1

This action is funded by the European Union

ANNEX 1

of the Commission Implementing Decision on the Annual Action Programme 2015 in favour of

Pakistan to be financed from the general budget of the European Union

Action Document for "Support to the Technical and Vocational Education and Training

Sector in Pakistan (TVET III)"

INFORMATION FOR POTENTIAL GRANT APPLICANTS

WORK PROGRAMME FOR GRANTS

This document constitutes the work programme for grants in the sense of Article 128(1) of the Financial

Regulation (Regulation (EU, Euratom) No 966/2012) in the following section concerning grant awarded

directly without a call for proposals: 5.3.1

1. Title/basic act/ CRIS

number

Support to the Technical and Vocational Education and Training

Sector in Pakistan (TVET III).

CRIS number: DCI-ASIE/ 2015/038-220

Financed under Development Cooperation Instrument.

2. Zone benefiting from the

action/location

Asia, Pakistan.

The action shall be carried out at the following location:

Component1: Federal level and country-wide (all provinces/ regions) &

Component 2: Sindh and Baluchistan Province.

3. Programming document EU – Pakistan Multi-annual Indicative Programme (MIP) 2014 – 2020.

4. Sector of concentration/

thematic area

Education/ Vocational Training.

5. Amounts concerned Total estimated cost: EUR 49,000,000.

Total amount of EU budget contribution: EUR 45,000,000.

This action is co-financed in joint co-financing by:

-The Government of Germany for an amount of EUR 4,000,000.

6. Aid modality(ies)

and implementation

modality(ies)

Project Modality.

Direct Management: grants – direct award / procurement of services

7. DAC code(s) 11330- Vocational Training.

8. Markers (from

CRIS DAC form)

General policy objective Not targeted Significant

objective

Main

objective

Participation development/good

governance ☐ ☐ ☐

Aid to environment ☐ ☐ ☐

Gender equality (including Women

In Development) ☐ ☐ ☐

Trade Development ☐ ☐ ☐

Reproductive, Maternal, New born ☐ ☐ ☐

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and child health

RIO Convention markers Not targeted Significant

objective

Main

objective

Biological diversity ☐ ☐ ☐

Combat desertification ☐ ☐ ☐

Climate change mitigation ☐ ☐ ☐

Climate change adaptation ☐ ☐ ☐

9. Global Public

Goods and

Challenges (GPGC)

thematic flagships

NA

SUMMARY

The action aims to support the Government of Pakistan in the implementation of its newly devised TVET

Policy. It also aims to provide quality TVET services to support inclusive economic growth. The problems

of the TVET sector are multi-dimensional, yet interrelated. The key issues of the TVET sector in Pakistan

include: weak governance and management; limited role of private sector in decision making, relevance and

quality; and access and equity. The overall objective of the project is to contribute towards socio-economic

growth through development of human resources, enabling people to engage in productive employment. The

specific objective is to improve governance and private sector participation in the TVET sector to enhance

access to quality skills development that meets demand of the labour market. Expected result 1: Equitable

access to market led TVET system and enhanced employability of graduates through implementation of

relevant provisions of National TVET policy and National Skills Strategy. Expected result 2: Trainings

designed and delivered with increased collaboration and private sector involvement, leading to greater

employability.

Salient Features: The project will work following a systems development approach by facilitating

productive engagement of private sector. In this endeavour, it will focus on: i) enhancing private sector role

in governance, ii) progressive implementation of National Vocational Qualifications Framework (NVQF1),

iii) continuation in implementation and development of Competency Based Training and Assessment

(CBT&A2) packages; iv) establishment of ‘Centres of Excellence’ in Teacher Training; v) restructuring of

assessment and certification bodies; and vi) strengthening of selected Technical Education and Vocational

Training authorities (TEVTAs)/Directorates. These systems will be applied in skills training, as the project

plans to train 18,000 people (including 15000 from Sindh and 3000 from Baluchistan) with objectives to

deepen Training Service Providers’ skills to work with business and industry and manage workplace-based

training to ensure training outcomes. Of the total, 30% will be females. The consortium approach of skills

training management (Component Two) will offer opportunity for public and private TVET institutes to

practice innovative approaches that the project envisages. In this connection the project aims to support

alliances between companies and relevant training providers to develop and implement demand-driven

technical and vocational education and training programmes.

Project approach/Proposed implementation modality and type of implementing partner: Direct

management through Pillar Assessed Grant (PAGODA) with GIZ as GIZ has the expertise, capacity and

access to TVET support in Pakistan thanks to preceding involvement in TVET I and II.

1 A Qualifications Framework is an instrument for the development, classification and recognition of skills, knowledge and competencies along a

continuum of agreed levels. It is a way of structuring existing and new qualifications, which are defined by learning outcomes, i.e. clear statements

of what the learner must know or be able to do whether learned in a classroom, on-the-job, or less formally. Pakistan NVQF contains one Pre-

vocational level designed to meet the basic TVET entry needs of the majority of the population with little or no schooling, and five levels, 1 to 5

from certificate to diploma, to provide a clear pathway in TVET and entry into Higher Education degree levels. 2 Contrary to curriculum and time bound training, CBT focuses acquisition of competencies as per competency standards. The CBT based training

makes use of competency packages which comprise Competency Standards, Curricula, Assessment Guides and Teaching Learning Materials for

effective training.

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1. CONTEXT

1.1 Sector/Country context

Pakistan is faced with enormous socio-economic challenges. Ranked at 146 on the Human Development

Index, 49% of Pakistan’s population is facing situations of multidimensional poverty, and 21% of the

population survives on less than USD1.25 per day3. The economy of the country grew on average at the rate

of 3.5% per annum during the last five years, almost half of its growth rate five years ago4. Gainful

employment for its people is among the most pressing challenges that Pakistan faces.

The total estimated population during the year 2014 was 188 million, of which 62 million (33.63%) are

between 15-34 years of age. This young and dynamic population can be an asset if appropriately trained.

Unfortunately, hardly 17% complete secondary education and a very small percentage acquire employable

skills5. The labour force accounts for 56% (59.7 million) of the 103 million working age group (15-69

years). The unemployment rate stands at 6.2%6. Nearly two-thirds of the employed labour force is in what is

classified as vulnerable employment, which includes unpaid or low-paying jobs in the informal sector and

self-employment. Although the contemplated economic growth rate of at least 7% (by 2015)7 may be overly

ambitious, an increased demand for skilled labour in all sectors (both internationally and domestically) is to

be expected in the coming years, particularly in infrastructure, industries and new technologies.

The TVET system in Pakistan is highly fragmented and comprises of a formal and a large informal sector. In

the formal sector, the principle sources of TVET provision are public and private training providers,

enterprise based skill trainings and NGOs. The informal sector is characterised by the Ustad-Shagird

(master-student) tradition of vocational training. The informal sector is important for training and it is

estimated that it trains twice as many people as formal TVET.8

1.1.1 Public Policy Assessment and EU Policy Framework

The National Skills Strategy (NSS) of 2009 defined three objectives: providing relevant skills for industrial

and economic development; improving access, equity and employability; and assuring quality to address the

major issues confronting the TVET system.

Taking as foundations the NSS and the Pakistani strategy Vision 2025, the Ministry of Federal Education

and Professional Training developed a broader National TVET Policy with participation of various

stakeholders from public and private sector (e.g. provincial TEVTAs, Chambers of Commerce and Industry,

and industrialists represented on the Task Force responsible for policy’s development). The policy was

launched in March 2015 by the Minister of Federal Education and Professional Training. The Government is

fully on board and owns the policy, which has now been submitted to the Prime Minister for formal

approval. The policy puts emphasis on increasing training opportunities for young people as well as on re-

skilling existing workers, implementing the NVQF and CBT&A. The policy also puts emphasis on forging

public- private partnerships; increasing the private sector role in the governance of TVET; expanding export

of trained workforce; encouraging linkages with the informal sector through Recognition of Prior Learning

(RPL); and continuation of reform of the public TVET sector. The definition of a TVET policy is a key

milestone for TVET in Pakistan and all donors' interventions in this sector are expected to be aligned to

support its implementation. A preliminary implementation plan of the policy for the next three years with

broad results has been defined. The plan now needs to be rolled out at the federal/provincial levels and the

results framework needs to be further developed and adopted with specific monitoring indicators for each

province/region. The M&E parameters have been developed and piloted in Azad Jammu Kashmir (AJK).

Based on its wide acceptance, it is now being replicated in KP and FATA and will soon be replicated in

other provinces during 2015-2016.

