Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 76767-JO
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GRANT FROM THE MENA TRANSITION FUND
IN THE AMOUNT OF US$4.75 MILLION
TO THE
HASHEMITE KINGDOM OF JORDAN
FOR A
SUPPORT TO BUILDING ACTIVE LABOR MARKET PROGRAM
November 25, 2013
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without World
Bank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective October31, 2013)
Currency Unit = Jordanian Dinar (JD)
JD 0.709 = US$1
JD 1 = US$ 1.41
FISCAL YEAR
January 1 – December 31
ABBREVIATIONS AND ACRONYMS
ALMP Active Labor Market Program
CBJ Central Bank of Jordan
CBO Community-based organization
CIDA Canadian International Development Agency
CPS Country Partnership Strategy
DA Designated Account
E-TVET Employment, Technical and Vocational Education and Training
ELE Electronic Labor Exchange
EO Employment Office
EU European Union
FA Framework Agreement
FDI Foreign Direct Investment
FM Financial Management
GDP Gross Domestic Product
GoJ Government of Jordan
JD Jordanian Dinar
JJC Jordan Jobs Compact
JRP Job Readiness and Placement Program
ILO International Labor Organization
IYF International Youth Foundation
KAFD King Abdullah II Foundation for Development
M&E Monitoring and Evaluation
MIS Management Information System
MIJS Market Information and Job Search
MOF Ministry of Finance
MOL Ministry of Labor
MOPIC Ministry of Planning and International Cooperation
NCHRD National Center for Human Resource Development
NEC National Employment Office
NES National Employment Strategy
NGO Non-Governmental Organization
NOW New Work Opportunities for Women
ORAF Operational Risk Assessment Framework
PMU Project Management Unit
POM Project Operational Manual
SOE Statement of Expenses
SME Small and Medium Enterprise
SSC Social Security Corporation
STC Special Tender Committees
STW School-to-Work
UNDP United Nations Development Programme
TORs Terms of Reference
WA Withdrawal Application
Regional Vice President: Inger Andersen
Country Director: Ferid Belhaj
Acting Sector Director: Enis Baris
Sector Manager: Yasser El-Gammal
Task Team Leader: Moukim Temourov/Iqbal Kaur/Setareh Razmara
HASHEMITE KINGDOM OF JORDAN
SUPPORT TO BUILDING ACTIVE LABOR MARKET PROGRAM
TABLE OF CONTENTS
Page
I. STRATEGIC CONTEXT .................................................................................................1
A. Country Context ............................................................................................................ 1
B. Sectoral and Institutional Context ................................................................................. 1
C. Higher Level Objectives to which the Project Contributes .......................................... 4
II. PROJECT DEVELOPMENT OBJECTIVES ................................................................5
A. Project Objectives ......................................................................................................... 5
B. Project Beneficiaries ..................................................................................................... 5
C. Key Results Indicators .................................................................................................. 6
III. PROJECT DESCRIPTION ..............................................................................................7
A. Project Components ...................................................................................................... 7
B. Project Financing ........................................................................................................ 10
C. Lessons Learned and Reflected in the Project Design ................................................ 10
IV. IMPLEMENTATION .....................................................................................................11
A. Institutional and Implementation Arrangements (see Annex 3 for detailed
implementation arrangements) .................................................................................... 11
B. Results Monitoring and Evaluation ............................................................................ 13
C. Sustainability............................................................................................................... 13
V. KEY RISKS AND MITIGATION MEASURES ..........................................................14
A. Risk Ratings Summary ............................................................................................... 14
B. Description .................................................................................................................. 14
VI. APPRAISAL SUMMARY ..............................................................................................14
A. Economic and financial analysis ................................................................................. 14
B. Technical ..................................................................................................................... 16
C. Financial Management ................................................................................................ 16
D. Procurement ................................................................................................................ 17
E. Social (including Safeguards) ..................................................................................... 18
F. Environment (including Safeguards) .......................................................................... 18
G. Other Safeguards Policies Triggered (if required)...................................................... 18
Annex 1: Results Framework and Monitoring .........................................................................19
Annex 2: Detailed Project Description .......................................................................................21
Annex 3: Implementation Arrangements ..................................................................................26
Annex 4: Operational Risk Assessment Framework (ORAF) .................................................39
Annex 5: Implementation Support Plan ....................................................................................41
PAD DATA SHEET
THE HASHEMITE KINGDOM OF JORDAN
Support to Building Active Labor Market Program
PROJECT APPRAISAL DOCUMENT
MIDDLE EAST AND NORTH AFRICA
Human Development Department
Report No.: 76767-JO
Basic Information
Project ID Lending Instrument EA Category Team Leader
P145241 Investment Project
Financing
C Moukim
Temourov/Iqbal
Kaur/Setareh Razmara
Project Implementation Start Date Project Implementation End Date
25-November-2013 30-June-2015
Expected Effectiveness Date Expected Closing Date
30-November-2013 30-December-2015
Joint IFC Joint Level
No
Sector Manager Acting Sector Director Country Director Regional Vice President
Yasser El-Gammal Enis Baris Ferid Belhaj Inger Andersen
Borrower: The Hashemite Kingdom of Jordan
Responsible Agency: Ministry of Planning and International Cooperation
Contact: H.E. Dr. Ibrahim Saif Title: Minister of Planning and International
Cooperation
Telephone
No.:
Email: [email protected]
Project Financing Data(in USD Million)
[ ] Loan [ ] Grant [ X ] Other
[ ] Credit [ ] Guarantee
Total Project Cost: US$5.95 million Total Bank Financing: US$4.75 million
Total Co financing: 0.00 Financing Gap: 0.00
Financing Source Amount(in USD Million)
Recipient 1.20
MENA Transition Fund - 4.75
Total 5.95
Expected Disbursements (in USD Million)
Fiscal Year 2014 2015 2016
Annual 1.5 2.65 0.6
Cumulative 1.5 4.15 4.75
Proposed Development Objective(s)
The project development objective is to increase access to career guidance, job search, and on the job
training among targeted youth.
Components
Component Name Cost (USD Millions)
(includes Government contribution)
Component 1: School to Work Program 0.73
Component 2: Market Information and Job Search Program
(Electronic Labor Exchanges)
0.69
Component 3: Job Readiness and Placement Program 2.86
Component 4: Project Monitoring and Evaluation and
Management
0.47
Institutional Data
Sector Board
Social Protection
Sectors / Climate Change
Sector (Maximum 5 and total percent must equal 100)
Major Sector Sector percent Adaptation
Co-benefits
percent
Mitigation
Co-benefits
percent
Social Protection Public Administration-
Social Services
70
Social Protection Vocational Training 30
Total 100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applicable to this project.
Themes
Theme (Maximum 5 and total percent must equal 100)
Major theme Theme Percent
Social Protection and Risk Improving Labor Markets 50
Social Protection and Risk Other Social Protection and Risk
Management
50
Total 100
Compliance
Policy
Does the project depart from the CAS in content or in other significant
respects?
Yes [ ] No [ X ]
Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ X ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for
implementation?
Yes [ X ] No [ ]
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
Legal Covenants
Name Recurrent Due Date Frequency
Project Management Unit (Schedule 2,
Section V.1)
No later than three
months after the
effective date of the
Grant Agreement
Description of Covenant
Establish and maintain the PMU in accordance with the provisions of Section I.A.4 and 5 of Schedule 2
to the GA with staffing, resources, terms of reference and with substance satisfactory to the World
Bank.
Name Recurrent Due Date Frequency
Project Operational Manuel (Schedule
2, Section V.2)
No later than three
months after the
effective date of the
Grant Agreement
Description of Covenant
Prepare and adopt POM, in accordance with the provisions of Section I.B of Schedule 2 to the GA in
form and substance satisfactory to the World Bank, and thereafter ensure that the Project is carried in
out in accordance with said manual.
Name Recurrent Due Date Frequency
External Auditor (Schedule 2, Section
II.B.4)
No later than six
months after the
Effective Date of
the Grant
Agreement
Description of Covenant
Recruit the external auditor referred to Section 2.07 (b) of the Standard Conditions in accordance with
Section III of Schedule 2 of GA and pursuant to terms of reference satisfactory to the World Bank
Conditions
Name Type
Withdrawals (Schedule 2, Section IV. B. (b)) Disbursement
Description of Condition
No withdrawals shall be done under Category (2) (Job Vouchers) until and unless the operational
module for Job Vouchers included in the POM and referred to in Section I.B.1.(b) of Schedule 2 to the
GA has been prepared and adopted in form and substance satisfactory the World Bank.
Team Composition
Bank Staff
Name Title Specialization Unit
Moukim Temourov Sr. Economist Social
Protection/co-TTL MNSSP
Haneen Sayed Lead Operations Officer Human
Development
Coordinator
MNSSP
Iqbal Kaur Sr. Social Protection Specialist Social
Protection/co-TTL
MNSSP
Hala Ballout Program Assistant Human
Development
MNSSP
Jad Mazahreh Sr. Financial Management Financial MNAFM
Specialist Management
Lina Fares Sr. Procurement Specialist Procurement MNAPC
Hassine Hedda Sr. Finance Officer Loan Operations CTRLA
Maria-Laura Sanchez
Puerta
Senior Economist Social Protection HDNSP
Setareh Razmara Lead Social Protection
Specialist
Social Protection /
TTL
MNSSP
Maya Abi Karam Sr. Counsel Legal LEGAM
Mohammad Nadeem Legal Analyst Legal LEGAM
Non Bank Staff
Name Title Specialization Unit
Ghada Shaqour Procurement Consultant Procurement MNSHD
Locations
Country First Administrative
Division
Location Planned Actu
al
Commen
ts
Lebanon
.
1
I. STRATEGIC CONTEXT
A. Country Context
1. The Jordan economy has performed well in the past decade but its macroeconomic
performance has been challenged by the global crisis and a series of regional events.
Following almost a decade of strong macroeconomic performance, the political upheaval that
swept the Arab region this year has had a significant impact on Jordan, taking the form of
economic shocks as well as demands for stronger citizen voice, greater accountability and
improvements in living conditions. Lower foreign direct investment (FDI), remittances and
tourist revenues resulting from the regional turmoil and interruptions in the gas supply from
Egypt have coincided with higher international grain and energy prices. At the same time, the
fallout from the Syrian conflict next door, and persisting social challenges including
unemployment at 12.8 percent and poverty at 14.4 percent is further undermining the economy.
2. At this time of weakening economy and growing social unrest, the Government’s top
priority is to create jobs, though it is a daunting challenge. At the macro level, the Jordanian
economy is not generating enough jobs to absorb the more than 60,000 young citizens who enter
the labor market every year. Major constraints arise from the structure of economic activity, the
lack of flexible labor markets, the large presence of the public sector with market-distorting
effects on wages and youth expectations, and the burden of inefficient employment-related social
safety net contributions borne by small and medium enterprises. Employment creation will
require a comprehensive approach which tackles supply issues (education, vocational training,
migration, etc.), demand issues (macro policy, structure of the economy, sector mix and size of
enterprises, etc.), and institutional issues (policy development and coordination, implementation,
monitoring and evaluation, and social dialogue) to be developed over the short, medium, and
long term.
B. Sectoral and Institutional Context
3. Despite periods of strong economic growth in the past decade (GDP growth averaging
6.7 percent in certain periods), unemployment among nationals remains around 13 percent
and is significantly higher for youth (36 percent) and women (21 percent)1. Jordan’s rate of
female labor force participation, at around 15 percent, is among the lowest in the region and in
the world. Unemployment is typically high among men with high school education or less,
while for women it is higher for those with high school or higher levels of education. The
reasons for double digit unemployment are many and include: (i) limited job creation by the
private sector; (ii) more than half of the jobs created in the private sector are taken up by foreign
workers; (iii) both macro and micro levels were challenged in terms of growing budget deficits,
global economic crises, low domestic investment, overall investment vulnerability to volatility
in the oil markets; (iv) the mismatch between labor supply and demand; (v) the high expectations
of the unemployed—caused in part by the existence of high wage jobs in Gulf countries—and
the low wages paid in Jordan; and (vi) the lack of fiscal ability to cushion the negative impact of
1 Jordan Department of Statistics
2
the macro and micro crises. As a result, Jordan’s ranking in terms of Doing Business and
competitiveness in the region and the world has decreased2.
4. The recently launched National Employment Strategy (NES) for 2011-2020 lays out the
foundation to rectifying unemployment anomalies and enhancing employability. The main
objective of the NES is to provide a long-term strategic vision for employment and job creation,
a strategy that is focused, credible, and sustainable to provide measurable results. Prepared by a
large multi-sectoral team to include representatives of both public and private sectors as well as
the support of international experts, the NES spells out a comprehensive approach to
employment creation which tackles supply issues (education, vocational training, migration,
etc.), the demand issues (macro policy, structure of the economy, sector mix and size of
enterprises, etc.), and institutional issues (policy development and coordination, implementation,
monitoring and evaluation, and social dialogue) to be developed over the short, medium, and
long term. In doing so, the NES includes: (1) an overview and diagnosis of the labor market, (2)
actions from the supply and demand side aiming to improve the employability of Jordan’s labor
and the creation of job opportunities and, (3) a sequencing of actions over the short, medium, and
long terms balancing both demand and supply of labor.
