UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project title: Business innovation and enhancement of international competitiveness of micro, small and medium enterprises in Colombia

Project ID Number: 180159

Area/Location/Countries: The Americas, Colombia

RBM code: HC2 Adv. Econ. Competitiveness Thematic code: HC21 Invest. Techn. & SME Dev.

Planned Start - finish date: 01.06.2019 – 31.05.2021

Duration: 2 years

Government Co-ordinating agency & Executing agency/cooperating agency: UNIDO ITPO Korea

Counterpart: - The State Government of the Department of

Santander

- The City Government of Bucaramanga

- Chamber of Commerce of Bucaramanga

- Regional Commission of Competitiveness of

Santander

- Free Trade Zone Santander (Zona Franca Santander)

- National Apprenticeship Service (SENA)

- National Federation of Merchants(FENALCO)

- Association of Hotel and Tourism of Colombia

(COTELCO)

- National Association of Businessmen of Colombia

(ANDI Santander)

Other counterpart organizations could be identified during

the preparation phase.

Budget: KRW 59,254,200 (2019), KRW 56,502,260 (2020)

Brief description:

This project proposal is based on a request by ITPO Korea. ITPO Korea is a part of the UNIDO ITPO

Network. Since its establishment in 1987, it has successfully implemented a number of activities in the

area of investment promotion and technology transfer. ITPO Korea has contributed to facilitating

foreign investment and technology transfer from Korea to developing countries.

ITPO Korea is determined to provide value-added advisory services to Colombia’s public and private

institutions in identifying and implementing policies which will support business innovation and

internationalization of MSMEs in the Department of Santander, Colombia. Topics to be covered will be

investment promotion, technology promotion and transfer, development of technical skills for the

diversification of the economy in the Department of Santander, Colombia.

Over the years, UNIDO has helped the country develop industrial sectors generating dynamism and

wealth. Since its foundation, UNIDO has implemented more than 150 projects in the country. Today, as

industrial policy is again regarded as an important factor that facilitates business innovation in the global

context, UNIDO cooperates with Colombia at various levels, including the formulation of evidence‐

based industrial policies to promote sectorial competitiveness.

One example of a UNIDO projects, which is currently being implemented in Colombia, targets the

automotive industry (SAP ID 15066), and it is funded by KOICA. Its overall objective is to foster

Colombia's integration into the regional and multilateral trading systems / supply chains by enhancing its

trade capacities, competitiveness and performance. The project-specific object aims in particular at

enhancing the quality and productivity of the automotive supply chain. This project is seen as a reference

point, and there are opportunities for collaboration between Korea and Colombia, especially because a

variety of successful Korean initiatives and support institutions have already been identified, which

could serve as a benchmark and best practice example for Colombia.

Approved:

Signature: Date: Name and title:

On behalf of ------------------- ------------------- -------------------

On behalf of

UNIDO: ------------------- ------------------- -------------------

A. CONTEXT

A1. Project Purpose

ITPO Korea is determined to provide value-added advisory services to Colombia’s public and private

institutions in identifying and implementing policies which will support business innovation and

internationalization of MSMEs in the Department of Santander, Colombia. Topics to be covered will be

investment promotion, technology promotion and transfer, development of technical skills for the

diversification of the economy in the Department of Santander, Colombia.

Over the years, UNIDO has helped the country develop industrial sectors generating dynamism and

wealth. Since its foundation, UNIDO has implemented more than 150 projects in the country. Today, as

industrial policy is again regarded as an important factor that facilitates business innovation in the global

context, UNIDO cooperates with Colombia at various levels, including the formulation of evidence‐

based industrial policies to promote sectorial competitiveness.

One example of a UNIDO projects, which is currently being implemented in Colombia, targets the

automotive industry (SAP ID 15066), and it is funded by KOICA. Its overall objective is to foster

Colombia's integration into the regional and multilateral trading systems / supply chains by enhancing its

trade capacities, competitiveness and performance. The project-specific object aims in particular at

enhancing the quality and productivity of the automotive supply chain. This project is seen as a reference

point, and there are opportunities for collaboration between Korea and Colombia, especially because a

variety of successful Korean initiatives and support institutions have already been identified, which

could serve as a benchmark and best practice example for Colombia.