3 United Nations Development Programme (UNDP) (2014): Human Development Report 4 Government of Pakistan -Ministry of Finance (2014): Economic Survey of Pakistan 2013-2014 5 Pakistan: New Growth Framework, Planning Commission, Govt. of Pakistan, January, 2011 6 ibid 7 Ministry of Federal Education and Professional Training (2015): Skills for Growth and Development- A TVET policy for Pakistan. 8 Mahbub-ul-Haq Human Resource Development Centre, (2007): Education Outcomes and Poverty

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The proposed intervention fully complies with the EU policy framework. Support to the development of

vocational/technical training is in line with the EU policy for development cooperation adopted in 2011

through the EU Agenda for Change. It is also included in the EU-Pakistan Five Year Engagement Plan

agreed in 2012. Besides, TVET is one of the priority sectors identified in the Multi-Annual Indicative

Programme (MIP) for EU cooperation with Pakistan for the period 2014-2020 (MIP 2014-2020). The

programme's strategy is inspired by the principles of the 2014 EU Communication "Stronger Role of the

Private Sector in Achieving Inclusive and Sustainable Growth in Developing Countries" and aligned to its

action 3 aiming to support alliances between companies and relevant training providers to develop and

implement demand-driven technical and vocational education and training programmes.

With an overall contribution of EUR 46 million, the EU is currently supporting TVET in Pakistan through

two programmes (MIP 2007-2013). In particular, support has been provided to: develop the National TVET

Policy; improve governance, develop NVQF, build capacity of relevant stakeholders to collect and analyse

labour market information, and strengthen capacity of relevant TEVTAs and service providers at the

provincial level. Both programmes will end in 2016. Now the challenge is the implementation of what has

been developed so far (the NVQF and the CBT curricula for example) and the consolidation of the results

achieved.

1.1.2 Stakeholder analysis

TVET sector in Pakistan has a wide range of stakeholders, both at the federal and the provincial level, from

the public as well as private sector.

Ministry of Federal Education and Professional Training is playing lead role in policy formulation.

However, after the 18th constitutional amendment devolving major functions to provinces, its role is limited.

NAVTTC is the apex body working under the Ministry with regulatory and co-ordination role but due to high

staff turnover, it suffers from very limited technical capacity.

At the provincial and regional level, TEVTAs / Directorates have key role in planning, coordination and

implementation of TVET. However, these agencies also face the problem of inadequate technical capacity

and resources. Their collaboration with private sector is at very primitive stage. TVET at provincial level is

quite fragmented as other departments also implement TVET in some provinces. Poor coordination,

duplication of efforts, weak governance combined with thinly spread resources result in weakening the

whole sector.

At the provincial level, Trade Testing Boards (TTBs) and Boards of Technical Education (BTEs) have

Assessment and Certification responsibilities. Their functioning is not entirely satisfactory and sometimes

there is duplication as well.

National Tainting Bureau (NTB) and National Institute for Science and Technical Education (NISTE) at the

federal level and Staff Training Institutes (STIs) and Technical Teacher Training Centres (TTTCs) at

provincial level are important stakeholders responsible for teachers training. Despite large number of human

resources, and institutional and physical facilitates, these institutions mostly work in stand-alone manner.

TVET III intends to strengthen their capacity for TVET quality improvement.

Ministries of Industries and Production, Commerce and Textile, and Petroleum and Natural Resource

though represent important economic sectors, do not have any direct role in TVET.

As per Pakistan Education Statistics (2010-11), TVET services are offered through 3,224 public and private

institutes. Around 1000 of these are public sector TVET institutes. Most suffer from deficiencies such as

age-old teaching and assessment systems; inadequate training equipment; outdated curriculum, shortage of

training materials, poorly motivated faculties and inadequate linkages with business and industry. These all

result in supply driven and output focused training. Except for some private training providers, most of the

private sector institutions also encounter similar problems. In all cases, workplace-based training is practiced

in a limited manner.

Direct/intermediate beneficiaries and other key stakeholders are Business and Industry and their

Associations (BIAs). For instance, builders and developers association, textile mills association, garments

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manufacturers and exporters association, hotel associations etc. BIAs have key role in identifying skills gaps

and demands and are ultimate employers. Although, represented in NAVTTC and TEVTAs, their

participation is largely ceremonial as they have almost no role in decision making. They are therefore, not

productively engaged in training design and implementation and do not offer training on the job. Even the

Institute Management Committees (IMCs) are not established in all institutes, let alone they becoming

productively functional.

Local Non-Governmental Organizations (NGOs) and Civil Society Organizations (CSOs) play role in

poverty alleviation and improved living through skills development but their contribution is relatively small

and is limited to the informal sector.

The target group and primary stakeholders of TVET III are the young people of Pakistan.

As explained in Section 3.2, many donors are engaged in TVET and some have significant roles.

1.1.3 Priority areas for support/problem analysis

The problems of the TVET sector in Pakistan are multi-dimensional, yet interrelated.

Governance and Management: The TVET sector is fragmented and involves a number of national and

provincial bodies with some overlapping functions. This has resulted in weak governance. The EU TVET

Reform Project has contributed to reduce this fragmentation and has helped in clarifying the roles and

responsibilities between the federal and provincial bodies. It has also supported the TEVTAs in Sindh,

Punjab and AJK in enhancing their capacities and improving their management structures. This support will

be extended in newly established TEVTAs of Khyber Pakhtunkhwa (KP) and Baluchistan based on their

needs. Similarly, the existing TVET structures in Federally Administered Tribal areas (FATA) and Gilgit

Baltistan (GB) need support for their respective organizational development and capacity building. Clearly,

TEVTAs, especially new ones, need support for enhancing their capacity for operationalization of NVQF

and rolling out CBT packages. There is a serious problem of rapid turnover of staff in NAVTTC and, to a

lesser degree, also in TEVTAs that not only jeopardises the efforts for capacity building but at the same time

adversely affects the much needed institutional continuity and memory. The next phase of TVET Reform

will have to envisage and implement some measures to overcome this problem. Teacher training is another

weaker link in the chain. The current capacity of 11 STI/TTTCs is inadequate to cater large number of

teachers in around 1000 public sector TVET institutes. If institutes in the informal sector are also added, this

capacity becomes meagre. This situation calls for developing the teacher training system. The TTBs and

BTEs are functioning in parallel but without satisfactory performance. Their restructuring through merger is

felt necessary to improve their services. In order to ensure full participation and contribution of employers,

governance mechanisms and processes need to be worked upon continuously. In particular there is a need to

increase the private sector role in both TVET governance and delivery – an approach explicitly supported by

the new National TVET Policy. Positive experiences from the corresponding pilots from the ongoing EU

TVET programme have to be transferred into general TVET governance practices (e.g., the Cooperative

Vocational Training9 (CVT).

Relevance and Quality: The relevance and quality requires the identification of trades for training that may

belong to sectors of economy with growth potential or significant share in GDP, for instance construction,

textile, manufacturing and energy. Very little or no practice exists for assessing the local labour markets

needs essential for planning specific training. In general, the role of BIAs in this process is lacking.

Although, construction, textile, automobile, industrial machinists, agriculture, energy, hospitality, health and

leather works are major sectors of economy with employment potential, proper sector studies that could

suggest major drivers of economy with data and evidence are also missing. Lack of adequate training

facilities results in poor quality of most of the formal training in the public sector. Furthermore, poor

industry-institution/TVET sector linkages result in inadequate labour market information, development of

irrelevant curricula and limited On the Job Training (OJT10)/apprenticeship opportunities. These all lead to a

9 CVT is a type of sandwich programme where there are alternate cycles; institute based training, and the industry for better skill proficiency and

work place experience. 10 Under OJT system, trainees work for a certain period in the industry towards the end of their training (e.g., four months training in the institute and

then work for two months in the industry as part of the training.

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poor quality TVET and contribute to mismatch between demand and supply. In effect, TVET graduates

remain unemployed. This is precisely why enhancing institution-industry linkages will be the prime focus of

the upcoming support. BIAs are not only envisaged to take the lead in training system/processes, they are

also expected to own the TVET graduates.

There is no system of internal assessment focusing at competency level. Similarly, employment and income

verification for ensuring payments for training outcomes does not exist. Tracer studies are not done

systematically. The National Skill Information System (NSIS) set up in NAVTTC needs to be strengthened

to allow for regular update of labour market information, in particular demand side information. Networking

with employers’ associations, TEVTAs and training providers needs enhancement and is envisaged in future.

NVQF and CBT packages have been developed to improve relevance and quality with the support from the

EU TVET Reform Projects but they now require to be fully implemented. There is heavy pressure for paid

jobs and any delays in securing jobs lead to disillusionment about usefulness of TVET. Job counselling

services and provision of OJT/internship in the world-of-work would contribute to mitigate this problem, as

would job placement services. OJT/internship of students in the relevant industry would enable them to

acquire skills proficiency and work discipline that would in turn improve employability. It also serves as

transition phase towards employment. Ways of achieving this would include scaling up of the CVTs and

dove-tailing of OJT/internship in the training programmes. This could also be applied with some of the

public sector institutes with good infrastructure. Overall, these initiatives would foster cooperation between

the TEVT institutes and the private sector, in particular industry. Institutionalising CBT-based teacher

training is also a need.