5. However, the economic and political environment within which NES has to be
implemented is increasingly challenging. The current labor market situation in Jordan is
characterized by a number of structural issues:
(a) Compared to the region and the world, Jordan’s economically active population is
extremely low (only around 35 percent of those of working age are working).
(b) The Jordanian economy is dominated by micro and small enterprises employing fewer
than ten workers with inadequate access to finance.
(c) Mismatch between labor supply and demand persists. Labor supply in Jordan is also
determined by in- and out-migration.
(d) The wage structure discrepancies between the public and private sector further exacerbate
the challenge of reducing unemployment.
6. Guided by the NES, the Government is committed to return to the path of job creation
and sustainable growth. The NES resulted in the “Jordan Jobs Compact” (JJC) – a
national program that aims to revive the social contract between the state, private sector
and citizens. Specifically, the JJC posits that employment creation should not be done by
expanding the fiscal deficit, or by imploring the private sector to increase its hiring at a time of
economic slowdown. Thus it needs to be done through changing fiscal priorities, modifying
investment incentives, balancing demand and supply of labor, utilizing the tremendous energy of
youth NGOs on the ground, and making better use of donor financing.
7. The JJC is a tripartite program with five components involving the Government of
Jordan (GOJ), the private sector, and active civil society organizations focused on youth. The overall objective of the JJC is to support building the institutional and financial basis for
creating decent jobs in the private sector for young Jordanians entering the labor market at
various skill levels. While the JJC addresses mainly the supply side of the labor market, the NES
2 See Annex for a detailed presentation on Jordan labor market
3
also proposes measures to boost the demand side to create new jobs and to move up the value
chain to result in better wages and working conditions.
8. The JJC will develop a multi-level approach to assist graduates in finding jobs in a
coordinated and strategic manner as follows:
(a) School to Work Program. The high unemployment rate among youth in Jordan is partly
the result of an inability to transition from an educational to a work environment.
Students often lack the skills, information, and guidance to help them prepare for this
transition. This program aims at upgrading career guidance, counseling and case
management during the last year of college, or university and employment offices to help
students with career guidance and build critical employment skills. In Jordan, a school-to-
work program might not reduce overall unemployment among youth in the short term but
it would start making an impact in the medium term (provided aggregate labor demand
improved) and is expected to help reduce the duration of unemployment for youth, which
is critical. Based on international experience, it is expected that unemployment rates
among male and female youth will start to drop once the program reaches a national
scale.
(b) Job Search and Matching Program will facilitate job matching during the first year of
graduation through improving information available to both employers and prospective
job seekers (thus reducing transaction costs of job search). It will build on existing search
engines and services in the market, including Ministry of Labor and the private sector.
The aim is to improve their reach and data information and make them available to all
employers and fresh graduates. However, an umbrella program is needed to ensure that
all efforts by public, private, and NGOs providers are coordinated and that no students or
regions are excluded or missed.
(c) Job Readiness and Placement will take place after rigorous search for a job in which
the graduate still fails to find an appropriate job. It will aim to provide basic training and
a voucher program to incentivize employers and employees to engage in on-the-job
training which could lead to permanent employment.
(d) Community Service. This will help those who have been unemployed for two years or
more (i.e. were unable to find jobs through market search and job readiness and
placement). It offers voluntary and part time opportunities to work with community based
organizations (CBO), municipalities, or military and civil defense services for a total of
one year.
4
(e) Retooling Program. This program would be accompanied by an on-going program
which helps older unemployed workers with re-tooling, upgrading, or shifting to other
careers.
C. Higher Level Objectives to which the Project Contributes
9. The Government of Jordan recently launched the National Poverty Reduction Strategy (PRS)
with an overall vision/goal of “containing and reducing poverty, vulnerability and inequality in
the current socio-economic environment of Jordan, between 2013 and 2017, through the
adoption of holistic and results-oriented approach, which targets poor and below middle class
households” with several specific objectives3. The proposed project is expected to improve the
employability of graduates and unemployed youth through increasing their access to career
guidance, job search, and on the job training.
10. The proposed project will provide a learning platform to test a number of initiatives
recommended by the National Employment Strategy for 2011-20. This will be achieved via
supporting three of the five pillars of the JJC, i.e, (i) school to work transition; (ii) job search and
matching; and (iii) job readiness and placement.
Alignment with Transition Fund Objective
11. The objective of the MENA Transition Fund is to improve the lives of citizens in transition
countries, and to support the transformation currently underway in several countries in the region
(the “Transition Countries”) by providing grants for technical cooperation to strengthen
governance and public institutions, and foster sustainable and inclusive economic growth by
advancing country-led policy and institutional reforms.
12. The proposed project aligns well with the objective of the Transition Fund in terms of
promoting inclusive development with particular focus on social inclusion, particularly for youth
and women. Through the proposed pilot initiatives, the project aims to facilitate the school-to-
work transition for the young graduates and unemployed youth, provide them with better
information-sharing mechanisms for job search and skills matching, and provide life skills
learning and real work experience to contribute to their employability.
3 PRS Objectives: (1). To better harmonize all public, private and civil society poverty reduction programming; (2)
To deliver expanded, increasingly aligned and better-targeted social protection; measures to members of poor and
vulnerable households; (3) To provide more gainful employment to Jordanians, especially youth, women and
persons with disabilities; (4) To work towards the elimination of child labor; (5) To provide micro and small
business incentives and more effective small and micro-finance, to male and female members of poor and vulnerable
households; (6) To supply more accessible and affordable basic health services to male and female members of poor
and vulnerable households, the elderly and persons with disabilities; (7) To supply more accessible basic education
services, and more effective vocational training, to male and female members of poor and vulnerable households,
the elderly and persons with disabilities; (8) To alleviate the impacts of climate change and environmental
degradation upon the members of poor and vulnerable households; and (9) To provide improved transport, housing
and utilities to members of poor and vulnerable households.
5
Relationship to CAS
13. The World Bank Group’s Country Partnership Strategy (CPS) for FY12-FY15 (report
#58114-JO) is designed to help lay the foundation for sustainable growth and job creation
through a three-pronged approach: (i) strengthen fiscal management and increase
accountability; (ii) strengthen the foundation for sustainable growth with a focus on
competitiveness through supporting priority infrastructure, leveraging private sector investment,
supporting improvements in the business environment, and supporting education and skills
development; and (iii) enhance inclusion through social protection and local development by
assisting the Government in better targeting its social assistance and subsidies to the poor and
vulnerable, implementing the new Social Security Law and building local authorities while
preserving local economic and social assets.
14. The proposed project is well aligned with the CPS priorities, specifically those
focusing on sustainable growth and social inclusion. The project will contribute to achieving
two of the CPS priority areas: (i) strengthen the foundation for sustainable growth with a focus
on competitiveness through supporting education and skills development; and (ii) enhance social
inclusion through supporting employability of young Jordanians who have been marginalized by
the ongoing economic, social and political upheaval. In this context the project is closely aligned
with the region’s strategic priorities – specifically the focus on economic and social inclusion,
the creation of jobs and the cross-cutting emphasis on addressing gender issues.
II. PROJECT DEVELOPMENT OBJECTIVES
A. Project Objectives
15. The overall objective is to pilot selected labor market interventions, to learn about their
effectiveness towards building a coherent active labor market system and to improve job
readiness and job placement opportunities for unemployed men and women graduates. The
project development objective is to increase access to career guidance, job search, and on the job
training among targeted youth.
B. Project Beneficiaries
16. Job Seekers: The project direct beneficiaries will be graduates from community colleges
and universities, and unemployed youth. Most of the unemployed Jordanians are young – 49
percent are below the age of 25; and 72 percent are below the age of 30. The stakes are high for
youth, as the longer they spend unemployed, the more demoralized they become and the more
likely it is that they will exit the labor force for good, especially females. There is a need for the
project to reach these young unemployed men and women and shorten the time youth spend
searching for a job. The project will, through multi-level interventions, aim to benefit about
14,000 job seekers.
17. Ministry of Labor (MOL) – The MOL is the implementing agency for this project
because it has the mandate to implement the National Employment Strategy. This project will
help MOL improve career counseling and job matching/information systems through the
6
Electronic Labor Exchange (ELE) in employment offices (EOs). The MOL’s Employment
Offices (EO) aim to offer high quality employment solutions specifically designed to meet the
companies’ needs via an effective job matching system, specialized career consultations, and
linking the job-seekers to the available jobs. As a result of this project, the MOL will develop
and reinforce career counseling and job matching that can be scaled up to all governorates.
18. E-TVET Fund:. The E-TVET Fund4 is a critical pillar of the E-TVET Council, chaired by
the MOL.The aim of the Fund is to finance projects to enhance the participation of the public and
private sectors in technical and vocational education, as well as training and employment
services. It is expected that through the project, the E-TVET Fund will finance the life skills
training for the beneficiaries of the wage vouchers plus employer and employee social security
contributions per month for a maximum of twelve months. This will bring the total contribution
of E-TVET Fund to the project to about US$1.2 million (JD850,000). Moreover, the E-TVET
Fund will benefit from the experience and lessons of the job placement component, in order to
finance the expansion of the program to other target groups (i.e., the unemployed with tawjihi or
lower levels of education) and improve their existing programs.
19. King Abdullah II Fund for Development (KAFD): King Abdullah II Fund for
Development (KAFD) is not benefiting directly from the project; however, the role of KAFD is
vital to providing strategic and policy guidance in managing and coordinating the
implementation of Component 1 (School to Work Program) focusing on career guidance and
counseling and Component 2 (Market Information and Job Search Program) as it is currently in
charge of coordinating various initiatives dealing with labor market information systems.
C. Key Results Indicators
20. Progress toward the PDO will be monitored through the following key indicators
(a) Direct project beneficiaries, in total number; percentage of which are female
beneficiaries (Core Indicator);
(b) Beneficiaries of Career Guidance and Counseling; percentage of which are female
beneficiaries;
(c) Beneficiaries of the updated and expanded Electronic Labor Exchange, percentage of
which are female beneficiaries;
(d) Beneficiaries of Job Readiness and Placement Program (JRP), percentage of which
are female beneficiaries.
4 The Employment, Technical and Vocational Education and Training (E-TVET) Fund is an autonomous
government agency with independent administration and financial procedures. Its establishment under Law 46 of
2008 followed recommendations of the National Agenda, which acknowledged the multiplicity of providers and
lack of coordination in the human resource development sector.
7
III. PROJECT DESCRIPTION
A. Project Components
21. The proposed project responds to the Government’s request for World Bank support
in supporting implementation key aspects of the Jordan Jobs Compact initiative (JJC)
which is a multi-pillar active labor market program (ALMP) of the National Employment
Strategy Action Plan. The JJC comprises of both long term and short term proposals for
improving employability and employment outcomes. The project will support three out of the
five pillars of the JJC. The project components are: 1) school to work program, 2) market
information and job search program, 3) job readiness and placement program, and 4) monitoring
and evaluation and project management.
22. The MOL will be responsible for the overall coordination and management of the
project under the strategic and policy guidance of the E-TVET Council and in close
coordination with KAFD. The Project Operations Manual (POM) will provide details on
implementation of all project components. The POM is expected to be ready no later than three
months after effectiveness.
23. Component 1: School to Work Program (STW) (US$730,000): This component will
provide “school to work” transition support for two groups between ages 19-25: (i) students
during their final year university through counseling centers; and (ii) unemployed youth through
the Ministry of Labor (MOL) employment offices. MOL has developed three sets of manuals for
career counseling and vocational planning for: community college graduates, university
graduates, and youth unemployed. Moreover, KAFD is currently reviewing the counseling
services of the 25 universities to assess their strengths and weaknesses and plans to improve
career counseling manuals for university students. The project will support the implementation
of these manuals for these two target groups in four universities and six employment offices in
selected governorates5 by: i) hiring of the technical experts who will assist in overall design,
planning and quality assurance, provide training to counselors, and oversee the delivery and
coverage of career services in selected universities and the employment offices; and ii) providing
needed refurbishment of university and employment offices including equipment and software. It
is estimated that during the project period approximately 10,000 youth (19-25 years of age)
could benefit from the counseling in the selected universities and employment offices in the
governorates. The POM will provide details on the implementation of this component, including
the selection criteria of universities and employment offices.
24. Component 2: Market Information and Job Search Program (MIJS) (US$685,000):
This component will facilitate job matching through improving information available to both
employers and prospective job seekers. Currently, several initiatives are being developed by
several players and financed by various sources (MOL, ILO, IYF, Microsoft, EU, UNDP,
NCHRD, E-TVET Fund). To ensure synergy and complementarity, KAFD is currently in charge
of the coordination of the various initiatives. The project will support MOL to update and expand
the Electronic Labor Exchange (ELE) by providing technical assistance for: i) capacity building
5 It is planned that the Component A will be implemented in three Governorates. Thus the number of universities
and EOs where the Manuals will be implemented may vary accordingly.
