The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 21-May-2019 | Report No: PIDISDSA24795 Apr 12, 2019 Page 1 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Chad P164297 CHAD Skills Development for Youth Employability Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA 15-May-2019 20-Jun-2019 Education Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Republic of Chad Ministere de l'Education Nationale et de la Promotion Civique, Ministere de la Formation Professionnelle et des Petits Metiers, Ministere de l'Economie et de la Planificatin du Developpement Proposed Development Objective(s) The project development objective (PDO) is to (i) improve access to skills training and labor market outcomes for project beneficiaries; and (ii) strengthen the technical and vocational education and training (TVET) system in Chad Components Expanding Access to Skills through Improved Technical and Vocational Education Employment Support for Youth and Improved Entrepreneurship Opportunities Improving TVET System Governance and Institutional Capacity Building Project Management and Monitoring and Evaluation PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 50.00 Total Financing 50.00 of which IBRD/IDA 50.00 Financing Gap 0.00 Apr 12, 2019 Page 2 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 50.00 IDA Grant 50.00 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. Chad is sparsely populated, with only 13 million people, and vast in size (being more than 1 million km²). It is a low-income country, with a gross domestic product (GDP) per capita of about US$823 in 2018, and, has among the lowest human development indicators in the world. The country is divided into 23 regions located in three main geographical zones: a desert zone in the north, an arid Sahelian belt in the center, and a more fertile Sudanese savanna zone in the south. It faces adverse climate conditions including prolonged droughts in some areas and yearly flows in others, as well as wind erosion, and desertification, leading to recurrent food crises, as well as population displacement. Combined with security risks due to political instability and transit through Chad by terrorist groups such as Boko Haram, and al Qaida in the Islamic Maghreb (AQIM), as well as an uptick in migration, urban populations are projected to reach nearly 6 million by 2030, or 27 percent of the total population. Chad is home to an estimated 450,000 displaced people, the large majority of which are refugees1. 2. The economy is largely dominated by agriculture and extractive industries, mainly oil . However, the recent fall in oil prices has had a dramatic impact on an economy in which oil accounted for 30 percent of total GDP and 70 percent of Government revenues in 2017. Almost half (47 percent) of the population was living under the national poverty line in 2011, the most recent year for which poverty numbers are available. The high level of poverty is accompanied by low human development, and Chad currently ranks 157 out of 157 in the recent World Bank Human Capital Index (HCI) with an index estimated at 0.29 meaning that Chad is losing 71 percent of its potential productivity. Life expectancy at birth is 51.9 years, expected years of schooling is 7.3 years, and mean 1Based on the UNHCR definition refugees are people who are recognized as refugees under the 1951 Convention Relating to the Status of Refugees or its 1967 Protocol, the 1969 Organization of African Unity Convention Governing the Specific Aspects of Refugee Problems in Africa, people recognized as refugees in accordance with the UNHCR statute, people granted refugee-like humanitarian status, and people provided temporary protection. Asylum seekers--people who have applied for asylum or refugee status and who have not yet received a decision or who are registered as asylum seekers--are excluded. Country of asylum is the country where an asylum claim was filed and granted. Apr 12, 2019 Page 3 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) years of schooling stands at just 2.3 years. Education attainment is highly unequal with people in the wealthiest quintile having an average of 6.7 years of schooling, compared with 1.0 for those in the poorest quintile. 3. Two thirds of the population are less than 25 years old and the proportion of young people will continue to increase dramatically in the coming years. Those under the age of 24 will continue to grow faster than the rest of the population through 2050 creating an even bigger “youth bulge.� The growing population and increasing dependency ratios are challenging for increasing employment, improving productivity, and adequately providing public services. The high population growth rate alone will result in extreme pressure on the health and education sectors, requiring a continuous increase in expenditures just to maintain coverage. The “youth bulge� will lead to a sharp rise in the number of young people seeking employment, and urbanization will push and increasing proportion of these youth to seek employment outside of the agricultural sector, though this increase is slow, and the majority will remain in informal work in agriculture. Sectoral and Institutional Context Sector Context 4. Low education and literacy levels are severe constraints to a productive labor force. The education system in Chad is subdivided into early childhood education (almost inexistent, gross enrolment rate (GER) of 2%), six years of primary education, four years of lower secondary education, three years of upper secondary education, and higher education. However, according to the DHS 2014-15, almost half (46 percent) of primary- school-age children in Chad did not attend school. Stark gender and regional inequalities remain, with a gender parity rate at 0.75. For those who do attend school, low learning outcomes are a perennial challenge, with only 15.7 percent of sixth graders equipped with sufficient competency in reading according to the 2014 PASEC results. The low supply of science and technology skills is particularly acute, with just 67 girls nationally enrolled in mathematics and science tracks in the last year of upper secondary – or 0.1 percent of the total baccalaureate candidates. 5. While the unemployment rate for the working age population is low in Chad (as in other parts of SSA), the youth unemployment rate is notably higher. It was estimated at around 9 percent for both 2016 and 2017 with young women more likely to be unemployed (at a rate of 10.6 percent). Comparatively, the working age population unemployment rate is estimated at 5.8 percent in 2017 up from 5.7 percent in 20162. Educated youth and youth in urban areas appear to be more likely to be unemployed, and if Chadians are working, the quality of their jobs tends to be low. According to ECOSIT 3 data, more than 35 percent of the working age population is underemployed, especially in rural areas (36.4 percent, compared to 27.2 percent in urban areas). 