‫اجتماع مجلس المديرين‬
‫التنفيذيين‬
MEETING OF
THE BOARD
ISLAMIC DEVELOPMENT BANK
OF
EXECUTIVE
DIRECTORS
BANQUE ISLAMIQUE DE DEVELOPPEMENT
‫معا ً نبني مستقبالً أفضل‬
REUNION DU CONSEIL
DES DIRECTEURS EXECUTIFS
TOGETHER WE BUILD A BETTER FUTURE
ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
(
SUBJECT
:
Country:
Sector:
Department:
Date (Hijri):
Date (Georgian):
)
REPORT AND RECOMMENDATIONS OF THE PRESIDENT, IDB ON
THE STRENGTHENING THE EMPLOYABILITY OF YOUTH DURING
TUNISIA’S TRANSITIONG TO A GREEN ECONOMY.
Republic of Tunisia
Education
Human Development Department (HDE)
Rajab 1434H
May 2013
The RRP is a succinct version of the Project Appraisal Document (PAD). The details about the
Country, Sector, IDB Operations, and Project’s Technical and Financial Justifications are given
in the PAD.
TABLE OF CONTENTS
i
NO.
TABLE OF CONTENTS
Page No.
IDB PROJECT INFORMATION SHEET
iii
LIST OF ACRONYMS/ABBREVIATIONS
iv
EXECUTIVE SUMMARY
v
BACKGROUND
1
III
THE SECTOR
2
IV
RATIONALE, OBJECTIVES AND KEY RESULTS
4
V
THE PROJECT
3
VI
PROJECT COST ESTIMATE & FINANCING PLAN
8
VII
IMPLEMENTATION ARRANGEMENTS
8
I
VIII RISKS AND SUSTAINABILITY
10
IX
PROJECT JUSTIFICATION
11
X
RECOMMENDATIONS
12
List of Annexes
1.
2.
3.
4.
5.
Results Based Logical Framework
Socio-Economic and Financial Indicators of Tunisia
IDB Financing for Tunisia
Map of Tunisia and Project Location
Project Risks and Mitigation Measures
ii
LIST OF ACRONYMS AND ABBREVIATIONS
BED
BTS
CHDPRS
EDU
E4e
GDP
GER
GJP
GOED
GOT
HDE
HDI
ICIEC
ICD
ID
IDB
IFC
IRTI
ISI
ITFC
MDGs
MENA
MVTE
NER
NGOs
OCR
OECD
OPSD
PMU
Board of Executive Directors
TND
UNOPS
Tunisian Dinar
United Nations Office for Project Services:
WB
World Bank
Tunisian Bank for Solidarity
Comprehensive Human Development & Poverty Reduction Strategy
Education Division
Education For Employment
Gross Domestic Product
Gross Enrolment Rate
Green Jobs Programme
Group Operations Evaluation Department
Government of Tunisia
Human Development Department
Human Development Index
Islamic Corporation for the Insurance of Investment and Export Credit
Islamic Corporation for the Development of the Private Sector
Islamic Dinar
Islamic Development Bank
International Finance Corporation
Islamic Research & Training Institute
Implementation Support Agency
Islamic Trade Finance Corporation
Millennium Development Goals
Middle East & North Africa
Ministry of Vocational Training and Employment
Net Enrolment Rate
Non-Governmental Organizations
Ordinary Capital Resources
Organization for Economic Development
Operations Policy and Service Department
Project Management Unit
CURRENCY EQUIVALENTS
(As of April 2013)
Currency Unit:
Tunisian Dinar = TND
Islamic Dinar = ID
Project Team Members:
Peer Reviewers
Project Team Leader:
Sector Division Manager:
Sector Director:
Currency Equivalent
1 US$ = TND 1.59
1 US$ = ID 1.52
1.
2.
Br Abdi M Abdullahi, Education Specialist, EDU, HDE, IDB
Br Said Kechida, Senior Advisor, Middle East & North Africa Partnership
OECD
3. Br Abdelkafi Rami, Country Manager, CTY, IDB
(1): Br Mohamed Ahmed Zubair, Lead Economist, CTY IDB
(2): Br Ahmed Musbah Elsadig, Country Manager, CTY, IDD
Br Abdi M Abdullahi, Education Specialist
Dr Mohamed Abderrahmane Beddi
Dr Daouda Malle.
iii
Date: May 2013
IDB PROJECT INFORMATION SHEET
TUNISIA
STRENGTHENING THE EMPLOYABILITY OF YOUTH DURING TUNISIA’S
TRANSITION TO A GREEN ECONOMY.
Beneficiary (Country/Organization):
The Government of Tunisia
Executing/Implementing Agency:
Ministry of Vocational and Training For Employment
Project Title:
Strengthening the Employability of Youth During Tunisia’s Transition to a Green
Economy.
Sector/Sub-Sector:
Vocational Education
Total Project Cost:
US$ 6.47 Million
TFs Contribution:
US$ 4.42 million
Co-financiers Contribution
1.75 million
Government Contribution:
US$ 0.30 million
Proposed IDB Financing:
Amount (US$,
Million)
Repayment
Period (Years)
Gestation/Grace
Period (Years)
Service Fee/ Mark-up
-
-
-
-
-
-
-
-
-
-
Amount (US$,
Million)
Maturity
(Years)
Grace/Gestation
Period (Years)
Service Fee/ Mark-up
Solidarity Bank of
Tunisia
1.75
-
-
-
Government
0.300
-
-
-
Modes(s)
Co-financers & Terms of Co-financing:
Co-financier(s)
Implementation Period (Years) from the First Date of Disbursement
4 years
Key Milestones:
Approval
15th May 2013
Signature
30th June 2013
31st August 2013
Effectiveness
Planned First Date of Disbursement
1st September 2013
Planned Last Date of Disbursement
31st December 2013
Planned Date of Completion
31st December 2016
iv
EXECUTIVE SUMMARY
Strengthening the Employability of Youth During Tunisia’s Transition to a Green Economy.
