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PROJECT FOR THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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Project number: 160276

Project title:

Technical and Institutional Capacity Building for increase in production and development of the aquaculture and fisheries value chains in Ethiopia

Relationship to integrated programme:

[Partnership for Country Programme, PCP Ethiopia]

Thematic area code: GC11 Agribusiness and Rural Development

Starting date: May 2017

Duration: 48 Months

Project site: Ethiopia Government Co-coordinating agency:

Ministry of Industry and Trade (MoIT), Ethiopia

Counterpart: Executing agency/ cooperating agency(ies):

Ministry of Livestock and Fisheries Development (MoLFD) Ethiopian Meat and Dairy Industry Development Institute

Project Inputs:

- Grand Total: USD$ 2,260,000

Brief description: The Government of Ethiopia - Growth and Transformation Plan (GTP1) – prioritizes fisheries and aquaculture value chains development, where in the past attention of government policies and programmes were mostly focused on research and academic teaching on environmental regulation and management of fishing resources and the water catchments. Ethiopia’s fisheries sector potential is limited by low productivity and lack of support services including trainings for value chains development, which if adequately addressed by enhancing the requisite support services could contribute to diversification of livelihoods opportunities and bridge the growing domestic demand for quality fish and fisheries products. The country has diverse natural and managed water bodies which are endowed with fisheries resources, provisioning for livelihoods as is mostly evident in rural fishing communities, and with considerable potential for developing selected commercial species to competitive export value chains. This project has the objective to promote institutional capacity building through the establishment or upgrading of a Fisheries and Aquaculture Training and Vocational Institute (FATVI), thereby supporting development of the fisheries sector of Ethiopia and its diversification of the related industry value chains. The project is expected to contribute to the national strategic objective of economic diversification and efficient use and management of the diverse fisheries and aquaculture resources, and improving economic livelihoods. The project expected outcome is developed and well-coordinated national institutional capacity with adequate human capacity and, therefore providing quality training, and support services to develop the respective sector value chains.

1 GTP is at the second phase referred to as GTP II 2016-2020

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A: CONTEXT .............................................................................................................................. 1

A.1 PROJECT CONTEXT .................................................................................................................. 1

A.2. PROBLEM TO BE ADDRESSED .................................................................................................. 1

A.3. OVERVIEW OF THE ETHIOPIA’S FISHEIRIES SECTOR ................................................................ 3 Primary Fisheries Production ......................................................................................................... 4 Fish Processing and Marketing skills and facilities ........................................................................ 4 Fisheries Extension and Support Services ..................................................................................... 5 Aquaculture and diversified value chains development potential ................................................ 6

A.4. RELEVANT SECTOR POLICIES AND STRATEGIES, AND STAKEHOLDERS ................................. 10

A.5. PROJECT TARGET BENEFICIARIES .......................................................................................... 13

B: REASONS FOR UNIDO & OTHER PARTNERS’ ASSISTANCE ................................................... 15

B.1 UNIDO ................................................................................................................................... 15

B.2. RUSSIAN FEDERATION .......................................................................................................... 17 Institute of Marine Technologies of Astrakhan State Technical University ................................. 17 Joint Russian-Ethiopian Biological Expedition (JREBE)................................................................. 18

B.3. GOVERNMENT OF ETHIOPIA ................................................................................................. 18

B.3. GENDER MAINSTREAMING ................................................................................................... 19

C: THE PROJECT ...................................................................................................................... 20

C.1. THE OBJECTIVE ...................................................................................................................... 20

C.2. PROJECT APPROACH ............................................................................................................. 20

C.3. UNIDO RBM CODE AND THEMATIC AREA ............................................................................ 23

C.4. EXPECTED OUTCOME ............................................................................................................ 24

C.5. TENTATIVE SCHEDULE OF PROJECT ACTIVITIES (48 Months) ................................................ 25

C.6. RISKS AND MITIGATION MEASURES ..................................................................................... 27

D: INPUTS ............................................................................................................................... 29

D.1. COUNTERPART INPUTS ......................................................................................................... 29

D.2. PROJECT INPUTS ................................................................................................................... 29

E: BUDGET ..................................................................................... Error! Bookmark not defined.

F: MONITORING, REPORTING AND EVALUATION ................................................................... 31

G. LEGAL CONTEXT.................................................................................................................. 32

Annex 1: Logical Framework .......................................................................................................... 33

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A: CONTEXT

A.1 PROJECT CONTEXT

The Federal Republic of Ethiopia, hereafter referred to as ‘Ethiopia’ has achieved steady GDP growth rates averaging 10.8% per year in 2003/04 - 2014/15 compared to the regional average of 5.4%, with the rapid expansion of national agricultural production and services sectors accounting for most of this growth. Ethiopia’s population growth is also growing at high rates on the global average, with the national population estimated to be 80-90 million people (World Bank Economic Outlook, 2014-2015).

The Government of Ethiopia (GoE) emphasis in the national development strategy referred to as the Growth and Transformation Plan, GTP II is to sustain and diversify the economic base and the benefits of growth by broadening the undiversified economic base, creating opportunities for employment off farm lands, securing nutritional food security, and ensuring sustainable use and management of the diverse natural resources. GTP II underpins Ethiopia’s comparative advantage on agro industries development on selected food and non-food agro value chains, mostly those which are important to sustain the outcomes of food security and rural growth, and broadening the benefits of macro-economic growth.

Agricultural production comprises the main productive sector of Ethiopia, which is accounting for over 45% of GDP, a source of livelihoods for about 80 percent of the rural population, and a major contributor to the national goals of sustainable food security and export trade. Ethiopia’s agriculture sector is diverse, as it is broadly categorized to include crop farming and livestock husbandry, as well as natural resources base such as the diverse forestry and wildlife, and largely subsistence household fisheries activities along the major water bodies. Non-agricultural natural resource sectors such as mining, tourism and construction also constitute key productive and trade sectors.

The GTP II priorities for the agro sector include enhancing the fisheries sector productivity and capacity for value addition.

Ethiopia’s agricultural sector, including fisheries value chains can develop more competitively in view of growing population and demand for quality food, and jobs provided by the high population growth and market access opportunities. GTP II target of industrial-led transformation as a means for achieving a middle income status by 2025 is to be achieved through implementation of a number of sectoral policies and programmes. Human capital development is one strategies pillars of the GTP II, which should address the needs for innovative skills and enhance employability of the young people in productive sector growth and diversification. This project focuses on enhancement of human capacity through an institute modality to address the availability of adequate training and support services to the public sector, extension and fisheries value chain actors. The project expected impact is to promote diversification of the dominant rural primary agricultural production and the related natural resource sectors.

A.2. PROBLEM TO BE ADDRESSED

The fisheries sector performance - as with other agricultural productive sectors of Ethiopia - requires support to promote investments and private sector involvement including small scale business development. Improvement of value chains performance will also be reliant on the capabilities and coordination of extension and support institutions to align with the national goal of inclusive and

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sustainable industry led growth and development. This project is specifically supporting implementation of the sector policies and development plans of the Ministry of Fisheries and Livestock Development (MoLFD2) and Ministry of Industry and Trade (MoIT) to address the GTP pillar of human capital development, and improving related support services including relevant skills training for diversification of primary sectors and creating jobs for the growing youth population.

Fisheries value addition and improved management of the resources constitute a core component of the GTP II strategies for diversification of the economy from a dependence on primary agricultural production and non-value added natural resource commodities including agriculture, fisheries, livestock, forestry and mining; among others. At the same time, in view of the hitherto underdeveloped consumption of fish and fish products in Ethiopia, and a growing production and domestic demand, it is important to note that the fisheries value chain development services would be a relatively new priority area of the GTP II.

The fisheries sector growth target under GTP II is to sustainably improve national production output to 15% of the GDP value of agricultural production. To achieve these targets, the government recognizes the need for well-matched strategies for accelerating human development and enabling policies and regulatory frameworks if the competitiveness of the fisheries sector is to be improved. A competitive value chain will require improved fish quality and safety framework, strategies to minimize pressure on resources and wastage, and support for improving producers’ service for access to competitive markets.

The country’s water endowments are estimated to encompass about 7,400 km² of lakes area and a total river length of about 7,000 km, with diverse uses and services provided such as sources of fishing, sustenance of agriculture crop land production including irrigation and livestock husbandry, dams and reservoirs for electricity generation. The country has potential to increase and sustain productivity of the fisheries sector by utilizing the diverse resources that constitute of a vast range of waters endowed with capture fisheries resources, which have remained partially unutilized/ underutilized. The situation of increasing import of fish and fish products, the challenges in security nutritional food security, and needs for diversified livelihoods opportunities underline the government priority to develop the fisheries sector, including aquaculture and value addition, in the way contributing to diversification of economic livelihoods for poverty reduction and sustained nutritional food security.

However, gaps exist in the sector policies and development plan, and particularly the support services are inadequately matched to producers and consumer-market demands for value added and quality fish and fisheries products. The new sector ministry responsible for the fisheries sector, MoLFD will need dedicated support to develop and implement an adequate policy, regulatory and support services framework. At the same time, there is a lack of services that supporting an integration of value chain actors in an efficient value chains to duly contribute to nutritional food security and diversified growth - as regulatory and support institutions at national, regional and sector specific levels that exist are mostly engaging in research and academic teaching, while the capacity of government ministries and agencies that are mandated to support policy making, implementation and regulation of the sector is generally low, and generally marketing operations involve uncompetitive cooperatives.

Therefore, the government is looking into ways to promote utilization of the largely less utilized resources, along with value addition in agriculture and associated value chains; and reducing the high 2 GoE established a dedicated Ministry of Livestock and Fisheries Development in 2016.

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levels of post-harvest losses of food and agro produce. At the national level, growth of the sustainable fisheries sector can help the country to bridge the growing demand for quality fish and fisheries products in the country and hence a negative sector trade balance, and the need to balance the safeguard of dependent livelihoods and environmental benefits from the diverse water resource uses.

In the context of the global blue economy and sustainable seafood supply chains approaches, Ethiopia’s fisheries sector has a strong relevance for the country to engage in the global agenda of developing a green and sustainable pathway that supports increased fisheries production output. In particular, the focus on institutional capacity building and logic of intervention as highlighted in this proposal underpins the government and its people increasing attention and in some cases dependence on the diverse endowment of natural and managed water resources across the country that have yet-untapped opportunities for growth of fisheries production output in terms of maximum sustainable yield, MSY and maximum economic yield (MEY) and value addition.