6. A high concentration of the labor force in self-employed informal and low-productivity operations. Most of the workers are in the informal sector which represents 95 percent of the workforce. Jobs in the informal sector are highly vulnerable, with low earnings, and low dependability. Even outside of agriculture, 60 percent of jobs are in the informal sector. Of the 400,000 informal establishments outside of agriculture, most are engaged in trade and repair of vehicles or equipment, followed by manufacturing of food and beverages. As above, underemployment remains a major challenge. Within the informal sector 39.2 percent of the workers in the non- agricultural sector are estimated to be underemployed vs. 40.2 percent for agricultural workers. 2 See World Development Indicators 2018. Apr 12, 2019 Page 4 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) 7. The agriculture sector employs 80 percent of the Chadian workforce and accounts for 52 percent of GDP. It is also the second largest source of export income for the country after oil. The Government has, among other actions, prioritized the industrialization of agriculture with the aim of boosting exports to diversify the economy, but the sector is struggling to modernize and remains largely dependent on weather conditions3. Family farming often has low productivity and profitability and lacks resilience to shocks. While lack of equipment and technology contribute to low productivity and profitability, low education levels and lack of skills are also key determinants. Support for more productive self-employment and diversification of rural livelihoods is critical to supporting the high proportion of vulnerable rural Chadians. 8. A multi-tier system of technical and vocational education and training (TVET) exists, with several institutions that focus on providing differing levels of skills but is complex and poorly coordinated. Students at the lower secondary level can seek a DFFTP (Diplôme de Fin de Formation Technique et Professionnelle) which is awarded after two years of vocational study at a technical college. Students who pass the exit examination at the end of the lower secondary cycle can also enroll in a three-year program taught in a lycée technique, leading to the degree of BT. Students who successfully complete middle school can also seek a BEP degree which can be obtained with two years of technical or vocational training in a college technique following successful completion of middle school. The technical and vocational education sector includes two industrial technical high schools, four industrial technical secondary schools, twenty-one high schools specialized in commerce. In addition to these institutions there are eighteen apprenticeship and training centers with varying levels of capacity, which tend to focus on shorter term training. 9. Although TVET and skills development efforts are a critical pathway for improving the stock of skilled workers for market relevant jobs, the subsector has suffered from numerous challenges which undermine their potential. These include the following: (a) Unsustainable Funding. Public technical and vocational training institutes receive funding from multiple resources, including a payroll tax on private businesses and a tax on foreign workers, but little coordination exists among these groups, and allocations do not rely on formal criteria related to needs or priorities. In many cases equipment, basic inputs such as electricity, raw materials, and ventilation are outdated or non-existent within centers. Further, centers lack autonomy, have no way to generate additional revenue, and lack basic governing procedures at the institutional level. (b) Low enrollment. TVET centers have extremely low absorptive capacity despite demand and do not make use of efficiency measures in scheduling and shifting to maximize space and enrollment. In the school year 2014 - 157,042 students were enrolled in technical colleges, and 1,039 in vocational schools. The majority of students (5,563 students or 78.3 percent) chose the technical commercial schools while the remaining 21.7 percent enrolled in the technical and industrial streams. Private institutions account for 27 percent of total enrollment. (c) Lack of diversity and access. Access is particularly limited for Chadians living in rural areas, as well as women both in rural and urban areas. Furthermore, inclusion measures for participants with disabilities, even very basic ones, do not exist within the centers. Just 1.5 percent of enrollment at the secondary level is occupied by rural Chadians, given that the centers are concentrated in major cities and there are few offerings focused on key sectors such as agriculture,4 and the female imbalance is acute 3Agriculture Sector Review Report (ASRR) 2017. 4N’Djamena is home to 37 percent of the TVET institutions and 48 percent of the sector’s students. In Moundou, the country’s second largest city, these numbers stand at 9 percent and 18 percent respectively. Apr 12, 2019 Page 5 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) (except for the commercial streams5. Girls accounted for only 5 percent of the total 2,518 enrollees in the industrial streams of the TVET institutions and there are extremely small numbers of female teachers and no female directors in any of the TVET institutions.6 (d) Limited relevance and low quality. The key factors driving low quality are (i) program offerings do not appear to be driven by employment offerings and do not result in required skills for employment7; (ii) equipment is outdated or nonexistent, and hands-on application is often not possible; and (iii) poorly trained trainers and staff as well as outdated heavily theoretical curricula diminish the quality of training to students. (e) Lack of industry involvement. AFD is supporting development of standards which were previously non-existent or defunct, however there remains very little input from industry on training design. Further, for entrepreneurship and self-employment, even though these remain the main sources of employment. Institutional Context and Government Strategy 10. The technical and vocational training sector is highly fragmented in terms of both service delivery and financing. At least seven ministries intervene in one way or another in the training sector. The three main ministries are (i) the Ministry of Vocational Training and Micro Commerce (Ministère de la Formation Professionnelle et des Petits Métiers, MFPPM); (ii) the Ministry of National Education and Civics Promotion (Ministère de l’Education Nationale et de la Promotion Civique, MENPC); and (iii) the Ministry of Higher Education, Research and Innovation (Ministère de l’Enseignement Supérieur, de la Recherche et de l’Innovation, MESRI). Each of these ministries manages training centers or schools which deliver diplomas or certificates to its graduates. However, many other ministries also manage training schools and centers in their specific sector without any relationship to the three major ministries. The Ministry of Civil Service, Labor, and Social Dialogue manages eight training centers and the Ministry of Agriculture has 35 centers. The Ministries of Health, Justice, Livestock, Post and Telecommunications, and Youth to name a few all manage technical and vocational centers. 