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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 ☐ ☐ ☐
2
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.
3
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
4
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
5
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.
6
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.
7
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.
8
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.
9
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
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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.