TVET institutions, particularly the regulatory bodies, have traditionally been working in isolation from

industry, leading to mistrust about their complementarity and need to work closely together. The NSS and

the National TVET Policy candidly highlights the importance of private sector involvement. A number of

efforts, such as the constitution of the Institute Management Committees (IMCs) by TEVTAs and Industry

Advisory Groups (IAGs) by NAVTTC, each with representation from BIAs, have been made in the past to

address this problem but without much impact. This is partly because the private sector has limited to no role

in decision making and, as a result, they do not take ownership of TVET programs. As such, their

involvement remains at the participation level. This needs to be changed, which essentially means

restructuring of the NAVTTC and TEVTA boards for ensuring more than 50% members from private sector.

A similar change is required in the structure of IMCs.

Capacity: Between 2007 and 2014, enrolment has increased from 315,000 to 385,000 in public and private

training institutes. The estimated demand for training the new labour market entrants alone is 1.3 million per

year. The current capacity is only about 30% of what is needed. Obsolete and non-functional training

equipment, limited funds restricting the availability of training materials, and trainers without experience and

knowledge in new technology results into limited/underutilisation of training institute's potential. In the big

cities there is competition for limited seats in the institutions. Given all this, there is a need for supporting

selected institutions in public sectors for some upgrading of their workshops and labs and for enhancing their

training capacities. Information available about the private sector contribution in skills development is

patchy. Some employers provide world-class training but many, seemingly, regard training as a cost rather

than an investment, resulting in poor facilities. Some efforts have already been made to improve the training

provision and capacity of exiting TVET institutes but this is not enough. In view of the increasing gap in

training capacity and demand, efforts must be continued to enhance the capacity of training providers.

Access and Equity: One of the major causes of unemployment is the lack of appropriate skills, caused by

overall low access to TVET services. Distributions of public TVET institutions greatly vary with provinces.

Furthermore, the number of business, and particularly the number of industry establishments, that could

facilitate completion of quality training vary greatly by provinces and are extremely limited in some

provinces and regions (such as GB, AJK, Baluchistan and KP). There is also gender disparity: enrolment

figures show a gender gap, with only 37.6% female students in 2008-09. Efforts should continue for

supporting skills training for women, including enhancing the capacity of existing training providers in this

regard. In order to create a female-friendly TVET environment, it would be helpful to include females in the

governing bodies. Similarly, presence of female teachers would work as a pull factor. There is also a need

for encouraging young females to take up non-traditional training.

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2. RISKS AND ASSUMPTIONS

Risks Risk

level

Mitigating measures

Instable Security situation. H/M Take precautionary and safety measures; involve local

functionaries to the maximum extent and manage to keep

distance from high risk areas.

High corruption rate. H Encourage and support partners (especially within the

government sector) to use of more transparent system, frequent

monitoring, regular audits, allow only minimum discretionary

powers, ensure accountability and implementation of EC policy

on 'zero' tolerance for corruption.

Training Service

Providers (TSPs) are too

focused on outputs and

will follow the traditional

modes of training

practices

H Extreme caution to be taken while developing terms of

reference of TSPs. Make TSPs clear that they cannot make

departure from workplace-based-training approach. M&E

system including competence level monitoring with real-

time database capacity will have to be put in place. EUD

monitoring team with capacity to provide technical

feedback to be in place also.

Political instability, regional

conflict.

M/L Re-assess the EU work. EU and EU Member States high level

political engagement including through EU-Pakistan Strategic

dialogue.

Job placement services

either not available or often

do not work effectively to

ensure employment.

M Lobby for private sector leadership in the NAVTTC and

TEVTAs; facilitate at least 50% membership in boards; mobilize

Private Sector engagement tools (IMC and SSC). Encourage

training providers to prepare and put in place the OJT and

employment placement plans from week one of start of training.

Lack of suitable skilled

personnel and staff retention

issues within the government

partners (TEVTAs/

NAVTTC).

M Lobby for changing legislative structure to institutionalize private

sector leadership and ownership; establish NAVTTC and

TEVTAs as truly autonomous bodies, free from bureaucratic

control, and help develop their own cadres and slowly remove

deputation from government.

Insufficient capacity in

public sector in providing

skills and meeting market

needs.

M Institutionalize teacher training focusing on technical skills (as

in-service training) but some pedagogy as well; Institutionalise

IMCs for each institute; Develop capacity to use market

assessment tools.

Economic growth not

sufficient for generating

adequate jobs and self-

employment.

L Design and deliver training programs only in areas where there is

local labour market demand from employers. Bring the BIAs in

the lead position and facilitate their ownership on training. Work

closely with BIAs in planning and estimating numbers.

Training providers fail to

identify poor and

marginalized youth.

L Engagement of services of local NGOs for community

mobilization and identification of deserving trainees.

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Government training

providers become dependent

on the project funds.

L Build public training providers capacity to work for meeting

market demands; Train them on management skills including

proposal writing, project development and report writing;

Establish training incentive fund from the earnings made by such

institutions and provide incentives to the trainers; enhance their

capacity to enable them to become sustainable businesses and tap

multiple training sponsors; Advocacy for medium term financial

cycle for TVET and increasing funds allocation by the

government; Covenants in the agreement for making provision in

the budget to gradually replace project funding so that major

recurring part is taken over by Government funding before

completion of the project.

BIAs level of engagement in

the project is low L In view of the objectives of both components, form the Project

Steering Committee (PSC) with BIAs participation and mobilize

them; lobby for private sector/ BIAs productive engagement;

establish at least three Sector Skills Councils which will be the

preference for implementing NVQs, developing and

implementing CBTs and teacher training. These sectors could be

the focus while designing skills training as well. If possible, make

efforts for ensuring IMC membership from these sectors.

Assumptions

TVET policy approved and will be ready for implementation by December 2015.

Private sector and provincial bodies endorse TVET policy and NVQF.

Government ensures private sector leadership and ownership in TVET system through increasing

membership/role in TVET decision making bodies including NAVTTC/TEVTAs.

3. LESSONS LEARNT, COMPLEMENTARITY AND CROSS-CUTTING ISSUES

3.1 Lessons Learnt

During the implementation of the on-going EU TVET programmes, a number of important lessons have

been learnt, also pointed out by mid-term reviews conducted in 2014:

a. All stakeholders acknowledge that EU support has been key to the advancement of TVET reforms and

have expressed the need for its continuation. To reap the benefits of interventions by donors, there is a

need for productive partnership between government and TA/implementing partners to align all efforts

to support a unified national TVET system. Programs designed with government and private sector

inputs would have higher likelihoods for yielding sustainable outcomes.

b. Role of BIAs is critical to make the training outcome-based. So far, with few exceptions, their

engagement is limited to ceremonial level; it is not a real engagement. In absence of effective roles and

responsibility, they keep distance and, therefore, feel hesitant to support the training process, let alone

taking ownership of graduates.

c. Effective implementation of the reform calls for establishing new fit-for-purpose agencies or the re-

configuration of existing agencies. The overly bureaucratic organizations have limitations to meet the

labour market needs. The rapid rotation of civil servants at both senior and technical levels undermines

the development of capacity and needs to be addressed through stronger commitments from the

government by putting stable and cadre based staff structures in place.

d. Currently, by far most of the public sector training is traditional curriculum based and opportunity for

trainees to have experience in the world of work is very limited. Even some of the well-known NGO

training providers were found not practicing OJT, let alone using workplace-based training methods.

e. Training packages have only very limited consideration for enterprise development. If ever they do, they

include few sessions on entrepreneurial skills that are grossly insufficient for starting small business.

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f. Internal assessment is done on monthly basis. It would be better if it could be done after completion of

each competency standards. In the absence of a system for regularly and systematically tracing

performance after graduation, it has been difficult to understand outcome/impacts of training.

Verification of employment and income before making final payment is practiced in a limited manner.

g. Most of the institutes particularly in the public sector need support to improve quality of their training

(training of teachers in CBT packages, equipment and materials) to make them outcome-oriented.

h. Regarding implementation modality, the added value of working with international NGOs through a call

for proposals for skills training has not proved very efficient and convincing. It resulted in the selection

of NGOs with none or limited prior TVET experience that faced considerable difficulties in scaling up to

achieve the required capacity. Hence, other implementing options should be considered.

i. Need to explore non-traditional skills for women to enhance their participation and role in socio-

economic development.

j. EU visibility should be improved by the implementing partners, a clear distinction between donors and

implementers needs to be made.

3.2 Complementarity, synergy and donor coordination

A number of donors are active in the TVET sector in Pakistan:

Netherlands, Germany and Norway are also funding the EU TVET programme supporting the overall

TVET reform. This is the only programme assisting the federal and provincial governments in a

systemic way. Apart from EU, Germany has also plan to continue its support to the TVET reform

through GIZ with an indicative allocation of EUR 8 million to be committed in the last quarter of 2015.

