia in- service workers, seasonal workers, and unemployed) Intermediate Result (Component Three): COMPONENT DROPPED Revised Intermediate Result (Component Three): Note: None of the core indicators were used. 26