This project responds to the official requests of Government of Ethiopia – Ministry of Industry and Trade (MoIT) and Ministry of Fisheries and Livestock Development (MoLFD), which was initiated through the UNIDO supported technical assistance project assessment of the national fisheries sector (including the value chain mapping presented later in this section). The project addresses the gap on unmet potential for improving fisheries production and productivity through improved value addition and marketing of quality fish products for food, and management regulations that would secure the sustainable fisheries resource use and management.

The project is developed in partnership with Government of Ethiopia, UNIDO and benefitting from the financing contribution of The Russian Federation. The project interventions are aligned with the UNIDO Programme for Country Partnership (PCP) Ethiopia plans, including technical partners of the Russian Federation, and Government of Ethiopia – Ministries, Departments and Agencies (MDA) under the component of upgrading agro and food processing value chains. The preparatory assessment undertaken by government, UNIDO and national partners of the Programme for Country Partnership (UNIDO PCP – Ethiopia) highlighted the specific gaps and intervention areas recommended to promote fisheries sector growth, primarily by strengthening the capacity of support institutions in a way that builds on and compliments the varying institutional mandates and capacity that exists in the country

A.3. OVERVIEW OF THE ETHIOPIA’S FISHEIRIES SECTOR

A brief baseline assessment and value chain mapping is presented in the section below, under the subsections of:

- Primary Fisheries Production;

- Fish Processing and Marketing skills and facilities;

- Fisheries Extension and Support Services;

- Aquaculture and diversified value chains development potential.

The PA assessment studies were undertaken on three major fishing water bodies and their respective federal region states of: Lake Tana in Amhara region, and Lake Abaya and Lake Chamo in Southern National People’s Region. This assessment was undertaken as part of the Preparatory Assistance ‘project 130111’ aiming to support development of the fisheries and aquaculture sector. The assessment evaluated the sector overview and specific needs for value chains development, and recommended

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interventions. As a baseline, the assessment considered the traditional view of gender roles in the fisheries, which was the case in Ethiopia that fishing activities were almost exclusively undertaken by young men and women are mostly engaged in processing and fish retail activities in the communities. Many fishers’ households and traders give small rudimentary work that is rather limited to cleaning, gutting, and filleting to low paid labourers. The key problems of limited human and institutional capacity of fisheries support agencies and partners to all segments of the value chain – limits productivity improvement both in fisheries and aquaculture sectors.

Identified institutional capacity building areas of attention also include the need for policies and regulatory frameworks to ensure sustainable resource uses and management by improving the capacities of producers and support services to guarantee sustainable means of production and regulatory resource management, to sustain steady increase in supply of quality and nutritious fish and fish products in the country, and potentially enhancing value added export capacity.

The summary of assessment below is presented in line with the agriculture value chains development strategies, besides the GTPII, which is the Government of Ethiopia strategy of Industrial led Agriculture Transformation Plan (ATP).

Primary Fisheries Production

Fishing activities along major water bodies, particularly on the large lakes and Blue Nile and its tributaries provide important means of subsistence, such as food, employment and income. The major fisheries value chain activities in the country start with capture fishing based on the resources of the Great Rift Valley lakes, namely Lake Tana in Bahir Dar- Amhara Region, and Lakes Ziway, Langano, Abaya and Chamo in SNNP region. These water bodies host a range of ecosystem services such as diverse flora, fauna, birds and fish species; and they also support economic activities besides fishing, such as tourism, electricity generation, as well as crop farming and livestock husbandry.

Total national fisheries production output is estimated to be 50,000 tonnes, which is equivalent to about 52% of national Maximum Sustainable Yield (MSY) estimated at 94,000 ton (Source: national Ethiopia Govt. MoLFD 2016). For the remote water bodies and landing sites, the contribution of subsistence production is only about 20 percent of the national fish catch and is mostly marketed locally in the communities or onwards to traders generating a complimentary source of subsistence food and incomes.

Fisheries organizations along the value chains face weak governance, which in turn influences the relatively small volume of fisheries food per capita production and consumption, and its potential for growth. Value chain actors and allied enterprises operate at a wide range of scales, from the potentially few marketing cooperatives and relatively high end retail traders, to the lowest segments of basic fishing and related activities in remote rural fishing communities. Subsistence scale fishers comprise a big part in terms of numbers of fishers operating from landing sites located near urban and peri urban areas. A large number of fisheries dependent communities and households engage in agriculture and livestock activities as the primary source of livelihoods, and also depend on water resources for fishing and other subsistence and social uses such as water for households.

Fish Processing and Marketing skills and facilities

The low levels of productivity along the fisheries value chain has limited the sector and its producers’ contribution to supply of quality and nutritious food, and their potential for transformation of dependent livelihoods and has driven fisheries to human induced-unsustainable exploitation pressures on many of the most underutilized fishing water resources of Ethiopia. Micro and small scale traders and cooperative

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enterprises mostly engaged in some post-harvest processing of fillets. Many traders operate through informal locations and marketing channels linking to fishers in remote rural and consumers in urban fishing and non-fishing locations.

Some of the identified reasons for low level of national fisheries production and value addition are related to the low domestic demand and low per capita consumption of fish and fish products; generally seasonal primary fisheries activities and yields, and limited capacity for preservation and value addition for the fish catch from all water bodies.

The current value chains are not fit-for purpose, as processing of fish catch is commonly undertaken under rudimentary conditions on lake or river and stream banks, with a few established facilities operating only seasonally.

For instance, along Lake Tana, where a few premises owned by fisheries cooperatives and marketing centres are equipped with handling and processing equipment and facilities, processing was commonly undertaken at points of receipt of fish catch or on unhygienic sites at lake shorelines. At the sites which were assessed, lake water was commonly used as a less costly option for cleaning the fillets. Hence, the assessment identified a need to address food safety problem and implement better addition in fishery value chains is key a control – as fish is one of the most perishable food commodities, and conservation approaches from fishing to markets which are more remote from landing sites, such as for fast growing urban consumers or export markets.

This situation of unmet demand for quality fish and a growing import bill is increasing. At the same time, consumers’ acceptance of fish and fisheries products on the domestic market is growing, driven by factors such as nutritional awareness of the benefits, and premium market in the urban and international community including the tourism sector in Ethiopia.

There is a widespread challenge is non-preference to utilize fish processing facilities even where they exist, which could be a quick win that would benefit from some policy incentives and awareness raising on the benefits of good hygienic practices and compliance to quality standards. The non-adherence to quality and hygienic practices was particularly reported to be due to convenience, lack of awareness and regulation, and lack of utilities such as the water supply and well equipped sanitation and product handling facilities at the designated processing sites.

Compliance with basic practices to ensure fish quality and awareness on practices for its food and feed safety is also a big problem. Contrary to the local market, the demand for fresh and frozen whole and fish fillets in urban consumer segments is growing, and Ethiopia is increasing the imports trade bill to meet demand. Cross-border trade takes place at a negligible scale, mostly it involves dried fish products that are poorly handled and transported, and marketed in cross-border neighboring markets such as Sudan in the North and South Sudan in the Western regions. The cross border traders on Lake Tana reported that demand for fresh and quality fish from some Middle-East countries was growing. As part of the sector plans, there is need to evaluate the comprehensive infrastructure needs for improved fish processing and linking the products to domestic consumer markets, along with exploring of opportunities in export and cross border trade, to establish relevant government programmes and plans.

Fisheries Extension and Support Services

Currently, fishery and aquaculture sub sector are given more necessity and support in the government plans for industrialization, such as the Integrated Industrial Parks models. The responsible sectors recognize that if the country is to meet the need for the current and projected fish demand of the

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country as forecasted by the second Growth and Transformation Plan to reach an average annual fish production growth of 14%, the sector can also diversified employment for rural youth and women. However, due to the absence of sector specific rural extension services and limited resources for supporting integrated development of the fisheries sub sector, underdeveloped fisheries input supplies, and weak regulatory capacity, operators including fishers hold very limited skills and know-how on securing their livelihood.

The inherent cross sector environmental and natural resource challenges of managing sustainable fisheries resources exploitation and the lack of capacity that is needed to ensure sustainable development further impacts on the low value addition and generation, and limits the sector’s potential contribution to the livelihoods of the resource users and the economy.

Besides the poor facilities and lack of skills, another challenge is that fisheries development plans often have to consider related extension service officials under the broader agriculture sector domain. Constraints such as lack of skills to promote good fish handling and preservation practices limit the opportunities, and generally producers earn subsistence incomes from working under difficult conditions. Ideally, with adequate extension and support services as has been largely improved in agriculture and livestock sectors of Ethiopia, more people may also engage in auxiliary fishing such as net making and mending, besides improving the conditions of post-harvest processing.

Aquaculture and diversified value chains development potential

Although there is a high potential for aquaculture development, including projected market demand for fish products, and many attempts have been made in the past, this potential is practically untapped with only 38 Tonnes being produced yearly. The second Growth and Transformation Plan forecasts average annual fish production growth at 14%, which primarily engages youth and women in equal levels of dependence, to meet the need for the current and projected fish demand of the country. Accordingly, in the recent developments, government plans for industrialization including the very dynamic Integrated Industrial Parks models are expected to promote the fishery and aquaculture sub sectors. MoLFD plans as the lead sector counterpart underpin the importance of improving support services and an enabling policy framework for development and sustainable management of the fisheries resources, including aquaculture as a means for improving the respective value chains contribution to broad based and pro poor equitable socioeconomic growth and development.

Primarily, aquaculture and restocking of existing fisheries and water bodies such as ponds can be one of the strategies that could benefit from technical cooperation, to complement and enhance the sector contribution to nutritional food security, and secure a sustainable environmental conservation and development pathway for the sector. The aquaculture production could respond to the limited purchasing capacity of the poor by establishing financially sound and replicable models in a suited way to the Ethiopian market demand; as it has happened in Egypt where reared mullet and Tilapia are presently the cheapest, competitive and most readily available sources of animal protein in most areas of the country even when compared with poultry and eggs. In Ethiopia, tilapia and catfish are some of the dominating fish species in the national waters because they have good breeding and aquaculture production potential in the tropics. Common carp and Carassius spp. are not endemic to Ethiopia, but they can be promoted as introduced species, depending on water resources quantity, quality and temperature.

The increment of reservoirs due to intensification of irrigation and construction of hydropower dams can also be used for new fishery resources such as the renaissance reservoir area, which is two times Lake

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Tana area. These significantly increase the fishery resources; create new fishers which require skill capacity to exploit. Technical capacity is needed to develop the value chain and promote awareness of potential producers and consumers; and provide related support services needs to be developed; these activities should be part of this project. Such capacity building will be the focus of the project’s institutional capacity building approach, whereby it will provide upgraded facilities and training to service providers. Specific services for aquaculture will cover the areas of provision of fingerlings, demonstration and extension services. Focusing on aquaculture, information about aquaculture potential is not available, and should be established with recommendations to the relevant service providers’ measures for institutional capacity building from national to local levels to promote the nascent fisheries industry, and services to strengthen capacities of the value chains producers.