1) Rationale for Country and Sector Support:
The project is in line with the objectives of the newly adopted Social Pact and the National
Vocational Training Strategy of the Government of Tunisia, which aims at supporting the
employment policies and increasing the work return. The proposed project responds to the
recommendation of the National Dialogue on Employment on exploring emerging sectors
such as green jobs, which represent an untapped source of jobs for youth, by anticipating
needs for qualifications and encouraging entrepreneurship. The project is aligned with the
IDB 1440H vision, Comprehensive Human Development and Poverty Reduction Strategy
(CHDPRS) and the Bank Medium Term Business Strategy of the Bank ( 2013 – 2015).
The project will be financed by the Middle East and North Africa Transition Fund. It is in
line with the overall objective of the Transition Fund, in particular, it aims at: (ii) identifying
key measures to deliver high-quality vocational education and training (VET) that is well
connected and responsive to the needs of the labour market. Such programmes can also
provide alternative pathways to boost completion of upper-secondary education; (ii)
addressing the main factors hindering basic skills, notably among the most socially
disadvantaged Tunisian youth, many of whom live in backward regions; and (iii) supporting
the transition towards new sectors and new jobs, particularly Green Jobs.
The proposed project is complementary to broader IDB engagement and financing package
in Tunisia. It is also in line with the strategies defined in the e4e Action Plan for Tunisia
endorsed by the stakeholders in May 2012 under the joint IDB and International Finance
Corporation (IFC) Education for Employment (e4e) initiative”. Furthermore, the proposed
project will complement the recently IDB approved Youth Employment Support Program.
2) Project Objectives and Key Results:
The main objective of this project is to support the GOT in its endeavour to design and
implement a comprehensive approach for improving the employability of Tunisian young
generations. The programme specifically will support the creation of an enabling
environment, conducive to the formation of the right skills mix needed to integrate Tunisian
youth into the formal labour market, while at the same time accessing more stable and better
quality jobs. At completion, the key expected results of the project include: (i) pilot
programme is implemented in one region; (ii) 50 cleanTech companies created; (iii) capacity
of the ministry of vocational and training for employment enhanced.
3) Project Description:
The project components include (a) policy options for investing in youth through a
comprehensive review of youth employment issues and challenges that will be carried out by
the OECD; (b) developing and implementing Green Jobs Platform through youth
professional development in the field of Green Jobs Market including integrated training, eco
experience; coaching; mentoring; and green business creation and financial support; and (c)
v
Capacity Development of local Partner through training of employability, employment and
integration advisors.
4) Project Cost Estimate and Financing Plan:
in US$ Million
No
Description
I
Invest in Youth: Tunisia Report
Developing and implementing the
Green Jobs Platform
Youth Professional Development in
II
the field Green Jobs Market
Green Business Creation
Financial Support
III Capacity Development
Budget Breakdown of Indirect Costs
Requested (USD).
IV
For grant preparation, administration
and implementation support
Grand Total
Transition Fund
Amount
%
0.52 100.00
-
BTS*
Amount
%
-
GOT
Amount
%
-
Total
0.52
-
-
-
-
-
-
1.80
100.00
-
-
-
-
1.80
0.90
1.10
90.00
90.90
1.75
-
20.00
9.10
1.10
1.75
1.20
100.00
-
0.200
0.100
-
-
-
-
-
-
-
0.100
-
-
-
-
-
0.10
4.42
68.31
1.75
27.05
0.300
4.64
6.47
* Tunisian Bank of Solidarity
5) Implementation Arrangements:
The Ministry of Vocational Training and Employment (MVTE) of the GOT will be
responsible for the overall coordination of the project. IDB will also be Implementation
Support Agency (ISA) to oversee the implementation, procurement and judiciary aspects of
the project The OECD and GOT are responsible for the implementation for the investing in
youth component. The Green jobs platform component will be managed by a steering
committee consisting of representatives of the MVTE, BTS and the Cleantech enterprises.
The project is expected to take 4 years to complete starting from the date of its approval.
6) Project Justification:
The unemployment rate in Tunisia remained above 14% between 1999 and 2009, peaking at
44% among those aged between 15 and 29 years and young graduates. This situation raises
questions about the employability of job seekers and the quality and orientation of education.
Employment in the informal sector is still high, and the informal economy represents 30% of
Tunisia’s GDP. One key policy challenge to set Tunisia on a path of sustainable growth will
be strengthening the human capital basis and the skills of its population, starting from the
young generations. Against this background, the focus of this joint proposal to the MENA TF
is on two complementary aspects of Tunisia’s broader efforts to shit to a greener economy
and to enhance the employability of the youth.
7) Recommendations:
To approve the appointment of IDB as the Implementation Support Agency (ISA) for the
preparation and implementation of the Strengthening the Employability of Youth During
Tunisia’s Transition to a Green Economy.
vi
REPORT AND RECOMMENDATIONS OF THE PRESIDENT OF THE IDB ON THE
PROPOSED STRENGTHENING THE EMPLOYABILITY OF YOUTH DURING
TUNISIA’S TRANSITIONG TO A GREEN ECONOMY PROJECT.
I.
BACKGROUND
1.
The MENA TF is under Deauville Partnership with Arab Countries in Transition, which
is an international effort launched by the G-8 at the Leaders Meeting in Deauville, France
in 2011. The MENA TF is unique grant financing facility designed to complement
existing bilateral and multilateral programs to support the Governments in the region in
carrying out necessary economic and social reforms. IDB is part of the steering committee
of the Fund for project’s processing and approval.
2.
The project will be co-financed by the MENA TF and the Tunisian Bank of Solidarity
(BTS). The portion financed by the BTS will be executed by the Government of Tunisia
(GOT) and will consist in
extending microfinance schemes to support youth
entrepreneurs to setup CleanTech start-ups. The portion financed by the MENA TF will
be jointly executed by the GOT and the OECD. The portion executed by the OECD will
serve to provide GOT with a set of policy options to: (i) address skills mismatches; (ii)
encourage transition from precarious and low quality jobs to stable ones; (iii) reinforce
youth employability in formal activities; (iv) support the transition towards a “green
economy” model, leading to the emergence of new employment opportunities, respectful
of the need to safeguard the environment.