8
of MOL staff for improving data collection and analysis for effective intermediation services; ii)
building capacity for employment offices staff on facilitating job matching (including the use of
the updated and expanded ELE); iii) developing interactive online career guidance, mentoring,
vocational planning system; iv) a communication campaign to increase the awareness about the
ELE for both jobseekers and employers; and, v) providing related IT hardware and software for
the employment offices. The POM will provide details on the implementation of this component.
25. Component 3: Job Readiness and Placement Program (JRPP) (US$2,867,970): This
component will support graduates from universities and from community colleges in selected
governorates (between ages 19-25) who have been unemployed for at least one year (see the
eligibility criteria presented in the box below)6. It will provide the unemployed graduates a
package of 75 hours employability training and partial salary voucher/social security registration
for one year. The salary vouchers and training compensation will be financed by the project and
the training providers and social security contribution will be financed by the E-TVET Fund.
This scheme will encourage private employers and job seekers to engage in on-the-job training to
facilitate job placement. This pilot will target 1,200 unemployed graduate youth in the selected
governorates based on the selection criteria as below. The POM will provide details on the
design and implementation of this component.
Program Enrolment: The eligible candidates will enroll into the program by completing a
simple form covering the eligibility information and their ID number, contact information
and Bank account details under a special program window (one year training contract)
which exempts the employer from the labor laws relating to staff dismissal for one year.
Training: The beneficiaries of JRPP will receive training in basic employability skills.
Training providers will apply to provide training that would be financed by the E-TVET
Fund, which will request E-TVET Council authorization for an amount equivalent to JD
350,000. This will be confirmed by a written financial contribution commitment from E-
TVET Fund to Ministry of Planning and Internal Cooperation (MOPIC). All the
participants will have to take employability training up to 75 hours and upon training
completion, trainees will receive a certificate and a lump sum stipend of JD150 financed
by the project. The employability skills training will be provided by a competent provider
that will be selected on a competitive basis, coordinated by E-TVET Fund.
6 Based on actual age of graduates from Community Colleges and Universities, and the requirement of at least one
year unemployment, the age bracket of beneficiaries may need upward adjustment.
Selection Criteria for Youth and Employers Eligibility for Candidates: Male and female youth, aged 19-25 with community college or university
degrees, and have been unemployed for one year or more would benefit from both the employability training (life skills) and the on-the-job voucher programs. Based on the structure of the labor market in Jordan, educated youth who are lacking on the job experience have higher probability of unemployment.
Eligibility Criteria for Employers: All private and not for profit enterprises are eligible to benefit from the program regardless of enterprise size as long as they are registered or willing to register with the Social Security Corporation.
9
Job Voucher: The voucher system will be introduced to be paid against the results agreed
between the employer and the employee (voucher holder). Vouchers will remain the
property of the employee and can be taken from one job to another until all months of
eligibility have been used. It is proposed that the value of voucher not exceed JD 100 per
month for one year. In addition, the voucher program will cover the social security
contributions of employers and employees up to a year. The cost of this contribution
(amounting to about JD500, 000) will be financed by E-TVET Fund own resources. This
will be confirmed by a written financial contribution commitment from E-TVET Fund to
MOPIC. The job voucher can only be redeemed for a job which will meet the following
conditions of employment: (i) full-time, defined as 30 or more hours a week; and (ii) has
a written job contract spelling out the responsibilities of the worker and stating a wage at
least as high as the minimum wage. Employees will be considered a special category for
this program (training contract) during the duration of the voucher and firms should not
be subject to restrictions or penalties for firing these workers during the duration of the
voucher. If employees are retained once the voucher is finished, firms will have the three
month probationary period before becoming subject to standard legal provisions
regarding staff dismissal.
26. Component 4: Project Monitoring and Evaluation and Management (US$467,030): This component will include the following:
Monitoring and evaluation: The PMU will collect data on day to day project
activities through agencies which are responsible for the different components (MOL,
KAFD, E-TVET Fund). In addition, the PMU will be responsible for i) launching a
beneficiary assessment for students who received career guidance and ii) preparing an
impact evaluation of the voucher program (baseline and final)
Project Management: This sub-component will support the management of the
project. It will ensure that the PMU is operational and that it successfully and
efficiently implements the project in conformity with the Financing Agreement,
project document and the Project Operation Manual (POM). This component will
finance: (i) Technical Assistance to the PMU staff or needed PMU staff salaries for
those selected competitively; (ii) equipment and operating costs directly linked to the
daily management of the project (office space, utilities and supplies, bank charges,
Employers’ Contribution, Incentives and Penalties
To allow firms to be motivated to participate in the program and workers to find an appropriate match, the
following measures will be applied:
For employers to benefit from the voucher, they will have to keep the salary at least as high as the minimum wage.
Employers /Enterprises should not be subject to restrictions or penalties for firing these workers during the period of
voucher use. If workers are retained once the voucher is finished, firms should still have the three month
probationary period before becoming subject to the standard legal provisions regarding staff dismissal.
Enterprises or employees engaged in falsifying employment information would be denied access to the program in
the future and pursued legally.
10
communications, vehicle operation, maintenance and insurance, building and
equipment maintenance costs, travel and supervision costs, etc.); and (iii) regular
internal and external audits (focusing on financial and procurement aspects). Within
the framework of the monitoring cycle, a mid-term review will involve project’s
stakeholders and civil society in the review of project performance, intermediary
results, and outcomes. The progress and impact of the project will be measured using
the data collected at the mid-term review and project end.
B. Project Financing
Financing Instrument
27. The financing instrument is an Investment Project Financing grant in the amount of
US$4.75 million, which will be financed through the MENA Transition trust fund. The project
would be financed through a Recipient-executed grant agreement for US$4.75 million.
Project Cost and Financing
28. The project costs and financing are detailed in the table below.
Project Component Project
Costs
Trust
Fund
Financing
% TF
Financing
E-TVET
Fund
Financing
% E-
TVET
Fund
Financing
COMPONENT 1: School to Work Program 730,000 730,000 100% -
COMPONENT 2: Market Information and Job Search
Program (Electronic Labor Exchanges) 685,000 685,000
100% -
COMPONENT 3: Job Readiness and Placement Program
Vouchers
Life Skills Training
Social Security contribution
2,867,970
500,000
700,000
2,867,970
-
-
100%
-
500,000
700,000
-
100%
100%
COMPONENT 4: Project Monitoring and Evaluation and
Management 467,030 467,030
100%
TOTAL 5,950,000 4,750,000 80% 1,200,000 20%
C. Lessons Learned and Reflected in the Project Design
29. Overall lessons learnt from World Bank operations in Jordan relevant to this project are: (i)
take into account implementation capacity in designing the project; (ii) establish monitoring and
evaluation systems to ensure real time information on implementation of all project activities;
flow of funds, as well as on project related output and outcome indicators; (iii) secure beneficiary
participation at all levels to foster ownership and continued commitment to project development
objectives; and, (iv) pay significant attention to the time needed to implement reforms and to
appropriately consider vested interests and their potential to delay reforms. In addition to these
generic issues, the ongoing pilots and experiences in the country, as well as experiences in other
countries provide valuable lessons that are taken into account in the design of the proposed
project.
11
30. With respect to the technical aspects of the project design, the development of the school-
to-work component takes into account the lessons learned from the ongoing assessment by
KAFD and MOL, to reinforce the career counseling and vocational planning in universities, and
employment offices. Experience shows that school-to-work types of interventions are effective
if the jobs information sharing is combined with help on career guidance and basic employability
training. Based on this experience, the project design includes: a database for a systematic
follow up on job search support; case management capacity to monitor success in finding jobs
for the students receiving career guidance; and development of on-line resources to help students
make career choices and to provide them with the basic skills that will help them secure their
first job.
31. The market information and job search component builds on the lessons learned via
implementation of the existing search engines and services in the MOL, the initiative supported
by CIDA over the past ten years. The project design combines jobs data information sharing
with conducting effective intermediation services, matching job demand with supply, and
improving information sharing between employment agencies and education system.
32. The job voucher component builds on the lessons learned during implementation of the
Jordan NOW (New work Opportunities for Women) pilot project. In particular, the project
design takes into account specific recommendations of the NOW pilot to increase employability
of the beneficiaries (specific eligibility criteria for project beneficiaries; an amount of the
voucher set below the minimum wage so that firms are required to contribute a part of the costs
of social security registration; conditions of employment, including a written contract, etc.).
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements (see Annex 3 for detailed
implementation arrangements)
33. The MOL will be responsible for the overall project coordination and management
with policy and strategic guidance from the E-TVET Council, and in close coordination
with E-TVET Fund, KAFD and MOPIC. No later than three months after effectiveness, it
will establish a Project Management Unit (PMU) which will be staffed with one Director, one
technical officer for voucher program, one IT specialist, one procurement specialist, one
financial management specialist and one M&E specialist. The PMU staff is expected to be
appointed/ seconded by the Recipient (salaries financed by the Government budget). In the
event the Recipient is unable to identify qualified staff, PMU staff will be selected through
competitive process in accordance with the World Bank consultant/procurement guidelines
(salaries financed by the project). The selection and appointment process for PMU staff should
be acceptable to the World Bank, and based on terms of reference (TORs) acceptable to the
World Bank regardless of whether staff were appointed, seconded or competitively selected.
MOPIC will second from their own staff a Financial Management specialist that will collaborate
closely and work with the PMU. If needed, the project will finance consultants or a consulting
firm who will work closely with the PMU core team, as well as the E-TVET Fund staff for
managing and monitoring the vouchers program. The PMU will be located in E-TVET Fund
which will provide the office space. Fiduciary management responsibilities for all components
12
will be under MOPIC. The POM will describe details on responsibilities for the implementation
of the project components.
34. Component 1 (School to Work Program) will be implemented by the MOL in close
coordination with KAFD as follows: The PMU will hire the technical experts to train the
counselors and relevant personnel in the university centers and employment offices on utilization
of the new career guidance manuals and oversee / guide the counselors during the counseling
sessions with the students. In addition, the project will finance refurbishment of selected
universities and employment offices. The POM will describe implementation details of this
component.
35. Component 2 (Market Information and Job Matching) will be implemented by the
MOL in close coordination with KAFD as follows: Under this component, the job matching
will be done through the updated and expanded electronic labor exchanges (ELEs) that will be
supported by the project. The project will finance (i) capacity building for career counseling of
universities and employment offices staff on facilitating job matchmaking (use of the updated
ELE, etc); (ii) awareness campaign for jobseekers and employers; and, (iii) equipment and
software for employment offices. The POM will describe implementation details of this
component.
36. Component 3 (Job Readiness and Placement) will be implemented by the E-TVET
Fund in close coordination with MOL and Social Security Corporation (SSC) as follows:
a. With regard to training (job readiness), training providers will be selected competitively,
following the E-TVET Council’s approval based on cost, track record, and geographic
distribution, and E-TVET Fund would finance the training providers per trainee.
b. With regard to job voucher payment (job placement), the E-TVET Fund will be responsible
for technical implementation and monitoring of the job voucher component as follows:
Job Voucher Enrollment: Eligible unemployed youth would apply through MOL EOs or
SSC branches or a consulting firm by filling out a form. This form will be mailed to the
SSC or filled out online on a specially designed portal. In case the SSC will maintain the
database of unemployed youth, it will verify eligibility, and confirm enrolment into the
program to the participant through a voucher registration number, which identifies them
as program participants. The eligible firms (employers) will register with the SSC also to
be enrolled into the program. The role of SSC would be to confirm/verify the eligibility
of the worker and the employer. The POM will provide clarification on job voucher
enrollment.
Job Voucher Implementation: The implementation of the program will be the
responsibility of the E-TVET Fund with if needed support of a consulting firm who will
be hired, on competitive basis, and make the payment scheme as follows:
i. Step 1: Employer will directly pay the worker the wage (minimum wage offer of
JD190 per month is required) and, if applicable, remit the employer’s share of
social security contributions to the SSC. Contribution to the social security system
13
will serve as proof the worker is still employed in the firm, will be subject to
inspections by SSC inspectors, and will be used to automate the payment. The
cost of this contribution (amounting to about JD500,000) will be financed by the
E-TVET Fund own resources.
ii. Step 2: Upon verification of current conditions of employment, employment
status, employers’ payment of wage to the worker, the employers’ accounts will
be credited the subsidy (JD 100), plus the social security contributions financed
by E-TVET Fund own resources.
B. Results Monitoring and Evaluation
37. Focusing on the learning nature of this pilot project, monitoring and evaluation will be an
integral part of the program. The PMU will put in place a strong monitoring and evaluation
component to monitor progress during program implementation and address issues in a timely
manner, especially key activities such as building the effectiveness of school to work transition
interventions, job matching through ELEs and job voucher program. The PMU also will hire
independent firms or research centers to conduct spot checks, audits and performance
evaluations. Furthermore, the PMU will collect data on day to day project activities through
agencies which are responsible for the different components (MOL, KAFD, E-TVET Fund) and
will be responsible for i) launching a beneficiary assessment for students who received career
guidance and ii) preparing an impact evaluation of the voucher program (baseline and final) In
addition to the M&E integrated in the project, an independent assessment of the project
outcomes (external financial audits) will be prepared to audit the project’s annual financial
statements in accordance with terms of reference (TORs) acceptable to the World Bank.