The specific identified problems to be addressed are presented below:

i) Low institutional capacity (technology and staff) that limits improvement of fisheries productivity

A number of fisheries research institutions exist across the fisheries and water resource-endowed regions of Ethiopia. Universities and research institutions are generally well staffed with researchers and advisers, environmental policy makers and analysts of fisheries natural resources, and extension officials and research has been widely undertaken on fisheries policies, biodiversity and ecosystems. However, training capacities and facilities that link the value chain and address supply side capacity building needs of producers are generally not well targeted, and equipped and staffed for business support services. As highlighted under section A.2, there is need for a holistic institutional capacity building approach, which would address the national level and localised needs of actors along the major fisheries water resources and regions.

ii) Lack of adequate support services that are demand based, coordinated and complimentary to promote a value chain approach to improved fishing, fish processing and marketing, including extension for businesses

On many of the water bodies across Ethiopia, the fish landing sites lack the support and facilities such as the supply of inputs and gears for fishing, and basic infrastructure for processing and marketing the catch. On the shorelines of Lake Tana and its major landing sites in Amhara region, under-utilized post-harvest processing and marketing facilities were observed with poorly managed value chain activities. This challenge was reported on assessments of the two other water bodies in SNNP region, whereby besides the lack of facilities and support services, regulatory governance in terms of a sustainable fisheries management and a functioning fish value chain are not well developed. Institutional capacity with trained extension personnel, which is required to support processing and good handling of catch, is lacking.

Improvement of business services is key to bridging the demand and supply chains; the focus being on targeted interventions along the entire value chain where artisanal fisher folks would have the incentive to ensure sustained fisheries resource management and productivity, post-harvest businesses would reduce losses and improve efficiency, and all actors would be committed to increase efficiency of production and processing practices and distribute fish more widely. Irrespective of such potentially shared benefits, capacity of service providers’ and low operators’ capacity, non-compliance to good hygienic practices and quality and safety guidelines in fish handling, fishing practices, post-harvest handling facilities, scales of operations, and marketing systems of the sector have not transformed for many centuries for instance, fishers mostly make their own fishing gears and equipment from existing natural materials found within the living area, such as fishing-nets and reed boats from papyrus, which

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are usually for a one-person fishing with limited carrying capacity and speed as well as no water resistance.

The identified factors for non-adoption are directly related to, or some are caused by lack of competencies and know-how. On the large part, fishery and aquaculture sector support capacity within the national public extension system is weak or lacking on most water bodies with fishing, and limits greatly development potential of the sector and its actors. This is partly due to the background of Development Agents limited to agriculture and livestock sector related research, training and extension skills.

The reliance of traditional fishing strategies and techniques strongly limits the capacity of rural fishermen living in remote areas. Hence, by supporting the introduction of adopted fishing practices, well-equipped, trained and instructed local fishers in the community or production level, can be an effective way for sector players to ensure sustainable development and growth of the rural fishing sector and associated fishing value chains. The need and potentials to explore by-product and waste utilization, for instance by integrating fish feed in commercial scale poultry and animal feed formulation was also observed and reported during preparatory assessments by the project team (assessment in April 2014) as a viable activity.

iii) Low productivity, along with an increasingly unmet demand for quality fish and fisheries products, and a growing level of domestically available species by imported

As indicated in the above sections, the needs for addressing the limited capacity of producers and market actors to meet projected growth of demand for quality fish and fish products, and the lack of market information on such opportunities entails greatly improved value chains, reduced wastage and post-harvest losses, increasing the value added of produce, which is catering for different segments of the growing market.

With regard to value addition and minimized wastage and pressure on the resources opportunities, more efficient processing and waste utilization such as the use of fish offcuts with agricultural waste to produce feed meal can be developed with linkages to poultry production, and aquaculture production are not well developed, and support by training modules which are adapted to the conditions of the producers is also lacking.

The unmet demand for quality fish products is indeed already starting to show in fish import patterns of domestically available species and products such as tilapia fillets, and therefore the import trade bill. This justifies the need to promote improvements in the production of quality and safe fish products, along with minimized post-harvest losses and diversified sources of livelihoods.

Still, it is well specified that existing services are not as efficient in improving on productivity, and they are also not benefitting the value chain actors, improvement of fish processing, and strengthening service provider linkages.

iv) Erosion of or lack of institutionalized preservation of local knowledge, skills training on fishing gear and reed boat construction

The local fishers using nets have – namely - a scarcity of appropriate floats, net sinkers (lead or ballasted rope) braided rope and twine as inputs in the fishing segment of the value chain; whereby even easily accessible - local built fishing gear implements that are not readily available. Most of the fishing on the lakes and rivers is by reed boats. While an improvement in gear technology is proposed, attention to

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fisheries sustainability – especially on the large lakes that face threats of overexploitation - would be best if fishing technologies and practices did not change and that the fleet continues un-motorized fishing. To promote this sustainability approach, it is recognized that support to keep the knowledge of making and using reed boats, and making the materials for making reed boats and basic maintenance services (papyrus and boat twining fibres) available, and can be accessed for instance through the Fisheries training centre. Specific retention of know-how and trainings will be devised and skills preservation schemes considered during the inception phase. There is a need to evaluate and implement viable interventions that preserve local knowledge, for instance incorporating a small unit at appropriate technological level to produce recycled plastic fisheries implements such as floats and fish boxes thus extending the scope and introducing replicable training and innovation in waste management as a circular and resilience building economy for sustained fisheries value chain development.

v) Untapped capture and aquaculture production potential

The limited technical support, business management competencies and know-how on good aquacultural practices (GAquaP), particularly in the areas of provision of fingerlings, demonstration and extension services have resulted in the negligible adoption of sustainable farming practices by producers.

Some of the major constraints to the development of commercial aquaculture in Ethiopia include lack of fish farming tradition and related support services, weak supply chains to domestic consumer markets especially subsistence food producers, and low human and institutional capacity, namely lack of training and extension support. As per the baseline assessments, fisheries production potential is underexploited, and together with integrated aquaculture value chains; the sector can grow sustainably and improve contribution to nutritional food security for the population of Ethiopia as projected to exceed 90 million for 2025. At a growth rate of 2.5% per year, the demand for fish as projected to reach 118,000 tonnes by 2025 will exceed current supply three-fold.

In terms of the need and opportunity increasing fisheries production output at affordable cost, the government recognizes the need to develop financially sound and replicable models that address the conditions of the Ethiopian agro and food marketing and consumer demands, whereby aquaculture developments could be matched to address low purchasing capacity of the poor. Understanding of sustainable and good aquaculture practices is improving in the region, for instance in Egypt reared mullet and Tilapia species are widely farmed and consumed domestically as the cheapest and most readily available sources of animal protein in most areas of the country, even when compared with poultry and eggs. Drawing from these experiences and similarities in resource conditions such as the waters of the Nile, technically evaluated value chain upgrading activities are needed, for instance by piloting of relevant technologies coupled with the necessary trainings introduced under the institute as one of the service areas to enhance synergies in the entire subsector.

Moreover, by developing financially sound and replicable models addressed at the Ethiopian market demand for quality fish and fisheries products, aquaculture production could also respond to the limited purchasing capacity of the poor, as it has happened in Egypt, where reared mullet and Tilapia are presently the cheapest and most readily available sources of animal protein in most areas of the country, even when compared with poultry and eggs.

This project responds to the above problem analysis, and primarily considers interventions to address the problems of low institutional capacity within the Ethiopia fisheries sector, the government has proposed to establish targeted vocational training services. The project interventions will support the national vision, of having in place an established national Fisheries Training and Vocational Institute, with capacity

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to provide training and knowledge transfer, including on technologies for multiple fisheries tasks and activities to promote diversified livelihoods and sustainable management of the resources. Institutional capacity building will be achieved through improved service areas of the institute, which will be defined, based on more detailed assessments of vocational and entrepreneurship skills training needs. Moreover, it is expecting to upgrade existing agencies that lack tailored formal and community training programmes, with curricula and training approaches, thereby assisting in the process of unlocking the value chain support and regulatory gaps support for fisheries resource use and management; and establishing a critical mass of extension staff in the country.

To optimize policy impact, the project will promote a ‘process approach’ to improvement of policy coherence of the fisheries industry value chains, and mainstreaming of gender and environmental management considerations. The project intervention will support partnerships for undertaking policy reviews and learning, taking lessons from the project, as well as past value chain analyses and strategic work supported by UNIDO on the livestock, dairy, leather and oilseeds value chains. Through assessments, it will also evaluate and promote opportunities for lesson-learning and development of ‘best practice’ policy guidelines. It is expected that the project supported pilot activities will provide key information that can be used in undertaking empirical analyses, and drawing policy recommendations through the project itself and by partner institutions including technical and policy research centres and academic universities.

A.4. RELEVANT SECTOR POLICIES AND STRATEGIES, AND STAKEHOLDERS

This project is relevant to the GTP II and its national strategies and plans to promote institutional capacity building of the regulatory ministries and agencies. The project falls under the intersectoral mandates of Ministry of Industry and Trade (MoIT), Bureau of Agriculture (BoA) and Ministry of Livestock and Fisheries Development (MoLFD). Data on Ethiopia’s fisheries and aquaculture is a key limitation, particularly concentrating on research work for specific needs, often taking the form of surveys and academic studies and the relevant agencies make no documentation of production volumes and policy related actions.

The section below enumerates the existing fisheries and aquaculture specific regulatory frameworks and instruments, which will be considered as the project draws policy lessons. These include: i) strategic fisheries sector development priorities of MoLFD; ii) the sector specific Federal Fishery Management Proclamation; and particularly Proclamation No. 315/2003 Fisheries Development and Utilization Proclamation; iii) the Agricultural Transformation Agency (ATA) strategy and operational model; and iv) the national industrialisation framework including the Integrated Agro Industry Parks (IAIPs) strategy.

i. The strategic fisheries sector development priorities of MoLFD include: i) implementation of the livestock sector strategy and Livestock Master Plan; ii) an efficient newly established dedicated sector commitments and Ministry of Livestock and Fisheries Resources (MoLFD) separated mandate from Ministry of Agriculture and Natural Resources, (MoANR in 2015); iii) implementing the strategy for value addition and diversification of the meat value chain, which includes the development of the fisheries and aquaculture sector as a driver for rural transformation, nutritional food security and long-term economic diversification; iv) increasing role in the national food security and nutrition committee and policy document, as well as, v) alignment to the Integrated Industrial Parks strategic plan. MoLFD development target is to increase fishery production, and the sectors contribution to the vision of a middle-income economic country status; and a specific target to increase fish production by 14 percent by 2025.