3.
The portion executed by the GOT under the MENA TF will consist in the launch of an
innovative pilot project aiming at increasing employability of young graduate job seekers.
The GOT will lead the implementation of this project portion, in particular through local
experts, increased staff and continuous feedback.
4.
The IsDB will be the Implementation Support Agency (ISA) responsible for the oversight
and management of the funds used for the country-executed portion.
5.
The RRP was prepared based on a project proposal submitted to the Bank by the report
prepared by the IDB and OECD and the findings of an country dialogue mission to
Tunisia 10th – 14th April 2013.
Lessons Learnt
6.
Lessons learned from previous IDB involvement in the education sector in Tunisia
include: (i) undertaking of studies prior to embarking on new projects, (ii) full
involvement of the executing agency in the design of the project is critical to ensure
appropriation and ownership (iii) close coordination and harmonization of activities with
IDB enhances efficiency of utilization of resources, (iv) existence of a stable and effective
project management team is crucial to successful project implementation; (v) monitoring
and evaluation are critical to managing risks and enhancing achievement of results; (vi)
extensive supervision of the project activities by the Bank is crucial to successful project
implementation and (v) reinforcement of the preventive and curative maintenance
mechanism as guarantee for durability of the infrastructure.
1
II.
THE SECTOR
7.
The problem of poor labor market outcomes for the young is not new to Tunisia and has
generally been recognized as one of the key factors leading up to the Arab Spring, which
originated in the country. The unemployment rate in Tunisia remained above 14%
between 1999 and 2009, peaking at 44% among those aged between 15 and 29 years and
young graduates. This situation raises questions about the employability of job seekers
and the quality and orientation of education. Employment in the informal sector is still
high, and the informal economy represents 30% of Tunisia’s GDP. 46% of young people
prefer to work for the public administration, which already employs many people.
8.
To this day, youth employment remains one of the key policy challenges in the country’s
transition. It is important to note that the country is experiencing the highest rates of
unemployment ever and more so for the educated youth. This situation is further
complicated by the return of an estimated 100,000 Tunisian workers from neighboring
Libya. In 2010, there were 500,000 unemployed young people: 157,000 post graduates
(31%), 139,000 graduates (27%) and 204,000 high school leavers (42%). The breakdown
for university graduates and post graduates is as follows: 20% science; 16% economic,
management and law; 15% humanities, and 7% medicine, pharmacy and engineering.
9.
At the macro level, the Tunisian economy is not generating enough jobs to absorb the high
number of university graduates (an average of 70 000 expected to graduate every year
until 2016) who enter the labor market annually. With nearly 400 000 students, higher
education in Tunisia faces great challenges in terms of the system’s quality, its relevance
and the degree to which it is adapted to the needs of the economy and society. At present,
Tunisia lacks modern, well-designed vocational education/apprenticeship/internship
programmes, which could facilitate school-to-work transitions, provide more attractive
alternatives to university education and provide a steady supply of middle-level and
technical skills. Attention should therefore be paid to the policies that Tunisia could
implement to create productive and sustainable jobs through a comprehensive approach
which tackles supply issues (education, vocational training, etc.), demand issues (macro
policy, structure of the economy, sector mix, etc.), and institutional issues (policy
development and coordination, implementation, monitoring and evaluation, and social
dialogue) to be developed over the short, medium, and long term.
10.
Strong and sustained economic growth is obviously a first requirement to foster the
transition to a “new” Tunisia. It serves to create jobs, while at the same time generating
the self-worth and motivations that individuals need to trust both institutions and
government. One key policy challenge to set Tunisia on a path of sustainable growth will
be strengthening the human capital basis and the skills of its population, starting from the
young generations. While this is a challenge for all countries, it is even more compelling
for Tunisia, a country which, in the comparison with other MENA neighbours, appears
relatively weakly endowed with natural resources. However, making the best utilisation of
Tunisian human resources and enhancing the employability of youth should not be seen as
a priority in itself. It is an essential vehicle if Tunisia wants to jumpstart into new, more
productive and diversified economic opportunities, such as the activities linked to the
expansion of the green economy.
2
11.
Against this background, the focus of this joint proposal to the MENA Transition Fund is
on two complementary aspects of Tunisia’s broader efforts to shit to a greener economy.
One is on the general labour market and education policies that need to be in place in
order to allow Tunisia become increasingly adaptable to the needs of flourishing new
productive sectors. This will include a focussed attention to the institutions that will
encourage the absorption of Tunisian youth labour force by the greener sectors. The other
is a pilot project on green jobs – The extensive proposal of a Green Jobs Platform.
III.
RATIONALE, OBJECTIVES AND KEY RESULTS
12.
Rationale for Country and Sector Support: The proposed project is in line with the
objectives of the newly adopted Social Pact and the National Vocational Training Strategy
of the Government of Tunisia (GOT), which aims at supporting the employment policies
and increasing the work return. The project responds to the recommendation of the
National Dialogue on Employment on exploring emerging sectors such as green jobs,
which represent an untapped source of jobs for youth, by anticipating needs for
qualifications and encouraging entrepreneurship.
13.
The Project Objectives: The main objective of this project is to support the GOT in its
endeavour to design and implement a comprehensive approach for improving the
employability of Tunisian young generations. The programme specifically will support the
creation of an enabling environment, conducive to the formation of the right skills mix
needed to integrate Tunisian youth into the formal labour market, while at the same time
accessing more stable and better quality jobs.
14.
Key Results: By 2019, At completion, the key expected results of the project include: (i)
current characteristics of Tunisian youth labour market assessed and related main policy
challenges identified; (ii) policy options for reinforcing youth labour markets and the
employability of youth identified, including key elements for a youth action plan; (iii)
policy options for transition to green jobs proposed; (iv) 50 cleanTech companies created;
(v) capacity of the ministry of vocational and training for employment enhanced; (vi) 300
direct and indirect jobs are created through incubators; and (vii) 50 MVTE staff and
qualified unemployed trained. The results based logical framework of the project is
attached as Annex-1.
