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TRAINING INSTITUTE FOR COMMERCIAL VEHICLE DRIVERS IN

ETHIOPIA (140347)

A private public partnership project to support specialized skills development in Ethiopia

Date

November 2016

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Basis for Application Business for Development (B4D) Requesting Party: Organization: United Nations Industrial Development Organization Contact: Mr. Dejene Tezera Address: Vienna International Centre – Wagramerstr 5. Austria, Vienna Tel: +43 1260263499 E-mail: d.tezera@unido.org Website: www.unido.org In collaboration with: Organization: AB Volvo Contact: Malin Ripa (project owner) Address: 405 08 Göteborg, Sweden Tel: +46 31 661161 E-mail: malin.ripa@volvo.com Website: www.volvogroup.com

Johan Reiman (Project coordinator) 405 08 Göteborg, Sweden +46 31 323 3423 Johan.reiman@volvo.com

Organization:

Selam Vocational Training College

Contact: Mr. Shewangezaw Lullie. Address: Selam village Addis Ababa Ethiopia Tel: +251 11646 292 646 E-mail: gm@Selamchildrenvillage.org The application relates to: Location of project: The project will be located in Addis Ababa, Ethiopia Total calculated project cost: USD 5,445,000 Timeframe: The project will be implemented over a period of 5 years. Previous work with Sida UNIDO and Volvo have both worked with Sida in the past.

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Signatures On behalf of the Government of Ethiopia: ________________________________________ On behalf of the United Nations Industrial Development Organization: ________________________________________

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Contents1.  Background ................................................................................................................. 5 

2.  Challenges (problem analysis) .................................................................................... 5 

3.  Strategic fit with Sweden’s development country strategies .................................... 11 

4.  Project ....................................................................................................................... 12 

5.  The objectives ........................................................................................................... 14 

6.  Expected outcomes ................................................................................................... 14 

7.  Target group .............................................................................................................. 16 

8.  Project stakeholders .................................................................................................. 17 

9.  Implementation arrangements ................................................................................... 18 

10.  Project budget ........................................................................................................ 20 

11.  Sustainability and other issues ............................................................................... 22 

12.  Risk and risk management ..................................................................................... 28 

13.  Monitoring and evaluation ..................................................................................... 28 

14.  Time frame and scheduling .................................................................................... 29 

15.  Legal context and contractual arrangements .......................................................... 32 

16.  Other requirements ................................................................................................. 32 

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1. Background Ethiopia’s economy is one of the fastest growing in Africa. Agriculture still contributes 40 percent to GDP, industry 14 percent and services 46 percent (2013/14). Although agriculture remains the largest sector of the economy, the base of economic growth is broadening, with industry making increasing contributions. The share of GDP generated by agriculture declined from 50.2 percent to 41.9 percent between 1989 and 2014, and the sector remains an important source of growth, employing more than 85 percent of the population. However, given mounting pressure on the land, sustaining higher rates of growth in agriculture which is mostly subsistence will require substantial effort and faces many challenges. Services, dominated by financial intermediation, public administration, and retail business activities, are the second largest sector of the economy, with a share that has remained stable over the past decade. The share of GDP generated by industry remains small, but is gradually increasing in importance. The country aims to sustain an annual rate of economic growth of more than 10 percent to become a middle-income country by the period 2020-23 According to the Ethiopian Growth and Transformation plan (GTP II), the share of agriculture, industry and services is projected to reach 35.6, 22.8 and 41.6 percent respectively by year 2020. These goals will require significant improvements in labor productivity. As the economy develops and the industrial and service sectors adopt more complex production techniques, a workforce with more technical skills will be necessary. International experience suggests that investments in vocational training are especially important in order to both avoid shortages of skilled labor to the industry and provide jobs for the youth.

2. Challenges (problem analysis) Current situation As a land-locked country with a population of more than 90 million, limited and dysfunctional rail infrastructure totaling 681 kilometers (km) and 18 airports with paved runways, Ethiopia is highly dependent on road transport for the movement of passengers and freight. The road (sector) has continued to witness increased investment during the first Growth and Transformation Plan (GTP) implementation. This has helped to increase the road network from 48,800 km in 2009/10 to 60,466 km in 2013/14. The total distance covered by busses increased from 70,000 km in 2009/10 to 101,983 km by 2014/15. The number of passengers increased transported increased from 148.1 million to 394 million. The GTP II, covering the period 2015/16 to 2019/20, targets a doubling of the length of all-weather roads from 110,414 km to 220,000 km by 2019/20. The Federal Transport Authority (FTA) is responsible for the federal roads. The Rural Roads Authorities (RRAs) are responsible for regional states. All-weather roads at the community or rural (Woreda) level are projected to reach 71,522 km by 2014/2015.

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According to the latest available transport authority data, there are 65,534 commercial transport vehicles in Ethiopia and it is estimated that it will reach approximately 90,000 vehicles by 2018. From 65,534 commercial vehicles, about 35,000 have a load capacity between 7 and 40 tons. More than 60 percent of the trucks have been in operation over 10 years. The country also has an estimated 10,000 pieces of heavy duty construction equipment, such as (dozers, excavators, rollers and graders). Most of these are imported as used. Ethiopia imports approximately between 2,000 and 3,000 pieces of heavy duty machinery per year. To encourage more imports of such machinery, the government of Ethiopia provides duty-free privileges to importers once the companies are approved by the Ministry of Urban Development and Construction (MoUDC). There are six oil companies using over 1,000 liquid bulk cargo (fossil fuel) tanker trucks and only 7.5 percent of these tankers are below the age of five. Pushed by the rapidly growing economy, demand for new commercial vehicles and skilled drivers will increase sharply in Ethiopia in the near future. The commercialization of agriculture, fast increasing quantity of trade, mining, housing, roads, airports construction and the ongoing and planned mega-projects of dams, irrigation schemes construction are helping to drive economic growth. However, with expansive territories to cover, and long handling chains between farmers in rural areas and processors in urban areas, high post-harvest losses are common. Efficient transport is important in reducing such losses and professionally trained drivers are key to efficient transport. However, there is an acute shortage of professionally trained drivers. This shortage is projected to continue for the coming two decades, unless the government and private sector operators are able to address the constraints facing the sector.

Unemployment

The unemployment1 rate in the country is 17.5 percent. Urban unemployment rate is 20.6 percent, which is about ten times higher than in rural areas (2.6 percent). The incidence of unemployment also varies by gender. In urban areas unemployment among women is estimated at approximately 27.2 percent, compared to 13.7 percent among men. The same pattern holds true for rural areas, where approximately 4.6 percent of women and 0.9 percent of men are reported to be unemployed. Rural-urban migration – driven by the increasing rural population density and the resulting smaller farm sizes and low level of agricultural productivity – is one of the main contributing factors to urban population growth and increased urban unemployment. Urban unemployment, youth unemployment in particular, remains a growing area of concern for the government. A large size of the labor force is also engaged in the informal sector where underemployment, poor earning and lack of institutional protection are the characteristic features. These realities

1 Unemployment is measured by taking the following three criteria into consideration, simultaneously: without work, currently available for work, and seeking work

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nurture the problem of the working poor in Ethiopia, making poverty more a result of poor earnings than unemployment. The rapid growth of the supply of labor is the central feature defining the labor market in Ethiopia. The labor force is growing much more rapidly than the population as a whole because of Ethiopia’s demographic profile which is characterized by many more under-15 year-olds entering the work force each year than there is old people leaving the labor force. The latest available data of under-employment in Ethiopia stands as 51 and 47 percent for males and females between the ages of 15 and 29 in urban areas.

GoE’s strategy for employment generation

According to the second Growth and Transformation Plan (GTPII), the Government of Ethiopia (GoE) intends to create 717,114 more jobs in urban areas by 2020. This will be achieved by creating conducive environment for the private sector, attracting both domestic and foreign investment and developing human resource requirements for the industries. In order to fulfill this requirement, emphasis will be given to establishing strong linkage between the transport sector and Technical Vocational Education Training (TVET) colleges and other relevant institutions in order to make their programs well-matched to the requirements of the private sector.

National Employment Policy and Strategy (NEPS)

The government of Ethiopia formulated the National Employment Plan and Strategy (NEPS) with the following objectives and actions:

− Accelerating private sector development for employment generation − Ensuring effective and efficient public sector employment − Support private investment in the employment-intensive manufacturing sector and

enhance its competitiveness − Promote the labor-intensive private construction sector − Expand the export of labor-intensive manufactured and processed products − Improving and raising labor productivity − Improving labor administration and strengthening labor market institutions − Achieving a Demographic Transition − Arresting Rural-Urban Migration − Mainstreaming Gender and Youth in Employment Generation

Vocational Training in Commercial Vehicle Driving

Each year, more than 120,000 regular students (nearly 50 percent men and 50 percent women) graduate from vocational schools in Ethiopia at different levels (level 1 – level 5). However, due to the supply driven nature of the TVET system, many graduates from TVETs do not find employment in their area of specialization. Since no TVET school provides training in Commercial Vehicle Driving (CVD), most of the commercial vehicle drivers in the country do not have professional education. There is no government training school in the country serving the public transport institutions. As of 2013, there were approximately 58 CVD training schools

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registered in Addis Ababa. However, as a result of the increasing number of traffic accidents in the city, the FTA undertook the evaluation of the CVD schools and revoked the licenses of 15 driving schools that scored extremely low and temporarily suspended the operations of 34 schools. As a result, only nine schools remain operational, albeit with limited capacity and low quality training.

HIV and AIDS

In Ethiopia, there were 730.000 People Living with HIV/AIDS (PLHIV) in 2014. In 2011, the prevalence of HIV infection was estimated to be 1.5 percent of the adult population (1.9 percent of all females and 1 percent of all males). The HIV epidemic in Ethiopia is generally stabilizing, with signs of decline in major cities, though rising in small towns and market centers. Women and children are particularly affected by HIV/AIDS – 60 percent of the PLHIV in the country are females (totaling around 700,000 women) and about 80,000 are children. Despite advances in the fight against HIV/AIDS in Ethiopia, a report for USAID concluded that HIV prevention actions remain lacking or inadequate among high risk groups such as truck drivers and suggests increased focus on these groups in urban areas and regions. Analysis has shown that HIV prevalence is four times greater among populations that reside within 5 km from a main asphalt road compared to those further away. Truck drivers are particularly susceptible to HIV/AIDS. Drivers s are of an age to be sexually active, but are separated from regular partners for extended periods of time. Moreover, they carry large sums of cash to meet their travel needs. Combined with easily accessible sex networks operating along the highways and at halt points, truck drivers are attractive customers to the sex work industry in the country and thus, also contribute to spreading HIV/AIDS. Adult HIV prevalence is more than five times higher in urban areas (10.5 percent) than in rural areas (1.9 percent). AIDS accounted for about 34 percent of all deaths occurring among the population aged 15-49 years. Regarding the regional distribution of the epidemic, the highest infection rate is in Addis Ababa (9.2 percent) followed by Diredawa (4.9 percent) and Harari (3.9 percent). Both regions are transport hubs where there is heavy truck traffic to and from the port of Djibouti. The infection rate in other regions varies between 0.9 and 3 percent. A recent study which evaluated the economic impact of HIV/AIDS in 15 different organizations shows that the HIV incidence was 0.58 percent of the workforce, and was concentrated mainly in manufacturing, and transport and communication industries. Of the 233 AIDS cases studied, 109 (46.78 percent) were in the transportation sector which required long distance travel and a significant amount of time away from home. A survey of truckers and their assistants found that 17.3 percent those surveyed were HIV-positive.