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At the fisheries and aquaculture sub-sectoral level management and regulation, policies such as Fisheries and Aquaculture Development Policy under formulation and the Fisheries and meat Value chain strategic plan foresee creation of institutional capacity and an enabling business environment to promote holistic development of the value chains.

ii. The Federal Fishery Management Proclamation articulates well-defined strategies that are aimed at the development of fisheries, with one of the stated objectives being “to prevent and control over-exploitation of the fisheries resources”. It emphasizes the regulatory measure of ‘command and control even as it highlights the duties of the fishery inspector. Ethiopia has a National Strategy as well as the Development Plan for Aquaculture, both of which address the promotion of fish farming though, currently, with minimal implementation.

The principal sector regulatory instrument for the management of fisheries in Ethiopia is Proclamation No. 315/2003 Fisheries Development and Utilization Proclamation. The law imposes regulations against fishing malpractices and gives guidelines on the recovery of fish stocks. At the federal level, the fishery management legislation, Proclamation No. 315/2003, provides broad guidelines relating to resource conservation, food safety, and aquaculture. It also lays strong emphasis on fishing regulation, fishing permits and the need for fishery inspection, just as it reflects the necessity for fish products to conform to prescribed standards.

Following adoption of the federal Fishery Management Proclamation, the regional administrations are expected to use the enactment as a framework to formulate their own fishery management proclamations. As of 2016 (year of this project formulation), Amhara Region and Oromia Region have developed their respective Proclamations in 2011 and 2012, respectively. The regional legislation articulate similar provisions as the federal policy but with additional measures relating to the creation of employment opportunities in fishing communities, as well as insistence that fishery research findings should be made available to the fishing communities. At the respective fisheries resources, the fishery co-management approach was developed in 2013 for most lakes and reservoirs with the following measures to manage fisheries community development and regulatory activities relating to:

- Licensing a certain number of fishers and fishing gear according to biological limits; - Closed season (June – July) to prevent fishing during one of the tilapia breeding seasons; - Mesh size limitation of 10 cm stretched mesh for gillnets and 8 cm for beach seine; - Progressive reduction in number of beach seines by 50 percent in two years, leading to total

eradication; - Prevention of beach seining in certain areas by placing obstacles in near shore areas and planting

of inshore vegetation; - Closed areas to prevent fishing in designated areas where fish are known to breed. - In general, however, the entire fisheries of Ethiopia are in need of stringent resource monitoring.

iii. Ministry of Agriculture’s Fisheries Section recently upgraded to a Department of MoLFD strategy is intended to estimate and fisheries catch and effort on all water bodies, and update relevant sector plans and policies taking guidance from the Agricultural Transformation Agency (ATA) strategy and operational model to integrate fisheries the main economy as catch is reported below sustainable yields, and aquaculture production is minimally improving.

The project assessment notes the weak capacity in the fisheries sector policy frameworks, whereby the regulatory environment has received fairly comprehensive attention, at the other

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extreme, may be largely irrelevant for the development of the sector when the focus is on regulation. Self-regulation measures are proposed later in the project approach and interventions. The ATA policy and operational model focuses on small holder farmers, operating in similar situations as fisheries value chain actors. Like the agricultural institutional development, MoLFD should also address the gaps of collection and analysis of fisheries disaggregated data by water bodies, species, gender and age group contributions, and distribution of value; and updates of the relevant policies and planning processes, including defining of fisheries value chain investment projects under the IAFPs and other industry-supporting infrastructures. Partners such as FAO, UNDP, Bill and Melinda Gates Foundation are partners to the ATA programmes.

iv. The national strategic plans to upgrade fisheries and aquaculture value chains, which is the main targeted outcome of this project, are expected to involve a number of the Second Growth and Transformation Plans (GTP II) and its sectoral priority strategies, namely the ATP as well as the related industry support strategies such as the development of Integrated Agro Industry Parks (IAIPs). The key stakeholder institutions include ministries; fisheries research centres, university and agro and food industry development institutes and universities are also not adequately coordinated. The institutional mapping is a key deliverable of the planned project inception activities. MoIT as the lead counterpart supporting the industrial parks initiative across Ethiopia, is working with the UNIDO and partners of the ATA and other industry actors such as the chambers of agriculture, industry and commerce; private sector associations and specialised industry support institutions.

Below we present a non-exhaustive list of existing institutions have been consulted during preparatory assessment and project formulation to assess institutional capacities and define potential cooperation modalities:

a) Ministry of Fisheries and Livestock Development (MoFLD) and Ministry of Industry and Trade (MoIT), which have the national mandate to support development of the fisheries and livestock sector, and promote allied fish processing, and inputs manufacturing and support industries.

b) Agricultural and Vocational, Educational and Training Centres: Around 20 Agricultural and Vocational, Educational and Training (ATVET) currently exist in Ethiopia for the prime purpose of providing education and transferring knowledge to farmers. As farmers receive skills-based trainings through extension services and on-site demonstrations, FTCs are a vital component of the ATVET system in Ethiopia. In Amhara regional state, Woreta ATVET is the centre of excellence in the region, located 35km from Bahir Dar.

c) Fishery Research Centres: There are two regional (Bahir Dar and Zeway) and one federal Fishery and Aquaculture research centres - National Fishery and Aquatic Life Research Centre (SEBETA) in operation, having the main mandate of research, and they also provide training to actors along the value chains.

d) Ethiopian Institute of Agricultural Research (EIAR) is a federal research institute consisting of 17 research centres, with a National Fishery and Aquatic Life Research Centre (NFALRC) as one of its specialised centres mandated to conduct, coordinate and support researches on aquaculture, fisheries and aquatic ecology nationwide. The centre provides practical training for graduate students, technical colleges, fishers, fish farmers and other stakeholders to enhance fishery research for development and sustainable utilization of aquatic resources of the country.

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e) Ethiopian Meat and Dairy Industry Development Institute (EMDIDI): Operating at federal level, EMDIDI engaged in fish post-harvest issues and has a specific section, called Fish and Crocodile Processing Technology Research and Development Directorate. The mandate is mainly research and conducting training, introducing technology to private sectors.

f) Universities: There are same universities, which have aquaculture program on a M.Sc. level. Only Bair Dar University has an under-graduate Programme on Fisheries, Wetlands and Wild life Management.

A.5. PROJECT TARGET BENEFICIARIES

i) This project is expected to establish a network of service providers from the existing fisheries support and partner institutions in Ethiopia. Specifically, institutional policy and regulatory support agencies will be supported and capacitated to implement organizational capacity building for fisheries extension workers and relevant staff of support institutions. Benefits will also include better collaboration between and with the key national and regional Bureau of Industry; Bureaus of agriculture, Livestock and Fisheries Development Agencies, Cooperative Promotion Agency (CPA), Bureau of Health and Food Safety (BoH), and Universities.

ii) The second level of beneficiaries project will be the institute itself, which will benefit from capacity building and where the country would have in place an operational and capacitated national fisheries and aquaculture training institute; with adequate human capacity and facilities to promote efficient use of the diverse fisheries resources; and developing a critical mass of skilled and empowered operators of the sector responsible for contribution to sustainable nutritional food security, inclusive and diversified economic livelihoods and sustainable water and fisheries ecosystems and services in Ethiopia. The Government of the Federal Republic of Ethiopia (GoE) has committed to promote rural development and economic diversification by exploiting the resources of the fisheries subsector including aquaculture production. It also notes that the fisheries value chain activities in Ethiopia are primarily rural based; and fisheries related activities involve vulnerable rural producers and households such as women and young people making the sector an important potential driver of equitable rural development. Regional states and communities that are endowed with fisheries resources are infected rated with high levels of poverty and vulnerability to potential food insecurity. Well-developed fishing, processing and marketing capacity can guarantee better quality of fish/fish products; and contribute to improvement of value addition and livelihoods from the diversified income sources.

iii) Fisherfolks, processing enterprises and traders in these locations will be main direct beneficiaries of the proposed services; benefitting from introduced technologies and vocational skills trainings, and developing diversified value added products and markets. And as part of the incubation and skills matching activities, value chain actors, such as retail traders will be networked with women that have some basic post-harvest operation skills on gutting and filleting of fish.

Support will also be provided to establish aquaculture enterprises, providing them with to access production implements, fish processing inputs, and knowledge and skills to develop viable aquaculture production.

As a long term impact, fish consumers on local, regional and national level are expected to benefit from availability of fresh fish and value added products complying with improved safety and quality standards. Consumer and producers’ awareness activities and extension services will be mainstreamed

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in ten services, to help improving compliance in the segments of post-harvest handling and preservation of fish catch to extend the market value and shelf life of products. The project furthermore undertakes to explore and improve dialogue and governance mechanisms involving fishers and actors who determine the price of catch and wages for the given day based on filleted or gutted fish yield may improve.

iv) The project is expected to have a long term impact on improvement of the business and policy frameworks for fisheries, to sustain livelihoods from the diversified value chains, and per capita nutritional sources and incomes. A business plan will be adopted according to the needs and framework is services of the institute, which initially will be managed under the auspices of Government of Ethiopia, MoLFD. The national level interventions will engage the sector partners to review and adopt relevant lessons that can inform the requisite national policies and regulatory frameworks, and leverage coordinated sectoral support for development of the fisheries sector. Policy analysis and gender disaggregated indicators will be integrated in the assessments planned during the inception activities, as well as during implementation of the project first through drawing lessons from the project and advocacy for their mainstreaming in relevant national plans to sustain the established/or upgraded services of the fisheries training institute.

Additionally, fisheries and extension service providers such as regional agencies, associations of fisherfolks, processors and traders including fish cooperatives can access trainings and key market information, and participate in establishing data and information management systems, such as a market information system and a stock monitoring framework for the fisheries sector as part of the institute services.

Research Institutions, Universities and their researchers and students will be involved as trainers and educators in the targeted themes such as fisheries and aquaculture production technology and practices, business and enterprise development, and environmental; and also as direct beneficiaries.

The specified partners’ roles will be identified during the inception, considering among others the specialised fisheries and Aquaculture Research Centre - SEBETA, the Blue Nile Research Centre, University of Addis Ababa and Bahir Dar, which have expertise in a range of training and education in the fisheries and environmental sector research. These institutions should also have an important role in dissemination of lessons and knowledge transfer to communities and to students through lectures, laboratory-, fieldwork, master- and PhD thesis, and secondment of learners to the institute once it is operational, as well as for work in fishing communities and enterprises. Besides the dialogue and governance mechanism, the institutional networks for knowledge management and skills transfer will be explored and implemented under the project and beyond.