A2. Baseline Scenario

Colombia has been one of the fastest-growing economies in Latin America, driven by a boom in commodity

prices and surge in foreign direct investment (FDI) inflows, causing poverty levels to steadily fall. Colombian

FDI inflows benefit from a variety of factors as follows:

- Colombia ranks 59th

out of 190 economies in the 2018 Doing Business classification established

by the World Bank, thanks especially to major improvements in business creation.

- Colombia is one of the countries in Latin America which has opted for an open economy and free

trade. This environment, combined with the solid macro-economic management, has encouraged

investment, especially in the extractive sector, and therefore has generated significant income for

the country resulting in improved living standards.

- Especially, the ratification of a bilateral free trade agreement with the US in October 2011 and the

establishment of special regulations in the free trade zones have contributed to improving the

country’s attractiveness as a target country of foreign investment.

- The peace agreement with the rebel group FARC is supposed to accelerate FDI flows to the

country.

- The government is committed to implementing a long-term development programme in rural areas

in Colombia. This action is expected to attract investments in the infrastructure (transport, energy,

tele communication) and construction sectors.

- The richness of the country’s natural resources is Colombia’s main asset.

In this context, the government has attempted to further foster the country’s economic stability and to support

private enterprises through indirect measures, such as a favorable system of taxation, the extension of credit to

new industries, and the export promotion policies.

Especially, the export promotion policies have been based on the adoption of commercial services and

incentives, but without activities designed to increase business productivity and competitiveness. Therefore, the

policy has not guaranteed a sustainable growth of the export supply, nor of export diversification. Moreover,

while it is true that trade policy instruments affect exports, the absence of a plan to link those instruments makes

it difficult to determine the contribution of each of them to the aims of the State.

Policies are therefore required to integrate all trade promotion activities, and to improve productivity and

competitiveness.

Santander is one of the Colombian departments with fast-growing economies and industrial development. The

department is the fourth most competitive department in the country with business dynamics and large natural

resources.

Agriculture is one of the main sources of the department’s income, especially due to the production of cocoa,

pineapple, tobacco, coffee, sugarcane, cassava, banana, papaya and fique. Other main industries are food,

textiles, garments, and tobacco, and in recent years, transportation, commerce and tele communication industries

have been continuously expanded. Also, Barrancabermeja, one of the main cities of the department of Santander,

is home to the largest oil refinery in the South America.

Despite the department’s large economic growth, Santander still has some problems that need to be solved as

follows:

- There is no regional public policy to promote the internationalization of Santander and no Secretariat

of economic development and internationalization;

- In 2017, only 3% of the region’s companies made export performance;

- Most companies in Santander show lack of knowledge and skills to generate market intelligence as

well as lack of experience in foreign trade operations;

- Since the department’s territory is very rugged due to the presence of the Eastern Cordillera, it suffers

from poor road infrastructure, which generates high transportation and logistics costs;

- Santander’s rates of poverty and income inequality, as well as its gender gap in labor force, are above

national average, hindering economic growth and job creation.

A3. Main Target Groups

- The State Government of the Department of Santander

- The City Governments of major cities in the department of Santander including Bucaramanga

- Chamber of Commerce of Bucaramanga

- Free Trade Zone Santander (Zona Franca Santander)

- Regional Commission of Competitiveness of Santander

- COTELCO(Association of Hotel and Tourism of Colombia)

- SENA (The National Apprenticeship Service)

- ANDI Santander (The National Association of Businessmen of Colombia)

- Acodres (Association of Industrial Gastronomy)

- UNAB (Autonomous University of Bucaramanga)

- UIS (Industrial University of Santander)

A4. Stakeholders

The programme considers the following direct stakeholders:

- Korea International Cooperation Agency (KOICA)

- UNIDO, UNIDO ITPO Korea, UNIDO Country Office of Colombia

- The State Government of the Department of Santander

- The City Governments of major cities in the department of Santander including Bucaramanga

- KIAT (Korea Institute for Advancement of Technology)

- SBC (Small & Medium Business Cooperation)

A5. Synergy

UNIDO currently operates eight projects in Colombia and two of them are funded by KOICA. Since a variety of

opportunities for future collaboration with Korea were identified through the on-going projects, this programme

would be able to play a key role in their follow-up stage. Considering some of the UNIDO projects are focusing

on the Department of Santander, it needs to be taken into account to create synergy with those projects.