The loss of income, in addition to rising medical costs, reduces the ability of people to provide care for themselves and their families, pushing HIV-affected households, in particular women and children, deeper into poverty.

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The epidemic damages businesses through absenteeism, falls in productivity, labor force turnover, and the subsequent added costs to operations. Moreover, company costs for healthcare, funeral benefits and pension fund commitments rise as people take early retirement or die from AIDS-related illnesses.

Road traffic accidents

With 65 fatalities per 10,000 vehicles, Ethiopia has one of the highest fatality rates per vehicle in the world. The majority of accidents are attributed to limited driving skills. The government plans to reduce this rate to 27 per 10,000 vehicles by the end of the second Growth and Transformation Plan (GTPII) in 2020. The FTA report indicates that 87 percent of vehicle accidents in 2012 were due to driver incompetence. This is linked to unsatisfactory level of drivers’ safety training and awareness of the pedestrians, including children.

Ethiopian police records show that between 2003 and 2007, at least 76 percent of fatal accidents were due to driver error, 6 percent due to vehicle defects, 5 percent due to pedestrian error, 2 percent due to road defects and the remaining due to other causes. Over half of road traffic accident deaths in Ethiopia involve pedestrians, of whom 20 percent are children younger than 18 years old.

The analysis shows, among other things, road accidents erode more than 0.49 percent of the country’s GDP. A mix of revised laws that set a uniform standard in the issuance of driving licenses, empowering organizations such as the federal transport authorities and impose heftier fines for traffic violations are strategies adapted to reduce the road accidents in Ethiopia

Motor vehicle crashes have far-reaching financial and psychological effects for employees, their co-workers, families and employers. Introduction and mandatory road safety training and awareness campaigns can reduce the number of insurance claims, vehicle repair expenses and time away from work due to driving related injuries and deaths. These situations make road traffic safety training a national priority.

The government established a National Road Safety Council (NRSC) in 2011, by an Act of Parliament within the Ministry of Transport, to spearhead all road safety activities in Ethiopia over the next 10 years. This project will work with the NRSC in the form of capacity building and awareness campaigns in collaboration with national and international NGOs.

Ethical conduct of drivers and anti-corruption

There are reports that some commercial vehicle drivers are engaged in un-ethical conduct such as fuel stealing, replacing new truck tires with old ones, the general misuse of vehicles, including often overloading them. Other issues, such as drunk driving, ignoring speed limits, working excessive hours, are also a problem. Transport companies spend considerable time and resources to minimize such occurrences, but are largely unsuccessful. The project will introduce ethical behavior training to the drivers and will introduce accountability courses. The project will also work with the stakeholders to develop mechanism such as introduction of ethical conduct as criteria for the renewal of driving licenses and for the selection of the trainees.

1. During the lifetime of the project, UNIDO will make sure that the project resources are used according to UNIDO’s established standards to avoid any misuse. There will also be

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a project monitoring system which will check and report any breach or infringement of highest expected standards of accountability and transparency to all stakeholders.

2. UNIDO also has policies and practices for internal control structure, including internal and external audits Code of Conduct, whistle blower function, fraud awareness and prevention etc. Anti-corruption measures are also integrated in UNIDO internal processes. UNIDO employees formally commit to abide by the “Standards of Conduct for International Civil Service”. In addition, all employees of UNIDO must take mandatory courses on Ethical conduct and Fraud awareness.

3. All project staff of UNIDO involved in this project at HQ and in the field will undergo training on ethical conduct and Fraud awareness. This training will be done at the beginning of the project.

Policy

In recent years, there has been considerable expansion in TVET in Ethiopia reaching more than 450 TVET institutions. The average annual increase in enrolment in TVETs between the years 2006-2013 was 30.5 percent. These institutions enrolled total of 308,501 students in regular, evening, summer and distance programs. As a result, Ethiopia has the second largest number of vocational training institutes in Africa. The fact that government is committed to overhauling and reforming the basic framework and conditions of the TVET system shows that it is aware that the training programs need improvement to be relevant to the workplace reality and to maximize their contribution to industry. This project will demonstrate how a systematic integration of vocational training systems with the world of work can be achieved. One of the obstacles to CVD schools is the quality of existing teachers/instructors. Most have low formal qualifications, severely affecting the teaching and learning process. The project will assist the government to define the qualification required for CVD training and the certification of instructors. There is also need for a post-training evaluation of the impact of graduates of driving schools in the transport industry in order to ensure that there is constant alignment to needs. This process will be more efficient if there is an association of CVD schools. The project will assist the public and private sector training schools to form an association and build its capacity to engage in dialogue with FTA and the TVET agency for the review of policies including the certification. Typical challenges of commercial vehicles operations in Ethiopia can be summarized as follows:

− High rate of crashes, resulting in 65 deaths per 10,000 vehicles; overloading which accelerates the deterioration of roads and hence public expenditure; congestion which results in high logistics costs for the private sector which can be reduced by having professionally trained drivers;

− The current training and testing standards of commercial vehicle operation do not meet

the requirements; moreover, standards are not periodically reviewed and revised on a regular basis;

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− An FTA report indicates that 87 percent of vehicle accidents in 2012 were due to driver’s incompetence, which is again related to sub-standard drivers’ training institutions. FTA established a training workshop equipped with simulators for use by government-owned transport companies, though the capacity of instructors is limited;

− Absence of an association for commercial vehicle and heavy duty machinery training schools in Ethiopia which could provide inputs for detailed training curriculum for its members, evaluate schools based on adherence to the Model curriculum and undertake dialogue with the government for improved policy on training incentives for private companies;

− The very few driving schools in Addis Ababa have facilities for proper professional training; and

− There are only very few professionally trained trainers at the moment. In the existing

drivers’ schools, experienced drivers are selected to be instructors, though the experienced drivers are not necessarily good teachers.

− A standard for commercial vehicle driver training instructors exists but requires improvement in order to meet international standards.

Taking into consideration the above, Volvo, Sida, Selam and UNIDO in collaboration with government institutes and other partners will support the establishment of a training institute for Commercial Vehicle Drivers (CVD) at Selam vocational training center in Ethiopia. This will provide an important step in meeting the demand of private sector transport companies in the country.

3. Strategic fit with Sweden’s development country strategies The current Swedish country strategy for Ethiopia, covering the period 2016-2020, includes a focus on improved opportunities for productive employment with decent working conditions, particularly for women and young people, an area which is at the centre of the project proposal. Since 2010, when Sida’s Business for Development (B4D) was decided, there has been increased effort to develop efficient mechanisms to collaborate with the private sector and a number of instruments have been developed. The suggested Private Public Development Partnership is a response to these efforts and fully in line with the PPDP-guidelines. In addition, the project contributes to a more favourable business climate for sustainable and inclusive commercial activities where the private sector is allowed to participate more broadly and gradually translate this space into an actor demanding for accountability and influencing policy. The project is also responding to Ethiopia’s increased focus on economic growth as described in the first Growth and Transformation Plan (GTP) which focused on “building an economy which has a modern and productive agricultural sector with enhanced technology and an industrial sector that plays a leading role in the economy; to sustain economic development and secure social justice; and, increase per capita income of citizens so that it reaches the level of those in middle-income countries.”

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According to the government’s technical and vocational training strategy (TVET), Public and Private Partnership (PPP) is stressed as the means to fully utilize the experiences and capacities of the private sector to improve the quality and relevance of TVET; it will increase resources invested in TVET; it will improve supply and hence accessibility of the system; and partly relieving government from the burden of TVET delivery which would enable the government to concentrate its resources and efforts on its regulatory and supportive functions. As a project, it fulfils all the key criteria for B4D and it has been prepared with adherence to the guidelines for PPPs. The Project has a strong element of action-learning in line with B4D’s approach, reflected in applying different models for vocational training in terms of partnerships, and as an explicit system for results-based learning.

4. Project

The overall objective of the project is to create productive employment opportunities for Ethiopian youth, both young women and men, in commercial vehicle driving and improve the shortage of skilled labor in transport enterprises. The project will ultimately reduce road traffic accidents and improve the health of the truck drivers around the country. It will also contribute to the efforts of the government in transforming the driving schools in the country. The training school will provide up to five years of training for up to 40 regular trainees annually. It will also undertake short term modular training for at least 480 drivers annually from different companies around the country. The revenue generated from the fees charged for the short-term modular training will be an important contribution to making the school financially sustainable. An effort shall be made to particularly target females as trainees and as trainers. It has also been realized that the GoE desires the output of the project to be a mix of skilled trainers and drivers with an emphasis on the former. According to the FTA there is a demand for up to 100 trainers annually. This desire is motivated on account of its ability to have a larger impact – the more trainers are graduated, the bigger the impact of the project on the sector. The training programme will take the indicated desire into account. This will be achieved by strengthening the institutional capacity of Selam training school to deliver up-to-date training courses relevant to the requirements of modern enterprises which are expanding their operations in Ethiopia.

Considering that an estimated 85 per cent of all automotive vehicles in Ethiopia are second-hand and at least ten years old (average age of the fleet of the country is 15-20 years), maintenance and basic mechanic skills are of great importance to commercial vehicle drivers. Such skills will be taught as part of, or in connection with, the drivers training (level I of the HDECoVA training at Selam).

The Government of Ethiopia, represented by the FTA, is currently in the process of revising the standards for drivers of heavy duty vehicles. It is therefore necessary for the training programme to take the envisaged revised standard into account in designing the training programme and curricula.

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Figure 1 project implementation model

The project will be a pilot project to showcase a public private partnership in vocational training. The private sector will be deeply involved in the formulation of the curriculum according to the need of the enterprises; the government will develop the appropriate regulations and certification of the trainers and the students. The experiences of the school including the curriculum, the certification of teachers, selection of students and the management of the schools will be disseminated to other schools, thereby contributing to supporting the development of appropriate policy by the government to improve the quality of the vocational training system in the country.