C. Sustainability
38. The project is supporting a number of priority labor market initiatives identified by the
Government of Jordan in the National Employment Strategy. First, the “school-to-work”
transition support to the graduates will build on the ongoing work at the MOL on career
counseling offices. Bank support to strengthen the MOL capacity to better design, implement
and evaluate the project activities will also contribute to this purpose. Second, the market
information and job search component will also make use of the existing search engines and
services at the MOL, including support for capacity building of the staff on key aspects of
running such information systems. The voucher component also provides a platform for piloting
innovative labor market initiatives that would strengthen the capacity of the involved agencies
and pilot an approach that could provide the basis of a future government-supported program at
broader scale. Moreover, the E-TVET Fund is expected to finance from its own resources the
training providers as well as the social security contributions of the vouchers program.
Ultimately, the project is expected to generate momentum around key provisions of the JJC and
help support government attention to the critical national of employment generation.
14
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary
Stakeholder Risk Moderate
Implementing Agency Risk
- Capacity Substantial
- Governance Moderate
Project Risk
- Design Substantial
- Social and Environmental Low
- Program and Donor Low
- Delivery, Monitoring and Sustainability Substantial
Overall Implementation Risk Substantial
B. Description
39. Overall, the risk for this operation is “Substantial” during implementation mainly due to: (i)
Stakeholder risk that requires the involvement and cooperation of employers and unemployed
graduates; (ii) lack of employers interest in using the vouchers; (iii) multiple actors involved in
the job voucher component that may cause delays in identifying eligible firms and payments to
beneficiaries; and (iv) lack of the private sector involvement in job placement information
system. Nonetheless these risks could be mitigated as follows: (i) launching a well-designed
public information campaign to raise awareness among the key stakeholders on the short term
and long term benefits of the project for the unemployed youth and seek their steady
commitment and ownership throughout the implementation; (ii) building consensus among the
participating employers at all levels of program design and seeking their participation and
ownership of the program..
VI. APPRAISAL SUMMARY
A. Economic and financial analysis
40. It is difficult to assess the economic benefit of the project on youth employment. However
the international experience shows that, counseling, labor intermediation and wage subsidies can
have positive effects to facilitate and improve employability of youth.
41. First, the expected development outcome is increased employability of individuals,
particularly youth. Increased employability is expected to through counseling programs, access
to updated electronic intermediation systems, and participation in a job voucher program, which
entails life skills training, intermediation services, and wage subsidies. Second, there is a clear
rationale for government intervention. The main rationale for these programs in Jordan is that
they would be giving work experience to workers who would otherwise re-main unemployed or
take jobs that do not exploit their potential productivity. At the same time, there is evidence
showing that the social benefits of this increase in human capital could outweigh the cost of the
15
subsidies. Finally, the World Bank has a comparative advantage on these domains given the
international experience on design, implementation, and evaluation of active labor market
programs. Moreover, this project is building on the knowledge and taking into consideration the
lessons from the previous, similar World Bank intervention (NOW). More details on the
international experience and impacts of the counseling, intermediation, and voucher components
can be found below.
42. With respect to Counseling, international evidence on the impact of these programs for the
unemployed -with particular reference to their job finding rate, application intensity and
matching probability- is scant. However, there are a few studies showing that counseling and
mentoring does reduce the time taken to find a job because people participating in the program
prepare more applications than those not participating, although no differences are found in
matching probabilities (Gorter and Kalb 1995).
43. With respect to labor intermediation, impact evaluations have found that employment
services are the most cost effective of all active labor market programs. In its review of
evaluations worldwide, the World Bank concluded that “employment services are generally the
most cost-effective intervention: employment and earnings impacts are usually positive and,
compared to other ALMPs, these employment services are inexpensive.” (Betcherman et al.,
2004). Similar findings are made in other evaluations as well. By Kluve (2006) and Card et al
(2009), employment services are found to be particularly cost-effective relative to other active
labor market policies, in particular, with lower costs per worker employed. In developed
countries, most studies find that employment services were successful in helping the unemployed
workers find better-paid jobs. This is true for most experimental studies in Canada, Sweden, the
United Kingdom, and the United States. According to Betcherman et al (2004), the two studies
that evaluate employment services in developing countries (Brazil and Uruguay) show that in
countries with large informal sectors, public employment services may have limited reach as
workers may prefer other channels of job search. In addition, when positive results are found,
they are linked to better-educated workers (See Rodriguez-Planas 2007 for an overview). 44. With respect to wage subsidies, they are in principle designed to subsidize an employer’s
cost of hiring- by contributing part of the worker’s salary or offsetting social security
contributions for a specified amount of time. Subsidies are a relatively straightforward way to get
long-term unemployed or disadvantaged workers into the labor market, and governments
sometimes use this instrument even if the job lasts only for a limited period of time. This project
follows international best practice evidence suggesting these are most effective when they
combine the subsidy with other components such as training or job search assistance
(Betcherman et al 2004). The cost and benefits assumptions for these types of targeted wage
subsidies are as follows. First, the wage subsidies enhance effective labor supply effect by
helping individuals to keep in contact with the world of work, therefore maintaining their
motivation and skills. Secondly, subsidy programs are seen as compensating employers for their
screening, orientation, and initial training costs with the expectation that the employee’s
productivity will have increased enough by the time the subsidy period is over for the firm to
continue the employment relationship. There is also a particularly strong social element to these
programs even if there is no net employment gain (Martin and Grubb 2001). Finally, the total
cost of this voucher program per beneficiary are in line with those in other developed and
16
developing countries. All in all, despite the risk of substitution and deadweight effects, the
benefits of the subsidies are expected to outweigh the costs by increasing employability of the
beneficiaries.
B. Technical
45. The project is technically sound. The school-to-work transition draws on good practice
examples from Canada and the United Kingdom and the activities are adequately customized to
the local conditions. The ELE, with the MIS and ICT solutions chosen, represents a good balance
between functionality and cost. The chosen model for the job voucher component is based on the
lessons learned from the Jordan New work Opportunities for Women (Jordan NOW) Pilot and
other international experiences, which included a rigorous impact evaluation study, and takes
also into account the experience and the technical capacity of both government and non-
government service providers included in the project.
C. Financial Management
46. The World Bank undertook an assessment of the Financial Management (FM) systems
within the MOL during the preparation of the recently closed Social Protection Enhancement
Project (P100546). For the purpose of this project, this FM assessment was updated. Owning to
the fact that MOPIC will manage the FM and disbursement functions of the Project, the recently
conducted assessment of MOPIC FM systems were updated as well. The updated assessments
concluded that with the implementation of agreed-upon actions, the proposed FM arrangements
will satisfy the minimum requirements under OP/BP10.00. Annex 3 provides additional
information on the FM assessment and the recommended mitigation measures. The detailed
financial management capacity assessment and arrangements are available in the project file.
47. The MOL will be responsible for the day-to- day project implementation through
establishing a Project Management Unit (PMU) while the MOPIC will manage the Project’s
main FM and disbursement functions. Having the MOPIC managing the FM and disbursement
functions enhances the project’s FM capacity. The MOPIC has built solid experience with the
World Bank FM and disbursement guidelines during the implementation of past and current
World Bank-financed projects. A Financial Officer will be seconded to or hired by the PMU.
The MOPIC will also identify a Financial Officer from its own Finance Department to be the
main FM person for the project at the MOPIC and as a civil servant its salary is financed by the
MOPIC. The two Financial Officers will maintain close coordination and collaboration.
48. To ensure that funds are readily available for project implementation, a Designated
Account (DA) will be opened at the Central Bank of Jordan (CBJ) and will be managed by the
MOPIC. The Project will be required to generate quarterly Interim un-audited financial reports
(IFRs). These IFRs will be submitted by MOPIC to the World Bank within 45 days after the end
of the concerned period. An external auditor financed by the project and acceptable to the World
Bank, will be appointed, based on terms of reference (TORs) acceptable to the World Bank, to
audit the project’s annual financial statements. The IFRs and annual financial statements will be
used as a financial reporting mechanism and not for disbursement purposes.
17
49. Financial Aspects Related to Job Vouchers - Component 3 (Job Readiness and Placement).
This component aims to assist 1,200 unemployed graduates in finding jobs with a package of
employability training, partial salary voucher, and social security registration for one year to
encourage private employers and job seekers to engage in on-the-job training to facilitate job
placement. The project will finance the salary vouchers and training compensation while the E-
TVET Fund will finance the training providers and social security contributions. The
implementation of the program will be coordinated by a consulting firm that will be hired on a
competitive basis, and will manage the related payment scheme. For all project components,
including this specific component, a Project Operations Manual (POM), acceptable to the Bank,
will be developed, describing the roles and responsibilities of E-TVET Fund, MOL, SSC,
MOPIC, KADF, and the consulting firms, including the FM and disbursement aspects of this
operation. The POM is expected to be ready no later than three months after effectiveness. More
details on funds flow to beneficiaries are explained in Annex III.
D. Procurement
50. The World Bank undertook an assessment of the procurement system and capacity in place
at the MOL. The MOL will coordinate with KAFD to design and implement Component 1
(school to work program) and Component 2 (Market information and job search program).
MOL will coordinate closely with E-TVET fund for the implementation of Component 3 (Job
Readiness and Placement Program) which foresees the recruitment of a consulting firm or an
NGO to manage the training and the distribution of the vouchers to the employed youth that were
retained by the program. MOL shall ensure the establishment of a Project Management Unit
(PMU) which will oversee the overall implementation of the project as well as forming a Special
Tender Committee (STC) to expedite the procurement processing.
51. The procurement capacity assessment identified the overall procurement implementation
risk and proposed the following mitigation measures: (i) ensuring proper coordination between
the different stakeholders involved in the project, especially with respect to procurement
planning; (ii) usage of procurement plan as a monitoring tool for processing timely activities and
not only as a reporting tool; (iii) preparing a procurement section in the Project Operation
Manual (POM) to integrate procurement processing but also forms and standardized documents;
(iv) systematizing record keeping, and initiating electronic archiving of procurement processing;
(v) enhancing capacity for appropriate support (staff, training, tools) to properly prepare the
project procurement by linking project objectives and procurement plan; (vi) agreeing on a
training program (internal/ external) to be implemented over the life of the project that is both
relevant and practical; (vii) NCB provisions in the grant agreement shall be observed; (viii)
enhancing capacity in terms of technical specifications drafting, (ix) establishing/improving and
implementing complaint management system; (x) reviewing causes for recurrent amendments
and cost overruns, if any; (xi) developing suitable corrections to planning, cost estimates, lack of
proper designs, technical specifications, etc.; and (xii) including appropriate coverage of
procurement aspects to meet project requirements in the audit TOR, that will require conducting
performance audits.
52. Project guidelines: “Guidelines On Preventing and Combating Fraud and Corruption in
Projects Financed by IBRD Loans and IDA Credits and Grants” dated October 15, 2006 and
updated January 2011, World Bank “Guidelines: Procurement of Goods, Works and Non-
18
consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”
dated January 2011 and World Bank “Guidelines: Selection and Employment of Consultants
under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011,
shall apply to the project.
53. Particular procurement: Use of Nongovernmental Organizations a (NGO), specialized
firm or public institution under Component 3. The project may be appointing a lead NGO, a
competent private firm, or a public institution for managing the distribution of vouchers and
monitoring implementation of the component. In view of the nature of the activity, the consultant
should have extensive capacity and past experience in administering programs similar to the
requested. The selection will be on a competitive basis, although following market research, the
MOL may request single sourcing based on sufficient justification. In this case, the Bank will
have to clear the submitted justification for using single source method as per the guidelines
requirements (Selection of Consultants Guidelines Clause 3.9). MOL will have to be vigilant in
drafting Terms of Reference (ToRs) and will insure including in the contract all requirements
that the selected consultant will be observing with respect to transparency. A particular focus
shall be given with respect to record keeping.
54. Procurement plans: The procurement plan (dated October 2, 2013) for the life of the
project is developed to cover all project activities. Updates of the plan shall be reviewed by the
Bank at least twice a year or as seen necessary.
55. Project Operations Manual. The procurement section shall specify the procurement
processing and contract management. It shall also tackle the record-keeping requirements and the
complaint mechanism expected arrangements.
56. Procurement oversight:The procurement supervision of the Bank shall be ensured at least
twice a year and a post procurement review once a year. The post review sample shall be
composed of 20percent of contracts eligible for post review.
E. Social (including Safeguards)
57. The project will respond directly to several social concerns of Jordanian citizens through:
(i) helping young Jordanians increasing their employability skills and prospects; and (ii)
providing direct employment support to young job seekers who have been unable to find jobs
during their first year of graduation. The Project will be implemented by the MOL in
coordination with E-TVET Fund, KAFD, and MOPIC. However, the design, nature and scope of
the project do not result in environmental or social safeguards issues and safeguards policies are
not triggered as a result of project interventions.
F. Environment (including Safeguards)
58. No environmental issues are foreseen.
G. Other Safeguards Policies Triggered (if required)
59. No safeguard policies are triggered.
19
Annex 1: Results Framework and Monitoring
JORDAN: Support to Building Active Labor Market Program
Project Development Objective (PDO): . The project development objective is to increase access to career guidance, job search, and on the job training
among targeted youth.