11. The National Development Plan (2017-2021), aims at developing Chad into an emerging regional country by 2030. It champions the four strategic objectives of (i) strengthening of national unity; (ii) strengthening good governance and the rule of law; (iii) the development of a diversified and competitive economy; and (iv) improving the quality of life of the Chadian population. As part of this approach, there is an emphasis on improved human capacity development and specifically improvement of technical and vocational education through Outcome 4.2.2 which stipulates that the actions planned to improve the sector are: (i) building the human and material capacities of institutes of technical education; (ii) improving governance of the sector; (iii) improving access to, and the fairness and quality of, technical training centers; and (iv) vocational training centers; and (v) building the capacities of human resources. 12. President Idriss Deby, reiterated the importance of education and youth employment, following the new constitution, in a speech in May 2018, in which he presented the country’s commitment to human capital development. This includes significant education reforms which aim to connect education to the world of work, 5Technical commercial streams graduate students in fields such as management, commerce, or business. 6According to 2017-18 institutional annual reports there was one female out of 26 teachers (or 3.8 percent) and 10 females out of 70 teachers (or 14.3 percent) in the TVET school of Moundou (CETIM) and N’Djamena (LETIN) respectively 7Opportunities in areas such as agriculture, forestry, and fishing, even though they are the main sub-sectors of employment are rarely offered. Apr 12, 2019 Page 6 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) ensure that skills development of young people is responsive to the most pressing needs of the country especially in the critical sector of agriculture, and ensuring more and better job opportunities for young women and men. 13. The specific policy objectives for Technical and Vocational training are further outlined in the 2017 National Employment and Training Policy, and the 2014 Interim Strategy for TVET which is not yet validated. These strategic documents main objectives are to equip young and adult Chadians with the necessary skills to find decent jobs or create their own jobs in the growth sectors. To that end, the Government is cognizant of the necessity to reform the technical and vocational training sectors by improving its quality and creating stronger links with the private sector. The system will also need to improve its absorptive capacity to be able to train even a small share of the massive number of youths that will enter the labor market during the next decade, estimated at 2.5 million. Without comprehensive and profound reforms, the sector is very unlikely to be able to deliver the expected results. C. Proposed Development Objective(s) Development Objective(s) (From PAD) The project development objective (PDO) is to improve access to quality skills training; and labor market outcomes for project beneficiaries and to strengthen the technical and vocational education and training (TVET) system in Chad Key Results Type Objective Indicator PDO Indicator 1 (core) Improve access to skills training for project Total beneficiaries of job focused beneficiaries intervetions (gender disaggregated) PDO Indicator 2 Improve labor market outcomes for project Share of beneficiaries of skills beneficiaries development programs who are employed within 6 months of completion PDO Indicator 3 Strengthen the technical and vocational Number of CFTPs and TVET centers education and training (TVET) system that have a functioning board of directors D. Project Description 14. To improve skills, employability, employment prospects, and labor market outcomes for its youth Chad will need to adopt a multi-pronged strategy: (i) improve the quality of its general education especially the pre- primary and primary cycles (PARSET2 is focused on primary education); (ii) improve the quality and relevance of its formal technical and professional skills formation system which will lead to higher quantity and better employability; and (iii) support the skills acquisition system for those in the informal sector or out-of-school. The project is designed to support these through four components. Component 1 will support the expansion of quality training opportunities by strengthening the public sector system, while Component 2 aims at improving the school to work transition for those in secondary technical or post-secondary education and bringing training opportunities to out-of-school youth and those living in rural areas. The main objective of Component 3 is to Apr 12, 2019 Page 7 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) strengthen the governance of the TVET public system which will have medium to long term impacts on the system’s ability to deliver quality training and make quality improvements implemented by the project self- sustaining. Lastly, component 4 will focus on the project management and instilling a culture of monitoring and evaluation. Component 1. Expanding Access to Skills through Improved Technical and Vocational Education (US$14.7 million) 15. This component aims to improve access to training and improve the overall quality of vocational training to meet the needs of the of the Chadian economy in sectors with high labor potential . This objective will be achieved through two sub-components: i) creation of a new model Centre de Formation Technique et Professionnelle (Center of Technical and Professional Training -CFTP), including the construction of the CFTP and the development of new management and training methods; and (ii) the improvement of the quality and upgrading of existing technical and vocational secondary schools in the industrial stream (Collèges and Lycèes d’Enseignement Technique et Industriel, CETIN and LETIN). Youth aged 14-29 will be targeted who meet the qualifications for entry into the newly created and restructured institutions and will benefit at least 30 percent females. 16. Component 1 will roll out a new institutional management and operations model which utilizes industry linkages and reorientation of the programs around labor insertion for graduates. This includes adopting sector specific curricula currently under development with support from AFD and in-depth training of school managers and trainers to upgrade quality of teaching and institutional management. To this end multi-year performance- based contracts (PBCs) will be signed between the government and targeted institutions which incentivize improved relevance, quality, access, and employment outcomes. Greater autonomy of training institutions and several sector reforms are required to create an enabling environment for this results-based management and operations model, which will be supported under Component 3. Sub-component 1.1 Improving Access to Quality Skills through the Creation of a new CFTP and Expanded Opportunities through preexisting CFTPs (US$5.3 million) 17. The construction of a new CFTP will be funded by the project. The new institution will incorporate the new pedagogical and management models including participation from the private sector. The site for the center will be X. 18. The project will finance development of the PBC between the CFTP and Ministry which elaborate clear targets namely: (i) the establishment of a Board of Directors; (ii) a minimum