Project Model Selam Vocational School

Best practices & policy

Certification

Regulations

Demand

Apprentices

Graduates

Public sector

Private enterprise

Curriculum, trainers, better practices, PPP model, management etc.

Project Steering Committee

AB Volvo

Sida FTA

UNID

STVC

Local Companies ETA

School 1 School 2 School 3 School 4

Regulation Demand

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5. The objectives The Project has the following overriding objectives:

1. Provide youth (women and men) with skills that will enable them secure long-term sustainable income

2. Help strengthen professional commercial vehicle drivers training in the country to meet the increasing demand of the transport, construction, agriculture and mining industries (private sector).

3. Support the efforts of the government to scale-up the experience of demand driven, vocational training and review policies accordingly

6. Expected outcomes

Outcome 1: Productive employment opportunities created for youth in CVD

Expected outputs for outcome 1 The project aims at establishing the first vocational training school for the training of trainers and CVD in the country to meet the growing demand from private transport companies. The vocational training school will train 40 trainees each year and more than 480 skills upgrading short term trainings which will be certified as professional CVDs and more than 20 trainers. An effort shall be made to particularly target females as trainees and as trainers/teachers. − A training institute for CVD is established and operational − New curriculum modules are developed and approved by relevant authorities − Trainers in CVD are trained to deliver up-to-date training − Young trainees (40 women and men) are enrolled in the training program and graduate as

CVDs every year − In addition at least 480 drivers from different transport companies will participate in a skills

upgrading program up to the level required to attain a Commercial vehicle Driving License (CDL)

− At least 12 other schools (number of students to be determined during the inception period) in the country use the curriculum of the model school to be established at Selam starting the second year of the project.

Outcome 2: Reduced road traffic accidents,

The project will strive to introduce mandatory road safety training, such as defensive driving and awareness campaigns in schools in order to reduce the fatality rates from 65 to 32 in five years’ time according to the target of the government. Expected outputs for outcome 2

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− Road traffic safety policy/program developed and implemented − students (women and men) get skills upgrading training leading to professional

Commercial Driving License (CDL) including eco-driving − Impact on the environment reduced through training in eco driving and environment

consciousness

Outcome 3: Experience of the PPDP training institute is incorporated in the national framework in vocational schools and truck drivers’ schools

The project, in collaboration with the FTA, will establish standards for the teachers and students certification and assist other schools to adapt new curriculum for CVD training based on the success of this new institute. Expected outputs for outcome 3

− The government’s strategy for partnership with the private sector in technical trainings is promoted for scaling up of improved technical trainings and , gender equality to ensure inclusive growth

− Policy change in CVD and certification of schools completed (the model is also replicated for other vocational schools)

− The new curriculum is disseminated to other CVD training facilities − The standard for certification is prepared and presented to stakeholders

Outcome 4: HIV prevalence rate reduced among the truck drivers

The project will work with different partners to support the national integrated network of interventions for fighting HIV/AIDS; to develop an implementation plan clearly describing the roles and responsibilities of different actors in fighting the spread of HIV/AIDS among the truck drivers. This project will work with transport companies, government institutions and CSOs to provide truck drivers with improved rest stops locations. The project will also help establish information centers and service outlets in rest places, and coordinate with authorities at the national and state levels to include participation of drivers in HIV prevention trainings as a pre-requisite for renewing and issuing new driving licenses. Expected outputs for outcome 4

− STD and HIV rates decreased among the CVD who have undergone training

Main cluster of activities (details of the activities are summarized in the logical framework annex I)

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7. Target group

The project will have a number of direct and indirect beneficiaries

The direct beneficiaries are youth estimated to be 870 per year2 who will be CVD and certified instructors in the same field and who will have productive employment

The other direct beneficiaries are: (i) private industries who will have access to the highly qualified CVD for their competitive business; ii) Selam training Academy which will be upgraded to be center excellence for CVD; (iii) the Volvo Group will use its private-public partnerships in vocational training in Ethiopia to promote part of its CSR activities and to secure access to drivers for its customers; and iv) government institutions, mainly the FTA, supported by the project to disseminate standards and best practice to other schools.

AB Volvo and other private transport companies will also benefit as local training will help strengthen economic development through the better service provision of local enterprises. The academy will also provide AB Volvo with an effective way to build relationships with potential employees.

All other commercial drivers’ schools who will benefit from qualified instructors, new curriculum and exchange of experience with Selam and adoption of the new model of private Public Partnership model for training.

Summary of Beneficiaries The project will train 40 students (12 women and 28 men) every year as new professional CVD at the Selam vocational school. About 480 men and women from other transport companies will be trained in skills upgrading program every year to become certified commercial drivers. The project will also work with 12 other driving schools using the curriculum and testing standards developed by the project as further detailed in Section 11 (Efficiency) below. These schools are expected to train ca 300 students as certified CVD s every year. Regarding training of trainers, total of 20 trainers (6 women and 14 men) will be trained every year at Selam to become certified trainers. As part of the skills upgrading program, every year 24 CVD trainers from 12 other schools will be trained as continuing students

240 regular students per year for CVD; 20 instructors per year; 480 skills upgrading training for the CVD; 300 students from

other commercial schools using curriculum developed by project, 24 instructors from the other CVD schools.   

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8. Project stakeholders Selam Technical and Vocational College will be the project owner in Ethiopia. Selam is a non-governmental organization established 30 years ago with the purpose of helping under-privileged children and youth through primary and secondary education, as well as vocational training. Vocational training at the College includes mechanical engineering, metal works, electronics and auto mechanics. The facilities of the existing training school established under the ongoing Volvo, SIDA and UNIDO project will be used for training on fundamentals of the CVD. The Selam Training center will provide the project with the facilities and assign a number of trainers to work in the training academy team. Selam will also provide basic training material, utilities for schools, select and manage students and in coordination with local private sector companies organize internships/apprenticeships for students. Selam trainers’ skills will be up-graded to ensure full competence to carry out the training activities. UNIDO will also work closely with the training team to improve their managerial and administrative skills on the day-to-day operations of the training center. Selam will also be responsible for putting in place appropriate pre-testing/evaluation mechanisms of the training to ensure that the required competence levels are achieved by trainees before taking the test for driver’s license. Selam has close cooperation with the FTA and Ministry of Transport in Ethiopia and works closely with the departments in charge of accreditation of private schools and quality control of the teaching system. Selam in collaboration with the FTA and Ministry of Transport will share the new curriculum and the experience gained by this project and instructors with other schools. AB VOLVO is the core private partner company in the project. AB Volvo will, within the limits of the agreed contribution (as specified in Section 10 below), provide training equipment (two (2) simulators and four (4) trucks, but excluding fuel, service, maintenance and repair), support for training of trainers, support for the curriculum development and ensuring the curriculum meets the industry’s standards and quality control of the training material (e.g. the teaching aides teachers use), all as agreed by the parties on a case by case basis. UNIDO is the project manager and brings its international experience in technical vocational training and will provide the overall project management and implementation, while assuring prudent use of financial resources at project level. Procurement of equipment and services shall be carried out by UNIDO, in line with the rules and practices of UNIDO. Local private companies3 will contribute with important experience in the CVD issues and provide fuel, spare parts, service, maintenance and repair and training space for practical training. The local private company collective will have an observer status in the Project Steering Committee, representing the (private sector) transport business in Ethiopia. They will also provide inputs for the development of the curriculum and ensure internships/apprenticeships for students. 3 A workshop on the concepts of the project and the desired type of partnership was organized with representatives from 17 different organizations in attendance. The companies in attendance were companies with large fleets and comparatively long periods of successful operation in the business. There was a consensus among the workshop participants that the lack of competence of drivers is a major reason for road traffic accidents in Ethiopia and that the project is highly relevant and timely to address the problem. All participants confirmed their willingness to be partners in the project by sending drivers for training and providing in-kind contribution to the project.

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The Federal Transport Authority (FTA) will play an important role in the development and review of the new curriculum of Selam, setting standards and testing mechanisms for the CVD and the dissemination of better practices to other schools. This will also help the FTA to promote similar PPP projects and programs for result-based and demand driven skills training in the country and acquiring experience in a new modality of provision of training through PPP. FTA will engage with Selam and other schools to develop appropriate policy for the certification of drivers, instructors and schools. The FTA is also responsible for certifying the curriculum of training academies for CVD. Embassy of Sweden in Ethiopia will fund the Swedish contribution to the project. Sida will have the overall responsibility to supervise its contribution for facilities upgrading; national and international administrative and technical experts; minor equipment provision; and support cost for UNIDO. It will receive and analyze the reports from the project and participate in the biannual meetings to review project progress and agree on the strategic direction of the project. The embassy of Sweden in Ethiopia will play an important role in regularly monitoring the project activities, advocacy and political support for the project at a higher policy making level.

9. Implementation arrangements The project will be executed using a common participation framework. This framework aims to build-up the institutional capacity of Selam training center to improve the day-to-day training activities of the academy using modern technologies, trainers, curriculum and advance the skill level to an international level. This model will offer a mechanism for the international project stakeholders and local partners to jointly plan design and participate in the execution of project activities. This will ensure that a sound structure is in place for the local project partners to sustain the training activities of the academy upon completion of the project. The role of each project partner is critical to the success of the project. UNIDO will be the project manager and will have the project implementation responsibility jointly with Selam and in consultation with AB Volvo.. Selam and UNIDO will appoint a project coordinator who will be responsible for the day-to-day operations. In addition, the implementation of the project will be guided by a rights-based approach, meaning that central principles such as participation, transparency, non-discrimination and accountability will be concretized along implementation. This could, for example, mean that relevant stakeholder analysis is done in order to involve the right actors when developing the curriculum; that student intake is guided by non-discrimination; and that structures to ensure accountability are established and made transparent to the public at large. In the proposed public and private partnership program (PPP) being piloted in this project, the private sector will, within the limits set out herein, contribute with the following:

- participate in the formulation and evaluation of the curriculum (Volvo and private local companies);

- provide training equipment (Volvo and private local companies) - provide fuel, spare parts, service, maintenance and repair and sites for the behind the

wheel training (private local companies);

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- provide an internship/apprenticeship program for the students (both female and male) and, potentially, financial support to training schools (private local companies).

The objective is that, following a successful pilot of the above program, the government will promote PPP and the model through changes in policy and regulations. This will allow the development and implementation of systems that are built on strong and well-defined partnerships between government, the business sector and NGOs. The project stakeholders meet once a year and contribute to the project on strategic directions and support the project activities; ensure the effective cooperation between all key stakeholders; and advise on the effectiveness of the ongoing activities.