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B: REASONS FOR UNIDO & OTHER PARTNERS’ ASSISTANCE

B.1 UNIDO

This project constitutes an integral part of the UNIDO supported Partnership for Country programme (PCP) Ethiopia. The project is formulated in line with UNIDO-PCP approach for supporting the national and global agenda of Inclusive and Sustainable Industrial Development (ISID) and related Sustainable Development Goals.

UNIDO promotes well-tailored institutional approaches that promote partnership and collaboration and also build on existing capacities. As the project has been formulated in line with the PCP implementation and coordination frameworks, the key counterparts of the project are already involved in planning and committed to support implementation of the project. It is understood that GoE has established national institutionalized mechanisms to oversee these PCP processes, including mobilizing and advisory services to business investments and related interventions supported through technical assistance projects, thereby ensuring adherence of project interventions to the partnership approach. MoLFD and MoIT are co-chair and conveners of the high level - joint sector task force, chaired by the two sector Ministers, assuming responsibility for review of projects every 6 months and acting bas, the technical steering committee to ensure effective implementation, monitoring and reporting.

In the context of UNIDO thematic areas, GC 1 and GC 2 which is the main thematic area of relevance, UNIDO has developed a methodology for vocational training under the thematic area of creating shared prosperity, which emphasises the industrial relevance of vocational skills training, whereby specialised centres focus on skills for employability and entrepreneurial development. The project approach involves supporting human resource capacity development and equipping local institutions to provide business support and related services to target enterprises and communities.

UNIDO Department of Agribusiness Development has in particular a wide range of thematic and sectoral or value chain-specific expertise with capability to implement technical assistance projects and provide advice the counterparts on the factors to consider in identifying a lead vocational and skills training counterpart and host support institutions for the intervention. UNIDO also has experience in assessments that help to identify the Host counterparts may include government or private sector business bureaus, agencies and associations; sectoral chambers of commerce, vocational and technical training institutes, business development services providers and national and local governments. Vocational Skills training interventions target to improve competencies of groups with limited skills for employment such as youth and women as end beneficiaries of the established and equipped institutions.

As indicated in Section A.2, this project builds on the outcome of the Preparatory Assistance project 130111 PA- Support to Ethiopia's water management and fisheries value chain development), which was financed with contribution of Finnish Government funding to the UNIDO Trust Fund for Food Security. The PA project was formulated in response to the opportunities and needs as evaluated in above sections, which had the aim to evaluate and identify cross-sectoral national, regional and local resource contexts, and sector priorities for development of inclusive and sustainable fisheries and aquaculture value chains. The PA evaluated the existing institutional capacity and identified those that would potentially host or support holistic capacity building. Ethiopia has indeed a vast number of research and academic institutions with highly trained personnel, and experts who are actively engaged in the fisheries sector. The rapid assessment of institutional capacity as undertaken through the PA phase noted that the

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limited interface between experts at academic and research institutions and enterprises. Fisheries and aquaculture producers and value chain actors particularly lack the basic support and extension services, including skills trainings in the activities that provide their livelihoods. The PA also established that there might be an underlying challenge of scale and national importance, as major productive sectors such as such as agriculture have invested in skills trainings that benefit and reach across the value chain actors.

This project is therefore proposed to establish a national, institutionally and regional adopted and replicable model for addressing the institutional capacity needs of the sector and its value chain actors, via the establishment of a Fisheries and Aquaculture Training and Vocational Institute (FATVI). The project model is expected to take into consideration capacity building and building synergies with the practices and experiences of other value chain support institutions and agencies. Therefore, , this project ultimate aim is to work with and capacitate through networking, the relevant national public and private industry support agencies and departments as the direct beneficiaries, to drive a sustainable growth pathway of the fisheries sector. These inter sectoral requirements for supporting the fisheries value chain development are in line with the RBM and Thematic codes of UNIDO, which allow systematic planning of programmes and budgets and reporting on the overall organisational agenda of Inclusive and Sustainable Industrial Development (ISID). The project is relevant to all technical cooperation programme thematic areas, namely Creating Shared Prosperity (GC 1); Advancing Economic Competitiveness (GC2).

UNIDO is indeed well placed to provide holistic support, which is targeting policy, institutional and enterprise capacity building levels, by:

i) Ensuring the related sector policies and regulatory measures are adequately coordinated to promote development of the value chains; and

ii) Providing/ introducing adopted business and extension services and training to improve the livelihoods of dependent actors and stakeholders.

In the same way, this project has the aim to promote value addition, good practices for post-harvest management and sustainable exploitation in fisheries resource for employment and income generation. It is based on the value chain approach that UNIDO promotes, by supporting the partners to develop and adopt a range of technical assistance services and investments to drive transformation of economies, and integrating capacity building measures for sustained management of the natural productive resources and development of a pro-poor and inclusive value chains.

The project will be managed by UNIDO Agribusiness Development (AGR) Department staff, and it will be implemented in collaboration with UNIDO thematic areas of policy and statistics, trade capacity building thematic, and energy and environment. Consultations have been held during the preparatory assistance with UNIDO – wide Project Managers responsible for similar ongoing and past projects in Africa (Red Sea State of Sudan, South Sudan, various countries along the coast of West Africa, in particularly a closely related project with the Russian federation was implemented in Sierra Leone; as well as the Africa Great lakes countries targeting Lakes Victoria, Malawi and Tanganyika); and Asia (Pakistan, Vietnam and Cambodia).

The project is promoting the partnership approach; project design and planning for implementation involved the national sector Ministries of industry and trade; agriculture including livestock and fisheries; the relevant regional state agencies, fisheries dependent communities and enterprises including cooperatives, albeit not efficiently operational. These partners are mandated to support project implementation, and contribute to the project interventions. Additionally, in line with the UNIDO

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supported PCP-partnerships for investment and technical assistance approach has been discussed with specialised partner agencies such as FAO, as well as the various national fisheries, water and industry research and policy making counterparts under Government of Ethiopia, and key international development and donor partners. It is hence expected that under the framework of the UNIDO-GoE supported PCP coordination mechanism, specific collaboration mechanisms and synergies with the key partners will be evaluated and validated by the time of approval or following launch of the project.

B.2. RUSSIAN FEDERATION

This project is proposed with support from the Russian Federation. As a growing donor member state of UNIDO (Russian Federation annually contributes 2.6 million USD to UNIDO Industrial Development Fund), the emphasis in cooperation lays on implementation of projects aimed at supporting and developing the industrial sector, introduction of international standards in the field of education, energy, environment, and water, among other areas.

This project will promote the twinning of partners and mobilising of relevant technical expertise and sharing from experiences of the Russian institutions, such as in the areas of development and sustained management of natural resources such as water and fisheries sectors, which have been key drivers of industrialisation and growth; and the experiences from other projects funded by Russia and implemented by UNIDO.

Moreover, the project will be coordinated with, and benefit from the complimentary fisheries livelihoods project, which is proposed for financing contribution and collaboration with Government of Austria, through the Austrian Development Agency (ADA) country strategy and programme in Ethiopia (SAP ID 130267). To ensure sustainability of the outcomes, the project seeks partnerships with local, Russian research and support institutions, and established institutional partners of UNIDO in the respective areas of intervention.

In this context, discussions have been initiated to identify potential Russian partners and complimentary initiatives with Government of Ethiopia. Consultation between UNIDO, Government of Ethiopia and The Russian Federation technical partners identified potential collaborators to this project, particularly the Institute of Marine Technologies of Astrakhan State Technical University and the Administration of the city of Astrakhan; and the Joint Russian-Ethiopian Biological Expedition.

Institute of Marine Technologies of Astrakhan State Technical University

Institute of Marine Technologies of Astrakhan State Technical University is a higher educational institute of Marine Technology in Astrakhan city of Russian Federation. Institute of Marine Technologies was established in 1986 as an institute of Astrakhan State Technical University. The Institute has the successful experience of collaborating with UNIDO through a technical assistance project on fisheries in Sierra Leone building technical capacity in fishing and seafood processing technology. The institute has also along-standing partnership with the Bahir Dar University, the latter being upgraded from Bahir Dar polytechnic college received support of the former USSR for several years. Astrakhan being located on the shore of the Caspian Sea – one of the world’s largest closed or endorheic watersheds – allows the University to provide strong expertise and research field on fisheries in closed water bodies, such as Lake Tana in Ethiopia.

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Joint Russian-Ethiopian Biological Expedition (JREBE)

The Joint Russian-Ethiopian Biological Expedition is the only active and successful scientific project between the two countries, which has been operated for 30 years to explore the Ethiopian biological resources, including fish, mammals, birds and soil animals and plants. The program explores four major areas: ecology and taxonomy of fish, study of small animals, soil zoology, and historical ecology.. The project is also working closely on building local capacity in sustainable fisheries management and promoting local poverty reduction through productive activities. The established under BoA in 1999 in Bahir Dar “Fisheries & other Aquatic Life Research Centre” could also act as partner in the research on lake Tana, as it has a mission to generate, promote and develop fisheries and aquaculture technologies that improve production and productivity of fisheries contribution in food self-sufficiency in the region. The Centre could potentially serve as the base institute for upgrading under project activities.

B.3. GOVERNMENT OF ETHIOPIA

In line with this national food-agro-and fisheries inter-sectoral context as well as the project rationale to enhance institutional and human capacity for development of the fisheries sector, this project intervention is expected to contribute to enhancement of sustainable production and establishment of consumption patterns utilizing Ethiopia’s fisheries resources as well as introduction of the sustainable management to fisheries and the use of the vast fisheries resource endowments.

The project is in line with Government of Ethiopia (GoE) overall national development strategy, which is referred to as the Second Growth (SGII) and Transformation Plans (GTP II) and its relevant strategic sector priorities to promote Industrial-led Agriculture Transformation Plan (ATP).

The GTP II identifies specific inter-sectoral measures for ensuring sustained food security and driving the rapid economic development and transformation of rural livelihoods; and specifically prioritises the need for improvements in food production (predominantly through the rural sector and the transformation of value addition outputs). One priority sectoral development strategy of the GTP II is to establish the institutional capacity for ensuring sustainable resource use, promoting policy and regulatory measures; and enhance overall productivity along agro and food systems.

Specific to the fisheries sector, GoE has prioritised supporting value chains in upgrading and improving productivity of the fisheries sector. Plans for development of fisheries value chains envisage close involvement and benefits to fishers and dependent small-scale enterprises, by leveraging the sector comparative advantage in the face of; fast growing population and domestic purchasing power, an unmet demand for quality fish and fish products and an export potential in the region and beyond.