PDO Level Results Indicators*
Co
re
Unit of
Measure Baseline
Cumulative Target
Values** Frequency
Data Source/
Methodology Responsibility
Description (indicator
definition etc.)
YR 1 YR 2
Indicator One: Total Direct project
beneficiaries:
(a) Total; and
(b) Of which are female
Number
Percentage
0
5,200
50
13,700
50
Yearly Administrative
data
Online database
PMU in MOL
with collaboration
of KAFD/E-TVET
Fund and SSC
Sum of beneficiaries of school
to work program, updated and
expanded ELE and job
readiness and placement program
Indicator Two: Beneficiaries of
career guidance and counseling (a) Total
(b) Of which are female
Number
Percentage
0
3000
50
10, 000
50
Yearly Administrative
Data
PMU/MOL/KAF
D
Beneficiaries = students in the
final years of community college & university and
unemployed youth in
employment offices of MOL
Indicator Three: Beneficiaries of
updated and expanded Electronic Labor Exchange
(a) Total (b) Of which are female
Number
Percentage
0
1,000
50
2,500
50
Yearly Online database PMU/MOL/KAF
D
Beneficiaries = those who
accessed the updated and expanded ELE
Indicator Four: Beneficiaries of Job Readiness and Placement Program
(a) Total
(b) Of which are female
Number
Percentage
0
1,200
50
1,200
50
Yearly
Administrative
data
PMU with collaboration of
MOL/KAFD/E-
TVET Fund and
SSC
Beneficiaries = at least one year unemployed graduate
youth (19-25 years) from
community college and
university
Indicator Five: Beneficiaries of
Labor Market Programs 7
Administrative
PMU
Same as the total beneficiaries
7 Total beneficiaries of Labor Market Programs are limited to the project and equal to total direct project beneficiaries.
20
(a) Total
(b) Of which female
Number
Percentage
0
0
5,200
50
13,700
50
Yearly data of the project.
INTERMEDIATE RESULTS
Intermediate Result (Component One): School to Work Program (STW)
Intermediate Result indicator One:
Refurbished career counseling centers
in universities and employment offices
Number 0 5 10 Yearly Administrative data
PMU/MOL/KAFD/Universities
Career counseling centers in selected universities, and
employment offices
Intermediate Result indicator Two:
Trained counselors in universities and
employment offices
Number 0 10 20 Yearly MOL /Universities
database
PMU/MOL/KAFD/Universities
Counselors in universities and employment offices
Intermediate Result indicator Three:
System for collecting feedback from beneficiaries in place
Yes/No No No Yes End of project Beneficiary
survey of career counseling
PMU/MOL Based on the beneficiary
review.
Intermediate Result (Component Two): Market Information and Job Search Program (Electronic Labor Exchanges)
Intermediate Result indicator One:
Staff trained on updated and
expanded ELE
Number 0 50 100 Yearly Administrative
data
PMU Staff in universities and
employment offices.
Intermediate Result indicator Two: Awareness campaigns on updated and
expanded ELE
Number 0 5 10 Yearly Administrative data
PMU Awareness campaigns to promote use of updated and
expanded ELE
Intermediate Result (Component Three): Job Readiness and Placement Programs
Intermediate Result indicator One:
Beneficiaries to complete skills training
Number 0 1200 1200 Yearly Administrative
data
PMU ETVET Beneficiaries: unemployed
university or community college graduates who have
been unemployed for a year or
more
Intermediate Result Indicator Two: Beneficiaries satisfied with on the job
training program
Percentage 0 20 50 Baseline and Final
Impact evaluation PMU/E-TVET Fund
Based on impact evaluation of the voucher program (baseline
and final)
21
Annex 2: Detailed Project Description
JORDAN: Support to Building Active Labor Market Program
Project Background
1. The recently launched National Employment Strategy (NES) lays the foundation to
rectifying unemployment anomalies and enhancing employability guided by the priorities
of the “National Agenda”8. The NES includes (1) an overview and diagnosis of the labor
market, (2) actions from the supply and demand side aiming to improve the employability of
Jordan’s labor and the creation of job opportunities and, (3) a sequencing of actions over the
short, medium, and long terms balancing both demand and supply of labor.
2. However, the economic and political environment within which NES has to be
implemented is increasingly challenging. The current reality suggests that the high rate of
unemployment in Jordan is structural which could be attributed to the reasons below:
Compared to the region and the world, Jordan’s economically active population is
extremely low (only around 35 percent of those of working age are working). The
economically inactive are overwhelmingly female, and overwhelmingly less educated.
Among the economically active, males are entering the labor market at normal rates but
exiting early, while females are not entering the labor market at sufficient rates, and those
who do are exiting too quickly. In addition to lingering cultural issues and employer
perceptions that constrain female participation, it is increasingly institutional weaknesses
that hamper greater female participation. Better access to information on job
opportunities, targeted ALMPs, secured maternity benefits, and affordable and
dependable childcare would greatly facilitate female entry into the labor market. There
are differential hiring patterns between the public and private sectors: 45 percent of
public sector employees are female, but only 13 percent of private sector employees are
female. Unemployed males are overwhelmingly unskilled, while unemployed females are
overwhelmingly university graduates.
The Jordanian economy is dominated by micro and small enterprises employing
fewer than ten workers with inadequate access to finance. They represent more than
90 percent of all registered enterprises and employ 47 percent of workers in the private
sector. They also face different constraints than medium and large enterprises, the most
significant being access to finance; Jordanian banks have lent only 10 percent of their
total loans to SMEs, and less than 30 percent of SMEs have access to finance.
Mismatch between labor supply and demand persists. On the supply side, every year,
around 120,000 students take the high school tawjihi exam, and about 60,000 pass it. Of
those who pass, around 45,000 go to Jordanian universities and 6,000 go to community
colleges. Jordanian universities graduate around 40,000 students per year. On the
demand side, out of around 76,000 jobs created in 2009, only about 24,000 were taken by
university graduates, while 6,500 were taken by community college graduates; the rest,
8 The National Agenda was initiated in 2005 as a holistic approach to the reform process and encompassed a wide
variety of political, economic and social policies that were to be linked to the budget and include timelines and
performance indicators.
22
around 46,000, were taken by workers with a high school education or below (and a
substantial proportion of those went to foreign workers). Thus, around 15,000 new
university graduates enter the ranks of the unemployed or economically inactive every
year.
Labor supply in Jordan is also determined by in- and out-migration. This dynamic of
sending the “creative class” of skilled workers, professionals, and managers and
receiving less skilled foreign workers has made it much more difficult for Jordan to build
its human resource base towards a knowledge-based economy.
Wage realities further undermine the unemployment challenges. The average wage
in Jordan was JD 365 per month in 2009, reflecting growth of 3 percent in real terms
between 2006 and 2009. But the wage structure shows a very wide base of low wages
below JD 200, which makes it difficult for households with one income earner to live
beyond subsistence.
3. Moving forward, it is essential that Jordan launches a coordinated program to
generate 20-30 thousand additional jobs per year. Numbers vary on how many jobs the
Jordanian economy is producing every year but based on various sources, the National
Employment Strategy (NES) estimates that around 65,000- 70,000 jobs are created per year,
around 40,000- 45,000 of which go to Jordanians (the rest to foreign workers). In contrast,
Jordan needs to create around 70,000 jobs for Jordanians per year to keep the current
unemployment rate (and also inactive population rate) constant. It would need to create even
more jobs to start reducing unemployment and increasing employment rates. Thus, over the next
two to three years, it is essential that Jordan launches a coordinated program which generates 20-
30 thousand additional jobs per year. This could be achieved by coordinating various policies
and initiatives together to generate the desired job impact in the short run, and hopefully translate
into robust economic growth with employment over the medium term.
Project Description
4. The proposed project responds to the Government’s request for supporting
implementation of few key ideas in the Jordan Jobs Compact initiative (JJC) which is a
multi-pillar active labor market program (ALMP) of the National Employment Strategy
Action Plan. The JJC comprises of both long term and short term proposals for improving
employability and employment outcomes. The project will support three out of the five pillars of
the JJC. The project components are: 1) school to work program, 2) market information and job
search program, 3) job readiness and placement program, and 4) monitoring and evaluation and
project management.
5. The overall objective is to pilot selected labor market interventions, to learn about
their effectiveness towards building a coherent active labor market system and to improve
job readiness and job placement opportunities for unemployed men and women graduates. The project development objective is to increase access to career guidance, job search, and on
the job training among targeted youth.
6. The MOL will be responsible for the overall coordination and management of the
project under the strategic and policy guidance of the E-TVET Council and in close
23
coordination with KAFD. The Project Operations Manual (POM) will provide details on
implementation of all project components. The POM is expected to be ready no later than three
months after effectiveness.
Component 1: School to Work Program (STW): This component will provide
“school to work” transition support for two groups between ages 19-25: (i) students
during their final year at university through counseling centers; and (ii) unemployed
youth through the Ministry of Labor (MOL) employment offices. MOL has developed
three sets of manuals for career counseling and vocational planning for: community
college graduates, university graduates, and unemployed youth. Moreover, KAFD in
currently reviewing the counseling services of the 25 universities to assess their strengths
and weaknesses and plans to improve career counseling manuals for university students.
The project will support the implementation of these manuals for these two target groups
in four universities and six employment offices in selected governorates9 by: i) hiring of
the technical experts who will assist in overall design, planning and quality assurance,
provide training to counselors, and oversee the delivery and coverage of career services
in selected universities and the employment offices; and ii) providing needed
refurbishment of university and employment offices including equipment and software. It
is estimated that during the project period approximately 10,000 youth (19-25 years of
age) could benefit from the counseling in the selected universities and employment
offices in the governorates. The POM will provide details on the implementation of this
component, including the selection criteria of universities and employment offices.
Component 2: Market Information and Job Search Program (MIJS): This
component will facilitate job matching through improving information available to both
employers and prospective job seekers. Currently, several initiatives are being developed
by several players and financed by various sources (MOL, ILO, IYF, Microsoft, EU,
UNDP, NCHRD, E-TVET Fund). To ensure synergy and complementarity, KAFD is
currently in charge of the coordination of the various initiatives. The project will support
MOL in updating and expanding the Electronic Labor Exchange (ELE) by providing TA
for: i) capacity building of MOL staff for improving data collection and analysis for
effective intermediation services; ii) building capacity for employment offices staff on
facilitating job matching (including the use of the updated and expanded ELE); iii)
developing interactive online career guidance, mentoring, vocational planning system; iv)
a communication campaign to increase the awareness about the ELE for both jobseekers
and employers; and v) providing related IT hardware and software for the employment
offices. The POM will provide details on the implementation of this component.
Component 3: Job Readiness and Placement Program (JRPP): This component will
support graduates from universities and from community colleges in selected
governorates (between ages 19-25) who have been unemployed for at least one year (see
the eligibility criteria presented in the box below)10
. It will provide the unemployed
9 It is planned that the Component A will be implemented in three Governorates. Thus the number of universities
and EOs where the Manuals will be implemented may vary accordingly. 10
Based on actual age of graduates from Community Colleges and Universities, and the requirement of at least one
year unemployment, the age bracket of beneficiaries may need upward adjustment.
24
graduates a package of 75 hours employability training and partial salary voucher for 1
year. The E-TVET Fund will finance the training providers and social security
registration for one year. This scheme will encourage private employers and job seekers
to engage in on-the-job training to facilitate job placement. This pilot will target 1200
unemployed graduate youth in the selected governorates based on the selection criteria as
below. The POM will provide details on the design and implementation of this
component. More specifically the POM will include an operational module outlining
implementation, organizational, administrative, monitoring, financial management,
procurement arrangements, disbursement, detailed eligibility criteria, audit, verification
procedures and grievance mechanisms for the Job Vouchers component.
7. Program Enrolment: The eligible candidates will enroll into the program by completing a
simple form covering the eligibility information and their ID number, contact information and
Bank account details under a special program window (one year training contract) which
exempts the employer from the labor laws relating to staff dismissal for one year.
8. Training: The beneficiaries of JRPP will receive training in basic employability skills.
Training providers will apply to provide training that would be financed by the ETVET Fund,
which will request ETVET Council authorization for an amount equivalent to JD 350,000. This
will be confirmed by a written financial contribution commitment from E-TVET Fund to
MOPIC. All the participates will have to take employability training of up to 75 hours and upon
training completion, trainees will receive a certificate and a lump sum stipend of JD150 financed
by the project. The employability skills training will be provided by a competent provider that
will be selected on a competitive basis, coordinated by E-TVET Fund.