IV.
15.
THE PROJECT
Project Location. The project locations will be decided during the implementation based
on the following criteria; (i) the availability private sector, economy and green jobs to
absorb the graduates (ii) the unemployment rate; (iii) regional disparities; (iv) priorities of
the GOT. The Map of Tunisia and project locations are attached as Annex-4.
Project Components
Component 1: Policy Options for Investing in Youth.
16.
This OECD report will aim at providing GOT with a set of policy options to: (i) address
skills mismatches; (ii) encourage transition from precarious and low quality jobs to stable
3
ones; (iii) reinforce youth employability in formal activities; (iv) support the transition
towards a “green economy” model, leading to the emergence of new employment
opportunities, respectful of the need to safeguard the environment. Pending consultations
with the MVTE and other relevant Tunisian authorities and stakeholders about the precise
scope and coverage, the OECD report would tackle the following policy areas:
17.
Overview of youth labour market challenges including: (i) an assessment of the situation
of youth in the labour market, with a particular attention on, unskilled youth and poorer
youth, including from disadvantaged regions as well as on young women; (ii) a look at the
adequacy of the education and training system in equipping young people with relevant
skills (skills shortages and mismatches, including the regional dimension of skills
mismatches; (iii) a look at the factors hindering school-to-work transitions, including a
strong dependence on public sector jobs; and (iv) a discussion of the size and
characteristics of informal employment in Tunisia.
18.
The role of education and training policies with a particular focus on Vocational
Education and Training (VET). Policy options for: (i) developing and implementing an
expanded set of high quality and relevant VET programmes; (ii) strengthening the role of
apprenticeship programmes for low-skilled youth, drawing from the practical country
experiences with implementing successful school-to-work pathways; and (iii) skills
upgrading, with particular attention to raising the productivity of informal workers as a
means to enhance their opportunities for moving to formal jobs.
19.
The role of labour market institutions that affect the demand for labour. Policy options
for: (i) reducing the segmentation of the labour market between regular workers -typically prime-age workers with permanent contracts, often employed by the public
sector -- and non-regular workers -- typically vulnerable youth working in more
precarious and low quality jobs; (ii) using the minimum wage as a vehicle to enhance
youth employability (for example, lessons from country experiences with sub-minimum
wages); options for reviewing the burden of social security contributions on non-wage
labour costs; and (iii) addressing discriminatory practices resulting in “unreasonable”
differences in wages and/or benefits between workers performing similar jobs.
20.
The role of active labour market policies and the social welfare system in reinforcing
employability in the formal sector. Policy options for: (i) improving the social welfare
system through cost-effective instruments that encourage the transition of youth workers
from the informal to the formal sector and their access to more stable jobs; (ii)
strengthening the role of the Public Employment Services and improving their
coordination with job creation schemes and training; and (iii) creating tax and benefits
policies that reinforce youth work incentives, including through the introduction of a
system of earned income tax credits, the design of wage subsidies schemes and cash
transfer schemes; supporting young job seekers without creating benefits dependency.
21.
A focus on green jobs: (i) a look at the expected characteristics of Tunisia’s economic
transition. As Tunisia shifts to a greener economic model, certain business activities will
start declining; other will supply the same outputs using greener production processes; at
the same time, other and completely new activities will be created; (ii) the supportive role
in facilitating this transition of policy reforms in the labour market, education and training
4
areas; and (iii) examples of what other countries are doing to face similar challenges and
adjustment needs.
22.
The OECD report will be supported by an extensive use of international indicators, as a
mean to put the case of Tunisia in international context.
Component 2: Developing and implementing the Green Jobs Platform
23.
This component builds on the results of a detailed analysis of the country’s economic and
environmental policy as well as on extensive interviews with various stakeholders,
including young unemployed graduates associations, NGOs, public and private sector
organisations. This component will be implemented in a pilot governorate selected by the
MTVE. It aims at improving the employability of young graduates in different sectors of
the green economy and is built around three main subcomponents. The overall project
foresees interventions that require an established management team to direct the project
and provide the required monitoring and backstopping to ensure outputs with the quality
expected to achieve the results under each subcomponent. These descriptions of
subcomponents focus on the purpose and results forecasted:
24.
Subcomponent 2.1: Youth Professional Development in the field of Green Jobs Market:
Enrolled young unemployed graduates will get up to four weeks of training combining
theoretical knowledge and practical hand on experience/operational proficiency in the
field of “green jobs”. They will be provided with the necessary support, monitoring,
supervision and backstopping by local and international experts in professional integration
and individual trainings before, during and after their conversion to the green economy
sector. These initiatives, developed following the preparation of personal projects, match
the professional ambitions of the beneficiaries to find suitable, lucrative and sustainable
jobs, which are fully in line with the country’s green growth agenda. The subcomponent
comprises:
-
-
Integrated Training: planned on the basis of individual training programmes, as
well as in the context of interactive group workshops with eco-experience experts
and mentors, this training aims at developing the know-how, interpersonal skills,
job search techniques and key knowledge concerning the green economy. Specific
training courses will include: (i) technical skills such as business plan
development, marketing, financial planning, management and project
development, preparation of budgets; (ii) Interpersonal skills such as addressing
audiences, negotiation skills, stress management, teamwork, project approach,
group facilitation, active listening techniques; (iii) job search techniques such as
CV preparation, job interviews, social networking, negotiation of wages; (iv) and
specific courses on green economy and sustainable development to provide
beneficiaries with an overview on the political, socioeconomic development in a
transition to a green economy and the opportunities arising for employment and
entrepreneurship in Tunisia.
The Eco Experience: aims at developing practical skills in a green business with a
future growth potential. It provides an appropriate way to deal with the lack of
practical experience for new graduates. The Eco-experience also seeks to
strengthen employment-generating projects in the area of green economy. The
5
-
25.