External experts, academics, and private-sector managers will be consulted on the research topics in which

UNIDO has limited experiences. The external inputs will be integrated into UNIDO work so the programme can

be successfully delivered.

The programme also expects to generate synergies with the relevant regional bureaus in charge of UNIDO

projects. It will be carried out under the umbrella of ITPO Korea in synergy with its other activities. It will also

seek synergies with other ITPOs located in Bahrain, the People’s Republic of China (Beijing and Shanghai),

Germany, Italy, Japan, Nigeria and the Russian Federation. The programme will be implemented in

collaboration with the Country Office of Colombia, which covers, inter alia, Guyana, Peru and Suriname. It will

also benefit from technical linkages with other UNIDO services, including the Departments of Trade,

Investment and Innovation, Environment and Energy.

B. UNIDO APPROACH

B1. Rationale

The crucial role of industry as a driver of economic growth is recognized by the 2030 Agenda for Sustainable

Development, and particularly by Sustainable Development Goal (SDG) 9: “Build resilient infrastructure,

promote inclusive and sustainable industrialization and foster innovation”. Donor and the recipient country have

called upon UNIDO to significantly expand its service provision beyond existing technical cooperation activities

to include a variety of upstream functions such as analytical, advisory, normative, convening and capacity

building that can strengthen policy making. In particular, the Director General has announced three management

priorities in 2018 (Extended Board of Directors Meeting, January 2018)

1. Integrating and scaling up in a global context

(…)

- More effectively measure, monitor and demonstrate UNIDO’s contribution to the advancement

of the 2030 Agenda, in particular SDG 9 and industry-related goals and targets.

(…)

2. Improvements towards effective implementation and innovation

(…)

- Continue efforts to access further financial resources

- Build capacities to deliver more, balancing available skills/knowledge and human resources with

external expertise; replicate best practices and success stories as a means for scale-up.

(…)

3. Strengthening partnerships

(…)

- Expand and take concrete actions to utilize relations with international financial institutions,

UN partner agencies, regional institutions, intergovernmental organizations, as well as the

private sector.

- Continue working with various partners in the field, including with UN Country Teams,

governments, donors in the field, the private sector, etc.

(…)

A key instrument for delivering skills/knowledge and human resources with external expertise is capacity

development, particularly in the form of tailor-made programme aimed at improved capabilities in policy

implementation. Continuous involvement in this work would ensure that UNIDO’s knowledge generation and

dissemination capacities are leveraged to assist countries with their industrial development efforts. It is also

expected that high quality capacity development initiatives will strengthen knowledge foundations and skills of

participants in regard to the effective management of sustainable industrial development processes. High quality

trainings resulting in the enhanced knowledge and skills will in turn lead to a better understanding of industrial

development needs, more rapid identification and development of priority projects, and more effective

development policies.

B2. Comparative Advantage

Since its inception, in response to the demands of its member states, UNIDO has been involved in the capacity

development of developing countries, promotion of foreign investment and technology transfer. The

organization has a well-recognized experience in conducting capacity building activities on inclusive and

sustainable industrial development for developing countries. A wide range of projects use existing UNIDO

expertise and best practice to complement institutional capacity building targeted by UNIDO’s technical

cooperation activities. This approach builds on existing resources optimizing both networks and partnerships in

a strategic manner.

Training courses such as this programme aims to foster the creation of learning opportunities for policy makers,

industrial development practitioners, researchers and people working in the industrial development community.

The programme will expand the organization’s opportunities for knowledge generation and dissemination. Such

opportunities capitalize on UNIDO’s long expertise in several aspects of the industrialization process, covering

the sustainability and inclusiveness dimensions of economic development. The programme will thus take

advantage of UNIDO’s long-standing practical experience in assisting with the development of inclusive and

sustainable industrial policies in developing countries.

UNIDO also has a strong presence in donor country, Korea as well as target country, Colombia with good

linkages to local institutions and business community to act as a facilitator of international industrial

cooperation. Through this presence, UNIDO has access to policymaking organizations, industrial related

institutions, investment and technology transfer opportunities.

B3. Inception Phase

During the inception phase, there will be frequent discussions among the donor (KOICA), project partner

(UNIDO ITPO Korea, Country Office of Colombia), stakeholders (the Department of Santander, Bucaramanga

City Hall) in order to design in detail the agenda of each course, to select lecturers, advisors and participants.