9. Job Voucher: The voucher system will be introduced to be paid against the results agreed
between the employer and the employee (voucher holder). Vouchers will remain the property of
the employee and can be taken from one job to another until all months of eligibility have been
used. It is proposed that the value of voucher not exceed JD 100 per month for one year. In
addition, the voucher program will cover the social security contributions of employers and
employees up to a year. The cost of this contribution (amounting to about JD500,000) will be
financed by E-TVET Fund own resources. This will be confirmed by a written financial
contribution commitment from E-TVET Fund to MOPIC. The job voucher can only be redeemed
for a job which will meet the following conditions of employment: (i) full-time, defined as 30 or
more hours a week; and (ii) has a written job contract spelling out the responsibilities of the
Selection Criteria for Youth and Employers Eligibility for Candidates: Male and female youth, aged 19-25 with community college or university
degrees, and have been unemployed for one year or more would benefit from both the employability training (life skills) and the on-the-job voucher programs. Based on the structure of the labor market in Jordan, educated youth who are lacking on the job experience have higher probability of unemployment.
Eligibility Criteria for Employers: All private and not for profit enterprises are eligible to benefit from the program regardless of enterprise size as long as they are registered or willing to register with the Social Security Corporation.
25
worker and stating a wage at least as high as the minimum wage. Employees will be considered a
special category for this program (training contract) during the duration of the voucher and firms
should not be subject to restrictions or penalties for firing these workers during the duration of
the voucher. If employees are retained once the voucher is finished, firms will have the three
month probationary period before labor laws on firing bind.
Component 4: Project Monitoring and Evaluation and Management: This
component will include the following:
Monitoring and evaluation: The PMU will collect data on day to day project
activities through agencies which are responsible for implementation and
coordination of different components (MOL, KAFD, E-TVET Fund). In addition,
the PMU will be responsible for i) launching a beneficiary assessment for
students who received career guidance and ii) preparing an impact evaluation of
the voucher program (baseline and final).
Project Management: This sub-component will support the management of the
project. It will ensure that the PMU is operational and that it successfully and
efficiently implements the project in conformity with the Financing Agreement,
project document and the Project Operation Manual (POM). This component will
finance: (i) Technical Assistance to the PMU staff or needed PMU staff salaries
selected competitively (non-civil servant); (ii) equipment and operating costs
directly linked to the daily management of the project (office space, utilities and
supplies, bank charges, communications, vehicle operation, maintenance and
insurance, building and equipment maintenance costs, travel and supervision
costs, etc.); and (iii) regular internal and external audits (focusing on financial
and procurement aspects). Within the framework of the monitoring cycle, a mid-
term review will involve project’s stakeholders and civil society in the review of
project performance, intermediary results, and outcomes. The progress and
impact of the project will be measured using the data collected at the mid-term
review and project end.
Employers’ Contribution, Incentives and Penalties
To allow firms to be motivated to participate in the program and workers to find an appropriate match, the
following measures will be applied:
For employers to benefit from the voucher, they will have to keep the salary at least as high as the minimum wage.
Employers /Enterprises should not be subject to restrictions or penalties for firing these workers during the period of
voucher use. If workers are retained once the voucher is finished, firms should still have the three month
probationary period before labor laws on firing bind.
Enterprises or employees engaged in falsifying employment information would be denied access to the program in
the future and pursued legally.
26
Annex 3: Implementation Arrangements
JORDAN: Support to Building Active Labor Market Program
Project Institutional and Implementation Arrangements
1. The MOL will be responsible for the overall project coordination and management
with policy and strategic guidance from the E-TVET Council, and in close coordination
with E-TVET Fund, KAFD and MOPIC. No later than three months after effectiveness, it
will establish a Project Management Unit (PMU) which will be staffed with one Director , one
technical officer for voucher program, one IT specialist, one procurement specialist, one
financial management specialist and one M&E specialist that will be financed by the project.
2. The PMU staff is expected to be appointed/seconded by the Recipient (salaries financed
by the Government budget). In case the recipient is unable to identify qualified staff, PMU staff
will be selected through a competitive process in accordance with the World Bank
consultant/procurement guidelines (salaries financed by the project). Regardless of the selection
process used, the selection and appointment of PMU staff should be acceptable to the World
Bank, and based on terms of reference (TORs) acceptable to the World Bank. MOPIC will
second from their own staff a Financial Management specialist that will collaborate closely and
work with the PMU. If needed, the project will finance consultants or a consulting firm who will
work closely with the PMU core team, as well as the E-TVET Fund staff for managing and
monitoring the vouchers program. It is expected that the PMU with adequate staff will be in
place no later than three months after effectiveness. The PMU will be located in E-TVET Fund
which will provide the office space. Fiduciary management responsibilities for all components
will be under MOPIC. The POM will describe details on responsibilities for the implementation
of the project components. The PMU will be located in E-TVET Fund which will provide the
office space. Fiduciary management responsibilities for all components will be under MOPIC.
The Financial Management specialist of the PMU will work closely with the Financial
Management specialist of MOPIC. The POM will describe details on responsibilities for the
implementation of the project components.
3. Component 1 (School to Work Program) will be implemented by the MOL in close
coordination with KAFD as follows: The PMU will hire the technical experts to train the
counselors and relevant personnel in the university centers and employment offices on utilization
of the new career guidance manuals and oversee / guide the counselors during the counseling
sessions with the students. In addition, the project will finance refurbishment of selected
universities and employment offices. The POM will describe implementation details of this
component.
4. Component 2 (Market Information and Job Search Program) will be implemented
by the MOL in close coordination with KAFD as follows: Under this component, the job
matching will be done through the updated and expanded electronic labor exchanges (ELEs) that
will be supported by the project. The project will finance (i) capacity building for career
counseling of universities and employment offices staff on facilitating job matchmaking (use of
updated and expanded ELE, etc); (ii) awareness campaign for jobseekers and employers; and,
(iii) equipment and software for employment offices. The POM will describe implementation
details of this component.
27
5. Component 3 (Job Readiness and Placement Program) will be implemented by the
E-TVET Fund in close coordination with MOL and SSC as follows:
a) With regard to training (job readiness), training providers will be selected competitively,
following the E-TVET Council’s approval based on cost, track record, and geographic
distribution, and E-TVET Fund would finance the training providers per trainee.
b) With regard to job voucher payment (job placement), the E-TVET Fund will be
responsible for technical implementation and monitoring of the job voucher component
as follows:
Job Voucher Enrollment: Eligible unemployed youth would apply through MOL EOs or
SSC branches or a consulting firm by filling out a form. This form will be mailed to the
SSC or filled out online on a specially designed portal. In case the SSC will maintain the
database of unemployed youth, it will verify eligibility, and confirm enrolment into the
program to the participant through a voucher registration number, which identifies them
as program participants. The eligible firms (employers) will register with the SSC also to
be enrolled into the program. The role of SSC would be to confirm/verify the eligibility
of the worker and the employer. The POM will provide clarification on job voucher
enrollment.
Job Voucher Implementation: The implementation of the program will be the
responsibility of the E-TVET Fund with if needed support of a consulting firm who will
be hired, on competitive basis, and make the payment scheme as follows:
i. Step 1: Employer will directly pay the worker the wage (minimum wage offer of
JD190 per month is required) and, if applicable, remit the employer’s share of
social security contributions to the SSC. Contribution to the social security system
will serve as proof the worker is still employed in the firm, will be subject to
inspections by SSC inspectors, and will be used to automate the payment. The
cost of this contribution (amounting to about JD500,000) will be financed by the
E-TVET Fund own resources.
ii. Step 2: Upon verification of current conditions of employment, employment
status, employers’ payment of wage to the worker, the employers’ accounts will
be credited the subsidy (JD 100 per month).
Management, supervision and disbursement of funds under the job voucher component
E-TVET Fund, with the support of a consulting firm, will be responsible for job voucher
payments as follows:
6. Setting up the MIS: The PMU will hire a consulting firm, which will design the MIS
according to the criteria needed to manage the program for the E-TVET Fund. The MIS shall
include records of the job vouchers and job locations; follow up steps, inspection visits and
financial status of the salary subsidy per each graduate. The MIS used shall be simple and
practical and will be linked to SSC. The MIS could be also used by other complementary
voucher programs that E-TVET Fund will finance.
28
7. Verification and Eligibility: The first step in the process will be to verify eligibility
criteria and employment contracts as follows:
(i) Once the MIS is designed and functioning, and accounting and management support
teams are in place, the E-TVET Fund will begin the process of verification of eligibility.
(ii) The following verification and payment rules must be followed for each approved
disbursement:
1) Upon the start of the employment, both the firm and the graduate will be required
to confirm their employment with the consultant by the 25th of each month. A
grace period of seven working days from the 25th will be allowed. Failure to
confirm employment status on either side beyond that will result in payments
being reimbursed at the next monthly cycle, along with any reimbursements that
may be due for the next month. Failure to confirm employment status for two
continuous monthly cycles may risk a termination of benefits from the program.
Each of these payments is a reimbursement; the employer must pay the salary
first, and upon verification, the program will reimburse the employer through a
bank transfer.
2) The employment should be at least one month long to receive the first payment.
The firms and students will also be monitored by the consultant each month to
verify continued employment in the firm. In addition, random visits will be paid
to firms reporting having hired a graduate by the administrator of the voucher
program to ensure that the reimbursement claims are legitimate. If these
conditions are not satisfied, the E-TVET Fund, through MOPIC, will stop the job-
voucher payments and bar the student and the firm from further participation.
3) The E-TVET Fund must verify bank account details provided by the employer.
8. Implementation and Disbursement:
(i) Project will be responsible for reimbursing firms 100 JD a wage subsidies and E-TVET
Fund will reimburse the firm the employer and employee social security contributions per
month for a maximum of 12 months upon successful verification of employment and
bank details.
(ii) Once each month, on the 3rd of the month or earlier, the consultant must provide E-
TVET Fund and PMU with the list of all employers and graduates who have entered into
an employment contract and have satisfied all eligibility criteria. This list must be linked
to bank details and transfer amounts for payments due for the preceding month. Upon
submission of this list and approval of the PMU and E-TVET Fund, MOPIC will pay the
approved firms.
(iii)All transfers from the voucher account to the employer must be tracked in the MIS, and a
bimonthly report on all transfers in the form of formal bank statements must be submitted
by E-TVET to the PMU.
29
9. Monitoring: The E-TVET Fund shall use the developed MIS and the available resources
to monitor the activity of the beneficiaries and their progress in finding jobs and retaining these
jobs. They shall provide a contact officer to receive calls from graduates, in addition to
supporting staff to manage the monitoring process. Specifically, monitoring will include:
i. Follow up and trace the employed graduates by means of contact and field visits to
the workplace.
ii. Keep updated electronic track of the status of employed graduates.
iii. Keep copies of official documents and correspondence such as enterprises official
documents, letters of appointment and employment contracts.
iv. Report to the PMU about the progress of the program.
v. Approve the employers entitled to collect voucher payments based on the acceptance
conditions.
vi. Keep updated accounts of the vouchers eligible payments and the remaining
payments.
vii. Daily maintenance of the system.
Financial Management, Disbursements and Procurement
Financial Management
10. The Ministry of Labor (MOL) will be responsible for the overall implementation of the
Project, while MOPIC will manage the Project’s main FM and disbursement functions. A PMU
will be established under the MOL to be responsible for the overall coordination and monitoring
of the project. MOPIC will handle the FM and disbursement functions of the Project. MOPIC
has solid experience with World Bank financial management and disbursement gained during the
implementation of past and current World Bank-financed projects, and its overall performance is
considered satisfactory. A Financial Officer will be selected from the Finance Unit at MOPIC to
be the main FM person for the project in MOPIC and as a civil servant its salary is financed by
MOPIC. The Financial Officer will maintain close coordination and collaboration with the PMU.
11. Project FM Risk. The overall FM risk is “Substantial”. With mitigation measures in
place, the project will have acceptable project FM arrangements; its FM risk rating will be
“Moderate”. The FM risk is assessed as “Substantial” mainly due to:
i) Risk of funds being distributed to the ineligible citizens under the Job Vouchers program;
ii) Limited coordination between MOPIC and the PMU that may cause delays in financial
reporting and payments to beneficiaries;
iii) Multiple executing entities (MOL, E-TVET, SSC, KAFD, and MOPIC) and the potential
consultancy firms) involved in the “Job Voucher component” that might cause delays in
payments to beneficiaries;
iv) MOPIC managing the DA would enhance controls over payments but it might cause
delays in processing payments to beneficiaries; and
12. The following measures are to be taken to mitigate FM-related risks:
30
i) MOPIC will manage the main FM and disbursement functions on behalf of the PMU;
ii) SSC will confirm and verify the eligibility enrollment of the worker and the employer;
iii) A consulting firm will be hired, on competitive basis, to help E-TVET Fund manage the
payment scheme of this operation, including confirm meeting eligibility criteria before
processing payments; the firm will work closely with E-TVET Fund and coordinate with
SSC to obtain the necessary data and the MOPIC for replenishments;
iv) A Project Operations Manual (POM), acceptable to the Bank, will be developed by the
PMU in the E-TVET Fund for all components, describing the roles and responsibilities of
E-TVET Fund, MOL, SSC, MOPIC, KAFD, and the consultancy firm, including the
financial management and disbursement aspects;
v) An independent external auditor, acceptable to the World Bank, will be hired to audit the
project’s annual financial statements in accordance with terms of reference (TORs)
acceptable to the World Bank. The auditor will cover as well the “Job voucher
component” and will provide an opinion of the eligibility of funds distributed to
beneficiaries as per the agreed eligibility criteria and will assess the effectiveness of
internal controls within the project.