The objective of this project, which is contributing to an established and operational training institute, is to benefit from the financing contribution of the Government of Russian Federation to UNIDO, and the strategic bilateral partnership with Government of Ethiopia. Project design and implementation planning has benefitted from the technical advice provided by UNIDO Agribusiness Development (AGR) Department; based on the food and agro value chain development approach.

The respective ISID multilateral and bilateral partners supporting the project, UNIDO and Russian Federation have had successful past experiences in collaborating on technical assistance for sustainable management of fisheries, and other industry value chain development projects with a range of member states. This project would be based on the practical experience and lessons-learned from these projects, such as the project that supported “Technical capacity building in fishing and seafood processing technology in Sierra Leone”, resulting in improved services to producers engaged the fishery sector in a

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manner that provides both greater national revenue generation and ensures sustainable fishing practices. It is expected that by establishing a Fishery Training Institute (FTI) this project would help the country to reposition its fisheries sector and to move toward more commercial-orientated operations

As part of the project sustainability strategy, the project outputs are to be achieved through a sequence of institutional support and capacity building interventions that will be starting with inception and baseline activities. The inception phase will establish the host for the project supported – fisheries vocational industry support institute, (hereafter referred to by a proposed acronym FATVI) which will be equipped with appropriate training and knowledge management capacity to provide services that would be coordinated under the overall sector mandates and plans of MoIT and MoLFD, whereby the former is a new Ministry established since 2016.

The operational plan and strategy for sustainability, the project will deliver as a major contribution to supporting development and operation of the Ethiopia national fisheries training institute. Also, it is for supporting the institute to establish operational plans, guidelines, training courses, materials and staff capacities. Institutional capacity building will link to improvement of sector and value chain policy making and strengthening environmental regulation for sustainable management of the fisheries sector and associated industry value chains.

B.3. GENDER MAINSTREAMING

The present practices and value chain activities of fish processing and marketing are rudimentary, and they are mostly controlled by retail traders who engage women to undertake basic post-harvest gutting and filleting at a fee at the sites. The retailers determine the price of catch and wages for the given day based on filleted or gutted fish yield.

The challenge of lack of gender disaggregated data and mainstreaming approaches in fisheries value chains is not only limited to Ethiopia, but it is more deep rooted as the value chain is at a nascent level of development. The Ethiopian government has made progress with regard to gender mainstreaming; primarily the government has set up a national program where equality of men and women is promoted in all developmental activities in general, and women’s participation in the agricultural sector is encouraged at all levels in particular. In agricultural related activities, participation of at least 30% women is obligatory**MOA Guidelines for gender mainstreaming in agricultural sector, Ministry of Agriculture (MOA, October 2011), Ethiopia, Women’s affairs directorate, Addis Ababa, Ethiopia. This project has a strong literacy and skills training component, and therefore considers the low levels of literacy rates in rural areas and among unemployed young men and women. The project baseline as reported by Ethiopian Development Research Institute 2009 indicates estimates of as low as 11 percent and up to 47 percent literacy rate levels among the respective groups, requiring different support measures to improve employability. Hence considering traditional view of gender roles in the fisheries from small scale fishing to processing, men and women assume differentiated roles, the project measures to support equitable development of the value chain will consider the specific specialisations of roles and responsibilities by gender, access to and ownership of resources including trainings and technologies to holistically address the development situations and needs of the actors along the value chains.

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C: THE PROJECT

C.1. THE OBJECTIVE

Developing institutional support and training capacity to promote sustainable and inclusive economic diversification, efficient fisheries and aquaculture value chains and food security as well ascontributing to environmental resource preservation and management.

C.2. PROJECT APPROACH

The vocational training and Fisheries and Aquaculture Training and Vocational Institute (FATVI) will be established based on UNIDO approaches of institutional capacity building and value chains development. The institution is envisaged for use in introducing, training and doing capacity building activities for fisheries. In the context of the project and based on discussion held during preparatory assessment and project formulation, FATVI and other services related to institutional trainings should be located close to major fish production resources and markets including processing and marketing businesses. Also, they should be established in close to existing fisheries and aquaculture support institutions for collaboration and assistance. This participatory approach is proposed throughout the project implementation to enhance the skills and know-how of the established or upgraded vocational training institutes and partners.

The project will benefit from a trust fund financing of Russian Federation and Government of Ethiopia national partners’ contributions to technical and procurement. Considering relevant technical capacities and professional experience available from Russia, it is also said that the project will seek benefit from qualified international expertise from the country by incorporating qualified experts/suppliers in accordance with the Project Document, UNIDO rules and regulation for ensuring its efficiency, transparency and fairness.

The institute operations are based on the value chain development approach as the strategic vision to promote an increase in capture landings, aquaculture output and value added fish preservation and processing. The operators and management of the institute will support the development of training plans, curricula and materials at policy level targeted value chain operators and co-management committees that are reported to was established to complement the centralized fisheries resource management system.

The following interventions are targeted as part of the project approach.

Baseline and Inception Activities:

UNIDO approach is structured through assessment of skills that are needed for a range of functions along the value chains. The assessment activity will include although not limited to: mapping out the institutions and capacity needs for policy and regulatory institutions; design of pilot demonstrations of technologies for improving employability under appropriate conditions of enterprises; and Designs for training tools such as the value chain diagnostic tool, and related sector or industry analysis toolkits, with due attention to underlying gender considerations. Service areas of the proposed fisheries training institute which will be introduced and adopted through the project support are proposed to include, although not limited to the following:

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- Facilities to demonstrate and transfer fish processing technology and techniques to enhance the productivity and capacity of producers for compliance to quality and safety requirements and to support inputs supplies and production

- A section responsible for training on fisheries management, aiming to promote balance between an industrial/small business, community livelihoods and environmentally sustainable development model for Ethiopia’s fisheries sector

- Facilities to promote aquaculture techniques and trainings

- One pilot replicable unit for the local production of fishing gear

- A section responsible for dissemination of improved processing and marketing for fish catch and products to minimise port harvest losses along the value chain

The baseline analysis is the essential first step for detailed planning of the project set up and staff structure, designing the layout and facilities to be established or upgraded at the selected host institutions; and at the same time ensuring due in selection of staff and activities of the institute attention to mainstreaming issues as highlighted in B.3.

To ensure an inbuilt sustainable approach, the host agency will be selected during this assessment, based on criteria for institutional needs and value chain development assessment, by a project expert working in close consultation with the relevant counterparts and the Project Manager. This activity will be taken place during the inception phase. This activity will also generate information required for the preparation of baseline reports and project plans, defining expertise needs and nominations of focal points as required from project counterparts, and mapping out the stakeholders and funding partner(s) who will be involved to ensure efficient implementation management and coordination and of this project. International consultants, national staff as well as staff missions will be engaged as necessary, and coordination and effective communication between key players will be highly promoted during the project planning and implementation.

Civil works and Procurement:

The project aims to facilitate the upgrading of an existing institution targeted at hosting the proposed Fisheries Training and Vocational Institute. Procurement activities will include support of establishing and supervising contracts for the obtainment and equipping of specialised training centres in compliance with the administrative guidelines of UNIDO and cooperation frameworks of the Governments of Ethiopia and Russian Federation.

A fully equipped fish processing and training centre, an aquaculture demonstration unit, and a fishing gear production unit will be equipped under the institute, as major components they also involve staff of the fisheries sector, in particular extension service providers. Along with establishing the multiple physical facilities for the vocational training, the project will support the designated staff and technical operators for preparing the operational strategy and business plan. UNIDO will use the modalities of Individual Service Agreements, Subcontracts and Purchase orders as relevant. Russian partner institutes will be invited to participate in the open competition and tender for sourcing of experts and procurement of goods and services, as potential providers of subcontract services and suppliers of equipment. In addition, when candidates with similar qualifications are shortlisted for any position, project management will consider the balance of gender composition in the project team. Mobilising in-kind infrastructural contributions including allocation of a suitable site and staff in the project will be the

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responsibility of the national counterparts. The set up of the project implementation will be supported by the project coordination personnel and experts recruited for specific project tasks.

Institutional and private sector capacity building:

The project will support preparation of the institute’s operational plans, based on experiences from the Russian Federation partner institutions and other relevant partners. Their knowledge is useful to establish models for reliable self-financing and ensuring allocation of adequate public resources to fisheries resource management. During the project implementation, training of trainers (ToTs) and master trainer activities will be supported. The operators and management of the institute will be involved in the development of training plans, curricula and materials as master trainers. As part of the approach to ensure sustainable services to fisheries producers, the project will develop and test cooperative and enterprise-level technical support and training.

With the support of the institute, engagement and capacity building of cooperatives’ services will be promoted for use in community skills training, ensuring that cooperatives operators benefit from the ToTs and training activities. Another targeted community service that is considered to be a crucial input for sustainability of the sector will be on sustaining the resource conserving reed boat fishing, by ensuring that the flow of traditional materials is maintained at sustainable levels, and by making sure that know-how and local skills are not lost, through a support scheme of “institutionalising Traditional knowledge conservation, documentation and skills trainings”.

The project will make a plan, and if adopted it will support the strengthening of organizational capacities at national and regional levels, involving fisheries community committees in coordination with cooperatives management. The project will assess viability of a proposed national fisheries business association (Ethiopia FBA), taking from the UNIDO supported association models for the leather industries, the textile industries and the oilseeds clusters, among others. The fisheries sector/ value chains association and its platform can facilitate policy dialogue for the successful establishment of a well capacitated and staffed institute, and to enhance the efficiency and governance of linkages with the producers, including cooperatives and networks of fisher communities. A strengthened and operational EFBA platform can support strengthening value chain governance capacity with the strategic objective to facilitate dialogue for establishing resource management and use policies.

The national level impact is integral to the project design. Here the project will take stock of policy lessons that can sustain equitable development and benefits from improved productivity along value chains, and sustained use and management of the resources. This will entail assessments of relevant fisheries development- enabling policies.

The mainstreaming of gender considerations will also be an integral part of the project. A specific project contribution that will be considered is the recommendation and integration in sector plans of gender-disaggregated indicators. Indicators of agriculture and rural development are largely not utilised in policy monitoring and reviews, at GTP and sector levels, and not gender disaggregated.

Visibility:

A project specific communication strategy will be developed at the inception stage for this project.

Communication and dissemination:

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As the Fisheries training institute is expected to introduce good practices on resource management efficiency, the project will support undertaking technical analyses and studies to define business plans and an operational strategy for the institute and sharing experiences and training by Trained Trainers, as well study tour exchanges.

The institute will be capacitated to host an outreach programme; whose mandate will be to start and coordinate the dissemination of good practices for the implementation of existing regulation and good practices. These can assess whether the regulation and support services established under the institute (and those provided by other sector and value chain agencies) are suited to the fisheries value chain operations.