The World Bank is currently implementing a TVET project in Sindh worth USD 21 million, which ends

in 2015 after having been granted a one year no cost extension. This project focuses on the development

of CBT programmes with Sindh TEVTA (S-TEVTA). The Bank has operated providing funds directly

to Sindh Finance department, who was then responsible for disbursement of funds to the S-TEVTA. Due

to delays in disbursement of funds by the Finance department to S-TEVTA, the project was unable to

achieve all expected results, which has led to the Bank intending to withdraw from Sindh and

concentrate its focus in Punjab. The World Bank has just signed a 5 year skills project for Punjab that

will provide about USD 45 million of budgetary support (with additional USD 5 million as Technical

Assistance (TA) and will directly work with the Industries department in Punjab.

The Department for International Development (DFID) of the UK, in partnership with the Government

of Punjab (GoP), set up the £50 Million Punjab Skills Development Fund (PSDF) in 2010. This project

ends in December 2015 and DFID plans to continue its engagement in Punjab for next six years with

£63 million. In this next phase, PSDF will be scaled up across all 36 districts of Punjab with £59 million

(GoP has committed to match DFID’s investment). The majority of these funds will support the training

of poor and vulnerable across Punjab through the PSDF. World Bank, DFID and GIZ are closely

coordinating all cooperation to ensure synergies. From the remaining £4 million, half will be spent on

TA to support the PSDF and the remaining will most likely be shared with the World Bank as a

contribution to the progress of specific Disbursement Linked Indicators (DLIs) jointly identified. To

avoid duplication, DFID's support will not work in areas such as teacher training, CBT, assessment and

capacity enhancement of training providers, which is already covered by other development partners

and, in particular, GIZ's programme.

International Labour Organization’s (ILO) supports governance of management of labour migration and

Pakistan’s efforts to apply 12 of the 34 ratified related conventions.

Japan International Cooperation Agency (JICA) is providing sector specific support and is linking its

industrial and TVET programmes. Its current support, foreseen to finish in 2023, is focused on the textile

and construction sectors through funding three training institutes (in Islamabad, Lahore and Faisalabad).

JICA plans in the future to replicate this model across Punjab and then in Sindh. It has also an ongoing

project in border areas in KP focusing on vocational training for mechanics and electricians.

United Sates Agency for International Development (USAID) has TVET integrated in various projects

implemented at the provincial level in Punjab, Sindh and FATA. Under these projects (totalling to about

10

USD 50 million), funds are allocated for technical training and entrepreneurship. USIAD is now aiming

to scale up one of its ongoing pilot project in four districts of Southern Punjab with additional USD 15

million with women as 30% of target beneficiaries. However, due to the changing priorities of the US

Government, their future interventions are rather unclear.

Government of Korea is building trade specific centres of excellence in textile; agriculture and livestock;

and Information and Communications Technology (ICT).

Government of Norway funds a UN Women project to assist home-based women workers to increase

opportunities for paid work and gain access to social welfare benefits.

Government of Italy, in collaboration with GIZ, has plans to provide skills training in agriculture sector

with estimated budget of EUR 15 million. The foreseen project duration is expected of 36 months.

The British Councilis providing TA to Sindh TEVTA to establish an employer representative body for

the hospitality sector. In KP, it is working on performance management mechanism for over 2,000

teachers from 71 institutions.

Synergies are being forged among donors, both at federal and provincial level, based on a mapping of

current and future activities. Donor coordination at government level is rather weak. A donor coordination

group chaired by NAVTTC exists but is ineffective and does not meet regularly. However, NAVTTC has

recently shown an intention to improve coordination and harmonisation at the operational level. The EU

called a TVET donors meeting in May 2015 and proposed to form a donors group on TVET to ensure more

effective donor coordination. As a result, a Technical Working Group (TWG) on TVET gathering all key

development partners has been very recently formed (on 30 June '15) under the National Education

Development Partners Group (NEDPG). Since a forum already existed in the form of NEDPG, it was more

logical to form a TWG as part of it. The first meeting of TWG is scheduled on 30 July where the coordinator

of the group will be selected. It is likely that EU will be the coordinator of this TWG. The TWG on TVET

will meet on monthly basis (at least during initial months to establish and strengthen it). In addition to

improved coordination among donors, another main objective of this TWG will be to have a more

substantial dialogue on policy matters with the federal and provincial governments with the objective to

perform more effectively and efficiently.

3.3 Cross-cutting issues

The project addresses crosscutting issues like good governance, gender equality and environmental

sustainability. Currently, except for NAVTTC and two TEVTAs, the leadership in other TEVTAs are largely

with government. Even IMCs have not been established for all institutes and performance of IAGs has been

under question by NAVTTC. This situation has led to persistence of supply-driven TVET system and

suggests for a change to ensure productive engagement of private sector in decision making bodies.

Therefore, one of the main objectives of the project is to improve the governance structure of the TVET

sector. TVET III will lobby with government to increase BIAs membership in TEVTAs and establishing

SSCs. It will also work on establishing IMCs in institutes where they do not exist.

Limited number of female trainees and dominance of traditional trades are two major problems. The project

will focus on increasing female participation by enhancing access through broadening trades suitable for

females, making training hours flexible, increasing spatial coverage by using consortium approach in

training and offering genuinely assessed financial resources for covering travel expenses. Possibility for

arranging child care facility at the training institute will also be looked into. Occupations that have

demonstrated training to sizable number of females in a group, have female trainers and employment

potential (for instance, textile) will be considered for training. . Other strategies to reach out particularly to

females will be using social/community mobilization and comprehensive use of communication tools

including awareness campaign. Of the total upgraded teachers/trainers as well as students trained, efforts will

be made to include at least 30% females.

The project will contribute to create awareness for environmentally responsible production and use of

materials by including such topics in standards, curricula and course programmes including introduction to

and strategies for using clean technology. Training that encourages green employment; agri-business and

livestock might reduce the waste of agricultural products and draw attention to environment-friendly

11

production. Occupations in renewable energy sector particularly solar energy systems can be supported

through appropriate skills provision.

4. DESCRIPTION OF THE ACTION

4.1 Objectives/results

The overall objective of the project is to contribute towards socio-economic growth of Pakistan through

development of human resources that enable people to engage in productive employment.

The specific objective is to improve governance of and private sector participation in the TVET sector to

enhance access to quality skills development that meets the demands of the labour market.

Expected Result 1: Equitable access to market-led TVET system and enhanced employability of graduates

through implementation of relevant provisions of the National TVET Policy and National Skills Strategy.

Expected Result 2: Trainings designed and delivered with increased collaboration and private sector

involvement, leading to greater employability.

4.2 Main activities

Inception phase: Identification of the key sectors of economy with high economic growth potential will be

one of the major activities for the project that will be carried out during the inception phase (first six

months). These studies will be based on the Government of Pakistan's economic strategy. It will help the

project understand the sectors and sub sectors that have high employment potential and also where the skills

gaps exist. This study, undertaken under component 1, will serve to select pilot sectors for implementation,

including for operationalization of NVQF, planning development of CBT&A packages, teacher training and

operationalization of Sector Skills Councils. Also, its findings will facilitate Rapid Market Appraisal (RMA)

to be done for Component 2. During the inception phase, the possibility of replicating the Sindh skills

training model under component 2 also in Baluchistan will be assessed. Should it be found not to be

replicable, the Baluchistan trainees will be brought to Sindh for training.

For Expected Result 1: With an overall objective of implementing key elements of TVET policy, focus will

be on progressive operationalization of NVQF, development and implementation of CBT&A packages and

teacher training. Implementation of component 1 will take place at federal and national level. Because of its

early stage of development, special attention will be focused on strengthening TVET institutional capacity in

Baluchistan.

Progressive implementation of the NVQF will include application and demonstration of a NVQF model for

few key sectors. Preparation of assessors will include training either directly or through Teacher Training

Institutes or other qualified bodies of 1500 persons in competency based assessment and then certifying

them after completion of training. These assessors will be in addition to the teachers trained in CBT &A as

explained in the section below. Assessors will be deployed for assessment of skills in both formal and

informal sectors (i.e. RPL). Capacity of NAVTTC and TEVTAs/equivalents will be strengthened to manage

operationalization of NVQF. This will include strengthening of the assessment and certification system,

which will include lobbying for and where agreed facilitating the merging and restructuring of TTBs and

BTEs. Other key activities would include establishing relationships and equivalency between qualifications

to facilitate employment and further career progression as well as monitoring of progress made in NVQF

implementation. NVQF will test and certify at least 33,500 (to be trained under result 1 and 2) and 15,000

equivalencies and/or recognition of RPL will be issued.