13. JobVouchers - Component 3 (Job Readiness and Placement Program). This
component targets unemployed graduates in finding jobs with a package of 75 hours of
employability training, partial salary voucher, and social security registration for one year to
encourage private employers and job seekers to engage in on-the-job training to facilitate job
placement. The project as explained earlier will finance the training compensation and salary
vouchers, and the E-TVET Fund will finance the training providers and social security
contribution. The main stakeholders for the implementation of this component are E-TVET
Fund, SSC, MOPIC, and a consultancy firm. The role of SSC would be to confirm and verify the
eligibility enrollment of the worker and the employer. SSC will maintain the database of
unemployed youth, verify eligibility, and confirm enrolment into the program to the participant
through a voucher registration number, which identifies them as program participants. The
eligible firms (employers) should register with SSC as well as be enrolled into the program. The
details of the enrollment process for this program are included under “Annex III, Section
“Project Implementation and Implementation Arrangements – Component 3”. E-TVET Fund
will be responsible for managing this component while MOPIC will process the payments to
beneficiaries, details are under “Annex III, Section “Project Implementation and Implementation
Arrangements – Management, Supervision, and Disbursement of Funds under the Job Voucher
Component”. A consulting firm, if needed, will be hired on competitive basis, to support E-
TVET in managing this program. A Project Operations Manual (POM), acceptable to the Bank,
will be developed specifically for all components of the operation no later than three months
after effectiveness describing the roles and responsibilities of E-TVET Fund, SSC, MOL, and
MOPIC, and the consultancy firm, including the financial management and disbursement
aspects.
14. Budgeting and Funds Flow. A project budget and periodical disbursement plan, based
on the procurement plan and implementation schedule, will be developed by MOPIC. To ensure
that funds are readily available for project implementation, a US Dollar DA will be opened at the
CBJ to be managed by MOPIC. Deposits into and payments from the DA will be made in
31
accordance with the disbursement letter. The MOPIC will prepare withdrawal applications with
the related supporting documents, signed by the designated signatories.
15. Accounting and Reporting. The project will follow the cash basis of accounting where
resources and uses of funds are recorded when cash is received or when payments are made.
MOPIC will be responsible for preparing quarterly Interim Unaudited Financial Reports (IFRs)
and annual project financial statements. The reports will consist of “Statement of Cash Receipts
and Payments by category” and accounting policies and explanatory notes, including a footnote
disclosure on schedules: (i) “the list of all signed Contracts per category” showing contract
amounts committed, paid, and unpaid under each contract, (ii) Reconciliation Statement for the
balance of the DA, and (iii) a list of assets (goods and equipment). The IFRs will be submitted by
MOPIC to the World Bank within 45 days after the end of the concerned period.
16. Internal Controls. Project’s expenditure cycle will follow the controls specified in the
National Financial System of the Hashemite Kingdom of Jordan, which includes: (i) technical
approval of the department involved; (ii) finance staff checking and approval; (iii) resident
Internal Auditors; and (iv) Ministry of Finance’s Financial Controller who validates the accuracy
of the payment and its compliance with the applicable laws in Jordan and with the World Bank
procurement and FM procedures as well as the Grant terms and conditions. Although the project
will follow the Government-applied controls set in the local laws, there will be supplementary
controls in place for monitoring project activities, including the verification and approval of the
PMU staff (financial and technical). A Project Operations Manual (POM) in form and substance
satisfactory to the World Bank will be prepared no later than three months after effectiveness. .
The POM will include, inter alia: (a) details on: (i) Project description and implementation
arrangements; (ii) technical (ii) administrative, (iii) procurement, (iv) financial and accounting;
(v) monitoring and evaluation procedures and arrangements for the Project; (b) an operational
module further outlining implementation, monitoring, financial management, disbursement,
detailed eligibility criteria, audit, grievance mechanism and verification, procedures for Job
Vouchers. Particularly the POM will document the roles and responsibilities of the MOL/PMU,
SSC, E-TVET, MOPIC, and the consultancy firm if needed, including the related FM and
disbursement aspects, flow of funds, information and documentation.
17. External Audit. An external independent auditor acceptable to the World Bank, financed
by the Grant, will be hired, no later than six months after the effectiveness, to audit project
financial statements in accordance with international standards of auditing. The audit report and
management letter will be submitted by MOL to the World Bank within six months after the end
of the audit period. MOL will be responsible for preparing the Terms of Reference (TORs) for
the auditor and submitting them to the World Bank for clearance. The scope of the auditor will
be extended to cover the “Job Voucher Component” and provide an opinion of the eligibility of
funds distributed to beneficiaries as per the agreed eligibility criteria. The auditor will be
requested as well to assess the effectiveness of internal controls within the project. The final
payment for the auditor after the closing date will be transferred from the Grant account to an
escrow account. According to the World Bank Policy on Access to Information issued on July 1,
2010, the audit report with audited financial statements of the project will be made available to
the public.
32
18. Training and Implementation Support. The World Bank will provide training to PMU
staff on World Bank FM and disbursement guidelines and procedures, and will provide FM
implementation support during project supervision.
Disbursements
19. The proceeds of the Grant will be disbursed in accordance with the World Bank's
disbursements guidelines as outlined in the Disbursement Letter and in accordance with the
World Bank Disbursement Guidelines for Projects. Transaction-based disbursement will be used
under this project. Accordingly, requests for payments from the Grant will be initiated through
the use of Withdrawal Applications (WAs) either for direct payments, reimbursements and
replenishments to the DA. All WAs will include appropriate supporting documentation,
including detailed Statement of Expenditures (SOEs) for reimbursements and replenishments to
the DA. The category of Eligible Expenditures that may be financed out of the proceeds of the
Grant and the percentage of expenditures to be financed for Eligible Expenditures will be spelled
out in the Grant Agreement. Interim Unaudited Financial Reports and Annual Financial
Statements will be used as a financial reporting mechanism and not for disbursement purposes.
The minimum application size for direct payment and reimbursement will be the equivalent of
20% of the Advance ceiling amount. The Bank will honor eligible expenditures completed,
services rendered and delivered by the Project closing date. A four months' grace period will be
granted to allow for the payment of any eligible expenditure incurred before the Grant Closing
Date.
20. Designated Account. The MOPIC will open a segregated Designated Account at the
Central Bank of Jordan (CBJ) in US Dollars to cover Grant' shares of eligible project
expenditures. The Ceiling of the Designated Accounts would be 10% of the Grant's amount.
MOPIC will be responsible for submitting monthly replenishment applications with appropriate
supporting documentation.
33
Cash & Documents flow
Document flow
Cash flow
sends WA to WB
WB replenishes DA
Payment request & Supporting documents
Transfer Request Payment requests
and checks w ith supporting documents
Supplier/Consultant
Accounting Entry - MOPIC
PMU
Supplier/Consultant
WB Grant Account
MOPIC DA PMU/ETVET/KAFD
/ Technical reviews
Quarterly IFRs reports -
spreadsheets
MOPIC Financial
Verification
PMU Records
21. E-Disbursement. The World Bank has introduced e-disbursement for all projects in
Jordan. Under e-Disbursement, all transactions will be conducted and associated supporting
documents and IFRs scanned and transmitted online through the World Bank’s Client connection
system. The use of e-Disbursement functionality will streamline online payment processing to (i)
avoid common mistakes in filling out WAs; (ii) reduce the time and cost of sending WAs to the
Bank; and (iii) expedite the Bank processing of disbursement requests.
22. Statements of Expenditures (SOEs). Necessary supporting documents will be sent to
the Bank in connection with contracts that are above the prior review threshold contracts as per
the procurement plan, except for expenditures under Contracts with an estimated value of: (a)
US$150,000 or less for Goods; (b) US$100,000 or less for Consulting Firms; and (c) US$50,000
or less for Individual Consultants, as well as Training, which will be claimed on the basis of
SOEs. The documentation supporting expenditures will be retained at the PMU and will be
readily accessible for review by the external auditors and World Bank supervision missions. All
disbursements will be subject to the conditions of the Grant Agreement and disbursement
procedures as will be defined in the Disbursement Letter.
34
23. Table 1 below specifies the categories of Eligible Expenditures that may be financed out
of the proceeds of the Grant and the percentage of expenditures to be financed for Eligible
Expenditures:
Table 1: Categories of Eligible Expenditures and the Percentage of Expenditures to be
financed by the Grant
24. “Training" means the expenditures incurred on account of Grant implementation such as
workshops, transportation and per diem of trainers and trainees, rent of training facilities and
provision of refreshments; preparation, acquisition, reproduction and distribution of training
materials; and fees for trainers as other reasonable expenditures as agreed upon with the Bank;
Incremental Operating Costs” means Project related incremental costs incurred by the PMU on
account of communication, translation and interpretation, printing, procurement-related
advertising, office supplies, banking charges, and local transportation, excluding salaries of the
Recipient's civil servants, and other miscellaneous costs directly associated with Project
implementation subject to prior approval by the World Bank.
Procurement
Procurement Capacity Assessment
25. Jordan’s public procurement system is a highly centralized, well defined system governed
by a series of regulations issued by the Council of Ministers and managed by the Government
Tenders Directorate (GTD) of the Ministry of Public Works and Housing (MPWH) for civil
works and consultants’ services and by the General Supplies Department (GSD) of the Ministry
of Finance (MOF) for supplies, equipment and furniture. The system operates in a transparent
environment where both the private sector and public officials are familiar with and comply with
the requirements of the regulations. Award of the majority of public contracts is based on
competition with contract award generally being made on the basis of the lowest priced
acceptable offer, but for consultants a weighting formula is used. The overall risk associated
with corrupt practices affecting public procurement in Jordan is considered low by both private
and public participants. As the demands on the government have continued to increase, the
Category Amount of the Grant
Allocated
(expressed in US$)
Percentage of
Expenditures to be
Financed (inclusive of
taxes)
Goods, consultants’ services (including
audits), non-consulting services, Training
and Workshops, and Operating Costs
1,882,030
100%
Job Vouchers 2,867,970 100% amounts
disbursed, payable under
the respective Job
Vouchers
TOTAL AMOUNT
4,750,000
35
centralized procurement system has become overburdened, lacking specialized expertise for a
growing range of procurement requirements. As a result, a number of exceptions have been
made to create special tender committees (STC) within ministries or autonomous authorities to
handle procurement. These special committees have been given unlimited authority to manage
the procurement process of goods, works and consultants for the programs/projects covered by
the authority. Regulations also establish a series of thresholds which determine what level of
government authority exists for procurement of civil works, goods and services. Within each
threshold level, the process is under the responsibility of committees. Committees do not make
final decisions but submit their recommendations to higher level policy officials for ratification.
STC is not restricted to any threshold and are used to expedite implementation of special
projects.
26. MOL past experience: The MOL has limited experience in large scale projects. It has
been exposed to international project (JAICA-5 years; IBRD: US$7.5M- 5 years) preparation
and implementation, and in projects’ procurement in general. Out of MOL budget, the average
annual procurement volume is of US$1.4M. The implementation of the IBRD project was not
satisfactorily completed due to shortcomings in decision making and lack of ownership.
Procurement processing was found acceptable though done in isolation from the ministry
purchase department. MOL has limited procurement capacity (staff) to support the project
procurement function.
27. Audit: Internal auditing is conducted by “Internal Audit & Control Department” and the
external auditing is conducted by the governmental Audit Bureau. The project shall continue in
observing the same arrangement, provided that auditors are made familiar with the Bank
guidelines.
28. Current Procurement Staff: MOL procurement is processed by the “Purchase
Committee” (operating under 10,000JD- US$14,000 equivalent) and the “Tendering Committee”
(up to 20,000JD- US$ 28,000equivalent). The Supplies and Procurement section is composed of
three main bureaus (Maintenance, Purchase, and Storage) and is housed under the Administrative
and Financial Affairs department. Both the “Purchase Committee” and the “Tender committee”
have four members each with bachelor degrees. Thus a Special Tendering Committees (STC)
established at MOL shall also be needed to expedite procurement processing without observing
the above mentioned threshold ceilings.
29. Procurement Planning: MOL does not rely on procurement planning. The budget
allocated line items and availability of funds drive procurement processing.
30. Overall Project Procurement Risk assessment of the implementing agencies is rated
“Substantial”.
Proposed Procurement Arrangements:
31. Project Implementation Arrangements: The project procurement will be implemented
by MOL that shall observe due diligence in processing transactions and will be responsible for
(i) Processing procurement implementation, (ii) Monitoring and managing contracts, and (iii)
Reporting to the Bank on fiduciary and technical aspects.
36
a. MOL shall ensure the establishment of a PMU for the overall implementation of the
project. It will be staffed with a project Director, procurement officer, financial
management officer, M&E officer, IT specialist, and technical officer for the voucher
program. MOL shall contribute with the rest of the needed support staff. The staff of
PMU will be selected competitively no later than one month after effectiveness.
b. In coordination with MOL and the PMU, the E-TVET Fund is envisaging hiring and
selecting a competent consulting firm or a NGO under Component 3 for providing
support to the E-TVET Fund for managing the issuance and monitoring of vouchers to
employed youth under the program.
c. The establishment of a STC at MOL is needed (with experienced relevant people) for
processing efficiently procurement activities.