B4. Sustainability Strategy

The programme is the initial stage to set up a long-term capacity building partnership between KOICA and

UNIDO. There are prospects for continuation of the present programme (widening the range of topics and

geographical coverage), in case of a successful completion of the pilot training.

B5. Gender Mainstreaming Strategy

The Colombian government has made considerable efforts with regards to improving gender equality and

mainstreaming in the political, social, and economic levels through legislating various policies and

implementing them on both national and regional levels. Subsequent to the UN Security Council Resolution

1325 on Women and Peace and Security in 2000, the Colombian government recognized the importance of

solving its gender inequities, guaranteeing women's rights in rural areas, improving political participation of

women, and addressing the rights of victims from armed conflict1. Based on this, the Final Peace Agreement of

2016 was passed, emphasizing the need to improve women's political, social, and economic conditions. As of

2018, it has been analyzed that the implementation has been progressing, with 66 percent of all stipulations

reaching some levels of implementation.

Moreover, Colombia has made great efforts to comply with the Committee on the Elimination of Discrimination

against Women, in which the ninth periodic report in February 2019 showed that Colombia has sought to

eliminate all forms of discrimination against women and has been working on strengthening the integration of

1 https://www.ohchr.org/en/countries/lacregion/pages/coindex.aspx

gender in all levels of government. To be specific, the National Gender Commission has been created in the

judiciary branch to pursue gender mainstreaming and the institutionalization of gender equality within the

administration of justice. In addition, for the first time in history, a woman held the position of Vice President

along with women heading 16 ministries in the Colombian government.

Colombia also emphasized the need for women's economic empowerment and inclusion in the labor market

through enacting its "National Development Plan 2018~2022: Pact for Colombia, Pact for Equality". Within this

plan, several initiatives sought to enhance labor opportunities especially for indigenous women and women of

color. Also, it placed education as a critical means to guarantee equity and eliminating gender gaps in the labor

market. For this reason, a multi-sectoral and cross-cutting strategy for children and adolescents 2015~2021 had

been put in place, empowering adolescents to plan their lives and get access to necessary services.

In regards to implementation, Colombia has made significant progress in providing more opportunities for

women to develop their careers. Its female employment rate, measured for women aged 15-64, increased from

46% in 2001 to 56% in 20152. To further provide more opportunities for women and reduce the gender gap, the

government has made significant efforts such as creating a special unit on gender issues in the Office of the

Presidency (Consejeria presidencial para la equidad de la mujer) and introducing a programme – Equipares –

which provides a quality seal for companies if they meet certain good gender practices. The program includes

training in attitudes, enhancing opportunities, and developing skills. In addition, the government is also offering

tax incentives for companies that hire women, in particular for victims of violence and/or over 40 years old.

In line with Colombia's efforts on enhancing women's rights and promote gender mainstreaming in various

fields, UNIDO will seek to address gender issues by involving women in the programme's activities from both

beneficiaries and counterpart institutions.

Gender issues within the context of the programme will be addressed by the involvement of women in the

activities from both beneficiaries and counterpart institutions. The impact of the programme’s activities on

women’s development will also be considered. All trainings, workshop and site visits will aim to engage at least

30% women.

Considering the proportion of female in the public organizations of the Department of Santander is over 40%, it

is expected that men and women have equal participation in the annual courses received within the framework

of CIAT programme.

The programme will also engage local gender/women’s groups, associations, NGOs and gender focal points in

ministries or other governmental institutions to participate in the implementation of the programme with respect

to gender.

B6. Environmental and Social Assessment

The UNIDO Lima Declaration states that effective measures towards inclusive and sustainable industrial

development should encompass enhancing productive capacities in a way that “promotes the sustainable use,

management and protection of natural resources and the ecosystem services they provide; and supports related

research and development”.

Although the project focuses on the capacity building activities, it also aims to promote the opportunities of

transferring green technologies from Korea to Colombia in the long term. To achieve this long-term goal, study

tours will be organized to the Korean facilities that are paying special attention to environmental impacts and

2 https://www.oecd.org/eco/surveys/Colombia-2017-OECD-economic-survey-overview.pdf

productivity improvement to increase energy efficiency. During the technology transfer-related activities,

environmental and social risks will be addressed as important factors to be considered.