Implementation of CBT&A Packages developed in the past will be a priority during TVET III. It is foreseen

that 31 out of the 60 packages developed so far (under TVET II) will still require full implementation once

the TVET III programme starts. Implementation of a higher number of trades in fewer institutions will be the

preferred approach. Factors such as availability of appropriately equipped workshops needing minimum

refurbishment and qualified teachers will determine selection of institutes. During TVET III, it is expected

that 21 trades with high demand will be implemented by mid-201811. Additional 60 CBT packages will be

11 It will be difficult to implement around 10 packages as they will require very expensive machines and equipment.

12

developed by the project in conjunction with NVQF in the sectors with high economic growth potential. At

least 50 of these 60 new CBT packages will also be implemented during project life. At least 15,500 students

will be trained using CBT packages12. It is estimated that these 71 CBT packages will be implemented in at

least 20 TVET institutes (average 3-4 trades per institute).

Accreditation system has been developed during TVET II and is already functional and owned by NAVTTC.

Therefore, in the next phase, the focus will be on accreditation of 200 institutes in public and private sectors.

Strengthening Teacher Training Institutes is critical to prepare quality teachers required for

operationalization of NVQF and rolling out of CBT packages. As a first step, with support from National

Institute of Science and Technical Education (NISTE) and other domestic and international organisations

and experts, 20 Chief Master Trainers will be prepared by enhancing capacity of the existing teachers at the

National Training Bureau (NTB) or any other equivalent national organization. This will also require

upgrading some of its facilities. In order to cascade the knowledge and skills down, NTB or other

appropriate organisations will then focus on training 80 Master Trainers at Staff Training Institutes (STIs)

and provincial Technical Teachers Training Centres (TTTCs) under TEVTAs. These Chief Master Trainers

and Master Trainers will be the regular staff of NTB and STIs/TTTCs or other appropriate organisations,

accordingly. Hence, there will be no issue of their retention as such. However, in order to ensure their

availability, mechanisms will be negotiated with the institution. This may include a surety bond that could be

put in place with countersignature of the head of the concerned institute that the individual staff will remain

in position for at least 2 years after completion of training. The same provision will be made for females

Staff. Training of around 355013 trainers in TVET institutes will be the responsibility of Master Trainers.

Technical training will be the focus of training at this level. As STIs and TTTCs are under

TEVTAs/Directorates, regular funding from government will be ensured. Availability of required resources,

workshops and qualified Master Trainers will synergistically contribute towards developing these

institutions as ‘Centres of Excellence’ in Teacher Training. Later they will be able to manage pre-service

teacher training and other professional courses and generate funds. During the initial stage of TVET III, 800

teachers, including those from component 2 Training and Employment service providers (T&Esps) will be

trained. Based on learning from initial work, another 2750 teachers will be trained at a second phase, using

the 60 newly developed CBT packages. Of the total CBT trained teachers, females’ share will be 30%. These

3550 CBT trained teachers having been trained in assessment, may also be used as assessors.

Training of Heads of Training Institutes is another critical activity and estimated 500 Heads of institutes

will be trained during TVET III. Focus of training will be on institute management, project management,

introduction to NVQF and CBT&A, and new training approaches such as CVT, teaching factory14, outcome

based training. To ensure retention of these Heads of institutes, the same strategy of surety bond will be used

as mentioned above under teachers’ training.

Apart from these three milestones, the project will also have to perform other major activities. The foremost

will be enhancing private sector role in governance through approaches such as lobbying for at least 50%

membership in NAVTTC and TEVTA boards; establishment of IMCs, SSCs and Pakistan Skills Partnership

(proposed in TVET Policy). Linking NSIS and Information Cells with employers’ federations/BIAs will be

necessary to have access to real-time data for planning. The knowledge management system will be

strengthened for dissemination of reports generated by NSIS cell (involving sub/sector studies). Moreover,

publication and dissemination of journal and status reports as well as regular updating of website of

NAVTTC and TEVTAs/equivalents will further enhance the knowledge management. With an objective to

improve the image of TVET among the masses, a well-designed information campaign, with active

involvement of the private sector/ BIAs will also be part of the project activities. TVET Policy dialogue

processes will be continued at the national and provincial level by conducting meetings/workshops. The

main purpose will be to consolidate TVET policy ownership among stakeholders (government, private,

12 21 trades x 4 years of implementation x 2 sessions per year x30 students per session= 5,040

50 trades x 3.5 years of implementation x 2 sessions per year x 30 students per session= 10,500. 10,500+ 5,040= 15,540= 15,500 13 50 teachers/trainers per trade. 71x50= 3,550 14 Teaching factory is a training approach where a commercial unit (through which services are provided to clients directly) is attached with training

institute itself. This arrangement provides opportunity for trainees to have world-of-work experience while they are still in the training

institute/programme. This is option for substituting OJT which sometimes could be difficult to manage.

13

donors, NGOs and even general public) and facilitation of its implementation. Inputs from such events will

be useful for future policy revision processes. Strengthening planning and management capacity of KP and

Baluchistan and support for FATA and GB for their organizational development and capacity building is

also deemed necessary.

For Expected Result 2: Implementation of component 2 will take place in Sindh and Baluchistan15

province. The approach the project will follow for the inclusion of Baluchistan in this component will be

confirmed during the inception phase.

The main aim of component 2 is training and employment of at least 18,000 people (15,000 from Sindh and

3,000 from Baluchistan) in occupations under major sectors of economy that have high economic growth. As

mentioned above, these sectors and sub sectors will be identified through a study carried out during the

inception phase. In order to conduct trainings smoothly, a consortium approach will be considered if

possible. In this case, a main training provider will, under its leadership, form a consortium with other

providers who could be from Karachi or other locations in Sindh. Major activities under this component are

as follows:

Identification of Consortium Leaders16 will be the first important task of the implementing partner, GIZ.

The consortium leaders will then identify/ select other TSPs, preferably from public sector. GIZ, through

provision of technical assistance, will assist the Consortium Leaders to prepare a detailed plan including the

schedule of activities.

Establishment of IMCs in at least 500 TVET institutes will be another major activity. It is expected that the

bulk of members in IMCs will be from BIAs. They will have a key role in the whole implementation

processes, including identification of trades, selection of trainees, minor changes in curricula (if so warranted

to enhance relevance and employability), and facilitation for OJT and employment.

Identification of trades for training will be the next key activity. Using the findings of the inception phase

survey as basis, a Rapid Market Appraisal (RMA) implemented through a quick survey among business and

industry/ various enterprises will help the Consortium Leaders/TSPs to identify the type of skills with

demands. As a next step, Employment Review Forum (ERF) meetings, participated by BIAs, individual

industrialists/employers, relevant workers and experts, will be organised where (Training and Employment

Service Providers) T&Esps will share the findings of RMA studies and finalise trades.

Selection of potential trainees (at least 30% women) will be done by a team comprised of Consortium

Leaders/TSPs, representatives of IMCs/ relevant BIAs/individual industrialists.

Teachers’ training, as planned in Component One, will be organized before the start of skills training,

which will, as far as possible, focus on conducting training based on CBT packages developed by the

project. Apart from technical training, this teacher´s training will include aspects of pedagogy, trainees’

assessment and methods and contents to deliver soft/life skills.

Skills training17 will be the next step in this sequence with a duration ranging between six months to one

year. Immediately after enrolment, baseline data of each individual will be uploaded in the database to help

measure results of training at various levels at a later stage. Methods of training could include one or

combination of: CVT, teaching factory, or On the-Job-Training (OJT) or any other effective methods that

involves workplace-based training. Other activities in this process include: instilling understanding and

15 In principle, GIZ will manage the provision of 3000 training in Baluchistan by identifying suitable training service providers on competitive basis.

In case the implementation of skills training in this model is found not to be possible during the inception phase, not possible, selected trainees

from Baluchistan will then be brought by the project to be trained in Sindh using same training institutes selected by GIZ for this province. 16 During the field visit in Karachi, the Formulation Mission found AmanTech and Hunar Foundation as very good TVET providers and confirmed

the findings of the identification phase. In addition, the mission also identified Memon Industrial and Technical Institute as another quality

training institute. These three institutes could indicatively be the consortium leaders. 17 In order to achieve the target of training 18000 within 4 years, an approach based on average 5 trades per institution and 30 trainees per batch, it

would need to run around 36 batches per year (18,0000 divided by 30 students per batch = 600 students. Dividing 600 by the average number of

trades (5) = 120. Dividing this by number of years (4) brings it to around 30 batches. Working on two sessions a year (6 months institute based

training) it would require around 15 institutes in all for training (30/2=15). Considering indicatively three Consortium Leaders will be contracted

by GIZ, there would be around 5 (including Lead Institute) institutions in each consortium to deliver the targets.

.