Staffing

The Project will have an internationally recruited Chief Technical Adviser (CTA). The principal role of the CTA is to:

Provide advisory support to Selam Academy Be in charge of setting up and initially operating the results-based monitoring system Manage the assets of the project

UNIDO, with input from AB Volvo, will establish a training school management team. The team will include the center manager, senior training instructors and support staff. This team will be responsible for the day-to-day management of the center’s training activities. UNIDO will be responsible to ensure the smooth operation of the academy by providing all necessary inputs through Sida funding, including operational costs, procurement of equipment for the training facilities, rehabilitation works as-required and regular project reporting. UNIDO local project staff will include a National Project Coordinator (NPC), a finance assistant, a logistics officer, a project driver and other short-term consultants. The FTA will play an important role in that it is responsible for (i) certifying the academy, (ii) setting the minimum level of requirements for curricula, (iii) approving the curricula, (iv) issuing licenses to graduates and certificates to trainers and (v) by supervising the training process at least once a year. During the recruitment of project personnel, gender balance shall be aimed at by UNIDO and the Project Steering Committee.

The Project Steering Committee (PSC) will be established from all stakeholders for making executive management decisions during the project implementation and when guidance is required in the framework of the project document (see Annex IV for full ToR for the Project Steering Committee). In general, the PSC reviews and approves new partners and detailed plans of activities and authorizes any major deviation from these agreed plans of activities as further detailed in Annex IV. .

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10. Project budget An assessment of investment in vocational training should consider both short- and long-term benefits. While financial inputs at the beginning are considerable, benefits might arise at different points in time. Benefits may be difficult to quantify and hard to disentangle from other variables affecting performance and productivity gains for the enterprises. Compared to general or academic education, the costs of vocational training are substantial (at least double of the university education excluding the apprenticeship costs) in particular for those occupations that require heavy equipment and sophisticated infrastructure like the CVD. However, vocational school graduates, both female and male, are highly desirable in today’s economy, especially in developing countries. Hence, instead of the question “is it worthwhile to invest in vocational training” we must ask “How can the provision of vocational training be made most cost-effective? The benefits of vocational training can take various forms and arise at different points in time, during or (far) after the course or training. Individuals enjoy benefits from improved earnings, increased employment, mobility, capacity for lifelong learning and job satisfaction. Enterprises’ benefits arise mainly from apprentices’ productivity increases and increased competitiveness and profit. The government benefits both in terms of social/political stability through youth employment. In fiscal terms, education expenses versus increase in tax income from higher earnings from better trained individuals. The project, in collaboration with the LKDF, will undertake the cost benefit analysis of the vocational trainings in developing countries with case studies taking into consideration different determinants of benefits and costs.  

The Project budget in USD is given in the table below.  

PARTNER BUDGET PERCENTAGE

Volvo 870.00 15.98%

Selam 490.00 9.00%

FTA 20.00 0.37%

Local companies 675.00 12.40%

Sida 3,390.00 62.26%

Total 5,445.00 100.00%

   

The details of the project budget are attached as annex II. Selam’s in-kind contributions estimated to be 490.000 to the project are as follow:

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Assignment of counterpart personnel and administrative staff

Nominate a Senior Officer who will act as the focal point for the project Nominate and then release, as contribution in kind, selected national staff to participate in

the project’s activities and in-service of training programs. Other necessary personnel mutually agreed upon as necessary.

Provision of buildings and facilities

Selam will provide the necessary building for the academy and office space for the Project Management (the project will renovate/construct the building as required)

Selam will provide utilities of the building (power generation, water, etc.). AB Volvo will contribute USD 870,000 to the project through the provision of, within the limits of the aforementioned contribution, training equipment (two (2) simulators and four (4) trucks4, but excluding fuel and maintenance, service and repair), support for training of trainers, support for curriculum development, quality control of training material, all as agreed by the parties on a case by case basis. Volvo may contribute with spare parts on an as is, as available basis, but have no obligation to provide spare parts to the project. For the sake of clarity, (i) Volvo’s contribution to the project is made through the in-kind contributions exhaustively listed above and is not a monetary contribution; and (ii) the cost for the aforementioned in-kind contributions shall not exceed an amount of USD 1,762 million, which is Volvo’s maximum contribution to the project. Sida will fund 3.39 million USD through UNIDO for training of the beneficiaries, maintenance, renovation and expansion of the facilities, fuel, spare parts, service, maintenance and repair of equipment, reporting, project management, monitoring and evaluation and for the stipend of selected students. Stipend payments for the most disadvantaged students, both female and male, from different regions will to facilitate their access to higher quality education and hence productive employment, an opportunity that could not otherwise be realized. By providing stipends, the project will enhance rights-based approach and the principle of non-discrimination.

4 The need for trucks for the behind the wheel training is calculated as follows: for the 480 students from other transport companies we calculate a need for 20 hours behind the wheel training per student. This amounts to 4800 hours of behind the wheel training (480*10=4800). We calculate to conduct training for 45 weeks each year which amounts to approximately 106 hours per week (4800/45=106.6). Calculating that each truck will be in use 40 hours per week, we estimate that 2.5 trucks will be required (106/40~2.5). For the 40 regular students to the academy, we calculate a need for 60 hours of behind the wheel training per year which amounts to 2400 hours (40*60=2400). Calculating that we will conduct 40 weeks of training for these students, we estimate to conduct 60 hours per student of behind the wheels training (2400/40=60). This requires 1.5 trucks (60/40=1.5). In order to reduce the number of trucks and the fuel needed, procurement of 2 simulators is foreseen.

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Local private companies will provide fuel, spare parts, service, maintenance and repair, training space for the behind the wheel training, internships/apprenticeships for students as well as other in-kind contributions to the project. The local private companies have also committed to send their drivers for skills upgrading training to Selam on continuous basis. The Federal Transport Authority will contribute staff time of approximately 20,000 USD during the development of the curriculum. Other contributions. Considering that the trucks will be used intensively, considerable maintenance, service and repair work is expected. To the extent possible, maintenance, service and repair work for the trucks will be provided internally at the Selam facilities through the capacity developed in the HDECoVA project. In this case, teachers and students will provide manpower. This will be a possibility for them to gain important practical experience. All trucks will have third party insurance as per UNIDO’s international rules and regulations.

11. Sustainability and other issues  

Sustainability at countrywide level

The project will showcase demand driven design vocational system by creating a model for:-

‐ close communication and linkages of the private sector with the education system, ‐ substantial private sector investment, a collaborative process of curriculum development

for learning at drivers academy and workplaces, ‐ the project will also support the government of Ethiopia to develop appropriate policy for

the certification of schools, students and teachers, promote the PPP model in the vocational schools creating systemic change in the countries TVET system.

‐ standardization of the production of all teaching and learning materials and plans for meeting the newly to be established accreditation standards

‐ Developing a national certification system so that trainees and trainers will be awarded nationally recognized certificates upon completion of their training.

‐ The school will not only produce graduate students but also qualified teachers for its own and other drivers schools mitigating one of the most crucial constraints faced the drivers schools in the country; qualified teachers

‐ Portability of skills: the model will offer another effective sustainable way to deliver training which is tightly linked to all transport companies (not one or two companies) so that the skills are not captive to a specific firm or small group of firms but to the whole 330 registered transport companies that operate commercial vehicles in the country.

Sustainability of the management of the school

The long term collaboration with private sector companies who will, as a collective, have an observer status in the Project Steering Committee during the Project execution time and be represented, as a collective, in the board of directors after the project life time, will increase the sustainability of the management of the school.

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In connection with the initiation of the project, UNIDO, in collaboration with the other stakeholders, will develop an exit strategy which will be implemented with close follow-up of the board of directors. This will maximize the sustainability of the project achievements.

Financial sustainability

Through this Public Private Partnerships model the school will have resources available to purchase and maintain state‐of‐the‐art equipment for learning globally competitive driving which is difficult to obtain in public vocational schools. Sustainable financing of the school through the contribution of the local private sector by sponsoring students by providing internships/apprenticeship for the students during studies and job opportunities after their graduation will reassure the financial sustainability of the school. In addition to this Selam will generate its own income through short term trainings, certification of the drivers, annual inspection of cars etc. At the moment, Selam’s schools revenues recover an average of 63.2 % percent of its expenditure (the school forum Kindergarten to secondary school recovers 64.7 %, agricultural school 96.1 % and other VTCs, which include the heavy duty machinery training 28.8%). Selam has also set a target of 100% cost recovery for all trainings by 2020 which is in the life time of the project).

Local ownership

Local ownership is a key element of the Project. Selam will carry on the training beyond the project period, maintain and continuously upgrade the training, and also provide free of charge the curricula to other parts of the vocational training system in Ethiopia. Selam is a dedicated and well managed school with a long track record, and keen to upgrade its training in line with the Project’s intentions and develop the institute as a center of excellence. To ascertain sustainability, a business plan will be prepared.

Poverty focus

The project would have a direct focus on poverty in Ethiopia in the sense that Selam has a basis in providing services and education to under-privileged youth.

Gender

The project will make best efforts to ensure that at least 30 percent of new entrants for the training program are women. Women are proportionately overrepresented in commerce, accounting, and courses focusing on textiles and hospitality, and underrepresented in technical training courses. Taking into account that the proposed training academy will focus on training Commercial Vehicles, one must recognize that within this area, there must be realistic expectations in terms of what can be achieved over the medium term for gender balance in an occupational area with strong male domination. For comparison, in the same occupational group in Sweden, only 10 percent are women. To ensure that gender considerations are taken into account to the largest extent possible, the proposed project will include a gender perspective in the baseline study, the development of

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curricula and the training of trainers. Moreover, when recruiting project management and staff, UNIDO will undertake efforts to guarantee a fair gender balance and to ensure that recruited personnel either has existing knowledge on integrating a gender perspective or required capacity in this area. Women students will be especially encouraged and an awareness campaign will be developed to target young women to enroll in the program, providing additional information about the positive outcomes from gaining vehicle maintenance training, such as greater earnings opportunities. An example will be a short video promoting successful women trainees in the ongoing program at Selam that can be presented in local television and radio as a model for encouraging fellow females to join the training as CVD. In order to attract more women to the training, publication material will be produced featuring female trainees such as a promotional video in which successful women trainees in the ongoing programs at Selam feature. Radio and local newspapers will also be used. The project will also organize information sessions with all applicants who have registered for education at SCV about the positive outcomes from commercial vehicle training which will include familiarization of the candidates to the kind of occupation they are going to undertake after graduation. The project will also give information directly to family and friends to the extent possible as this group of people has a strong influence on applicants' decision making. Applicants will also be given the opportunity to reselect the department they register with after they have had time to consider the information provided to them and opportunity to discuss it in detail with family and friends. The project will use and build upon the experiences from the Training Academy in Heavy Duty Equipment & Commercial Vehicles in Ethiopia (HDECoVA) project in collaborating with the World Bank Gender Innovation Lab (WB-GIL). There will be a gender consultant who will be involved in the process of gender mainstreaming in this project supported by the gender focal point at the UNIDO HQ. All baseline and monitoring data will be gender/sex-disaggregated. Periodic reports will also provide the performance of the project in gender mainstreaming. This will lead to transformation of the institutional structures in the vocational training system in Ethiopia to be more just and equal for both men and women. The LKDF facility will document the experiences for sharing with other institutes. In addition, the training academy will introduce obligatory sensitization courses to raise awareness regarding sexual harassment and similar gender issues to stop traditional gender stereotypes from being a barrier to the success of female participants. It should be noted, however, that the students trained in this project are expected to work as commercial vehicle drivers or heavy duty equipment operators. Hence, they might be required to be away from home for extended periods of time. The project management will organize information session to familiarize interested applicants with the challenges connected to their future occupations. Special support will be extended to female applicants. The project will assure the workplace needs of women at Selam are addressed. For example, Selam will ensure that gender-separate locking and sanitary facilities are provided at the workshops and class rooms; and that gender separated changing rooms are provided with inside and outside locking mechanisms. The project will also negotiate with enterprises where women will be employed to fulfill similar requirements for the women. Moreover, the project will provide