Eco-experience will take several forms: (i) Induction training to green jobs, which
are conventional trainings tailored to the needs of the beneficiary with the aim of
gaining a practical green job experience; (ii) Subsidized Eco-jobs, which represent
an adaptation of the PC50 guideline to the eco-experience, including through
revising the legal framework and securing additional public funding; (iii) Ecosolidarity jobs, which is an adaptation of the solidarity jobs guidance (Contrat
Emploi de solidarité) to the regional and local promotion of green jobs; (iv)
International internships and training courses in Europe in the area of the green
economy and sustainable development for 6 to 12 months. The platform proposes
to negotiate an exchange programme with the United States and employers in
Europe and Africa.
Coaching and mentoring: Each beneficiary from green jobs platform is advised,
supported, and oriented by several actors: employability advisors, supervisors,
mentors, trainers, integration advisors and employment advisors.
Participation in conferences and debates: At least two conferences will be held to
share testimonies related to green jobs and green economy. Lecturers are
practitioners as well as potential employers. These conferences will enable
beneficiaries to expand their professional network and to get critical information
for their projects as well as for paid jobs seeking.
Subcomponent 2.2. Green Business Creation: This component aims at providing on job
training to the enrolled group of unemployed youth graduates to create their “Cleantech
companies”. Local and international experts will coach the selected entrepreneurs
throughout the process of business creation and start up. A series of instruments will be
made available to facilitate the launch of the selected “Cleantech projects” such as
financial and technical assistance, guarantee funds and incubation to facilitate proper
development, and other active measures related to the establishment of green enterprises.
This subcomponent comprises:
-
-
-
Technical Assistance: International experts will be recruited to help the MVTE to
…Series of instruments will be at the disposal to resolve the main obstacles
expected:
Enterprise creation assistance: An advisor is assigned to every entrepreneur.
S/He advises, supports, guides the beneficiaries throughout the whole process of
enterprises creation. S/He works closely with the experts from different key areas
in the implementation of enterprises. The advisor possesses a global knowledge of
the Green Economy and business opportunity, legal framework as well as the
support measures for the creation of enterprises;
Technical advice: In line with the specificities of each company, the advisor in
enterprise creation may call for local and international experts in different
technical areas, such as communication, finance, commercial law and others,
established by the Green Job Platform.
Business Intelligence: This tool will help identify and disseminate information on
business opportunities to the beneficiaries .The Information will be disseminated
to beneficiaries through various means: web, information sessions, mails and will
be available for the advisors in creation of green enterprises.
6
-
-
26.
Marketing advice: A marketing advisor will be assigned to a group of
entrepreneurs. S/He plays a key role in the creation of instruments to facilitate the
entrepreneurs’ sales efforts. The marketing advisor handles the creation of the
identity required in the market: graphic, logo, the sale concept, brochures, and web
page, the use of social networks and others. The marketing advisor supports the
entrepreneurs in their sales effort and s/he is responsible for the promotion of the
image of the platform at the regional level.
Incubation: Series of instruments will be made available to beneficiaries, such as:
(i) shared collective enterprise: a legal entity designated in carrying “Green jobs
start-up“ during the start-up phase. This instrument enables entrepreneurs to delay
the creation of the legal personality until the viability of the company is provided.
A partnership to import the expertise of this instrument will be considered; (ii)
shared premises: a workplace will be put at the disposal of GJP candidates under
request. All beneficiaries receive common services (secretary, telephone, web site,
communication materials and others). Common Services will support the green
enterprises to emphasize their presence and visibility in order to improve their
credibility in the market.
Subcomponent 2.3: Financial support: The Project will provide financial support to
youth entrepreneurs in form of micro finance schemes to set-up their own CleanTech
Companies. It is expected that 50 start-up will be created each will be eligible to a
financing amount of about US$ 35,000. This subcomponent will be financed by BTS..
The project will put in place a post financing monitoring and follow-up mechanism to
ensure the success of the start-ups. Business Angels will also be mobilized to engage in
early-stage risk financing and business coaching.
Component 3: Capacity Development of local Partners:
27.
This component aims at building the capacities of the MTVE and BTS in the pilot
governorate as well as the central level through trainings, personalized on-the–job
backstopping and monitoring. Under this component, the project will use international
experienced and qualified expertise to ensure the process of transfer of knowledge and
knowhow while on-the-job and prepare follow-ups and backstopping for employability,
employment and integration advisors. The component comprises:
-
Training of Employability Advisors: to acquire a global knowledge of the various
tools to foster the integration of the beneficiaries. They have to develop good
knowledge of green jobs market, social security laws as well as of measures to
promote employability. Employability Advisors are responsible for reaching
concrete results for the improvement of beneficiaries’ employability. They enable
the job seeker to acquire the necessary qualifications to be in line with the labour
market needs and with the individual professional projects. They are the main
interlocutor of the beneficiary along the process of the individual professional
project implementation and have the responsibility of enabling the group of
beneficiaries acquire capacities and knowledge. They are in charge of improving
the beneficiaries’ employability within green jobs platform, including through
assigning active measures and providing practical experience (Eco-trainings,
Solidarity Eco-jobs, paid-green jobs).
7
-
-
-
Training of Employment Advisors: who are responsible for facilitating
beneficiaries’ access to a paid job. They establish and manage a network of
potential employers within the pilot governorate. They initiate and establish a
monitoring mechanism for the green jobs market with its perspectives and
opportunities. Their role is to bridge the gap between beneficiaries and potential
employers. Employment advisors will work closely with employability advisors
Training of Integration Advisors: which requires the assistance of experts from
other countries who successfully developed a mechanism of personalized
backstopping for professional integration. A decentralized cooperation mechanism
with the Employment and Investment Agencies in Canada, France and Switzerland
will be implemented. Agreements will be established between these countries and
the specialized schools to train Tunisian Advisors. Moreover, foreign advisors will
be recruited in Tunisia to train the future local advisors.
Capacity Building for BTS: this would include Training of BTS staff in project
design, evaluation and monitoring. The project will also assist BTS in upgrading
and modernising its system of information.
V.
28.