At first, in order to promote and disseminate the progress and lessons of the project, advocacy and communication activities will be undertaken during the project implementation. As highlighted above, UNIDO will work with the relevant partners to develop a comprehensive communication strategy for the project within 3 months after project launching in order to facilitate the flow of information about project activities, results and achievements among project partners including donors, national and local counterparts and beneficiaries. Secondly, the communication strategy will make provision for raising awareness about the initiative and ensuring visibility of the project and its achievements among a wider audience. The promotional activities will include distribution of project information through UNIDO website.

In addition, the established institute will design marketing strategies that may include, but would not be limited to promotion of the project established services. It is foreseen that the advocacy activities will select the most appropriate communication and marketing channels for each of the project envisaged activities, designing the production of promotional materials (i.e. promotional videos, brochures and websites) and broad media coverage in the project country and in selected countries in the region and beyond, including TV channels, blogs and social medias. UNIDO will ensure due recognition of the project partners (Government of Ethiopia and Russian Federation). Infrastructure-related to project activities will carry/ display panels describing the project (including project title, implementing agency - UNIDO - and the donor). The display panels will be clearly visible so that members of public are able to read and understand the nature of the action.

C.3. UNIDO RBM CODE AND THEMATIC AREA

GC1 Creating Shared Prosperity

GC11 Agribusiness and Rural Development

The project foresees the transfer of environmentally sound fish processing technologies to promote sustainable management and industrial processing of fish resources, in a way that preserves the biodiversity of the ecosystems. It is also relevant to the goals of sustained institutional capacity building and partnerships between training facilities in Russia and Ethiopia, thereby contributing to a range of SDGs. The following SDGs are particularly relevant:

SDG2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture

SDG8: Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.

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SDG9: Building resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”.

SDG15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

SDG17: Partnership for the SDGs agenda and related commitments

C.4. EXPECTED OUTCOME

Outcome: Developed institutional capacity for supporting development of small scale fisheries businesses and relevant industries such as inputs providers and fisheries resource management. The long term goal of this project is contribution to the national agro and food sector productivity growth, adding value with employment and food security, and related institutional capacity building. Through the project intervention, it is supposed to a critical mass of human capacity and training facilities with adequate materials would be established. They will contribute to fisheries institutional and sector-wide human capacity building. The project is expected to impact on policy making, regulatory capacity of fisheries resources and the value chain, and enterprises and community level capacity building.

The following specific impacts are expected.

- Institutional level impact through development of adequately capacitated service centres with management of them and trained staff in technical and skills training administration

- A network of service providers from a partnership with academic, research and training agencies and institutions, who will be responsible for trainings and providing advice to improve fishing, post-harvest handling and marketing practices;

- A network of trained extension staff working with and supporting improved management of landing sites and market infrastructures.

To ensure the financial viability of the institute and its service centres, it is foreseen that already during the project time span and beyond, a system where services could generate an appropriate some flow for the future sustainability of the project. The institute would provide a point of call for support and investments in basic infrastructures and production facilities to address the need for improvement of technological skills training, and advice on institutional and regulatory support mechanisms to promote good practices for value chain development policies and regulatory strategies that enhance ecological and socio-economic viability are also expected. However, linkages to production and product markets such as from the aquaculture unit (mature cultivated fish and fingerlings) or from the fish implements production unit (by selling floats and other production to fishers), need to be better evaluated and proposed based on a feasibility assessment.

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C.5. TENTATIVE SCHEDULE OF PROJECT ACTIVITIES (48 Months)

Outcome: Developed institutional support of business services relating to market access, trading and fisheries resource planning and management

Year 1-2 Year 2-3 Year 3-4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Output 1: Baseline report and project plans prepared and validated by counterparts, and relevant stakeholders and funding partner(s) included in project launch, monitoring and visibility, and promotion of services 1. Inception Activities:

- Technical working group validates the project and its implementation plan

- Set up project implementation team, steering committee and office - Project inception/launch

X X

2. Undertake baseline assessment incorporating set up of gender disaggregated M&E project plan and policy review, by in-country project team

X X

3. Prepare plan for trainings, by in-country project team X X X 4. Prepare plan for procurement X 5. Develop specifications and terms of references for procurement, trainings, and

study tour aide memoires X X

6. Prepare plan for study tours with officials of selected sector regulatory institutions and community partners

X X

7. Plan for implementation, and mobilize counterparts exchange visits for experiential learning

X X

8. Undertake monitoring as per project M&E plan; prepare and submit reports to relevant partners

X X X X X

9. Document and support to implement the institute plans on communication of good practices

X X X X X X

10. Undertake project visibility activities as relevant X X X X X X X X X X X X 11. Organize and implement public awareness raising events and visits to promote

the project supported and established services X X X X X X X X X X

Output 2: Fisheries training institute (FATVI) and business centers established and operated 1. Consultancy to prepare technical layout, and specification of works and materials X X X 2. Construction/Rehabilitation works of FATI including the pilot aquaculture facilities

and the fisheries implements production unit X X X X

3. Commissioning of building and integrated building systems, such as lighting system, HVAC, etc.

X X

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4. Procurement of equipment, material and supplies for the FATI training institute including the pilot aquaculture facilities and the fisheries implements production unit

X X X X

5. Commissioning and installation of equipment; prepare specifications, manage suppliers, host site upgrading and user training

X X

6. Support the Institute management to adopt and operationalize the training strategic and operating plan

X

Output 3: Relevant FATVI services, and curricula and training modules introduce and adopted 1. Identify and mobilize vocational trainers, and establish collaboration mechanism

with partner Russian institute(s) X X X X

2. Establish relevant personnel, and equip institute with training materials and courses (supported by partner institutes in Ethiopia, , Russia as relevant)

X X

3. Define institute structure and organizational strategy, courses and training activities

X X X

4. Implement ToT plan in collaboration with partner Russian institute(s) X X 5. Implement training for institute personnel 6. Pilot trainers training for extension staff, community partner institutions X X X X X X X X X 7. Prepare a business plan for the vocational and training institute (based on ToT

and trained trainers model) X X

8. Capacitate the institute technically by piloting a database for monitoring fisheries resource (targeting at least 2 lakes, rivers) catchment ecology, spawning and stock recruitment

X X X X X X X X X

9. Capacitate the institute to undertake an assessment and update baseline environmental data of the Lake Tana fisheries (as pilot)

X X X X X X X X X

10. Propose and adopt a fisheries resource monitoring system for lake Tana resources; provide relevant training for relevant Institute personnel and partners

X X X X X X X X X

11. MoLFD and partners implement awareness on fisheries regulations X X X X X X X X X 12. Support project and Institute partners to adopt and disseminate the piloted

system on provision of fisheries inputs and extension services; mainstream good practices in relevant national and local government policies and strategic development plans (MoLFD, Amhara LFDPA, private input suppliers)

X X X X X X X X

Output 4: Independent mid-term and terminal evaluation 1. Undertake midterm and final project evaluation as relevant X X

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C.6. RISKS AND MITIGATION MEASURES

Risk Level Potential Mitigation Measure

Effective coordination and collaboration between partner institutions, organisations, authorities and communities are not established

Low High level joint task force of MoLFD and MoIT, co-chaired by the ministers will coordinate and oversee implementation. The project also demand driven and fills an evaluated capacity building framework, as it has been requested by a number of partner ministries and authorities, notably the Federal Ministry of Industry, MoI and Amhara regional State administration. The project intervention is aligned the GoE strategic plans for development of the fisheries sector at national and regional level. Relevant GoE agencies and partners have been involved in formulation and planning of the project, confirmed support to implementation; and define clear roles and responsibilities.

There is an anticipated need for additional capacity and resources to ensure linkage of the established institute’ services to beneficiaries.

Low The project will establish or support if already in place, inclusive consultations with counterparts and stakeholders to ensure linkage of the established institute services and beneficiaries. The implementation of visibility activities as well as promotional and awareness activities of the project services is part of the project activities. The success of the project in achieving targeted results envisages close involvement of the counterparts and community project partners in demonstrations and training activities.

Mechanisms to ensure sustainability of the project results, with sufficient and sustained demand to the project introduced industry services is not in place, not understood or not adopted

Low The project will support defining a demand driven business plan for the institute and the specialized business support centres. The plan will include the sustainability and project exit strategy. Co-financing of complimentary projects and programmes are expected, for instance the project under evaluation by Austria Government establishes a critical mass of demand along the value chains.

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Planned logistics and operational resource provisions, including appropriate host institution are not realized by all responsible stakeholders

Level: Low/ Medium - selection of appropriate host institutions

The project activities include an institutional assessment, which is planned to inform the implementation planning and project validation during the inception phase. The inter-ministerial and sector partners’ high level task force will oversee efficient planning. Logistics and operational resource provisions envisaged as in-kind contributions by counterparts and partner are not reliably available or adequate. The project will ensure that in-kind and cash contributions are realized through approaches to promote partnership and collaboration, such as open dialogue and information sharing. During inception consultations will be held to secure land or an existing infrastructure to host the institute and the schedule for disbursement of donor resources are approved. The project will allocate some funds. They will partially cover operational costs such as training materials, travel and logistics to access project target areas and beneficiaries, and some of the running expenses for the pilot actions.

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D: INPUTS

D.1. COUNTERPART INPUTS

The project will establish strategic partnerships with suitable institutions for effective project implementation and post-project sustainability. These include among others, ARARA, EIAR and Bahir Dar University, which will be mobilized to support the project interventions, as relevant to the respective institutional mandates.

D.2. PROJECT INPUTS

The project will cover the costs for successfully establishing the four basic areas in the project approach: i) Validation of Project Baseline, ii) Procurement and Civil works, iii) Trainings & Institutional Capacity Building, and iv) Monitoring & Evaluation.

The project inputs for the mentioned areas are as follows:

i) Inception activities, including project launch, updating the project baseline information, validation of implementation plan, set-up of the project office and timely start-up of project activities.

a. Recruited Project personnel, namely: International Project Coordinator, National Coordinator, and Project Assistant, reporting to the PCP Coordinator at country level and supervised by the Project Manager, with the responsibility for project administration and monitoring day to day project implementation.

b. Recruited project personnel update project baselines, validate project implementation plan; and organize the official project endorsement and Launch Event

c. Project Launch with all relevant partners – donor, government officials, UNIDO, PCP partner funding and development agencies in Ethiopia

d. Start of implementation by Consultant (International or National Expert) to support mapping of the lead project partners and counterparts, and validating their respective tasks will include but not be limited; partly input to the project launch, implementation plan, visibility plan and M&E plan, including updated RBM logframe results, KPIs, targets and means of Verification in line with Government of Ethiopia’s relevant sectoral, industry and national development planning, budgeting and monitoring frameworks.

e. Prepare plan for procurement, trainings for first 12-15 months and study tours.

ii) Procurement and Civil works

a. Set-up of a project office, materials and inputs

b. Procurement by purchase order and subcontract modalities for physical establishment of a facility for trainings and institutional capacity building, including designs for the training institute; rehabilitation of the training institute building, and equipment and supplies

c. Commissioning of the building integrated systems and installed equipment

d. International and national consultants will be recruited as, and when needed to support baseline assessments and implementation of procurement and capacity building activities.