private sector and civil society participation of 40 percent in the Board of Directors; (iii) number young people registered by specialty area; (iv) the share of girls enrolled; (v) the share of enrollees participating in dual-training programs; (vi) number of graduates certified ; (vii) monitoring of graduates’ insertion in the labor market; (viii) effective in-service training of trainers; and (ix) the implementation of a new financing model. The performance contracts will be monitored by the MFPPM and each CFTP through their own monitoring and evaluation systems. They will also be supported by PARSET2 monitoring and evaluation specialist. Apr 12, 2019 Page 8 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) 19. Main activities: this sub-component will finance the construction of a new CFTP and the following activities through the PBCs: (i) the development and implementation of new pedagogical models and curricula; (ii) new administrative management involving the private sector; (iii) strengthening of the professional and teaching competencies of trainers; (iv) the provision of relevant equipment; (v) the purchasing of adapted textbooks; (vi) rehabilitation of existing infrastructures and equipment; (vii) information and sensitization campaigns to attract more female students; and (viii) governance reform and institutional financing. Sub-component 1.2 Rehabilitation and upgrading of Lycees Techniques et Industriels (US$9.4 million) 20. The project will support the reform and upgrading (modernization) of two to four collèges and lycées techniques et industriels through performance-based contracts to improve the quality of service delivery and the efficiency and effectiveness of the LETINs. These institutions currently offer courses in construction, electricity, and automotive, among others. The institutions are characterized by outdated equipment, limited hands-on and relevant training, heavily theory based teaching, and weak links with the private sector. The aim is to focus the course offerings, improve the management of the schools, strengthen practicum-based teaching and learning, introduce entrepreneurship and non-cognitive (socio-emotional) skills development8, and improve linkages with related industry to better prepare graduates for employability, in addition to upgrading of hardware. 21. The project will provide support for the preparation of operational manuals regarding the management of TVET schools, performance monitoring, relationship with the private sector relations and the preparation of regulatory texts. Technical assistance will be recruited to support the teams responsible for the management of TVET schools and the ministerial directorates in charge of technical education and vocational training. 22. Technical auditors will be recruited to conduct an external evaluation of each performance contract and certify the level of achievement of the expected results. The technical audit report will be used to determine the amount of funds to be allocated for the following year. 23. Main activities: this sub-component will finance the following activities through the PBCs: (i) the development and implementation of new pedagogical models and curricula (in coordination with AFD programs); (ii) new administrative management involving the private sector; (iii) strengthening of the professional and teaching competencies of trainers; (iv) the provision of relevant equipment including for ICT; (v) the purchasing of adapted textbooks; (vi) rehabilitation of existing infrastructures and equipment; (vii) information and sensitization campaigns to attract more female students; (viii) governance reform and institutional financing; and (ix) study tours for all relevant actors especially at the central level, directors, and a select number of teachers. The sub- component will also finance technical assistance to the TVET school to help them navigate through the institutional changes envisioned in the project and improve their financial management capacity. Component 2. Employment Support for Youth and Improved Entrepreneurship Opportunities (US$24.4 million) 8 Add footnote on socio-emotional skills here. Apr 12, 2019 Page 9 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) 24. This component seeks to provide first work experiences, and skills relevant to labor market demands, including entrepreneurship training, to youth. Targeted young people may have completed the full education cycle or dropped out of the school system prior to completion. The objective is to provide quality hands-on job training and entrepreneurship training, to improve employability, employment prospects, and ultimately livelihoods. This would include (a) internships for skilled graduates in their prospective professions; (b) apprenticeships; and (c) entrepreneurship for agricultural development. Apprenticeships and entrepreneurship approaches focus heavily on unskilled workers given that they are the most promising approaches to helping the large scale of low-skilled individuals within Chad transition into employment/self-employment. Table 1: Summary Overview of Sub-components Sub-component Beneficiaries Duration of Program Implementing Agency 2.1 Internships to improve 6,000 youth aged 15 to 29 6 to 12 months ONAPE and CNPT school-to-work registered in CFTPs, LETINs, transition or university 2.2 Expanding 7,500 out-of-school youth 6 to 24 months FONAP, MFPDS opportunities for aged 15 to 39 with limited depending on the trade apprenticeships education and who are not in a wage job 2.3 Agricultural 8,000 out-of-school youth Up to 6 months ONAPE and local NGOs entrepreneurship aged 15 to 39 living in rural areas and mostly engaged in the agriculture sector either wage worker or self- employed Sub-component 2.1 Internships to Improve School-to-Work Transition (US$6.8 million) 25. The internship program aims to improve the employment outcomes of graduates transitioning from secondary or post-secondary general education and TVET institutions into the labor market. Chad’s educational system does not have sufficiently strong linkages with the private sector to facilitate the immersion of young graduates in enterprises during their time at school or following their graduation. The subcomponent aims to address this practical skills gap of current graduates, while simultaneously reorienting the TVET institutional approach to focus on employment. 26. Internships will last 6 months during which the internships are funded fully by the project. After the first 6 months, the contract will be renewable for another 6 months, at which point the intern would be partially funded (50 percent) by the enterprise. Internships could for example include placements in hotels, healthcare, other service sectors, and construction firms which have been shown through data from ONAPE to recruit the highest numbers of workers. After one year, the intern then becomes eligible for recruitment, at which point the company would be wholly responsible for funding. The number of interns a company can hire over the course of the project and at any point in time will be limited (with optimal limit to be determined) to avoid abuse of the system by companies, as well as limits on the number of trainees a company can take without hiring any. The monthly Apr 12, 2019 Page 10 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) internship stipend amount will not exceed 60,000 XOF with girls receiving a higher stipend to cover for potential day care cost. 27. Main activities: The sub-component will finance (i) employment and internships recruiting camps in technical schools, training centers, and universities jointly hosted by ONAPE and the private sector, (ii) communications campaigns and partnership building in private companies; (iii) internship payments that include stipends, accident and medical insurance coverage, and (iv) technical assistance to ONAPE to implement the program and setup a website and the support to its decentralized branches outside of the capital city. Sub-component 2.2 Expanding Opportunities for Apprenticeships (US$9.2 million). 