The main indirect beneficiaries of the programme will be MSMEs in Colombia. MSMEs play a significant role

in job creation and income generation hence contributing to poverty alleviation and social inclusion.

Furthermore, increased foreign and domestic investment can produce a positive impact on direct and indirect

employment creation due to the positive effects of business expansion on the entire value chain.

The E&S (environmental and social) screening template has been completed and the project was classified as

Category “C”, which entails no further actions. Category “C” of the template implies that the project is likely to

have minimal or no adverse social and/or environmental impacts. No further specific environmental and/or

social assessment is required during the project formulation, although those with procurement components may

still have potential environmental and social sustainability considerations. These should be addressed as part of

the regular project design activities and through UNIDO’s procurement processes, as applicable.

C. THE PROJECT

C1. Project Logical Framework

Results Base Line Target

Outcome Output Activity Estimated

completion date

KPIs/Indicators Total Female Total Female

Outcome 1

The participants are able to design policy for business innovation and

internationalization of the MSMEs in Department of Santander by learning

how Korea achieved export-led growth.

30.4.2021 % of participants strongly agreeing with

the statement that they have obtained new

knowledge & skills as a result of training

which could be used to devise new

policies for internationalization and

business innovation of the Department of

Santander, Colombia

(5-point scale where 5=strongly agree,

4=agree, 3=neutral, 2=disagree, and

1=strongly disagree)

50% 60%

Output 1.1

The participants establish Action Plans with an aim of

developing feasible measures to apply knowledge,

technology and experience learned through the course to

their workplace.

30.4.2021 Number of Action Plans 2 3

Activity 1.1.1 Lectures

Beneficiaries attend lectures from

Korean and international experts such

as professors, industrial experts,

presidents and high-level staffs of

leading companies

30.4.2021 Number of lectures 5 7

% of female participants 30% - 30%

Activity 1.1.2 Trade&Investment

Seminars

Trade and Investment Seminars are

held together with Korean

entrepreneurs who are interested in

business opportunities in Colombia in

order to facilitate business

cooperation between Korea and

Colombia

30.4.2021 Number of seminars 2 2

Activity 1.1.3 Business meetings

Business meetings are organized with

30.4.2021 Number of business meetings 2 2

Korean government to exchange

knowledge on previous experiences

and best practices

% of female participants 30% - 30%

Activity 1.1.4 Industrial Tours

Tours to Korean industrial complex as

well as factory sites are conducted to

promote Korea’s leading technology

and introduce the history of industrial

development of Korea.

30.4.2021 Number of industrial tours 2 2

Project Management and Monitoring 30.4.2021

Evaluation 30.4.2021

C2. Risks & Mitigation measures

In view of the nature of the project – sharing knowledge on industrial policies from the experts to transfer it to the officials from Colombia –, the success of the project, to a

large extent, will depend on the commitment to a collaborative framework. Poor coordination among stakeholders exposes the achievement of the expected outcomes to

significant risks. Assuming close collaboration and coordination with all involved stakeholders and taking into account UNIDO’s previous experience in organizing

capacity building activities, the development and delivery of the present programme has a minimum risk of organizational mistakes/failures/delays.

While some measures have been included to address some of the above risks, the project ought to undergo a regular assessment in terms of efficiency and effectiveness.

Risk Factor Mitigation measures

1. Reactions from call for

participants is below expected Allocation of financial resources for promotional activities

Involvement of UNIDO Country Office in Colombia in promoting the programme

2. Availability of

speakers/panelists for the target dates

of delivering course

Use of the UNIDO network to select suitable speakers and continuously check the availability

3. Lack of coordination

between the stakeholders Constant communication between the stakeholders, particularly between KOICA, UNIDO HQs and UNIDO ITPO Korea

Designing and planning done properly and in secure time.

C3. Institutional Arrangements and Coordination Mechanism The project will be implemented under the oversight of the Trade Investment and Innovation (TII) Department.

The project will be implemented in close coordination with other UNIDO TII projects, (e.g. Project ID:

150066)

The project will be aligned with Colombia’s development priorities, strategies and action plans and with

UNIDO’s ongoing activities in the country.

This project will be carried out under the umbrella of ITPO Korea in synergy with its other activities.