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e. Staff and Partner Contracts and Missions: Expert staff of UNIDO, consultants and counterparts including GoE and Russian institution officials under individual contract and sub contract options to support infrastructural set up and content development will be able to undertake missions under this budget, with the aim to provide overall guidance for effective implementation of the procurement and civil works.

iii) Trainings & Institutional Capacity Building

a. Expert to support project counterparts to develop and validate training plans, curriculum and materials. Experiences of UNIDO staff, and Russia experts and other partners will be involved in establishing models for reliable self-financing

b. Consultants or sub-contract to support the undertaking of technical analyses and studies to define business plans and an operational strategy for the institute

c. Study Tour input will enable exchange visits for officials of selected regulatory institutions and community development partners, based on an assessment of the cost efficiency for such exchanges. An alternative consideration will be inviting experts including private sector fisheries value chain actors to training activities for sharing of experiences and dissemination of best practices.

d. Training of trainers (ToTs) and establishing “Traditional knowledge conservation” support scheme will be undertaken by the project coordination personnel, supported by consultants when needed.

iv) Implementation, Coordination and Monitoring

a. It is expected that the donor will participate in the project at mid-term and final evaluations, as well as the steering committee. The representative official will be communicated to UNIDO.

b. The donor may also recommend a representative to participate in periodic monitoring missions and meetings as relevant.

c. The project has budgeted activities to develop and implement the plan for communication, and documentation of project related events and activities such as the launch, trainings, exchange visits and field visits

d. Advocacy and communication activities will be undertaken during project implementation.

e. The communication strategy will make provision for raising awareness about initiative and ensuring visibility of the project and its achievements among a wider audience.

f. The inputs of the project coordination team include project monitoring as per project M&E plan, and reporting to respective partners. Inputs to facilitate consultations and partner briefings are included under the coordination and visibility budgets

g. At established monitoring and evaluation intervals, mid-term evaluation and final evaluation will be undertaken by a team recruited through the project, under the coordination of the national counterparts, UNIDO and the donor. Project monitoring and evaluation will be undertaken as per project M&E plan, giving due attention to update of disaggregated data, and ensuring reports are submitted to respective partners

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F: MONITORING, REPORTING AND EVALUATION

UNIDO will be responsible for management of the project, and provide the donor with periodic technical progress reports and financial statements on an agreed (biannual or annual) schedule and a final progress report of the programme.

The project coordination team will be comprised of UNIDO assigned lead Project Manager (PM) and a project funded International Project Coordinator based at headquarters, who will oversee overall project planning, implementation, monitoring and reporting; and managing day to day administration of the project. As the responsibility of the UNIDO Project Manager, supported by project implementation team (NPC and Project Assistant), the project will be subject to a review, reporting and evaluation process in accordance with UNIDO policies and procedures. Special attention will be given to the participation of the beneficiaries in the project monitoring process. Monitoring modalities will be agreed upon by the Project Steering Committee and adopted by the coordination team and experts during the first months of the project. A project monitoring and evaluation plan will serve as a management tool to ensure effective and efficient project operation.

Project monitoring will include periodic review meetings and progress reporting by project personnel and counterparts (see timeline table), while evaluation is expected to constitute mid-term and final evaluation. Project monitoring and evaluation will be undertaken in line with the Log-Frame (Annex 1). Reporting on the project progress and final evaluation will be undertaken in accordance with UNIDO’s guidelines and procedures on evaluation of technical cooperation projects.

Progress of project activities will be regularly reviewed, jointly by the donor and UNIDO, according to the project monitoring and evaluation plan, and emergent specific review needs. As such at least two monitoring missions (one mid-term and one at the end of the project) will be organized for representatives of the project donor to the project site.

Project Implementation and Coordination Arrangements

The project will be managed by the UNIDO Headquarters under the Agribusiness Development (AGR) Department at; with the support of the Ethiopia Regional Field Office of UNIDO (ERO).

The project main counterpart, the Ministry of Industry and Trade (MoIT), will constitute and host a project steering committee (PSC) which shall be aligned to or integrated in the PCP national steering committee; to avoid duplication. MoIT as lead counterpart for UNIDO PCP and its project will chair the PSC with representation from the Amhara Regional Bureau of Industry and Trade; Amhara Regional Bureau of Fisheries and Livestock Development; Ministry of Fisheries and Livestock Development (MoLFD); Ministry of Agriculture (MoA) and representatives key fisheries sector and PCP development partners; relevant national and regional sectoral and fisheries technical agencies. Representative of the Russian Federation as the Donor; and Staff of UNIDO. Members of the PSC will be identified and confirmed during the project inception.

It is proposed to convene the PSC Bi-annually to review progress reports and validate implementation work plans. The PSC will also support visibility of the project and its partners.

Project implementation and national coordination will be integrated within the PCP implementation mechanism hence the project team will report to the PCP Coordinator, and assume responsibility to manage the day to day operations of the project. Recruitment of a fulltime Chief Technical Advisor (CTA)

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is not foreseen. This assumption will be evaluated during project inception; if needed, the option of split CTA support missions as and when specialized technical support is required will be considered.

UNIDO Regional Office in Ethiopia, particularly the UNIDO Representative and PCP Coordinator will supervise the project team, so as to ensure coordination and operational support functions are aligned to the PCP implementation framework, and to facilitate smooth day to day implementation. The viability of a project implementation unit will be evaluated during inception and institutional assesments, ideally the project team is expected to operate as an integral part of the host agency. This approach is aiming to ensure sustainability and institutional ownership of the project investments and results.

The project coordination team at UNIDO Headquarters will be comprised of an assigned lead Project Manager (PM) and a project funded International Project Coordinator; while the implementation office is expected to be staffed with a National Project Coordinator (NPC) and Project Administrative Assistance (PA) as the core staff of the project management and implementation team in the country. UNIDO assigned PM will be responsible for guiding the project personnel and counterparts to ensure coordination and mobilizing complimentary services of the relevant technical, administrative and finance services. The coordination team will oversee for overall project planning, implementation, monitoring and reporting; and managing day to day administration of the project.

G. LEGAL CONTEXT

The Government of the Federal Democratic Republic of Ethiopia agrees to apply to the present project, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Government, signed on 26 February 1981 and entered into force on 5 November 1984.

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Annex 1: Logical Framework

Development Objective: To sustain productivity of the fisheries sub sector and its contribution to rural development and sustained food and nutritional security through the building of a Fisheries and Aquaculture Training Centre and training activities aimed at the public staff, actors along the value chain and private sector investors. Results Measurable Indicators Means of verification Assumptions & Risks Project Objective: To contribute to diversified economic development and efficient muse and management of fisheries resources in Ethiopia.

- % fisheries contribution to rural livelihoods (measured by incomes of producers and per capita fish consumption)

- Increase in no. of youth, and women engaged in fisheries livelihood activities

Project baseline data; vs. periodic monitoring and evaluation reports; Regional and national government statistics

Sustained absorption of project output by the beneficiaries particularly along the fisheries value chain.

Outcomes Outcome: Developed institutional capacity for supporting development of fisheries small scale businesses, support industries such as inputs producers, and fisheries resource management

- Evidence of producers sustained demand for support services of the institutions, including cooperatives

- Dedicated fisheries support resources allocated by regulatory agencies

Baseline studies; project progress reports; Activity/Training evaluation reports

Effective coordination and collaboration between partner institutions, organizations, authorities and communities is not established; Financing for the project is realized

Outputs Output 1: Baseline report and project plans prepared and validated by counterparts, and relevant stakeholders and funding partner(s) included in project launch, monitoring and visibility, and promotion of services

- Project launch - Implementation plan, year 1 endorsed - Counterparts identified, validated and partnership arrangement in

place - Project monitoring and evaluation plan implemented - Project visibility implemented (number of visibility activities and

events)

Report on Launch and media coverage; Mission reports; Study tour report and documentation Project monitoring, evaluation reports; Websites, brochures, newsletters, photographs, UNIDO website updates and social media communication

Effective contribution of assigned expertise, Beneficiaries understand the relevance and need of fisheries resource management Regulatory agencies have capacity for engaging and supporting the project, and adopting the plans for sustainability.

Output 2: Fisheries training institute (FATVI) and business centres established and operational

- one institute (FATVI) established and operational - institute centres are equipped - procured investments - training plans involving 3-4 fisheries sector partners across the

country - # of fisheries businesses supported

Procurement reports; Commission report

Delayed delivery of equipment, supplies, and materials Adaption of construction works by locals; Environmental impacts of construction; Equipment and facilities installation and

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- Training institutions: % of female/male staff trained. operational deficiencies

Output 3: Relevant FATVI services, and curricula and training modules introduce and adopted

- At least 2 Ethiopian fisheries and industry support institution' management and workers twinned with relevant Russian partner institutions; 2 cooperation agreements established

- 20 skilled staff recruited and equipped to operate the institute - within the project duration, the target will be to reach at least

estimated 3,500 fisheries on Lake Tana - Plan for replication of trainings implemented with fisheries industry

support agencies and partners at national level, targeting at least another 2 regions)

- Selected trainers/ staff of partner agencies and cooperatives support staff trained.

- selected women/youth benefitting from the project, by engaging in fisheries and diversified businesses - % Female participation in the youth and trainers beneficiaries - proportion of trainees female/male - % of women local trainers - % of female/male of skilled staff recruited and equipped - % of female/male trainers/staff of partner agencies and cooperatives support

staff trained - % of female/male staff of Fisheries training institute (FATVI) - at least % of female-owned of fisheries businesses supported

Activity reports; Training evaluation reports; Plans and performance reports ministries, Amhara regional government, Woredas and community councils

Target beneficiaries are willing to participate in project activities such as trainings or use of shared facilities Fisheries dependent communities and target beneficiary partners support the project; participate adequately in the activities and mobilize prerequisite investments and in-kind contributions

Output 4: Independent mid-term and terminal evaluation

- Project evaluation Project evaluation reports Beneficiaries understand and support the evaluation activities, and disseminate evaluation results