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training to all students about sexual harassment and related issues. Traditional gender stereotypes should not be a barrier to women participants. The drivers’ school will adopt a gender strategy that is based on the following actions:

1. Educate on sector profitability - on greater earnings opportunities in traditional male occupations;

- Building on and expanding the experiences gained in the HDECoVA project on how to reach potentially interested female trainees, at the beginning of each enrollment period the school will (1) advertise in local and social media to attract new applicants (i.e. through newspapers and street ads but also through participating in local radio shows and on Facebook). (2) Produce and show a video promoting successful woman trainee in the ongoing program at Selam. (3) Candidates will be invited to promotion meetings where role models (i.e. female trainers and current and former female trainees) speak about what it is like to train at HDECoVA and what benefits it brings.

2. Offer complementary courses specifically to female graduates that will give them additional opportunities to find jobs within the heavy duty industry (e.g. not as drivers, but in administration);

- Trainees can take complementary courses in subjects such as IT and administration (accounting, marketing, human resources, personnel, inventory and fleet management).

3. Sensitize potential employers on equality of opportunity and advantages of gender-balances in the work place

- Building on the network of private companies developed through cooperative training in HDECoVA and eventually developed in the Drivers’ school network of companies taking part of the cooperative training

4. Sensitization of family and friends that affect choices;

- Provide information on the benefits of the positive outcomes from commercial vehicle and construction machinery operators training also directly to family and friends; by inviting them to information sessions or by contacting them personally.

5. Provide clear information on safety and security of facilities (as already addressed above);

6. Adapting training programs for the benefit of both female and male students - ensure that material is void of gender stereotypes; train management, teachers, career guidance professionals, and general staff, to avoid gender stereotyping;

7. Use of affirmative action measures in entry requirements to Drivers’ school training.

- Building on the experiences gained in HDECoVA; fine-tuned and appropriate selection criteria will be developed to serve this purpose.

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Environmental and climate impact

The positive environmental impact as a result of interventions is very high. Professional CVD will have skills of economic driving; contribute to the less congestion of a road, which reduce fuel consumption and hence reduces CO2, emissions. As skills are disseminated certain positive effects will also occur as vehicles and equipment are better maintained and managed hence are less polluting. Data on fuel consumption and CO2 emissions will be collected for each trainee; at the start and the end of their training. Levels will be compared with international levels and national averages and changes over time will be analyzed and reported to the stakeholders. This reduction in pollution and savings in fuel will be presented to all stakeholders to highlight the benefits of eco-driving which will be part of the training. An Environment Impact Assessment (EIA) will be undertaken during the project implementation to determine the reduction in CO2 attributable to the eco-driving practices taught as part of the drivers’ education at the school.

Youth

The project has a strong focus on youth with special focus on the new students, thus fulfilling Sida’s new focus in this respect. Trainees are, with few exceptions, youths aged between 18-25 years old when admitted to the training course. The selection of the trainees will be done by an open, inclusive and transparent mechanism. Selection of criteria will be developed at the beginning of the project which will guarantee the selection of students from different geographical regions, gender and targeting the poorest students with the required entry level. The opportunity will be advertised through radio, newspapers and television for sufficient time to ensure that the most appropriate beneficiaries can apply. The criteria for the selection should be approved by the PSC before the announcements.

Potential market distortions

The high and unsatisfied demand for CVD in Ethiopia significantly reduces the risk of market distortions favoring AB Volvo or any other private company participating in the Project. Skills are not brand specific and are transferable to other brands of vehicles and equipment, and the change of employers is common among skilled technicians. As a result, human resources created by the project will rapidly be absorbed by more than 330 transport companies and associations with 69 000 trucks. Any potential market distortions will nevertheless be closely monitored. For example, the record of the productive employment of graduates six months after graduation will be monitored and reported. While participating local companies and their agents are expected to provide internships/apprenticeships and also employment opportunities, there will not be any form of tying employment to these companies. Since there is no institute in the country which provides such kind of training for the private sector, it is assumed that there will not be market distortions (i.e. the project will not create unfair competition with other CVD service providers).

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Efficiency

In addition to at least 520 students trained by the Selam school every year, the project will work with at least 12 other private CVD schools to introduce, free of charge, the new curriculum of the model school. The private CVD schools might not have basic training equipment for the mechanic education (level I of the HEDCoVA training at Selam) which is a precondition for enrolling for CVD training. To mitigate this problem, the project will introduce a special basic theoretical training program at Selam (level I HEDCoVA) and practical training required to complete this level will be given at the local partner companies of the project in the form of internship/apprenticeships for the 40 students participating in the full programme. The students will then continue at private licensed CVD schools which will use the new CVD curriculum developed at Selam under the supervision of the project office. In this way as many as 300 additional students (to be determined at the inception period) will be trained in 12 schools around the country. The project will also work with the FTA and the TVET agency, in developing the school to be able to fulfill the required standards set for all driving schools. A special continuing training CVD trainer will be provided for at least 24 teachers per year from private CVD schools who will be qualified CVD trainers. Regular meetings will be organized for the managers of the private CVD schools, TVET agency, FTA, insurance companies, Traffic police to learn the experience of the Model school (Selam) and improve the efficiency of the CVD schools in the country, develop/propose policy changes/improvements and solve the problems CVD schools face in adapting best practices. This “industrial” training mentioned above, together with the setting of qualification standards for the commercial vehicle driving license and CVD trainers will improve the CVD training in at least 12 other schools.

Feasibility

The project is clearly feasible as it has chosen a well performing vocational school with very good standards as a partner, and it is supported by a company with world-wide presence, including having well established training methodologies. Selam has considerable experience in vocational training which also generates income to cover training costs. The finance of Selam is audited and the results of the audit are presented to the board of directors. There are two boards of directors. The international board is based in Switzerland which monitors the overall management of the organization and mobilizes resources for the children’s cause. There is also national board of directors composed of private sector actors, high profile individuals and the founder of the organization. The management of the organization reports to both the national and international board of directors. At the moment the organization has more than 3,000 students from kindergarten to the vocational school in different fields.

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UNIDO has a good record of engaging in PPP with multinational companies, such as Microsoft, Tesco and HP. UNIDO has the capacity to coordinate all the stakeholders during the project and will prepare a business plan before the end of the first year for approval by the PSC. Both Selam and UNIDO have a very good relationship with the government of Ethiopia. In 2014, Ethiopia was selected as pilot country for support from UNIDO for accelerated industrialization in the context of new Inclusive and Sustainable Industrial Development (ISID) with more interaction between UNIDO and the Ethiopian government authorities.

12. Risk and risk management Risks and their mitigating strategies are provided in Annex III. Risk will be monitored and updated through-out the project period by UNIDO and reported to the stakeholders as a means of performance-based management. Please see annex III for risks and mitigating means.

13. Monitoring and evaluation The M&E system will be established with the project stakeholders using criteria, indicators, and means of verification derived from the project logical framework. In addition to the Logframe, the project will collect the base line data for measuring the results. It will include data collection and analysis, gathering of baseline information, and the preparation of work-plan and budget expenditures assessments. The results will be measured against the base line data and indicators to be collected from reports, information and data generated by other public and private institutions/companies. These measures in addition to bi-monthly tripartite project monitoring meetings by representatives of AB Volvo, UNIDO and Selam will be key management tools so as to ensure the effective and efficient implementation of the project. The monitoring of the activities and financial disbursements will be the responsibility of the project management team. The project management team will prepare regular progress reports on project activities detailing progress achieved in terms of the scheduled program of work, the problems and constraints emerging over the period, and recommendations for correcting them. In addition, a detailed annual work plan will be prepared and will be revised twice a year, identifying activities to be implemented. Each report will be sent to the donors, with copies being sent to the national counterparts for their information, review and recommendations for any appropriate action that needs to be taken. Also, as part of the standard monitoring activities of the organization, UNIDO technical staff will make field visits to the academy twice yearly and prepare reports detailing the project’s progress, achievements/findings and lessons learned. These field reports will be made available, upon request, to the donor as well as to other collaborating projects and partners. Review meetings by the Project Steering Committee will also be held once every six months and on an ad hoc basis if required by any of the Project Steering Committee members. A project progress report, assessing, in a concise manner, the extent to which the project’s scheduled activities have been carried-out, the outputs produced, and the progress made towards achieving the project objectives will be prepared and distributed two weeks ahead of each review meeting. The Project Steering Committee members will analyze the report and will make recommendations for any future follow-up actions required to improve project performance.

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As the scaling-up of the project activities is an important pillar of the project, UNIDO will make sure that proper monitoring will be undertaken by project staff and that best practices are disseminated to other schools and changes/improvements in policy will be achieved through dialogue between the public and private institutions. UNIDO will also allocate adequate funds and personnel for monitoring. The results of the monitoring activities will be shared to all the Project Steering Committee members through regular report, and on the webpage of the project on a continuous basis.

Independent Evaluation

The project shall be subject to an independent mid-term evaluation two years after the actual project start date. The terms of Reference for the evaluator will be agreed upon by the PSC. This mid-term review will analyze the physical, financial and impact indicators. It will also recommend updates in the Logical framework and the indicators in addition to complementary measures required to improve the achievement of the project’s expected objectives/impact to the PSC. The project will also be subject to an independent evaluation upon completion. The project evaluation will be based on assessments of project results and impacts in accordance with logical framework prepared. The evaluations (mid-term and final) will be commissioned by UNIDO in consultation with the other Project Steering Committee members. A budget for this is included in the overall budget.