It will also seek synergies with other ITPOs located in Bahrain, the People’s Republic of China (Beijing and

Shanghai), Germany, Italy, Japan, Nigeria and the Russian Federation. It will also benefit from technical

linkages with other UNIDO services, including the Departments of Trade, Investment and Innovation,

Environment and Energy.

The project will be implemented in collaboration with the Country office of Colombia, which covers, inter alia,

Guyana, Peru and Suriname. At the field level, UNIDO is engaged with the UN system and where represented,

it actively participates in monthly meetings and annual United Nations Country Team (UNCT) strategic

retreats. Within the UN System, UNIDO participates in the UN Development Assistance Framework

(UNDAF), describing the collective actions, the collective response of the UN system to national development

priorities.

The United Nations country team (UNCT) in Colombia is working with the Government in support of

programmes for peacebuilding, development and humanitarian response. The 2015‐2019 UNDAF is framed

towards the sustainable development goals (SDGs) and the priorities established by the country’s national

development plan, 2014‐2018, including the building of lasting peace in the country. It is also in line with

international treaties and agreements signed by Colombia. UNIDO contributes with its activities to help the

Government realize its set goals under the strategic priority Sustainable development.

Possible cross-organizational linkages could be found in the UNIDO’s Programmes for Country Partnership

(PCPs). The PCP brings together actors in a multi-stakeholder platform to coordinate and optimize the

contribution of each stakeholder. The objective of the partnership is to accelerate the implementation and

deepen the impact of the government’s industrial development agenda. For UNIDO, it is a model to

operationalize its new mandate for inclusive and sustainable industrial development (ISID).

D. BUDGET ITEMS

D1. Counterpart inputs

KOICA will

- Provide 100% of the funds

- Be in charge of logistical support: flight tickets for participants, accommodation, catering, etc.

- Act as a mediator between UNIDO and Colombian participants

- Select participants from the Department of Santander, Colombia

D2. UNIDO Inputs

- Design overall contents of the programme

- Identify and invite Korean experts as speakers and panelists

- Organize site visits to Korean industrial parks, consultation meetings with Korean enterprises

- Prepare for CI (Course Information), textbook as well as promotional materials including flyers, invitation

letters, certificates, etc.

E. BUDGET

<Budget breakdown 2019>

* UN Rate of Exchange for 5/2019

<Budget breakdown 2020>

* UN Rate of Exchange for 5/2019

Budget

Line Description

Overall Budget

(KRW)

Overall

Budget

(USD)*

1500 Project Travel 12,068,000

10,416.29

2100 Subcontracts 19,750,000

17,046.88

3000 In-service training, conferences, workshops 15,519,345

13,395.26

4300 Premises 300,000

258.94

5100 Miscellaneous 4,800,000

4,143.04

Sub Total 52,437,345

45,260.40

13% Programme Support Costs 6,816,855 5883.85

Total 59,254,200 51,144.26

Budget

Line Description

Overall Budget

(KRW)

Overall Budget

(USD)*

1500 Project Travel 13,072,000 11,282.84

2100 Subcontracts 24,250,000 20,930.90

3000 In-service training, conferences, workshops 7,380,000 6,369.90

4300 Premises 500,000 431.57

5100 Miscellaneous 4,800,000 4,143.02

Sub Total 50,002,000 43,158.23

13% Programme Support Costs 6,500,260 5,610.57

Total 56,502,260 48768.8

<Results-based Budget Structure>

BL Description Year 1 (KRW)

Year 2 (KRW)

Total (KRW)

Outcome: The participants are able to design policy for business innovation and internationalization of the MSMEs in the Department of Santander by learning how Korea achieved export-led growth.

Output 1: The participants establish Action Plan with an aim of developing feasible measures to apply knowledge, technology and experience learned through the course to their workplace.