PROJECT COST ESTIMATE AND FINANCING PLAN
The total cost of the project is estimated at US$ 6.37 million. It is proposed that MENA
TF finance the project in amount of US$ 4.42 million – corresponding to 67.82% of the
project cost. The GOT will also contribute US$0.30 million to the project cost. Tunisian
Bank of Solidarity will finance US$ 1.75 million representing 27.47% of the project cost.
Table 1: Project Cost Estimate and Financing Plan
N
o
I
Description
Invest in Youth: Tunisia Report
Developing and implementing the
Green Jobs Platform
Youth Professional Development in
II
the field Green Jobs Market
Green Business Creation
Financial Support
III Capacity Development
Budget Breakdown of Indirect
Costs Requested (USD).
IV For grant preparation,
administration and implementation
support
Grand Total
In US$ Million
Transition Fund
Amount
%
0.52 100.00
-
BTS*
Amount
%
-
GOT
Amount
%
-
Total
0.52
-
-
-
-
-
-
1.80
100.00
-
-
-
-
1.80
0.90
1.00
90.00
90.90
1.75
-
20.00
9.10
1.10
1.75
1.10
-
100.00
-
0.200
0.100
-
-
-
-
-
-
0.100
-
-
-
-
-
0.10
4.32
67.82
4.71
6.37
1.75
27.47
0.300
* Tunisian Bank of Solidarity
VI.
IMPLEMENTATION ARRANGEMENTS
Readiness for Implementation
29.
The project has the support of the GOT and all the necessary arrangement for
implementation have already been made. The project implementation team from IDB and
OECD is constituted.
8
Implementation Arrangements
30.
The Government of Tunisia: The Tunisian Government will be in charge of the overall
coordination of the project. The Ministry of Vocational Training and Employment through
its institutions, including the Agence Nationale pour l’Emploi et le Travail Indépendant
(ANETI) as well as the regional employment offices will form a national project
implementation team. The Green jobs platform project will be managed by a steering
committee consisting of representatives of the Ministry of Vocational Training and
Employment, Tunisian Bank of Solidarity, the union of associations of unemployed
graduates, the Cleantech enterprises involved at the National level .e.g. chambers of
commerce and the Junior Chamber International. It is expected that other members join
core members of the national steering committee, if necessary, such as the Ministry of
Tourism, Ministry of Higher Education, Ministry of Industry, Ministry of Agriculture and
other public institutions involved in the Green Economy or in related areas. Other
representatives the civil society and private sector will also be invited to join the
Committee on an ad-hoc basis. The national steering committee for the Green Job
Platform may decide to set up direct support units using these different members.
31.
The Islamic Development Bank: The IDB has a long and rich experience in
implementing development projects in Tunisia. The Bank portfolio in Tunisia is over US$
1.2 billion in various sectors including education, skill development and micro-finance.
The Bank has accumulated knowledge and expertise in project implementation and
supervision which will help in implementing the present project. Mutual trust has been
established between the country and the Bank and a strong relationship has been built over
40 years of partnership. After the revolution, the IDB has supported youth employment
through Education for Employment Action Plan, Vocational Education and Training
Project and Youth Employment Support program.
32.
The Organization for Economic Cooperation and Development: The OECD brings its
long-standing experience in labor market reforms, in capacity building and in knowledge
dissemination. This experience can help the buy-in of reforms and their communication,
through showing what has worked well and what has worked less well, or not worked at
all, in other countries. The OECD developed a Policy toolbox that provides practical tools
and examples to assist policymakers with identifying their current strengths and
weaknesses and establish a strategy for youth based around five interlocking policy levers
drawn from OECD experience, particularly from two recent major OECD studies,
Learning for Jobs and Jobs for Youth.
33.
The Tunisian Bank for Solidarity (BTS) is a universal bank specialised in financing micro
and medium enterprises (SMEs) and providing micro credit. The BTS is a strong and
financially viable institution with an annual lending volume of about TND 100 million
(US$ 70 million) extended to more than 10,000 SMEs. The BTS has a nationwide
network constituted of 25 branches. It can finance micro-projects with investment
volumes up to TND 150.000 (about US$ 100.000) in all sectors and at all levels and
particularly for university graduates. The BTS has built strategic partnerships with
national and regional institutions involved in investment and self-employment promotion,
including the Ministry of Vocational Training and Employment, micro credit NGOs and
9
Business Centres in order to support micro-entrepreneurs to successfully launch their own
projects and guarantee the highest possible loan recovery rate.
34.
United Nations Office for Project Services: UNOPS (United Nations Office for Project
Services) will also partner with the Ministry of Vocational Training and Employment
(MVTE) in Tunisia for the implementation of the Green Jobs Platform. UNOPS is a UN
organisation with a large and recognized experience in project management and
implementation in different sectors related to economic recovery and in support to
countries in transition. UNOPS has an important network of experts and organizations
operating in the field of employment and green jobs, in addition UNOPS promotes the use
of competent national expertise. The MVTE and UNOPS have signed an MOU related to
the support for the Green Jobs Platform.
35.
Private Sector: The project will build on the ongoing consultation process in the
framework of the National Employment Strategy as well as the E4E action plan to engage
with the Private Sector. The project will facilitate dialogue between private and public
sector from the outset as this is an essential ingredient of a successful reform of the
vocational training system. Workshops will be organized with private sector players and
between public and private sector players for that purpose.
36.
Parliament and Civil society: Members of the National Constituent Assembly and
representatives of civil society (labor union, think tanks, unemployed associations, etc.)
will be invited to contribute to the project as stakeholders in the ongoing dialogue on the
implementation of the new social pact.
37.
The International network of Green Jobs Platform: This Network gathers a large
number of actors from the public sector, civil society and “Cleantech” enterprises in
Europe. This international development network offers the advantage of bringing to
operational activities a large number of actors, others than partners who have initiated
these projects. The Tunisian Green Jobs Platform will take benefit from the ongoing
dialogue with representatives of this network of partners as well as from the exchange of
experience with other Green Jobs Platforms worldwide.
Implementation Schedule
38.