Relevance

Given the low level of productive employment and needed economic transformation of Ethiopia for sustained and rapid poverty reduction and the pivotal role skilled human resources play in this, the project is highly relevant. Furthermore, the project is an example of a new generation development assistance, mobilizing the local and international private sectors in terms of financial and technical resources, know-how and market linkages.

14. Time frame and scheduling

The duration of the project is 5 years. The timeframe would allow graduation of four batches of students and to adjust any training module based on the performance of the CVDs who graduate from the school. The suggested implementation schedule for the various activities under each program component will be prepared during the inception period.

Activity Months

1 2 3 4 5 6 7 8 9 10 11 12 13 141 Organization of the project office 1.1 Office space and facilities organized

1.2 TOR for the NPC and the manager of the institute and the international coordinator finalized

1.3 Competent national and

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international project coordinator recruited 1.4 Recruited staff undertakes training on UNIDO’s project management and mandatory courses on Ethical conduct and Fraud awareness.

1.5 Office logistics (vehicle procured; furniture; desks and tables )

1.6 Reach agreement on the modalities of the engaging instructors as trainers

1.7 Candidate instructors selection criteria established and recruited

1.8 Other project staff recruited at HQ and the field

2 Allocation of land for the training (practical training)

2.1 Design for the rehabilitation of the workshop preparation tender documents finalized

2.2 Allocation of land and training space for the drivers

2.3 Tendering and evaluation tender and awarding

3 Prepare baseline study/data and inception report

3.1 Collect base line data and improve the indicators based on the study (with LKDF)

3.2 Establish realistic and clearly measurable indicators

3.3 Prepare the inception report and validate by the stakeholders in the first six months of the year

4 Development of training programs

4.1 Agree on the training programs during the meeting Selam, Volvo and UNIDO)

4.2 Preparation list of required training courses

4.3 Consultation with all stakeholders on the (long and short term training programme)

4.4 Training programs (curriculums) preparation in consultation with all stakeholders

4.5 Consent of draft training programs with GoE Authorities

5 Training of trainers 5.1 Identification/Selecting of local candidates for instructors positions

5.2 Contract the candidate instructors 5.3 Training and certification of instructors

6 Trainees

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6.1 Agree on the selection criteria of the trainees

6.2 Public announcement for application trainees

6.3 Selection of candidate trainees 6.4 Start training on fundamentals 7 Equipment 7.1 Identify the equipment and finalize the process of shipment of the training equipment (agree on the procedures)

7.2 Shipment of the equipment 7.3 Customs clearance 7.4 Installation of equipment 8 Working with other drivers schools

8.1 Identify minimum of 12 schools and have series of meetings with them (number TBD during inception)

8.2 Reach agreement on the plan (road map) with the schools to use the curriculum

8.3 Prepare report on the utilization of the curriculum by other schools

8.4 All stakeholders reach an agreement before starting activities of year 2

9 PPDP experience of selam incorporated in the national framework

9.1 MOU with the government authority for dissemination best practice in the national framework

9.2 Agree on milestones to for scaling up of the best practices

9.3 Assemble key stakeholders from public and private and NGOs to discuss policy changes/improvements

9.4 Report on the progress of the policy dialogue before the second year of the project

10 Prepare a plan for the sustainability of the school

10.1 Prepare a management and financial sustainability plan

10.2 Organize a workshop and present the plan to the stakeholders

10.3 Agree on the plan before the starting the activities of the second year

11 establish professional association of the drivers schools (not only for heavy duty trucks)

11.1 Undertake sensitization workshops on the importance drivers schools association

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11.2 Draft by-laws for the association 11.3 Solicit membership and have inaugural meeting of the associations before the end of the first year

15. Legal context and contractual arrangements UNIDO will enter into agreements (to which this project document will become an attachment) with all the various partners (including Sida, Volvo, Selam and the local private companies) and the partners obligations will be in relation only with the entities they have signed agreement with. Separate agreements include:

a Grant Agreement for the project between SIDA and UNIDO.

a Project Agreement for the project between Volvo and UNIDO.

The Government of the Federal Democratic Republic of Ethiopia agrees to apply to the present project, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Government, signed on 26 February 1981 and entered into force on 5 November 1984.

16. Other requirements All stakeholders and other partners to the project must adhere to the principles of the United Nations Global Compact. The use of the Volvo brands by the other stakeholders in this project is subject to Volvo’s prior written consent in each specific case and shall be made in compliance with Volvo’s, from time to time applicable, brand and communication policy.

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Annex I PROJECT DESIGN MATRIX During the initial stage of the project, base line data will be collected and the project design matrix (Logframe) will be updated with more specific targets. Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

Objective

to create employment opportunities for Ethiopian youth in truck driving and improve the shortage of skilled labor in transport, mining and construction industry; reduced accidents and occupational hazards in the road transport and construction sectors

Number of Jobs created as certified commercial driver for young women and men in the commercial vehicle driving ; improved road safety, and public health (from STD)

End of the project report

Outcome 1

employment opportunities created for youth in CVD using the rights based approach

480 trainees from private transport companies’ graduate in skills upgrading program, disaggregated by sex ( after the second year )

40 students (12 women and 28 men) graduate every year as new profession CVD, (starting from 2nd year)

Ca 300 students graduate from at least 12 CVD schools every year, disaggregated by sex (starting from year 3)

20 CVD trainers (6 women and 14 men) trained and become certified trainers at Selam every year (starting from second year)

24 CVD trainers (women and men) will be trained per year for at least 12 CVD schools as continuing students starting from year 2.

85% of the graduates from the institute got productive employment within six months of their graduation, disaggregated by sex

Annual progress reports and periodic report

Output 1.1

A training institute for CVD established and operational The school is fully operational within the first year of the project

Periodic Project report Agreement reached on division of labor between partners

A1.1.1: put in place the management system (recruit international and national staff, considering gender balance where possible)

A.1.1.2: design and refurbish classrooms A.1.1.3: establish the PSC

Project management team and facility in place Periodic Project report International consultants are available to take assignment in the country

Output 1.2

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Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

New curriculum modules developed and approved by relevant authorities

Curriculum developed in the first 6 months of the project Bi-annual report

Government is involved at all stages of the development and hence approval is easier to get

A.1.2.1: establish task force from all stakeholders for curriculum development

A.1.2.2 recruit experts Int’l and nat’l to review the existing curriculum (benchmark with international standards)

A.1.2.3 Consult private sector for the needs A.1.2.4 prepare the curriculum including eco-driving)

and validate it by stakeholders and FTA

Curriculum developed and validated by stakeholders Periodic project report

Output 1.3 −

trainers in CVD trained to deliver up-to-date training - 20 trainers; at least 30% of them women in CVD trained every year (TBD after the curriculum) (after the second year)

- 24 trainers trained as continuing students from other schools in the country to become certified trainers (after the second year)

-

Annual progress report Trainers are willing to work as instructor on full time basis and international trainers are available on time

A.1.3.1 develop competency level required by the institute

A.1.3.2 Determine number of teachers for each specialization

A.1.3.3 recruit/assign teachers A.1.3.4 Organize Training of Trainers ( ToT) A.1.3.4 provide the Trainers with skills upgrading

program

Periodic project reports

Output 1.4 Young trainees ( 40 women and men) graduate in CVD

− 40 students (12 women and 28 men) graduate every year as new profession CVD, (starting from Year 2)

− 300 students graduate from private CVD schools using the curriculum developed by Selam , disaggregated by sex (starting from year 3)

Annual report The sector /profession remains attractive in the country

A.1.4.1 Select students for regular intake (starters) A.1.4.2 reach agreement with private sectors on the

modalities of short term training A.1.4.3 Provide training as per the curriculum and the

agreement with the private sector

Output 1.5

35

Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

Students of the institute undertake internship program in private transport companies during their training period

- 40 (12 women and 28 men) participate in internship programs in at least 10 transport companies during their training period ( after the second year)

Periodic report At least 10 companies are willing to participate in the internship program

A.1.5.1 identify the transport companies with capacity to coach interns during internship

A.1.4.2 reach agreement with companies on the modalities support they can provide for the students

A.1.4.3 undertake the internship program with proper evaluation and feed back to the school to improve the training courses

Outcome 2 − − Traffic accident reduced

− Traffic incidents by the CV are reduced by 50% in five years’ time (among the trained drivers)

− Midterm results (In third year of the project the performance of the newly trained drivers is measured and shows significant improvement in incident reports compared to non-trained ones )

Periodic and annual reports on the number incidents in companies involved in the project and companies hiring drivers trained at Selam

−

Output 2.1

students (women and men) get skills upgrading training leading to professional Commercial Driving License (CDL) including eco-driving

480 CVDs, disaggregated by sex, are trained and licensed each year from different transport companies and obtain professional license ( after the 2nd year)

Annual report private sectors will have tax and other incentives to train their drivers

A.2.1.1 identify skills gap among the drivers A.2.1.2 develop modular training for the skills upgrading A.2.1.3 reach agreement with transport companies on the curriculum and the timing of training A.2.1.4 undertake training program for skills upgrading up to licensing and annual mandatory trainings and tests

Output 2.2

Road traffic safety policy/program developed 50% reduction of traffic incidents among the trained drivers by the end of the project ; incidents segregated by gender Mid-term :- after one year of graduation the traffic incident rate reported by the trained drivers is less by 50% of the non-trained drivers

FTA annual report Company survey report

MOH, MOE FTA, and media outlets are willing to cooperate and work together

36

Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

A.2.3.1 identify actors who will play important role in road safety training awareness campaigns (CSOs, FTA, schools, TV, Radio etc A.2.3.2 develop a detailed program for training awareness for general public in collaboration with TV radio and newspapers ( to be implemented by the government and NGOs) A.2.3.3 develop a program for school children awareness and incorporate it in school programs (to be implemented by schools) A.2.3.4 evaluate the awareness campaign and adapt accordingly

Output 2.3

Impact on the environment reduced through training in eco driving and environment consciousness

Reduced fuel consumption and maintenance costs is reported by the transport companies (data segregated by gender)

Fuel consumption report s by Companies using trained drivers

Companies are willing to document their fuel consumption segregated by trained staff and non-trained staff..

