The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) REPORT NO.: RES34858 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ACCESSING OVERSEAS EMPLOYMENT OPPORTUNITIES FOR MOROCCAN YOUTH APPROVED ON MARCH 19, 2015 TO AGENCE NATIONALE DE PROMOTION DE L’EMPLOI ET DES COMPÉTENCES (ANAPEC) SOCIAL PROTECTION & LABOR MIDDLE EAST AND NORTH AFRICA Regional Vice President: Ferid Belhaj Country Director: Marie Francoise Marie-Nelly Senior Global Practice Director: Michal J. Rutkowski Practice Manager/Manager: Hana Brixi Task Team Leader: Manjula M. Luthria The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) ABBREVIATIONS AND ACRONYMS AF Additional Financing ANAPEC Agence nationale de Promotion de l’Emploi et des Compétences ASA Advisory Services & Analytics CoP Community of Practice MENA Middle East and North Africa GIZ Deutsche Gesellschaft fur International Zusammenarbeit PDO Project Development Objective The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P150064 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 19-Mar-2015 28-Feb-2019 Organizations Borrower Responsible Agency Agence Nationale de Promotion de l’Emploi et des Agence Nationale de Promotion de l’Emploi et des Compétences (ANAPEC) Compétences (ANAPEC) Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 1.50 Total Financing 0.00 Financing Gap 0.00 DETAILS -NewFin3 The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Project Development Objective (PDO) Original PDO The project development objective (PDO) is to strengthen institutional capacity to pilot the reform of international labor intermediation services in Morocco and better prepare the Moroccan workforce for greater integration with international labor markets. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A0100 19-Mar-2015 14-Apr-2015 14-Apr-2015 28-Feb-2019 1.55 1.54 .01 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Summary and Background 1. The Morocco Accessing Overseas Employment Opportunities project was approved on March 19, 2015 and became effective on April 14, 2015. The total amount of US$1.75 million (including $0.2 million for Bank execution) was provided by the MENA (Middle East and North Africa) Transition Fund to assist in financing the Project. The current closing date of the Project is February 28, 2019. 2. In a letter dated September 19, 2018 the Recipient proposed to extend the project closing date by 30 months and allocate additional funds (US$1.5 million) to implement the activities of the second phase of the pilot. Following the extension of the deadline for submission of the proposals to the MENA Transition Fund to October 15, 2018, a four-month extension request of the current closing date to February 28, 2019 was submitted to the Transition Fund for approval, on October 5, 2018 to allow the timely submission of the Additional Financing (AF) proposal to the Transition Fund and the internal processing and approval of the AF. This first four-month extension from October 31, 2018 to February 28, 2019 was approved by the MENA transition Fund on October 23, 2018 and by the Country Director on October 31, 2018. The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) 3. A second extension of the project closing date by an additional 26 months, to April 30, 2021, is also proposed as part of this restructuring in addition to allocate the additional funds, as originally requested by ANAPEC. The MENA Steering Committee approved the additional Grant in the amount of US$1.5 million and the extension of the closing date on December 10, 2018. 4. The Project Development Objective (PDO) is to strengthen institutional capacity to pilot the reform of international labor intermediation services in Morocco and better prepare the Moroccans for greater integration with international labor markets. The original project includes the following components with the current allocated amounts: (i). Component 1: Institutional capacity building for the selection and preparation of overseas employment candidates (US$1.3 million). (ii). Component 2: Developing sustainable partnership between public and private actors within and across borders for job placement, and Project implementation support (US$0.25 million). 5. While the original Project Appraisal Document incorrectly included Component 3 Project Evaluation and Knowledge Sharing (Bank Executed), in the amount of US$0.2 million, the activities of this component have been executed under a separate Advisory Services & Analytics task (ASA, P170380, funded by the MENA Transition Fund). Project Status 6. The activities of the first phase were successfully implemented towards achieving the PDO and exceeded expectations. Based on the latest implementation outcome measures, progress towards achievement of the PDO was rated satisfactory. 7. Overall, the project succeeded in: (i) catalyzing positive change in evidencing that labor mobility can potentially contribute to addressing youth employment in Morocco. (ii) reducing behavioral and logistical barriers to overseas recruitments and from the Maghreb, in particular. (iii) enhancing capacity for international labor market intermediation in Morocco. (iv) building confidence in legal pathways for mobility and developing a good practice mobility model for other sectors and countries. 