14

applying business development skills; establishing Placement, Career Counselling and Monitoring Units

(PCMU); assessing learning achievements; and provision of other wrap-around services (e.g. access to

finance, physical safety and other life skills). For trainees from Baluchistan, as far as possible, trainings will

be undertaken using CVT or business development model so that after completion of training, they could

start small business/micro enterprise.

Payment for training and employment services will be the following phase in the process, and employment

and income verification reports will form the basis for this purpose. Although upto the second instalment

payment is output based (25% as first pre-finance and 35% based on evidence that certain number of trainees

have appeared TTB tests), the third (15%) and final (25%) instalments will be paid only after verification of

employment and income (minimum 75% employment rate with minimum PKR 13,000/month). A period of

eight months after completion of training will be allowed for employment and verification of income. In

order to verify employment and income, the consortium leaders will maintain trainees’ database, including

baseline data. The training institutes will have to feed in data in the database on real-time basis. Using

verification questionnaire/tools, data will be collected for further analyses including sources such as day-

books and salary sheets. Since 100% checking may not be feasible both physically and financially, a

systematic sample checking shall be carried out using established techniques for sampling, data collection

and analysis.

2 Tracer studies will be conducted after 2 years gap to identify impact of training on graduates and their

families. The tracer studies will be outsourced by GIZ to ensure impartiality through a procurement contract.

The Terms of Reference will be designed in such a way to also include capacity building of the training

institutes so that they learn to use the method of tracer studies even after the completion of the project.

Involving Business and Industry and Their Associations

The crux of the implementation strategy of the project is effective engagement of private sector, Business

and Industry and their Associations in TVET. This does not mean their mere ceremonial participation but

real involvement and compulsory participation in decision making and leadership/ownership of the

processes. To achieve this in the public sector, lobbying for reconfiguration of boards of governors of

NAVTTC and TEVTAs to include at least co-chair and 50% members from BIAs is the proposed strategy.

Similarly at the institute level, Institution Management Committees (IMCs) with chair and bulk of

membership from BIAs has been and will continue to be advocated. Although private sector /NGO TVET

providers have their own management structures, for the sustainability of the initiatives like CVT and OJT, a

management structure involving BIAs is necessary. The technical assistance to be provided under

component 2 will devise detailed mechanisms for this. Such engagement would lead to trust building,

cooperation and synergies. The BIAs would facilitate identification of skills in demand, CVT and OJT for

effective training and in return would get better trained manpower for increased productivity and profit

margins resulting in long term cooperation.

4.3 Intervention Logic

In line with Pakistan Vision (2025), National Skills Strategy (2009) and National TVET Policy 2015, the

government has expressed determination to reform the TVET system. This context calls for effective

implementation of TVET Policy by enhancing Public Private Partnership (PPP), operationalizing NVQF,

implementation of CBT packages and institutionalizing teacher training. Use of ‘workplace-based training’

such as CVT, teaching-factory and OJT will help ensure training outcomes and help convert TSPs into

T&Esps. Operationalization of NVQF including RPL opportunities will facilitate educational progression

through domestically and internationally recognized certificates. Under Component 2, outcome-based

training will be provided by TVET providers in consortia with public sector institutions within the

framework of NVQF and CBT&A under the leadership/ownership of BIAs. Quality training in trades in

demand in major economic sectors through CBT approach and effective engagement of BIAs will enhance

employability of graduates. This will ultimately lead to increased productivity and overall economic growth

in the long run. The consortium approach will create an opportunity for a productive partnership between

private and public institutes, which will enhance the latter's capacity to deal with market forces.

15

Working under principles of strengthening the national human resource development system, all these

interventions are well inter-woven gearing towards establishment of a private sector led/owned Pakistan

TEVT system also making contribution to socio-economic growth of the country.

Moreover, through implementation of TVET III in Sindh and Baluchistan, both through components 1 and 2,

another objective of the project is to develop capacity of the government to be able to move towards sector

budget support for a possible subsequent EU support to the TVET reform in these provinces. To ensure this,

the following core elements will be developed and reinforced through TVET III in both provinces:

- Provincial sector policies and strategies, emerging from the recently launched national TVET policy, and

corresponding implementation action plans where priority activities are agreed.

- Provincial sector budgets and their medium term perspective, reflecting sector priorities and strategies

and defining comprehensively a policy based budgeting.

- Sector coordination framework, under the government's leadership, comprising government and non-

government as well as other development partners and donors.

- Provincial institutional setting and existing capacities linked to those roles and strategies defined in the

provincial policies.

- The systems of public finance management linked to implementation of provincial TVET policies that

ensure policy priorities have a chance to be reflected in budget allocations; promotes efficiency in public

spending and protects aggregate fiscal discipline.

- Transparency and oversight of the TVET provincial budgets, which means public availability of timely,

comprehensive and sound budgetary information.

EU Delegation will take a lead role to conduct policy dialogue on this with the provincial Governments.

5 IMPLEMENTATION

5.1 Financing agreement

In order to implement this action, it is foreseen to conclude a financing agreement with the partner country,

referred to in Article 184(2) (b) of Regulation (EU, Euratom) No 966/2012.

5.2 Indicative implementation period

The indicative operational implementation period of this action, during which the activities described in

section 4 will be carried out and the corresponding contracts and agreements implemented, is 60 months

from the date of entry into force of the financing agreement.

Extensions of the implementation period may be agreed by the Commission’s authorising officer responsible

by amending this decision and the relevant contracts and agreements; such amendments to this decision

constitute technical amendments in the sense of point (i) of Article 2(3)(c) of Regulation (EU) No 236/2014.

5.3 Implementation modalities

5.3.1 Grant: direct award "Support to the Technical and Vocational Education and Training

Sector in Pakistan (TVET III)" (direct management)

(a) Objectives of the grant, fields of intervention, priorities of the year and expected results

The two components of the project will be implemented through a grant contract with GIZ. For component

1, the specific objective of the grant is to support the Government in implementation of the National TVET

Policy with particular attention to TVET governance and enhance private sector leadership/ownership in the

system. Through its technical expertise, GIZ will support the Government in system development for

progressive implementation of NVQF through preparation of assessors and strengthening of assessment and

certification bodies; implementation of CBT packages and their further development. GIZ will also provide

technical expertise for supporting the Government's teacher training institutes to develop them into a whole

system through establishing ‘Centre of Excellence’ in teacher training. GIZ will also mobilize the

Government for enhancing BIAs engagement in governing bodies including NAVTTC, TEVTAs, IMCs and

16

SSCs. In addition, it will strengthen linkage among NSIS, Information Cell at TEVTAs and BIAs and will

establish a comprehensive knowledge management system.

After the successful implementation of the above actions, TVET graduates will possess certificates that will

be acceptable in the domestic and international markets indicating clear career path. Training will be based

on competencies demanded in the market and teachers will have capacity to deliver training on CBTs. More

importantly, BIAs will have significant role in the TVET system.

For component 2, the specific objective is to provide training and employment to people in sectors that have

high economic growth and employment potential. This implementation entails management of sub-granted

contracts with training institutes and provision of technical assistance for their capacity enhancement, closer

engagement with industry/employers and effective training delivery. Grant contracts18 will be awarded to

selected training institutes. Selection of lead training institutes by GIZ will be done on the basis of a

negotiated procedure with those pre-identified institutes (during formulation phase) that have the best

potential to implement the action. GIZ will be responsible for the regular monitoring and management of

these grant contracts. In addition, GIZ will also provide some technical assistance to these institutes to build

their technical and management capacity in areas such as: working in consortium approach including public

TVET institutes; using CBT packages; using different training models in training; competency based internal

assessment; NVQF certification; outcome-based payment and employment and income verification before

payment; and tracer studies). One of the key findings of the formulation phase was that these training

institutes, despite having state of the art training facilities, are weak in engaging BIAs and linkage

development. Few were found hesitant to assure OJT. Therefore, it is important to provide them some

technical assistance to enhance their capacity.

As a result of component 2, employment of TVET graduates will be ensured through provision of quality

training practical experience using OJT/ Teaching factory/ CVT models in training. Capacity of TVET

institutes will be enhanced to ensure closer and formal engagement of the industry/ employers throughout

the training cycle.

(b) Justification of a direct grant

Under the responsibility of the Commission’s authorising officer responsible, the grant may be awarded

without a call for proposals to GIZ. Under the responsibility of the Commission's authorising officer

responsible, the recourse to an award of a grant without a call for proposals is justified because of the

beneficiary's technical competence and specialisation in accordance with Article 190 (f) of the Rules of

Application . The activities of TVET III are largely built on the achievements of TVET I and II (TVET

policy implementation, NVQF operationalization and CBT packages development and implementation,

teacher training, private sector engagement in TVET governance including mechanisms such as IMC and

SSCs, capacity enhancement of TEVTAs/ Directorates). Successful implementation of these activities

requires technical expertise in TVET, understanding of existing mechanisms of engagement of private

sector, deeper knowledge of country’s TVET governance system and socio-cultural context. It also requires

very good relationship with government, private sector and other stakeholders such as donors and media.