The implementation period is expected to take five (4) years after the date of approval of
the project.
Disbursement Procedures and Plan
39.
Disbursements will be in accordance with IDB disbursement procedures. A special
account will be opened in the Central Bank of Tunisia in line with IDB procedures and
guidelines to expedite the project implementation.
Procurement Arrangements
40.
The procurement of goods, works and services will be carried out using IDB procurement
guidelines.
10
VII.
RISKS AND SUSTAINABILITY
41.
Overall, the project risk is considered moderate. The potential risks associated with the
project, the degree/level of the identified risks, and the proposed mitigation measures are
provided in the Annex-5.
42.
Sustainability: The Government of Tunisia is committed to support the education sector
and key employment creation initiatives started to reduce youth unemployment. The
project will support graduates through financial support to set up CleanTech companies to
ensure the sustainability of the project. The proposed capacity building and extensive
training that will be provided by the project to the relevant staff of the MVTE will also
contribute to the sustainability of the project. The development of policy options for youth
employment support and disseminations will enhance the institutional framework for
vocational education sub sector and will create an enabling environment for effective
skills development to improve the employability of the youth. Finally, the involvement of
the private sector and strengthening partnership between them and the vocational
education institutions is expected to significant enhance the employability of the graduates
to access sustainable income.
VIII.
PROJECT JUSTIFICATION
43.
The problem of poor labor market outcomes for the young is not new to Tunisia and has
generally been recognized as one of the key factors leading up to the Arab Spring, which
originated in the country. The unemployment rate in Tunisia remained above 14%
between 1999 and 2009, peaking at 44% among those aged between 15 and 29 years and
young graduates. This situation raises questions about the employability of job seekers
and the quality and orientation of education. Employment in the informal sector is still
high, and the informal economy represents 30% of Tunisia’s GDP. 46% of young people
prefer to work for the public administration, which already employs large numbers of
people.
44.
To this day, youth employment remains one of the key policy challenges in the country’s
transition. It is important to note that the country is experiencing the highest rates of
unemployment ever and more so for the educated youth. This situation is further
complicated by the return of an estimated 100,000 Tunisian workers from neighboring
Libya. In 2010, there were 500,000 unemployed young people: 157,000 post graduates
(31%), 139,000 graduates (27%) and 204,000 high school leavers (42%). The breakdown
for university graduates and post graduates is as follows: 20% science; 16% economic,
management and law; 15% humanities, and 7% medicine, pharmacy and engineering.
Against this background, the focus of this joint proposal to the MENA Transition Fund is
on two complementary aspects of Tunisia’s broader efforts to shit to a greener economy.
45.
The project is aligned with the IDB 1440H vision, Comprehensive Human Development
and Poverty Reduction Strategy (CHDPRS) and the Bank Medium Term Business
Strategy of the Bank ( 2013 – 2015). The project is in line with the following pillars of the
Transition fund; (i) investment in sustainable growth; (ii) inclusive development and job
creation; and (iii) enhanced economic governance and competitiveness.
11
IX.
46.
RECOMMENDATIONS
In light of the rationale and justifications provided in the above sections, I recommend to
IDB endorses the request of the Government of Tunisia to act as the Implementation
Support Agency (ISA) for the Strengthening the Employability of Youth During Tunisia’s
Transition to a Green Economy.
12
ANNEX-1
Results Based Logical Framework
Project Development Objective (PDO):
PDO Level Results Indicators*
Unit of
Measure
Cumulative Target Values**
Baseline
Frequency
YR 1
YR 2
YR3
Indicator One: OECD report
assessing the broader policy
framework for investing in youth, in
particular to promote the
employability of youth, through better
labour market, education and training
policies.
Indicator Two: Enrolled beneficiaries
are employed or have launched their
own projects
Legal and
institutional
reforms are
adopted
0
Percentage
70%
5%
25%
25%
Indicator Three: Creating small and
medium sized "Cleantech
Companies”.
Number
45
0
20
Indicator Four: Direct and indirect
jobs generated by the “Cleantech
Companies”
Number
300
0
100
0
YR 4
Data Source/
Methodology
1
Yearly
MVTE /
Reports
15%
Yearly
MVTE
20
5
Yearly
MVTE
150
50
Yearly
MVTE
Responsibility
for Data
Collection
Description
(indicator definition
etc.)
OECD in
cooperation with
MVTE and IsDB
Delivery of the OECD
report.
GJP Steering
Committee + IsDB
+ UNOPS
GJP Steering
Committee + IsDB
+ UNOPS
GJP Steering
Committee + IsDB
+ UNOPS
Number of enrolled
beneficiaries employed.
Preparation of OECD
questionnaire. The MFPE
will be in charge of
providing answers to the
questionnaire, possibly
consulting with other
experts and officials from
the relevant Tunisian
authorities. Collection of
responses from MFPE.
Kick-off seminar back-toback with OECD
mission..
OECD Report completed,
published and
disseminated. Publication
of OECD report on policy
Options for Investing in
Youth will complete the
mission of the OECD.
Number of small and
medium "Cleantech
Companies” created.
Number of jobs created
by incubators.
INTERMEDIATE RESULTS
Intermediate Result (Component One): Comprehensive VT and Employment policy framework analysis
Intermediate Result indicator
One: Co-ordination platform for
monitoring VT and employment
related policies
Interministerial
taskforce set
up to coordinate
inputs to
policy review
process
0
0
Intermediate Result indicator
Two: Invest in Youth: Tunisia”
Report completed
Analytic
report
0
1
1
Intermediate Result (Component Two): Setting-up the Green Jobs Platform
1
6 months
Regular
communication
with task-force
partnering in
policy review
process
Inter-ministerial
taskforce led by
MVTE + OECD +
IsDB
6 months
Reports
OECD, MFPE and
IsDB teams
attending two
workshops (together
with other experts)
Intermediate Result indicator
One: Organization structure, pilot
identified, staffing and skill
requirements, including gender
focus approach,
Intermediate Result indicator
Two: youth professional
preparation for the green
markets’ jobs and its potential in
Tunisia: approach, arrangements
and material prepared
Intermediate Result indicator
Three: Integrated Training
sessions are organized as well as
eco-experiences and coaching and
mentoring programmes
Intermediate Result indicator
Four: Cleantech companies are
created and established including
its related technical and financial
instruments
Intermediate Result indicator
Five: Direct and Indirect Jobs are
generated
Organization
structure,
pilot
identified,
staff skills,
procedures
defined,
gender focus
Approach
including a
combined set
up of an
integrated
(academic
and practical)
training &
ecoexperience,
coaching and
mentoring
arrangement
in place.