8. The project has completed the activities of the first phase and showed excellent results in achieving the PDO. Current achievements per components are highlighted below: (i). Under component 1: All candidates are placed in employment and attending training in assigned vocational training institutions. They have reported high overall satisfaction with the experience of training for work in the German labor market and are learning hard and soft skills required for employability, thus increasing their chances for employment in the European market or in Morocco and in a sector where global demand for workers is growing. ANAPEC has gained a sound understanding of the intermediation processes required for international labor market placements into an Organization for Economic Co-operation and Development country and in a competitive and fast-growing sector such as tourism. Important dialogue and institutional linkages with their counterparts in Germany have been established. Confidence in conducting selection and preparation has grown within ANAPEC and missions to Germany have been successful in exposing ANAPEC´s officials to the processes and criteria relevant to the German labor market and immigration. Employers in the tourism and hospitality sector and their representative association (DEHOGA in Germany) have come to value this program and its transformative effect on starting to change the prevailing narrative and perceptions of foreign workers amongst the hiring employers but also in wider communities. None of the employers had invited Moroccans into the apprenticeship programs The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) previously, yet today an overwhelming majority have confirmed their commitment to continuing and expanding such an engagement to deliver a win-win outcome for both countries. (ii). Under component 2: Training institutions in Germany have also been sensitized to the demands of delivering training to a rapidly globalizing labor force in the sector. A hands-on realization of the support services needed to help integration proceed smoothly has been gathered, employers have become aware of the need to give more attention to the social and psychological aspects of mobility through assignment of mentors and support groups. The Deutsche Gesellschaft fur International Zusammenarbeit (GIZ), ANAPEC and the Moroccan Chamber of Commerce have begun building a network between the main German professional associations (German Chambers of Commerce) and ANAPEC and have started exploring other possibilities of matching candidates with jobs in Germany in other professional sectors with a current high demand such as IT, construction, and health. B. Rationale for the Restructuring 9. The AF will allow ANAPEC to build on the lessons learned during the implementation of the first phase, solidify the current implementation record and replicate the successful experience with other employers, in the same tourism and hospitality sector and in an additional sector. Given the national context of labor surplus and high youth unemployment and the international context of tighter immigration regimes, despite ongoing labor shortages, it has become imperative to continue to nurture and build meaningful bridges between the countries which face labor shortages and those which face labor surpluses, to showcase that such mobility can indeed be a win-win for both countries. The first phase of this project made an initial headway in starting to create trust and capacity on both sides to navigate each other’s systems on labor market intermediation. The experience has been positive. There are too few examples of good bilateral cooperation in managing and supporting voluntary and economic labor mobility across international borders. A continuation of the approach of the first phase, will help widen the circle of trust, deepen the know-how on both sides and help shift the narrative towards a stronger and positive one in favor of describing Maghrebi workers as well prepared, productive new entrants into a global workforce. 10. The activities to be financed by the additional financing will mainly focus on the following: (i) identifying a new cohort of Moroccan candidates professional apprenticeship in vocational training in the tourism and hospitality sector (focusing on women job seekers) and an additional new sector, to duplicate the experience by relying on the established institutional linkages during the first phase and a tested implementation model; and (ii) strengthening mechanisms for greater integration and preparation of selected candidates for apprenticeship. 11. Financial and fiduciary requirements. The last Audit and Intermediate Financial Reports were submitted to the Bank on October 2, 2018, were reviewed and found acceptable by the Bank. II. DESCRIPTION OF PROPOSED CHANGES A. Summary of proposed changes 12. The proposed changes under this restructuring are as follows: (i). Extend the current Grant Closing date a second time by 26 months, from February 28, 2019 to April 30, 2021. (ii). Revise and change the project results framework to introduce a new indicator to measure the outcome of the linkages to be established between the German and the Moroccan vocational training institutions, remove the The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) three indicators1 related to the component 3 activities (these indicators will continue to be monitored under a separate ASA, P1703922, funded by the MENA Transition Fund, and align end target dates with the proposed project closing date, and update several targets. (iii). Revise the disbursement estimates for