1100 International experts -

1101 Technical services

1500 Project travel 1,000,000 1,000,000 2,000,000

1600 Staff travel -

1700 National experts & admin staff -

1701 National Technical support service

2100 Subcontracts 19,750,000 24,250,000 44,000,000

3000 In-service training, conferences, workshops 10,000,000 5,080,000 15,080,000

3500 International Meetings -

4300 Premises 300,000 500,000 800,000

4500 Equipment -

5100 Miscellaneous 3,000,000 3,000,000 6,000,000

Sub-Total Output 1 34,050,000 33,830,000 67,880,000

Output 2: Project Management, Monitoring and Self-evaluation

1100 International experts -

1101 Technical services

1500 Project travel 11,068,000 12,072,000 23,140,000

1600 Staff travel -

1700 National experts & admin staff -

1701 National Technical support service

2100 Subcontracts -

3000 In-service training, conferences, workshops 5,519,345 2,300,000 7,819,345

3500 International Meetings -

4300 Premises -

4500 Equipment -

5100 Miscellaneous 1,800,000 1,800,000 3,600,000

Sub-Total Output 2 18,387,345 16,172,000 34,559,345

TOTAL 52,437,345 50,002,000 102,439,345

Programme Support Cost (13%) 6,816,855 6,500,260 13,317,115

GRAND TOTAL 59,254,200 56,502,260 115,756,460

F. MONITORING, REPORTING AND EVALUATION

UNIDO and KOICA will jointly decide on the monitoring of the project as follows:

(a) UNIDO will monitor the project in accordance with its rules and regulations;

(b) UNIDO and KOICA may meet to check the progress of the Project;

(c) UNIDO and KOICA may conduct its own or joint field visits for the purpose of monitoring the Project. The resulting costs of these field visits will be charged at KOICA’s expenses.

UNIDO and KOICA jointly decide on the evaluation of the Project as follows:

(a) UNIDO will be responsible for initiating, organizing and following up project evaluations in accordance with UNIDO’s practice, evaluation policy and guidelines;

(b) UNIDO may consult KOICA on the terms of reference for the evaluation and invite KOICA to participate in the evaluation at KOICA’s cost unless explicitly foreseen in the Project budget;

(c) KOICA may conduct its own mid-term and/or end-of-project and/or ex-post evaluation in consultation and cooperation with UNIDO.

G. PRIOR OBLIGATIONS AND PREREQUISITES

Target organization in Colombia: - To nominate government officials and public organization specialists who are recommended by the

Department of Santander, Bucaramanga, municipal cities and institutions according to selection criteria such as profiles, training, experience, sustainability and gender;

- To organize committee of KOICA CIAT programme to discuss the methodology of provision and how to evaluate and disseminate the performance of the programme.

UNIDO: - To identify participants’ expectations and needs for the programme and design course module accordingly;

- To identify and recruit experts of business innovation and foreign trade for advice and consultation;

- To arrange meetings with Korean government ministries and enterprises interested in Colombian market;

- To prepare all other logistics. H. LEGAL CONTEXT

The present programme will be governed by the basic terms and conditions governing UNIDO projects.

ANNEXES ANNEX 1. Course module of 2019

MODULE MAIN LECTURES & DISCUSSIONS STUDY VISIT

Module I.

Korea’s Economic

Development and SMEs

Development

▷ Korea’s economic development and the export

policies

▷ Korea’s international marketing strategies

▷ Korea’s policies and plans for supporting domestic

SMEs

- KIAT

- SBC

Module II.

Status-quo and trends of

Korea’s major industries

▷ The trends of Korea’s healthcare industry and its

development history

▷ The trends of Korea’s education market and its

development model

▷ The trends of Korea’s tourism industry and its

development history

- Industry and

Academia

Cooperation

Foundation of one

of Korean major

universities

- KTO (Korea

Tourism

Organization)

Module III.

Strengthening of Korea-

Colombia Cooperation

▷ Colombia trade & investment seminar

▷ Discussion to strengthen the partnership between the

city of Bucaramanga and selected Korean cities, such as

Cheongju and Jeonju.

- Korea Council on

Latin

America&the

Caribbean

Module IV.

Country Report and

Action Plan

▷ Country Report Presentation

▷ Action Plan Workshop: Preparation for Team Presentations

▷ Establishment of Action Plan: Team Presentations - Results of Action Plan

Module V.

Understanding Korean

Culture

▷ Seoul City Tour (Gyeong Bok Gung Palace, Seoul Museum of History,

Lotte World Tower and Mall)

▷ Samsung D’light

ANNEX 2. Country report seminar

(1) Guidelines for the preparation for the country report

A Country Report is an in-depth report that contains an analysis of the current issues facing participant’s

countries in their fields of expertise. The program includes a Country Report Presentation session where

participants have an opportunity to share these issues with other participants and Korean experts.

Throughout the course, participants will engage in debates and discussions to resolve them.