28. An apprenticeship scheme will be developed to facilitate improved labor market integration for youth through a dual apprenticeship program which combines adapted training programs with on-the job training opportunities with craftspeople and professionals. Dual training refers to a combination of practical, on the job training, and theoretical education to ensure an optimal blend of theory and practice. Training programs will combine practical training and theory with an emphasis on hands-on experiences in various types of workshops. Training in training institutions will constitute 25 percent of the program, with 75 percent focused on hands-on practical application, and will be targeting to youth with a minimum level of education. Additionally, training in functional literacy, numeracy and life skills will be coupled with the job specific training to improve employability. 29. To encourage female participation the project will pay a higher stipend to girls especially those with children who need to pay for day care costs. The payment of the stipend will depend on attendance. The project will also encourage girls to join male-dominated trades which provide better employment prospects and higher earnings in the labor market through a targeted sensitization campaign. 30. Main Activities: the sub-component will finance (i) training fees for the training providers and master craftsmen; (ii) stipends for the trainees paid via mobile money; (iii) training in functional literacy and numeracy and life skills by qualified training providers; (iv) a defined package of materials and equipment including all necessary protections, (v) accident and medical insurance coverage for apprentices; (vi) costs associated with training of trainers, upgrading of skills of apprentice instructors, (vii) costs associated with selection and placement of apprentices; (viii) development of new training guidelines and the design and implementation of the regulatory and operational framework for the apprenticeship program; and (ix) an institutional and organizational audit of FONAP as well as monitoring and evaluation. Sub-component 2.3 Development of Agricultural Entrepreneurship (US$9.0 million) 31. The sub-component will aim to provide entrepreneurship training to youth in rural communities to improve livelihoods. The goal is to provide necessary skills for addressing constraints related to (i) lack of entrepreneurship know-how (equipping small scale farmers with knowledge to diversify options and ideally transition out of subsistence farming); ii) community organizing along agro-value chains (i.e. building the value chain so that it is possible to grow, harvest, transform products, and get them to markets) and (iii) limited means Apr 12, 2019 Page 11 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) of food processing (i.e. loss of mangos during mango season due to limited technical skills and small scale equipment which result in not being able to transform/conserve them). The approach is consistent with the large numbers of youth who remain in rural communities in Chad, and the majority of workers who are engaged in informal employment in the agriculture sector. 32. Linkages between producers and sources of financing will be critically important and will be facilitated by connecting promising small-scale agriculture entrepreneurs with micro-loans via ONAPE. ONAPE has prior experience providing micro-lending to agriculture entrepreneurs, thus the program will build on the current mechanism, improve capacity and scale the approach. 33. Main Activities: The sub-component will finance (i) a campaign to promote training activities and agriculture as a viable livelihood; (ii) the development of the training modules; (iii) delivery of training sessions via contracted local NGOs; (iv) training of trainers; (v) agriculture micro-loans through the existing ONAPE financing mechanism; and (vi) monitoring and evaluation. Component 3. Improving TVET System Governance and Institutional Capacity Building (US$5.9 million) 34. This component is designed to strengthen the TVET system which suffers from weak governance and chronic underfunding. Given the relative neglect of the sub-sector, the sustainability of the project depends on the capacity of the collèges, lycées, and CFPT to self-finance their activities. It is critical that the status of these schools is revised to provide them with more autonomy and allow them to generate revenue, and flexibility to spend it. Thus, a new regulatory framework will be necessary as is improved institutional and management capacities of the ministries and institutions involved in project implementation and project execution. 35. This component will also build the leadership and management capacity of CFTP and TVET school directors to improve service delivery and implement a new finance model. TVET schools have often very low teacher-student ratios and teachers are underutilized - working less than 12 hours per week on average. Re- organizing school calendars, better planning the use of classrooms and workshops, and organizing dual-training could substantially increase the number of students the institutions receive without jeopardizing its quality. To provide more training opportunities to the youth restructuring the current financing model which currently operates using several uncoordinated sources of funding is critical. Rethinking the highly fragmented nature the training fund and address the financing challenges and the fractured nature of the skills development sector in Chad in terms of both service delivery and financing is also necessary. 