the 26-month implementation period. (iv). Revise the implementation schedule for the activities of the second phase of the project as presented below. Component 1: Institutional Capacity Building for the Selection and Preparation of Overseas Employment Candidates (US$1.3 million) will finance: 13. Migration experts, consultant and firm services, travel and workshop to support institutional capacity building activities for the pre-selection and preparation of approximately 100 overseas candidates for a professional apprenticeship in vocational training sectors in Germany. The first cohort comprising entirely of women will be identified and selected in the tourism and hospitality sector, while the remaining candidates will be selected from another sector. In addition, comprehensive awareness and training about integration in Germany and cultural differences, work ethic, punctuality, attitudes and behaviors will be provided. Sub-component 1-1: Pre-selection of candidates ($US0.4 million) (i). Consultant services and workshops to provide technical assistance and capacity building to ANAPEC to strengthen the results achieved and ensuring their durability, by reinforcing the international placement process and training its counselors. (ii). Strengthening the professional apprenticeship program by improving the establishing guidelines and procedures for the new sector of choice to be used as a guide for potential placement operations for Moroccan workers in other sectors in Germany in the future. (iii). Designing a relevant communication strategy for the targeted Moroccan audience in close collaboration with ANAPEC, GIZ and the World Bank to avoid the risks related to the Moroccan employment context. (iv). Providing support through technical assistance to ANAPEC to assist ANAPEC in preparing the pool of candidates (shortlisting, screening and pre-selection) with the adequate qualities for the interview stage and later at the workplace, in addition to organizing pre-selection interviews in Morocco. (v). Stakeholder mapping and consultations within Morocco and selected geographical areas in Germany to confirm support of public and private actors, as well as local communities in the destination. Sub-component 1-2: Pre-departure training for the Beneficiaries ($US0.6 million) (i). Consultant and firm services, training modules and seminars to support ANAPEC in the preparation of the pre- selected candidates for their stay and employment abroad. (ii). Support to the preparation of candidates through the provision of intensive language and intercultural training course tailored to the specificities of the sector of choice and the tourism and hospitality sector, and work and daily life abroad, as well as the provision of stipend to cover the apprentices’ expenses during the first months in Germany. (iii). Developing an expanded module on expectations management in close coordination with the German stakeholders and potentially with the diaspora and/or return migrants. 1 (i) South-South workshops with other MENA origin countries and Deauville partners, at least one of which is held in Morocco, to share experience on international labor intermediation and related pilot experience; (ii) Firms surveyed to measure level of satisfaction with candidates and perceptions of Moroccan workers; and (iii) Communication strategy and material designed. 2 Subsequent task of P170380. The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Sub-component 1-3: Assistance upon departure and integration support ($US0.3 million) (i). Placement services such as contract finalization, visa fees, work permit processing, travel costs and any other travel-related expenses upon departure for the selected candidates, as well as consultant services, workshops and travel at destination to support the integration of the candidates in their hosting companies throughout the program. (ii). Support to the candidates in administrative, legal and logistical issues emerging throughout the migration cycle. Component 2: Developing Sustainable Partnerships between Public and Private Actors within and Across Borders for Job Placement and Project Implementation (US$0.2 million) will finance: 14. Consultant services and travel to provide technical assistance, implementation support, capacity building on the institutional partnership that has been established between ANAPEC and GIZ during the phase. Specifically, this component will include: (i). Technical assistance to support ANAPEC’s decision makers to acquire a detailed understanding of the legal framework and administrative schemes in place in Germany for the admission of foreign workers at different skill levels pertaining to the new sector in the second phase. (ii). Consultant services, travel and workshops to support ANAPEC to enhance and finalize the placement strategy related to the German market based on recent and detailed information on growth prospects and labor needs in selected key sectors of the German economy and the relevant legal administrative schemes. (iii). Provision of technical assistance to organize target consultations with employers’ federations and with other relevant private and public players in Germany, identified based on the sectoral and geographical analysis conducted. (iv). Provision of technical assistance to facilitate linkages between vocational training institutions in Morocco and Germany, concerning the two professional sectors, with the objective of increasing the quality of the training in Morocco to meet the standards of the global labor market. (v). Provision of technical assistance to ANAPEC for project management related to the implementation of components 1 and 2 activities. 