During of implementing of TVET I and II for the past five years GIZ has gained substantial experience in all

these dimensions and established itself in advantageous position. Furthermore, GIZ has the necessary

infrastructure in place. It has already built significant professional relationship with the government and

private sector stakeholders/NGOs.

(c) Eligibility conditions

NA

(d) Essential selection and award criteria

The essential selection criteria are the financial and operational capacity of GIZ. The essential award criteria

are relevance of the proposed action to the objectives of the call; design, effectiveness, feasibility,

sustainability and cost-effectiveness of the action.

(e) Maximum rate of co-financing

The maximum possible rate of co-financing for this grant is 100%.

18 The purpose of the grant component of the action is a financial support to third parties.

17

In accordance with Articles 192 of Regulation (EU, Euratom) No 966/2012, if full funding is essential for

the action to be carried out, the maximum possible rate of co-financing may be increased up to 100 %. The

essentiality of full funding will be justified by the Commission’s authorising officer responsible in the award

decision, in respect of the principles of equal treatment and sound financial management.

(f) Indicative trimester to conclude the grant agreement

4th trimester of 2016.

5.4 Scope of geographical eligibility for procurement and grants

The geographical eligibility in terms of place of establishment for participating in procurement and grant

award procedures and in terms of origin of supplies purchased as established in the basic act and set out in

the relevant contractual documents shall apply.

The Commission’s authorising officer responsible may extend the geographical eligibility in accordance

with Article 9(2) (b) of Regulation (EU) No 236/2014 on the basis of urgency or of unavailability of

products and services in the markets of the countries concerned, or other duly substantiated cases where the

eligibility rules would make the realisation of this action impossible or exceedingly difficult.

5.5 Indicative budget

EU

contribution

(amount in

EUR)

Indicative Third

party contribution, in

currency identified

5.3.1 Grant: direct award "Support to the Technical and

Vocational Education and Training Sector in Pakistan (TVET

III)"

43 500 000

EUR 4 000 000

5.7 Performance monitoring and reporting 500 000 0

5.10 Communications and visibility 250 000 0

5.8 Evaluation (mid-term and final) and 5.9 audit 300 000 0

Contingencies 450 000 0

Total 45 000 000 EUR 4 000 000

5.6 Organisational set-up and responsibilities

Under the TVET III, the TVET system will be supported to play an enhanced coordinating role at the federal

level and deliver TVET services at the provincial level. It will be implemented on a coordinated approach in

that a Project Steering Committee (PSC) will be formed with representation from the NAVTTC, TEVTAs

and private sector (Business and Industry). The main role of PSC would be to provide strategic guidance

leading to reviewing progress of programme and recommending adjustments to future implementation

accordingly. In addition, it will also contribute towards improved coordination among all TVET

stakeholders. The EUD will be co-chair of the PSC along with a business and industry representative.

Besides, the EUD will also take the lead in carrying out the related policy dialogue with concerned

authorities to facilitate smooth functioning of the project, to foster the appropriate sustainability and

ownership by the Government of TVET III and, above all, to accompany the required TVET reforms in the

country. The membership of the PSC is indicatively suggested as following:

Chair: Secretary of the Ministry of Federal Education and Professional Training

Co-Chair 1: EU Delegation

Co-Chair 2: Prominent and relevant private sector business representative, well aware of and interested in

TVET and EUD; Observers: GIZ

Other Ministries/organizations will include:

Representative federal Ministry of Industries (1)

Executive Director NAVTTC or his representative (1)

Chairperson/Managing Directors of provincial/ Regional TEVTAs or their representatives (5)

Directors of Technical Education GB and FATA (2)

18

Representatives of bodies responsible for assessment/Certification (3)

Business and Industry and their Associations (BIAs) representative (12) – these stakeholder representatives

would be drawn from key chambers and federations/associations:

Chairperson FPCCI, Chairperson of Employers’ Federation, Chairpersons of major Business and Industry

Associations (BIAs) (7);

Representatives of Sector Skills Councils (3); and

Renowned industrialists from major economic sectors (2).

Donor country representatives: as observers.

For Project Management The main project office with core GIZ staff will be located in Islamabad. There

will be two distinct management structures for the two components at the operational level, which will need

to coordinate very closely. Besides, all the staff/experts involved in activities relating to NAVTTC (such as

operationalization of NVQF, development of CBT packages) will be based in NAVTTC and shall work to

support them in the implementation of project. Similarly, staff concerned with rolling out of CBT&A

packages and training of teachers shall be based in TEVTAs/Directorates of Technical Education and will

work to support and strengthen them for the project implementation. All the TEVTA coordinators and

officers under component one will be located in TEVTAs/Directorates. Field technical officers under

component two will also be located in Sindh TEVTA. With each key expert of GIZ based in TEVTAs/

Directorates or NAVTTC, one or more counterparts will have to be assigned from the Government side. This

is important because TVET I and TVET II have worked extensively to build the capacity of the Government

(TEVTA/ Directorates and NAVTTC) in various activities such as CBT package development and

implementation, NVQF, skills information etc. Therefore TVET III should engage extensively with these

trained human resources to further enhance government’s capacity and ensure sustainability.

5.7 Performance monitoring and reporting

The day-to-day technical and financial monitoring of the implementation of TVET III will be a continuous

process and part of the responsibilities of Delegated Body. To this aim, the implementing partner shall

establish a permanent internal, technical and financial monitoring system for the action and elaborate regular

progress reports (not less than annual) and final reports. Every report shall provide an accurate account of

implementation of the action, difficulties encountered, changes introduced, as well as the degree of

achievement of its results (outputs and outcomes) as measured by corresponding indicators, using as

reference the logframe matrix. The report shall be laid out in such a way as to allow monitoring of the means

envisaged and employed and of the budget details for the action. The final report, narrative and financial,

will cover the entire period of the action implementation.

The Commission may undertake additional project monitoring visits both through its own staff and through

independent consultants recruited directly by the Commission for independent monitoring reviews (or

recruited by the responsible agent contracted by the Commission for implementing such reviews).

The EU Delegation will carry out regular external independent monitoring of the project through a service

contract to be launched in first trimester of 2017.

5.8 Evaluations

Having regard to the nature of the action, a mid-term and a final evaluation will be carried out for this action

or its components via independent consultants contracted by the Commission. A mid-term evaluation will be

carried out for learning purposes, in particular with respect to future planning and any further phase of the

action. A final evaluation will be carried out for accountability and learning purposes at various levels

(including for policy revision) taking into account in particular the fact that the project has introduced new

approaches such as RMA/ERF, modular assessment, workplace based training, employment and income

verification, outcome-based payment.

The Commission shall inform the implementing partner at least 3 months in advance of the dates foreseen

for the evaluation missions. The implementing partner shall collaborate efficiently and effectively with the

evaluation experts, and inter alia provide them with all necessary information and documentation, as well as

access to the project premises and activities.

19

The evaluation reports shall be shared with the partner country and other key stakeholders. The

implementing partner and the Commission shall analyse the conclusions and recommendations of the

evaluations and, where appropriate, in agreement with the partner country, jointly decide on the follow-up

actions to be taken and any adjustments necessary, including, if indicated, the reorientation of the project.

Indicatively, two contracts for evaluation services shall be concluded under a framework contract in 1st

trimester 2019 (Mid- term evaluation) and 2nd trimester 2021 (Final evaluation).

5.9 Audit

Without prejudice to the obligations applicable to contracts concluded for the implementation of this action,

the Commission may, on the basis of a risk assessment, contract independent audits or expenditure

verification assignments for one or several contracts or agreements. Indicatively, one contract for audit

services shall be concluded under a framework contract in 2nd trimester 2021.

5.10 Communication and visibility

Communication and visibility of the EU is a legal obligation for all external actions funded by the EU. This

action shall contain communication and visibility measures which shall be based on a specific

Communication and Visibility Plan of the Action, to be elaborated at the start of implementation and

supported with the budget indicated in section 5.5 above.

In terms of legal obligations on communication and visibility, the measures shall be implemented by the

Commission, the partner country, contractors, grant beneficiaries and/or entrusted entities. Appropriate

contractual obligations shall be included in, respectively, the financing agreement, procurement and grant

contracts, and delegation agreements. The Communication and Visibility Manual for European Union

External Action shall be used to establish the Communication and Visibility Plan of the Action and the

appropriate contractual obligations.

In addition, services will also be procured for communication and visibility through a framework contract (to

be launched in second trimester of 2017).

6. PRECONDITION

Staff at NAVTTC/TEVTAs/Directorate involved in the implementation of action must remain in the

position at least for 3 years. To ensure this, a covenant could be included in the agreement with the

Government counterparts that: i) they will make concerted efforts to replace staff working on deputation/

transfer basis with directly recruited staff, at least on technical positions, within 3 years; ii) any person

posted on a non-technical post (involved in implementation of TVET-III) through deputation or on

transfer will stay in position for at least 3 years. Lobbying/follow up with the NAVTTC/TEVTAs

management at the highest level by EUD/GIZ for implementation of these provisions in letter and spirit

will be required.