36. Because the reforms envisioned in this component are necessary for the public sector TVET to perform, their effective implementation will condition disbursement for the activities in Component 1. As noted earlier, if the CETIN, LETIN, and CFTP continue to operate under the current model i.e. with no public financing, no possibility to generate own funds, no cooperation with the private sector, and an outdated governance structure with little accountability it is very unlikely that any investment in this system will be sustainable. New equipment will become old and rusty because of lack of maintenance funds, teachers will quickly revert to theory-only teaching because they would lack the necessary material for labs. Apr 12, 2019 Page 12 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) 37. Main Activities: this component will finance (i) TA to revisit the TVET national strategy and the national employment policy; (ii) roundtable and national consultations around the revised strategy; (iii) training of CFTP and TVET institutions’ staff; (iv) capacity building activities of selected training institutions, government departments, private sector associations, and employment agencies; (v) south-south exchanges through study tours; (vi) the revision of the national strategy of technical and vocational education and training, (vii) revision of the national employment policy; (viii) ONAPE’s capacity building to manage a website and generate databases to match supply and demand sides; (ix) national awareness campaigns that promote TVET and especially girls in TVET; (x) a study on the supply of training in Chad; and (xi) organizational and institutional audits of ONAPE, FONAP, and other important institutions. Component 4. Project Management and Monitoring and Evaluation (US$5.0 million) 38. This component will support the Project Coordination Unit (PCU), M&E activities, and capacity building activities associated with the implementation of the project. PARSET2’s PCU which has successfully managed several projects is retained to manage the project. The PCU will be responsible for overall coordination and implementation of project activities, as well as financial management (FM) and procurement. The project would finance the salaries of PCU staff, operational costs and the cost of equipment. Additionally, this component would cover specific technical assistance (TA) and capacity building needs for project implementation, and M&E (including third party validation, surveys, and impact evaluations). The proposed capacity building activities under this component could include: (i) trainings, study tours, and other initiatives to enhance the capacity of relevant ministry or agency staff to implement, coordinate, and monitor their programs; and (ii) capacity building of TVET institution administrators to increase their capacity to design surveys, conduct tracer studies and utilize the data for analysis and action. 39. Assessment activities – including, impact evaluations and beneficiary surveys of interventions under component 2, as well as support to the Gender Innovation Lab which will work with local institutions to carry out statistical analysis/employment surveys/labor studies/etc. monitoring of youth and follow-up activities during internships, survey of youth after the completion of the internships, apprenticeships, and entrepreneurships. There will also be at least two impact evaluations embedded in the project. This includes working with the Gender Innovation Lab to evaluate the impact of the inclusion of socio-emotional in the skills training program on labor market outcomes such as likelihood of wage employment, self-employment, or net income. There will be a special focus on rural areas and girls. Project cost and financing Table 3: Project cost per component and financing source Components/Sub-components Project cost Percent IDA US$ million Financing Component 1 Expanding Skills Development through Improved Technical and 14.7 100 Vocational Education Sub-component 1.1: Creation of new CFTPs and Expanded Opportunities through 5.3 100 preexisting centers Sub-component 1.2: Rehabilitation and upgrading of Lycées Techniques et Industriels 9.4 100 Apr 12, 2019 Page 13 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) Component 2: Employment support for Youth and Improved Entrepreneurship 24.4 100 Opportunites Sub-component 2.1: Internships for improved school-to-work transition 6.8 100 Sub-component 2.2: Expanding Opportunities for Apprenticeships 9.2 100 Sub-component 2.3: Development of Agricultural Entrepreneurship 9.0 100 Component 3: Improving TVET System Governance and Institutional Capacity Building 5.9 100 Component 4: Project Management and Monitoring and Evaluation 5.0 100 Overall Project 50.0 100 E. Implementation Institutional and Implementation Arrangements 40. The project will be implemented over a five-year period. The proposed closing date is October 31, 2024. The Ministry of National Education and the Promotion of Civics (Ministère de l’Education Nationale et de la Promotion Civique, MENPC) and the Ministry of Vocational Training and Micro Works (Ministère de la Formation Professionnelle et des Petits Métiers, MFPPM) will be the main implementing agencies for the project. 41. Steering Committee (SC). A system-wide Steering Committee (SC) will be established to provide guidance to the project on an annual basis. The representative of the MFPPM will be the President of the SC and the representative of the MENPC will assume the Vice-Presidency. The SC will have representatives of MEPD, the Ministry of Higher Education, Research, and Innovation (Ministère de l’Enseignement Supérieur, de la Recherche et de l’Innovation, MESRI), the Ministry of Finance and Budget (Ministère des Finances et du Budget, MFB), the Ministry of Civil Service, Work, and Social Dialogue (Ministère de la Fonction Publique, du Travail et du Dialogue Social, MFPTDS), the Ministry of Youth Promotion, Sports, and Employment (Ministère de la Promotion des Jeunes, des Sports, et de l’Emploi, MPJSE), the Ministry of Production, Irrigation, and Agricultural Equipment (Ministère de la Production, de l’Irrigation et des Equipements Agricoles, MPIEA). It should also include representatives of civil society and private sector. 42. At the annual meeting, the MENPC and MFPPM with support from the PCU will provide results for the year and will set out its intended results and necessary resources for the following year . The annual meeting will be done before the end of September of each year to ensure that the decisions taken by the Steering Committee are reflected in the budget submission for the following year. The first meeting of the Steering Committee is expected to take place in November 2019 (the second in September 2020) while the first annual work plan will be devised by the preparation team with the support of PARSET2. 43. The PCU will be responsible for daily project coordination, as well as the administration of the financing: procurement, financial management, disbursement, monitoring, reporting and evaluation, environmental and social safeguards. The PCU is already staffed with a qualified Project Coordinator, Procurement Specialist, Financial Management Specialist, Monitoring and Evaluation (M&E) Specialist, and Accountant. PARSET will be required to hire a team of engineers who will help oversee the CFTP construction and the rehabilitation program of the lycées and collèges d’enseignement technique et industriel. In addition, the DPEF will add a full-time Safeguards Specialist to ensure that the environmental and social safeguards requirements are met. Technical implementation of the Project will be the responsibility of each concerned department within the MENPC, Apr 12, 2019 Page 14 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) MFPPM, MFPTDS, and MEPD. Detailed project implementation mechanisms will be provided in the Project Implementation Manual (PIM), which will be completed by effectiveness. 