The Country Report is directly aligned with an Action Plan. Based on what participants have presented and

discussed throughout the course, participants are requested to present an Action Plan towards the end of the

program with an aim of developing feasible measures to apply the knowledge, technology and experience

learned to their workplace.

Program participants are requested to prepare and submit their Country Report individually or as a group to

the UNIDO Program Manager via e-mail no later than June 5, 2019. The Country Report should be typed in

English and double-spaced in MS PowerPoint or Word format. The length of the report should not exceed

twenty A4-sized pages.

All participants are supposed to make a 15-minute presentation on their Country Report individually or as a

group on the 2nd

day of the program (June 24). For more effective presentations, a projector, slide projector,

overhead projector, and multimedia TV will be available for use. (PowerPoint presentations are preferred).

(2) Topics to be covered in the country report

a. Subject: Identify current major issues that MSMEs’ in Colombia, especially in the department of

Santander, are facing with regard to their business innovation and international competitiveness

b. Details of Country Report Preparation

● Organization introduction

- Introduce your organization including vision, mission, main roles and activities, personnel,

relevance to the Colombian/Santander MSMEs, etc.

● Overview of Colombian MSMEs

- Provide general information on Colombian MSMEs (with a focus on the ones in the department

of Santander) – e.g. the number of MSMEs, firm size by its asset and personnel, major sectors,

import/export amount, etc.

● Analysis on national/departmental environments surrounding MSMEs in Colombia and/or Santander

- National/departmental laws and regulations affecting MSMEs’ operations

- Provide information on major political and economic issues regarding MSMEs’ operations and

their business growth

● [IMPORTANT] Major issues/problems that Colombian MSMEs are currently facing and the reasons

behind the difficulties

- 1) Improving international competitiveness (supporting international marketing activities)

- 2) Industry-academia cooperation (Technology development and R&D)

- 3) Education system in particular foreign language (English) for industrial competitiveness

- 4) Creating jobs especially young people including vocational education

- 5) Attract foreign investment and expand social overhead capital

● National/sector development plans to address the problems

- Summarize major contents of the national/sector development plans which influence the operation

of MSMEs

- e.g. Colombia 2016-2018 Development Plan “All for a New Country”, Santander 2016-2019

Development Plan “Santander Nos Une”, Bucaramanga 2016-2019 Development Plan

“Government of Citizens”, etc.

● Other relevant information

- Suggest any other topics relevant to the MSMEs’ business innovation that need to be raised and

discussed during the session

ANNEX 3. Action Plan building

(1) Guidelines for building an action plan

An Action Plan is a specific plan created by participants on how they can apply their learning to their work

performance. Action Planning is a process which will help them identify their objectives and explore what

steps they need to take to achieve their goals. Establishing and implementing the Action Plan will

contribute not only to their development professionally and individually but also to desirable organizational

change.

A good Action Plan contains detailed information like what can be done, who will do it, and how and when.

Please keep in mind that meeting the financing requirement including budget and timeline is crucial to

make their action plan feasible and applicable to their workplaces.

All participants are requested to make a presentation on their Action Plan individually or as a group at the

end of the course. They are encouraged to make the most of their weekends and free time to further their

knowledge acquired from the course and better build their Action Plan.

Participants can receive feedback from Korean experts who will share their insight and help upgrade the

Action Plan. Even after participants return to their home countries, UNIDO will continue to follow up with

participants on the progress being made through the implementation of their Action Plan.

(2) Topics to be covered in the action plan

a) Design the ways to solve identified problems through “Country Report” session and suggest appropriate

policies to encourage Colombian MSMEs’ business innovation

c) Discuss how it can be applied to your work including a budget and a financing plan

d) Expected results and impact

(3) Steps for the action plan

• [Step 1] Present a Country Report

- On the start day of the course (Day 2), participants are to share their current situation and issues of

their interests through Country Report presentation

- UNIDO will provide an orientation for an Action Plan

• [Step 2] Lecture on Action Plan and Team-building

- Lecture on Action Plan building process

- Team-building according to the selection of Action Plan topic

• [Step 3] Group Discussions

- Brainstorming and group discussions for developing an Action Plan

- Consult with experts and receive feedbacks

• [Step 4] Complete the Action Plan

- Finalize an Action Plan for the development of new policies/programs or upgrade their existing

policies, systems and practices

- Presentation on the final Action Plan and getting feedback