The staff benefiting from training for capacity enhancement must remain in position at least for 3 years

after such trainings. The nominating organization will ensure in writing to the implementing agency that

any staff nominated for training for capacity enhancement shall stay in position for at least 3 years after

training.

In order to increase likelihoods for institutionalising, scaling up of tested TVET approaches, sustaining

results and capacity building, NAVTTC and TEVTAs / Directorates will nominate a Project Director to

coordinate with / GIZ staff based in their offices. In addition to this, TEVTA/ Directorates will also

provide staff to work closely with GIZ key experts for the implementation of specific project activities

(as explained above under section 5.7)

Government to provide support (in kind) through making space and utilities available for the GIZ staff

based in NAVTTC/TEVTAs/Directorates of Technical Education.

20

List of Acronyms and Abbreviations

AJK Azad Jammu and Kashmir

BIA Business and Industries and their Associations

BTE Board of Technical Education

CBT Competency Based Training

CBT&A Competency Based Training and Assessment

COE Centres of Excellence

CSO Civil Society Organisation

CVT Cooperative Vocational Training

DFID Department for International Development

FATA Federally Administered Tribal Areas

ERF Employment Review Forum

GB Gilgit Baltistan

GDP Gross Domestic Product

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

GoP Government of Punjab

GPATI German Pakistan Training Initiative

IAG Industrial Advisory Group

ICT Information and Communications Technology

ILO International Labour Organisation

IMC Institute Management Committee

JICA Japan International Cooperation Agency

KP Khyber Pakhtunkhwa

M&E Monitoring and Evaluation

MIP Multi-annual Indicative Programme

NAVTTC National Vocational and Technical Training Commission

NISTE National Institute of Science and Technical Education

NSIS National Skills Information System

NVQ&A National Vocational Qualifications and Assessment

NVQF National Vocational Qualifications Framework

NGO Non-Governmental Organisation

NSS National Skills Strategy

OJT On-Job Training

PCMU Placement, Career Counselling and Monitoring Unit

PFM Public Finance Management

PPP Public Private Partnership

PSDF Punjab Skill Development Fund

RMA Rapid Market Appraisal

RPL Recognition of Prior Learning

SSC Sector Skills Council

S-TEVTA Sindh Technical Education and Vocational Training Authority

STI Staff Training Institute

TA Technical Assistance

TEVTA Technical Education and Vocational Training Authority

T&Esp Training and Employment Service Provider

TSP Training Service Provider

TTB Trade Testing Board

TTTC Technical Teachers Training Centre

TVET Technical and Vocational Education and Training

UK United Kingdom

UN United Nations

USAID United States Agency for International Development

VTI Vocational Training Institute

21

ANNEX: INDICATIVE LOGFRAME MATRIX: SUPPORT TO THE TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING

(TVET) SECTOR IN PAKISTAN ( TVET III)

Intervention logic Indicators Baselines

(incl. reference year)

Targets

(incl. reference year)

Sources and

means of

verification

Assumptions

O

ver

all

ob

ject

ive

To contribute

towards socio-

economic growth

of Pakistan through

development of

human resources

that enable people

to engage in

productive

employment

GDP growth rate

Employment/

Unemployment Rate

Proportion of trained/skilled

persons in labour force

Growth Rate 4.14% (2015)

Unemployment Rate 6%(2015)

Proportion of technicians/

associate professionals in employed

labour force 5.94% (LFS 2012-13)

Growth Rate 5.2% (2020)

Unemployment Rate 5.25%(2020)

Proportion of trained/skilled persons

in employed labour force increased by

5% (2020)

Economic

Survey

Labour Force

Survey

HDR

Security

situation

improves

Economic

growth rate

improves as

envisaged.

Changes in socio-economic

livelihoods of graduates

Baseline to be established during

project implementation

Livelihoods (education/ health, food &

clothing habit & physical assets etc) of

graduates &families improved

Impact studies

Tracer study

reports

Sp

ecif

ic o

bje

ctiv

e(s)

:

Ou

tco

me(

s)

To improve

governance and

private sector

participation in

the TVET sector

to enhance access

to quality skills

development that

meets the

demands of the

labour market.

TVET governance

improvement measured

through:

Private sector engagement

in decision making bodies

(NAVTTC/TEVTAs/

Institute Management

Committees (IMCs) with

more than 50% members

from Business and

Industry Associations

(BIAs)

National Vocational

Qualification (NVQ)

system in operation with

clear certification and

equivalency functions

Training institutes offering

Competency Based

Training and Assessment

(CBT&A) based training

and trained teachers

Participation of private sector in

decision making bodies is still low. It

is less than 10%; Sector Skill

Councils (SSCs) not constituted yet;

(IMCs) functional in limited number

of institutes.

NVQF is not operational yet. It is still

in development stage.

Training institutes largely catering

traditional courses through teachers

without CBT training

Institutes’ accreditation has not been

started yet although system is in place

At least 50% of decision making bodies

(TEVTAs including NAVTTC) have <

50% board members from BIAs.

At least 3 SSCs are functional

At least 500 TVET institutions have

IMCs with more than 50% BIA

representatives

NVQF functional with at least, 33500

youths tested and certified using new

NVQF and 15,000 equivalencies issued

or recognition of RPL issued;

4 Centres of excellence established and

offer teacher training on CBT & other

professional courses

20 Chief Master Trainers and 80 Master

Trainers

200 TVET institutes will be accredited

Progress/

Review

Reports.

TEVTA

database

NAVTTC/

TEVTAs/

equivalents’

Meeting

minutes

Annual report\

Reports of

Assessment

and

Certification

bodies

Government

commitment

continued

for TVET

Policy

implementati

on

particularly

for

increasing

BIAs roles

in decision

making

bodies in

TVET

system

Private

sector

(BIAs)

continue

commitment

and engage

22

Number/share of people

with a job placement/ self-

employment following a

TVET course. *

Monthly income of training

graduates

Employment rate of relatively good

institutes is around 40% to 50%

Baseline on income to be established

during inception phase

At least 75% of the graduates (including

at least 10% MEs) have employment

Income of PR 13,000/ month after

completion of training (2 months’ grace

period)

Employment

and Income

verification

report

productively

Intervention logic Indicators Baselines

(incl. reference year) Targets

(incl. reference year)

Sources and

means of

verification

Ou

tpu

ts Expected Result

1: Equitable access

to quality TVET

and enhanced

employability of

TVET graduates

through

implementation of

relevant provisions

of the National

TVET Policy and

National Skills

Strategy.

No. of sectors for which

NVQF with the TVET

pathways put into practice

A 5-level VQF is in place

Sectors to be identified and complete

pathways to be established

Testing and certification has not

been started yet

The VQF ladders will be completed

VQF system functional with complete

pathways for identified sectors

Annual reports

Progress reports

Number of competency

standards/ curricula

developed and

implemented*.

So far 60 competency standards are

developed

29 CBT&A packages implemented

(by 2016)

200 certified assessors are prepared

At least 60 new CBT packages are

developed in selected occupations in

demand.

At least 21 CBT&A packages (from

those developed during Phase II) are

implemented by middle of the project

Another 50 CBT packages (out of 60

targeted in TVET III), implemented by

end of project

At least 1,500 assessors prepared

CBT packages

Progress

Report

No. of teachers and

graduates trained using CBT

packages

200 teachers so far trained (but there

is need for proper technical training)

20,000 students trained

3550 teachers trained in CBT & A

methodologies

15,500 graduates trained during project

using CBT

15 staff from NAVTTC and

TEVTAs/directorates trained on CBT

management

Training

completion

report

Progress

reports

Ou

tpu

ts Expected Result

2: Trainings

designed and

delivered with

increased

collaboration and

private sector

No. of BIAs participating/

taking lead in training

process (design stage to

employment)

This practice almost non- existent At least BIAs in 3 sectors play effective

role in training process and in

employment placement.

Project

progress/

Review

Reports.

No. of trades identified

using RMA/ERF

Absence of practice that identifies

trades for training following proper

market survey

All trades identified through RMA/ERF

processes

RMA/ERF

Reports

23

involvement,

leading to greater

employability.

Number of people trained

using approaches suggested

in the project document

CVT is practiced in limited no.

Teaching factory infancy stage

OJT is practiced by limited institutes

18,000 (including 3000 from

Baluchistan) students trained through

CBT&A methodology (30% women)

For world-of-work exposure, at least one

of the three approaches(CVT, OJT and

Teaching Factory) will be used and

institutionalized

Training report

Progress

Report

*- Indicators aligned with MIP 2014-20.