44. The role of the Steering Committee is to provide guidance and advice for strategic direction of the project and approve annual budget and action plan. In those cases where specific action is needed to address issues that go beyond the scope of any single ministry, the president of the Steering Committee can bring together the relevant parties to find solutions to problems that are inter-ministerial in nature, which may be presented to the Steering Committee, if necessary. 45. The following implementation arrangements will be established. No more than three months after project effectiveness, each relevant MENPC and MFPPM director will nominate focal points who will be heads of components and sub-components who will work with the PARSET2 coordinator and the M&E specialist to convene the appropriate Government officials to finalize the work plan for each component. These will be key contributions to the overall project work plan to be developed by the project coordinator under the guidance of the Steering Committee which will be discussed with MENPC and MFPPM and communicated to the Bank. Thereafter, once a quarter, the PCU will report on progress to the MENPC and MFPPM as well as key development partners within the LEG and will share the work plan for the following three months. 46. Annual reviews will be held in November/December of each year, bringing together all key stakeholders in the system. At those reviews, the MENPC and MFPPM officials will provide updates on the status of the technical and vocational education and training sector, including information regarding the start of the school year (enrollments, recruitments, trainings, and so on). Each functional/central directorate will present its results, and each regional directorate will do the same. The arrangements will be formalized in the project implementation manual. More details on the project implementation arrangements can be found in Annex 1. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) G. Environmental and Social Safeguards Specialists on the Team Kristyna Bishop, Social Specialist Bougadare Kone, Environmental Specialist Mamadou Diedhiou, Social Specialist Aurelie Marie Simone Monique Rossignol, Environmental Specialist Apr 12, 2019 Page 15 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Due to the civil works inherent to constructions and/or rehabilitation civil works activities of schools/centers, the potential social and environmental risks of the proposed project are expected to be moderate and mostly site-specific, with no significant or long-term negative risks and impacts, which are foreseen to be easily manageable; typical of category B projects. Since project’s physical footprint is presently unknown and would so be prior to appraisal, in compliance with OP/BP 4.01 (Environmental Assessment) core requirements, the Borrower will prepare, consult upon and publicly disclose – both Environmental Assessment OP/BP 4.01 Yes in-country and on the world Bank’s website, prior to appraisal, an environmental and Social Management Framework (ESMF) to guide the way that potential negative environmental and social risks and impacts of future sub-projects will be identified and mitigated during project implementation. If, during project preparation/implementation, any project specific site is known before appraisal, a site-specific an Environmental and Social Impact Assessments (ESIA)/Environmental and Social Management Plans (ESMP) will also be prepared, amply consulted upon and publicly disclosed, both in-country and on the World Bank website prior to appraisal the physical start of civil works Performance Standards for Private Sector No Activities OP/BP 4.03 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No The project comprises no activity which may induce the purchase and/or the use of pesticides or related Pest Management OP 4.09 No chemicals. The project will not finance pesticides acquisition or distribution. This policy is triggered because of the nature of possible civil works to be financed under component Physical Cultural Resources OP/BP 4.11 Yes 1 – more precisely under sub-component 1.2 which might lead to the unearthing of such potential physical cultural resources (PCR). Nevertheless, it is Apr 12, 2019 Page 16 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) highly unlikely that any physical cultural resources will be impacted; nonetheless, the existing a “Chance finds procedures� will be embedded in the ESMF to ensure that these aspects will be taken into account an adequate management of PSRs during project preparation and implementation. The policy is not triggered as there are no Indigenous Peoples OP/BP 4.10 No Indigenous People in project targeted areas. The project has triggered OP/BP 4.12 (Involuntary Resettlement) to enable the project to better tackle issues related to land acquisition, including economic and physical displacement. Since the project footprint is yet to be known, the Borrower will prepare project has updated the a Resettlement Policy Framework (RPF) for each participating country. The RPF sets out the policies, principles, institutional arrangements, likely categories of affected people, eligibility criteria and categories, compensation rates, methods of valuing affected assets, community participation and information dissemination, Grievance Redress Mechanism and effective monitoring and evaluation. The RPF will be amply consulted upon, and once cleared by the Bank Involuntary Resettlement OP/BP 4.12 Yes it will be publicly disclosed both in-country and at the WB’s external website prior to appraisal. Further, when investment sites lead to land take that causes economic and/or physical displacement, the borrower will prepare a site-specific Resettlement Action Plan (RAP). Since the resettlement process is meant to be inclusive to encompass vulnerable social groups and guarantee that they receive fair and equitable treatment, the corresponding site-specific RAPs, wherever deemed necessary, will be consulted upon, cleared by the World Bank, and publicly disclosed both in-country and at the external WB’s website prior to the physical start of civil works The project will not finance any activities related to Safety of Dams OP/BP 4.37 No the construction of dams nor affect operations of existing dams or affiliated reservoirs Projects on International Waterways No The project will not affect international waterways. OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No No activities are planned in any disputed areas. Apr 12, 2019 Page 17 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project is focused on improving skills of the Chadian youth, with an emphasis on improving the public TVET system, instituting performance-based contracts, building capacity, improving the governance of TVET institutions, creating linkages with the private sector, improving monitoring and evaluation, etc. As such, these activities have little to no environmental impact. However, civil works will also be financed, such as the construction of technical and vocational training centers, and the extension and rehabilitation of secondary technical schools, within existing schools, the provision of fencing, access to clean water, adequate sanitation, and electricity for which the most cost- effective and environment-friendly options (such as solar panels) will be given preference. Impacts from these activities could include work-related health and safety impacts; noise, dust, reduction of air and water quality; loss of tree/vegetation cover; etc. The short, medium- and long-term socio-economic impact of the proposed project is expected to be largely beneficial. The project has a low probability of inducing physical or economic displacement. Its intervention is mainly focused on existing secondary schools and vocational training centers except for the construction of one new model center. As there may be some unforeseen resettlement. Therefore, the project will prepare a Resettlement Policy Framework (RPF). The influx of male workers may increase the demand for sex. As a result, women in the project community may be subject to higher rates of violence. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Not applicable 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. As the impacts from Project activities on the environment are expected to be moderate, the Borrower will prepare an Environmental and Social Management Framework (ESMF). The ESMF will be used by the implementing agency as a defined procedure and guidelines to screen each activity as it is proposed for financing. The ESMF will be used to prepare site-specific Environmental and Social Management Plans (ESMPs) which will include impacts, mitigation measures, a responsible entity and a budget for each mitigation activity. Given the Recipient’s limited but growing experience with implementation of environmental and social safeguards instruments, close safeguards supervision and implementation support will be carried out during the early stage of project implementation until adequate safeguards experience is developed. The PARSET2 engineer, in collaboration with the relevant directorate and regional office of the MFPPM, will supervise the implementation of the safeguards instruments discussed above. IDA supervision will focus on: (i) providing regular implementation support; (ii) carrying out field reviews of safeguards implementation; and (iii) monitoring safeguards implementation based on periodic progress reports. The short, medium- and long-term socio-economic impact of the proposed project is expected to be largely beneficial. The project has a low probability of inducing physical or economic displacement. Its intervention is mainly focused on existing technical secondary schools and vocational training centers. However, the construction of a new vocational Apr 12, 2019 Page 18 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) training center is planned in Sahr region. As there may be some unforeseen resettlement. Therefore, the project will prepare a Resettlement Policy Framework (RPF). The construction to be realized in this project are not large and the works will be realized by the local companies. Thus, the influx of foreign labor will be very limited, or-existent. Nevertheless, the project will also set in place mechanisms to prevent Sexual Exploitation and Abuse and sexual based violence. The project will emphasize the importance of having internal prevention and response systems and policies (sexual harassment policies, anonymous reporting mechanisms) in place and building staff capacity to recognize and address these issues at the project level during implementation. Finally, a The GRM will be prepared, in consultation with stakeholders, including communities. A project level GRM is outlined in the RPF and ESMF. It is designed to be a mechanism that is trusted by all relevant partners including the project affected persons (PAPs), if it turns out that impacts happened in the implementation stage. It will facilitate the redress of any grievance and conflict that may arise from the Project. The PIU will be notified of any disputes in the project zone. Project field staff should work closely with the communities and the community leaders to clarify and resolve any misunderstanding that could give rise to conflicts. The PIU will develop a clear plan and procedures for the GRM, including complaint collection and processing procedures, reporting format, database/records specifications, and committee membership using guidelines provided in the RPF and ESMF. Public participation and consultation will be a key part of the process at all times to promote understanding and prevent unnecessary complaints and disputes. IDA supervision will be carried out by field-based Bank technical staff, complemented by specialist consultants as necessary, during regular biannual supervision missions and during interim technical safeguards missions that will respond to emerging issues. Monitoring will be based on ESMF activities. It will also be an occasion to discuss the project safeguard requirements with the Recipient, including management plan and reporting requirements. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. During the preparation of the ESMF and RPF, the Borrower held consultation with several public TVET institutions and communities located in the regions that will be targeted by the project such as Moyen-Chari, Sahr, and Moundou as well as in N'Djamena. The Borrower met with TVET schools directors, teachers, and students. Further consultations will be held before appraisal and will specifically ensure that vulnerable groups, like women, refugees, etc. are included B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 22-Mar-2019 15-May-2019 "In country" Disclosure Chad 14-May-2019 Comments Apr 12, 2019 Page 19 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank Date of submission for disclosure 01-Apr-2019 15-May-2019 "In country" Disclosure Chad 14-May-2019 Comments C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OPS_ PCR_COM P_TA BLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? No Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? No OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Apr 12, 2019 Page 20 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) Have relevant safeguard policies documents been sent to the World Bank for disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? CONTACT POINT World Bank Waly Wane Senior Economist Borrower/Client/Recipient Republic of Chad Implementing Agencies Ministere de l'Education Nationale et de la Promotion Civique Dibe Galy Directeur General galydibe@yahoo.fr Yassir Tidjani Apr 12, 2019 Page 21 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) Directuer Enseignement Technique yassirtidjani@yahoo.fr Mahamat Barka Adams Al-Boukhari Coordonateur PARSET2 barka_adams@yahoo.fr Ministere de la Formation Professionnelle et des Petits Metiers Padja Ruth Madjidian Ministre madjidianruth@gmail.com Chantal Mounoubai Directrice Generale du Ministere chanmounou@yahoo.fr Ministere de l'Economie et de la Planificatin du Developpement Houle Djonkamla Directeur General houle.djonkamla@gmail.com Dorim Bernard Directeur de la Cooperation au Developpement dorimbernard@yahoo.fr FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Waly Wane Apr 12, 2019 Page 22 of 23 The World Bank CHAD Skills Development for Youth Employment and Competitiveness Project (P164297) Approved By Safeguards Advisor: Practice Manager/Manager: Meskerem Mulatu 20-May-2019 Country Director: Francois Nankobogo 21-May-2019 Apr 12, 2019 Page 23 of 23