15. In addition to components 1 and 2, the Project Evaluation and Knowledge Sharing activities will continue to be implemented by the Bank as a separate technical assistance/advisory activity (P1703923 , funded by the MENA Transition Fund) to capitalize on the knowledge acquired by ANAPEC to strengthen its intentional expertise and create new synergies to sustain the new model of good practice to be scaled up. The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Additional Financing Proposed ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Number of Beneficiaries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Value 0.00 105.00 212.00 Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Morocco, through ANAPEC, has established stronger pre-selection procedures and pre-departure training modules for candidates seeking overseas employment Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 A sustainable public-private partnership between ANAPEC, GIZ, and the German employers’ representatives is established and functioning in practice to scale up and replicate the pilot initiative Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Percentage of German employers participating in the pilot and willing to hire again from Morocco Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 91.00 Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 A regional model of good practice is developed and shared through the World Bank and other networks Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Cooperation framework between vocational training institutes and schools in both countries identified and facilitated for the two professionals sectors Unit of Measure: Yes/No Indicator Type: Custom The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Baseline Actual (Current) End Target Action Value No No Yes New Date 15-Oct-2018 15-Oct-2018 30-Apr-2021 Intermediate Indicators IO_IND_TABLE Pre-selection manual which incorporates feedback from project stakeholders is developed and aligned with the established selection principles and international good practice Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value Yes Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Candidate pre-selection completed in line with good practice and led jointly by private and public sector stakeholders from destination countries Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Pre-selection interviews held in Morocco, led by ANAPEC and destination country interviewers Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Pre-departure and orientation training, including language and intercultural training, tailored to the industry and specifities of work and daily life at the destination, designed and implemented Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Module on expectation management, incorporating input from destination country stakeholders and return immigrants or diaspora, designed by ANAPEC and its partner agencies delivered. Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Apprenticeship participants and firms reporting participation in integration activities Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Percent of participants who report being adequately equipped for their apprenticeship Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 75.00 83.00 Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Placement strategy for ANAPEC/MTIP based on growth prospects & labor needs in key German sectors, legal frameworks, administrative arrangements for admission of foreign workers at various skill levels Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 Consultations held with employers and other relevant public and private players in Germany based on the sectoral analysis to be conducted for the placement strategy beyond the pilot Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Date 14-Apr-2015 27-Sep-2017 30-Apr-2021 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Institutional Capacity Building Institutional capacity building for for the Selection and the selection and preparation of 1.30 Revised 2.60 Preparation of Overseas overseas employment candidates Employment Candidates Developing Sustainable Developing sustainable Partnerships between Public partnerships between public and and Private Actors within and private actors within and across 0.25 Revised 0.45 Across Borders for Job borders for job placement and Placement and Project project implementation support Implementation TOTAL 1.55 3.05 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A0100 Effective 31-Oct-2018 28-Feb-2019 30-Apr-2021 30-Aug-2021 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE ADDITIONAL FINANCING Source Currency Amount USD Equivalent MENA Transition Fund - IBRD as USD 1,500,000.00 1,500,000.00 Implementing Agency(MNIS) Existing Net Commitment USD Amount 1,550,000.00 Total 3,050,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes The World Bank Accessing Overseas Employment Opportunities for Moroccan Youth (P150064) Year Current Proposed 2015 0.00 0.00 2016 0.00 300,144.07 2017 0.00 298,267.99 2018 0.00 943,226.77 2019 0.00 452,508.35 2020 0.00 754,180.59 2021 0.00 301,672.23 Note to Task Teams: End of system generated content, document is editable from here.