32. Project guidelines: “Guidelines On Preventing and Combating Fraud and Corruption in
Projects Financed by IBRD Loans and IDA Credits and Grants” dated October 15, 2006 and
updated January 2011, World Bank “Guidelines: Procurement of Goods, Works and Non-
consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”
dated January 2011 and World Bank “Guidelines: Selection and Employment of Consultants
under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011,
shall apply to the project.
33. Procurement methods for Goods, Works and non-consulting services: MOL is expected
to conduct (i) national competitive bidding (NCB) for which will be used the Jordanian Standard
Bidding Documents integrating the provisions listed in the grant agreement. The previous project
has already revised the SBD and it was accepted by the Bank; (ii) shopping; and, (iii) direct
contract. Also Framework agreements (FA) are explored to rationalize the repetitive procurement
(catering, training premises, and printing material) needed for training and workshops. FA,
which are long-term agreement with suppliers, contractors and providers of non-consulting
services sets out terms and conditions under which specific procurements (call-offs) can be made
throughout the term of the agreement.
34. Procurement methods for Selection of consultants: MOL is expected to conduct (i)
Quality and Cost Based Selections (QCBS); (ii) Least-Cost Selection (LCS); (iii) Selection
Based on the Consultants’ Qualifications (CQS); (iv) Single Source Selection (SSS); and, (v)
Selection of Individual Consultants.
35. Particular procurement: Use of Nongovernmental Organizations (NGO), a
specialized firm or public institution under Component 3. The project may be appointing a lead
NGO, a competent private firm, or a public institution for managing the distribution of vouchers
and monitoring implementation of the component. In view of the nature of the activity, the
consultant should have extensive capacity and past experience in administering programs similar
to the requested. The selection will be on a competitive basis, although following market
research, the MOL may request single sourcing based on sufficient justification. In this case, the
Bank will have to clear the submitted justification for using single source method as per the
guidelines requirements (Selection of Consultants Guidelines Clause 3.9). MOL will have to be
37
vigilant in drafting Terms of Reference (ToRs) and will insure including in the contract all
requirements that the selected consultant will be observing with respect to transparency. A
particular focus shall be given with respect to record keeping.
36. Staff: The procurement function shall be supported by MOL technical staff that will be
enhanced by an outsourced procurement officer.
37. Procurement plans: The procurement plan for the life of the project is developed to
cover all project activities. Updates of the plan shall be reviewed by the Bank at least twice a
year or as seen necessary.
38. The summary of the procurement plan is the following:
Consultancy Main Assignments with Selection Methods and Time Schedule
Procurement of Works and Goods with Procurement Methods and Time Schedule
38
39. Project Operations Manual: The procurement section in the manual shall be specifying
the procurement processing and contract management. It shall also tackle the record-keeping
requirements and the complaint mechanism expected arrangements.
40. External Audit Firm: A firm from the private sector, or the Jordanian Audit Bureau,
shall be appointed for reviewing the project transactions, and procurement processing. The firm
shall also conduct physical inspection on a sampling basis. The audit is expected to have past
experience in conducting performance audits.
41. Procurement oversight: The procurement supervision of the Bank shall be ensured at
least twice a year and a post procurement review once a year. The post review sample shall be
composed of 20% of contracts eligible for post review.
42. Mitigation measures of identified risks: To mitigate the identified capacity
assessment Substantial risks to Moderate the following measures are recommended: (i) ensuring
proper coordination between the different stakeholders involved in the project, especially with
respect to procurement planning; (ii) usage of procurement plan as a monitoring tool for
processing timely activities and not only as reporting tool; (iii) preparing a procurement section
in the Project Operation Manual (POM) to integrate procurement processing but also forms and
standardized documents; (iv) systematizing record keeping, and initiating electronic archiving of
procurement processing; (v) enhancing capacity for appropriate support (staff, training, tools) to
properly prepare the project procurement by linking project objectives and procurement plan;
(vi) agreeing on a training program (internal/ external) to be implemented over the life of the
project that is both relevant and practical; (vii) NCB provisions in the grant agreement shall be
observed; (viii) enhancing capacity in terms of technical specifications drafting, (ix)
establishing/improving and implementing complaint management system; (x) reviewing causes
for recurrent amendments and cost overruns, if any; (xi) developing suitable corrections to
planning, cost estimates, lack of proper designs, technical specifications, etc.; and (xii) including
appropriate coverage of procurement aspects to meet project requirements in the audit TOR, that
will require conducting performance audits.
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Annex 4: Operational Risk Assessment Framework (ORAF)
JORDAN: Support to Building Active Labor Market Program
Stage: Approval
Project Stakeholder Risks Rating Moderate
Description: Regional political instability that might shift the Government’s focus and slow down
JJC implementation. Stakeholder risk that requires the involvement and cooperation of employers and unemployed graduates; lack of employers interest in using the job voucher; multiple actors involved in the job voucher component that may cause delays in identifying eligible firms and payments to beneficiaries; and lack of the private sector involvement in job placement information system.
Risk Management : (i) careful consideration of the political economy associated with the
unemployment programs, in particular youth unemployment; (ii) well designed and timely implemented public information campaign is expected to be instrumental in this regard as well;
and (ii) consensus building events involving various employers, including beneficiaries are
expected to contribute to the ownership of project supported activities.
Resp: Government Stage:
Implementation
Due Date : end
of first year of
implementation
Status: ongoing
Implementing Agency Risks (including fiduciary)
Capacity Rating: Substantial
Description: MOL as well as E-TVET insufficient capacity to implement Bank project may cause delays; (ii) Slippage in implementation, (ii) weak capacity in project procurement activities, (iii)
insufficient quality of delivered services and purchased goods/works.
Risk Management : A team of specialists will be appointed to mitigate this risks and in additions specific measures will be taken as follows: (i) usage of procurement plan as a
monitoring tool for processing timely activities and not only as reporting tool; (ii) enhancing
capacity for appropriate procurement support (staff, training, tools) ; (iii) agreeing on a training program (internal/ external), (iv) reviewing causes for recurrent amendments and cost overruns,
if any; and (v) developing suitable corrections to planning, cost estimates, lack of proper designs,
technical specifications, etc.
Resp: Government Stage:
Implementation
Due Date : within 6
months of
project
effectiveness
Status: ongoing
Governance Rating: Moderate
Description: Inadequate system to handle complaints and grievances from eligible youth who may not be able to participate in the program.
Risk Management: SSC will maintain the database of unemployed youth and employers (firms), verify eligibility and confirm enrolment into the program to effectively manage this risk.
E-TVET will also reconfirm the eligibility of the beneficiaries.
Resp: SSC (in
coordination with E-TVET
fund)
Stage:
Implementation
Due Date : end
of first year of
implementation
Status: ongoing
Project Risks
Design Rating: Substantial
40
Description : While the project design was proposed by the Government based on advice of global
experts and drawing on lessons learnt from other countries who have successfully implemented the project with similar design with similar implementation dynamics, given the pilot nature of the
project, the risk is substantial
Risk Management: Monitoring and evaluation and continuous beneficiary rapid assessments
are embedded into the project activities which will help to refine the approach as the project proceeds and mitigate any risk to the design for successful outcomes.
Resp: Govt/Bank Stage:
Implementation
Due Date : end
of first and
second year of
implementation
Status: ongoing
Social & Environmental Rating: Low
Description : No particular risks related to Social and Environmental aspects are foreseen Risk Management : N/A
Resp: N/A Stage: N/A Due Date :N/A Status: NA
Program & Donor Rating: Low
Description : There are no donors involved in the project, thus the risk is low of any disruption to
the project. Risk Management : N/A
Resp: N/A Stage: N/A Due Date : NA Status: NA
Delivery Monitoring & Sustainability Rating: Substantial
Description : Fiscal sustainability of the JJC in view of the overall fiscal challenges, and monitoring of voucher program
Risk Management: The GOJ has shown a strong commitment to sustaining this program, and is putting in place number of policies to address both supply and demand side and changing fiscal
priorities to help sustain the program until unemployment rates begin to reduce. We expect that
the sustainability risk will be moderate. Particularly since the E-TVET Fund will finance the training providers and social security contribution of the employees and employers for the
vouchers programs and is expected to finance the expansion of the vouchers program to
unemployed with lower level of education. With regard to the M&E, the independent evaluation team will continue to verify whether the program is benefitting the eligible youth through
reconciliation of data provided by the MOL and SSC database; eligibility review of beneficiaries
and eventually a third party such as an NGO or other agencies. In parallel, MOL and E-TVET will get M&E support for impact evaluation to assess the sustainability and effectiveness of
career counseling and wage subsidies.
Resp: GoJ/Bank Stage:
Implementation
Due Date : by
project end Status: ongoing
Overall Risk Rating at Implementation Substantial
Comments: Overall, the risk for this operation is “Substantial” during implementation mainly due
to: (i) Stakeholder risk that requires the involvement and cooperation of employers and
unemployed graduates; (ii) lack of employers interest in using the vouchers; (iii) multiple actors involved in the job voucher component that may cause delays in identifying eligible firms and
payments to beneficiaries; and (iv) lack of the private sector involvement in job placement
information system.
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Annex 5: Implementation Support Plan
JORDAN: Support to Building Active Labor Market Program
Strategy and Approach for Implementation Support
1. The World Bank’s Implementation Support Plan will focus on: (i) developing
continued communication among government entities and between the Government and
the Bank team; (ii) and providing technical, fiduciary and evaluation support to GoJ to
achieve the project’s objectives and mitigate risks.
2. The implementation support plan consists of the following:
a. Policy Guidance: The Bank’s policy guidance and advice are an integral part of the
Bank support to the operation. The Bank will seek advice internally from the networks
and regions and global experts outside of the Bank. In the same time, the team is
expected to maintain close communication, cooperation and coordination with the client
as well as with different actors involved in the project. This role will be further enhanced
at the design and implementation stage to ensure that the project achieves its intended
objectives while achieving positive social and economic outcomes for Jordanian citizens.
b. Technical assistance on the design and planning: In addition to the frequent follow up
and communication with the client, official project supervision missions will be carried
out twice a year with all relevant task team members’ participation. During the periodic
supervision missions, the Bank will: (i) ensure coherence between the implementation
plan and actual project objectives and activities; (ii) assess overall achievement of results
set and adjust project interventions based on success/failures since previous mission; (iii)
actively participate in budgetary and action plan discussions; (iv) ensure compliance with
fiduciary agreements; (v) reassess project risks and mitigation measures; and, (iv)
determine if any adjustments are needed in the project design to ensure that the
development objectives are met. For all components, the Bank team will provide advice
as required on the design of the activities and ensure linkages with other ongoing
activities to keep the project in sync with the overall JJC program and within its
framework.
c. Procurement: The Bank will support project implementation by: (i) reviewing
procurement documents and providing clearances/comments (prior and post review); (ii)
ensuring consistency of procurement activities with agreed procurement plan as
necessary; (iii) maintaining close collaboration between the fiduciary agency and the
Bank’s country-based procurement staff; and (iv) providing ad-hoc training to project
procurement staff as needed.
d. Financial Management: The World Bank team will include fiduciary management staff
to provide routine supervision of FM and procurement activities. This will include review
and clearance of the TORs of local procurement and financial management officers, the
operations manual, interim financial reports, withdrawal requests, and other procurement
actions. The Bank fiduciary staff will also provide guidance to the local procurement and
42
FM officers on procurement issues, preparation of the first IFRs, compliance with the
Bank guidelines and other issues as they arise during the implementation.
e. Monitoring and impact evaluation support: In addition to the M&E integrated into the
project, the Bank will provide day to day supervision and expertise on overall design of
the M&E system, the data collection strategies including the design of the data collection
system for day to day monitoring and baseline and final data for impact evaluation of the
voucher program, TORs for the beneficiary rapid assessments, quality of the project
monitoring reports that will be prepared by the implementing agencies, and most
importantly, provide technical expertise to guide the design of the evaluation of the
voucher program which will guide the nature and scope of baseline and final data to be
collected. In order to rigorously evaluate the impact of the voucher program, the gold
standard of evaluations will be used if possible, i.e. a randomized controlled trial. The
participants (treatment) and the non- participants (control) group will be chosen through a
lottery design, which will ensure fairness and guarantee that each group will have similar
characteristics.
Implementation Support Plan
Time Focus Skills Needed
Year 1
Monitor the design of the campaign for promoting career counseling Labor Market Specialist
Skills Development Specialist
Monitoring the training of the counselors Labor Market Specialist
Skills Development Specialist
Monitoring the recruitment of the PMU staff Procurement Specialist
Operations Officer
Financial management FM specialist
FM, disbursement and report FM specialist
Year 2
Monitoring of the upgrading of the ELEs
Labor Market Specialist
Skills Development Specialist
IT Specialist
Procurement review Procurement specialist
Technical inputs
Labor Market Specialist
Skills Development Specialist
Operations Officer
Monitoring and Evaluation
M&E Expert
Labor Market Specialist
Skills Development Specialist
Project implementation progress TTL, Operations Officer