A.2.4.1 undertake the baseline study on the volume of Co2 emissions from trucks A.2.4.2 include an ECO driving in the curriculum A.2.4.3 Organize an environment awareness workshop for all concerned A.2.4.2 Once agree by all, make eco-driving training mandatory for the CDL

Outcome3 −

The experience of the PPDP training institute isincorporated in the national framework in relatedtruck drivers schools and the vocational trainingschoolsatlarge

− By the end of the project at least 12 schools in thecountry have been certified to deliver trainingaccordingtonewcurriculum

− Mid term result ( 12 schools have adapted thecurriculumofSelam)

− PPPmodelforthemanagementofvocationaltrainingschools ( Selam model) applied in at least 10vocationalschoolsirrespectiveoftheirspecialization

− Mid‐term result (10 schools have started thepartnership with Private sector to improve themanagementsystem)

Endoftheprojectreport The FTA/GoE remaincommitted to theimprovementinthesector

Output3.1 −

37

Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

Policy change in CVD and certification of schoolsmadeandimplemented

− Appropriate CVD licensing and certificationintroduced implemented Appropriate policygoverning the qualification CVD trainers isintroducedandimplemented

− Midtermresult(newGovernmentpolicyenactedonthequalificationofDriversandtrainers)

− MoU signed with the government of Ethiopia tointroduce the new curriculum and certification ofCVD drivers and trainers after the project hasidentifiedschoolsduringtheinceptionperiod

− (completedbeforethemidterm)−

ProjectreportSignedMoU

FTA iswilling to assign focalpoints for the project andplays important role in thepolicyformulation

A.3.1.1 assess the existing policy framework for theCVD in the country and bench mark with bestpracticesA.3.1.2 establishmechanism (policy framework) forthe dissemination of the curriculum to other schoolsasapreconditionforcertificationA.3.1.3 Assist thegovernment in thestandardizationofthequalificationofthetrainersanddriversA.3.1.4 assist the government in enforcing thestandards and (rules and regulations) for thecertification)includingmandatoryannualtrainingforrenewalCDLA.3.1.5assistthegovernmenttodeveloppolicyfortheincentives to transport enterprises to train (upgradetheskillsoftheirCVD

−

Output3.2 −

The new curriculum developed is disseminated tootherCVD

−

A.3.2.1togetherwiththegovernment(FTA)assesthecapacitiesoftheexistingschoolsfortheCVDtoabsorbthenewcurriculumA.3.2.2 organize a stakeholders workshopfordiscussingthenewcurriculumA.3.2.3Agreeontimeframefortheapplicationofthenew curriculum in all schools willing to adapt thecurriculumA.3.2.4 assist the schools by providing instructors(nationalandinternationaltotrainingtheinstructorsoftheschoolstohelpthemadaptthecurriculum

− At least 70% of the CVD schools adapt the curriculum and best practices from the project (20 % at midterm)

− The FTA has standardized the curriculum and tests after 2.5 years of the project.

MoE and MoTR provide incentives and adapt the curriculum in the national vocational training framework

38

Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

Output3.3 −

The government’s policy/strategy for collaborating with the private sector is revised to include scaling up of experiences, gender equality and measures to ensure inclusive growth’

− Association of the schools for CVD established and functional (already by Midterm)

− Policy dialogue with the government undertaken leading to the scaling of experiences in other schools and collaboration with private sector for inclusive growth (before midterm)

− At least 70 % of the schools are certified according to the new framework to undertake CVD training and provided License to drivers (20% by Midterm)

MoE and MoTR provide incentives and adapt the curriculum in the national vocational training framework

A.3.3.1 Assist the private CVD schools to formassociation and continue dialogue for the review ofpoliciesincludingthecertificationschoolsA.3.3.2Assistthegovernmentandotherstakeholdersto agree on the minimum requirement for thecertificationofschoolstoissuedrivinglicensesA.3.3.3 Assist the schools interested to meet theminimumrequirementforthecertification

Outcome4HIV prevalence rate reduced among the truck drivers New HIV infections among the truck drivers is reduced

by 70% at the end of the project, disaggregated by sex (Midterm result to be determined during the inception period)

All stakeholders FTA, MOH, local governments, CSOs are willing to work together understanding role of CVD in HIV transmission

Output4.1STD and HIV rates decreased among the CVD The HIV new prevalence/infection rate among the

new trained CVD is reduced by at least 70%, disaggregated by sex(Midterm result to be determined during the inception period)

Annual HIV test (anonymous) result (Data) of the drivers that took part in the training

All project partners are willing at the transport hubs to improve the situation on the ground (rest places etc)

A.2.2.1 undertake study to quantify the latest prevalence rates of the HIV among the Truck drivers

A.2.2.2 identify the transport Hubs along the main roads and asses the conditions for the transmission of the STD and HIV

A.2.2.3 organize the awareness programs and in consultation with the local government bodies and CSOs

A.2.2.4 Improve the conditions in resting places in collaboration with the local governments and

39

Objective, Outcomes, Outputs, Activities Indicators Verification Assumptions /Risks

the CSOs and transport companies A.2.2.5 determine the effectiveness of the awareness

program and adapt the provision mechanism accordingly

40

Annex II Budget

BL Description Year 1 Year 2 Year 3 Year 4 Year 5 Total

Outcome 1: Productive employment opportunities created for youth in CVD using the rights based approach

Output 1.1: A training institute for CVD established and operational 11 International experts

15,000.00

15,000.00

30,000.00 15 Project travel - 16 Staff travel - 17 National experts & admin staff

25,000.00

45,000.00

40,000.00

110,000.00 21 Subcontracts - 30 In-service training, conferences,

workshops

20,000.00

20,000.00

15,000.00

55,000.00 35 International Meetings

20,000.00

20,000.00 43 Premises

150,000.00

50,000.00

200,000.00 45 Equipment - 51 Miscellaneous

30,000.00

5,000.00

25,000.00

25,000.00

85,000.00 Sub-Total Output 1.1

200,000.00

100,000.00

100,000.00

100,000.00

500,000.00

Output 1.2: New curriculum modules developed and approved by relevant authorities

11 International experts 10,000.00

10,000.00

20,000.00

15 Project travel - 16 Staff travel - 17 National experts & admin staff

8,000.00

8,000.00

16,000.00 21 Subcontracts

10,000.00

10,000.00

20,000.00 30 In-service training, conferences,

workshops - 35 International Meetings

4,000.00 4,000.00

41

43 Premises

40,000.00

40,000.00

45 Equipment - 51 Miscellaneous -

Sub-Total Output 1.2 32,000.00

68,000.00

100,000.00

Output 1.3: trainers in CVD trained to deliver up-to-date training

11 International experts 20,000.00

20,000.00

20,000.00

20,000.00

20,000.00

100,000.00

15 Project travel - 16 Staff travel

8,000.00

8,000.00

8,000.00

8,000.00

8,200.00

40,200.00 17 National experts & admin staff - 21 Subcontracts

20,000.00

20,000.00 30 In-service training, conferences,

workshops

2,000.00

2,000.00 4,000.00 35 International Meetings - 43 Premises

14,400.00

6,700.00

21,100.00 45 Equipment - 51 Miscellaneous

9,600.00

10,500.00

10,500.00

8,500.00

3,600.00

42,700.00 Sub-Total Output 1.3

74,000.00

38,500.00

38,500.00

38,500.00

38,500.00

228,000.00

Output 1.4: Young trainees ( 40 women and men) graduate in CVD

11 International experts

20,000.00

25,000.00

25,000.00

70,000.00

15 Project travel - 16 Staff travel - 17 National experts & admin staff

25,000.00

40,000.00

50,000.00

60,000.00

75,000.00

250,000.00 21 Subcontracts - 30 In-service training, conferences,

workshops - 35 International Meetings - 43 Premises -

42

45 Equipment - 51 Miscellaneous -

Sub-Total Output 4 25,000.00

40,000.00

70,000.00

85,000.00

100,000.00

320,000.00

Output 1.5: Students of the institute undertake internship program in private transport companies during their training period

11 International experts - 15 Project travel - 16 Staff travel - 17 National experts & admin staff - 21 Subcontracts

6,000.00

14,000.00

22,000.00

22,000.00

20,000.00

84,000.00 30 In-service training, conferences,

workshops - 35 International Meetings - 43 Premises - 45 Equipment - 51 Miscellaneous -

Sub-Total Output 5 6,000.00

14,000.00

22,000.00

22,000.00

20,000.00

84,000.00

Sub-Total Outcome 1 337,000.00

260,500.00

230,500.00

245,500.00

158,500.00

1,232,000.00

Outcome 2: traffic accident reduced

Output 2.1: students (women and men) get skills upgrading training leading to professional Commercial Driving License (CDL) including eco-driving

11 International experts 25,000.00

25,000.00

25,000.00

25,000.00

25,000.00

125,000.00

15 Project travel - 16 Staff travel - 17 National experts & admin staff

45,000.00

45,000.00

45,000.00

45,000.00

52,000.00

232,000.00 21 Subcontracts - 30 In-service training, conferences,

workshops - 35 International Meetings - 43 Premises - 45 Equipment -

43

51 Miscellaneous - Sub-Total Output 2.1

70,000.00

70,000.00

70,000.00

70,000.00

77,000.00

357,000.00 Output 2.2: Road traffic safety policy/program developed in collaboration with NTF

11 International experts 50,000.00

25,000.00

75,000.00

15 Project travel - 16 Staff travel - 17 National experts & admin staff

60,000.00

52,000.00

112,000.00 21 Subcontracts - 30 In-service training, conferences,

workshops - 35 International Meetings - 43 Premises - 45 Equipment - 51 Miscellaneous -

Sub-Total Output 2.2 110,000.00

77,000.00 -

187,000.00

Output 2.3: Impact on the environment reduced through training in eco driving and environment consciousness 11 International experts

10,000.00

15,000.00

20,000.00

20,000.00

20,000.00

85,000.00 15 Project travel - 16 Staff travel - 17 National experts & admin staff

26,000.00

26,000.00

30,000.00

30,000.00

30,000.00

142,000.00 21 Subcontracts

4,000.00

9,000.00

20,000.00

20,000.00

20,000.00

73,000.00 30 In-service training, conferences,

workshops - 35 International Meetings - 43 Premises - 45 Equipment - 51 Miscellaneous -

Sub-Total Output 2.3 40,000.00

50,000.00

70,000.00

70,000.00

70,000.00

300,000.00

Sub-Total Outcome 2

44

220,000.00 197,000.00 140,000.00 140,000.00 147,000.00 844,000.00

Outcome 3: The experience of the PPDP training institute is incorporated in the national framework in related truck drivers schools and the vocational training schools at large

Output 3.1: Policy change in CVD and certification of schools made and implemented

11 International experts

20,000.00

20,000.00

40,000.00

15 Project travel - 16 Staff travel - 17 National experts & admin staff - 21 Subcontracts

15,000.00

10,000.00

15,500.00

15,500.00

56,000.00 30 In-service training, conferences,

workshops - 35 International Meetings - 43 Premises - 45 Equipment - 51 Miscellaneous -

Sub-Total Output 3.1 15,000.00

10,000.00

35,500.00

35,500.00

96,000.00

Output 3.2: The new curriculum developed is disseminated to other CVD and HDMO 11 International experts