# enrolled
beneficiaries
# external
participants/e
xperts
sharing
country
experiences
# of
companies
0
0
0
1
1
1
0
1
1
1
0
30
0
30
20
30
20
5
6 months
Workplan and
Implementation
set up; reports
10 months
Arrangements
and integrated
training pack,
eco experience ,
coaching and
mentoring
programme
prepared
#of staff in
training,
internships
and exchange
programme
0
0
10
50
20
150
100
20
0
2
GJP organization
structure is defined; pilot
identified, staff skill
requirements are
established including
gender focus.
GJP Steering
Committee + IsDB
+ UNOPS&
feedback from
enrolled
beneficiaries
Arrangements and
integrated training pack
are prepared, including
eco- experience, coaching
and mentoring
programmes;
Number of beneficiaries
trained, coached and
mentored; contacts
established with
practitioners and other
experts and network
including at the
international level
Technical and financial
instruments established to
facilitate Projects
launched and established
in the framework of the
Green Jobs Platform
10 months
Reports
Experts &training
staff & feedback
from training
participants
10 months
MVTE statistics
on creation of
start-ups
accompanied by
the GJP.
GJP Steering
Committee + IsDB
+ UNOPS
10 months
MVTE
statistics,
Mission report
of monitoring
and evaluation
and periodic
reports to the
Steering
Committee.
GJP Steering
Committee + IsDB
+ UNOPS
Number of direct and
indirect jobs generated by
the Cleantech companies
+ incubators
GJP Steering
Committee
Number of staff and
youth benefiting from
training programs,
including internships and
exchange programmes
with partner countries.
# of jobs
0
Intermediate Result indicator Six:
Capacity Development provided
for selected MVTE staff and
qualified youth in the pilot
governorate
1
GJP Steering
Committee + IsDB
+ UNOPS
6 months
Reports
ANNEX-2
Socio-Economic and Financial Indicators of Tunisia
INDICATOR
Population (Millions)
Real GDP (LCU, Billions)
Real GDP Growth (%)
Nominal GDP (LCU, Billions)
Nominal GDP (US$, Billions)
PPP GDP (Current, US$ Billions)
Real GDP per capita (LCU,
Thousands)
GDP per capita (Current, LCU
Thousands)
GDP per capita (Current, US$
Thousands)
Inflation (%)
Current Account Balance (US$,
Billions)
Current Account Balance (% GDP)
Budget Deficit (% GDP)
Public Debt (% GDP)
External Debt (% GDP)
Investment (% GDP)
Domestic Savings (% GDP)
Merchandise Exports (f.o.b.) (US$
Millions)
Merchandise Exports (f.o.b.) (% GDP)
Merchandise Imports (c.i.f.) (US$
Millions)
Merchandise Imports (c.i.f.) (% GDP)
2008
10.3
49.1
4.5
55.3
44.9
91.8
2009
10.4
50.7
3.1
58.8
43.5
95.5
2010
10.5
52.2
3.1
63.4
44.3
99.7
2011
10.7
51.3
-1.8
64.7
46.0
100.0
2014
11.0
56.6
4.1
82.3
47.0
115.4
2015
11.1
59.6
5.3
89.8
49.2
123.5
4.8
4.9
5.0
4.8
4.9
5.0
5.2
5.4
5.6
5.9
5.4
5.6
6.0
6.1
6.5
7.0
7.5
8.1
8.7
9.5
4.35
4.9
4.17
3.5
4.20
4.4
4.32
3.5
4.15
5.0
4.19
4.0
4.28
3.5
4.43
3.5
4.60
3.5
4.84
3.5
-1.7
-3.8
-0.6
43.3
46.3
23.5
22.9
-1.2
-2.8
-1.5
42.9
49.9
24.2
21.9
-2.1
-4.8
-1.3
40.5
48.8
24.3
21.1
-3.4
-7.3
..
..
..
..
..
-3.6
-7.9
..
..
..
..
..
-3.5
-7.7
..
..
..
..
..
-3.3
-6.9
..
..
..
..
..
-3.1
-6.4
..
..
..
..
..
-3.0
-5.8
..
..
..
..
..
-3.1
-5.6
..
..
..
..
..
18,627.8 13,969.4 15,278.2 16,551.8
41.5
32.1
34.5
36.0
..
..
..
..
..
..
..
..
..
..
..
..
24,542.0 19,162.2 23,574.7 26,140.7
54.7
44.0
53.2
56.8
..
..
..
..
..
..
..
..
..
..
..
..
3
2012 2013
10.8 10.9
52.7 54.4
2.7
3.3
70.4 76.2
44.7 45.6
104.4 109.3
2016 2017
11.2 11.3
62.9 66.7
5.5
6.0
97.8 107.3
51.7 54.8
132.7 143.7
ANNEX-3
IDB Financing for Tunisia
4
ANNEX-4
Map of Tunisia and Project Locations
5
ANNEX-5
Project Risks and Mitigation Measures
Risks
Deterioration of the macroeconomic situation due to the effect
of the revolution
Scale
Medium
Mitigations
The new Government is determined to create a
stable micro economic environment and has the
support of the development partners.
Delay in the adoption of the
regulations providing autonomous
status of Vocational Training
Center
Medium
The texts have been already drafted. The
Government is committed to restructure the
vocational education and training system.
Insufficient participation of the
private sector in the VET.
Low
The project will strengthen the linkage between
the privat sector and the VTCs. See component 4.
6