14,000.00

10,000.00

24,000.00 15 Project travel - 16 Staff travel - 17 National experts & admin staff - 21 Subcontracts

5,000.00 5,000.00 30 In-service training, conferences,

workshops - 35 International Meetings

2,000.00

6,000.00 8,000.00 43 Premises - 45 Equipment - 51 Miscellaneous

1,000.00

36,000.00

16,000.00

3,000.00

56,000.00 Sub-Total Output 3.2 -

45

8,000.00 36,000.00 36,000.00 13,000.00 93,000.00 Output 3.3: The government’s policy/strategy for collaborating with the private sector is revised to include scaling up of experiences, gender equality and measures to ensure inclusive growth’

11 International experts 12,000.00

20,000.00

20,000.00

5,000.00

10,000.00

67,000.00

15 Project travel - 16 Staff travel - 17 National experts & admin staff - 21 Subcontracts - 30 In-service training, conferences,

workshops

1,000.00

20,000.00

23,000.00

10,000.00

13,000.00

67,000.00 35 International Meetings - 43 Premises - 45 Equipment

19,000.00

32,000.00

51,000.00 51 Miscellaneous -

Sub-Total Output 3.3 32,000.00

72,000.00

43,000.00

15,000.00

23,000.00

185,000.00

Sub-Total Outcome 2 47,000.00

90,000.00

114,500.00

86,500.00

36,000.00

374,000.00

Outcome 4: HIV prevalence rate reduced among the truck drivers

Output 4.1: STD and HIV rates decreased among the CVD

11 International experts -

15 Project travel - 16 Staff travel - 17 National experts & admin staff - 21 Subcontracts - 30 In-service training, conferences,

workshops

20,000.00

20,000.00

20,000.00

20,000.00

70,000.00

150,000.00 35 International Meetings

15,000.00

15,000.00

15,000.00

15,000.00

15,000.00

75,000.00 43 Premises - 45 Equipment

15,000.00

15,000.00

15,000.00

15,000.00

15,000.00

75,000.00 51 Miscellaneous -

Sub-Total Output 4.1

46

50,000.00 50,000.00 50,000.00 50,000.00 100,000.00 300,000.00 Sub-Total Outcome 4

50,000.00

50,000.00

50,000.00

50,000.00

100,000.00

300,000.00 Ouctome 5: Project Management, M&E

Output 5.1: Project Management, Monitoring and Self-evaluation 11 International experts

14,000.00

12,500.00

26,500.00 15 Project travel - 16 Staff travel - 17 National experts & admin staff - 30 In-service training, conferences,

workshops

1,100.00

25,000.00

11,000.00

7,900.00

45,000.00 43 Premises

22,900.00

22,900.00 45 Equipment

26,000.00

26,000.00 51 Miscellaneous

29,600.00

29,600.00 Sub-Total Output 5.1

-

50,000.00

25,000.00

25,000.00

50,000.00

150,000.00 Output 5.2: Independent mid-term and terminal evaluation

11 International evaluator

75,000.00

75,000.00

15 Project staff travel - 17 National evaluator(s) - 51 Miscellaneous

25,000.00

25,000.00 Sub-Total Output 5.2 Independent Evaluation

- -

100,000.00

100,000.00 Subt-Total Outcome 3

-

50,000.00

25,000.00

25,000.00

150,000.00

250,000.00

TOTAL

654,000.00

647,500.00

560,000.00

547,000.00

591,500.00

3,000,000.00

Programme Support Cost (13%)

85,020.00

84,175.00

72,800.00

71,110.00

76,895.00

390,000.00

GRAND TOTAL

739,020.00

731,675.00

632,800.00

618,110.00

668,395.00

3,390,000.00

47

Annex III Risks and Risks Management

Risks Likelihood 1= minimal 5= high

Threat to the project 1= marginal 5= killing

Risk management

Political instability; Changes in the government partners during the project implementation period

4 1 Since the project owner is mainly an NGO and implementing partners are UNIDO and AB VOLVO; the project will continue to function while initiating new partnership with the Government counterpart. The role of the government partners are certification and approval of the curriculum which will not be affected by instability.

The local partner organization not performing to expectations due to, for example change of management, local politics etc.

1

4

Strict performance assessment throughout the program by UNIDO and other stakeholders. Built in option to change the management of the project in the case of poor performance

Achievements are not maintained after end of project due to, for example, limited local resources, shifting priorities in local partner organizations, etc.

3 Significant, especially in a resource poor nations such as Ethiopia

4

The project will establish a business plan before the end of the first year. in-built mechanisms for generating revenues in the form of specialized training for companies Systematic efforts to create linkages to employers to foster commitment

The demand for trained persons in the courses much less than expected in local labor markets

1 Low – the current trend is the reverse in Ethiopia

4 Results-based reporting regularly with surveys among employers and tracer studies; Adapt the training according the required skills

Corruption and other forms of misuse of resources by local organizations

1

2

SELAM a small organization with transparent accounting system. UNIDO well developed system for

48

Risks Likelihood 1= minimal 5= high

Threat to the project 1= marginal 5= killing

Risk management

transparency in accounting and procurement and proper follow-up and reporting will minimize this risk

Turn-over of trainers high due to their attractiveness on the labor market, leading to shortage and high cost for training of the trainers

3 2 Selam and UNIDO will continue to train the trainers in regular basis and support to trainers continuing education. Attractive and competitive package for the trainers specially good working environment and skills upgrading program. Recruit the right motivated staff with interest in teaching and willing to learn new advanced technology preparedness by the project to train additional trainers

49

Annex IV - ToR for the Project Steering committee

Public Private Partnership (PPP)

Training school for Commercial Vehicles Drivers

PROJECT STEERING COMMITTEE (PSC)

Terms of Reference

I. Overall responsibilities The Project Steering Committee (PSC) is the group responsible for making executive management decisions for the project when guidance is required by the project management, including decisions of the items listed in V below. Based on the annual work plan, the PSC reviews and approves detailed plans of activities and authorizes any major deviation from these agreed plans of activities. It is the authority that signs off the completion of each detailed plan of activities as well as authorizes the start of the next detailed plan of activities.

II. Specific roles and responsibilities of the Project Steering Committee:

The PSC is established in the context of Public Private Partnership (PPP) Training schools for commercial vehicles drivers. The PSC meetings will be guided by the approved project document. The PSC will have the following responsibilities:

A. DURING THE PROCESS OF RUNNING THE PROJECT:

1. Take decision on important matters, including but not limited to the items set out in clause V below;

2. To provide overall guidance on the Project’s general direction and priorities, in light of evolving circumstances;

3. To review the deployment of the project resources for approved annual work plan and to advise on priority uses;

4. To review the project’s annual progress reports, as submitted by the UNIDO Project Manager with a view to making recommendations on future activities and potential adjustments;

5. Review and approve the annual work plans; 6. Review the project’s mid-term evaluation report and related management

response; and 7. Assess and decide on major project changes.

B. FOR THE PROCESS OF CLOSING THIS PROJECT: 1. Review and approve the final project report; and, 2. Make recommendations for follow-up actions.

50

III. The Composition of Project Steering Committee:

Proposed list of participants includes representatives of:

1. SWEDISH Embassy in Addis Ababa (representing SIDA) 2. UNIDO 3. AB VOLVO 4. SELAM 5. Federal Transport Authority (FTA)

The local private companies shall have an observer status in the PSC and are allowed to have three representatives present in each PSC meeting (however, for the sake of clarity, the local private companies do not have any vote). Further, representatives of other development partners, companies or organizations can be invited as observers subject to the approval of the PSC in each specific case. The Project Manager will be the Secretary to the PSC, preparing the agenda beforehand and summary minutes afterwards.

PSC members join the committee for the full duration of the project. Members may allocate alternates which will be approved by the acting chairperson. When assigning PSC members, gender balance shall be considered.

IV. Modus Operandi The PSC will meet physically on a bi-annual basis, although ad hoc face-to-face or electronic (via e-mail) meetings in between may be convened upon any member of the PSC. There will be an annotated agenda, with necessary documentation circulated two weeks in advance, and minutes will be prepared and circulated two weeks after each meeting. The minimum required quorum for any meeting is six members. Each representative has one vote and decisions will be made by consensus. Notwithstanding the above, the decisions referred to in clause V below shall always be approved by UNIDO, Volvo and the Swedish Embassy in Addis Ababa irrespective of whether they participate in the PSC meeting or not. During every PSC Meeting, the UNIDO Project Manager will provide an update on progress and challenges of the project. UNIDO will be in charge of the project quality assurance and shall secure a prudent use of the monetary and other contributions to the project. The organization will provide objective and independent project oversight and monitoring as well as facilitate relations with other development partners and the Swedish International Development Cooperation Agency (Sida).

V. Decisions by the PSC

The below decisions shall always be taken by the PSC:

51

1. Approval of all local private companies partners participation in the Project

(including the terms for participation in the project for such local private company)

2. Approval of additional PSC members 3. Appointment of the chairperson of the PSC 4. Approval of:

Final Project plan and Budget (and amendments thereto) - KPIs for the project - Material project changes - Annual work plans (and amendments thereto) - The Business Plan for the post project phase (and amendments thereto) - The Final Project Report

In addition to the above, each PSC member shall have the right to request that local private companies’ or other partners participation in the project is promptly terminated if there is a valid ground for such termination including but not limited to: (i) non-compliance with the agreed terms for participation; (ii) non-compliance with the principles laid down in the Global Compact; (iii) non-compliance with the requirements in herein specified policies and

guidelines (including the VOLVO branding guidelines); and (iv) corruption or other non-ethical practices. The other PSC members may not deny such a request if there is a valid ground for termination in accordance with the above or otherwise and the parties shall jointly seek to replace the local private company or partner with another local private company or partner on a need basis.

VI. Information and Reports to be provided to the PSC

The following information shall be provided to the PSC on a need basis:

1. Major incidents and problems 2. Disputes with local private companies or other partners 3. Ethical aspects concerns related to the Project (including corruption, non-

compliance with Global Compact etc) 4. Political stability concerns

The following reports shall be provided to the PSC during the project phase:

5. Project progress reports (bi-annually) 6. Budget compliance reports (bi-annually) 7. Expected KPIs and output realization reports (yearly) 8. Climate impact reports (annually) 9. Field visit reports (annually) 10. External audit reports (mid-term and following completion)

52

11. Business Plan Progress reports (annually) 12. Final report (in connection with the finalization of the project)

VII. Post project management of school

For ascertaining the independent management of the school after the end of the project, a business plan will be prepared by the project before the end of the first year for the financial sustainability of the school. A board of directors from the representatives of the private sector and other stakeholders will be established to continue the operation of the school and to provide services in Selam. This board of directors will have the same mandate after the end of the project as the project steering committee during the project lifetime.